PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009

*Note: This is a typeset print of the original hand enrollment as signed by the President on

September 30, 1996. The text is printed without corrections. Missing text in the original is

indicated by a footnote.

*Public Law 104–208

104th Congress

An Act

Making omnibus consolidated appropriations for the fiscal year ending September

30, 1997, and for other purposes.

Be it enacted by the Senate and House of Representatives of

the United States of America in Congress assembled,

DIVISION A

That the following sums are appropriated, out of any money in

the Treasury not otherwise appropriated, for the several departments, agencies, corporations and other organizational units of the

Government for the fiscal year 1997, and for other purposes, namely:

TITLE I—OMNIBUS APPROPRIATIONS

Sec. 101. (a) For programs, projects or activities in the Departments of Commerce, Justice, and State, the Judiciary, and Related

Agencies Appropriations Act, 1997, provided as follows, to be effective as if it had been enacted into law as the regular appropriations

Act:

AN ACT

Making appropriations for the Departments of Commerce, Justice, and State, the

Judiciary, and related agencies for the fiscal year ending September 30, 1997, and

for other purposes.

TITLE I—DEPARTMENT OF JUSTICE

GENERAL ADMINISTRATION

SALARIES AND EXPENSES

For expenses necessary for the administration of the Department of Justice, $75,773,000 of which not to exceed $3,317,000

is for the Facilities Program 2000, to remain available until

expended: Provided, That not to exceed 43 permanent positions

and 44 full-time equivalent workyears and $7,477,000 shall be

expended for the Department Leadership Program exclusive of augmentation that occurred in these offices in fiscal year 1996: Provided

further, That not to exceed 41 permanent positions and 48 fulltime equivalent workyears and $4,660,000 shall be expended for

the Offices of Legislative Affairs and Public Affairs:

Department of

Justice

Appropriations

Act, 1997.

Departments of

Commerce,

Justice, and

State, the

Judiciary, and

Related Agencies

Appropriations

Act, 1997.

Omnibus

Consolidated

Appropriations

Act, 1997.

Sept. 30, 1996

[H.R. 3610]
110 STAT. 3009–1 PUBLIC LAW 104–208—SEPT. 30, 1996

Provided further, That the latter two aforementioned offices shall

not be augmented by personnel details, temporary transfers of

personnel on either a reimbursable or non-reimbursable basis or

any other type of formal or informal transfer or reimbursement

of personnel or funds on either a temporary or long-term basis.

For an additional amount, for enhancements for the Office

of Intelligence Policy and Review and security measures, $3,600,000;

of which $2,170,000 is for security enhancements: Provided, That

the entire amount is designated by Congress as an emergency

requirement pursuant to section 251(b)(2)(D)(i) of the Balanced

Budget and Emergency Deficit Control Act of 1985, as amended.

COUNTERTERRORISM FUND

For necessary expenses, as determined by the Attorney General,

$9,450,000, to remain available until expended, to reimburse any

Department of Justice organization for (1) the costs incurred in

reestablishing the operational capability of an office or facility which

has been damaged or destroyed as a result of the bombing of

the Alfred P. Murrah Federal Building in Oklahoma City or any

domestic or international terrorist incident, (2) the costs of providing

support to counter, investigate or prosecute domestic or international terrorism, including payment of rewards in connection

with these activities, and (3) the costs of conducting a terrorism

threat assessment of Federal agencies and their facilities: Provided,

That funds provided under this heading shall be available only

after the Attorney General notifies the Committees on Appropriations of the House of Representatives and the Senate in accordance

with section 605 of this Act.

For an additional amount for necessary expenses, as determined

by the Attorney General, $20,000,000, to remain available until

expended, to reimburse any Department of Justice organization

for (1) the costs incurred in reestablishing the operational capability

of an office or facility which has been damaged or destroyed as

a result of any domestic or international terrorist incident, or (2)

the costs of providing support to counter, investigate or prosecute

domestic or international terrorism, including payment of rewards

in connection with these activities: Provided, That the entire

amount is designated by Congress as an emergency requirement

pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and

Emergency Deficit Control Act of 1985, as amended.

ADMINISTRATIVE REVIEW AND APPEALS

For expenses necessary for the administration of pardon and

clemency petitions and immigration related activities, $62,000,000.

For an additional amount for security measures for the Executive Office of Immigration Review, $1,000,000: Provided, That the

entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget

and Emergency Deficit Control Act of 1985, as amended.

VIOLENT CRIME REDUCTION PROGRAMS, ADMINISTRATIVE REVIEW AND

APPEALS

For activities authorized by section 130005 of the Violent Crime

Control and Law Enforcement Act of 1994 (Public Law 103–322),
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–2

as amended, $48,000,000, to remain available until expended, which

shall be derived from the Violent Crime Reduction Trust Fund.

OFFICE OF INSPECTOR GENERAL

For necessary expenses of the Office of Inspector General in

carrying out the provisions of the Inspector General Act of 1978,

as amended, $31,960,000; including not to exceed $10,000 to meet

unforeseen emergencies of a confidential character, to be expended

under the direction of, and to be accounted for solely under the

certificate of, the Attorney General; and for the acquisition, lease,

maintenance, and operation of motor vehicles, without regard to

the general purchase price limitation for the current fiscal year.

UNITED STATES PAROLE COMMISSION

SALARIES AND EXPENSES

For necessary expenses of the United States Parole Commission

as authorized by law, $4,845,000.

LEGAL ACTIVITIES

SALARIES AND EXPENSES, GENERAL LEGAL ACTIVITIES

For expenses, necessary for the legal activities of the Department of Justice, not otherwise provided for, including not to exceed

$20,000 for expenses of collecting evidence, to be expended under

the direction of, and to be accounted for solely under the certificate

of, the Attorney General; and rent of private or Government-owned

space in the District of Columbia; 420,793,000; of which not to

exceed $10,000,000 for litigation support contracts shall remain

available until expended: Provided, That of the funds available

in this appropriation, not to exceed $17,525,000 shall remain available until expended for office automation systems for the legal

divisions covered by this appropriation, and for the United States

Attorneys, the Antitrust Division, and offices funded through ‘‘Salaries and Expenses’’, General Administration: Provided further, That

of the total amount appropriated, not to exceed $1,000 shall be

available to the United States National Central Bureau,

INTERPOL, for official reception and representation expenses: Provided further, That notwithstanding 31 U.S.C. 1342, the Attorney

General may accept on behalf of the United States, and credit

to this appropriation, gifts of money, personal property and services,

for the purposes of hosting the International Criminal Police

Organization’s (INTERPOL) American Regional Conference in the

United States during fiscal year 1997: Provided further, That not

to exceed 8 permanent positions and 10 full-time equivalent

workyears and $987,000 shall be expended for the Office of Legislative Affairs and Public Affairs: Provided further, That the latter

two aforementioned offices shall not be augmented by personnel

details, temporary transfers of personnel on either a reimbursable

or nonreimbursable basis or any other type of formal or informal

transfer or reimbursement of personnel or funds on either a temporary or long-term basis.

In addition, for reimbursement of expenses of the Department

of Justice associated with processing cases under the National

Childhood Vaccine Injury Act of 1986 as amended, not to exceed
110 STAT. 3009–3 PUBLIC LAW 104–208—SEPT. 30, 1996

$4,028,000, to be appropriated from the Vaccine Injury Compensation Trust Fund.

For an additional amount for expenses of the Criminal Division relating to terrorism, $1,719,000: Provided, That the entire amount

is designated by Congress as an emergency requirement pursuant

to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency

Deficit Control Act of 1985, as amended.

VIOLENT CRIME REDUCTION PROGRAMS, GENERAL LEGAL ACTIVITIES

For the expeditious deportation of denied asylum applicants,

as authorized by section 130005 of the Violent Crime Control and

Law Enforcement Act of 1994 (Public Law 103–322), as amended,

$7,750,000, to remain available until expended, which shall be

derived from the Violent Crime Reduction Trust Fund.

SALARIES AND EXPENSES, ANTITRUST DIVISION

For expenses necessary for the enforcement of antitrust and

kindred laws, $76,447,000: Provided, That notwithstanding any

other provision of law, not to exceed $58,905,000 of offsetting collections derived from fees collected for premerger notification filings

under the Hart-Scott-Rodino Antitrust Improvements Act of 1976

(15 U.S.C. 18(a)) shall be retained and used for necessary expenses

in this appropriation, and shall remain available until expended:

Provided further, That the sum herein appropriated from the General Fund shall be reduced as such offsetting collections are received

during fiscal year 1997, so as to result in a final fiscal year 1997

appropriation from the General Fund estimated at not more than

$17,542,000: Provided further, That any fees received in excess

of $58,905,000 in fiscal year 1997, shall remain available until

expended, but shall not be available for obligation until October

1, 1997.

SALARIES AND EXPENSES, UNITED STATES ATTORNEYS

For necessary expenses of the Office of the United States Attorneys, including intergovernmental agreements, $923,340,000; of

which not to exceed $2,500,000 shall be available until September

30, 1998, for the purposes of (1) providing training of personnel

of the Department of Justice in debt collection, (2) providing services

to the Department of Justice related to locating debtors and their

property, such as title searches, debtor skiptracing, asset searches,

credit reports and other investigations, (3) paying the costs of

the Department of Justice for the sale of property not covered

by the sale proceeds, such as auctioneers’ fees and expenses, maintenance and protection of property and businesses, advertising and

title search and surveying costs, and (4) paying the costs of processing and tracking debts owed to the United States Government:

Provided, That of the total amount appropriated, not to exceed

$8,000 shall be available for official reception and representation

expenses: Provided further, That not to exceed $10,000,000 of those

funds available for automated litigation support contracts shall

remain available until expended: Provided further, That $1,900,000

for supervision of the International Brotherhood of Teamsters

national election, shall remain available until expended: Provided

further, That in addition to reimbursable full-time equivalent

workyears available to the Office of the United States Attorneys,
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–4

not to exceed 8,652 positions and 8,936 full-time equivalent

workyears shall be supported from the funds appropriated in this

Act for the United States Attorneys.

For an additional amount for expenses relating to terrorism

and security needs, $10,900,000: Provided, That the entire amount

is designated by Congress as an emergency requirement pursuant

to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency

Deficit Control Act of 1985, as amended.

VIOLENT CRIME REDUCTION PROGRAMS, UNITED STATES ATTORNEYS

For activities authorized by sections 40114, 130005, 190001(b),

190001(d) and 250005 of the Violent Crime Control and Law

Enforcement Act of 1994 (Public Law 103–322), as amended, and

section 815 of the Antiterrorism and Effective Death Penalty Act

of 1996 (Public Law 104–132), $43,876,000, to remain available

until expended, which shall be derived from the Violent Crime

Reduction Trust Fund, of which $28,602,000 shall be available

to help meet the increased demands for litigation and related activities, $4,641,000 for Southwest Border Control, $1,000,000 for Federal victim counselors, and $9,633,000 for expeditious deportation

of denied asylum applicants.

UNITED STATES TRUSTEE SYSTEM FUND

For necessary expenses of the United States Trustee Program,

as authorized by 28 U.S.C. 589a(a), $107,950,000, to remain available until expended and to be derived from the United States

Trustee System Fund: Provided, That notwithstanding any other

provision of law, deposits to the Fund shall be available in such

amounts as may be necessary to pay refunds due depositors: Provided further, That notwithstanding any other provision of law,

$107,950,000 of offsetting collections derived from fees collected

pursuant to 28 U.S.C. 589a(b) shall be retained and used for necessary expenses in this appropriation and remain available until

expended: Provided further, That the sum herein appropriated from

the Fund shall be reduced as such offsetting collections are received

during fiscal year 1997, so as to result in a final fiscal year 1997

appropriation from the Fund estimated at $0: Provided further,

That any such fees collected in excess of $107,950,000 in fiscal

year 1997 shall remain available until expended but shall not

be available for obligation until October 1, 1997.

SALARIES AND EXPENSES, FOREIGN CLAIMS SETTLEMENT COMMISSION

For expenses necessary to carry out the activities of the Foreign

Claims Settlement Commission, including services as authorized

by 5 U.S.C. 3109, $953,000.

SALARIES AND EXPENSES, UNITED STATES MARSHALS SERVICE

For necessary expenses of the United States Marshals Service;

including the acquisition, lease, maintenance, and operation of

vehicles and aircraft, and the purchase of passenger motor vehicles

for police-type use, without regard to the general purchase price

limitation for the current fiscal year, $457,495,000, as authorized

by 28 U.S.C. 561(i); of which not to exceed $6,000 shall be available

for official reception and representation expenses; and of which
110 STAT. 3009–5 PUBLIC LAW 104–208—SEPT. 30, 1996

not to exceed $4,000,000 for development, implementation, maintenance and support, and training for an automated prisoner information system, and $2,200,000 to support the Justice Prisoner and

Alien Transportation System, shall remain available until expended:

Provided, That, with respect to the amounts appropriated above,

the service of maintaining and transporting State, local, or territorial prisoners shall be considered a specialized or technical service

for purposes of 31 U.S.C. 6505, and any prisoners so transported

shall be considered persons (transported for other than commercial

purposes) whose presence is associated with the performance of

a governmental function for purposes of 49 U.S.C. 40102: Provided

further, That not to exceed 12 permanent positions and 12 fulltime equivalent workyears and $700,000 shall be expended for

the Offices of Legislative Affairs and Public Affairs: Provided further, That the latter two aforementioned offices shall not be augmented by personnel details, temporary transfers of personnel on

either a reimbursable or nonreimbursable basis or any other type

of formal or informal transfer or reimbursement of personnel or

funds on either a temporary or long-term basis.

VIOLENT CRIME REDUCTION PROGRAMS, UNITED STATES MARSHALS

SERVICE

For activities authorized by section 190001(b) of the Violent

Crime Control and Law Enforcement Act of 1994 (Public Law

103–322), as amended, $25,000,000, to remain available until

expended, which shall be derived from the Violent Crime Reduction

Trust Fund.

FEDERAL PRISONER DETENTION

For expenses, related to United States prisoners in the custody

of the United States Marshals Service as authorized in 18 U.S.C.

4013, but not including expenses otherwise provided for in appropriations available to the Attorney General, $405,262,000, as

authorized by 28 U.S.C. 561(i), to remain available until expended:

Provided, That this appropriation hereafter shall not be available

for expenses authorized under 18 U.S.C. 4013(a)(4).

FEES AND EXPENSES OF WITNESSES

For expenses, mileage, compensation, and per diems of witnesses, for expenses of contracts for the procurement and supervision of expert witnesses, for private counsel expenses, and for

per diems in lieu of subsistence, as authorized by law, including

advances, $100,702,000, to remain available until expended; of

which not to exceed $4,750,000 may be made available for planning,

construction, renovations, maintenance, remodeling, and repair of

buildings, and the purchase of equipment incident thereto, for protected witness safesites; of which not to exceed $1,000,000 may

be made available for the purchase and maintenance of armored

vehicles for transportation of protected witnesses; and of which

not to exceed $4,000,000 may be made available for the purchase,

installation and maintenance of a secure, automated information

network to store and retrieve the identities and locations of protected witnesses.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–6

SALARIES AND EXPENSES, COMMUNITY RELATIONS SERVICE

For necessary expenses of the Community Relations Service,

established by title X of the Civil Rights Act of 1964, $5,319,000:

Provided, That notwithstanding any other provision of law, upon

a determination by the Attorney General that emergent circumstances require additional funding for conflict prevention and

resolution activities of the Community Relations Service, the Attorney General may transfer such amounts to the Community Relations Service, from available appropriations for the current fiscal

year for the Department of Justice, as may be necessary to respond

to such circumstances: Provided further, That any transfer pursuant

to this paragraph shall be treated as a reprogramming under section

605 of this Act and shall not be available for obligation or expenditure except in compliance with the procedures set forth in that

section.

ASSETS FORFEITURE FUND

For expenses authorized by 28 U.S.C. 524(c)(1)(A)(ii), (B), (C),

(F), and (G), as amended, $23,000,000, to be derived from the

Department of Justice Assets Forfeiture Fund.

RADIATION EXPOSURE COMPENSATION

ADMINISTRATIVE EXPENSES

For necessary administrative expenses in accordance with the

Radiation Exposure Compensation Act, $2,000,000.

PAYMENT TO RADIATION EXPOSURE COMPENSATION TRUST FUND

For payments to the Radiation Exposure Compensation Trust

Fund, $13,736,000, not to be available for obligation until September

30, 1997.

INTERAGENCY LAW ENFORCEMENT

INTERAGENCY CRIME AND DRUG ENFORCEMENT

For necessary expenses for the detection, investigation, and

prosecution of individuals involved in organized crime drug trafficking not otherwise provided for, to include intergovernmental agreements with State and local law enforcement agencies engaged in

the investigation and prosecution of individuals involved in organized crime drug trafficking, $359,430,000, of which $50,000,000

shall remain available until expended: Provided, That any amounts

obligated from appropriations under this heading may be used

under authorities available to the organizations reimbursed from

this appropriation: Provided further, That any unobligated balances

remaining available at the end of the fiscal year shall revert to

the Attorney General for reallocation among participating organizations in succeeding fiscal years, subject to the reprogramming procedures described in section 605 of this Act.
110 STAT. 3009–7 PUBLIC LAW 104–208—SEPT. 30, 1996

FEDERAL BUREAU OF INVESTIGATION

SALARIES AND EXPENSES

For necessary expenses of the Federal Bureau of Investigation

for detection, investigation, and prosecution of crimes against the

United States; including purchase for police-type use of not to

exceed 2,706 passenger motor vehicles, of which 1,945 will be for

replacement only, without regard to the general purchase price

limitation for the current fiscal year, and hire of passenger motor

vehicles; acquisition, lease, maintenance, and operation of aircraft;

and not to exceed $70,000 to meet unforeseen emergencies of a

confidential character, to be expended under the direction of, and

to be accounted for solely under the certificate of, the Attorney

General; $2,451,361,000, of which not to exceed $50,000,000 for

automated data processing and telecommunications and technical

investigative equipment and $1,000,000 for undercover operations

shall remain available until September 30, 1998; of which not

less than $147,081,000 shall be for counterterrorism investigations,

foreign counterintelligence, and other activities related to our

national security; of which not to exceed $98,400,000 shall remain

available until expended; and of which not to exceed $10,000,000

is authorized to be made available for making payments or advances

for expenses arising out of contractual or reimbursable agreements

with State and local law enforcement agencies while engaged in

cooperative activities related to violent crime, terrorism, organized

crime, and drug investigations; and of which $1,500,000 shall be

available to maintain an independent program office dedicated

solely to the relocation of the Criminal Justice Information Services

Division and the automation of fingerprint identification services:

Provided, That not to exceed $45,000 shall be available for official

reception and representation expenses: Provided further, That not

to exceed 81 permanent positions and 85 full-time equivalent

workyears and $5,959,000 shall be expended for the Office of Legislative Affairs and Public Affairs: Provided further, That the latter

two aforementioned offices shall not be augmented by personnel

details, temporary transfers of personnel on either a reimbursable

or nonreimbursable basis or any other type of formal or informal

transfer or reimbursement of personnel or funds on either a temporary or long-term basis.

For an additional amount for necessary expenses of the Federal

Bureau of Investigation to prevent and investigate terrorism activities and incidents; provide for additional agents and support staff;

protect key physical assets; establish a capability for chemical,

biological and nuclear research; improve domestic intelligence; and

improve security at Federal Bureau of Investigation offices,

$115,610,000, as authorized by the Antiterrorism and Effective

Death Penalty Act of 1996 (P.L. 104–132): Provided, That the

entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget

and Emergency Deficit Control Act of 1985, as amended.

VIOLENT CRIME REDUCTION PROGRAMS

For activities authorized by the Violent Crime Control and

Law Enforcement Act of 1994 (Public Law 103–322) as amended

(‘‘the 1994 Act’’), and the Antiterrorism and Effective Death Penalty
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–8

Act of 1996 (‘‘the Antiterrorism Act’’), $169,000,000, to remain available until expended, which shall be derived from the Violent Crime

Reduction Trust Fund; of which $76,356,000 shall be for activities

authorized by section 190001(c) of the 1994 Act and section 811

of the Antiterrorism Act; $53,404,000 shall be for activities authorized by section 190001(b) of the 1994 Act, of which $20,240,000

shall be for activities authorized by section 103 of the Brady Handgun Violence Prevention Act (Public Law 103–159), as amended;

$4,000,000 shall be for training and investigative assistance authorized by section 210501 of the 1994 Act; $9,500,000 shall be for

grants to States, as authorized by section 811(b) of the Antiterrorism

Act; and $5,500,000 shall be for establishing DNA quality-assurance

and proficiency-testing standards, establishing an index to facilitate

law enforcement exchange of DNA identification information, and

related activities authorized by section 210501 of the 1994 Act.

TELECOMMUNICATIONS CARRIER COMPLIANCE FUND

For necessary expenses, as determined by the Attorney General,

$60,000,000, to remain available until expended, to be deposited

in the Telecommunications Carrier Compliance Fund for making

payments to telecommunications carriers, equipment manufacturers, and providers of telecommunications support services pursuant

to section 110 of this Act: Provided, That the entire amount is

designated by Congress as an emergency requirement pursuant

to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency

Deficit Control Act of 1985, as amended: Provided further, That

the entire amount not previously designated by the President as

an emergency requirement shall be available only to the extent

an official budget request, for a specific dollar amount that includes

designation of the entire amount of the request as an emergency

requirement, as defined in the Balanced Budget and Emergency

Deficit Control Act of 1985, as amended, is transmitted to Congress.

CONSTRUCTION

For necessary expenses to construct or acquire buildings and

sites by purchase, or as otherwise authorized by law (including

equipment for such buildings); conversion and extension of federallyowned buildings; and preliminary planning and design of projects;

$41,639,000, to remain available until expended.

DRUG ENFORCEMENT ADMINISTRATION

SALARIES AND EXPENSES

For necessary expenses of the Drug Enforcement Administration, including not to exceed $70,000 to meet unforeseen emergencies of a confidential character, to be expended under the direction of, and to be accounted for solely under the certificate of,

the Attorney General; expenses for conducting drug education and

training 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; purchase of not

to exceed 1,158 passenger motor vehicles, of which 1,032 will be

for replacement only, for police-type use without regard to the

general purchase price limitation for the current fiscal year; and

acquisition, lease, maintenance, and operation of aircraft;
110 STAT. 3009–9 PUBLIC LAW 104–208—SEPT. 30, 1996

$745,388,000, of which not to exceed $1,800,000 for research and

$15,000,000 for transfer to the Drug Diversion Control Fee Account

for operating expenses shall remain available until expended, and

of which not to exceed $4,000,000 for purchase of evidence and

payments for information, not to exceed $4,000,000 for contracting

for automated data processing and telecommunications equipment,

and not to exceed $2,000,000 for laboratory equipment, $4,000,000

for technical equipment, and $2,000,000 for aircraft replacement

retrofit and parts, shall remain available until September 30, 1998;

and of which not to exceed $50,000 shall be available for official

reception and representation expenses: Provided, That not to exceed

25 permanent positions and 25 full-time equivalent workyears and

$1,828,000 shall be expended for the Office of Legislative Affairs

and Public Affairs: Provided further, That the latter two aforementioned offices shall not be augmented by personnel details, temporary transfers of personnel on either a reimbursable or nonreimbursable basis or any other type of formal or informal transfer

or reimbursement of personnel or funds on either a temporary

or long-term basis.

For an additional amount for security measures for domestic and foreign Drug Enforcement Administration offices, $5,000,000:

Provided, That the entire amount is designated by Congress as

an emergency requirement pursuant to section 251(b)(2)(D)(i) of

the Balanced Budget and Emergency Deficit Control Act of 1985,

as amended.

VIOLENT CRIME REDUCTION PROGRAMS

For activities authorized by sections 180104 and 190001(b)

of the Violent Crime Control and Law Enforcement Act of 1994

(Public Law 103–322), as amended, and section 814 of the

Antiterrorism and Effective Death Penalty Act of 1996 (Public Law

104–132), and for the purchase of passenger motor vehicles for

police-type use, as otherwise authorized in this title, $220,000,000,

to remain available until expended, which shall be derived from

the Violent Crime Reduction Trust Fund.

CONSTRUCTION

For necessary expenses to construct or acquire buildings and

sites by purchase, or as otherwise authorized by law (including

equipment for such buildings); conversion and extension of federallyowned buildings; and preliminary planning and design of projects;

$30,806,000, to remain available until expended.

IMMIGRATION AND NATURALIZATION SERVICE

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF FUNDS)

For expenses, not otherwise provided for, necessary for the

administration and enforcement of the laws relating to immigration,

naturalization, and alien registration, including not to exceed

$50,000 to meet unforeseen emergencies of a confidential character,

to be expended under the direction of, and to be accounted for

solely under the certificate of, the Attorney General; purchase for

police type use (not to exceed 2,691, of which 1,711 are for replacement only), without regard to the general purchase price limitation
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–10

for the current fiscal year, and hire of passenger motor vehicles;

acquisition, lease, maintenance and operation of aircraft; and

research related to immigration enforcement; $1,590,159,000 of

which not to exceed $400,000 for research shall remain available

until expended; and of which not to exceed $10,000,000 shall be

available for costs associated with the training program for basic

officer training, and $5,000,000 is for payments or advances arising

out of contractual or reimbursable agreements with State and local

law enforcement agencies while engaged in cooperative activities

related to immigration: Provided, That none of the funds available

to the Immigration and Naturalization Service shall be available

to pay any employee overtime pay in an amount in excess of

$30,000 during the calendar year beginning January 1, 1997: Provided further, That uniforms may be purchased without regard

to the general purchase price limitation for the current fiscal year:

Provided further, That not to exceed $5,000 shall be available

for official reception and representation expenses: Provided further,

That none of the funds provided in this or any other Act shall

be used for the continued operation of the San Clemente and

Temecula checkpoints unless the checkpoints are open and traffic

is being checked on a continuous 24-hour basis: Provided further,

That the Land Border Fee Pilot Project scheduled to end September

30, 1996, is extended to September 30, 1999, for projects on both

the northern and southern borders of the United States, except

that no pilot program may implement a universal land border

crossing toll: Provided further, That obligated and unobligated balances available to ‘‘Salaries and Expenses, Community Relations

Service’’ under section 501(c) of the Refugee Education Assistance

Act of 1980 are transferred to this account and shall remain available until expended: Provided further, That not to exceed 48 perma- nent positions and 48 full-time equivalent workyears and $4,628,000

shall be expended for the Office of Legislative Affairs and Public

Affairs: Provided further, That the latter two aforementioned offices

shall not be augmented by personnel details, temporary transfers

of personnel on either a reimbursable or nonreimbursable basis

or any other type of formal or informal transfer or reimbursement

of personnel or funds on either a temporary or long-term basis.

For an additional amount to support the detention and removal

of aliens with ties to terrorist organizations and expand the detention and removal of illegal aliens and enhance the intelligence

of the Immigration and Naturalization Service, $15,000,000, of

which $10,000,000 shall be for detention and removal of aliens:

Provided, That the entire amount is designated by Congress as

an emergency requirement pursuant to section 251(b)(2)(D)(i) of

the Balanced Budget and Emergency Deficit Control Act of 1985,

as amended.

VIOLENT CRIME REDUCTION PROGRAMS

For activities authorized by sections 130002, 130005, 130006,

130007, and 190001(b) of the Violent Crime Control and Law

Enforcement Act of 1994 (Public Law 103–322), as amended, and

section 813 of the Antiterrorism and Effective Death Penalty Act

of 1996 (Public Law 104–132), $500,000,000, to remain available

until expended, which will be derived from the Violent Crime Reduction Trust Fund, of which $66,217,000 shall be for expeditious

deportation of denied asylum applicants, $317,256,000 shall be for

improving border controls, and $116,527,000 shall be for detention

8 USC 1356 note.
110 STAT. 3009–11 PUBLIC LAW 104–208—SEPT. 30, 1996

and deportation proceedings: Provided, That amounts not required

for asylum processing provided under the expeditious deportation

of denied asylum applicants shall also be available for other deportation program activities.

CONSTRUCTION

For planning, construction, renovation, equipping, and maintenance of buildings and facilities necessary for the administration

and enforcement of the laws relating to immigration, naturalization,

and alien registration, not otherwise provided for, $9,841,000, to

remain available until expended.

FEDERAL PRISON SYSTEM

SALARIES AND EXPENSES

For expenses necessary for the administration, operation, and

maintenance of Federal penal and correctional institutions, including purchase (not to exceed 836, of which 572 are for replacement

only) and hire of law enforcement and passenger motor vehicles,

and for the provision of technical assistance and advice on corrections related issues to foreign governments; $2,768,316,000: Provided, That the Attorney General may transfer to the Health

Resources and Services Administration such amounts as may be

necessary for direct expenditures by that Administration for medical

relief for inmates of Federal penal and correctional institutions:

Provided further, That the Director of the Federal Prison System

(FPS), where necessary, may enter into contracts with a fiscal

agent/fiscal intermediary claims processor to determine the amounts

payable to persons who, on behalf of the FPS, furnish health services to individuals committed to the custody of the FPS: Provided

further, That uniforms may be purchased without regard to the

general purchase price limitation for the current fiscal year: Provided further, That not to exceed $6,000 shall be available for

official reception and representation expenses: Provided further,

That not to exceed $90,000,000 for the activation of new facilities

shall remain available until September 30, 1998: Provided further,

That of the amounts provided for Contract Confinement, not to

exceed $20,000,000 shall remain available until expended to make

payments in advance for grants, contracts and reimbursable agreements, and other expenses authorized by section 501(c) of the

Refugee Education Assistance Act of 1980, as amended, for the

care and security in the United States of Cuban and Haitian

entrants: Provided further, That notwithstanding section 4(d) of

the Service Contract Act of 1965 (41 U.S.C. 353(d)), FPS may

enter into contracts and other agreements with private entities

for periods of not to exceed 3 years and 7 additional option years

for the confinement of Federal prisoners: Provided further, That

the National Institute of Corrections hereafter shall be included

in the FPS Salaries and Expenses budget, in the Contract Confinement program and shall continue to perform its current functions

under 18 U.S.C. 4351, et seq., with the exception of its grant

program and shall collect reimbursement for services whenever

possible: Provided further, That any unexpended balances available

to the ‘‘National Institute of Corrections’’ account shall be credited

to and merged with this appropriation, to remain available until

expended.

18 USC 4352

note.

42 USC 250a.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–12

VIOLENT CRIME REDUCTION PROGRAMS

For substance abuse treatment in Federal prisons as authorized

by section 32001(e) of the Violent Crime Control and Law Enforcement Act of 1994 (Public Law 103–322), as amended, $25,224,000,

to remain available until expended, which shall be derived from

the Violent Crime Reduction Trust Fund.

BUILDINGS AND FACILITIES

For planning, acquisition of sites and construction of new facilities; leasing the Oklahoma City Airport Trust Facility; purchase

and acquisition of facilities and remodeling, and equipping of such

facilities for penal and correctional use, including all necessary

expenses incident thereto, by contract or force account; and constructing, remodeling, and equipping necessary buildings and facilities at existing penal and correctional institutions, including all

necessary expenses incident thereto, by contract or force account;

$395,700,000, to remain available until expended, of which not

to exceed $14,074,000 shall be available to construct areas for

inmate work programs: Provided, That labor of United States prisoners may be used for work performed under this appropriation:

Provided further, That not to exceed 10 percent of the funds appropriated to ‘‘Buildings and Facilities’’ in this Act or any other Act

may be transferred to ‘‘Salaries and Expenses’’, Federal Prison

System, upon notification by the Attorney General to the Committees on Appropriations of the House of Representatives and the

Senate in compliance with provisions set forth in section 605 of

this Act: Provided further, That of the total amount appropriated, not to exceed $36,570,000 shall be available for the renovation

and construction of United States Marshals Service prisoner-holding

facilities.

FEDERAL PRISON INDUSTRIES, INCORPORATED

The Federal Prison Industries, Incorporated, is hereby authorized to make such 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 9104 of title 31, United

States Code, as may be necessary in carrying out the program

set forth in the budget for the current fiscal year for such corporation, including purchase of (not to exceed five for replacement

only) and hire of passenger motor vehicles.

LIMITATION ON ADMINISTRATIVE EXPENSES, FEDERAL PRISON

INDUSTRIES, INCORPORATED

Not to exceed $3,042,000 of the funds of the corporation shall

be available for its administrative expenses, and for services as

authorized by 5 U.S.C. 3109, to be computed on an accrual basis

to be determined in accordance with the corporation’s current prescribed accounting system, and such amounts shall be exclusive

of depreciation, payment of claims, and expenditures which the

said accounting system requires to be capitalized or charged to

cost of commodities acquired or produced, including selling and

shipping expenses, and expenses in connection with acquisition,

construction, operation, maintenance, improvement, protection, or
110 STAT. 3009–13 PUBLIC LAW 104–208—SEPT. 30, 1996

disposition of facilities and other property belonging to the corporation or in which it has an interest.

OFFICE OF JUSTICE PROGRAMS

JUSTICE ASSISTANCE

For grants, contracts, cooperative agreements, and other assistance authorized by title I of the Omnibus Crime Control and Safe

Streets Act of 1968, as amended, and the Missing Children’s Assistance Act, as amended, including salaries and expenses in connection

therewith, and with the Victims of Crime Act of 1984, as amended,

$101,429,000, to remain available until expended, as authorized

by section 1001 of title I of the Omnibus Crime Control and Safe

Streets Act, as amended by Public Law 102–534 (106 Stat. 3524).

For an additional amount, $17,000,000, to remain available

until expended; of which $5,000,000 shall be for Local Firefighter

and Emergency Services Training Grants as authorized by section

819 of the Antiterrorism and Effective Death Penalty Act of 1996

(‘‘the Antiterrorism Act’’); of which $10,000,000 shall be for development of counterterrorism technologies to help State and local law

enforcement combat terrorism, as authorized by section 821 of

the Antiterrorism Act; of which $2,000,000 shall be for specialized

multi-agency response training: Provided, That the entire amount

is designated by Congress as an emergency requirement pursuant

to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency

Deficit Control Act of 1985, as amended: Provided further, That

the entire amount not previously designated by the President as

an emergency requirement shall be available only to the extent

an official budget request, for a specific dollar amount that includes

designation of the entire amount of the request as an emergency

requirement, as defined in the Balanced Budget and Emergency

Deficit Control Act of 1985, as amended, is transmitted to Congress.

STATE AND LOCAL LAW ENFORCEMENT ASSISTANCE

For grants, contracts, cooperative agreements, and other assistance authorized by part E of title I of the Omnibus Crime Control

and Safe Streets Act of 1968, as amended, for State and Local

Narcotics Control and Justice Assistance Improvements, notwithstanding the provisions of section 511 of said Act, $361,000,000,

to remain available until expended, as authorized by section 1001

of title I of said Act, as amended by Public Law 102–534 (106

Stat. 3524), of which $60,000,000 shall be available to carry out

the provisions of chapter A of subpart 2 of part E of title I of

said Act, for discretionary grants under the Edward Byrne Memorial

State and Local Law Enforcement Assistance Programs.

VIOLENT CRIME REDUCTION PROGRAMS, STATE AND LOCAL LAW

ENFORCEMENT ASSISTANCE

For assistance (including amounts for administrative costs for

management and administration, which amounts shall be transferred to and merged with the ‘‘Justice Assistance’’ account) authorized by the Violent Crime Control and Law Enforcement Act of

1994 (Public Law 103–322), as amended (‘‘the 1994 Act’’); the Omnibus Crime Control and Safe Streets Act of 1968, as amended (‘‘the

1968 Act’’); and the Victims of Child Abuse Act of 1990, as amended
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–14

(‘‘the 1990 Act’’); $2,036,150,000, to remain available until expended,

which shall be derived from the Violent Crime Reduction Trust

Fund; of which $523,000,000 shall be for Local Law Enforcement

Block Grants, pursuant to H.R. 728 as passed by the House of

Representatives on February 14, 1995, except that for purposes

of this Act, the Commonwealth of Puerto Rico shall be considered

a ‘‘unit of local government’’ as well as a ‘‘State’’, for the purposes

set forth in paragraphs (A), (B), (D), (F), and (I) of section 101(a)(2)

of H.R. 728 and for establishing crime prevention programs involving cooperation between community residents and law enforcement

personnel in order to control, detect, or investigate crime or the

prosecution of criminals: Provided, That no funds provided under

this heading may be used as matching funds for any other Federal

grant program: Provided further, That $20,000,000 of this amount

shall be for Boys and Girls Clubs in public housing facilities and

other areas in cooperation with State and local law enforcement:

Provided further, That funds may also be used to defray the costs

of indemnification insurance for law enforcement officers; of which

$50,000,000 shall be for grants to upgrade criminal records, as

authorized by section 106(b) of the Brady Handgun Violence Prevention Act of 1993, as amended, and section 4(b) of the National

Child Protection Act of 1993; of which $199,000,000 shall be available as authorized by section 1001 of title I of the 1968 Act,

to carry out the provisions of subpart 1, part E of title I of the

1968 Act, notwithstanding section 511 of said Act, for the Edward

Byrne Memorial State and Local Law Enforcement Assistance Programs; of which $330,000,000 shall be for the State Criminal Alien

Assistance Program, as authorized by section 242(j) of the Immigration and Nationality Act, as amended; of which $670,000,000 shall

be for Violent Offender Incarceration and Truth in Sentencing

Incentive Grants pursuant to subtitle A of title II of the 1994

Act, of which $170,000,000 shall be available for payments to States

for incarceration of criminal aliens, and of which $12,500,000 shall

be available for the Cooperative Agreement Program: Provided further, That funds made available for Violent Offender Incarceration

and Truth in Sentencing Incentive Grants to the State of California

may, at the discretion of the recipient, be used for payments for

the incarceration of criminal aliens: Provided further, That beginning in fiscal year 1999, and thereafter, no funds shall be available

to make grants to a State pursuant to section 20103 or section

20104 of the Violent Crime Control and Law Enforcement Act

of 1994 unless no later than September 1, 1998, such State has

implemented a program of controlled substance testing and intervention for appropriate categories of convicted offenders during

periods of incarceration and criminal justice supervision, with sanctions including denial or revocation of release for positive controlled

substance tests, consistent with guidelines issued by the Attorney

General; of which $6,000,000 shall be for the Court Appointed

Special Advocate Program, as authorized by section 218 of the

1990 Act; of which $1,000,000 shall be for Child Abuse Training

Programs for Judicial Personnel and Practitioners, as authorized

by section 224 of the 1990 Act; of which $145,000,000 shall be

for Grants to Combat Violence Against Women, to States, units

of local government, and Indian tribal governments, as authorized

by section 1001(a)(18) of the 1968 Act; of which $33,000,000 shall

be for Grants to Encourage Arrest Policies to States, units of local

42 USC 13703

note.
110 STAT. 3009–15 PUBLIC LAW 104–208—SEPT. 30, 1996

government, and Indian tribal governments, as authorized by section 1001(a)(19) of the 1968 Act; of which $8,000,000 shall be

for Rural Domestic Violence and Child Abuse Enforcement Assistance Grants, as authorized by section 40295 of the 1994 Act; of

which $1,000,000 shall be for training programs to assist probation

and parole officers who work with released sex offenders, as authorized by section 40152(c) of the 1994 Act; of which $550,000 shall

be for grants for televised testimony, as authorized by section

1001(a)(7) of the 1968 Act; of which $1,750,000 shall be for national

stalker and domestic violence reduction, as authorized by section

40603 of the 1994 Act; of which $30,000,000 shall be for grants

for residential substance abuse treatment for State prisoners as

authorized by section 1001(a)(17) of the 1968 Act; of which

$3,000,000 shall be for grants to States and units of local government for projects to improve DNA analysis, as authorized by section

1001(a)(22) of the 1968 Act; of which $900,000 shall be for the

Missing Alzheimer’s Disease Patient Alert Program, as authorized

by section 240001(c) of the 1994 Act; of which $750,000 shall be

for Motor Vehicle Theft Prevention Programs, as authorized by

section 220002(h) of the 1994 Act; of which $200,000 shall be

for a National Baseline Study on Campus Sexual Assault, as authorized by section 40506(e) of the 1994 Act; of which $30,000,000

shall be for Drug Courts, as authorized by title V of the 1994

Act; of which $1,000,000 shall be for Law Enforcement Family

Support Programs, as authorized by section 1001(a)(21) of the 1968

Act; and of which $2,000,000 shall be for public awareness programs

addressing marketing scams aimed at senior citizens, as authorized

by section 250005(3) of the 1994 Act: Provided further, That funds

made available in fiscal year 1997 under subpart 1 of part E

of title I of the Omnibus Crime Control and Safe Streets Act

of 1968, as amended, may be obligated for programs to assist

States in the litigation processing of death penalty Federal habeas

corpus petitions and for drug testing initiatives: Provided further, That any 1996 balances for these programs shall be transferred

to and merged with this appropriation: Provided further, That if

a unit of local government uses any of the funds made available

under this title to increase the number of law enforcement officers,

the unit of local government will achieve a net gain in the number

of law enforcement officers who perform nonadministrative public

safety service.

WEED AND SEED PROGRAM FUND

For necessary expenses, including salaries and related expenses

of the Executive Office for Weed and Seed, to implement ‘‘Weed

and Seed’’ program activities, $28,500,000, which shall be derived

from discretionary grants provided under the Edward Byrne Memorial State and Local Law Enforcement Assistance Programs, to

remain available until expended for intergovernmental agreements,

including grants, cooperative agreements, and contracts, with State

and local law enforcement agencies engaged in the investigation

and prosecution of violent crimes and drug offenses in ‘‘Weed and

Seed’’ designated communities, and for either reimbursements or

transfers to appropriation accounts of the Department of Justice

and other Federal agencies which shall be specified by the Attorney

General to execute the ‘‘Weed and Seed’’ program strategy: Provided,

That funds designated by Congress through language for other

Department of Justice appropriation accounts for ‘‘Weed and Seed’’
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–16

program activities shall be managed and executed by the Attorney

General through the Executive Office for Weed and Seed: Provided

further, That the Attorney General may direct the use of other

Department of Justice funds and personnel in support of ‘‘Weed

and Seed’’ program activities only after the Attorney General notifies the Committees on Appropriations of the House of Representatives and the Senate in accordance with section 605 of this Act.

COMMUNITY ORIENTED POLICING SERVICES

VIOLENT CRIME REDUCTION PROGRAMS

For activities authorized by the Violent Crime Control and

Law Enforcement Act of 1994, Public Law 103–322 (‘‘the 1994

Act’’) (including administrative costs), $1,400,000,000, to remain

available until expended, which shall be derived from the Violent

Crime Reduction Trust Fund, for Public Safety and Community

Policing Grants pursuant to title I of the 1994 Act: Provided, That

not to exceed 186 permanent positions and 174 full-time equivalent

workyears and $19,800,000 shall be expended for program management and administration.

In addition, for programs of Police Corps education, training

and service as set forth in sections 200101–200113 of the Violent

Crime Control and Law Enforcement Act of 1994 (Public Law

103–322), $20,000,000, to remain available until expended, which

shall be derived from the Violent Crime Reduction Trust Fund.

JUVENILE JUSTICE PROGRAMS

For grants, contracts, cooperative agreements, and other assistance authorized by the Juvenile Justice and Delinquency Prevention

Act of 1974, as amended, including salaries and expenses in connection therewith to be transferred to and merged with the appropriations for Justice Assistance, $170,000,000, to remain available until

expended, as authorized by section 299 of part I of title II and

section 506 of title V of the Act, as amended by Public Law 102–

586, of which (1) notwithstanding any other provision of law,

$5,000,000 shall be available for expenses authorized by part A

of title II of the Act, $86,500,000 shall be available for expenses

authorized by part B of title II of the Act, and $29,500,000 shall

be available for expenses authorized by part C of title II of the

Act: Provided, That $16,500,000 of the amounts provided for part

B of title II of the Act, as amended, is for the purpose of providing

additional formula grants under part B, for innovative local law

enforcement and community policing programs, to States that provide assurances to the Administrator that the State has in effect

(or will have in effect no later than 1 year after date of application)

policies and programs, that ensure that juveniles are subject to

accountability-based sanctions for every act for which they are

adjudicated delinquent; (2) $12,000,000 shall be available for

expenses authorized by sections 281 and 282 of part D of title

II of the Act for prevention and treatment programs relating to

juvenile gangs; (3) $10,000,000 shall be available for expenses

authorized by section 285 of part E of title II of the Act; (4)

$7,000,000 shall be available for expenses authorized by part G

of title II of the Act for juvenile mentoring programs; and (5)

$20,000,000 shall be available for expenses authorized by title V

of the Act for incentive grants for local delinquency prevention
110 STAT. 3009–17 PUBLIC LAW 104–208—SEPT. 30, 1996

programs: Provided, That upon the enactment of reauthorization

legislation for Juvenile Justice Programs under the Juvenile Justice

and Delinquency Prevention Act of 1974, as amended, funding

provided in this Act shall from that date be subject to the provisions

of that legislation and any provisions in this Act that are inconsistent with that legislation shall no longer have effect.

In addition, for grants, contracts, cooperative agreements, and

other assistance authorized by the Victims of Child Abuse Act

of 1990, as amended, $4,500,000, to remain available until

expended, as authorized by sections 214B of the Act.

PUBLIC SAFETY OFFICERS BENEFITS

For payments authorized by part L of title I of the Omnibus

Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3796),

as amended, such sums as are necessary, to remain available until

expended, as authorized by section 6093 of Public Law 100–690

(102 Stat. 4339–4340), and, in addition, $2,200,000, to remain available until expended, for payments as authorized by section 1201(b)

of said Act.

GENERAL PROVISIONS—DEPARTMENT OF JUSTICE

SEC. 101. In addition to amounts otherwise made available

in this title for official reception and representation expenses, a

total of not to exceed $45,000 from funds appropriated to the Department of Justice in this title shall be available to the Attorney

General for official reception and representation expenses in accordance with distributions, procedures, and regulations established

by the Attorney General.

SEC. 102. Authorities contained in the Department of Justice

Appropriation Authorization Act, Fiscal Year 1980 (Pub. L. 96–

132, 93 Stat. 1040 (1979)), as amended, shall remain in effect

until the termination date of this Act or until the effective date

of a Department of Justice Appropriation Authorization Act, whichever is earlier.

SEC. 103. None of the funds appropriated by this title shall

be available to pay for an abortion, except where the life of the

mother would be endangered if the fetus were carried to term,

or in the case of rape: Provided, That should this prohibition be

declared unconstitutional by a court of competent jurisdiction, this

section shall be null and void.

SEC. 104. None of the funds appropriated under this title shall

be used to require any person to perform, or facilitate in any

way the performance of, any abortion.

SEC. 105. Nothwing in the preceding section shall remove the

obligation of the Director of the Bureau of Prisons to provide escort

services necessary for a female inmate to receive such service outside the Federal facility: Provided, That nothing in this section

in any way diminishes the effect of section 104 intended to address

the philosophical beliefs of individual employees of the Bureau

of Prisons.

SEC. 106. Notwithstanding any other provision of law, not

to exceed $10,000,000 of the funds made available in this Act

may be used to establish and publicize a program under which

publicly-advertised, extraordinary rewards may be paid, which shall

not be subject to spending limitations contained in sections 3059

and 3072 of title 18, United States Code: Provided, That any reward

18 USC 3059

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–18

of $100,000 or more, up to a maximum of $2,000,000, may not

be made without the personal approval of the President or the

Attorney General and such approval may not be delegated.

SEC. 107. Not to exceed 5 percent of any appropriation made

available for the current fiscal year for the Department of Justice

in this Act, including those derived from the Violent Crime Reduction Trust Fund, may be transferred between such appropriations,

but no such appropriation, except as otherwise specifically provided,

shall be increased by more than 10 percent by any such transfers:

Provided, That any transfer pursuant to this section shall be treated

as a reprogramming of funds under section 605 of this Act and

shall not be available for obligation except in compliance with

the procedures set forth in that section.

SEC. 108. Section 524(c)(8)(E) of title 28, United States Code,

is amended by striking the year in the date therein contained

and replacing the same with ‘‘1996’’.

SEC. 109. (a) Section 1930(a) of title 28, United States Code,

is amended in paragraph (3), by inserting ‘‘$’’ before ‘‘800’’, and

in paragraph (6), by striking everything after ‘‘total less than

$15,000;’’ and inserting in lieu thereof: ‘‘$500 for each quarter

in which disbursements total $15,000 or more but less than $75,000;

$750 for each quarter in which disbursements total $75,000 or

more but less than $150,000; $1,250 for each quarter in which

disbursements total $150,000 or more but less than $225,000;

$1,500 for each quarter in which disbursements total $225,000

or more but less than $300,000; $3,750 for each quarter in which

disbursements total $300,000 or more but less than $1,000,000;

$5,000 for each quarter in which disbursements total $1,000,000

or more but less than $2,000,000; $7,500 for each quarter in which

disbursements total $2,000,000 or more but less than $3,000,000;

$8,000 for each quarter in which disbursements total $3,000,000

or more but less than $5,000,000; $10,000 for each quarter in

which disbursements total $5,000,000 or more. The fee shall be

payable on the last day of the calendar month following the calendar

quarter for which the fee is owed.’’.

(b) Section 589a of title 28, United States Code, is amended

to read as follows:

‘‘§ 589a. United States Trustee System Fund

‘‘(a) There is hereby established in the Treasury of the United

States a special fund to be known as the ‘United States Trustee

System Fund’ (hereinafter in this section referred to as the ‘Fund’).

Monies in the Fund shall be available to the Attorney General

without fiscal year limitation in such amounts as may be specified

in appropriations Acts for the following purposes in connection

with the operations of United States trustees—

‘‘(1) salaries and related employee benefits;

‘‘(2) travel and transportation;

‘‘(3) rental of space;

‘‘(4) communication, utilities, and miscellaneous computer

charges;

‘‘(5) security investigations and audits;

‘‘(6) supplies, books, and other materials for legal research;

‘‘(7) furniture and equipment;

‘‘(8) miscellaneous services, including those obtained by

contract; and

‘‘(9) printing.
110 STAT. 3009–19 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(b) For the purpose of recovering the cost of services of the

United States Trustee System, there shall be deposited as offsetting

collections to the appropriation ‘United States Trustee System

Fund’, to remain available until expended, the following—

‘‘(1) 23.08 percent of the fees collected under section

1930(a)(1) of this title;

‘‘(2) one-half of the fees collected under section 1930(a)(3)

of this title;

‘‘(3) one-half of the fees collected under section 1930(a)(4)

of this title;

‘‘(4) one-half of the fees collected under section 1930(a)(5)

of this title;

‘‘(5) 100 percent of the fees collected under section

1930(a)(6) of this title;

‘‘(6) three-fourths of the fees collected under the last sentence of section 1930(a) of this title;

‘‘(7) the compensation of trustees received under section

330(d) of title 11 by the clerks of the bankruptcy courts; and

‘‘(8) excess fees collected under section 586(e)(2) of this

title.

‘‘(c) Amounts in the Fund which are not currently needed

for the purposes specified in subsection (a) shall be kept on deposit

or invested in obligations of, or guaranteed by, the United States.

‘‘(d) The Attorney General shall transmit to the Congress, not

later than 120 days after the end of each fiscal year, a detailed

report on the amounts deposited in the Fund and a description

of expenditures made under this section.

‘‘(e) There are authorized to be appropriated to the Fund for

any fiscal year such sums as may be necessary to supplement

amounts deposited under subsection (b) for the purposes specified

in subsection (a).’’.

(c) Notwithstanding any other provision of law or of this Act,

the amendments to 28 U.S.C. 589a made by subsection (b) of

this section shall take effect upon enactment of this Act.

(d) Section 101(a) of Public Law 104–91, as amended by section

211 of Public Law 104–99, is further amended by inserting ‘‘:

Provided further, That, notwithstanding any other provision of law,

the fees under 28 U.S.C. 1930(a)(6) shall accrue and be payable

from and after January 27, 1996, in all cases (including, without

limitation, any cases pending as of that date), regardless of confirmation status of their plans’’ after ‘‘enacted into law’’.

SEC. 110. Public Law 103–414 (108 Stat. 4279) is amended

by inserting at its conclusion a new title IV, as follows:

‘‘TITLE IV—TELECOMMUNICATIONS CARRIER COMPLIANCE

PAYMENTS

‘‘SEC. 401. DEPARTMENT OF JUSTICE TELECOMMUNICATIONS CARRIER COMPLIANCE FUND.

‘‘(a) ESTABLISHMENT OF FUND.—There is hereby established

in the United States Treasury a fund to be known as the Department of Justice Telecommunications Carrier Compliance Fund

(hereafter referred to as ‘the Fund’), which shall be available without fiscal year limitation to the Attorney General for making payments to telecommunications carriers, equipment manufacturers,

and providers of telecommunications support services pursuant to

section 109 of this Act.

47 USC 1021.

28 USC 1930

note.

28 USC 589a

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–20

‘‘(b) DEPOSITS TO THE FUND.—Notwithstanding any other provision of law, any agency of the United States with law enforcement

or intelligence responsibilities may deposit as offsetting collections

to the Fund any unobligated balances that are available until

expended, upon compliance with any Congressional notification

requirements for reprogrammings of funds applicable to the appropriation from which the deposit is to be made.

‘‘(c) TERMINATION.—

‘‘(1) The Attorney General may terminate the Fund at

such time as the Attorney General determines that the Fund

is no longer necessary.

‘‘(2) Any balance in the Fund at the time of its termination

shall be deposited in the General Fund of the Treasury.

‘‘(3) A decision of the Attorney General to terminate the

Fund shall not be subject to judicial review.

‘‘(d) AVAILABILITY OF FUNDS FOR EXPENDITURE.—Funds shall

not be available for obligation unless an implementation plan as

set forth in subsection (e) is submitted to each member of the

Committees on the Judiciary and Appropriations of both the House

of Representatives and the Senate and the Congress does not by

law block or prevent the obligation of such funds. Such funds

shall be treated as a reprogramming of funds under section 605

of the Department of Commerce, Justice, and State, the Judiciary,

and Related Agencies Appropriations Act, 1997, and shall not be

available for obligation or expenditure except in compliance with

the procedures set forth in that section and this section.

‘‘(e) IMPLEMENTATION PLAN.—The implementation plan shall

include:

‘‘(1) the law enforcement assistance capability requirements

and an explanation of law enforcement’s recommended interface;

‘‘(2) the proposed actual and maximum capacity requirements for the number of simultaneous law enforcement communications intercepts, pen registers, and trap and trace devices

that authorized law enforcement agencies may seek to conduct,

set forth on a county-by-county basis for wireline services and

on a market service area basis for wireless services, and the

historical baseline of electronic surveillance activity upon which

such capacity requirements are based;

‘‘(3) a prioritized list of carrier equipment, facilities, and

services deployed on or before January 1, 1995, to be modified

by carriers at the request of law enforcement based on its

investigative needs;

‘‘(4) a projected reimbursement plan that estimates the

cost for the coming fiscal year and for each fiscal year thereafter, based on the prioritization of law enforcement needs

as outlined in (3), of modification by carriers of equipment,

facilities and services, installed on or before January 1, 1995.

‘‘(f) ANNUAL REPORT TO THE CONGRESS.—The Attorney General

shall submit to the Congress each year a report specifically detailing

all deposits and expenditures made pursuant to this Act in each

fiscal year. This report shall be submitted to each member of

the Committees on the Judiciary and Appropriations of both the

House of Representatives and the Senate, and to the Speaker and

minority leader of the House of Representatives and to the majority

and minority leaders of the Senate, no later than 60 days after

the end of each fiscal year.’’.
110 STAT. 3009–21 PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 111. It is the sense of the Congress that the Drug Enforcement Administration, together with other appropriate Federal agencies, should take such actions as may be necessary to end the

illegal importation into the United States of Rohypnol

(flunitrazepam), a drug frequently distributed with the intent to

facilitate sexual assault and rape.

SEC. 112. Section 1402 of the Victims of Crime Act of 1984,

as amended (42 U.S.C. 10601), is amended at subsection (e) by

deleting ‘‘2’’ and inserting ‘‘3’’, and at subsection (d) by adding

a new paragraph (5) as follows:

‘‘(5) The Director may set aside up to $500,000 of the

reserve fund described in paragraph (4) to make supplemental

grants to United States Attorneys Offices to provide necessary

assistance to victims of the bombing of the Alfred P. Murrah

Federal Building in Oklahoma City, to facilitate observation

of and/or participation by such victims in trial proceedings

arising therefrom, including, without limitation, provision of

lodging and travel assistance, and to pay such other, related

expenses determined to be necessary by the Director.’’.

SEC. 113. Section 732 of Public Law 104–132 (110 Stat. 1303;

18 U.S.C. 841 note) is amended—

(1) in subsection (a), by adding at the end the following

new paragraph:

‘‘(3) NEW PREVENTION TECHNOLOGIES.—In addition to the

study of taggants as provided herein, the Secretary, in consultation with the Attorney General, shall concurrently report to

the Congress on the possible use, and exploitation of technologies such as vapor detection devices, computed tomography,

nuclear quadropole resonance, thermal neutron analysis, pulsed

fast-neutron analysis, and other technologies upon which recommendations to the Congress may be made for further study,

funding, and use of the same in preventing and solving acts

of terrorism involving explosive devices.’’; and

(2) by adding at the end the following new subsection:

‘‘(f) SPECIAL STUDY.—

‘‘(1) IN GENERAL.—Notwithstanding subsection (a), the Secretary of the Treasury shall enter into a contract with the

National Academy of Sciences (referred to in this section as

the ‘Academy’) to conduct a study of the tagging of smokeless

and black powder by any viable technology for purposes of

detection and identification. The study shall be conducted by

an independent panel of 5 experts appointed by the Academy.

‘‘(2) STUDY ELEMENTS.—The study conducted under this

subsection shall—

‘‘(A) indicate whether the tracer elements, when added

to smokeless and black powder—

‘‘(i) will pose a risk to human life or safety;

‘‘(ii) will substantially assist law enforcement officers in their investigative efforts;

‘‘(iii) will impair the quality and performance of

the powders (which shall include a broad and comprehensive sampling of all available powders) for their

intended lawful use, including, but not limited to the

sporting, defense, and handloading uses of the powders,

as well as their use in display and lawful consumer

pyrotechnics;
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–22

‘‘(iv) will have a substantially adverse effect on

the environment;

‘‘(v) will incur costs which outweigh the benefits

of their inclusion, including an evaluation of the probable production and regulatory cost of compliance to

the industry, and the costs and effects on consumers,

including the effect on the demand for ammunition;

and

‘‘(vi) can be evaded, and with what degree of difficulty, by terrorists or terrorist organizations, including evading tracer elements by the use of precursor

chemicals to make black or other powders; and

‘‘(B) provide for consultation on the study with Federal,

State, and local officials, non-governmental organizations,

including all national police organizations, national sporting organizations, and national industry associations with

expertise in this area and such other individuals as shall

be deemed necessary.

‘‘(3) REPORT AND COSTS.—The study conducted under this

subsection shall be presented to Congress 12 months after

the enactment of this subsection and be made available to

the public, including any data tapes or data used to form

such recommendations. There are authorized to be appropriated

such sums as may be necessary to carry out the study.’’.

SEC. 114. (a) Section 524(c)(1) of title 28, United States Code,

is amended in the first sentence following the second subparagraph

(I) by deleting ‘‘(C),’’.

(b) Section 524 (c)(8)(A) is amended by deleting ‘‘(C),’’.

SEC. 115. Effective with the enactment of this Act and in

any fiscal year hereafter, under policies established by the Attorney

General, the Department of Justice may reimburse employees who

are paid by an appropriation account within the Department of

Justice and are traveling on behalf of the United States in temporary duty status to investigate, prosecute, or litigate (including

the provision of support therefor) a criminal or civil matter, or

for other similar special circumstances, for Federal, State, and

local taxes heretofore and hereafter resulting from any reimbursement of travel expenses from an appropriation account within the

Department of Justice: Provided, That such reimbursement may

include an amount equal to all income taxes for which the employee

would be liable due to such reimbursement.

SEC. 116. Section 524 of title 28, United States Code, is amended by adding a new subsection (d) as follows:

‘‘(d)(1) The Attorney General may accept, hold, administer,

and use gifts, devises, and bequests of any property for the purpose

of aiding or facilitating the work of the Department of Justice.

‘‘(2) Gifts, devises, and bequests of money, the proceeds of

sale or liquidation of any other property accepted hereunder, and

any income accruing from any property accepted hereunder—

‘‘(A) shall be deposited in the Treasury in a separate fund

and held in trust by the Secretary of the Treasury for the

benefit of the Department of Justice; and

‘‘(B) are hereby appropriated, without fiscal year limitation,

and shall be disbursed on order of the Attorney General.

‘‘(3) Upon request of the Attorney General, the Secretary of

the Treasury may invest and reinvest the fund described herein

in public debt securities with maturities suitable for the needs

28 USC 509 note.
110 STAT. 3009–23 PUBLIC LAW 104–208—SEPT. 30, 1996

of the fund and bearing interest at rates determined by the Secretary of the Treasury, taking into consideration the current average

market yield on outstanding marketable obligations of the United

States or comparable maturities.

‘‘(4) Evidences of any intangible personal property (other than

money) accepted hereunder shall be deposited with the Secretary

of the Treasury, who may hold or liquidate them, except that

they shall be liquidated upon the request of the Attorney General.

‘‘(5) For purposes of federal income, estate, and gift taxes,

property accepted hereunder shall be considered a gift, devise,

or bequest to, or for the use of, the United States.’’.

SEC. 117. Section 524(c)(9), of title 28, United States Code,

is amended to read as follows:

‘‘(9)(A) Following the completion of procedures for the forfeiture of property pursuant to any law enforced or administered by the Department, the Attorney General is authorized,

in her discretion, to warrant clear title to any subsequent

purchaser or transferee of such property.

‘‘(B) For fiscal year 1997, the Attorney General is authorized to transfer, under such terms and conditions as the Attorney General shall specify, real or personal property of limited

or marginal value, to a State or local government agency,

or its designated contractor or transferee, for use to support

drug abuse treatment, drug and crime prevention and education, housing, job skills, and other community-based public

health and safety programs. Such transfer shall not create

or confer any private right of action in any person against

the United States.’’.

SEC. 118. Section 594(b)(3)(A) of title 28, United States Code,

is amended in the second sentence by—

(a) striking ‘‘by 6 months’’ and inserting ‘‘for successive

6-month periods’’; and

(b) striking the phrase ‘‘employee assigned duties under

subsection (l)(1)(A)(iii) certifies’’ and inserting ‘‘independent

counsel and the division of the court certify’’;

(c) striking ‘‘such employee’’ and inserting ‘‘the independent

counsel’’ and ‘‘the division of the court’’.

SEC. 119. This section may be cited as the ‘‘Age Discrimination

in Employment Amendments of 1996’’.

Subsection 1. Age Discrimination Amendment.

(a) REPEAL OF REPEALER.—Section 3(b) of the Age Discrimination in Employment Amendments of 1986 (29 U.S.C. 623 note)

is repealed.

(b) EXEMPTION.—Section 4(j) of the Age Discrimination in

Employment Act of 1967 (29 U.S.C. 623(j)), as in effect immediately

before December 31, 1993—

(1) is reenacted as such section; and

(2) as so reenacted, is amended in paragraph (1) by striking

‘‘and the individual has attained the age’’ and all that follows

through ‘‘1983, and’’ and inserting the following: ‘‘, the employer

has complied with section 3(d)(2) of the Age Discrimination

in Employment Amendments of 1996 if the individual was

discharged after the date described in such section, and the

individual has attained—

Age

Discrimination in

Employment

Amendments of

1996.

29 USC 621 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–24

‘‘(A) the age of hiring or retirement, respectively, in

effect under applicable State or local law on March 3,

1983; or

‘‘(B)(i) if the individual was not hired, the age of hiring

in effect on the date of such failure or refusal to hire

under applicable State or local law enacted after the date

of enactment of the Age Discrimination in Employment

Amendments of 1996; or

‘‘(ii) if applicable State or local law was enacted after

the date of enactment of the Age Discrimination in Employment Amendments of 1996 and the individual was discharged, the higher of—

‘‘(I) the age of retirement in effect on the date

of such discharge under such law; and

‘‘(II) age 55; and’’.

(c) CONSTRUCTION.—Nothing in the repeal, reenactment, and

amendment made by subsections (a) and (b) shall be construed

to make lawful the failure or refusal to hire, or the discharge

of, an individual pursuant to a law that—

(1) was enacted after March 3, 1983 and before the date

of enactment of the Age Discrimination in Employment Amendments of 1996; and

(2) lowered the age of hiring or retirement, respectively,

for firefighters or law enforcement officers that was in effect

under applicable State or local law on March 3, 1983.

Subsection 2. Study and Guidelines for Performance Tests.

(a) STUDY.—Not later than 3 years after the date of enactment

of this Act, the Secretary of Health and Human Services, acting

through the Director of the National Institute for Occupational

Safety and Health (referred to in this section as the ‘‘Secretary’’),

shall conduct, directly or by contract, a study, and shall submit

to the appropriate committees of Congress a report based on the

results of the study that shall include—

(1) a list and description of all tests available for the

assessment of abilities important for the completion of public

safety tasks performed by law enforcement officers and firefighters;

(2) a list of the public safety tasks for which adequate

tests described in paragraph (1) do not exist;

(3) a description of the technical characteristics that the

tests shall meet to be in compliance with applicable Federal

civil rights law and policies;

(4) a description of the alternative methods that are available for determining minimally acceptable performance standards on the tests;

(5) a description of the administrative standards that

should be met in the administration, scoring, and score

interpretation of the tests; and

(6) an examination of the extent to which the tests are

cost-effective, are safe, and comply with the Federal civil rights

law and policies.

(b) CONSULTATION REQUIREMENT; OPPORTUNITY FOR PUBLIC

COMMENT.—

(1) CONSULTATION.—The Secretary shall, during the conduct of the study required by subsection (a), consult with—

29 USC 623 note.

29 USC 623 note.
110 STAT. 3009–25 PUBLIC LAW 104–208—SEPT. 30, 1996

(A) the Deputy Administrator of the United States

Fire Administration;

(B) the Director of the Federal Emergency Management

Agency;

(C) organizations that represent law enforcement officers, firefighters, and employers of the officers and firefighters; and

(D) organizations that represent older individuals.

(2) PUBLIC COMMENT.—Prior to issuing the advisory guidelines required in subsection (c), the Secretary shall provide

an opportunity for public comment on the proposed advisory

guidelines.

(c) ADVISORY GUIDELINES.—Not later than 4 years after the

date of enactment of this Act, the Secretary shall develop and

issue, based on the results of the study required by subsection

(a), advisory guidelines for the administration and use of physical

and mental fitness tests to measure the ability and competency

of law enforcement officers and firefighters to perform the requirements of the jobs of the officers and firefighters.

(d) JOB PERFORMANCE TESTS.—

(1) IDENTIFICATION OF TESTS.—After issuance of the

advisory guidelines described in subsection (c), the Secretary

shall issue regulations identifying valid, nondiscriminatory job

performance tests that shall be used by employers seeking

the exemption described in section 4(j) of the Age Discrimination in Employment Act of 1967 with respect to firefighters

or law enforcement officers who have attained an age of retirement described in such section 4(j).

(2) USE OF TESTS.—Effective on the date of issuance of

the regulations described in paragraph (1), any employer seeking such exemption with respect to a firefighter or law enforcement officer who has attained such age shall provide to each

firefighter or law enforcement officer who has attained such

age an annual opportunity to demonstrate physical and mental

fitness by passing a test described in paragraph (1), in order

to continue employment.

(e) DEVELOPMENT OF STANDARDS FOR WELLNESS PROGRAMS.—

Not later than 2 years after the date of enactment of this Act,

the Secretary shall propose advisory standards for wellness programs for law enforcement officers and firefighters.

(f) AUTHORIZATION OF APPROPRIATIONS.—There is authorized

to be appropriated $5,000,000 to carry out this section.

Subsection 3. Effective Dates.

(a) GENERAL EFFECTIVE DATE.—Except as provided in subsection (b), this title and the amendments made by this title shall

take effect on the date of enactment of this Act.

(b) SPECIAL EFFECTIVE DATE.—The repeal made by section

2(a) and the reenactment made by section 2(b)(1) shall take effect

on December 31, 1993.

SEC. 120. Section 320935(e) of the Violent Crime Control and

Law Enforcement Act of 1994 is amended by inserting ‘‘, including

all trials commenced on or after the effective date of such amendments’’ after ‘‘such amendments’’.

29 USC 623 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–26

SEC. 121. This section may be cited as the ‘‘Child Pornography

Prevention Act of 1996’’.

Subsection 1. Findings.

Congress finds that—

(1) the use of children in the production of sexually explicit

material, including photographs, films, videos, computer

images, and other visual depictions, is a form of sexual abuse

which can result in physical or psychological harm, or both,

to the children involved;

(2) where children are used in its production, child pornography permanently records the victim’s abuse, and its continued

existence causes the child victims of sexual abuse continuing

harm by haunting those children in future years;

(3) child pornography is often used as part of a method

of seducing other children into sexual activity; a child who

is reluctant to engage in sexual activity with an adult, or

to pose for sexually explicit photographs, can sometimes be

convinced by viewing depictions of other children ‘‘having fun’’

participating in such activity;

(4) child pornography is often used by pedophiles and child

sexual abusers to stimulate and whet their own sexual

appetites, and as a model for sexual acting out with children;

such use of child pornography can desensitize the viewer to

the pathology of sexual abuse or exploitation of children, so

that it can become acceptable to and even preferred by the

viewer;

(5) new photographic and computer imagining technologies

make it possible to produce by electronic, mechanical, or other

means, visual depictions of what appear to be children engaging

in sexually explicit conduct that are virtually indistinguishable

to the unsuspecting viewer from unretouched photographic

images of actual children engaging in sexually explicit conduct;

(6) computers and computer imaging technology can be

used to—

(A) alter sexually explicit photographs, films, and videos in such a way as to make it virtually impossible for

unsuspecting viewers to identify individuals, or to determine if the offending material was produced using children;

(B) produce visual depictions of child sexual activity

designed to satisfy the preferences of individual child

molesters, pedophiles, and pornography collectors; and

(C) alter innocent pictures of children to create visual

depictions of those children engaging in sexual conduct;

(7) the creation or distribution of child pornography which

includes an image of a recognizable minor invades the child’s

privacy and reputational interests, since images that are created showing a child’s face or other identifiable feature on

a body engaging in sexually explicit conduct can haunt the

minor for years to come;

(8) the effect of visual depictions of child sexual activity

on a child molester or pedophile using that material to stimulate or whet his own sexual appetites, or on a child where

the material is being used as a means of seducing or breaking

down the child’s inhibitions to sexual abuse or exploitation,

18 USC 2251

note.

Child

Pornography

Prevention Act of

1996.

18 USC 2251

note.
110 STAT. 3009–27 PUBLIC LAW 104–208—SEPT. 30, 1996

is the same whether the child pornography consists of photographic depictions of actual children or visual depictions produced wholly or in part by electronic, mechanical, or other

means, including by computer, which are virtually indistinguishable to the unsuspecting viewer from photographic images

of actual children;

(9) the danger to children who are seduced and molested

with the aid of child sex pictures is just as great when the

child pornographer or child molester uses visual depictions

of child sexual activity produced wholly or in part by electronic,

mechanical, or other means, including by computer, as when

the material consists of unretouched photographic images of

actual children engaging in sexually explicit conduct;

(10)(A) the existence of and traffic in child pornographic

images creates the potential for many types of harm in the

community and presents a clear and present danger to all

children; and

(B) it inflames the desires of child molesters, pedophiles,

and child pornographers who prey on children, thereby increasing the creation and distribution of child pornography and

the sexual abuse and exploitation of actual children who are

victimized as a result of the existence and use of these materials;

(11)(A) the sexualization and eroticization of minors

through any form of child pornographic images has a deleterious

effect on all children by encouraging a societal perception of

children as sexual objects and leading to further sexual abuse

and exploitation of them; and

(B) this sexualization of minors creates an unwholesome

environment which affects the psychological, mental and emotional development of children and undermines the efforts of

parents and families to encourage the sound mental, moral

and emotional development of children;

(12) prohibiting the possession and viewing of child pornography will encourage the possessors of such material to rid

themselves of or destroy the material, thereby helping to protect

the victims of child pornography and to eliminate the market

for the sexual exploitative use of children; and

(13) the elimination of child pornography and the protection

of children from sexual exploitation provide a compelling

governmental interest for prohibiting the production, distribution, possession, sale, or viewing of visual depictions of children

engaging in sexually explicit conduct, including both photographic images of actual children engaging in such conduct

and depictions produced by computer or other means which

are virtually indistinguishable to the unsuspecting viewer from

photographic images of actual children engaging in such conduct.

Subsection 2. Definitions.

Section 2256 of title 18, United States Code, is amended—

(1) in paragraph (5), by inserting before the semicolon

the following: ‘‘, and data stored on computer disk or by electronic means which is capable of conversion into a visual

image’’;

(2) in paragraph (6), by striking ‘‘and’’;
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–28

(3) in paragraph (7), by striking the period and inserting

a semicolon; and

(4) by adding at the end the following new paragraphs:

‘‘(8) ‘child pornography’ means any visual depiction, including any photograph, film, video, picture, or computer or computer-generated image or picture, whether made or produced

by electronic, mechanical, or other means, of sexually explicit

conduct, where—

‘‘(A) the production of such visual depiction involves

the use of a minor engaging in sexually explicit conduct;

‘‘(B) such visual depiction is, or appears to be, of a

minor engaging in sexually explicit conduct;

‘‘(C) such visual depiction has been created, adapted,

or modified to appear that an identifiable minor is engaging

in sexually explicit conduct; or

‘‘(D) such visual depiction is advertised, promoted, presented, described, or distributed in such a manner that

conveys the impression that the material is or contains

a visual depiction of a minor engaging in sexually explicit

conduct; and

‘‘(9) ‘identifiable minor’—

‘‘(A) means a person—

‘‘(i)(I) who was a minor at the time the visual

depiction was created, adapted, or modified; or

‘‘(II) whose image as a minor was used in creating,

adapting, or modifying the visual depiction; and

‘‘(ii) who is recognizable as an actual person by

the person’s face, likeness, or other distinguishing characteristic, such as a unique birthmark or other recognizable feature; and

‘‘(B) shall not be construed to require proof of the

actual identity of the identifiable minor.’’.

Subsection 3. Prohibited Activities Relating to Material Constituting or Containing Child Pornography.

(a) IN GENERAL.—Chapter 110 of title 18, United States Code,

is amended by adding after section 2252 the following:

‘‘§ 2252A. Certain activities relating to material constituting

or containing child pornography

‘‘(a) Any person who—

‘‘(1) knowingly mails, or transports or ships in interstate

or foreign commerce by any means, including by computer,

any child pornography;

‘‘(2) knowingly receives or distributes—

‘‘(A) any child pornography that has been mailed, or

shipped or transported in interstate or foreign commerce

by any means, including by computer; or

‘‘(B) any material that contains child pornography that

has been mailed, or shipped or transported in interstate

or foreign commerce by any means, including by computer;

‘‘(3) knowingly reproduces any child pornography for distribution through the mails, or in interstate or foreign commerce by any means, including by computer;

‘‘(4) either—

‘‘(A) in the special maritime and territorial jurisdiction

of the United States, or on any land or building owned
110 STAT. 3009–29 PUBLIC LAW 104–208—SEPT. 30, 1996

by, leased to, or otherwise used by or under the control

of the United States Government, or in the Indian country

(as defined in section 1151), knowingly sells or possesses

with the intent to sell any child pornography; or

‘‘(B) knowingly sells or possesses with the intent to

sell any child pornography that has been mailed, or shipped

or transported in interstate or foreign commerce by any

means, including by computer, or that was produced using

materials that have been mailed, or shipped or transported

in interstate or foreign commerce by any means, including

by computer; or

‘‘(5) either—

‘‘(A) in the special maritime and territorial jurisdiction

of the United States, or on any land or building owned

by, leased to, or otherwise used by or under the control

of the United States Government, or in the Indian country

(as defined in section 1151), knowingly possesses any book,

magazine, periodical, film, videotape, computer disk, or

any other material that contains 3 or more images of

child pornography; or

‘‘(B) knowingly possesses any book, magazine, periodical, film, videotape, computer disk, or any other material

that contains 3 or more images of child pornography that

has been mailed, or shipped or transported in interstate

or foreign commerce by any means, including by computer,

or that was produced using materials that have been

mailed, or shipped or transported in interstate or foreign

commerce by any means, including by computer,

shall be punished as provided in subsection (b).

‘‘(b)(1) Whoever violates, or attempts or conspires to violate,

paragraphs (1), (2), (3), or (4) of subsection (a) shall be fined under

this title or imprisoned not more than 15 years, or both, but,

if such person has a prior conviction under this chapter or chapter

109A, or under the laws of any State relating to aggravated sexual

abuse, sexual abuse, or abusive sexual conduct involving a minor

or ward, or the production, possession, receipt, mailing, sale, distribution, shipment, or transportation of child pornography, such

person shall be fined under this title and imprisoned for not less

than 5 years nor more than 30 years.

‘‘(2) Whoever violates, or attempts or conspires to violate, subsection (a)(5) shall be fined under this title or imprisoned not

more than 5 years, or both, but, if such person has a prior conviction

under this chapter or chapter 109A, or under the laws of any

State relating to the possession of child pornography, such person

shall be fined under this title and imprisoned for not less than

2 years nor more than 10 years.

‘‘(c) It shall be an affirmative defense to a charge of violating

paragraphs (1), (2), (3), or (4) of subsection (a) that—

‘‘(1) the alleged child pornography was produced using an

actual person or persons engaging in sexually explicit conduct;

‘‘(2) each such person was an adult at the time the material

was produced; and

‘‘(3) the defendant did not advertise, promote, present,

describe, or distribute the material in such a manner as to

convey the impression that it is or contains a visual depiction

of a minor engaging in sexually explicit conduct.’’.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–30

(b) TECHNICAL AMENDMENT.—The table of sections for chapter

110 of title 18, United States Code, is amended by adding after

the item relating to section 2252 the following:

‘‘2252A. Certain activities relating to material constituting or containing

child pornography.’’.

Subsection 4. Penalties for Sexual Exploitation of Children.

Section 2251(d) of title 18, United States Code, is amended

to read as follows:

‘‘(d) Any individual who violates, or attempts or conspires to

violate, this section shall be fined under this title or imprisoned

not less than 10 years nor more than 20 years, and both, but

if such person has one prior conviction under this chapter or chapter

109A, or under the laws of any State relating to the sexual exploitation of children, such person shall be fined under this title and

imprisoned for not less than 15 years nor more than 30 years,

but if such person has 2 or more prior convictions under this

chapter or chapter 109A, or under the laws of any State relating

to the sexual exploitation of children, such person shall be fined

under this title and imprisoned not less than 30 years nor more

than life. Any organization that violates, or attempts or conspires

to violate, this section shall be fined under this title. Whoever,

in the course of an offense under this section, engages in conduct

that results in the death of a person, shall be punished by death

or imprisoned for any term of years or for life.’’.

Subsection 5. Material Involving Sexual Exploitation of

Minors.

Section 2252 of title 18, United States Code, is amended—

by striking subsection (b) and inserting the following:

‘‘(b)(1) Whoever violates, or attempts or conspires to violate,

paragraphs (1), (2), or (3) of subsection (a) shall be fined under

this title or imprisoned not more than 15 years, or both, but if

such person has a prior conviction under this chapter or chapter

109A, or under the laws of any State relating to aggravated sexual

abuse, sexual abuse, or abusive sexual conduct involving a minor

or ward, or the production, possession, receipt, mailing, sale, distribution, shipment, or transportation of child pornography, such

person shall be fined under this title and imprisoned for not less

than 5 years nor more than 30 years.

‘‘(2) Whoever violates, or attempts or conspires to violate, paragraph (4) of subsection (a) shall be fined under this title or imprisoned not more than 5 years, or both, but if such person has a

prior conviction under this chapter or chapter 109A, or under the

laws of any State relating to the possession of child pornography,

such person shall be fined under this title and imprisoned for

not less than 2 years nor more than 10 years.’’.

Subsection 6. Privacy Protection Act Amendments.

Section 101 of the Privacy Protection Act of 1980 (42 U.S.C.

2000aa) is amended—

(1) in subsection (a)(1), by inserting before the parenthesis

at the end the following: ‘‘, or if the offense involves the production, possession, receipt, mailing, sale, distribution, shipment,

or transportation of child pornography, the sexual exploitation

of children, or the sale or purchase of children under section
110 STAT. 3009–31 PUBLIC LAW 104–208—SEPT. 30, 1996

2251, 2251A, 2252, or 2252A of title 18, United States Code’’;

and

(2) in subsection (b)(1), by inserting before the parenthesis

at the end the following: ‘‘, or if the offense involves the production, possession, receipt, mailing, sale, distribution, shipment,

or transportation of child pornography, the sexual exploitation

of children, or the sale or purchase of children under section

2251, 2251A, 2252, or 2252A of title 18, United States Code’’.

Subsection 7. Amber Hagerman Child Protection Act of 1996.

(a) SHORT TITLE.—This section may be cited as the ‘‘Amber

Hagerman Child Protection Act of 1996’’.

(b) AGGRAVATED SEXUAL ABUSE OF A MINOR.—Section 2241(c)

of title 18, United States Code, is amended to read as follows:

‘‘(c) WITH CHILDREN.—Whoever crosses a State line with intent

to engage in a sexual act with a person who has not attained

the age of 12 years, or in the special maritime and territorial

jurisdiction of the United States or in a Federal prison, knowingly

engages in a sexual act with another person who has not attained

the age of 12 years, or knowingly engages in a sexual act under

the circumstances described in subsections (a) and (b) with another

person who has attained the age of 12 years but has not attained

the age of 16 years (and is at least 4 years younger than that

person), or attempts to do so, shall be fined under this title, imprisoned for any term of years or life, or both. If the defendant has

previously been convicted of another Federal offense under this

subsection, or of a State offense that would have been an offense

under either such provision had the offense occurred in a Federal

prison, unless the death penalty is imposed, the defendant shall

be sentenced to life in prison.’’.

(c) SEXUAL ABUSE OF A MINOR.—Section 2243(a) of title 18,

United States Code, is amended by inserting ‘‘crosses a State line

with intent to engage in a sexual act with a person who has

not attained the age of 12 years, or’’ after ‘‘Whoever’’.

Subsection 8. Severability.

If any provision of this Act, including any provision or section

of the definition of the term child pornography, an amendment

made by this Act, or the application of such provision or amendment

to any person or circumstance is held to be unconstitutional, the

remainder of this Act, including any other provision or section

of the definition of the term child pornography, the amendments

made by this Act, and the application of such to any other person

or circumstance shall not be affected thereby.

This title may be cited as the ‘‘Department of Justice Appropriations Act, 1997’’.

18 USC 2251

note.

Amber

Hagerman Child

Protection Act of

1996.

18 USC 2241

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–32

TITLE II—DEPARTMENT OF COMMERCE AND RELATED

AGENCIES

TRADE AND INFRASTRUCTURE DEVELOPMENT

RELATED AGENCIES

OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE

SALARIES AND EXPENSES

For necessary expenses of the Office of the United States Trade

Representative, including the hire of passenger motor vehicles and

the employment of experts and consultants as authorized by 5

U.S.C. 3109, $21,449,000, of which $2,500,000 shall remain available until expended: Provided, That not to exceed $98,000 shall

be available for official reception and representation expenses.

INTERNATIONAL TRADE COMMISSION

SALARIES AND EXPENSES

For necessary expenses of the International Trade Commission,

including hire of passenger motor vehicles, and services as authorized by 5 U.S.C. 3109, and not to exceed $2,500 for official reception

and representation expenses, $40,850,000, to remain available until

expended.

DEPARTMENT OF COMMERCE

INTERNATIONAL TRADE ADMINISTRATION

OPERATIONS AND ADMINISTRATION

For necessary expenses for international trade activities of

the Department of Commerce provided for by law, and engaging

in trade promotional activities abroad, including expenses of grants

and cooperative agreements for the purpose of promoting exports

of United States firms, without regard to 44 U.S.C. 3702 and

3703; full medical coverage for dependent members of immediate

families of employees stationed overseas and employees temporarily

posted overseas; travel and transportation of employees of the

United States and Foreign Commercial Service between two points

abroad, without regard to 49 U.S.C. 1517; employment of Americans

and aliens by contract for services; rental of space abroad for

periods not exceeding ten years, and expenses of alteration, repair,

or improvement; purchase or construction of temporary demountable exhibition structures for use abroad; payment of tort claims,

in the manner authorized in the first paragraph of 28 U.S.C. 2672

when such claims arise in foreign countries; not to exceed $327,000

for official representation expenses abroad; purchase of passenger

motor vehicles for official use abroad, not to exceed $30,000 per

vehicle; obtain insurance on official motor vehicles; and rent tie

lines and teletype equipment; $270,000,000, to remain available

until expended: Provided, That the provisions of the first sentence

of section 105(f) and all of section 108(c) of the Mutual Educational

and Cultural Exchange Act of 1961 (22 U.S.C. 2455(f) and 2458(c))

shall apply in carrying out these activities without regard to section

5412 of the Omnibus Trade and Competitiveness Act of 1988 (15

Department of

Commerce and

Related Agencies

Appropriations

Act, 1997.
110 STAT. 3009–33 PUBLIC LAW 104–208—SEPT. 30, 1996

U.S.C. 4912); and that for the purpose of this Act, contributions

under the provisions of the Mutual Educational and Cultural

Exchange Act shall include payment for assessments for services

provided as part of these activities.

EXPORT ADMINISTRATION

OPERATIONS AND ADMINISTRATION

For necessary expenses for export administration and national

security activities of the Department of Commerce, including costs

associated with the performance of export administration field

activities both domestically and abroad; full medical coverage for

dependent members of immediate families of employees stationed

overseas; employment of Americans and aliens by contract for services abroad; rental of space abroad for periods not exceeding ten

years, and expenses of alteration, repair, or improvement; payment

of tort claims, in the manner authorized in the first paragraph

of 28 U.S.C. 2672 when such claims arise in foreign countries;

not to exceed $15,000 for official representation expenses abroad;

awards of compensation to informers under the Export Administration Act of 1979, and as authorized by 22 U.S.C. 401(b); purchase

of passenger motor vehicles for official use and motor vehicles

for law enforcement use with special requirement vehicles eligible

for purchase without regard to any price limitation otherwise established by law; $36,000,000, to remain available until expended:

Provided, That the provisions of the first sentence of section 105(f)

and all of section 108(c) of the Mutual Educational and Cultural

Exchange Act of 1961 (22 U.S.C. 2455(f) and 2458(c)) shall apply

in carrying out these activities: Provided further, That payments

and contributions collected and accepted for materials or services

provided as part of such activities may be retained for use in

covering the cost of such activities, and for providing information

to the public with respect to the export administration and national

security activities of the Department of Commerce and other export

control programs of the United States and other governments.

For an additional amount for nonproliferation efforts to prevent

illegal exports of chemical weapon precursors, biological agents,

nuclear weapons and missile development equipment, $3,900,000,

to remain available until expended: Provided, That the entire

amount is designated by Congress as an emergency requirement

pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and

Emergency Deficit Control Act of 1985, as amended.

ECONOMIC DEVELOPMENT ADMINISTRATION

ECONOMIC DEVELOPMENT ASSISTANCE PROGRAMS

For grants for economic development assistance as provided

by the Public Works and Economic Development Act of 1965, as

amended, Public Law 91–304, and such laws that were in effect

immediately before September 30, 1982, and for trade adjustment

assistance, $328,500,000: Provided, That none of the funds appropriated or otherwise made available under this heading may be

used directly or indirectly for attorneys’ or consultants’ fees in

connection with securing grants and contracts made by the Economic Development Administration: Provided further, That, notwithstanding any other provision of law, the Secretary of Commerce
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–34

may provide financial assistance for projects to be located on military installations closed or scheduled for closure or realignment

to grantees eligible for assistance under the Public Works and

Economic Development Act of 1965, as amended, without it being

required that the grantee have title or ability to obtain a lease

for the property, for the useful life of the project, when in the

opinion of the Secretary of Commerce, such financial assistance

is necessary for the economic development of the area: Provided

further, That the Secretary of Commerce may, as the Secretary

considers appropriate, consult with the Secretary of Defense regarding the title to land on military installations closed or scheduled

for closure or realignment.

SALARIES AND EXPENSES

For necessary expenses of administering the economic development assistance programs as provided for by law, $20,036,000:

Provided, That these funds may be used to monitor projects

approved pursuant to title I of the Public Works Employment

Act of 1976, as amended, title II of the Trade Act of 1974, as

amended, and the Community Emergency Drought Relief Act of

1977.

MINORITY BUSINESS DEVELOPMENT AGENCY

MINORITY BUSINESS DEVELOPMENT

For necessary expenses of the Department of Commerce in

fostering, promoting, and developing minority business enterprise,

including expenses of grants, contracts, and other agreements with

public or private organizations, $28,000,000: Provided, That of the

total amount provided, $2,000,000 shall be available for obligation

and expenditure only for projects jointly developed, implemented

and administered with the Small Business Administration.

ECONOMIC AND INFORMATION INFRASTRUCTURE

ECONOMIC AND STATISTICAL ANALYSIS

SALARIES AND EXPENSES

For necessary expenses, as authorized by law, of economic

and statistical analysis programs of the Department of Commerce,

$45,900,000, to remain available until September 30, 1998.

ECONOMICS AND STATISTICS ADMINISTRATION REVOLVING FUND

The Secretary of Commerce is authorized to disseminate economic and statistical data products as authorized by sections 1,

2, and 4 of Public Law 91–412 (15 U.S.C. 1525–1527) and, notwithstanding section 5412 of the Omnibus Trade and Competitiveness

Act of 1988 (15 U.S.C. 4912), charge fees necessary to recover

the full costs incurred in their production. Notwithstanding 31

U.S.C. 3302, receipts received from these data dissemination activities shall be credited to this account, to be available for carrying

out these purposes without further appropriation.

15 USC 1527a

note.
110 STAT. 3009–35 PUBLIC LAW 104–208—SEPT. 30, 1996

BUREAU OF THE CENSUS

SALARIES AND EXPENSES

For expenses necessary for collecting, compiling, analyzing,

preparing, and publishing statistics, provided for by law,

$135,000,000.

PERIODIC CENSUSES AND PROGRAMS

For expenses necessary to collect and publish statistics for

periodic censuses and programs provided for by law, $210,500,000,

to remain available until expended.

NATIONAL TELECOMMUNICATIONS AND INFORMATION

ADMINISTRATION

SALARIES AND EXPENSES

For necessary expenses, as provided for by law, of the National

Telecommunications and Information Administration (NTIA),

$15,000,000, to remain available until expended: Provided, That

notwithstanding 31 U.S.C. 1535(d), the Secretary of Commerce shall

charge Federal agencies for costs incurred in spectrum management,

analysis, and operations, and related services and such fees shall

be retained and used as offsetting collections for costs of such

spectrum services, to remain available until expended: Provided

further, That hereafter, notwithstanding any other provision of law,

NTIA shall not authorize spectrum use or provide any spectrum

functions pursuant to the NTIA Organization Act, 47 U.S.C. §§ 902–

903, to any Federal entity without reimbursement as required by

NTIA for such spectrum management costs, and Federal entities

withholding payment of such cost shall not use spectrum: Provided

further, That the Secretary of Commerce is authorized to retain

and use as offsetting collections all funds transferred, or previously

transferred, from other Government agencies for all costs incurred

in telecommunications research, engineering, and related activities

by the Institute for Telecommunication Sciences of the NTIA, in

furtherance of its assigned functions under this paragraph, and

such funds received from other Government agencies shall remain

available until expended.

PUBLIC BROADCASTING FACILITIES, PLANNING AND CONSTRUCTION

For grants authorized by section 392 of the Communications Act of 1934, as amended, $15,250,000, to remain available until

expended as authorized by section 391 of the Act, as amended:

Provided, That not to exceed $1,500,000 shall be available for

program administration as authorized by section 391 of the Act:

Provided further, That notwithstanding the provisions of section

391 of the Act, the prior year unobligated balances may be made

available for grants for projects for which applications have been

submitted and approved during any fiscal year.

INFORMATION INFRASTRUCTURE GRANTS

For grants authorized by section 392 of the Communications

Act of 1934, as amended, $21,490,000, to remain available until

expended as authorized by section 391 of the Act, as amended:

47 USC 903 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–36

Provided, That not to exceed $3,000,000 shall be available for

program administration and other support activities as authorized

by section 391: Provided further, That of the funds appropriated

herein, not to exceed 5 percent may be available for telecommunications research activities for projects related directly to the development of a national information infrastructure: Provided further,

That notwithstanding the requirements of section 392(a) and 392(c)

of the Act, these funds may be used for the planning and construction of telecommunications networks for the provision of educational, cultural, health care, public information, public safety,

or other social services.

PATENT AND TRADEMARK OFFICE

SALARIES AND EXPENSES

For necessary expenses of the Patent and Trademark Office

provided for by law, including defense of suits instituted against

the Commissioner of Patents and Trademarks, $61,252,000, to

remain available until expended: Provided, That the funds made

available under this heading are to be derived from deposits in

the Patent and Trademark Office Fee Surcharge Fund as authorized

by law: Provided further, That the amounts made available under

the Fund shall not exceed amounts deposited; and such fees as

shall be collected pursuant to 15 U.S.C. 1113 and 35 U.S.C. 41

and 376, shall remain available until expended.

TECHNOLOGY ADMINISTRATION

UNDER SECRETARY FOR TECHNOLOGY/OFFICE OF TECHNOLOGY POLICY

SALARIES AND EXPENSES

For necessary expenses for the Under Secretary for Technology/ Office of Technology Policy, $9,500,000: Provided, That $2,500,000

of the total amount provided under this heading shall be available

to support the United States-Israel Science and Technology Commission.

SCIENCE AND TECHNOLOGY

NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY

SCIENTIFIC AND TECHNICAL RESEARCH AND SERVICES

For necessary expenses of the National Institute of Standards

and Technology, $268,000,000, to remain available until expended,

of which not to exceed $1,625,000 may be transferred to the ‘‘Working Capital Fund’’.

INDUSTRIAL TECHNOLOGY SERVICES

For necessary expenses of the Manufacturing Extension Partnership of the National Institute of Standards and Technology,

$95,000,000, to remain available until expended, of which not to

exceed $300,000 may be transferred to the ‘‘Working Capital Fund’’:

Provided, That notwithstanding the time limitations imposed by

15 U.S.C. 278k(c) (1) and (5) on the duration of Federal financial

assistance that may be awarded by the Secretary of Commerce

15 USC 278k

note.
110 STAT. 3009–37 PUBLIC LAW 104–208—SEPT. 30, 1996

to Regional Centers for the transfer of Manufacturing Technology

(‘‘Centers’’), such Federal financial assistance for a Center may

continue beyond six years and may be renewed for additional periods, not to exceed one year, at a rate not to exceed one-third

of the Center’s total annual costs, subject before any such renewal

to a positive evaluation of the Center and to a finding by the

Secretary of Commerce that continuation of Federal funding to

the Center is in the best interest of the Regional Centers for

the transfer of Manufacturing Technology Program.

In addition, for necessary expenses of the Advanced Technology

Program of the National Institute of Standards and Technology,

$225,000,000, to remain available until expended, of which not

to exceed $500,000 may be transferred to the ‘‘Working Capital

Fund.’’

NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION

OPERATIONS, RESEARCH, AND FACILITIES

(INCLUDING TRANSFER OF FUNDS)

For necessary expenses of activities authorized by law for the

National Oceanic and Atmospheric Administration, including

acquisition, maintenance, operation, and hire of aircraft; not to

exceed 299 commissioned officers on the active list as of September

30, 1997; grants, contracts, or other payments to nonprofit organizations for the purposes of conducting activities pursuant to cooperative agreements; and alteration, modernization, and relocation of

facilities as authorized by 33 U.S.C. 883i; $1,854,067,000, to remain

available until expended: Provided, That notwithstanding 31 U.S.C.

3302 but consistent with other existing law, fees shall be assessed,

collected, and credited to this appropriation as offsetting collections

to be available until expended, to recover the costs of administering

aeronautical charting programs: Provided further, That the sum

herein appropriated from the general fund shall be reduced as

such additional fees are received during fiscal year 1997, so as

to result in a final general fund appropriation estimated at not

more than $1,851,067,000: Provided further, That any such additional fees received in excess of $3,000,000 in fiscal year 1997

shall not be available for obligation until October 1, 1997: Provided

further, That fees and donations received by the National Ocean

Service for the management of the national marine sanctuaries

may be retained and used for the salaries and expenses associated

with those activities, notwithstanding 31 U.S.C. 3302: Provided

further, That in addition, $66,000,000 shall be derived by transfer

from the fund entitled ‘‘Promote and Develop Fishery Products

and Research Pertaining to American Fisheries’’: Provided further,

That grants to States pursuant to sections 306 and 306A of the

Coastal Zone Management Act of 1972, as amended, shall not

exceed $2,000,000: Provided further, That not later than November

15, 1996, the Department of Commerce, in conjunction with the

National Oceanic and Atmospheric Administration, shall submit

to the appropriate committees of the Congress, a long-term plan

and a legislative proposal necessary to implement such plan regarding the continuation of a National Oceanic and Atmospheric

Administration commissioned corps.

33 USC 851.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–38

COASTAL ZONE MANAGEMENT FUND

Of amounts collected pursuant to section 308 of the Coastal

Zone Management Act of 1972 (16 U.S.C. 1456a), not to exceed

$7,800,000, for purposes set forth in sections 308(b)(2)(A),

308(b)(2)(B)(v), and 315(e) of such Act.

CONSTRUCTION

For repair and modification of, and additions to, existing facilities and construction of new facilities, and for facility planning

and design and land acquisition not otherwise provided for the

National Oceanic and Atmospheric Administration, $58,250,000,

to remain available until expended, of which $8,500,000 shall be

available only for a grant to the University of New Hampshire

for construction and related expenses for an environmental technology facility.

FLEET MODERNIZATION, SHIPBUILDING AND CONVERSION

For expenses necessary for the repair, acquisition, leasing, or

conversion of vessels, including related equipment to maintain and

modernize the existing fleet and to continue planning the modernization of the fleet, for the National Oceanic and Atmospheric

Administration, $8,000,000, to remain available until expended.

FISHING VESSEL AND GEAR DAMAGE COMPENSATION FUND

For carrying out the provisions of section 3 of Public Law

95–376, not to exceed $200,000, to be derived from receipts collected

pursuant to subsections (b) and (f) of section 10 of the Fishermen’s

Protective Act of 1967 (22 U.S.C. 1980), to remain available until

expended.

FISHERMEN’S CONTINGENCY FUND

For carrying out the provisions of title IV of Public Law 95– 372, not to exceed $1,000,000, to be derived from receipts collected

pursuant to that Act, to remain available until expended.

FOREIGN FISHING OBSERVER FUND

For expenses necessary to carry out the provisions of the Atlantic Tunas Convention Act of 1975, as amended (Public Law 96–

339), the Magnuson Fishery Conservation and Management Act

of 1976, as amended (Public Law 100–627), and the American

Fisheries Promotion Act (Public Law 96–561), to be derived from

the fees imposed under the foreign fishery observer program authorized by these Acts, not to exceed $196,000, to remain available

until expended.

FISHING VESSEL OBLIGATIONS GUARANTEES

For the cost of guaranteed loans, $250,000, as authorized by

the Merchant Marine Act of 1936, as amended: Provided, That

such costs, including the cost of modifying such loans, shall be

as defined in section 502 of the Congressional Budget Act of 1974:

Provided further, That none of the funds made available under

this heading may be used to guarantee loans for any new fishing
110 STAT. 3009–39 PUBLIC LAW 104–208—SEPT. 30, 1996

vessel that will increase the harvesting capacity in any United

States fishery.

GENERAL ADMINISTRATION

SALARIES AND EXPENSES

For expenses necessary for the general administration of the

Department of Commerce provided for by law, including not to

exceed $3,000 for official entertainment, $28,490,000.

OFFICE OF INSPECTOR GENERAL

For necessary expenses of the Office of Inspector General in

carrying out the provisions of the Inspector General Act of 1978,

as amended (5 U.S.C. App. 1–11 as amended by Public Law 100–

504), $20,140,000.

NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY

CONSTRUCTION OF RESEARCH FACILITIES

(RESCISSION)

Of the obligated and unobligated balances available under this

heading, $16,000,000 are rescinded.

NATIONAL OCEANIC AND ATMOSPHERIC ADMINISTRATION

OPERATIONS, RESEARCH, AND FACILITIES

(RESCISSION)

Of the unobligated balances available under this heading, $20,000,000 are rescinded.

GENERAL PROVISIONS—DEPARTMENT OF COMMERCE

SEC. 201. During the current fiscal year, applicable appropriations and funds made available to the Department of Commerce

by this Act shall be available for the activities specified in the

Act of October 26, 1949 (15 U.S.C. 1514), to the extent and in

the manner prescribed by the Act, and, notwithstanding 31 U.S.C.

3324, may be used for advanced payments not otherwise authorized

only upon the certification of officials designated by the Secretary

that such payments are in the public interest.

SEC. 202. During the current fiscal year, appropriations made

available to the Department of Commerce by this Act for salaries

and expenses shall be available for hire of passenger motor vehicles

as authorized by 31 U.S.C. 1343 and 1344; services as authorized

by 5 U.S.C. 3109; and uniforms or allowances therefor, as authorized

by law (5 U.S.C. 5901–5902).

SEC. 203. None of the funds made available by this Act may

be used to support the hurricane reconnaissance aircraft and activities that are under the control of the United States Air Force

or the United States Air Force Reserve.

SEC. 204. None of the funds provided in this or any previous

Act, or hereinafter made available to the Department of Commerce,

shall be available to reimburse the Unemployment Trust Fund

or any other fund or account of the Treasury to pay for any expenses

13 USC 23 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–40

paid before October 1, 1992, as authorized by section 8501 of title

5, United States Code, for services performed after April 20, 1990,

by individuals appointed to temporary positions within the Bureau

of the Census for purposes relating to the 1990 decennial census

of population.

SEC. 205. Not to exceed 5 percent of any appropriation made

available for the current fiscal year for the Department of Commerce

in this Act may be transferred between such appropriations, but

no such appropriation shall be increased by more than 10 percent

by any such transfers: Provided, That any transfer pursuant to

this section shall be treated as a reprogramming of funds under

section 605 of this Act and shall not be available for obligation

or expenditure except in compliance with the procedures set forth

in that section.

SEC. 206. (a) Should legislation be enacted to dismantle or

reorganize the Department of Commerce, the Secretary of Commerce, no later than 90 days thereafter, shall submit to the Committees on Appropriations of the House and the Senate a plan for

transferring funds provided in this Act to the appropriate successor

organizations: Provided, That the plan shall include a proposal

for transferring or rescinding funds appropriated herein for agencies

or programs terminated under such legislation: Provided further,

That such plan shall be transmitted in accordance with section

605 of this Act.

(b) The Secretary of Commerce or the appropriate head of

any successor organization(s) may use any available funds to carry

out legislation dismantling or reorganizing the Department of Commerce to cover the costs of actions relating to the abolishment,

reorganization, or transfer of functions and any related personnel

action, including voluntary separation incentives if authorized by

such legislation: Provided, That the authority to transfer funds

between appropriations accounts that may be necessary to carry

out this section is provided in addition to authorities included

under section 205 of this Act: Provided further, That use of funds

to carry out this section shall be treated as a reprogramming

of funds under section 605 of this Act and shall not be available

for obligation or expenditure except in compliance with the procedures set forth in that section.

SEC. 207. Any costs incurred by a Department or agency funded

under this title resulting from personnel actions taken in response

to funding reductions included in this title shall be absorbed within

the total budgetary resources available to such Department or

agency: Provided, That the authority to transfer funds between

appropriations accounts as may be necessary to carry out this

section is provided in addition to authorities included elsewhere

in this Act: Provided further, That use of funds to carry out this

section shall be treated as a reprogramming of funds under section

605 of this Act and shall not be available for obligation or expenditure except in compliance with the procedures set forth in that

section.

SEC. 208. None of the funds appropriated under this Act or

any other Act henceforth may be used to develop new fishery

management plans, amendments, or regulations which create new

individual fishing quota programs (whether such quotas are

transferable or not) or to implement any such plans, amendments

or regulations approved by a Regional Fishery Management Council

or the Secretary after January 4, 1995, until offsetting fees to

16 USC 1851

note.
110 STAT. 3009–41 PUBLIC LAW 104–208—SEPT. 30, 1996

pay for the cost of administering such plans, amendments, or regulations are expressly authorized under the Magnuson Fishery Conservation and Management Act (16 U.S.C. 1801 et seq.). This restriction shall also apply to any program relating to the Gulf of Mexico

commercial red snapper fishery that authorizes the consolidation

of licenses, permits or endorsements that result in different trip

limits for vessels in the same class. This restriction shall not apply

in any way to the North Pacific halibut and sablefish, South Atlantic

wreckfish, or the Mid-Atlantic surfclam and ocean (including mahogany) quohog individual fishing quota programs. The term ‘‘individual fishing quota’’ does not include a community development quota.

SEC. 209. The Secretary may award contracts for hydrographic,

geodetic, and photogrammetric surveying and mapping services in

accordance with title IX of the Federal Property and Administrative

Services Act of 1949 (40 U.S.C. 541 et seq.).

SEC. 210. There is hereby established the Bureau of the Census

Working Capital Fund, which shall be available without fiscal year

limitation, for expenses and equipment necessary for the maintenance and operation of such services and projects as the Director

of the Census Bureau determines may be performed more advantageously when centralized: Provided, That such central services

shall, to the fullest extent practicable, be used to make unnecessary

the maintenance of separate like services in the divisions and

offices of the Bureau: Provided further, That a separate schedule

of expenditures and reimbursements, and a statement of the current

assets and liabilities of the Working Capital Fund as of the close

of the last completed fiscal year, shall be prepared each year:

Provided further, That notwithstanding 31 U.S.C. 3302, the Working

Capital Fund may be credited with advances and reimbursements

from applicable appropriations of the Bureau and from funds of

other agencies or entities for services furnished pursuant to law:

Provided further, That any inventories, equipment, and other assets

pertaining to the services to be provided by such funds, either

on hand or on order, less the related liabilities or unpaid obligations,

and any appropriations made hereafter for the purpose of providing

capital, shall be used to capitalize the Working Capital Fund:

Provided further, That the Working Capital Fund shall provide

for centralized services at rates which will return in full all expenses

of operation, including depreciation of fund plant and equipment,

amortization of automated data processing software and hardware

systems, and an amount necessary to maintain a reasonable operating reserve as determined by the Director.

SEC. 211. (a) Effective 15 days after the enactment of the

Sustainable Fisheries Act, section 1 of the Magnuson Fishery Conservation and Management Act (16 U.S.C. 1801) shall be amended

to read as follows: ‘‘That this Act may be cited as the ‘MagnusonStevens Fishery Conservation and Management Act’.’’

(b) Effective 15 days after the enactment of the Sustainable

Fisheries Act, all references to the Magnuson Fishery Conservation

and Management Act shall be redesignated as references to the

Magnuson-Stevens Fishery Conservation and Management Act.

This title may be cited as the ‘‘Department of Commerce and

Related Agencies Appropriations Act, 1997’’.

16 USC 1801

note.

16 USC 1801

note.

13 USC 11 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–42

TITLE III—THE JUDICIARY

SUPREME COURT OF THE UNITED STATES

SALARIES AND EXPENSES

For expenses necessary for the operation of the Supreme Court,

as required by law, excluding care of the building and grounds,

including purchase or hire, driving, maintenance, and operation

of an automobile for the Chief Justice, not to exceed $10,000 for

the purpose of transporting Associate Justices, and hire of passenger

motor vehicles as authorized by 31 U.S.C. 1343 and 1344; not

to exceed $10,000 for official reception and representation expenses;

and for miscellaneous expenses, to be expended as the Chief Justice

may approve; $27,157,000.

CARE OF THE BUILDING AND GROUNDS

For such expenditures as may be necessary to enable the

Architect of the Capitol to carry out the duties imposed upon

him by the Act approved May 7, 1934 (40 U.S.C. 13a–13b),

$2,800,000, of which $260,000 shall remain available until

expended.

UNITED STATES COURT OF APPEALS FOR THE FEDERAL CIRCUIT

SALARIES AND EXPENSES

For salaries of the chief judge, judges, and other officers and

employees, and for necessary expenses of the court, as authorized

by law, $15,013,000.

UNITED STATES COURT OF INTERNATIONAL TRADE

SALARIES AND EXPENSES

For salaries of the chief judge and eight judges, salaries of

the officers and employees of the court, services as authorized

by 5 U.S.C. 3109, and necessary expenses of the court, as authorized

by law, $11,114,000.

COURTS OF APPEALS, DISTRICT COURTS, AND OTHER JUDICIAL

SERVICES

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF FUNDS)

For the salaries of circuit and district judges (including judges

of the territorial courts of the United States), justices and judges

retired from office or from regular active service, judges of the

United States Court of Federal Claims, bankruptcy judges, magistrate judges, and all other officers and employees of the Federal

Judiciary not otherwise specifically provided for, and necessary

expenses of the courts, as authorized by law, $2,556,000,000 (including the purchase of firearms and ammunition); of which not to

exceed $13,454,000 shall remain available until expended for space

alteration projects; of which $500,000 shall be transferred to the

Commission on Structural Alternatives for the Federal Courts of

The Judiciary

Appropriations

Act, 1997.
110 STAT. 3009–43 PUBLIC LAW 104–208—SEPT. 30, 1996

Appeals only after legislation is enacted to establish the Commission; of which not to exceed $10,000,000 shall remain available

until expended for furniture and furnishings related to new space

alteration and construction projects; and of which $500,000 is to

remain available until expended for acquisition of books, periodicals,

and newspapers, and all other legal reference materials, including

subscriptions.

In addition, for expenses of the United States Court of Federal

Claims associated with processing cases under the National Childhood Vaccine Injury Act of 1986, not to exceed $2,390,000, to be

appropriated from the Vaccine Injury Compensation Trust Fund.

For an additional amount for expenses relating to additional

workload from the Antiterrorism and Effective Death Penalty Act

of 1996, and for Court Security needs, $10,000,000, to remain available until expended: Provided, That the entire amount is designated

by Congress as an emergency requirement pursuant to section

251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That the amount

not previously designated by the President as an emergency requirement shall be available only to the extent an official budget request,

for a specific dollar amount that includes designation of the entire

amount of the request as an emergency requirement, as defined

in the Balanced Budget and Emergency Deficit Control Act of

1985, as amended, is transmitted to Congress.

VIOLENT CRIME REDUCTION PROGRAMS

For activities of the Federal Judiciary as authorized by law,

$30,000,000, to remain available until expended, which shall be

derived from the Violent Crime Reduction Trust Fund, as authorized

by section 190001(a) of Public Law 103–322.

DEFENDER SERVICES

For the operation of Federal Public Defender and Community

Defender organizations; the compensation and reimbursement of

expenses of attorneys appointed to represent persons under the

Criminal Justice Act of 1964, as amended; the compensation and

reimbursement of expenses of persons furnishing investigative,

expert and other services under the Criminal Justice Act (18 U.S.C.

3006A(e)); the compensation (in accordance with Criminal Justice

Act maximums) and reimbursement of expenses of attorneys

appointed to assist the court in criminal cases where the defendant

has waived representation by counsel; the compensation and

reimbursement of travel expenses of guardians ad litem acting

on behalf of financially eligible minor or incompetent offenders

in connection with transfers from the United States to foreign

countries with which the United States has a treaty for the execution of penal sentences; and the compensation of attorneys apFEES OF JURORS AND COMMISSIONERS

For fees and expenses of jurors as authorized by 28 U.S.C.

1871 and 1876; compensation of jury commissioners as authorized

by 28 U.S.C. 1863; and compensation of commissioners appointed

in condemnation cases pursuant to rule 71A(h) of the Federal

Rules of Civil Procedure (28 U.S.C. Appendix Rule 71A(h));

$67,000,000, to remain available until expended: Provided, That
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–44

the compensation of land commissioners shall not exceed the daily

equivalent of the highest rate payable under section 5332 of title

5, United States Code.

COURT SECURITY

For necessary expenses, not otherwise provided for, incident

to the procurement, installation, and maintenance of security equipment and protective services for the United States Courts in courtrooms and adjacent areas, including building ingress-egress control,

inspection of packages, directed security patrols, and other similar

activities as authorized by section 1010 of the Judicial Improvement

and Access to Justice Act (Public Law 100–702); $127,000,000,

to be expended directly or transferred to the United States Marshals

Service which shall be responsible for administering elements of

the Judicial Security Program consistent with standards or guidelines agreed to by the Director of the Administrative Office of

the United States Courts and the Attorney General.

ADMINISTRATIVE OFFICE OF THE UNITED STATES COURTS

SALARIES AND EXPENSES

For necessary expenses of the Administrative Office of the

United States Courts as authorized by law, including travel as

authorized by 31 U.S.C. 1345, hire of a passenger motor vehicle

as authorized by 31 U.S.C. 1343(b), advertising and rent in the

District of Columbia and elsewhere, $49,450,000, of which not to

exceed $7,500 is authorized for official reception and representation

expenses.

FEDERAL JUDICIAL CENTER

SALARIES AND EXPENSES

For necessary expenses of the Federal Judicial Center, as authorized by Public Law 90–219, $17,495,000; of which $1,800,000

shall remain available through September 30, 1998, to provide

education and training to Federal court personnel; and of which

not to exceed $1,000 is authorized for official reception and representation expenses.

JUDICIAL RETIREMENT FUNDS

PAYMENT TO JUDICIARY TRUST FUNDS

For payment to the Judicial Officers’ Retirement Fund, as

authorized by 28 U.S.C. 377(o), $21,000,000, to the Judicial Survivors’ Annuities Fund, as authorized by 28 U.S.C. 376(c), $7,300,000,

and to the United States Court of Federal Claims Judges’ Retirement Fund, as authorized by 28 U.S.C. 178(l), $1,900,000.

UNITED STATES SENTENCING COMMISSION

SALARIES AND EXPENSES

For the salaries and expenses necessary to carry out the provi- sions of chapter 58 of title 28, United States Code, $8,490,000,

of which not to exceed $1,000 is authorized for official reception

and representation expenses.
110 STAT. 3009–45 PUBLIC LAW 104–208—SEPT. 30, 1996

GENERAL PROVISIONS—THE JUDICIARY

SEC. 301. Appropriations and authorizations made in this title

which are available for salaries and expenses shall be available

for services as authorized by 5 U.S.C. 3109.

SEC. 302. Appropriations made in this title shall be available

for salaries and expenses of the Special Court established under

the Regional Rail Reorganization Act of 1973, Public Law 93–

236.

SEC. 303. Not to exceed 5 percent of any appropriation made

available for the current fiscal year for the Judiciary in this Act

may be transferred between such appropriations, but no such appropriation, except ‘‘Courts of Appeals, District Courts, and other

Judicial Services, Defender Services’’ and ‘‘Courts of Appeals, District Courts, and other Judicial Services, Fees of Jurors and

Commissioners’’, shall be increased by more than 10 percent by

any such transfers: Provided, That any transfer pursuant to this

section shall be treated as a reprogramming of funds under section

605 of this Act and shall not be available for obligation or expenditure except in compliance with the procedures set forth in that

section.

SEC. 304. Notwithstanding any other provision of law, the

salaries and expenses appropriation for district courts, courts of

appeals, and other judicial services shall be available for official

reception and representation expenses of the Judicial Conference

of the United States: Provided, That such available funds shall

not exceed $10,000 and shall be administered by the Director of

the Administrative Office of the United States Courts in his capacity

as Secretary of the Judicial Conference.

SEC. 305. Section 612(l) of title 28, United States Code, shall

be amended as follows: strike ‘‘1997’’, and insert in lieu thereof

‘‘1998’’.

SEC. 306. None of the funds available to the Judiciary in

fiscal years 1996 and 1997 and hereafter shall be available for

expenses authorized pursuant to section 802(a) of title VIII of

section 101(a) of title I of the Omnibus Consolidated Rescissions

and Appropriations Act of 1996, Public Law 104–134, for costs

related to the appointment of Special Masters prior to April 26,

1996.

SEC. 307. The United States courthouse at 310 West Sixth

Street in Medford, Oregon, shall be known and designated as the

‘‘James A. Redden Federal Courthouse’’.

Any reference in a law, map, regulation, document, paper,

or other record of the United States to the United States courthouse

at 310 West Sixth Street in Medford, Oregon, shall be deemed

to be a reference to the ‘‘James A. Redden Federal Courthouse’’.

This title may be cited as ‘‘The Judiciary Appropriations Act,

1997’’.

18 USC 3626

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–46

TITLE IV—DEPARTMENT OF STATE AND RELATED

AGENCIES

DEPARTMENT OF STATE

ADMINISTRATION OF FOREIGN AFFAIRS

DIPLOMATIC AND CONSULAR PROGRAMS

For necessary expenses of the Department of State and the

Foreign Service not otherwise provided for, including expenses

authorized by the State Department Basic Authorities Act of 1956,

as amended; representation to certain international organizations

in which the United States participates pursuant to treaties, ratified

pursuant to the advice and consent of the Senate, or specific Acts

of Congress; acquisition by exchange or purchase of passenger motor

vehicles as authorized by 31 U.S.C. 1343, 40 U.S.C. 481(c) and

22 U.S.C. 2674; and for expenses of general administration;

$1,700,450,000: Provided, That notwithstanding section 140(a)(5),

and the second sentence of section 140(a)(3), of the Foreign Relations Authorization Act, Fiscal Years 1994 and 1995 (Public Law

103–236), not to exceed $150,000,000 of fees may be collected during

fiscal year 1997 under the authority of section 140(a)(1) of that

Act: Provided further, That all fees collected under the preceding

proviso shall be deposited in fiscal year 1997 as an offsetting

collection to appropriations made under this heading to recover

the costs of providing consular services and shall remain available

until expended: Provided further, That in fiscal year 1998, a system

shall be in place that allocates to each department and agency

the full cost of its presence outside of the United States. Of the funds provided under this heading, $24,856,000 shall

be available only for the Diplomatic Telecommunications Service

for operation of existing base services and not to exceed $17,230,000

shall be available only for the enhancement of the Diplomatic

Telecommunications Service and shall remain available until

expended. Of the latter amount, $2,500,000 shall not be made

available until expiration of the 15 day period beginning on the

date when the Secretary of State and the Director of the Diplomatic

Telecommunications Service submit the pilot program report

required by section 507 of Public Law 103–317. In addition, not to exceed $700,000 in registration fees collected

pursuant to section 38 of the Arms Export Control Act, as amended,

may be used in accordance with section 45 of the State Department

Basic Authorities Act of 1956 (22 U.S.C. 2717); and in addition

not to exceed $1,223,000 shall be derived from fees collected from

other executive agencies for lease or use of facilities located at

the International Center in accordance with section 4 of the International Center Act (Public Law 90–553), as amended; and in

addition, as authorized by section 5 of such Act $450,000, to be

derived from the reserve authorized by that section, to be used

for the purposes set out in that section; and in addition not to

exceed $15,000 which shall be derived from reimbursements, surcharges, and fees for use of Blair House facilities in accordance

with section 46 of the State of Department Basic Authorities Act

of 1956 (22 U.S.C. 2718(a)).

Notwithstanding section 402 of this Act, not to exceed 20 percent of the amounts made available in this Act in the appropriation

accounts ‘‘Diplomatic and Consular Programs’’ and ‘‘Salaries and

22 USC 2695b.

8 USC 1351 note.

Department of

State and

Related Agencies

Appropriations

Act, 1997.
110 STAT. 3009–47 PUBLIC LAW 104–208—SEPT. 30, 1996

Expenses’’ under the heading ‘‘Administration of Foreign Affairs’’

may be transferred between such appropriation accounts: Provided,

That any transfer pursuant to this sentence shall be treated as

a reprogramming of funds under section 605 of this Act and shall

not be available for obligation or expenditure except in compliance

with the procedures set forth in that section.

For an additional amount for counterterrorism requirements overseas, including security guards and equipment, $23,700,000,

to remain available until expended: Provided, That the entire

amount is designated by Congress as an emergency requirement

pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and

Emergency Deficit Control Act of 1985, as amended.

SALARIES AND EXPENSES

For expenses necessary for the general administration of the

Department of State and the Foreign Service, provided for by law,

including expenses authorized by section 9 of the Act of August

31, 1964, as amended (31 U.S.C. 3721), and the State Department

Basic Authorities Act of 1956, as amended, $352,300,000.

CAPITAL INVESTMENT FUND

For necessary expenses of the Capital Investment Fund,

$24,600,000, to remain available until expended, as authorized in

Public Law 103–236: Provided, That section 135(e) of Public Law

103–236 shall not apply to funds appropriated under this heading.

OFFICE OF INSPECTOR GENERAL

For necessary expenses of the Office of Inspector General in

carrying out the provisions of the Inspector General Act of 1978,

as amended (5 U.S.C. App.), $27,495,000, notwithstanding section

209(a)(1) of the Foreign Service Act of 1980, as amended (Public

Law 96–465), as it relates to post inspections: Provided, That notwithstanding any other provision of law, the merger of the Office

of Inspector General of the United States Information Agency with

the Office of Inspector General of the Department of State provided

for in the Departments of Commerce, Justice, and State, the

Judiciary and Related Agencies Appropriations Act, 1996, contained

in Public Law 104–134, is effective hereafter.

REPRESENTATION ALLOWANCES

For representation allowances as authorized by section 905

of the Foreign Service Act of 1980, as amended (22 U.S.C. 4085),

$4,490,000.

PROTECTION OF FOREIGN MISSIONS AND OFFICIALS

For expenses, not otherwise provided, to enable the Secretary

of State to provide for extraordinary protective services in accordance with the provisions of section 214 of the State Department

Basic Authorities Act of 1956 (22 U.S.C. 4314) and 3 U.S.C. 208,

$8,332,000, to remain available until September 30, 1998.

SECURITY AND MAINTENANCE OF UNITED STATES MISSIONS

For necessary expenses for carrying out the Foreign Service

Buildings Act of 1926, as amended (22 U.S.C. 292–300), and the

5 USC app.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–48

Diplomatic Security Construction Program as authorized by title

IV of the Omnibus Diplomatic Security and Antiterrorism Act of

1986 (22 U.S.C. 4851), $364,495,000, to remain available until

expended as authorized by section 24(c) of the State Department

Basic Authorities Act of 1956 (22 U.S.C. 2696(c)): Provided, That

none of the funds appropriated in this paragraph shall be available

for acquisition of furniture and furnishings and generators for other

departments and agencies.

For an additional amount for security improvements, necessary

relocation expenses, and security equipment for United States diplomatic facilities and missions overseas, $24,825,000, to remain available until expended: Provided, That of this amount $9,400,000

is for security projects on behalf of United States and Foreign

Commercial Service missions and $1,125,000 is for security projects

on behalf of United States Information Agency missions: Provided

further, That the entire amount is designated by Congress as an

emergency requirement pursuant to section 251(b)(2)(D)(i) of the

Balanced Budget and Emergency Deficit Control Act of 1985, as

amended: Provided further, That the amount not previously designated by the President as an emergency requirement shall be

available only to the extent an official budget request, for a specific

dollar amount that includes designation of the entire amount of

the request as an emergency requirement, as defined in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted to Congress.

EMERGENCIES IN THE DIPLOMATIC AND CONSULAR SERVICE

For expenses necessary to enable the Secretary of State to

meet unforeseen emergencies arising in the Diplomatic and Consular Service pursuant to the requirement of 31 U.S.C. 3526(e),

$5,800,000, to remain available until expended as authorized by

section 24(c) of the State Department Basic Authorities Act of

1956 (22 U.S.C. 2696(c)), of which not to exceed $1,000,000 may

be transferred to and merged with the Repatriation Loans Program

Account, subject to the same terms and conditions.

REPATRIATION LOANS PROGRAM ACCOUNT

For the cost of direct loans, $593,000, as authorized by section

4 of the State Department Basic Authorities Act of 1956 (22 U.S.C.

2671): Provided, That such costs, including the cost of modifying

such loans, shall be as defined in section 502 of the Congressional

Budget Act of 1974. In addition, for administrative expenses necessary to carry out the direct loan program, $663,000 which may

be transferred to and merged with the Salaries and Expenses

account under Administration of Foreign Affairs.

PAYMENT TO THE AMERICAN INSTITUTE IN TAIWAN

For necessary expenses to carry out the Taiwan Relations Act,

Public Law 96–8 (93 Stat. 14), $14,490,000.

PAYMENT TO THE FOREIGN SERVICE RETIREMENT AND DISABILITY

FUND

For payment to the Foreign Service Retirement and Disability

Fund, as authorized by law, $126,491,000.
110 STAT. 3009–49 PUBLIC LAW 104–208—SEPT. 30, 1996

INTERNATIONAL ORGANIZATIONS AND CONFERENCES

CONTRIBUTIONS TO INTERNATIONAL ORGANIZATIONS

For expenses, not otherwise provided for, necessary to meet

annual obligations of membership in international multilateral

organizations, pursuant to treaties ratified pursuant to the advice

and consent of the Senate, conventions or specific Acts of Congress,

$892,000,000: Provided, That any payment of arrearages shall be

directed toward special activities that are mutually agreed upon

by the United States and the respective international organization:

Provided further, That 20 percent of the funds appropriated in

this paragraph for the assessed contribution of the United States

to the United Nations shall be withheld from obligation and

expenditure until a certification is made under section 401(b) of

Public Law 103–236 for fiscal year 1997: Provided further, That

certification under section 401(b) of Public Law 103–236 for fiscal

year 1997 may only be made if the Committees on Appropriations

and Foreign Relations of the Senate and the Committees on Appropriations and International Relations of the House of Representatives are notified of the steps taken, and anticipated, to meet

the requirements of section 401(b) of Public Law 103–236 at least

15 days in advance of the proposed certification: Provided further,

That none of the funds appropriated in this paragraph shall be

available for a United States contribution to an international

organization for the United States share of interest costs made

known to the United States Government by such organization for

loans incurred on or after October 1, 1984, through external borrowings: Provided further, That of the funds appropriated in this paragraph, $100,000,000 may be made available only pursuant to a

certification by the Secretary of State by no later than January

30, 1997, that the United Nations has taken no action during

calendar year 1996 to increase funding for any United Nations

program without identifying an offsetting decrease elsewhere in

the United Nations budget and cause the United Nations to exceed

its no growth budget for the biennium 1996–1997 adopted in December, 1995: Provided further, That if the Secretary of State is unable to make the aforementioned certification, the $100,000,000 is to

be applied to paying the current year assessment for other international organizations for which the assessment has not been paid

in full or to paying the assessment due in the next fiscal year

for such organizations, subject to the reprogramming procedures

contained in Section 605 of this Act: Provided further, That notwithstanding section 402 of this Act, not to exceed $10,000,000 may

be transferred from the funds made available under this heading

to the ‘‘International Conferences and Contingencies’’ account for

assessed contributions to new or provisional international organizations or for travel expenses of official delegates to international

conferences: Provided further, That any transfer pursuant to this

paragraph shall be treated as a reprogramming of funds under

section 605 of this Act and shall not be available for obligation

or expenditure except in compliance with the procedures set forth

in that section.

CONTRIBUTIONS FOR INTERNATIONAL PEACEKEEPING ACTIVITIES

For necessary expenses to pay assessed and other expenses

of international peacekeeping activities directed to the maintenance

22 USC 269a

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–50

or restoration of international peace and security $352,400,000,

of which $50,000,000 is for payment of arrearages accumulated

in 1995, and which shall be available only upon certification by

the Secretary of State that at least two of the following have

been achieved: (1) savings of at least $100,000,000 will be achieved

in the biennial expenses of the following United Nations divisions

and activities—the United Nations Conference on Trade and Development, the Regional Economic Commissions, the Department of

Public Information, and the Department of Conference Services,

travel and overtime; (2) the number of professional and general

service staff employed by the United Nations Secretariat at the

conclusion of the 1996–1997 biennium will be at least ten percent

below the number of such positions on January 1, 1996; and (3)

the United Nations has adopted a budget outline for the 1998–

1999 biennium that is below $2,608,000,000; as part of a fiveyear program to achieve major cost-saving reforms in the United

Nations and specialized agencies: Provided, That none of the funds

made available under this Act shall be obligated or expended for

any new or expanded United Nations peacekeeping mission unless,

at least fifteen days in advance of voting for the new or expanded

mission in the United Nations Security Council (or in an emergency,

as far in advance as is practicable), (1) the Committees on Appropriations of the House of Representatives and the Senate and

other appropriate Committees of the Congress are notified of the

estimated cost and length of the mission, the vital national interest

that will be served, and the planned exit strategy; and (2) a reprogramming of funds pursuant to section 605 of this Act is submitted, and the procedures therein followed, setting forth the source

of funds that will be used to pay for the cost of the new or

expanded mission: Provided further, That funds shall be available

for peacekeeping expenses only upon a certification by the Secretary

of State to the appropriate committees of the Congress that American manufacturers and suppliers are being given opportunities

to provide equipment, services, and material for United Nations

peacekeeping activities equal to those being given to foreign manufacturers and suppliers.

INTERNATIONAL COMMISSIONS

For necessary expenses, not otherwise provided for, to meet

obligations of the United States arising under treaties, or specific

Acts of Congress, as follows:

INTERNATIONAL BOUNDARY AND WATER COMMISSION, UNITED STATES

AND MEXICO

For necessary expenses for the United States Section of the

International Boundary and Water Commission, United States and

Mexico, and to comply with laws applicable to the United States

Section, including not to exceed $6,000 for representation; as follows:

SALARIES AND EXPENSES

For salaries and expenses, not otherwise provided for,

$15,490,000.

22 USC 269a

note.
110 STAT. 3009–51 PUBLIC LAW 104–208—SEPT. 30, 1996

CONSTRUCTION

For detailed plan preparation and construction of authorized projects, $6,463,000, to remain available until expended, as authorized by section 24(c) of the State Department Basic Authorities

Act of 1956 (22 U.S.C. 2696(c)).

AMERICAN SECTIONS, INTERNATIONAL COMMISSIONS

For necessary expenses, not otherwise provided for the International Joint Commission and the International Boundary

Commission, United States and Canada, as authorized by treaties

between the United States and Canada or Great Britain, and for

the Border Environment Cooperation Commission as authorized

by Public Law 103–182; $5,490,000, of which not to exceed $9,000

shall be available for representation expenses incurred by the International Joint Commission.

INTERNATIONAL FISHERIES COMMISSIONS

For necessary expenses for international fisheries commissions,

not otherwise provided for, as authorized by law, $14,549,000: Provided, That the United States’ share of such expenses may be

advanced to the respective commissions, pursuant to 31 U.S.C.

3324.

OTHER

PAYMENT TO THE ASIA FOUNDATION

For a grant to the Asia Foundation, as authorized by section

501 of Public Law 101–246, $8,000,000, to remain available until

expended, as authorized by section 24(c) of the State Department

Basic Authorities Act of 1956 (22 U.S.C. 2696(c)).

RELATED AGENCIES

ARMS CONTROL AND DISARMAMENT AGENCY

ARMS CONTROL AND DISARMAMENT ACTIVITIES

For necessary expenses not otherwise provided, for arms control, nonproliferation, and disarmament activities, $41,500,000, of

which not to exceed $50,000 shall be for official reception and

representation expenses as authorized by the Act of September

26, 1961, as amended (22 U.S.C. 2551 et seq.).

UNITED STATES INFORMATION AGENCY

SALARIES AND EXPENSES

For expenses, not otherwise provided for, necessary to enable

the United States Information Agency, as authorized by the Mutual

Educational and Cultural Exchange Act of 1961, as amended (22

U.S.C. 2451 et seq.), the United States Information and Educational

Exchange Act of 1948, as amended (22 U.S.C. 1431 et seq.), and

Reorganization Plan No. 2 of 1977 (91 Stat. 1636), to carry out

international communication, educational and cultural activities;

and to carry out related activities authorized by law, including

employment, without regard to civil service and classification laws,
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–52

of persons on a temporary basis (not to exceed $700,000 of this

appropriation), as authorized by section 801 of such Act of 1948

(22 U.S.C. 1471), and entertainment, including official receptions,

within the United States, not to exceed $25,000 as authorized

by section 804(3) of such Act of 1948 (22 U.S.C. 1474(3));

$440,000,000: Provided, That not to exceed $1,400,000 may be used

for representation abroad as authorized by section 302 of such

Act of 1948 (22 U.S.C. 1452) and section 905 of the Foreign Service

Act of 1980 (22 U.S.C. 4085): Provided further, That not to exceed

$7,615,000, to remain available until expended, may be credited

to this appropriation from fees or other payments received from

or in connection with English teaching, library, motion pictures,

and publication programs as authorized by section 810 of such

Act of 1948 (22 U.S.C. 1475e) and, notwithstanding any other

law, fees from student advising and counseling: Provided further;

That not to exceed $1,100,000 to remain available until expended

may be used to carry out projects involving security construction

and related improvements for agency facilities not physically located

together with Department of State facilities abroad.

For an additional amount for necessary expenses relating to

security, $1,375,000: Provided, That the entire amount is designated

by Congress as an emergency requirement pursuant to section

251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, a amended.

TECHNOLOGY FUND

For expenses necessary to enable the United States Information

Agency to provide for the procurement of information technology

improvements, as authorized by the United States Information and

Educational Exchange Act of 1948, as amended (22 U.S.C. 1431

et seq.), the Mutual Educational and Cultural Exchange Act of

1961, as amended (22 U.S.C. 2451 et seq.), and Reorganization

Plan No. 2 of 1977 (91 Stat. 1636), $5,050,000, to remain available

until expended.

EDUCATIONAL AND CULTURAL EXCHANGE PROGRAMS

For expenses of educational and cultural exchange programs,

as authorized by the Mutual Educational and Cultural Exchange

Act of 1961, as amended (22 U.S.C. 2451 et seq.), and Reorganization Plan No. 2 of 1977 (91 Stat. 1636), $185,000,000, to remain

available until expended as authorized by section 105 of such Act

of 1961 (22 U.S.C. 2455).

EISENHOWER EXCHANGE FELLOWSHIP PROGRAM TRUST FUND

For necessary expenses of Eisenhower Exchange Fellowships,

Incorporated, as authorized by sections 4 and 5 of the Eisenhower

Exchange Fellowship Act of 1990 (20 U.S.C. 5204–5205), all interest

and earnings accruing to the Eisenhower Exchange Fellowship Program Trust Fund on or before September 30, 1997, to remain

available until expended: Provided, That none of the funds appropriated herein shall be used to pay any salary or other compensation, or to enter into any contract providing for the payment thereof,

in excess of the rate authorized by 5 U.S.C. 5376; or for purposes

which are not in accordance with OMB Circulars A–110 (Uniform

Administrative Requirements) and A–122 (Cost Principles for Non-
110 STAT. 3009–53 PUBLIC LAW 104–208—SEPT. 30, 1996

profit Organizations), including the restrictions on compensation

for personal services.

ISRAELI ARAB SCHOLARSHIP PROGRAM

For necessary expenses of the Israeli Arab Scholarship Program

as authorized by section 214 of the Foreign Relations Authorization

Act, Fiscal Years 1992 and 1993 (22 U.S.C. 2452), all interest

and earnings accruing to the Israeli Arab Scholarship Fund on

or before September 30, 1997, to remain available until expended.

INTERNATIONAL BROADCASTING OPERATIONS

For expenses necessary to enable the United States Information

Agency, as authorized by the United States Information and Educational Exchange Act of 1948, as amended, the United States

International Broadcasting Act of 1994, as amended, and Reorganization Plan No. 2 of 1977, to carry out international communication activities; $325,000,000, of which not to exceed $16,000 may

be used for official receptions within the United States as authorized

by section 804(3) of such Act of 1948 (22 U.S.C. 1474(3)), not

to exceed $35,000 may be used for representation abroad as authorized by section 302 of such Act of 1948 (22 U.S.C. 1452) and

section 905 of the Foreign Service Act of 1980 (22 U.S.C. 4085),

and not to exceed $39,000 may be used for official reception and

representation expenses of Radio Free Europe/Radio Liberty; and

in addition, not to exceed $250,000 from fees as authorized by

section 810 of such Act of 1948 (22 U.S.C. 1475e), to remain available until expended for carrying out authorized purposes; and in

addition, notwithstanding any other provision of law, not to exceed

$1,000,000 in monies received (including receipts from advertising,

if any) by or for the use of the United States Information Agency

from or in connection with broadcasting resources owned by or

on behalf of the Agency, to be available until expended for carrying

out authorized purposes.

BROADCASTING TO CUBA

For expenses necessary to enable the United States Information

Agency to carry out the Radio Broadcasting to Cuba Act, as amended, the Television Broadcasting to Cuba Act, and the International

Broadcasting Act of 1994, including the purchase, rent, construction,

and improvement of facilities for radio and television transmission

and reception, and purchase and installation of necessary equipment

for radio and television transmission and reception, $25,000,000,

to remain available until expended.

RADIO CONSTRUCTION

For the purchase, rent, construction, and improvement of facilities for radio transmission and reception, and purchase and installation of necessary equipment for radio and television transmission

and reception as authorized by section 801 of the United States

Information and Educational Exchange Act of 1948 (22 U.S.C. 1471),

$35,490,000, to remain available until expended, as authorized by

section 704(a) of such Act of 1948 (22 U.S.C. 1477b(a)).
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–54

EAST-WEST CENTER

To enable the Director of the United States Information Agency

to provide for carrying out the provisions of the Center for Cultural

and Technical Interchange Between East and West Act of 1960

(22 U.S.C. 2054–2057), by grant to the Center for Cultural and

Technical Interchange Between East and West in the State of

Hawaii, $10,000,000: Provided, That none of the funds appropriated

herein shall be used to pay any salary, or enter into any contract

providing for the payment thereof, in excess of the rate authorized

by 5 U.S.C. 5376.

NORTH/SOUTH CENTER

To enable the Director of the United States Information Agency

to provide for carrying out the provisions of the North/South Center

Act of 1991 (22 U.S.C. 2075), by grant to an educational institution

in Florida known as the North/South Center, $1,495,000, to remain

available until expended.

NATIONAL ENDOWMENT FOR DEMOCRACY

For grants made by the United States Information Agency

to the National Endowment for Democracy as authorized by the

National Endowment for Democracy Act, $30,000,000, to remain

available until expended.

GENERAL PROVISIONS—DEPARTMENT OF STATE AND RELATED

AGENCIES

SEC. 401. Funds appropriated under this title shall be available,

except as otherwise provided, for allowances and differentials as

authorized by subchapter 59 of 5 U.S.C.; for services as authorized

by 5 U.S.C. 3109; and hire of passenger transportation pursuant

to 31 U.S.C. 1343(b).

SEC. 402. Not to exceed 5 percent of any appropriation made

available for the current fiscal year for the Department of State

in this Act may be transferred between such appropriations, but

no such appropriation, except as otherwise specifically provided,

shall be increased by more than 10 percent by any such transfers:

Provided, That not to exceed 5 percent of any appropriation made

available for the current fiscal year for the United States Information Agency in this Act may be transferred between such appropriations, but no such appropriation, except as otherwise specifically

provided, shall be increased by more than 10 percent by any such

transfers: Provided further, That any transfer pursuant to this

section shall be treated as a reprogramming of funds under section

605 of this Act and shall not be available for obligation or expenditure except in compliance with the procedures set forth in that

section.

SEC. 403. Funds hereafter appropriated or otherwise made

available under this Act or any other Act may be expended for

compensation of the United States Commissioner of the International Boundary Commission, United States and Canada, only

for actual hours worked by such Commissioner.

SEC. 404. Funds appropriated by this Act for the United States

Information Agency, the Arms Control and Disarmament Agency,

22 USC 268c.
110 STAT. 3009–55 PUBLIC LAW 104–208—SEPT. 30, 1996

and the Department of State may be obligated and expended notwithstanding section 701 of the United States Information and

Educational Exchange Act of 1948 and section 313 of the Foreign

Relations Authorization Act, Fiscal Years 1994 and 1995, section

53 of the Arms Control and Disarmament Act, and section 15

of the State Department Basic Authorities Act of 1956.

SEC. 405. Any costs incurred by a Department or agency funded

under this title resulting from personnel actions taken in response

to funding reductions included in this title shall be absorbed within

the total budgetary resources available to such Department or

agency: Provided, That the authority to transfer funds between

appropriations accounts as may be necessary to carry out this

section is provided in addition to authorities included elsewhere

in this Act: Provided further, That use of funds to carry out this

section shall be treated as a reprogramming of funds under section

605 of this Act and shall not be available for obligation or expenditure except in compliance with the procedures set forth in that

section.

SEC. 406. Starting sixty days after enactment of this Act, none

of the funds made available by this Act may be made available

to support the activities of the Standing Consultative Commission

(SCC) unless the President provides to the Congress a report

containing a detailed analysis of whether the Memorandum of

Understanding on Succession and the Agreed Statement regarding

Demarcation agreed to by the Standing Consultative Commission

on June 24, 1996, which was reaffirmed by Secretary of State

Warren Christopher and Minister of Foreign Affairs Evgeny

Primakov on September 23, 1996, represent substantive changes

to the Anti-Ballistic Missile Treaty of 1972 and whether these

agreements will require the advice and consent of the Senate of

the United States.

SEC. 407. Section 1 of the Act of June 4, 1920 (41 Stat. 750;

22 U.S.C. 214) is amended by—

(1) inserting before the period at the end of the first sentence the following: ‘‘; except that the Secretary of State may

by regulation authorize State officials or the United States

Postal Service to collect and retain the execution fee for each

application for a passport accepted by such officials or by that

Service’’; and

(2) striking the second sentence.

This title may be cited as the ‘‘Department of State and Related

Agencies Appropriations Act, 1997’’.

TITLE V—RELATED AGENCIES

DEPARTMENT OF TRANSPORTATION

MARITIME ADMINISTRATION

OPERATING-DIFFERENTIAL SUBSIDIES

(LIQUIDATION OF CONTRACT AUTHORITY)

For the payment of obligations incurred for operating-differential subsidies, as authorized by the Merchant Marine Act, 1936,

as amended, $148,430,000, to remain available until expended.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–56

MARITIME SECURITY PROGRAM

For necessary expenses to maintain and preserve a U.S.-flag

merchant fleet to serve the national security needs of the United

States, $54,000,000, to remain available until expended: Provided,

That these funds will be available only upon enactment of an

authorization for this program.

OPERATIONS AND TRAINING

For necessary expenses of operations and training activities

authorized by law, $65,000,000: Provided, That reimbursements

may be made to this appropriation from receipts to the ‘‘Federal

Ship Financing Fund’’ for administrative expenses in support of

that program in addition to any amount heretofore appropriated.

MARITIME GUARANTEED LOAN (TITLE XI) PROGRAM ACCOUNT

For the cost of guaranteed loans, as authorized by the Merchant

Marine Act, 1936, $37,450,000, to remain available until expended:

Provided, That such costs, including the cost of modifying such

loans, shall be as defined in section 502 of the Congressional Budget

Act of 1974, as amended: Provided further, That these funds are

available to subsidize total loan principal, any part of which is

to be guaranteed, not to exceed $1,000,000,000.

In addition, for administrative expenses to carry out the

guaranteed loan program, not to exceed $3,450,000, which shall

be transferred to and merged with the appropriation for Operations

and Training.

ADMINISTRATIVE PROVISIONS—MARITIME ADMINISTRATION

Notwithstanding any other provision of this Act, the Maritime

Administration is authorized to furnish utilities and services and

make necessary repairs in connection with any lease, contract,

or occupancy involving Government property under control of the

Maritime Administration, and payments received therefor shall be

credited to the appropriation charged with the cost thereof: Provided, That rental payments under any such lease, contract, or

occupancy for items other than such utilities, services, or repairs

shall be covered into the Treasury as miscellaneous receipts.

No obligations shall be incurred during the current fiscal year

from the construction fund established by the Merchant Marine

Act, 1936, or otherwise, in excess of the appropriations and limitations contained in this Act or in any prior appropriation Act, and

all receipts which otherwise would be deposited to the credit of

said fund shall be covered into the Treasury as miscellaneous

receipts.

COMMISSION FOR THE PRESERVATION OF AMERICA’S HERITAGE

ABROAD

SALARIES AND EXPENSES

For expenses for the Commission for the Preservation of America’s Heritage Abroad, $206,000, as authorized by Public Law 99–

83, section 1303.
110 STAT. 3009–57 PUBLIC LAW 104–208—SEPT. 30, 1996

COMMISSION ON CIVIL RIGHTS

SALARIES AND EXPENSES

For necessary expenses of the Commission on Civil Rights, including hire of passenger motor vehicles, $8,740,000: Provided, That not to exceed $50,000 may be used to employ consultants:

Provided further, That none of the funds appropriated in this paragraph shall be used to employ in excess of four full-time individuals

under Schedule C of the Excepted Service exclusive of one special

assistant for each Commissioner: Provided further, That none of

the funds appropriated in this paragraph shall be used to reimburse

Commissioners for more than 75 billable days, with the exception

of the Chairperson who is permitted 125 billable days.

COMMISSION ON IMMIGRATION REFORM

SALARIES AND EXPENSES

For necessary expenses of the Commission on Immigration

Reform pursuant to section 141(f) of the Immigration Act of 1990,

$2,196,000, to remain available until expended.

COMMISSION ON SECURITY AND COOPERATION IN EUROPE

SALARIES AND EXPENSES

For necessary expenses of the Commission on Security and

Cooperation in Europe, as authorized by Public Law 94–304,

$1,090,000, to remain available until expended as authorized by

section 3 of Public Law 99–7.

EQUAL EMPLOYMENT OPPORTUNITY COMMISSION

SALARIES AND EXPENSES

For necessary expenses of the Equal Employment Opportunity

Commission as authorized by title VII of the Civil Rights Act

of 1964, as amended (29 U.S.C. 206(d) and 621–634), the Americans

with Disabilities Act of 1990, and the Civil Rights Act of 1991,

including services as authorized by 5 U.S.C. 3109; hire of passenger

motor vehicles as authorized by 31 U.S.C. 1343(b); non-monetary

awards to private citizens; not to exceed $27,500,000, for payments

to State and local enforcement agencies for services to the Commission pursuant to title VII of the Civil Rights Act of 1964, as

amended, sections 6 and 14 of the Age Discrimination in Employment Act, the Americans with Disabilities Act of 1990, and the

Civil Rights Act of 1991; $239,740,000: Provided, That the Commission is authorized to make available for official reception and representation expenses not to exceed $2,500 from available funds.

FEDERAL COMMUNICATIONS COMMISSION

SALARIES AND EXPENSES

For necessary expenses of the Federal Communications

Commission, as authorized by law, including uniforms and allowances therefor, as authorized by 5 U.S.C. 5901–02; not to exceed

$600,000 for land and structure; not to exceed $500,000 for improvement and care of grounds and repair to buildings; not to exceed
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–58

$4,000 for official reception and representation expenses; purchase

(not to exceed sixteen) and hire of motor vehicles; special counsel

fees; and services as authorized by 5 U.S.C. 3109; $189,079,000,

of which not to exceed $300,000 shall remain available until September 30, 1998, for research and policy studies: Provided, That

$152,523,000 of offsetting collections shall be assessed and collected

pursuant to section 9 of title I of the Communications Act of

1934, as amended, and shall be retained and used for necessary

expenses in this appropriation, and shall remain available until

expended: Provided further, That the sum herein appropriated shall

be reduced as such offsetting collections are received during fiscal

year 1997 so as to result in a final fiscal year 1997 appropriation

estimated at $36,556,000: Provided further, That any offsetting

collections received in excess of $152,523,000 in fiscal year 1997

shall remain available until expended, but shall not be available

for obligation until October 1, 1997.

FEDERAL MARITIME COMMISSION

SALARIES AND EXPENSES

For necessary expenses of the Federal Maritime Commission

as authorized by section 201(d) of the Merchant Marine Act of

1936, as amended (46 App. U.S.C. 1111), including services as

authorized by 5 U.S.C. 3109; hire of passenger motor vehicles

as authorized by 31 U.S.C. 1343(b); and uniforms or allowances

therefor, as authorized by 5 U.S.C. 5901–02; $14,000,000: Provided,

That not to exceed $2,000 shall be available for official reception

and representation expenses.

FEDERAL TRADE COMMISSION

SALARIES AND EXPENSES

For necessary expenses of the Federal Trade Commission,

including uniforms or allowances therefor, as authorized by 5 U.S.C.

5901–5902; services as authorized by 5 U.S.C. 3109; hire of passenger motor vehicles; and not to exceed $2,000 for official reception

and representation expenses; $85,930,000:Provided, That not to

exceed $300,000 shall be available for use to contract with a person

or persons for collection services in accordance with the terms

of 31 U.S.C. 3718, as amended: Provided further, That notwithstanding any other provision of law, not to exceed $58,905,000 of offsetting collections derived from fees collected for premerger notification

filings under the Hart-Scott-Rodino Antitrust Improvements Act

of 1976 (15 U.S.C. 18(a)) shall be retained and used for necessary

expenses in this appropriation, and shall remain available until

expended: Provided further, That the sum herein appropriated from

the General Fund shall be reduced as such offsetting collections

are received during fiscal year 1997, so as to result in a final

fiscal year 1997 appropriation from the General Fund estimated

at not more than $27,025,000, to remain available until expended:

Provided further, That any fees received in excess of $58,905,000

in fiscal year 1997 shall remain available until expended, but shall

not be available for obligation until October 1, 1997: Provided

further, That none of the funds made available to the Federal

Trade Commission shall be available for obligation for expenses
110 STAT. 3009–59 PUBLIC LAW 104–208—SEPT. 30, 1996

authorized by section 151 of the Federal Deposit Insurance Corporation Improvement Act of 1991 (Public Law 102–242, 105 Stat.

2282–2285).

GAMBLING IMPACT STUDY COMMISSION

SALARIES AND EXPENSES

For necessary expenses of the National Gambling Impact Study Commission, $4,000,000 to remain available until expended: Provided, That these funds will be available only upon enactment

of an authorization for this Commission.

LEGAL SERVICES CORPORATION

PAYMENT TO THE LEGAL SERVICES CORPORATION

For payment to the Legal Services Corporation to carry out

the purposes of the Legal Services Corporation Act of 1974, as

amended, $283,000,000, of which $274,400,000 is for basic field

programs and required independent audits; $1,500,000 is for the

Office of Inspector General, of which such amounts as may be

necessary may be used to conduct additional audits of recipients;

and $7,100,000 is for management and administration.

ADMINISTRATIVE PROVISIONS—LEGAL SERVICES CORPORATION

SEC. 501. (a) CONTINUATION OF COMPETITIVE SELECTION PROC- ESS.—None of the funds appropriated in this Act to the Legal

Services Corporation may be used to provide financial assistance

to any person or entity except through a competitive selection

process conducted in accordance with regulations promulgated by

the Corporation in accordance with the criteria set forth in subsections (c), (d), and (e) of section 503 of Public Law 104–134

(110 Stat. 1321–52 et seq.).

(b) INAPPLICABILITY OF NONCOMPETITIVE PROCEDURES.—For

purposes of the funding provided in this Act, rights under sections

1007(a)(9) and 1011 of the Legal Services Corporation Act (42

U.S.C. 2996f(a)(9) and 42 U.S.C. 2996j) shall not apply.

SEC. 502. (a) CONTINUATION OF REQUIREMENTS AND RESTRIC- TIONS.—None of the funds appropriated in this Act to the Legal

Services Corporation shall be expended for any purpose prohibited

or limited by, or contrary to any of the provisions of—

(1) sections 501, 502, 505, 506, and 507 of Public Law

104–134 (110 Stat. 1321–51 et seq.), and all funds appropriated

in this Act to the Legal Services Corporation shall be subject

to the same terms and conditions as set forth in such sections,

except that all references in such sections to 1995 and 1996

shall be deemed to refer instead to 1996 and 1997, respectively;

and

(2) section 504 of Public Law 104–134 (110 Stat. 1321–

53 et seq.), and all funds appropriated in this Act to the

Legal Services Corporation shall be subject to the same terms

and conditions set forth in such section, except that—

(A) subsection (c) of such section 504 shall not apply;

(B) paragraph (3) of section 508(b) of Public Law 104–

134 (110 Stat. 1321–58) shall apply with respect to the

requirements of subsection (a)(13) of such section 504,

except that all references in such section 508(b) to the
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–60

date of enactment shall be deemed to refer to April 26,

1996; and

(C) subsection (a)(11) of such section 504 shall not

be construed to prohibit a recipient from using funds

derived from a source other than the Corporation to provide

related legal assistance to—

(i) an alien who has been battered or subjected

to extreme cruelty in the United States by a spouse

or a parent, or by a member of the spouse’s or parent’s

family residing in the same household as the alien

and the spouse or parent consented or acquiesced to

such battery or cruelty; or

(ii) an alien whose child has been battered or subjected to extreme cruelty in the United States by a

spouse or parent of the alien (without the active participation of the alien in the battery or extreme cruelty),

or by a member of the spouse’s or parent’s family

residing in the same household as the alien and the

spouse or parent consented or acquiesced to such battery or cruelty, and the alien did not actively participate in such battery or cruelty.

(b) DEFINITIONS.—For purposes of subsection (a)(2)(C):

(1) The term ‘‘battered or subjected to extreme cruelty’’

has the meaning given such term under regulations issued

pursuant to subtitle G of the Violence Against Women Act

of 1994 (Pub. L. 103–322; 108 Stat. 1953).

(2) The term ‘‘related legal assistance’’ means legal assistance directly related to the prevention of, or obtaining of relief

from, the battery or cruelty described in such subsection.

SEC. 503. (a) CONTINUATION OF AUDIT REQUIREMENTS.—The

requirements of section 509 of Public Law 104–134 (110 Stat. 1321–

58 et seq.), other than subsection (l) of such section, shall apply

during fiscal year 1997.

(b) REQUIREMENT OF ANNUAL AUDIT.—An annual audit of each

person or entity receiving financial assistance from the Legal Services Corporation under this Act shall be conducted during fiscal

year 1997 in accordance with the requirements referred to in subsection (a).

MARINE MAMMAL COMMISSION

SALARIES AND EXPENSES

For necessary expenses of the Marine Mammal Commission

as authorized by title II of Public Law 92–522, as amended,

$1,189,000.

NATIONAL BANKRUPTCY REVIEW COMMISSION

SALARIES AND EXPENSES

For necessary expenses of the National Bankruptcy Review

Commission, as authorized by the Bankruptcy Reform Act of 1994,

$494,000.
110 STAT. 3009–61 PUBLIC LAW 104–208—SEPT. 30, 1996

OUNCE OF PREVENTION COUNCIL

For activities authorized by sections 30101 and 30102 of Public Law 103–322 (including administrative costs), $1,500,000, to remain

available until expended, for the Ounce of Prevention Grant Program: Provided, That the Council may accept and use gifts and

donations, both real and personal, for the purpose of aiding or

facilitating the authorized activities of the Council, of which not

to exceed $5,000 may be used for official reception and representation expenses.

SECURITIES AND EXCHANGE COMMISSION

SALARIES AND EXPENSES

For necessary expenses for the Securities and Exchange

Commission, including services as authorized by 5 U.S.C. 3109,

the rental of space (to include multiple year leases) in the District

of Columbia and elsewhere, and not to exceed $3,000 for official

reception and representation expenses, $260,400,000, of which not

to exceed $10,000 may be used toward funding a permanent secretariat for the International Organization of Securities Commissions, and of which not to exceed $100,000 shall be available for

expenses for consultations and meetings hosted by the Commission

with foreign governmental and other regulatory officials, members

of their delegations, appropriate representatives and staff to

exchange views concerning developments relating to securities matters, development and implementation of cooperation agreements

concerning securities matters and provision of technical assistance

for the development of foreign securities markets, such expenses

to include necessary logistic and administrative expenses and the

expenses of Commission staff and foreign invitees in attendance

at such consultations and meetings including (1) such incidental

expenses as meals taken in the course of such attendance, (2)

any travel and transportation to or from such meetings, and (3)

any other related lodging or subsistance: Provided, That immediately upon enactment of this Act, the rate of fees under section

6(b) of the Securities Act of 1933 (15 U.S.C. 77f(b)) shall increase

from one-fiftieth of one percentum to one-thirty-third of one

percentum, and such increase shall be deposited as an offsetting

collection to this appropriation, to remain available until expended,

to recover costs of services of the securities registration process:

Provided further, That effective January 1, 1997, every national

securities association shall pay to the Commission a fee at a rate

of one-three-hundredth of one percentum of the aggregate dollar

amount of sales transacted by or through any member of such

association otherwise than on a national securities exchange (other

than bonds, debentures, and other evidences of indebtedness) subject to prompt last sale reporting pursuant to the rules of the

Commission or a registered national securities association, excluding any sales for which a fee is paid under section 31 of the

Securities Exchange Act of 1934 (15 U.S.C. 78ee), and such increase

shall be deposited as an offsetting collection to this appropriation,

to remain available until expended, to recover the costs to the

Government of the supervision and regulation of securities markets

and securities professionals: Provided further, That the fee due

from every national securities association shall be paid on or before

September 30, 1997, with respect to transactions and sales occurring

15 USC 78ee

note.

15 USC 77f note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–62

during the period beginning on January 1, 1997, and ending at

the close of August 31, 1997: Provided further, That the total

amount appropriated for fiscal year 1997 under this heading shall

be reduced as all such offsetting fees are deposited to this appropriation so as to result in a final total fiscal year 1997 appropriation

from the General Fund estimated at not more than $37,778,000:

Provided further, That any such fees collected in excess of

$222,622,000 shall remain available until expended but shall not

be available for obligation until October 1, 1997.

SMALL BUSINESS ADMINISTRATION

SALARIES AND EXPENSES

For necessary expenses, not otherwise provided for, of the Small

Business Administration as authorized by Public Law 103–403,

including hire of passenger motor vehicles as authorized by 31

U.S.C. 1343 and 1344, and not to exceed $3,500 for official reception

and representation expenses, $223,547,000, of which $1,000,000

shall only be available for obligation and expenditure for projects

jointly developed, implemented and administered with the Minority

Business Development Agency of the Department of Commerce:

Provided, That the Administrator is authorized to charge fees to

cover the cost of publications developed by the Small Business

Administration, and certain loan servicing activities: Provided further, That notwithstanding 31 U.S.C. 3302, revenues received from

all such activities shall be credited to this account, to be available

for carrying out these purposes without further appropriations:

Provided further, That $75,500,000 shall be available to fund grants

for performance in fiscal year 1997 or fiscal year 1998 as authorized

by section 21 of the Small Business Act, as amended. In addition,

for expenses not otherwise provided for, of the Small Business

Administration, $11,500,000, of which: $3,000,000 shall be available

for a grant to continue the WVHTC Foundation outreach program

to assist small business development; $7,000,000 shall be available

for a grant to the Center for Rural Development in Somerset,

Kentucky, for small business and rural technology development

assistance; $1,000,000 shall be available for a grant to Indiana

State University for the renovation and equipping of a training

facility, to assist in creating small business and economic development opportunities; and $500,000 shall be available for a continuation grant to the Center for Entrepreneurial Opportunity in

Greensburg, Pennsylvania, to provide for small business consulting

and assistance.

OFFICE OF INSPECTOR GENERAL

For necessary expenses of the Office of Inspector General in

carrying out the provisions of the Inspector General Act of 1978,

as amended (5 U.S.C. App. 1–11, as amended by Public Law 100–

504), $9,000,000.

BUSINESS LOANS PROGRAM ACCOUNT

For the cost of direct loans, $1,691,000, and for the cost of

guaranteed loans, $182,017,000, as authorized by 15 U.S.C. 631

note, of which $2,317,000, to be available until expended, shall

be for the Microloan Guarantee Program, and of which $40,510,000
110 STAT. 3009–63 PUBLIC LAW 104–208—SEPT. 30, 1996

shall remain available until September 30, 1998: Provided, That

such costs, including the cost of modifying such loans, shall be

as defined in section 502 of the Congressional Budget Act of 1974:

Provided further, That during fiscal year 1997, commitments to

guarantee loans under section 503 of the Small Business Investment

Act of 1958, as amended, shall not exceed the amount of financings

authorized under section 20(n)(2)(B) of the Small Business Act,

as amended.

In addition, for administrative expenses to carry out the direct

and guaranteed loan programs, $94,000,000, which may be transferred to and merged with the appropriations for Salaries and

Expenses.

DISASTER LOANS PROGRAM ACCOUNT

For the cost of direct loans authorized by section 7(b) of the

Small Business Act, as amended, $105,432,000, to remain available

until expended: Provided, That such costs, including the cost of

modifying such loans, shall be as defined in section 502 of the

Congressional Budget Act of 1974.

In addition, for administrative expenses to carry out the direct

loan program, $86,500,000, including not to exceed $500,000 for

the Office of Inspector General of the Small Business Administration for audits and reviews of disaster loans and the disaster loan

program, and said sums may be transferred to and merged with

appropriations for Salaries and Expenses and Office of Inspector

General.

SURETY BOND GUARANTEES REVOLVING FUND

For additional capital for the ‘‘Surety Bond Guarantees Revolving Fund’’, authorized by the Small Business Investment Act, as

amended, $3,730,000, to remain available without fiscal year limitation as authorized by 15 U.S.C. 631 note.

ADMINISTRATIVE PROVISION—SMALL BUSINESS ADMINISTRATION

SEC. 504. Not to exceed 5 percent of any appropriation made

available for the current fiscal year for the Small Business Administration in this Act may be transferred between such appropriations,

but no such appropriation shall be increased by more than 10

percent by any such transfers: Provided, That any transfer pursuant

to this section shall be treated as a reprogramming of funds under

section 605 of this Act and shall not be available for obligation

or expenditure except in compliance with the procedures set forth

in that section.

STATE JUSTICE INSTITUTE

SALARIES AND EXPENSES

For necessary expenses of the State Justice Institute, as authorized by the State Justice Institute Authorization Act of 1992 (Public

Law 102–572 (106 Stat. 4515–4516)), $6,000,000, to remain available until expended: Provided, That not to exceed $2,500 shall

be available for official reception and representation expenses.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–64

TITLE VI—GENERAL PROVISIONS

SEC. 601. No part of any appropriation contained in this Act

shall be used for publicity or propaganda purposes not authorized

by the Congress.

SEC. 602. No part of any appropriation contained in this Act

shall remain available for obligation beyond the current fiscal year

unless expressly so provided herein.

SEC. 603. The expenditure of any appropriation under this

Act for any consulting service through procurement contract, pursuant to 5 U.S.C. 3109, shall be limited to those contracts where

such expenditures are a matter of public record and available

for public inspection, except where otherwise provided under existing law, or under existing Executive order issued pursuant to existing law.

SEC. 604. If any provision of this Act or the application of

such provision to any person or circumstances shall be held invalid,

the remainder of the Act and the application of each provision

to persons or circumstances other than those as to which it is

held invalid shall not be affected thereby.

SEC. 605. (a) None of the funds provided under this Act, or

provided under previous appropriations Acts to the agencies funded

by this Act that remain available for obligation or expenditure

in fiscal year 1997, or provided from any accounts in the Treasury

of the United States derived by the collection of fees available

to the agencies funded by this Act, shall be available for obligation

or expenditure through a reprogramming of funds which (1) creates

new programs; (2) eliminates a program, project, or activity; (3)

increases funds or personnel by any means for any project or

activity for which funds have been denied or restricted; (4) relocates

an office or employees; (5) reorganizes offices, programs, or activities; or (6) contracts out or privatizes any functions, or activities

presently performed by Federal employees; unless the Appropriations Committees of both Houses of Congress are notified fifteen

days in advance of such reprogramming of funds.

(b) None of the funds provided under this Act, or provided

under previous appropriations Acts to the agencies funded by this

Act that remain available for obligation or expenditure in fiscal

year 1997, or provided from any accounts in the Treasury of the

United States derived by the collection of fees available to the

agencies funded by this Act, shall be available for obligation or

expenditure for activities, programs, or projects through a reprogramming of funds in excess of $500,000 or 10 percent, whichever is less, that (1) augments existing programs, projects, or activities; (2) reduces by 10 percent funding for any existing program,

project, or activity, or numbers of personnel by 10 percent as

approved by Congress; or (3) results from any general savings

from a reduction in personnel which would result in a change

in existing programs, activities, or projects as approved by Congress;

unless the Appropriations Committees of both Houses of Congress

are notified fifteen days in advance of such reprogramming of

funds.

SEC. 606. None of the funds made available in this Act may

be used for the construction, repair (other than emergency repair),

overhaul, conversion, or modernization of vessels for the National

Oceanic and Atmospheric Administration in shipyards located outside of the United States.
110 STAT. 3009–65 PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 607. (a) PURCHASE OF AMERICAN-MADE EQUIPMENT AND

PRODUCTS.—It is the sense of the Congress that, to the greatest

extent practicable, all equipment and products purchased with

funds made available in this Act should be American-made.

(b) NOTICE REQUIREMENT.—In providing financial assistance

to, or entering into any contract with, any entity using funds

made available in this Act, the head of each Federal agency, to

the greatest extent practicable, shall provide to such entity a notice

describing the statement made in subsection (a) by the Congress.

(c) PROHIBITION OF CONTRACTS WITH PERSONS FALSELY LABELING PRODUCTS AS MADE IN AMERICA.—If it has been finally determined by a court or Federal agency that any person intentionally

affixed a label bearing a ‘‘Made in America’’ inscription, or any

inscription with the same meaning, to any product sold in or shipped

to the United States that is not made in the United States, the

person shall be ineligible to receive any contract or subcontract

made with funds made available in this Act, pursuant to the debarment, suspension, and ineligibility procedures described in sections

9.400 through 9.409 of title 48, Code of Federal Regulations.

SEC. 608. None of the funds made available in this Act may

be used to implement, administer, or enforce any guidelines of

the Equal Employment Opportunity Commission covering harassment based on religion, when it is made known to the Federal

entity or official to which such funds are made available that

such guidelines do not differ in any respect from the proposed

guidelines published by the Commission on October 1, 1993 (58

Fed. Reg. 51266).

SEC. 609. None of the funds appropriated or otherwise made

available by this Act may be obligated or expended to pay for

any cost incurred for (1) opening or operating any United States

diplomatic or consular post in the Socialist Republic of Vietnam

that was not operating on July 11, 1995; (2) expanding any United

States diplomatic or consular post in the Socialist Republic of Vietnam that was operating on July 11, 1995; or (3) increasing the

total number of personnel assigned to United States diplomatic

or consular posts in the Socialist Republic of Vietnam above the

levels existing on July 11, 1995, unless the President certifies

within 60 days, based upon all information available to the United

States Government that the Government of the Socialist Republic

of Vietnam is cooperating in full faith with the United States

in the following four areas:

(1) Resolving discrepancy cases, live sightings and field

activities,

(2) Recovering and repatriating American remains,

(3) Accelerating efforts to provide documents that will help

lead to fullest possible accounting of POW/MIA’s.

(4) Providing further assistance in implementing trilateral

investigations with Laos.

SEC. 610. None of the funds made available by this Act may

be used for any United Nations undertaking when it is made

known to the Federal official having authority to obligate or expend

such funds (1) that the United Nations undertaking is a peacekeeping mission, (2) that such undertaking will involve United States

Armed Forces under the command or operational control of a foreign

national, and (3) that the President’s military advisors have not

submitted to the President a recommendation that such involvement

is in the national security interests of the United States and the
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–66

President has not submitted to the Congress such a recommendation.

SEC. 611. None of the funds made available in this Act shall

be used to provide the following amenities or personal comforts

in the Federal prison system—

(1) in-cell television viewing except for prisoners who are

segregated from the general prison population for their own

safety;

(2) the viewing of R, X, and NC–17 rated movies, through

whatever medium presented;

(3) any instruction (live or through broadcasts) or training

equipment for boxing, wrestling, judo, karate, or other martial

art, or any bodybuilding or weightlifting equipment of any

sort;

(4) possession of in-cell coffee pots, hot plates, or heating

elements; or

(5) the use or possession of any electric or electronic musical

instrument.

SEC. 612. None of the funds made available in title II for

the National Oceanic and Atmospheric Administration (NOAA)

under the heading ‘‘Fleet Modernization, Shipbuilding and Conversion’’ may be used to implement sections 603, 604, and 605 of

Public Law 102–567: Provided, That NOAA may develop a modernization plan for its fisheries research vessels that takes fully

into account opportunities for contracting for fisheries surveys.

SEC. 613. Any costs incurred by a Department or agency funded

under this Act resulting from personnel actions taken in response

to funding reductions included in this Act shall be absorbed within

the total budgetary resources available to such Department or

agency: Provided, That the authority to transfer funds between

appropriations accounts as may be necessary to carry out this

section is provided in addition to authorities included elsewhere

in this Act: Provided further, That use of funds to carry out this

section shall be treated as a reprogramming of funds under section

605 of this Act and shall not be available for obligation or expenditure except in compliance with the procedures set forth in that

section.

SEC. 614. None of the funds made available in this Act to

the Federal Bureau of Prisons may be used to distribute or make

available any commercially published information or material to

a prisoner when it is made known to the Federal official having

authority to obligate or expend such funds that such information

or material is sexually explicit or features nudity.

SEC. 615. Of the funds appropriated in this Act under the

heading ‘‘OFFICE OF JUSTICE PROGRAMS—STATE AND LOCAL

LAW ENFORCEMENT ASSISTANCE’’ and ‘‘Community Oriented Policing

Services Program’’, not more than ninety percent of the amount

to be awarded to an entity under the Local Law Enforcement

Block Grant and part Q of title I of the Omnibus Crime Control

and Safe Streets Act of 1968 shall be made available to such

an entity when it is made known to the Federal official having

authority to obligate or expend such funds that the entity that

employs a public safety officer (as such term is defined in section

1204 of title I of the Omnibus Crime Control and Safe Streets

Act of 1968) does not provide such a public safety officer who

retires or is separated from service due to injury suffered as the

direct and proximate result of a personal injury sustained in the
110 STAT. 3009–67 PUBLIC LAW 104–208—SEPT. 30, 1996

line of duty while responding to an emergency situation or a hot

pursuit (as such terms are defined by State law) with the same

or better level of health insurance benefits that are paid by the

entity at the time of retirement or separation.

SEC. 616. LIMITATION ON PATENT INFRINGEMENTS RELATING TO A

MEDICAL PRACTITIONER’S PERFORMANCE OF A MEDICAL ACTIVITY.

Section 287 of title 35, United States Code, is amended by

adding at the end the following new subsection:

(c)(1) With respect to a medical practitioner’s performance of

a medical activity that constitutes an infringement under section

271 (a) or (b) of this title, the provisions of sections 281, 283,

284, and 285 of this title shall not apply against the medical

practitioner or against a related health care entity with respect

to such medical activity.

(2) For the purposes of this subsection:

(A) the term ‘‘medical activity’’ means the performance

of a medical or surgical procedure on a body, but shall not

include (i) the use of a patented machine, manufacture, or

composition of matter in violation of such patent, (ii) the practice of a patented use of a composition of matter in violation

of such patent, or (iii) the practice of a process in violation

of a biotechnology patent.

(B) the term ‘‘medical practitioner’’ means any natural

person who is licensed by a State to provide the medical activity

described in subsection (c)(1) or who is acting under the direction of such person in the performance of the medical activity.

(C) the term ‘‘related health care entity’’ shall mean an

entity with which a medical practitioner has a professional

affiliation under which the medical practitioner performs the

medical activity, including but not limited to a nursing home,

hospital, university, medical school, health maintenance

organization, group medical practice, or a medical clinic.

(D) the term ‘‘professional affiliation’’ shall mean staff privileges, medical staff membership, employment or contractual

relationship, partnership or ownership interest, academic

appointment, or other affiliation under which a medical practitioner provides the medical activity on behalf of, or in association with, the health care entity.

(E) the term ‘‘body’’ shall mean a human body, organ or

cadaver, or a nonhuman animal used in medical research or

instruction directly relating to the treatment of humans.

(F) the term ‘‘patented use of a composition of matter’’

does not include a claim for a method of performing a medical

or surgical procedure on a body that recites the use of a composition of matter where the use of that composition of matter

does not directly contribute to achievement of the objective

of the claimed method.

(G) the term ‘‘State’’ shall mean any state or territory

of the United States, the District of Columbia, and the Commonwealth of Puerto Rico.

(3) This subsection does not apply to the activities of any

person, or employee or agent of such person (regardless of whether

such person is a tax exempt organization under section 501(c)

of the Internal Revenue Code), who is engaged in the commercial

development, manufacture, sale, importation, or distribution of a
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–68

machine, manufacture, or composition of matter or the provision

of pharmacy or clinical laboratory services (other than clinical laboratory services provided in a physician’s office), where such activities are:

(A) directly related to the commercial development, manufacture, sale, importation, or distribution of a machine, manufacture, or composition of matter or the provision of pharmacy

or clinical laboratory services (other than clinical laboratory

services provided in a physician’s office), and

(B) regulated under the Federal Food, Drug, and Cosmetic

Act, the Public Health Service Act, or the Clinical Laboratories

Improvement Act.

(4) This subsection shall not apply to any patent issued before

the date of enactment of this subsection.

SEC. 617. Effective with the enactment of this Act and in

any fiscal year hereafter, section 8 of Public Law 96–132 is hereby

repealed.

SEC. 618. (a) IN GENERAL.—The Secretary may issue a guarantee or a commitment to guarantee obligations under title XI of

the Merchant Marine Act, 1936 (46 App. U.S.C. 1271 et seq.),

upon such terms as the Secretary may prescribe, to assist in the

reactivation and modernization of any shipyard in the United States

that is closed on the date of the enactment of this Act, if the

Secretary finds that—

(1) the closed shipyard historically built military vessels

and responsible entities now seek to reopen it as an internationally competitive commercial shipyard;

(2)(A) the closed shipyard has been designated by the President as a public-private partnership project; or

(B) has a reuse plan approved by the Navy in which

commercial shipbuilding and repair are primary activities and

has a revolving economic conversion fund approved by the

Department of Defense; and

(3) the State in which the shipyard is located, and each

other involved State, or a State-chartered agency, is making

a significant financial investment in the overall cost of reactivation and modernization as its contribution to the reactivation

and modernization project, in addition to the funds required

by subsection (d)(2) of this section.

(b) WAIVERS.—Notwithstanding any other provision of title XI

of the Merchant Marine Act, 1936 (46 App. U.S.C. 1271 et seq.),

the Secretary shall not apply the requirements of section 1104A(d)

of that Act when issuing a guarantee or a commitment to guarantee

an obligation under this section.

(c) CONDITIONS.—The Secretary shall impose such conditions

on the issuance of a guarantee or a commitment to guarantee

under this section as are necessary to protect the interests of

the United States from the risk of a default. The Secretary shall

consider the interdependency of such shipyard modernization and

reactivation projects and related vessel loan guarantee requests

pending under title XI of the Merchant Marine Act, 1936 (46 App.

U.S.C. 1271 et seq.) before issuing a guarantee or a commitment

to guarantee under this section.

(d) FUNDING PROVISIONS.—

(1) The Secretary may not guarantee or commit to guarantee obligations under this section that exceed $50,000,000 in

the aggregate.

46 USC app.

1273 note.
110 STAT. 3009–69 PUBLIC LAW 104–208—SEPT. 30, 1996

(2) The amount of appropriated funds required by the Federal Credit Reform Act of 1990 (2 U.S.C. 661a et seq.) in

advance of the Secretary’s issuance of a guarantee or a commitment to guarantee under this section shall be provided by

the State in which the shipyard is located, and other involved

States, or by a State-chartered agency, and deposited by the

Secretary in the financing account established under the Federal Credit Reform Act of 1990 (2 U.S.C. 661a et seq.) for

loan guarantees issued by the Secretary under title XI of the

Merchant Marine Act of 1936 (46 App. U.S.C. 1271 et seq.).

No federally appropriated funds shall be available for this

purpose. The funds deposited into that financing account shall

be held and applied by the Secretary in accordance with the

provisions of the Federal Credit Reform Act of 1990 (2 U.S.C.

661a et seq.), except that, unless the Secretary shall have

earlier paid an obligee or been required to pay an obligee

pursuant to the terms of a loan guarantee, the funds deposited

in that financing account shall be returned, upon the expiration

of the Secretary’s loan guarantee, to the State, States, or Statechartered agency which originally provided the funds to the

Secretary.

(3) Notwithstanding the provisions of any other law or

regulation, the cost (as that term is defined by the Federal

Credit Reform Act of 1990 (2 U.S.C. 661a et seq.)) of a guarantee

or commitment to guarantee issued under this section—

(A) may only be determined with reference to the merits of the specific closed shipyard reactivation project which

is the subject of that guarantee or commitment to guarantee, without reference to any other project, type of project,

or averaged risk; and

(B) may not be used in determining the cost of any

other project, type of project, or averaged risk applicable

to guarantees or commitments to guarantee issued under

title XI of the Merchant Marine Act, 1936 (46 App. U.S.C.

1271 et seq.).

(e) SUNSET.—No commitment to guarantee obligations under

this section shall be issued by the Secretary after one year after

the date of enactment of this section.

(f) DEFINITION.—As used in this section, the term ‘‘Secretary’’

means the Secretary of Transportation.

TITLE VII—RESCISSIONS

DEPARTMENT OF JUSTICE

GENERAL ADMINISTRATION

WORKING CAPITAL FUND

(RESCISSION)

Of the unobligated balances available under this heading on

October 31, 1996, $30,000,000 are rescinded.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–70

IMMIGRATION AND NATURALIZATION SERVICE

IMMIGRATION EMERGENCY FUND

(RESCISSION)

Of the unobligated balances available under this heading $34,779,000 are rescinded.

TITLE VIII—FISCAL YEAR 1996 SUPPLEMENTAL AND

RESCISSION

DEPARTMENT OF JUSTICE

FEDERAL PRISON SYSTEM

SALARIES AND EXPENSES

In addition to funds made available under this heading,

$40,000,000, which shall remain available until September 30, 1997:

Provided, That these funds shall be available upon enactment of

this Act: Provided further, That these funds shall only be available

if enacted by September 30, 1996.

(RESCISSION)

Of the unobligated balances made available under this heading

until September 30, 1996, $40,000,000 are rescinded: Provided,

That these funds shall only be available for rescission if enacted

by September 30, 1996.

TITLE IX—SUPPLEMENTAL APPROPRIATIONS

DEPARTMENT OF COMMERCE

ECONOMIC DEVELOPMENT ADMINISTRATION

ECONOMIC DEVELOPMENT ASSISTANCE PROGRAMS

For an additional amount for ‘‘Economic Development Assistance Programs’’ for emergency infrastructure expenses resulting

from Hurricane Fran and Hurricane Hortense and other natural

disasters, $25,000,000, to remain available until expended: Provided, That the entire amount is designated by Congress as an

emergency requirement pursuant to section 251(b)(2)(D)(i) of the

Balanced Budget and Emergency Deficit Control Act of 1985, as

amended.

RELATED AGENCY

SMALL BUSINESS ADMINISTRATION

DISASTER LOANS PROGRAM ACCOUNT

For an additional amount for ‘‘Disaster Loans Program Account’’

for emergency expenses resulting from Hurricanes Fran and

Hortense and other disasters, $113,000,000 for the cost of direct

loans, to remain available until expended: Provided, That such

costs, including the cost of modifying such loans, shall be as defined

in section 502 of the Congressional Budget Act of 1974; and for
110 STAT. 3009–71 PUBLIC LAW 104–208—SEPT. 30, 1996

administrative expenses to carry out the disaster loan program,

$22,000,000, to remain available until expended, which may be

transferred to and merged with ‘‘Salaries and Expenses’’: Provided

further, That both amounts are hereby designated by Congress

as emergency requirements pursuant to section 251(b)(2)(D)(i) of

the Balanced Budget and Emergency Deficit Control Act of 1985,

as amended.

This Act may be cited as the ‘‘Departments of Commerce,

Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1997’’.

(b) For programs, projects or activities in the Department of

Defense Appropriations Act, 1997, provided as follows, to be effective

as if it had been enacted into law as the regular appropriations

Act:

AN ACT

Making appropriations for the Department of Defense for the fiscal year ending

September 30, 1997, and for other purposes

TITLE I

MILITARY PERSONNEL

MILITARY PERSONNEL, ARMY

For pay, allowances, individual clothing, subsistence, interest

on deposits, gratuities, permanent change of station travel (including all expenses thereof for organizational movements), and

expenses of temporary duty travel between permanent duty stations, for members of the Army on active duty (except members

of reserve components provided for elsewhere), cadets, and aviation

cadets; and for payments pursuant to section 156 of Public Law

97–377, as amended (42 U.S.C. 402 note), to section 229(b) of

the Social Security Act (42 U.S.C. 429(b)), and to the Department

of Defense Military Retirement Fund; $20,633,998,000.

MILITARY PERSONNEL, NAVY

For pay, allowances, individual clothing, subsistence, interest

on deposits, gratuities, permanent change of station travel (including all expenses thereof for organizational movements), and

expenses of temporary duty travel between permanent duty stations, for members of the Navy on active duty (except members

of the Reserve provided for elsewhere), midshipmen, and aviation

cadets; and for payments pursuant to section 156 of Public Law

97–377, as amended (42 U.S.C. 402 note), to section 229(b) of

the Social Security Act (42 U.S.C. 429(b)), and to the Department

of Defense Military Retirement Fund; $16,986,976,000.

MILITARY PERSONNEL, MARINE CORPS

For pay, allowances, individual clothing, subsistence, interest

on deposits, gratuities, permanent change of station travel (including all expenses thereof for organizational movements), and

expenses of temporary duty travel between permanent duty stations, for members of the Marine Corps on active duty (except

members of the Reserve provided for elsewhere); and for payments

pursuant to section 156 of Public Law 97–377, as amended (42

Department of

Defense

Appropriations

Act, 1997.

Post, p. 3009–

119.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–72

U.S.C. 402 note), to section 229(b) of the Social Security Act (42

U.S.C. 429(b)), and to the Department of Defense Military Retirement Fund; $6,111,728,000.

MILITARY PERSONNEL, AIR FORCE

For pay, allowances, individual clothing, subsistence, interest

on deposits, gratuities, permanent change of station travel (including all expenses thereof for organizational movements), and

expenses of temporary duty travel between permanent duty stations, for members of the Air Force on active duty (except members

of reserve components provided for elsewhere), cadets, and aviation

cadets; and for payments pursuant to section 156 of Public Law

97–377, as amended (42 U.S.C. 402 note), to section 229(b) of

the Social Security Act (42 U.S.C. 429(b)), and to the Department

of Defense Military Retirement Fund; $17,069,490,000.

RESERVE PERSONNEL, ARMY

For pay, allowances, clothing, subsistence, gratuities, travel,

and related expenses for personnel of the Army Reserve on active

duty under sections 10211, 10302, and 3038 of title 10, United

States Code, or while serving on active duty under section 12301(d)

of title 10, United States Code, in connection with performing

duty specified in section 12310(a) of title 10, United States Code,

or while undergoing reserve training, or while performing drills

or equivalent duty or other duty, and for members of the Reserve

Officers’ Training Corps, and expenses authorized by section 16131

of title 10, United States Code; and for payments to the Department

of Defense Military Retirement Fund; $2,073,479,000.

RESERVE PERSONNEL, NAVY

For pay, allowances, clothing, subsistence, gratuities, travel,

and related expenses for personnel of the Navy Reserve on active

duty under section 10211 of title 10, United States Code, or while

serving on active duty under section 12301(d) of title 10, United

States Code, in connection with performing duty specified in section

12310(a) of title 10, United States Code, or while undergoing reserve

training, or while performing drills or equivalent duty, and for

members of the Reserve Officers’ Training Corps, and expenses

authorized by section 16131 of title 10, United States Code; and

for payments to the Department of Defense Military Retirement

Fund; $1,405,606,000.

RESERVE PERSONNEL, MARINE CORPS

For pay, allowances, clothing, subsistence, gratuities, travel,

and related expenses for personnel of the Marine Corps Reserve

on active duty under section 10211 of title 10, United States Code,

or while serving on active duty under section 12301(d) of title

10, United States Code, in connection with performing duty specified

in section 12310(a) of title 10, United States Code, or while undergoing reserve training, or while performing drills or equivalent

duty, and for members of the Marine Corps platoon leaders class,

and expenses authorized by section 16131 of title 10, United States

Code; and for payments to the Department of Defense Military

Retirement Fund; $388,643,000.
110 STAT. 3009–73 PUBLIC LAW 104–208—SEPT. 30, 1996

RESERVE PERSONNEL, AIR FORCE

For pay, allowances, clothing, subsistence, gratuities, travel,

and related expenses for personnel of the Air Force Reserve on

active duty under sections 10211, 10305, and 8038 of title 10,

United States Code, or while serving on active duty under section

12301(d) of title 10, United States Code, in connection with performing duty specified in section 12310(a) of title 10, United States

Code, or while undergoing reserve training, or while performing

drills or equivalent duty or other duty, and for members of the

Air Reserve Officers’ Training Corps, and expenses authorized by

section 16131 of title 10, United States Code; and for payments

to the Department of Defense Military Retirement Fund;

$783,697,000.

NATIONAL GUARD PERSONNEL, ARMY

For pay, allowances, clothing, subsistence, gratuities, travel,

and related expenses for personnel of the Army National Guard

while on duty under section 10211, 10302, or 12402 of title 10

or section 708 of title 32, United States Code, or while serving

on duty under section 12301(d) of title 10 or section 502(f) of

title 32, United States Code, in connection with performing duty

specified in section 12310(a) of title 10, United States Code, or

while undergoing training, or while performing drills or equivalent

duty or other duty, and expenses authorized by section 16131 of

title 10, United States Code; and for payments to the Department

of Defense Military Retirement Fund; $3,266,393,000.

NATIONAL GUARD PERSONNEL, AIR FORCE

For pay, allowances, clothing, subsistence, gratuities, travel,

and related expenses for personnel of the Air National Guard on

duty under section 10211, 10305, or 12402 of title 10 or section

708 of title 32, United States Code, or while serving on duty

under section 12301(d) of title 10 or section 502(f) of title 32,

United States Code, in connection with performing duty specified

in section 12310(a) of title 10, United States Code, or while undergoing training, or while performing drills or equivalent duty or

other duty, and expenses authorized by section 16131 of title 10,

United States Code; and for payments to the Department of Defense

Military Retirement Fund; $1,296,490,000.

TITLE II

OPERATION AND MAINTENANCE

OPERATION AND MAINTENANCE, ARMY

(INCLUDING TRANSFER OF FUNDS)

For expenses, not otherwise provided for, necessary for the

operation and maintenance of the Army, as authorized by law;

and not to exceed $11,437,000 can be used for emergencies and

extraordinary expenses, to be expended on the approval or authority

of the Secretary of the Army, and payments may be made on

his certificate of necessity for confidential military purposes;

$17,519,340,000 and, in addition, $50,000,000 shall be derived by
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–74

transfer from the National Defense Stockpile Transaction Fund:

Provided, That during the current fiscal year and hereafter, funds

appropriated under this paragraph may be made available to the

Department of the Interior to support the Memorial Day and Fourth

of July ceremonies and activities in the National Capital Region:

Provided further, That of the funds appropriated in this paragraph,

not less than $300,000,000 shall be made available only for conventional ammunition care and maintenance.

OPERATION AND MAINTENANCE, NAVY

(INCLUDING TRANSFER OF FUNDS)

For expenses, not otherwise provided for, necessary for the

operation and maintenance of the Navy and the Marine Corps,

as authorized by law; and not to exceed $3,995,000, can be used

for emergencies and extraordinary expenses, to be expended on

the approval or authority of the Secretary of the Navy, and payments may be made on his certificate of necessity for confidential

military purposes; $20,061,961,000 and, in addition, $50,000,000

shall be derived by transfer from the National Defense Stockpile

Transaction Fund.

OPERATION AND MAINTENANCE, MARINE CORPS

For expenses, not otherwise provided for, necessary for the

operation and maintenance of the Marine Corps, as authorized

by law; $2,254,119,000.

OPERATION AND MAINTENANCE, AIR FORCE

(INCLUDING TRANSFER OF FUNDS)

For expenses, not otherwise provided for, necessary for the

operation and maintenance of the Air Force, as authorized by law;

and not to exceed $8,362,000 can be used for emergencies and

extraordinary expenses, to be expended on the approval or authority

of the Secretary of the Air Force, and payments may be made

on his certificate of necessity for confidential military purposes;

$17,263,193,000 and, in addition, $50,000,000 shall be derived by

transfer from the National Defense Stockpile Transaction Fund.

OPERATION AND MAINTENANCE, DEFENSE-WIDE

(INCLUDING TRANSFER OF FUNDS)

For expenses, not otherwise provided for, necessary for the

operation and maintenance of activities and agencies of the Department of Defense (other than the military departments), as authorized by law; $10,044,200,000, of which not to exceed $25,000,000

may be available for the CINC initiative fund account; and of

which not to exceed $28,500,000 can be used for emergencies and

extraordinary expenses, to be expended on the approval or authority

of the Secretary of Defense, and payments may be made on his

certificate of necessity for confidential military purposes: Provided,

That of the funds appropriated under this heading, $20,000,000

shall be made available only for use in federally owned education

facilities located on military installations for the purpose of transferring title of such facilities to the local education agency: Provided

43 USC 1471g.
110 STAT. 3009–75 PUBLIC LAW 104–208—SEPT. 30, 1996

further, That of the funds appropriated under this heading, $1,000,000 is available, by grant or other transfer, to the Harnett

County School Board, Lillington, North Carolina, for use by the

school board for the education of dependents of members of the

Armed Forces and employees of the Department of Defense located

at Fort Bragg and Pope Air Force Base, North Carolina.

OPERATION AND MAINTENANCE, ARMY RESERVE

For expenses, not otherwise provided for, necessary for the

operation and maintenance, including training, organization, and

administration, of the Army Reserve; repair of facilities and equipment; hire of passenger motor vehicles; travel and transportation;

care of the dead; recruiting; procurement of services, supplies, and

equipment; and communications; $1,119,436,000.

OPERATION AND MAINTENANCE, NAVY RESERVE

For expenses, not otherwise provided for, necessary for the

operation and maintenance, including training, organization, and

administration, of the Navy Reserve; repair of facilities and equipment; hire of passenger motor vehicles; travel and transportation;

care of the dead; recruiting; procurement of services, supplies, and

equipment; and communications; $886,027,000.

OPERATION AND MAINTENANCE, MARINE CORPS RESERVE

For expenses, not otherwise provided for, necessary for the

operation and maintenance, including training, organization, and

administration, of the Marine Corps Reserve; repair of facilities

and equipment; hire of passenger motor vehicles; travel and

transportation; care of the dead; recruiting; procurement of services,

supplies, and equipment; and communications; $109,667,000.

OPERATION AND MAINTENANCE, AIR FORCE RESERVE

For expenses, not otherwise provided for, necessary for the

operation and maintenance, including training, organization, and

administration, of the Air Force Reserve; repair of facilities and

equipment; hire of passenger motor vehicles; travel and transportation; care of the dead; recruiting; procurement of services, supplies, and equipment; and communications; $1,496,553,000.

OPERATION AND MAINTENANCE, ARMY NATIONAL GUARD

For expenses of training, organizing, and administering the

Army National Guard, including medical and hospital treatment

and related expenses in non-Federal hospitals; maintenance, operation, and repairs to structures and facilities; hire of passenger

motor vehicles; personnel services in the National Guard Bureau;

travel expenses (other than mileage), as authorized by law for

Army personnel on active duty, for Army National Guard division,

regimental, and battalion commanders while inspecting units in

compliance with National Guard Bureau regulations when specifically authorized by the Chief, National Guard Bureau; supplying

and equipping the Army National Guard as authorized by law;

and expenses of repair, modification, maintenance, and issue of

supplies and equipment (including aircraft); $2,254,477,000.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–76

OPERATION AND MAINTENANCE, AIR NATIONAL GUARD

For operation and maintenance of the Air National Guard,

including medical and hospital treatment and related expenses

in non-Federal hospitals; maintenance, operation, repair, and other

necessary expenses of facilities for the training and administration

of the Air National Guard, including repair of facilities, maintenance, operation, and modification of aircraft; transportation of

things, hire of passenger motor vehicles; supplies, materials, and

equipment, as authorized by law for the Air National Guard; and

expenses incident to the maintenance and use of supplies, materials,

and equipment, including such as may be furnished from stocks

under the control of agencies of the Department of Defense; travel

expenses (other than mileage) on the same basis as authorized

by law for Air National Guard personnel on active Federal duty,

for Air National Guard commanders while inspecting units in

compliance with National Guard Bureau regulations when specifically authorized by the Chief, National Guard Bureau;

$2,716,379,000.

OVERSEAS CONTINGENCY OPERATIONS TRANSFER FUND

(INCLUDING TRANSFER OF FUNDS)

For expenses directly relating to Overseas Contingency Oper- ations by United States military forces; $1,140,157,000: Provided, That the Secretary of Defense may transfer these funds only to

operation and maintenance accounts within this title: Provided

further, That the funds transferred shall be merged with and shall

be available for the same purposes and for the same time period,

as the appropriation to which transferred: Provided further, That

the transfer authority provided in this paragraph is in addition

to any other transfer authority contained elsewhere in this Act.

UNITED STATES COURT OF APPEALS FOR THE ARMED FORCES

For salaries and expenses necessary for the United States Court of Appeals for the Armed Forces; $6,797,000, of which not

to exceed $2,500 can be used for official representation purposes.

ENVIRONMENTAL RESTORATION, ARMY

(INCLUDING TRANSFER OF FUNDS)

For the Department of the Army, $339,109,000, to remain

available until transferred: Provided, That the Secretary of the

Army shall, upon determining that such funds are required for

environmental restoration, reduction and recycling of hazardous

waste, removal of unsafe buildings and debris of the Department

of the Army, or for similar purposes, transfer the funds made

available by this appropriation to other appropriations made available to the Department of the Army, to be merged with and to

be available for the same purposes and for the same time period

as the appropriations to which transferred: Provided further, That

upon a determination that all or part of the funds transferred

from this appropriation are not necessary for the purposes provided

herein, such amounts may be transferred back to this appropriation:

Provided further, That not more than twenty-five percent of funds

provided under this heading may be obligated for environmental
110 STAT. 3009–77 PUBLIC LAW 104–208—SEPT. 30, 1996

remediation by the Corps of Engineers under total environmental

remediation contracts.

ENVIRONMENTAL RESTORATION, NAVY

(INCLUDING TRANSFER OF FUNDS)

For the Department of the Navy, $287,788,000, to remain available until transferred: Provided, That the Secretary of the Navy

shall, upon determining that such funds are required for environmental restoration, reduction and recycling of hazardous waste,

removal of unsafe buildings and debris of the Department of the

Navy, or for similar purposes, transfer the funds made available

by this appropriation to other appropriations made available to

the Department of the Navy, to be merged with and to be available

for the same purposes and for the same time period as the appropriations to which transferred: Provided further, That upon a determination that all or part of the funds transferred from this appropriation are not necessary for the purposes provided herein, such

amounts may be transferred back to this appropriation.

ENVIRONMENTAL RESTORATION, AIR FORCE

(INCLUDING TRANSFER OF FUNDS)

For the Department of the Air Force, $394,010,000, to remain

available until transferred: Provided, That the Secretary of the

Air Force shall, upon determining that such funds are required

for environmental restoration, reduction and recycling of hazardous

waste, removal of unsafe buildings and debris of the Department

of the Air Force, or for similar purposes, transfer the funds made

available by this appropriation to other appropriations made available to the Department of the Air Force, to be merged with and

to be available for the same purposes and for the same time period

as the appropriations to which transferred: Provided further, That

upon a determination that all or part of the funds transferred

from this appropriation are not necessary for the purposes provided

herein, such amounts may be transferred back to this appropriation.

ENVIRONMENTAL RESTORATION, DEFENSE-WIDE

(INCLUDING TRANSFER OF FUNDS)

For the Department of the Defense, $36,722,000, to remain

available until transferred: Provided, That the Secretary of Defense

shall, upon determining that such funds are required for environmental restoration, reduction and recycling of hazardous waste,

removal of unsafe buildings and debris of the Department of

Defense, or for similar purposes, transfer the funds made available

by this appropriation to other appropriations made available to

the Department of Defense, to be merged with and to be available

for the same purposes and for the same time period as the appropriations to which transferred: Provided further, That upon a determination that all or part of the funds transferred from this appropriation are not necessary for the purposes provided herein, such

amounts may be transferred back to this appropriation.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–78

ENVIRONMENTAL RESTORATION, FORMERLY USED DEFENSE SITES

(INCLUDING TRANSFER OF FUNDS)

For the Department of the Army, $256,387,000, to remain

available until transferred: Provided, That the Secretary of the

Army shall, upon determining that such funds are required for

environmental restoration, reduction and recycling of hazardous

waste, removal of unsafe buildings and debris at sites formerly

used by the Department of Defense, transfer the funds made available by this appropriation to other appropriations made available

to the Department of the Army, to be merged with and to be

available for the same purposes and for the same time period

as the appropriations to which transferred: Provided further, That

upon a determination that all or part of the funds transferred

from this appropriation are not necessary for the purposes provided

herein, such amounts may be transferred back to this appropriation.

OVERSEAS HUMANITARIAN, DISASTER, AND CIVIC AID

For expenses relating to the Overseas Humanitarian, Disaster,

and Civic Aid programs of the Department of Defense (consisting

of the programs provided under sections 401, 402, 404, 2547, and

2551 of title 10, United States Code); $49,000,000, to remain available until September 30, 1998.

FORMER SOVIET UNION THREAT REDUCTION

For assistance to the republics of the former Soviet Union,

including assistance provided by contract or by grants, for facilitating the elimination and the safe and secure transportation and

storage of nuclear, chemical and other weapons; for establishing

programs to prevent the proliferation of weapons, weapons components, and weapon-related technology and expertise; for programs

relating to the training and support of defense and military personnel for demilitarization and protection of weapons, weapons components and weapons technology and expertise; $327,900,000, to

remain available until expended.

QUALITY OF LIFE ENHANCEMENTS, DEFENSE

For expenses, not otherwise provided for, resulting from

unfunded shortfalls in the repair and maintenance of real property

of the Department of Defense (including military housing and barracks); $600,000,000, for the maintenance of real property of the

Department of Defense (including minor construction and major

maintenance and repair), which shall remain available for obligation

until September 30, 1998, as follows:

Army, $149,000,000;

Navy, $108,000,000;

Marine Corps, $45,000,000;

Air Force, $108,000,000;

Army Reserve, $18,000,000;

Navy Reserve, $18,000,000;

Marine Corps Reserve, $9,000,000;

Air Force Reserve, $15,000,000;

Army National Guard, $86,000,000; and

Air National Guard, $44,000,000.
110 STAT. 3009–79 PUBLIC LAW 104–208—SEPT. 30, 1996

TITLE III

PROCUREMENT

AIRCRAFT PROCUREMENT, ARMY

For construction, procurement, production, modification, and

modernization of aircraft, equipment, including ordnance, ground

handling equipment, spare parts, and accessories therefor; specialized equipment and training devices; expansion of public and private

plants, including the land necessary therefor, for the foregoing

purposes, and such lands and interests therein, may be acquired,

and construction prosecuted thereon prior to approval of title; and

procurement and installation of equipment, appliances, and

machine tools in public and private plants; reserve plant and

Government and contractor-owned equipment layaway; and other

expenses necessary for the foregoing purposes; $1,348,434,000, to

remain available for obligation until September 30, 1999.

MISSILE PROCUREMENT, ARMY

For construction, procurement, production, modification, and

modernization of missiles, equipment, including ordnance, ground

handling equipment, spare parts, and accessories therefor; specialized equipment and training devices; expansion of public and private

plants, including the land necessary therefor, for the foregoing

purposes, and such lands and interests therein, may be acquired,

and construction prosecuted thereon prior to approval of title; and

procurement and installation of equipment, appliances, and

machine tools in public and private plants; reserve plant and

Government and contractor-owned equipment layaway; and other

expenses necessary for the foregoing purposes; $1,041,867,000, to

remain available for obligation until September 30, 1999.

PROCUREMENT OF WEAPONS AND TRACKED COMBAT VEHICLES, ARMY

For construction, procurement, production, and modification

of weapons and tracked combat vehicles, equipment, including ordnance, spare parts, and accessories therefor; specialized equipment

and training devices; expansion of public and private plants, including the land necessary therefor, for the foregoing purposes, and

such lands and interests therein, may be acquired, and construction

prosecuted thereon prior to approval of title; and procurement and

installation of equipment, appliances, and machine tools in public

and private plants; reserve plant and Government and contractorowned equipment layaway; and other expenses necessary for the

foregoing purposes; $1,470,286,000, to remain available for obligation until September 30, 1999: Provided, That of the funds appropriated in this paragraph and notwithstanding the provisions of

title 31, United States Code, Section 1502(a), not to exceed

$33,100,000 may be obligated for future year V903 diesel engine

requirements to maintain the industrial base.

PROCUREMENT OF AMMUNITION, ARMY

For construction, procurement, production, and modification

of ammunition, and accessories therefor; specialized equipment and
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–80

training devices; expansion of public and private plants, including

ammunition facilities authorized by section 2854, title 10, United

States Code, and the land necessary therefor, for the foregoing

purposes, and such lands and interests therein, may be acquired,

and construction prosecuted thereon prior to approval of title; and

procurement and installation of equipment, appliances, and

machine tools in public and private plants; reserve plant and

Government and contractor-owned equipment layaway; and other

expenses necessary for the foregoing purposes; $1,127,149,000, to

remain available for obligation until September 30, 1999.

OTHER PROCUREMENT, ARMY

For construction, procurement, production, and modification

of vehicles, including tactical, support, and non-tracked combat

vehicles; the purchase of not to exceed 14 passenger motor vehicles

for replacement only; communications and electronic equipment;

other support equipment; spare parts, ordnance, and accessories

therefor; specialized equipment and training devices; expansion of

public and private plants, including the land necessary therefor,

for the foregoing purposes, and such lands and interests therein,

may be acquired, and construction prosecuted thereon prior to

approval of title; and procurement and installation of equipment,

appliances, and machine tools in public and private plants; reserve

plant and Government and contractor-owned equipment layaway;

and other expenses necessary for the foregoing purposes;

$3,172,485,000, to remain available for obligation until September

30, 1999: Provided, That of the funds appropriated in this paragraph

and notwithstanding the provisions of title 31, United States Code,

Section 1502(a), not to exceed $2,400,000 may be obligated for

future year V903 diesel engine requirements to maintain the industrial base.

AIRCRAFT PROCUREMENT, NAVY

For construction, procurement, production, modification, and

modernization of aircraft, equipment, including ordnance, spare

parts, and accessories therefor; specialized equipment; expansion

of public and private plants, including the land necessary therefor,

and such lands and interests therein, may be acquired, and

construction prosecuted thereon prior to approval of title; and

procurement and installation of equipment, appliances, and

machine tools in public and private plants; reserve plant and

Government and contractor-owned equipment layaway;

$7,027,010,000, to remain available for obligation until September

30, 1999.

WEAPONS PROCUREMENT, NAVY

For construction, procurement, production, modification, and

modernization of missiles, torpedoes, other weapons, and related

support equipment including spare parts, and accessories therefor;

expansion of public and private plants, including the land necessary

therefor, and such lands and interests therein, may be acquired,

and construction prosecuted thereon prior to approval of title; and

procurement and installation of equipment, appliances, and

machine tools in public and private plants; reserve plant and

Government and contractor-owned equipment layaway;
110 STAT. 3009–81 PUBLIC LAW 104–208—SEPT. 30, 1996

$1,389,913,000, to remain available for obligation until September

30, 1999: Provided, That in addition to the foregoing purposes,

the funds appropriated above under this heading shall be available

to liquidate reported deficiencies in appropriations provided under

this heading in prior Department of Defense appropriations acts,

to the extent such deficiencies cannot otherwise be liquidated pursuant to 31 U.S.C. 1553(b).

PROCUREMENT OF AMMUNITION, NAVY AND MARINE CORPS

For construction, procurement, production, and modification

of ammunition, and accessories therefor; specialized equipment and

training devices; expansion of public and private plants, including

ammunition facilities authorized by section 2854, title 10, United

States Code, and the land necessary therefor, for the foregoing

purposes, and such lands and interests therein, may be acquired,

and construction prosecuted thereon prior to approval of title; and

procurement and installation of equipment, appliances, and

machine tools in public and private plants; reserve plant and

Government and contractor-owned equipment layaway; and other

expenses necessary for the foregoing purposes; $289,695,000, to

remain available for obligation until September 30, 1999.

SHIPBUILDING AND CONVERSION, NAVY

For expenses necessary for the construction, acquisition, or

conversion of vessels as authorized by law, including armor and

armament thereof, plant equipment, appliances, and machine tools

and installation thereof in public and private plants; reserve plant

and Government and contractor-owned equipment layaway;

procurement of critical, long leadtime components and designs for

vessels to be constructed or converted in the future; and expansion

of public and private plants, including land necessary therefor,

and such lands and interests therein, may be acquired, and

construction prosecuted thereon prior to approval of title, as follows:

For continuation of the SSN–21 attack submarine program, $649,071,000; NSSN–1 (AP), $296,186,000;

NSSN–2 (AP), $501,000,000;

CVN Refuelings, $237,029,000;

DDG–51 destroyer program, $3,609,072,000;

Oceanographic ship program, $54,400,000;

Oceanographic ship SWATH, $45,000,000;

LCAC landing craft air cushion program (AP–CY), $3,000,000; and

For craft, outfitting, post delivery, conversions, and first destination transportation, $218,907,000; In all: $5,613,665,000, to remain available for obligation until

September 30, 2001: Provided, That additional obligations may

be incurred after September 30, 2001, for engineering services,

tests, evaluations, and other such budgeted work that must be

performed in the final stage of ship construction: Provided further, That none of the funds herein provided for the construction or

conversion of any naval vessel to be constructed in shipyards in

the United States shall be expended in foreign facilities for the

construction of major components of such vessel: Provided further, That none of the funds herein provided shall be used for the

construction of any naval vessel in foreign shipyards.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–82

OTHER PROCUREMENT, NAVY

For procurement, production, and modernization of support

equipment and materials not otherwise provided for, Navy ordnance

(except ordnance for new aircraft, new ships, and ships authorized

for conversion); expansion of public and private plants, including

the land necessary therefor, and such lands and interests therein,

may be acquired, and construction prosecuted thereon prior to

approval of title; and procurement and installation of equipment,

appliances, and machine tools in public and private plants; reserve

plant and Government and contractor-owned equipment layaway;

$3,067,944,000, to remain available for obligation until September

30, 1999.

PROCUREMENT, MARINE CORPS

For expenses necessary for the procurement, manufacture, and

modification of missiles, armament, military equipment, spare

parts, and accessories therefor; plant equipment, appliances, and

machine tools, and installation thereof in public and private plants;

reserve plant and Government and contractor-owned equipment

layaway; vehicles for the Marine Corps, including the purchase

of not to exceed 88 passenger motor vehicles for replacement only;

and expansion of public and private plants, including land necessary

therefor, and such lands and interests therein, may be acquired

and construction prosecuted thereon prior to approval of title;

$569,073,000, to remain available for obligation until September

30, 1999.

AIRCRAFT PROCUREMENT, AIR FORCE

For construction, procurement, and modification of aircraft and

equipment, including armor and armament, specialized ground handling equipment, and training devices, spare parts, and accessories

therefor; specialized equipment; expansion of public and private

plants, Government-owned equipment and installation thereof in

such plants, erection of structures, and acquisition of land, for

the foregoing purposes, and such lands and interests therein, may

be acquired, and construction prosecuted thereon prior to approval

of title; reserve plant and Government and contractor-owned equipment layaway; and other expenses necessary for the foregoing purposes including rents and transportation of things; $6,404,980,000,

to remain available for obligation until September 30, 1999.

MISSILE PROCUREMENT, AIR FORCE

For construction, procurement, and modification of missiles,

spacecraft, rockets, and related equipment, including spare parts

and accessories therefor, ground handling equipment, and training

devices; expansion of public and private plants, Government-owned

equipment and installation thereof in such plants, erection of structures, and acquisition of land, for the foregoing purposes, and

such lands and interests therein, may be acquired, and construction

prosecuted thereon prior to approval of title; reserve plant and

Government and contractor-owned equipment layaway; and other

expenses necessary for the foregoing purposes including rents and

transportation of things; $2,297,145,000, to remain available for

obligation until September 30, 1999.
110 STAT. 3009–83 PUBLIC LAW 104–208—SEPT. 30, 1996

PROCUREMENT OF AMMUNITION, AIR FORCE

For construction, procurement, production, and modification

of ammunition, and accessories therefor; specialized equipment and

training devices; expansion of public and private plants, including

ammunition facilities authorized by section 2854, title 10, United

States Code, and the land necessary therefor, for the foregoing

purposes, and such lands and interests therein, may be acquired,

and construction prosecuted thereon prior to approval of title; and

procurement and installation of equipment, appliances, and

machine tools in public and private plants; reserve plant and

Government and contractor-owned equipment layaway; and other

expenses necessary for the foregoing purposes; $293,153,000, to

remain available for obligation until September 30, 1999.

OTHER PROCUREMENT, AIR FORCE

For procurement and modification of equipment (including

ground guidance and electronic control equipment, and ground electronic and communication equipment), and supplies, materials, and

spare parts therefor, not otherwise provided for; the purchase of

not to exceed 506 passenger motor vehicles for replacement only;

the purchase of 1 vehicle required for physical security of personnel,

notwithstanding price limitations applicable to passenger vehicles

but not to exceed $287,000 per vehicle; and expansion of public

and private plants, Government-owned equipment and installation

thereof in such plants, erection of structures, and acquisition of

land, for the foregoing purposes, and such lands and interests

therein, may be acquired, and construction prosecuted thereon,

prior to approval of title; reserve plant and Government and contractor-owned equipment layaway; $5,944,680,000, to remain available

for obligation until September 30, 1999.

PROCUREMENT, DEFENSE-WIDE

For expenses of activities and agencies of the Department of

Defense (other than the military departments) necessary for

procurement, production, and modification of equipment, supplies,

materials, and spare parts therefor, not otherwise provided for;

the purchase of not to exceed 389 passenger motor vehicles for

replacement only; expansion of public and private plants, equipment, and installation thereof in such plants, erection of structures,

and acquisition of land for the foregoing purposes, and such lands

and interests therein, may be acquired, and construction prosecuted

thereon prior to approval of title; reserve plant and Government

and contractor-owned equipment layaway; $1,978,005,000, to

remain available for obligation until September 30, 1999.

NATIONAL GUARD AND RESERVE EQUIPMENT

For procurement of aircraft, missiles, tracked combat vehicles,

ammunition, other weapons, and other procurement for the reserve

components of the Armed Forces; $780,000,000, to remain available

for obligation until September 30, 1999: Provided, That the Chiefs

of the Reserve and National Guard components shall, not later

than 30 days after the enactment of this Act, individually submit

to the congressional defense committees the modernization priority
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–84

assessment for their respective Reserve or National Guard component.

TITLE IV—RESEARCH, DEVELOPMENT, TEST AND

EVALUATION

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, ARMY

For expenses necessary for basic and applied scientific research,

development, test and evaluation, including maintenance,

rehabilitation, lease, and operation of facilities and equipment;

$5,062,763,000, to remain available for obligation until September

30, 1998.

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, NAVY

For expenses necessary for basic and applied scientific research,

development, test and evaluation, including maintenance,

rehabilitation, lease, and operation of facilities and equipment;

$8,208,946,000, to remain available for obligation until September

30, 1998: Provided, That funds appropriated in this paragraph

which are available for the V–22 may be used to meet unique

requirements of the Special Operations Forces.

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, AIR FORCE

For expenses necessary for basic and applied scientific research,

development, test and evaluation, including maintenance,

rehabilitation, lease, and operation of facilities and equipment;

$14,499,606,000, to remain available for obligation until September

30, 1998: Provided, That not less than $1,000,000 of the funds

appropriated in this paragraph shall be made available only to

assess the budgetary, cost, technical, operational, training, and

safety issues associated with a decision to eliminate development

of the F–22B two-seat training variant of the F–22 advanced tactical

fighter: Provided further, That the assessment required by the

preceding proviso shall be submitted, in classified and unclassified

versions, by the Secretary of the Air Force to the congressional

defense committees not later than February 15, 1997: Provided

further, That of the funds made available in this paragraph,

$10,000,000 shall be only for development of reusable launch vehicle

technologies.

RESEARCH, DEVELOPMENT, TEST AND EVALUATION, DEFENSE-WIDE

For expenses of activities and agencies of the Department of

Defense (other than the military departments), necessary for basic

and applied scientific research, development, test and evaluation;

advanced research projects as may be designated and determined

by the Secretary of Defense, pursuant to law; maintenance,

rehabilitation, lease, and operation of facilities and equipment;

$9,362,800,000, to remain available for obligation until September

30, 1998: Provided, That not less than $304,171,000 of the funds

appropriated in this paragraph shall be made available only for

the Sea-Based Wide Area Defense (Navy Upper-Tier) program.
110 STAT. 3009–85 PUBLIC LAW 104–208—SEPT. 30, 1996

DEVELOPMENTAL TEST AND EVALUATION, DEFENSE

For expenses, not otherwise provided for, of independent activities of the Director, Test and Evaluation in the direction and

supervision of developmental test and evaluation, including

performance and joint developmental testing and evaluation; and

administrative expenses in connection therewith; $282,038,000, to

remain available for obligation until September 30, 1998.

OPERATIONAL TEST AND EVALUATION, DEFENSE

For expenses, not otherwise provided for, necessary for the

independent activities of the Director, Operational Test and Evaluation in the direction and supervision of operational test and evaluation, including initial operational test and evaluation which is conducted prior to, and in support of, production decisions; joint operational testing and evaluation; and administrative expenses in

connection therewith; $24,968,000, to remain available for obligation

until September 30, 1998.

TITLE V—REVOLVING AND MANAGEMENT FUNDS

DEFENSE BUSINESS OPERATIONS FUND

For the Defense Business Operations Fund; $947,900,000.

NATIONAL DEFENSE SEALIFT FUND

For National Defense Sealift Fund programs, projects, and

activities, and for expenses of the National Defense Reserve Fleet,

as established by section 11 of the Merchant Ship Sales Act of

1946 (50 U.S.C. App. 1744); $1,428,002,000, to remain available

until expended: Provided, That none of the funds provided in this

paragraph shall be used to award a new contract that provides

for the acquisition of any of the following major components unless

such components are manufactured in the United States: auxiliary

equipment, including pumps, for all ship-board services; propulsion

system components (that is; engines, reduction gears, and propellers); shipboard cranes; and spreaders for shipboard cranes: Provided further, That the exercise of an option in a contract awarded

through the obligation of previously appropriated funds shall not

be considered to be the award of a new contract: Provided further,

That the Secretary of the military department responsible for such

procurement may waive these restrictions on a case-by-case basis

by certifying in writing to the Committees on Appropriations of

the House of Representatives and the Senate, that adequate domestic supplies are not available to meet Department of Defense

requirements on a timely basis and that such an acquisition must

be made in order to acquire capability for national security purposes.

TITLE VI—OTHER DEPARTMENT OF DEFENSE PROGRAMS

DEFENSE HEALTH PROGRAM

For expenses, not otherwise provided for, for medical and health

care programs of the Department of Defense, as authorized by

law; $10,207,308,000, of which $9,937,838,000 shall be for Operation
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–86

and maintenance, of which not to exceed three percent shall remain

available until September 30, 1998; and of which $269,470,000,

to remain available for obligation until September 30, 1999, shall

be for Procurement: Provided, That of the funds appropriated under

this heading, $14,500,000 shall be made available for obtaining

emergency communications services for members of the Armed

Forces and their families from the American National Red Cross:

Provided further, That notwithstanding any other provision of law,

of the funds provided under this heading, the Secretary of Defense

is directed to use and obligate, within thirty days of enactment

of this Act, not less than $3,400,000 only to permit private sector

or non-Federal physicians who have used and will use the antibacterial treatment method based upon the excretion of dead and

decaying spherical bacteria to work in conjunction with the Walter

Reed Army Medical Center on a treatment protocol and related

studies for Desert Storm Syndrome affected veterans.

CHEMICAL AGENTS AND MUNITIONS DESTRUCTION, DEFENSE

For expenses, not otherwise provided for, necessary for the

destruction of the United States stockpile of lethal chemical agents

and munitions in accordance with the provisions of section 1412

of the Department of Defense Authorization Act, 1986 (50 U.S.C.

1521), and for the destruction of other chemical warfare materials

that are not in the chemical weapon stockpile, $758,447,000, of

which $478,947,000 shall be for Operation and maintenance,

$191,200,000 shall be for Procurement to remain available until

September 30, 1999, and $88,300,000 shall be for Research, development, test and evaluation to remain available until September

30, 1998: Provided, That of the funds made available under this

heading, $1,000,000 shall be available until expended only for a

Johnston Atoll off-island leave program: Provided further, That

notwithstanding any other provision of law, the Secretaries concerned may, pursuant to uniform regulations prescribe travel and

transportation allowances for travel by participants in the off-island

leave program.

DRUG INTERDICTION AND COUNTER-DRUG ACTIVITIES, DEFENSE

(INCLUDING TRANSFER OF FUNDS)

For drug interdiction and counter-drug activities of the Department of Defense, for transfer to appropriations available to the

Department of Defense for military personnel of the reserve components serving under the provisions of title 10 and title 32, United

States Code; for Operation and maintenance; for Procurement; and

for Research, development, test and evaluation; $807,800,000: Provided, That the funds appropriated by this paragraph shall be

available for obligation for the same time period and for the same

purpose as the appropriation to which transferred: Provided further,

That the transfer authority provided in this paragraph is in addition

to any transfer authority contained elsewhere in this Act.

OFFICE OF THE INSPECTOR GENERAL

For expenses and activities of the Office of the Inspector General in carrying out the provisions of the Inspector General Act

of 1978, as amended; $139,157,000, of which $137,157,000 shall
110 STAT. 3009–87 PUBLIC LAW 104–208—SEPT. 30, 1996

be for Operation and maintenance, of which not to exceed $500,000

is available for emergencies and extraordinary expenses to be

expended on the approval or authority of the Inspector General,

and payments may be made on his certificate of necessity for

confidential military purposes; and of which $2,000,000, to remain

available until September 30, 1999, shall be for Procurement.

TITLE VII—RELATED AGENCIES

CENTRAL INTELLIGENCE AGENCY RETIREMENT AND DISABILITY

SYSTEM FUND

For payment to the Central Intelligence Agency Retirement

and Disability System Fund, to maintain proper funding level for

continuing the operation of the Central Intelligence Agency Retirement and Disability System; $196,400,000.

INTELLIGENCE COMMUNITY MANAGEMENT ACCOUNT

For necessary expenses of the Intelligence Community Manage- ment Account; $129,164,000: Provided, That of the funds appro- priated under this heading, $27,000,000 shall be transferred to

the Department of Justice for the National Drug Intelligence Center

to support the Department of Defense’s counterdrug monitoring

and detection responsibilities.

PAYMENT TO KAHO’OLAWE ISLAND CONVEYANCE, REMEDIATION, AND

ENVIRONMENTAL RESTORATION FUND

For payment to Kaho’olawe Island Conveyance, Remediation,

and Environmental Restoration Fund, as authorized by law;

$10,000,000, to remain available until expended.

NATIONAL SECURITY EDUCATION TRUST FUND

For the purposes of title VIII of Public Law 102–183,

$5,100,000, to be derived from the National Security Education

Trust Fund, to remain available until expended.

TITLE VIII—GENERAL PROVISIONS

SEC. 8001. No part of any appropriation contained in this

Act shall be used for publicity or propaganda purposes not authorized by the Congress.

SEC. 8002. During the current fiscal year, provisions of law

prohibiting the payment of compensation to, or employment of,

any person not a citizen of the United States shall not apply

to personnel of the Department of Defense: Provided, That salary

increases granted to direct and indirect hire foreign national

employees of the Department of Defense funded by this Act shall

not be at a rate in excess of the percentage increase authorized

by law for civilian employees of the Department of Defense whose

pay is computed under the provisions of section 5332 of title 5,

United States Code, or at a rate in excess of the percentage increase

provided by the appropriate host nation to its own employees,

whichever is higher: Provided further, That this section shall not

apply to Department of Defense foreign service national employees

serving at United States diplomatic missions whose pay is set

10 USC 1584

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–88

by the Department of State under the Foreign Service Act of 1980:

Provided further, That the limitations of this provision shall not

apply to foreign national employees of the Department of Defense

in the Republic of Turkey.

SEC. 8003. No part of any appropriation contained in this

Act shall remain available for obligation beyond the current fiscal

year, unless expressly so provided herein.

SEC. 8004. No more than 20 per centum of the appropriations

in this Act which are limited for obligation during the current

fiscal year shall be obligated during the last two months of the

fiscal year: Provided, That this section shall not apply to obligations

for support of active duty training of reserve components or summer

camp training of the Reserve Officers’ Training Corps.

(TRANSFER OF FUNDS)

SEC. 8005. Upon determination by the Secretary of Defense

that such action is necessary in the national interest, he may,

with the approval of the Office of Management and Budget, transfer

not to exceed $2,000,000,000 of working capital funds of the Department of Defense or funds made available in this Act to the Department of Defense for military functions (except military construction)

between such appropriations or funds or any subdivision thereof,

to be merged with and to be available for the same purposes,

and for the same time period, as the appropriation or fund to

which transferred: Provided, That such authority to transfer may

not be used unless for higher priority items, based on unforeseen

military requirements, than those for which originally appropriated

and in no case where the item for which funds are requested

has been denied by Congress: Provided further, That the Secretary

of Defense shall notify the Congress promptly of all transfers made

pursuant to this authority or any other authority in this Act:

Provided further, That no part of the funds in this Act shall be

available to prepare or present a request to the Committees on

Appropriations for reprogramming of funds, unless for higher priority items, based on unforeseen military requirements, than those

for which originally appropriated and in no case where the item

for which reprogramming is requested has been denied by the

Congress.

(TRANSFER OF FUNDS)

SEC. 8006. During the current fiscal year, cash balances in

working capital funds of the Department of Defense established

pursuant to section 2208 of title 10, United States Code, may

be maintained in only such amounts as are necessary at any time

for cash disbursements to be made from such funds: Provided,

That transfers may be made between such funds and the ‘‘Foreign

Currency Fluctuations, Defense’’ and ‘‘Operation and Maintenance’’

appropriation accounts in such amounts as may be determined

by the Secretary of Defense, with the approval of the Office of

Management and Budget, except that such transfers may not be

made unless the Secretary of Defense has notified the Congress

of the proposed transfer. Except in amounts equal to the amounts

appropriated to working capital funds in this Act, no obligations

may be made against a working capital fund to procure or increase

the value of war reserve material inventory, unless the Secretary

of Defense has notified the Congress prior to any such obligation.
110 STAT. 3009–89 PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 8007. Funds appropriated by this Act may not be used

to initiate a special access program without prior notification 30

calendar days in session in advance to the congressional defense

committees.

SEC. 8008. None of the funds contained in this Act available

for the Civilian Health and Medical Program of the Uniformed

Services shall be available for payments to physicians and other

non-institutional health care providers in excess of the amounts

allowed in fiscal year 1996 for similar services, except that: (a)

for services for which the Secretary of Defense determines an

increase is justified by economic circumstances, the allowable

amounts may be increased in accordance with appropriate economic

index data similar to that used pursuant to title XVIII of the

Social Security Act; and (b) for services the Secretary determines

are overpriced based on allowable payments under title XVIII of

the Social Security Act, the allowable amounts shall be reduced

by not more than 15 percent (except that the reduction may be

waived if the Secretary determines that it would impair adequate

access to health care services for beneficiaries). The Secretary shall

solicit public comment prior to promulgating regulations to implement this section. Such regulations shall include a limitation, similar to that used under title XVIII of the Social Security Act, on

the extent to which a provider may bill a beneficiary an actual

charge in excess of the allowable amount.

SEC. 8009. None of the funds provided in this Act shall be

available to initiate (1) a multiyear contract that employs economic

order quantity procurement in excess of $20,000,000 in any one

year of the contract or that includes an unfunded contingent liability

in excess of $20,000,000, or (2) a contract for advance procurement

leading to a multiyear contract that employs economic order quantity procurement in excess of $20,000,000 in any one year, unless

the congressional defense committees have been notified at least

thirty days in advance of the proposed contract award: Provided,

That no part of any appropriation contained in this Act shall

be available to initiate a multiyear contract for which the economic

order quantity advance procurement is not funded at least to the

limits of the Government’s liability: Provided further, That no part

of any appropriation contained in this Act shall be available to

initiate multiyear procurement contracts for any systems or component thereof if the value of the multiyear contract would exceed

$500,000,000 unless specifically provided in this Act: Provided further, That no multiyear procurement contract can be terminated

without 10-day prior notification to the congressional defense

committees: Provided further, That the execution of multiyear

authority shall require the use of a present value analysis to determine lowest cost compared to an annual procurement: Provided

further, That notwithstanding Section 8010 of Public Law 104–

61, funds appropriated for the DDG–51 destroyer program in Public

Law 104–61 may be used to initiate a multiyear contract for the

Arleigh Burke class destroyer program.

Funds appropriated in title III of this Act may be used for

multiyear procurement contracts as follows:

Javelin missiles;

Army Tactical Missile System (ATACMS);

MK19–3 grenade machine guns;

M16A2 rifles;

M249 Squad Automatic Weapons;
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–90

M4 carbine rifles;

M240B machine guns; and

Arleigh Burke (DDG–51) class destroyers.

SEC. 8010. Within the funds appropriated for the operation

and maintenance of the Armed Forces, funds are hereby appropriated pursuant to section 401 of title 10, United States Code,

for humanitarian and civic assistance costs under chapter 20 of

title 10, United States Code. Such funds may also be obligated

for humanitarian and civic assistance costs incidental to authorized

operations and pursuant to authority granted in section 401 of

chapter 20 of title 10, United States Code, and these obligations

shall be reported to Congress on September 30 of each year: Provided, That funds available for operation and maintenance shall

be available for providing humanitarian and similar assistance

by using Civic Action Teams in the Trust Territories of the Pacific

Islands and freely associated states of Micronesia, pursuant to

the Compact of Free Association as authorized by Public Law 99–

239: Provided further, That upon a determination by the Secretary

of the Army that such action is beneficial for graduate medical

education programs conducted at Army medical facilities located

in Hawaii, the Secretary of the Army may authorize the provision

of medical services at such facilities and transportation to such

facilities, on a nonreimbursable basis, for civilian patients from

American Samoa, the Commonwealth of the Northern Mariana

Islands, the Marshall Islands, the Federated States of Micronesia,

Palau, and Guam.

SEC. 8011. (a) During fiscal year 1997, the civilian personnel

of the Department of Defense may not be managed on the basis

of any end-strength, and the management of such personnel during

that fiscal year shall not be subject to any constraint or limitation

(known as an end-strength) on the number of such personnel who

may be employed on the last day of such fiscal year.

(b) The fiscal year 1998 budget request for the Department

of Defense as well as all justification material and other documentation supporting the fiscal year 1998 Department of Defense budget

request shall be prepared and submitted to the Congress as if

subsections (a) and (b) of this provision were effective with regard

to fiscal year 1998.

(c) Nothing in this section shall be construed to apply to military

(civilian) technicians.

SEC. 8012. Notwithstanding any other provision of law, none

of the funds made available by this Act shall be used by the

Department of Defense to exceed, outside the fifty United States,

its territories, and the District of Columbia, 125,000 civilian

workyears: Provided, That workyears shall be applied as defined

in the Federal Personnel Manual: Provided further, That workyears

expended in dependent student hiring programs for disadvantaged

youths shall not be included in this workyear limitation.

SEC. 8013. None of the funds made available by this Act shall

be used in any way, directly or indirectly, to influence congressional

action on any legislation or appropriation matters pending before

the Congress.

SEC. 8014. (a) None of the funds appropriated by this Act

shall be used to make contributions to the Department of Defense

Education Benefits Fund pursuant to section 2006(g) of title 10,

United States Code, representing the normal cost for future benefits

10 USC 401 note.
110 STAT. 3009–91 PUBLIC LAW 104–208—SEPT. 30, 1996

under section 3015(c) of title 38, United States Code, for any member of the armed services who, on or after the date of enactment

of this Act—

(1) enlists in the armed services for a period of active

duty of less than three years; or

(2) receives an enlistment bonus under section 308a or

308f of title 37, United States Code,

nor shall any amounts representing the normal cost of such future

benefits be transferred from the Fund by the Secretary of the

Treasury to the Secretary of Veterans Affairs pursuant to section

2006(d) of title 10, United States Code; nor shall the Secretary

of Veterans Affairs pay such benefits to any such member: Provided, That in the case of a member covered by clause (1), these limitations

shall not apply to members in combat arms skills or to members

who enlist in the armed services on or after July 1, 1989, under

a program continued or established by the Secretary of Defense

in fiscal year 1991 to test the cost-effective use of special recruiting

incentives involving not more than nineteen noncombat arms skills

approved in advance by the Secretary of Defense: Provided further,

That this subsection applies only to active components of the Army.

(b) None of the funds appropriated by this Act shall be available

for the basic pay and allowances of any member of the Army

participating as a full-time student and receiving benefits paid

by the Secretary of Veterans Affairs from the Department of Defense

Education Benefits Fund when time spent as a full-time student

is credited toward completion of a service commitment: Provided,

That this subsection shall not apply to those members who have

reenlisted with this option prior to October 1, 1987: Provided further, That this subsection applies only to active components of

the Army.

SEC. 8015. None of the funds appropriated by this Act shall

be available to convert to contractor performance an activity or

function of the Department of Defense that, on or after the date

of enactment of this Act, is performed by more than ten Department

of Defense civilian employees until a most efficient and cost-effective

organization analysis is completed on such activity or function

and certification of the analysis is made to the Committees on

Appropriations of the House of Representatives and the Senate:

Provided, That this section shall not apply to a commercial or

industrial type function of the Department of Defense that: (1)

is included on the procurement list established pursuant to section

2 of the Act of June 25, 1938 (41 U.S.C. 47), popularly referred

to as the Javits-Wagner-O’Day Act; (2) is planned to be converted

to performance by a qualified nonprofit agency for the blind or

by a qualified nonprofit agency for other severely handicapped

individuals in accordance with that Act; or (3) is planned to be

converted to performance by a qualified firm under 51 percent

Native American ownership.

(TRANSFER OF FUNDS)

SEC. 8016. Funds appropriated in title III of this Act for the

Department of Defense Pilot Mentor-Protege Program may be transferred to any other appropriation contained in this Act solely for

the purpose of implementing a Mentor-Protege Program developmental assistance agreement pursuant to section 831 of the

National Defense Authorization Act for Fiscal Year 1991 (Public
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–92

Law 101–510; 10 U.S.C. 2301 note), as amended, under the authority of this provision or any other transfer authority contained in

this Act.

SEC. 8017. None of the funds in this Act may be available

for the purchase by the Department of Defense (and its departments

and agencies) of welded shipboard anchor and mooring chain 4

inches in diameter and under unless the anchor and mooring chain

are manufactured in the United States from components which

are substantially manufactured in the United States: Provided,

That for the purpose of this section manufactured will include

cutting, heat treating, quality control, testing of chain and welding

(including the forging and shot blasting process): Provided further,

That for the purpose of this section substantially all of the components of anchor and mooring chain shall be considered to be produced or manufactured in the United States if the aggregate cost

of the components produced or manufactured in the United States

exceeds the aggregate cost of the components produced or manufactured outside the United States: Provided further, That when adequate domestic supplies are not available to meet Department of

Defense requirements on a timely basis, the Secretary of the service

responsible for the procurement may waive this restriction on a

case-by-case basis by certifying in writing to the Committees on

Appropriations that such an acquisition must be made in order

to acquire capability for national security purposes.

SEC. 8018. None of the funds appropriated by this Act available

for the Civilian Health and Medical Program of the Uniformed

Services (CHAMPUS) shall be available for the reimbursement

of any health care provider for inpatient mental health service

for care received when a patient is referred to a provider of inpatient

mental health care or residential treatment care by a medical

or health care professional having an economic interest in the

facility to which the patient is referred: Provided, That this limitation does not apply in the case of inpatient mental health services

provided under the program for the handicapped under subsection

(d) of section 1079 of title 10, United States Code, provided as

partial hospital care, or provided pursuant to a waiver authorized

by the Secretary of Defense because of medical or psychological

circumstances of the patient that are confirmed by a health professional who is not a Federal employee after a review, pursuant

to rules prescribed by the Secretary, which takes into account

the appropriate level of care for the patient, the intensity of services

required by the patient, and the availability of that care.

SEC. 8019. Funds available in this Act may be used to provide

transportation for the next-of-kin of individuals who have been

prisoners of war or missing in action from the Vietnam era to

an annual meeting in the United States, under such regulations

as the Secretary of Defense may prescribe.

SEC. 8020. Notwithstanding any other provision of law, during

the current fiscal year, the Secretary of Defense may, by Executive

Agreement, establish with host nation governments in NATO member states a separate account into which such residual value

amounts negotiated in the return of United States military installations in NATO member states may be deposited, in the currency

of the host nation, in lieu of direct monetary transfers to the

United States Treasury: Provided, That such credits may be utilized

only for the construction of facilities to support United States military forces in that host nation, or such real property maintenance

10 USC 2687

note.
110 STAT. 3009–93 PUBLIC LAW 104–208—SEPT. 30, 1996

and base operating costs that are currently executed through monetary transfers to such host nations: Provided further, That the

Department of Defense’s budget submission for fiscal year 1998

shall identify such sums anticipated in residual value settlements,

and identify such construction, real property maintenance or base

operating costs that shall be funded by the host nation through

such credits: Provided further, That all military construction

projects to be executed from such accounts must be previously

approved in a prior Act of Congress: Provided further, That each

such Executive Agreement with a NATO member host nation shall

be reported to the congressional defense committees, the Committee

on International Relations of the House of Representatives and

the Committee on Foreign Relations of the Senate thirty days

prior to the conclusion and endorsement of any such agreement

established under this provision.

SEC. 8021. None of the funds available to the Department

of Defense may be used to demilitarize or dispose of M–1 Carbines,

M–1 Garand rifles, M–14 rifles, .22 caliber rifles, .30 caliber rifles,

or M–1911 pistols.

SEC. 8022. Notwithstanding any other provision of law, none

of the funds appropriated by this Act shall be available to pay

more than 50 percent of an amount paid to any person under

section 308 of title 37, United States Code, in a lump sum.

SEC. 8023. None of the funds appropriated by this Act shall

be available for payments under the Department of Defense contract

with the Louisiana State University Medical Center involving the

use of cats for Brain Missile Wound Research, and the Department

of Defense shall not make payments under such contract from

funds obligated prior to the date of the enactment of this Act,

except as necessary for costs incurred by the contractor prior to

the enactment of this Act: Provided, That funds necessary for the

care of animals covered by this contract are allowed.

SEC. 8024. Of the funds made available by this Act in title

III, Procurement, $8,000,000, drawn pro rata from each appropriations account in title III, shall be available for incentive payments

authorized by section 504 of the Indian Financing Act of 1974,

25 U.S.C. 1544. These payments shall be available only to contractors which have submitted subcontracting plans pursuant to 15

U.S.C. 637(d), and according to regulations which shall be promulgated by the Secretary of Defense within 90 days of the passage

of this Act.

SEC. 8025. None of the funds provided in this Act or any

other Act shall be available to conduct bone trauma research at

any Army Research Laboratory until the Secretary of the Army

certifies that the synthetic compound to be used in the experiments

is of such a type that its use will result in a significant medical

finding, the research has military application, the research will

be conducted in accordance with the standards set by an animal

care and use committee, and the research does not duplicate

research already conducted by a manufacturer or any other research

organization.

SEC. 8026. During the current fiscal year, none of the funds

available to the Department of Defense may be used to procure

or acquire (1) defensive handguns unless such handguns are the

M9 or M11 9mm Department of Defense standard handguns, or

(2) offensive handguns except for the Special Operations Forces:
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–94

Provided, That the foregoing shall not apply to handguns and

ammunition for marksmanship competitions.

SEC. 8027. No more than $500,000 of the funds appropriated

or made available in this Act shall be used for any single relocation

of an organization, unit, activity or function of the Department

of Defense into or within the National Capital Region: Provided,

That the Secretary of Defense may waive this restriction on a

case-by-case basis by certifying in writing to the Congressional

defense committees that such a relocation is required in the best

interest of the Government.

SEC. 8028. During the current fiscal year, funds appropriated

or otherwise available for any Federal agency, the Congress, the

judicial branch, or the District of Columbia may be used for the

pay, allowances, and benefits of an employee as defined by section

2105 of title 5 or an individual employed by the government of

the District of Columbia, permanent or temporary indefinite, who—

(1) is a member of a Reserve component of the Armed

Forces, as described in section 261 of title 10, or the National

Guard, as described in section 101 of title 32;

(2) performs, for the purpose of providing military aid

to enforce the law or providing assistance to civil authorities

in the protection or saving of life or property or prevention

of injury—

(A) Federal service under sections 331, 332, 333, or

12406 of title 10, or other provision of law, as applicable,

or

(B) full-time military service for his or her State, the

District of Columbia, the Commonwealth of Puerto Rico,

or a territory of the United States; and

(3) requests and is granted—

(A) leave under the authority of this section; or

(B) annual leave, which may be granted without regard

to the provisions of sections 5519 and 6323(b) of title 5,

if such employee is otherwise entitled to such annual leave:

Provided, That any employee who requests leave under subsection

(3)(A) for service described in subsection (2) of this section is entitled

to such leave, subject to the provisions of this section and of the

last sentence of section 6323(b) of title 5, and such leave shall

be considered leave under section 6323(b) of title 5.

SEC. 8029. None of the funds appropriated by this Act shall

be available to perform any cost study pursuant to the provisions

of OMB Circular A–76 if the study being performed exceeds a

period of twenty-four months after initiation of such study with

respect to a single function activity or forty-eight months after

initiation of such study for a multi-function activity.

SEC. 8030. Funds appropriated by this Act for the American

Forces Information Service shall not be used for any national or

international political or psychological activities.

SEC. 8031. Notwithstanding any other provision of law or regulation, the Secretary of Defense may adjust wage rates for civilian

employees hired for certain health care occupations as authorized

for the Secretary of Veterans Affairs by section 7455 of title 38,

United States Code.

SEC. 8032. None of the funds appropriated or made available

in this Act shall be used to reduce or disestablish the operation

of the 53rd Weather Reconnaissance Squadron of the Air Force
110 STAT. 3009–95 PUBLIC LAW 104–208—SEPT. 30, 1996

Reserve, if such action would reduce the WC–130 Weather Reconnaissance mission below the levels funded in this Act.

SEC. 8033. (a) Of the funds for the procurement of supplies

or services appropriated by this Act, qualified nonprofit agencies

for the blind or other severely handicapped shall be afforded the

maximum practicable opportunity to participate as subcontractors

and suppliers in the performance of contracts let by the Department

of Defense.

(b) During the current fiscal year, a business concern which

has negotiated with a military service or defense agency a subcontracting plan for the participation by small business concerns

pursuant to section 8(d) of the Small Business Act (15 U.S.C.

637(d)) shall be given credit toward meeting that subcontracting

goal for any purchases made from qualified nonprofit agencies for

the blind or other severely handicapped.

(c) For the purpose of this section, the phrase ‘‘qualified nonprofit agency for the blind or other severely handicapped’’ means

a nonprofit agency for the blind or other severely handicapped

that has been approved by the Committee for the Purchase from

the Blind and Other Severely Handicapped under the Javits-Wagner-O’Day Act (41 U.S.C. 46–48).

SEC. 8034. During the current fiscal year, net receipts pursuant

to collections from third party payers pursuant to section 1095

of title 10, United States Code, shall be made available to the

local facility of the uniformed services responsible for the collections

and shall be over and above the facility’s direct budget amount.

SEC. 8035. During the current fiscal year, the Department

of Defense is authorized to incur obligations of not to exceed

$350,000,000 for purposes specified in section 2350j(c) of title 10,

United States Code, in anticipation of receipt of contributions, only

from the Government of Kuwait, under that section: Provided,

That, upon receipt, such contributions from the Government of

Kuwait shall be credited to the appropriation or fund which incurred

such obligations.

SEC. 8036. Of the funds made available in this Act, not less

than $23,626,000 shall be available for the Civil Air Patrol, of

which $19,926,000 shall be available for Operation and maintenance.

SEC. 8037. (a) None of the funds appropriated in this Act

are available to establish a new Department of Defense (department) federally funded research and development center (FFRDC),

either as a new entity, or as a separate entity administered by

an organization managing another FFRDC, or as a nonprofit membership corporation consisting of a consortium of other FFRDCs

and other non-profit entities.

(b) LIMITATION ON COMPENSATION.—No member of a Board

of Directors, Trustees, Overseers, Advisory Group, Special Issues

Panel, Visiting Committee, or any similar entity of a defense

FFRDC, and no paid consultant to any defense FFRDC, may be

compensated for his or her services as a member of such entity,

or as a paid consultant, except under the same conditions, and

to the same extent, as members of the Defense Science Board:

Provided, That a member of any such entity referred to previously

in this subsection shall be allowed travel expenses and per diem

as authorized under the Federal Joint Travel Regulations, when

engaged in the performance of membership duties.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–96

(c) Notwithstanding any other provision of law, none of the

funds available to the department from any source during fiscal

year 1997 may be used by a defense FFRDC, through a fee or

other payment mechanism, for charitable contributions, for

construction of new buildings, for payment of cost sharing for

projects funded by government grants, or for absorption of contract

overruns.

(d) Notwithstanding any other provision of law, of the funds

available to the department during fiscal year 1997, not more

than 5,975 staff years of technical effort (staff years) may be funded

for defense FFRDCs: Provided, That of the specific amount referred

to previously in this subsection, not more than 1,088 staff years

may be funded for the defense studies and analysis FFRDCs.

(e) Notwithstanding any other provision of law, the Secretary

of Defense shall control the total number of staff years to be

performed by defense FFRDCs during fiscal year 1997 so as to

reduce the total amounts appropriated in titles II, III, and IV

of this Act by $52,286,000: Provided, That the total amounts appropriated in titles II, III, and IV of this Act are hereby reduced

by $52,286,000 to reflect savings from the use of defense FFRDCs

by the department.

(f) Within 60 days after enactment of this Act, the Secretary

of Defense shall submit to the Congressional defense committees

a report presenting the specific amounts of staff years of technical

effort to be allocated by the department for each defense FFRDC

during fiscal year 1997: Provided, That, after the submission of

the report required by this subsection, the department may not

reallocate more than five percent of an FFRDC’s staff years among

other defense FFRDCs until 30 days after a detailed justification

for any such reallocation is submitted to the Congressional defense

committees.

(g) The Secretary of Defense shall, with the submission of

the department’s fiscal year 1998 budget request, submit a report

presenting the specific amounts of staff years of technical effort

to be allocated for each defense FFRDC during that fiscal year.

(h) The total amounts appropriated to or for the use of the

department in titles II, III, and IV of this Act are hereby further

reduced by $102,286,000 to reflect savings from the decreased use

of non-FFRDC consulting services by the department.

(i) No part of the reductions contained in subsections (e) and

(h) of this section may be applied against any budget activity,

activity group, subactivity group, line item, program element, program, project, subproject or activity which does not fund defense

FFRDC activities or non-FFRDC consulting services within each

appropriation account.

(j) Not later than 90 days after enactment of this Act, the

Secretary of Defense shall submit to the congressional defense

committees a report listing the specific funding reductions allocated

to each category listed in subsection (i) above pursuant to this

section.

SEC. 8038. None of the funds in this or any other Act shall

be available for the preparation of studies on—

(a) the feasibility of removal and transportation of unitary

chemical weapons or agents from the eight chemical storage

sites within the continental United States to Johnston Atoll:

Provided, That this prohibition shall not apply to General
110 STAT. 3009–97 PUBLIC LAW 104–208—SEPT. 30, 1996

Accounting Office studies requested by a Member of Congress

or a Congressional Committee; and

(b) the potential future uses of the nine chemical disposal

facilities other than for the destruction of stockpile chemical

munitions and as limited by section 1412(c)(2), Public Law

99–145: Provided, That this prohibition does not apply to future

use studies for the CAMDS facility at Tooele, Utah.

SEC. 8039. None of the funds appropriated or made available

in this Act shall be used to procure carbon, alloy or armor steel

plate for use in any Government-owned facility or property under

the control of the Department of Defense which were not melted

and rolled in the United States or Canada: Provided, That these

procurement restrictions shall apply to any and all Federal Supply

Class 9515, American Society of Testing and Materials (ASTM)

or American Iron and Steel Institute (AISI) specifications of carbon,

alloy or armor steel plate: Provided further, That the Secretary

of the military department responsible for the procurement may

waive this restriction on a case-by-case basis by certifying in writing

to the Committees on Appropriations of the House of Representatives and the Senate that adequate domestic supplies are not available to meet Department of Defense requirements on a timely

basis and that such an acquisition must be made in order to

acquire capability for national security purposes: Provided further,

That these restrictions shall not apply to contracts which are in

being as of the date of enactment of this Act.

SEC. 8040. For the purposes of this Act, the term ‘‘congressional

defense committees’’ means the National Security Committee of

the House of Representatives, the Armed Services Committee of

the Senate, the subcommittee on Defense of the Committee on

Appropriations of the Senate, and the subcommittee on National

Security of the Committee on Appropriations of the House of Representatives.

SEC. 8041. During the current fiscal year, the Department

of Defense may acquire the modification, depot maintenance and

repair of aircraft, vehicles and vessels as well as the production

of components and other Defense-related articles, through competition between Department of Defense depot maintenance activities

and private firms: Provided, That the Senior Acquisition Executive

of the military department or defense agency concerned, with power

of delegation, shall certify that successful bids include comparable

estimates of all direct and indirect costs for both public and private

bids: Provided further, That Office of Management and Budget

Circular A–76 shall not apply to competitions conducted under

this section.

SEC. 8042. (a)(1) If the Secretary of Defense, after consultation

with the United States Trade Representative, determines that a

foreign country which is party to an agreement described in paragraph (2) has violated the terms of the agreement by discriminating

against certain types of products produced in the United States

that are covered by the agreement, the Secretary of Defense shall

rescind the Secretary’s blanket waiver of the Buy American Act

with respect to such types of products produced in that foreign

country.

(2) An agreement referred to in paragraph (1) is any reciprocal

defense procurement memorandum of understanding, between the

United States and a foreign country pursuant to which the Secretary

41 USC 10b–2.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–98

of Defense has prospectively waived the Buy American Act for

certain products in that country.

(b) The Secretary of Defense shall submit to Congress a report

on the amount of Department of Defense purchases from foreign

entities in fiscal year 1997. Such report shall separately indicate

the dollar value of items for which the Buy American Act was

waived pursuant to any agreement described in subsection (a)(2),

the Trade Agreement Act of 1979 (19 U.S.C. 2501 et seq.), or

any international agreement to which the United States is a party.

(c) For purposes of this section, the term ‘‘Buy American Act’’

means title III of the Act entitled ‘‘An Act making appropriations

for the Treasury and Post Office Departments for the fiscal year

ending June 30, 1934, and for other purposes’’, approved March

3, 1933 (41 U.S.C. 10a et seq.).

SEC. 8043. Appropriations contained in this Act that remain

available at the end of the current fiscal year as a result of energy

cost savings realized by the Department of Defense shall remain

available for obligation for the next fiscal year to the extent, and

for the purposes, provided in section 2865 of title 10, United States

Code.

SEC. 8044. During the current fiscal year and hereafter, voluntary separation incentives payable under 10 U.S.C. 1175 may

be paid in such amounts as are necessary from the assets of the

Voluntary Separation Incentive Fund established by section

1175(h)(1).

(INCLUDING TRANSFER OF FUNDS)

SEC. 8045. Amounts deposited during the current fiscal year

to the special account established under 40 U.S.C. 485(h)(2) and

to the special account established under 10 U.S.C. 2667(d)(1) are

appropriated and shall be available until transferred by the Secretary of Defense to current applicable appropriations or funds

of the Department of Defense under the terms and conditions

specified by 40 U.S.C. 485(h)(2) (A) and (B) and 10 U.S.C.

2667(d)(1)(B), to be merged with and to be available for the same

time period and the same purposes as the appropriation to which

transferred.

SEC. 8046. During the current fiscal year, appropriations available to the Department of Defense may be used to reimburse

a member of a reserve component of the Armed Forces who is

not otherwise entitled to travel and transportation allowances and

who occupies transient government housing while performing active

duty for training or inactive duty training: Provided, That such

members may be provided lodging in kind if transient government

quarters are unavailable as if the member was entitled to such

allowances under subsection (a) of section 404 of title 37, United

States Code: Provided further, That if lodging in kind is provided,

any authorized service charge or cost of such lodging may be paid

directly from funds appropriated for operation and maintenance

of the reserve component of the member concerned.

SEC. 8047. The President shall include with each budget for

a fiscal year submitted to the Congress under section 1105 of

title 31, United States Code, materials that shall identify clearly

and separately the amounts requested in the budget for appropriation for that fiscal year for salaries and expenses related to administrative activities of the Department of Defense, the military departments, and the Defense Agencies.

10 USC 221 note.

10 USC 1175

note.
110 STAT. 3009–99 PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 8048. Notwithstanding any other provision of law, funds

available for ‘‘Drug Interdiction and Counter-Drug Activities,

Defense’’ may be obligated for the Young Marines program.

SEC. 8049. During the current fiscal year, amounts contained

in the Department of Defense Overseas Military Facility Investment

Recovery Account established by section 2921(c)(1) of the National

Defense Authorization Act of 1991 (Public Law 101–510; 10 U.S.C.

2687 note) shall be available until expended for the payments

specified by section 2921(c)(2) of that Act.

SEC. 8050. During the current fiscal year and hereafter, annual

payments granted under the provisions of section 4416 of the

National Defense Authorization Act for Fiscal Year 1993 (Public

Law 102–484; 106 Stat. 2714) shall be made from appropriations

in this Act which are available for the pay of reserve component

personnel.

SEC. 8051. Of the funds appropriated or otherwise made available by this Act, not more than $119,200,000 shall be available

for payment of the operating costs of NATO Headquarters: Provided,

That the Secretary of Defense may waive this section for Department of Defense support provided to NATO forces in and around

the former Yugoslavia.

SEC. 8052. During the current fiscal year, appropriations which

are available to the Department of Defense for operation and

maintenance may be used to purchase items having an investment

item unit cost of not more than $100,000.

SEC. 8053. During the current fiscal year and hereafter, appropriations available for the pay and allowances of active duty members of the Armed Forces shall be available to pay the retired

pay which is payable pursuant to section 4403 of Public Law 102–

484 (10 U.S.C. 1293 note) under the terms and conditions provided

in section 4403.

SEC. 8054. (a) During the current fiscal year, none of the

appropriations or funds available to the Defense Business Operations Fund shall be used for the purchase of an investment item

for the purpose of acquiring a new inventory item for sale or

anticipated sale during the current fiscal year or a subsequent

fiscal year to customers of the Defense Business Operations Fund

if such an item would not have been chargeable to the Defense

Business Operations Fund during fiscal year 1994 and if the purchase of such an investment item would be chargeable during

the current fiscal year to appropriations made to the Department

of Defense for procurement.

(b) The fiscal year 1998 budget request for the Department

of Defense as well as all justification material and other documentation supporting the fiscal year 1998 Department of Defense budget

shall be prepared and submitted to the Congress on the basis

that any equipment which was classified as an end item and funded

in a procurement appropriation contained in this Act shall be budgeted for in a proposed fiscal year 1998 procurement appropriation

and not in the supply management business area or any other

area or category of the Defense Business Operations Fund.

SEC. 8055. None of the funds provided in this Act shall be

available for use by a Military Department to modify an aircraft,

weapon, ship or other item of equipment, that the Military Department concerned plans to retire or otherwise dispose of within five

years after completion of the modification: Provided, That this

prohibition shall not apply to safety modifications: Provided further,

10 USC 1293

note.

10 USC 1268

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–100

That this prohibition may be waived by the Secretary of a Military

Department if the Secretary determines it is in the best national

security interest of the United States to provide such waiver and

so notifies the congressional defense committees in writing.

SEC. 8056. None of the funds appropriated by this Act for

programs of the Central Intelligence Agency shall remain available

for obligation beyond the current fiscal year, except for funds appropriated for the Reserve for Contingencies, which shall remain available until September 30, 1998.

SEC. 8057. Notwithstanding any other provision of law, funds

made available in this Act for the Defense Intelligence Agency

may be used for the design, development, and deployment of General Defense Intelligence Program intelligence communications and

intelligence information systems for the Services, the Unified and

Specified Commands, and the component commands.

SEC. 8058. (a) Notwithstanding any other provision of law,

funds appropriated in this Act for the High Performance Computing

Modernization Program shall be made available only for the acquisition, modernization and sustainment of supercomputing capability

and capacity at Department of Defense (DoD) science and technology

sites under the cognizance of the Director of Defense Research

and Engineering and DoD test and evaluation facilities under the

Director of Test and Evaluation, OUSD (A&T): Provided, That

these funds shall be awarded based on user-defined requirements.

(b) Of the funds appropriated in this Act under the heading

‘‘Procurement, Defense-Wide’’, $124,735,000 shall be made available

for the High Performance Computing Modernization Program. Of

the total funds made available for the program pursuant to this

subsection, $20,000,000 shall be for the Army High Performance

Computing Research Center.

SEC. 8059. Of the funds appropriated by the Department of

Defense under the heading ‘‘Operation and Maintenance, DefenseWide’’, not less than $8,000,000 shall be made available only for

the mitigation of environmental impacts, including training and

technical assistance to tribes, related administrative support, the

gathering of information, documenting of environmental damage,

and developing a system for prioritization of mitigation, on Indian

lands resulting from Department of Defense activities.

SEC. 8060. Amounts collected for the use of the facilities of

the National Science Center for Communications and Electronics

during the current fiscal year pursuant to section 1459(g) of the

Department of Defense Authorization Act, 1986 and deposited to

the special account established under subsection 1459(g)(2) of that

Act are appropriated and shall be available until expended for

the operation and maintenance of the Center as provided for in

subsection 1459(g)(2).

SEC. 8061. None of the funds appropriated in this Act may

be used to fill the commander’s position at any military medical

facility with a health care professional unless the prospective candidate can demonstrate professional administrative skills.

SEC. 8062. (a) None of the funds appropriated in this Act

may be expended by an entity of the Department of Defense unless

the entity, in expending the funds, complies with Buy American

Act. For purposes of this subsection, the term ‘‘Buy American Act’’

means title III of the Act entitled ‘‘An Act making appropriations

for the Treasury and Post Office Departments for the fiscal year
110 STAT. 3009–101 PUBLIC LAW 104–208—SEPT. 30, 1996

ending June 30, 1934, and for other purposes’’, approved March

3, 1933 (41 U.S.C. 10a et seq.).

(b) If the Secretary of Defense determines that a person has

been convicted of intentionally affixing a label bearing a ‘‘Made

in America’’ inscription to any product sold in or shipped to the

United States that is not made in America, the Secretary shall

determine, in accordance with section 2410f of title 10, United

States Code, whether the person should be debarred from contracting with the Department of Defense.

(c) In the case of any equipment or products purchased with

appropriations provided under this Act, it is the sense of the Congress that any entity of the Department of Defense, in expending

the appropriation, purchase only American-made equipment and

products, provided that American-made equipment and products

are cost-competitive, quality-competitive, and available in a timely

fashion.

SEC. 8063. None of the funds appropriated by this Act shall

be available for a contract for studies, analyses, or consulting services entered into without competition on the basis of an unsolicited

proposal unless the head of the activity responsible for the procurement determines—

(1) as a result of thorough technical evaluation, only one

source is found fully qualified to perform the proposed work,

or

(2) the purpose of the contract is to explore an unsolicited

proposal which offers significant scientific or technological

promise, represents the product of original thinking, and was

submitted in confidence by one source, or

(3) the purpose of the contract is to take advantage of

unique and significant industrial accomplishment by a specific

concern, or to insure that a new product or idea of a specific

concern is given financial support:

Provided, That this limitation shall not apply to contracts in an

amount of less than $25,000, contracts related to improvements

of equipment that is in development or production, or contracts

as to which a civilian official of the Department of Defense, who

has been confirmed by the Senate, determines that the award

of such contract is in the interest of the national defense.

SEC. 8064. Funds appropriated by this Act for intelligence

activities are deemed to be specifically authorized by the Congress

for purposes of section 504 of the National Security Act of 1947

(50 U.S.C. 414).

SEC. 8065. Notwithstanding section 142 of H.R. 3230, the

National Defense Authorization Act for Fiscal Year 1997, as passed

by the Senate on September 10, 1996, of the funds provided in

title VI of this Act, under the heading ‘‘Chemical Agents and Munitions Destruction, Defense’’, $40,000,000 shall only be available

for the conduct of a pilot program to identify and demonstrate

not less than two alternatives to the baseline incineration process

for the demilitarization of assembled chemical munitions: Provided,

That the Under Secretary of Defense for Acquisition and Technology

shall, not later than December 1, 1996, designate a program manager who is not, nor has been, in direct or immediate control

of the baseline reverse assembly incineration demilitarization program to carry out the pilot program: Provided further, That the

Under Secretary of Defense for Acquisition and Technology shall

evaluate the effectiveness of each alternative chemical munitions

50 USC 1521

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–102

demilitarization technology identified and demonstrated under the

pilot program to demilitarize munitions and assembled chemical

munitions while meeting all applicable Federal and State environmental and safety requirements: Provided further, That the Under

Secretary of Defense for Acquisition and Technology shall transmit,

by December 15 of each year, a report to the congressional defense

committees on the activities carried out under the pilot program

during the preceding fiscal year in which the report is to be made:

Provided further, That section 142(f)(3) of H.R. 3230, the National

Defense Authorization Act for Fiscal Year 1997, as passed by the

Senate on September 10, 1996, is repealed: Provided further, That

no funds may be obligated for the construction of a baseline incineration facility at the Lexington Blue Grass Army Depot or the

Pueblo Depot activity until 180 days after the Secretary of Defense

has submitted to the congressional defense committees a report

detailing the effectiveness of each alternative chemical munitions

demilitarization technology identified and demonstrated under the

pilot program and its ability to meet the applicable safety and

environmental requirements: Provided further, That none of the

funds in this or any other Act may be obligated for the preparation

of studies, assessments, or planning of the removal and transportation of stockpile assembled unitary chemical weapons or neutralized chemical agent to any of the eight chemical weapons storage

sites within the continental United States.

SEC. 8066. (a) None of the funds made available by this Act

may be obligated for design, development, acquisition, or operation

of more than 47 Titan IV expendable launch vehicles, or for satellite

mission-model planning for a Titan IV requirement beyond 47

vehicles.

(b) $59,600,000 made available in this Act for Research, Development, Test and Evaluation, Air Force, may only be obligated

for development of a new family of medium-lift and heavy-lift

expendable launch vehicles evolved from existing technologies.

SEC. 8067. None of the funds available to the Department

of Defense in this Act may be used to establish additional field

operating agencies of any element of the Department during fiscal

year 1997, except for field operating agencies funded within the

National Foreign Intelligence Program: Provided, That the Secretary of Defense may waive this section by certifying to the House

and Senate Committees on Appropriations that the creation of

such field operating agencies will reduce either the personnel and/

or financial requirements of the Department of Defense.

SEC. 8068. Notwithstanding section 303 of Public Law 96–

487 or any other provision of law, the Secretary of the Navy is

authorized to lease real and personal property at Naval Air Facility,

Adak, Alaska, pursuant to 10 U.S.C. 2667(f), for commercial, industrial or other purposes.

SEC. 8069. Notwithstanding any other provision of law, for

resident classes entering the war colleges after September 30, 1997,

the Department of Defense shall require that not less than 20

percent of the total of United States military students at each

war college shall be from military departments other than the

hosting military department: Provided, That each military department will recognize the attendance at a sister military department

war college as the equivalent of attendance at its own war college

for promotion and advancement of personnel.

10 USC note

prec. 2161.

50 USC 1521

note.
110 STAT. 3009–103 PUBLIC LAW 104–208—SEPT. 30, 1996

(RESCISSIONS)

SEC. 8070. Of the funds provided in Department of Defense

Appropriations Acts, the following funds are hereby rescinded from

the following accounts in the specified amounts:

‘‘Procurement of Ammunition, Army, 1995/1997’’,

$4,500,000;

‘‘Aircraft Procurement, Navy, 1995/1997’’, $8,000,000;

‘‘Procurement of Ammunition, Navy and Marine Corps,

1995/1997’’, $2,000,000;

‘‘Other Procurement, Navy, 1995/1997’’, $10,000,000;

‘‘Aircraft Procurement, Air Force, 1995/1997’’, $3,100,000;

‘‘Missile Procurement, Air Force, 1995/1997’’, $31,900,000;

‘‘Aircraft Procurement, Navy, 1996/1998’’, $5,400,000;

‘‘Procurement of Ammunition, Navy and Marine Corps,

1996/1998’’, $12,708,000;

‘‘Aircraft Procurement, Air Force, 1996/1998’’, $9,000,000;

‘‘Missile Procurement, Air Force, 1996/1998’’, $20,000,000;

‘‘Other Procurement, Air Force, 1996/1998’’, $26,000,000;

‘‘Research, Development, Test and Evaluation, Navy 1996/

1997’’, $4,500,000.

SEC. 8071. None of the funds provided in this Act may be

obligated for payment on new contracts on which allowable costs

charged to the government include payments for individual compensation at a rate in excess of $250,000 per year.

SEC. 8072. Of the funds appropriated in the Department of

Defense Appropriations Act, 1996 (Public Law 104–61), under the

heading ‘‘Other Procurement, Army’’, the Department of the Army

shall grant $477,000 to the Kansas Unified School District 207

for the purpose of integrating schools at Fort Leavenworth into

the existing fiber optic network on post.

SEC. 8073. None of the funds available in this Act may be

used to reduce the authorized positions for military (civilian) technicians of the Army National Guard, the Air National Guard, Army

Reserve and Air Force Reserve for the purpose of applying any

administratively imposed civilian personnel ceiling, freeze, or reduction on military (civilian) technicians, unless such reductions are

a direct result of a reduction in military force structure.

SEC. 8074. None of the funds appropriated or otherwise made

available in this Act may be obligated or expended for assistance

to the Democratic People’s Republic of North Korea unless specifically appropriated for that purpose.

SEC. 8075. During the current fiscal year, funds appropriated

in this Act are available to compensate members of the National

Guard for duty performed pursuant to a plan submitted by a Governor of a State and approved by the Secretary of Defense under

section 112 of title 32, United States Code: Provided, That during

the performance of such duty, the members of the National Guard

shall be under State command and control: Provided further, That

such duty shall be treated as full-time National Guard duty for

purposes of sections 12602 (a)(2) and (b)(2) of title 10, United

States Code.

SEC. 8076. Funds appropriated in this Act for operation and

maintenance of the Military Departments, Unified and Specified

Commands and Defense Agencies shall be available for reimbursement of pay, allowances and other expenses which would otherwise

be incurred against appropriations for the National Guard and
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–104

Reserve when members of the National Guard and Reserve provide

intelligence support to Unified Commands, Defense Agencies and

Joint Intelligence Activities, including the activities and programs

included within the General Defense Intelligence Program and the

Consolidated Cryptologic Program: Provided, That nothing in this

section authorizes deviation from established Reserve and National

Guard personnel and training procedures.

SEC. 8077. During the current fiscal year, none of the funds

appropriated in this Act may be used to reduce the civilian medical

and medical support personnel assigned to military treatment facilities below the September 30, 1996 level: Provided, That the Service

Surgeons General may waive this section by certifying to the

congressional defense committees that the beneficiary population

is declining in some catchment areas and civilian strength reductions may be consistent with responsible resource stewardship and

capitation-based budgeting.

SEC. 8078. All refunds or other amounts collected in the

administration of the Civilian Health and Medical Program of the

Uniformed Services (CHAMPUS) shall be credited to current year

appropriations.

(INCLUDING TRANSFER OF FUNDS)

SEC. 8079. None of the funds appropriated in this Act may

be transferred to or obligated from the Pentagon Reservation

Maintenance Revolving Fund, unless the Secretary of Defense certifies that the total cost for the planning, design, construction

and installation of equipment for the renovation of the Pentagon

Reservation will not exceed $1,118,000,000.

SEC. 8080. (a) None of the funds available to the Department

of Defense for any fiscal year for drug interdiction or counterdrug activities may be transferred to any other department or

agency of the United States except as specifically provided in an

appropriations law.

(b) None of the funds available to the Central Intelligence

Agency for any fiscal year for drug interdiction and counter-drug

activities may be transferred to any other department or agency

of the United States except as specifically provided in an appropriations law.

(TRANSFER OF FUNDS)

SEC. 8081. Appropriations available in this Act under the heading ‘‘Operation and Maintenance, Defense-Wide’’ for increasing

energy and water efficiency in Federal buildings may, during their

period of availability, be transferred to other appropriations or

funds of the Department of Defense for projects related to increasing

energy and water efficiency, to be merged with and to be available

for the same general purposes, and for the same time period,

as the appropriation or fund to which transferred.

SEC. 8082. None of the funds appropriated by this Act may

be used for the procurement of ball and roller bearings other than

those produced by a domestic source and of domestic origin: Provided, That the Secretary of the military department responsible

for such procurement may waive this restriction on a case-bycase basis by certifying in writing to the Committees on Appropriations of the House of Representatives and the Senate, that adequate

domestic supplies are not available to meet Department of Defense

50 USC 403f

note.

10 USC 374 note.
110 STAT. 3009–105 PUBLIC LAW 104–208—SEPT. 30, 1996

requirements on a timely basis and that such an acquisition must

be made in order to acquire capability for national security purposes.

SEC. 8083. Notwithstanding any other provision of law, funds

available to the Department of Defense shall be made available

to provide transportation of medical supplies and equipment, on

a nonreimbursable basis, to American Samoa: Provided, That notwithstanding any other provision of law, funds available to the

Department of Defense shall be made available to provide transportation of medical supplies and equipment, on a nonreimbursable

basis, to the Indian Health Service when it is in conjunction with

a civil-military project.

SEC. 8084. None of the funds in this Act may be used to

purchase any supercomputer which is not manufactured in the

United States, unless the Secretary of Defense certifies to the

congressional defense committees that such an acquisition must

be made in order to acquire capability for national security purposes

that is not available from United States manufacturers.

SEC. 8085. Notwithstanding any other provision of law, the

Naval shipyards of the United States shall be eligible to participate

in any manufacturing extension program financed by funds appropriated in this or any other Act.

SEC. 8086. None of the funds appropriated by this Act shall

be available to lease or charter a vessel in excess of seventeen

months (inclusive of any option periods) to transport fuel or oil

for the Department of Defense if the vessel was constructed after

October 1, 1995 unless the Secretary of Defense requires that

the vessel be constructed in the United States with a double hull

under the long-term lease or charter authority provided in section

2401 note of title 10, United States Code: Provided, That this

limitation shall not apply to contracts in force on the date of

enactment of this Act: Provided further, That by 1997 at least

20 percent of annual leases and charters must be for ships of

double hull design constructed after October 1, 1995 if available

in numbers sufficient to satisfy this requirement: Provided further, That the Military Sealift Command shall plan to achieve the goal

of eliminating single hull ship leases by the year 2015.

(TRANSFER OF FUNDS)

SEC. 8087. In addition to amounts appropriated or otherwise made available by this Act, $300,000,000 is hereby appropriated

to the Department of Defense and shall be available only for transfer

to the United States Coast Guard.

SEC. 8088. Notwithstanding any other provision in this Act,

the total amount appropriated in this Act is hereby reduced by

$150,000,000 to reflect savings from reduced carryover of activities

funded through the Defense Business Operations Fund, to be

distributed as follows: ‘‘Operation and Maintenance, Army’’,

$60,000,000; and ‘‘Operation and Maintenance, Navy’’, $90,000,000.

SEC. 8089. Notwithstanding any other provision of law, each

contract awarded by the Department of Defense during the current

fiscal year for construction or service performed in whole or in

part in a State which is not contiguous with another State and

has an unemployment rate in excess of the national average rate

of unemployment as determined by the Secretary of Labor, shall

include a provision requiring the contractor to employ, for the

purpose of performing that portion of the contract in such State
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–106

that is not contiguous with another State, individuals who are

residents of such State and who, in the case of any craft or trade,

possess or would be able to acquire promptly the necessary skills:

Provided, That the Secretary of Defense may waive the requirements of this section, on a case-by-case basis, in the interest of

national security.

SEC. 8090. During the current fiscal year, the Army shall

use the former George Air Force Base as the airhead for the

National Training Center at Fort Irwin: Provided, That none of

the funds in this Act shall be obligated or expended to transport

Army personnel into Edwards Air Force Base for training rotations

at the National Training Center.

SEC. 8091. (a) The Secretary of Defense shall submit, on a

quarterly basis, a report to the congressional defense committees,

the Committee on International Relations of the House of Representatives and the Committee on Foreign Relations of the Senate

setting forth all costs (including incremental costs) incurred by

the Department of Defense during the preceding quarter in

implementing or supporting resolutions of the United Nations Security Council, including any such resolution calling for international

sanctions, international peacekeeping operations, and humanitarian

missions undertaken by the Department of Defense. The quarterly

report shall include an aggregate of all such Department of Defense

costs by operation or mission.

(b) The Secretary of Defense shall detail in the quarterly reports

all efforts made to seek credit against past United Nations expenditures and all efforts made to seek compensation from the United

Nations for costs incurred by the Department of Defense in

implementing and supporting United Nations activities.

SEC. 8092 (a) LIMITATION ON TRANSFER OF DEFENSE ARTICLES

AND SERVICES.—Notwithstanding any other provision of law, none

of the funds available to the Department of Defense for the current

fiscal year may be obligated or expended to transfer to another

nation or an international organization any defense articles or

services (other than intelligence services) for use in the activities

described in subsection (b) unless the congressional defense committees, the Committee on International Relations of the House of

Representatives, and the Committee on Foreign Relations of the

Senate are notified 15 days in advance of such transfer.

(b) COVERED ACTIVITIES.—(1) This section applies to—

(A) any international peacekeeping or peace-enforcement

operation under the authority of chapter VI or chapter VII

of the United Nations Charter under the authority of a United

Nations Security Council resolution; and

(B) any other international peacekeeping, peace-enforcement, or humanitarian assistance operation.

(c) REQUIRED NOTICE.—A notice under subsection (a) shall

include the following:

(1) A description of the equipment, supplies, or services

to be transferred.

(2) A statement of the value of the equipment, supplies,

or services to be transferred.

(3) In the case of a proposed transfer of equipment or

supplies—

(A) a statement of whether the inventory requirements

of all elements of the Armed Forces (including the reserve
110 STAT. 3009–107 PUBLIC LAW 104–208—SEPT. 30, 1996

components) for the type of equipment or supplies to be

transferred have been met; and

(B) a statement of whether the items proposed to be

transferred will have to be replaced and, if so, how the

President proposes to provide funds for such replacement.

SEC. 8093. To the extent authorized by subchapter VI of Chapter 148 of title 10, United States Code, the Secretary of Defense

shall issue loan guarantees in support of U.S. defense exports

not otherwise provided for: Provided, That the total contingent

liability of the United States for guarantees issued under the

authority of this section may not exceed $15,000,000,000: Provided

further, That the exposure fees charged and collected by the Secretary for each guarantee, shall be paid by the country involved

and shall not be financed as part of a loan guaranteed by the

United States: Provided further, That the Secretary shall provide

quarterly reports to the Committees on Appropriations, Armed Services and Foreign Relations of the Senate and the Committees on

Appropriations, National Security and International Relations in

the House of Representatives on the implementation of this program: Provided further, That amounts charged for administrative

fees and deposited to the special account provided for under section

2540c(d) of title 10, shall be available for paying the costs of

administrative expenses of the Department of Defense that are

attributable to the loan guarantee program under subchapter VI

of Chapter 148 of title 10.

SEC. 8094. None of the funds available to the Department

of Defense shall be obligated or expended to make a financial

contribution to the United Nations for the cost of an United Nations

peacekeeping activity (whether pursuant to assessment or a voluntary contribution) or for payment of any United States arrearage

to the United Nations.

SEC. 8095. None of the funds available to the Department

of Defense under this Act shall be obligated or expended to pay

a contractor under a contract with the Department of Defense

for costs of any amount paid by the contractor to an employee

when—

(1) such costs are for a bonus or otherwise in excess of

the normal salary paid by the contractor to the employee;

and

(2) such bonus is part of restructuring costs associated

with a business combination.

SEC. 8096. The amount otherwise provided by this Act for

‘‘Operation and Maintenance, Air Force’’ is hereby reduced by

$194,500,000, to reflect a reduction in the pass-through to the

Air Force business areas of the Defense Business Operations Fund.

SEC. 8097. (a) None of the funds appropriated or otherwise

made available in this Act may be used to transport or provide

for the transportation of chemical munitions or agents to the Johnston Atoll for the purpose of storing or demilitarizing such munitions or agents.

(b) The prohibition in subsection (a) shall not apply to any

obsolete World War II chemical munition or agent of the United

States found in the World War II Pacific Theater of Operations.

(c) The President may suspend the application of subsection

(a) during a period of war in which the United States is a party.

SEC. 8098. None of the funds provided in title II of this Act

for ‘‘Former Soviet Union Threat Reduction’’ may be obligated or
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–108

expended to finance housing for any individual who was a member

of the military forces of the Soviet Union or for any individual

who is or was a member of the military forces of the Russian

Federation.

SEC. 8099. During the current fiscal year, no more than

$15,000,000 of appropriations made in this Act under the heading

‘‘Operation and Maintenance, Defense-Wide’’ may be transferred

to appropriations available for the pay of military personnel, to

be merged with, and to be available for the same time period

as the appropriations to which transferred, to be used in support

of such personnel in connection with support and services for eligible

organizations and activities outside the Department of Defense

pursuant to section 2012 of title 10, United States Code.

SEC. 8100. Beginning in fiscal year 1997 and thereafter, and

notwithstanding any other provision of law, fixed and mobile telecommunications support shall be provided by the White House

Communications Agency (WHCA) to the United States Secret Service (USSS), without reimbursement, in connection with the Secret

Service’s duties directly related to the protection of the President

or the Vice President or other officer immediately next in order

of succession to the office of the President at the White House

Security Complex in the Washington, D.C. Metropolitan Area and

Camp David, Maryland. For these purposes, the White House Security Complex includes the White House, the White House grounds,

the Old Executive Office Building, the New Executive Office Building, the Blair House, the Treasury Building, and the Vice President’s Residence at the Naval Observatory.

SEC. 8101. None of the funds provided in this Act may be

obligated or expended for the sale of zinc in the National Defense

Stockpile if zinc commodity prices decline more than five percent

below the London Metals Exchange market price reported on the

date of enactment of this Act.

SEC. 8102. For purposes of section 1553(b) of title 31, United

States Code, any subdivision of appropriations made in this Act

under the heading ‘‘Shipbuilding and Conversion, Navy’’ shall be

considered to be for the same purpose as any subdivision under

the heading ‘‘Shipbuilding and Conversion, Navy’’ appropriations

in any prior year, and the one percent limitation shall apply to

the total amount of the appropriation.

SEC. 8103. During the current fiscal year, and notwithstanding

31 U.S.C. 1552(a), not more than $107,000,000 appropriated under

the heading ‘‘Aircraft Procurement, Air Force’’ in Public Law 101–

511 and not more than $15,000,000 appropriated under the heading

‘‘Aircraft Procurement, Air Force’’ in Public Law 102–172 which

were available and obligated for the B–2 Aircraft Program shall

remain available for expenditure and for adjusting obligations for

such Program until September 30, 2002.

SEC. 8104. During the current fiscal year, in the case of an

appropriation account of the Department of Defense for which the

period of availability for obligation has expired or which has closed

under the provisions of section 1552 of title 31, United States

Code, and which has a negative unliquidated or unexpended balance, an obligation or an adjustment of an obligation may be

charged to any current appropriation account for the same purpose

as the expired or closed account if—

18 USC 3056

note.
110 STAT. 3009–109 PUBLIC LAW 104–208—SEPT. 30, 1996

(1) the obligation would have been properly chargeable

(except as to amount) to the expired or closed account before

the end of the period of availability or closing of that account;

(2) the obligation is not otherwise properly chargeable to

any current appropriation account of the Department of

Defense; and

(3) in the case of an expired account, the obligation is

not chargeable to a current appropriation of the Department

of Defense under the provisions of section 1405(b)(8) of the

National Defense Authorization Act for Fiscal Year 1991, Public

Law 101–510, as amended (31 U.S.C. 1551 note): Provided, That in the case of an expired account, if subsequent review

or investigation discloses that there was not in fact a negative

unliquidated or unexpended balance in the account, any charge

to a current account under the authority of this section shall

be reversed and recorded against the expired account: Provided

further, That the total amount charged to a current appropriation under this section may not exceed an amount equal to

one percent of the total appropriation for that account.

(TRANSFER OF FUNDS)

SEC. 8105. Upon enactment of this Act, the Secretary of Defense

shall make the following transfers of funds: Provided, That the

amounts transferred shall be available for the same purposes as

the appropriations to which transferred, and for the same time

period as the appropriation from which transferred: Provided further, That the amounts shall be transferred between the following

appropriations in the amount specified:

From:

Under the heading, ‘‘Shipbuilding and Conversion, Navy,

1985/1995’’:

CG–47 cruiser program, $4,300,000;

For craft, outfitting, and post delivery, $2,000,000;

To:

Under the heading, ‘‘Shipbuilding and Conversion, Navy,

1985/1995’’:

DDG–51 destroyer program, $6,300,000;

From:

Under the heading, ‘‘Shipbuilding and Conversion, Navy,

1986/1996’’:

LHD–1 amphibious assault ship program, $2,154,000;

To:

Under the heading, ‘‘Shipbuilding and Conversion, Navy,

1986/1996’’:

For craft, outfitting and post delivery, $2,154,000;

From:

Under the heading, ‘‘Shipbuilding and Conversion, Navy,

1987/1996’’:

T–AO fleet oiler program, $1,095,000;

Oceanographic ship program, $735,000;

To:

Under the heading, ‘‘Shipbuilding and Conversion, Navy,

1987/1996’’:

For craft, outfitting, and post delivery, $1,830,000;

From:

Under the heading, ‘‘Shipbuilding and Conversion, Navy,

1989/2000’’:
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–110

T–AO fleet oiler program, $6,571,000;

To:

Under the heading, ‘‘Shipbuilding and Conversion, Navy,

1989/2000’’:

SSN–21 attack submarine program, $6,571,000;

From:

Under the heading, ‘‘Shipbuilding and Conversion, Navy,

1991/2001’’:

DDG–51 destroyer program, $12,687,000;

To:

Under the heading, ‘‘Shipbuilding and Conversion, Navy,

1991/2001’’:

LHD–1 amphibious assault ship program, $9,387,000;

MHC coastal mine hunter program, $3,300,000;

From:

Under the heading, ‘‘Shipbuilding and Conversion, Navy,

1992/1996’’:

For escalation, $1,600,000;

To:

Under the heading, ‘‘Shipbuilding and Conversion, Navy,

1992/1996’’:

MHC coastal mine hunter program, $1,600,000;

From:

Under the heading, ‘‘Shipbuilding and Conversion, Navy,

1993/1997’’:

DDG–51 destroyer program, $5,000,000;

LSD–41 cargo variant ship program, $2,700,000;

For craft, outfitting, post delivery, and first destination

transportation, and inflation adjustments, $1,577,000;

To:

Under the heading, ‘‘Shipbuilding and Conversion, Navy,

1993/1997’’:

AOE combat support ship program, $9,277,000;

From:

Under the heading, ‘‘Shipbuilding and Conversion, Navy,

1995/1999’’:

Carrier replacement program, $18,023,000;

To:

Under the heading, ‘‘Shipbuilding and Conversion, Navy,

1993/1997’’:

MHC coastal mine hunter program, $6,700,000;

AOE combat support ship program, $11,323,000;

From:

Under the heading, ‘‘Shipbuilding and Conversion, Navy,

1994/1998’’:

LHD–1 amphibious assault ship program, $4,100,000;

Mine warfare command and control ship, $1,000,000;

For craft, outfitting, post delivery, and first destination

transportation, $2,000,000;

From:

Under the heading, ‘‘Shipbuilding and Conversion, Navy,

1995/1999’’:

Carrier replacement program, $9,477,000;

From:

Under the heading, ‘‘Shipbuilding and Conversion, Navy,

1996/2000’’:

NSSN–1 (AP), $3,791,000;
110 STAT. 3009–111 PUBLIC LAW 104–208—SEPT. 30, 1996

DDG–51 destroyer program, $4,075,000;

CVN Refuelings, $5,212,000;

LHD–1 amphibious ship program, $16,800,000;

T–AGS–64 multi-purpose oceanographic survey ship,

$375,000;

For craft, outfitting, post delivery, conversions and first

destination transportation, $11,770,000;

To:

Under the heading, ‘‘Shipbuilding and Conversion, Navy,

1994/1998’’:

DDG–51 destroyer program, $41,800,000; and

Under the heading, ‘‘Shipbuilding and Conversion, Navy,

1995/1999’’:

For craft, outfitting, post delivery, conversions and first

destination transportation, $16,800,000.

SEC. 8106. (a) The Secretary of Defense shall require not later

than June 30, 1997, each disbursement by the Department of

Defense in an amount in excess of $3,000,000 be matched to a

particular obligation before the disbursement is made.

(b) The Secretary shall ensure that a disbursement in excess

of the threshold amount applicable under section (a) is not divided

into multiple disbursements of less than that amount for the purpose of avoiding the applicability of such section to that disbursement.

SEC. 8107. Notwithstanding any other provision of law, the

Air Force shall not introduce any new supplier for the remaining

production units for the AN/ALE–47 Countermeasures Dispenser

System without conducting a full and open competition that will

include, but not be limited to, small businesses.

SEC. 8108. The Under Secretary of Defense (Comptroller) shall

submit to the congressional defense committees a detailed report

identifying, by amount and by separate budget activity, activity

group, subactivity group, line item, program element, program,

project, subproject, and activity, any activity for which the fiscal

year 1998 budget request was reduced because Congress appropriated funds above the President’s budget request for that specific

activity for fiscal year 1997.

SEC. 8109. In applying section 9005 of the Department of

Defense Appropriations Act, 1993, Public Law 102–396 (10 U.S.C.

2241 note), during the current fiscal year and thereafter—

(1) the term ‘‘synthetic fabric and coated synthetic fabric’’

shall be deemed to include all textile fibers and yarns that

are for use in such fabrics; and

(2) such section shall be treated, notwithstanding section

34 of Public Law 93–400 (41 U.S.C. 430), as being applicable

to contracts and subcontracts for the procurement of commercial

items that are articles or items, specialty metals, or tools covered by that section 9005.

SEC. 8110. Notwithstanding any other provision of law, including Section 2304(j) of title 10, United States Code, of the funds

appropriated under the heading ‘‘Aircraft Procurement, Navy’’ in

Public Law 104–61, $45,000,000 shall be made available only for

acquisition of T–39N aircraft, associated ground-based training system (GBTS), service life extension related components and parts,

associated equipment, and data that meet the Undergraduate Flight

Officer (UNFO) training requirements by procurement of the T–

10 USC 2241

note.

10 USC 113 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–112

39N aircraft currently being used by the Navy for UNFO training

under a services contract.

SEC. 8111. TRADEOFF STUDY OF CURRENT AND FUTURE DEEP- STRIKE CAPABILITIES.—

(1) The Secretary of Defense shall carry out the deepstrike tradeoff study announced by the President to study tradeoffs between bombers, land and sea-based tactical aircraft, and

missiles capable of striking targets in an enemy’s rear area.

(2) The Secretary of Defense shall establish an ad hoc

review committee under the auspices of the Defense Science

Board to establish the methodological approach to the tradeoff

study, to establish a broad range of stressing scenarios of

interest, and to review assumptions regarding the analyses

to be conducted.

(3) The ad hoc review committee to be established under

paragraph (2) shall include among its members analysts who

have performed or participated in bomber tradeoff analysis,

retired military personnel with broad experience in recent

conventional warfare operations, and experts on the logistics

of both initial deployment and sustaining support. These members shall be selected without regard for current service on

the Defense Science Board.

(4) After submitting its recommendations for the conduct

of the deep-strike tradeoff study to the Secretary of Defense,

the ad hoc review committee shall continue to meet regularly

to review preliminary results of the analysis and to recommend

additional variations in assumptions that may be required to

illuminate particular force tradeoff issues.

SEC. 8112. Notwithstanding 31 U.S.C. 1552(a), of the funds

provided in Department of Defense Appropriations Acts, not more

than the specified amounts of funds from the following accounts

shall remain available for the payment of satellite on-orbit incentive

fees until the fees are paid:

‘‘Missile Procurement, Air Force, 1990/1992’’, $17,800,000;

‘‘Missile Procurement, Air Force, 1991/1993’’, $19,330,000;

‘‘Missile Procurement, Air Force, 1992/1994’’, $23,570,000;

‘‘Missile Procurement, Air Force, 1993/1995’’, $16,780,000;

‘‘Missile Procurement, Air Force, 1994/1996’’, $16,780,000.

SEC. 8113. TACTICAL AIRCRAFT REQUIREMENT STUDY.—The Secretary of Defense and the Chairman of the Joint Chiefs of Staff

shall carry out a joint study under the direct supervision of the

Joint Requirements Oversight Council (JROC) assessing future tactical aircraft requirements across service jurisdictions. This study

shall determine the best and most affordable mix of weapon systems

to carry out different mission areas and shall include recommendations for changes to the planned numbers and types of tactical

aircraft to be developed and procured over the next ten years

if appropriate. Such report shall be submitted to the congressional

defense committees no later than March 30, 1997.

SEC. 8114. None of the funds available to the Department

of the Navy may be used to enter into any contract for the overhaul,

repair, or maintenance of any naval vessel homeported on the

West Coast of the United States which includes charges for interport

differential as an evaluation factor for award.

SEC. 8115. (a) None of the funds available to the Department

of Defense under this Act may be obligated or expended to

reimburse a defense contractor for restructuring costs associated
110 STAT. 3009–113 PUBLIC LAW 104–208—SEPT. 30, 1996

with a business combination of the defense contractor that occurs

after the date of enactment of this Act unless:

(1) the auditable savings for the Department of Defense

resulting from the restructuring will exceed the costs allowed

by a factor of at least two to one, or

(2) the savings for the Department of Defense resulting

from the restructuring will exceed the costs allowed and the

Secretary of Defense determines that the business combination

will result in the preservation of a critical capability that might

otherwise be lost to the Department, and

(3) the report required by Section 818(e) of Public Law

103–337 to be submitted to Congress in 1996 is submitted.

(b) Not later than April 1, 1997, the Comptroller General shall,

in consultation with the Inspector General of the Department of

Defense, the Secretary of Defense, and the Secretary of Labor,

submit to Congress a report which shall include the following:

(1) an analysis and breakdown of the restructuring costs

paid by or submitted to the Department of Defense to companies

involved in business combinations since 1993;

(2) an analysis of the specific costs associated with

workforce reductions;

(3) an analysis of the services provided to the workers

affected by business combinations;

(4) an analysis of the effectiveness of the restructuring

costs used to assist laid off workers in gaining employment;

(5) in accordance with section 818 of Public Law 103–

337, an analysis of the savings reached from the business

combination relative to the restructuring costs paid by the

Department of Defense.

(c) The report should set forth recommendations to make this

program more effective for workers affected by business combinations and more efficient in terms of the use of Federal dollars.

SEC. 8116. Notwithstanding any other provision of law, none

of the funds appropriated in this Act may be used to purchase,

install, replace, or otherwise repair any lock on a safe or security

container which protects information critical to national security

or any other classified materials and which has not been certified

as passing the security lock specifications contained in regulation

FF–L–2740 dated October 12, 1989, and has not passed all testing

criteria and procedures established through February 28, 1992:

Provided, That the Director of Central Intelligence may waive this

provision, on a case-by-case basis only, upon certification that the

above cited locks are not adequate for the protection of sensitive

intelligence information.

SEC. 8117. Section 8110 of Public Law 104–61 (109 Stat. 674)

is hereby repealed.

SEC. 8118. The Secretary of Defense, in conjunction with the

Secretary of Labor, shall take such steps as required to ensure

that those Department of Defense contractors and other entities

subject to section 4212(d) of title 38, United States Code are aware

of, and in compliance with, the requirements of that section regarding submission of an annual report to the Secretary of Labor

concerning employment of certain veterans: Provided, That the

Secretary of Defense shall ensure that those Department of Defense

contractors and other entities subject to section 4212(d) of title

38, United States Code which have contracts with the Department

of Defense are notified of the potential penalties associated with
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–114

failure to comply with these annual reporting requirements (including potential suspension or debarment from federal contracting):

Provided further, That within 180 days of enactment of this Act

the Secretary of Labor and the Secretary of Defense shall submit

a report to Congress which—

(1) using the most recent reporting data, details the number

of reports received from Department of Defense contractors

and the estimated number of Department of Defense contractors

which are not in compliance with these annual reporting

requirements;

(2) describes the steps taken by the Departments of Labor

and Defense in order to ensure compliance with section 4212(d)

of title 38, United States Code;

(3) describes any additional measures taken or planned

to be taken by the Departments of Labor and Defense to

improve compliance with section 4212(d) of title 38, United

States Code pursuant to this section; and

(4) any further recommendations regarding additional

action (including changes in existing law) which may be necessary to improve compliance with section 4212(d) of title 38,

United States Code.

SEC. 8119. Funds appropriated in title II of this Act for supervision and administration costs for facilities maintenance and

repair, minor construction, or design projects may be obligated

at the time the reimbursable order is accepted by the performing

activity: Provided, That for the purpose of this section, supervision

and administration costs includes all in-house Government cost.

SEC. 8120. (a) LIMITATION ON ADVANCE BILLING.—During fiscal

year 1997, advance billing for services provided or work performed

by the Defense Business Operations Fund activities of the Department of the Navy in excess of $1,000,000,000 is prohibited.

(b) REVISED RATES; ADDITIONAL SURCHARGES.—In conjunction

with the Under Secretary of Defense (Comptroller), the Secretary

of the Navy shall develop a plan to revise fiscal year 1997 customer

rates or establish additional surcharges so as to increase revenues

to the Defense Business Operations Fund by at least an additional

$500,000,000 in executing orders accepted during fiscal year 1997.

(c) TRANSFER AUTHORITY.—To the extent necessary to comply

with any rate increase or new surcharge on rates in fiscal year

1997 established under subsection (b), the Secretary of the Navy

shall transfer at least $500,000,000, from funds made available

under subsection (d), into customer accounts of the Navy used

to reimburse the Defense Business Operations Fund so as to provide

customers with sufficient resources to pay the increased customer

rates and additional surcharges. The transfer authority provided

by this subsection is in addition to other transfer authority provided

in this Act. The funds transferred shall be merged with and available for the same purposes, and for the same time period, as

the appropriation to which transferred.

(d) SOURCE OF FUNDS.—To provide funds for transfer under

subsection (c), the amounts appropriated elsewhere in this Act

for the following appropriation accounts are reduced by 2.0 percent:

Aircraft Procurement, Navy; Weapons Procurement, Navy; Procurement of Ammunition, Navy and Marine Corps; Shipbuilding and

Conversion, Navy; Other Procurement, Navy; and Research, Development, Test and Evaluation, Navy. These reductions shall be

applied on a pro-rata basis to each line item, program element,
110 STAT. 3009–115 PUBLIC LAW 104–208—SEPT. 30, 1996

program, project, subproject, and activity within each appropriation

account.

SEC. 8121. The Secretary of Defense may waive reimbursement

of the cost of conferences, seminars, courses of instruction, or similar

educational activities of the Asia-Pacific Center for Security Studies

for military officers and civilian officials of foreign nations if the

Secretary determines that attendance by such personnel, without

reimbursement, is in the national security interest of the United

States: Provided, That costs for which reimbursement is waived

pursuant to this subsection shall be paid from appropriations available for the Asia-Pacific Center.

SEC. 8122. (a) Of the amounts appropriated or otherwise made

available by this Act for the Department of the Air Force, $2,000,000

shall be available only for a facility at Lackland Air Force Base,

Texas to provide comprehensive care and rehabilitation services

to children with disabilities who are dependents of members of

the Armed Forces.

(b) Subject to subsection (c), the Secretary of the Air Force

shall grant the funds made available under subsection (a) to the

Children’s Association for Maximum Potential (CAMP) for use by

the association to defray the costs of designing and constructing

the facility referred to in subsection (a).

(c)(1) The Secretary may not make a grant of funds under

subsection (b) until the Secretary and the association enter into

an agreement under which the Secretary leases to the association

the facility to be constructed using the funds.

(2) The term of the lease under subsection (c)(1) may not

be less than 25 years.

(3) The Secretary may require such additional terms and conditions in connection with the lease as the Secretary considers appropriate to protect the interests of the United States.

SEC. 8123. None of the funds appropriated by this Act may

be obligated or expended—

(1) to reduce the number of units of special operations

forces of the Army National Guard during fiscal year 1997;

(2) to reduce the authorized strength of any such unit

below the strength authorized for the unit as of September

30, 1996; or

(3) to apply any administratively imposed limitation on

the assigned strength of any such unit at less than the strength

authorized for that unit as of September 30, 1996.

SEC. 8124. (a) The Secretary of the Army shall ensure that

solicitations for contracts for unrestricted procurement to be entered

into using funds appropriated for the Army by this Act include,

where appropriate, specific goals for subcontracts with small

businesses, small disadvantaged businesses, and women owned

small businesses.

(b) The Secretary shall ensure that any subcontract entered

into pursuant to a solicitation referred to in subsection (a) that

meets a specific goal referred to in that subsection is credited

toward the overall goal of the Army for subcontracts with the

businesses referred to in that subsection.

SEC. 8125. (a) The Secretary of the Air Force and the Director

of the Office of Personnel Management shall submit a joint report

describing in detail the benefits, allowances, services, and any other

forms of assistance which may or shall be provided to any civilian

employee of the Federal Government or to any private citizen,
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–116

or to the family of such an individual, who is injured or killed

while traveling on an aircraft owned, leased, chartered, or operated

by the Government of the United States.

(b) The report required by subsection (a) above shall be submitted to the congressional defense committees and to the Committee

on Governmental Affairs of the Senate and the Committee on

Government Reform and Oversight of the House of Representatives

not later than December 15, 1996.

SEC. 8126. (a) Not later than March 1, 1997, the Deputy Secretary of Defense shall submit to the congressional defense committees a report on Department of Defense procurements of propellant

raw materials.

(b) The report shall include the following:

(1) The projected future requirements of the Department

of Defense for propellant raw materials, such as nitrocellulose.

(2) The capacity, ability, and production cost rates of the

national technology and industrial base, including Governmentowned, contractor-operated facilities, contractor-owned and

operated facilities, and Government-owned, Government-operated facilities, for meeting such requirements.

(3) The national security benefits of preserving in the

national technology and industrial base contractor-owned and

operated facilities for producing propellant raw materials,

including nitrocellulose.

(4) The extent to which the cost rates for production of

nitrocellulose in Government-owned, contractor-operated facilities is lower because of the relationship of those facilities with

the Department of Defense than such rates would be without

that relationship.

(5) The advantages and disadvantages of permitting

commercial facilities to compete for award of Department of

Defense contracts for procurement of propellant raw materials,

such as nitrocellulose.

SEC. 8127. Not later than six months after the date of the

enactment of this Act, the Secretary of the Air Force shall submit

to Congress a cost-benefit analysis of consolidating the ground

station infrastructure of the Air Force that supports polar orbiting

satellites.

(INCLUDING TRANSFER OF FUNDS)

SEC. 8128. In addition to the amounts appropriated elsewhere in this Act, $100,000,000 is appropriated for defense against weapons of mass destruction: Provided, That the funds appropriated

under this section may be transferred to and merged with funds

appropriated elsewhere in this Act and that this transfer authority

shall be in addition to any other transfer authority provided under

this Act: Provided further, That of the funds made available by this section, $10,000,000 shall be transferred to and merged with

funds appropriated in this Act for ‘‘Procurement, Marine Corps’’

and shall be available only for the procurement of equipment that

enhances the capability of the Chemical-Biological Incident

Response Force to respond to incidents of terrorism.

SEC. 8129. The Secretary of Defense, in consultation with the

Secretary of Health and Human Services and the Director of the

Office of Personnel Management, shall submit a report to the

congressional defense committees by February 1, 1997 containing

recommendations regarding the establishment of a demonstration
110 STAT. 3009–117 PUBLIC LAW 104–208—SEPT. 30, 1996

program under which covered beneficiaries under chapter 55 of

title 10, United States Code, who are entitled to benefits under

part A of the medicare program and who do not have access to

TRICARE, would be permitted to enroll in a health benefits program

offered through the Federal Employee Health Benefits Program

under chapter 89 of title 5, United States Code.

SEC. 8130. (a) Section 203 of H.R. 3230, the National Defense

Authorization Act for Fiscal Year 1997, as passed by the Senate

on September 10, 1996, is hereby amended by repealing section

203(a), section 203(c), and section 203(e).

(b) The amendments made by subsection (a) shall take effect

as of the date of the enactment of the National Defense Authorization Act for Fiscal Year 1997 as if section 203 of such Act had

been enacted as so amended.

SEC. 8131. (a) Section 722(c) of the National Defense Authorization Act for Fiscal Year 1997 is amended—

(1) by striking out paragraph (2);

(2) by striking out ‘‘(1)’’; and

(3) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively.

(b) The amendments made by subsection (a) shall take effect

as of the date of the enactment of the National Defense Authorization Act for Fiscal Year 1997 as if section 722 of such Act had

been enacted as so amended.

SEC. 8132. The Secretary of Defense shall complete a cost/

benefit analysis on the establishment of a National Missile Defense

Joint Program Office: Provided, That the Secretary of Defense shall

submit a report on this analysis to the congressional defense

committees no later than March 31, 1997: Provided further, That

the Department of Defense shall take no action to establish any

National Missile Defense Joint Program Office, to reassign service

National Missile Defense roles and missions under any National

Missile Defense Joint Program Office strategy or to relocate people

under such a strategy prior to March 31, 1997.

SEC. 8133. (a) Notwithstanding any other provision of law,

the Chief of the National Guard Bureau may permit the use of

equipment of the National Guard Distance Learning Project by

any person or entity on a space-available, reimbursable basis. The

Chief of the National Guard Bureau shall establish the amount

of reimbursement for such use on a case-by-case basis.

(b) Amounts collected under subsection (a) shall be credited

to funds available for the National Guard Distance Learning Project

and be available to defray the costs associated with the use of

equipment of the project under that subsection. Such funds shall

be available for such purposes without fiscal year limitation.

SEC. 8134. Using funds available by this Act or any other

Act, the Secretary of the Air Force, pursuant to a determination

under section 2690 of title 10, United States Code, may implement

cost-effective agreements for required heating facility modernization

in the Kaiserslautern Military Community in the Federal Republic

of Germany: Provided, That in the City of Kaiserslautern such

agreements will include the use of United States anthracite as

the base load energy for municipal district heat to the United

States Defense installations: Provided further, That at Landstuhl

Army Regional Medical Center and Ramstein Air Base, furnished

heat may be obtained from private, regional or municipal services,

10 USC 1073

note.

10 USC 1073

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–118

if provisions are included for the consideration of United States

coal as an energy source.

SEC. 8135. (a) Section 2867 of the National Defense Authorization Act for Fiscal Year 1997 is amended—

(1) by striking out ‘‘Michael O’Callaghan Military Hospital’’

both places it appears in the text of such section and inserting

in lieu thereof ‘‘Mike O’Callaghan Federal Hospital’’; and

(2) in the section heading, by striking out ‘‘MICHAEL

O’CALLAGHAN MILITARY HOSPITAL’’ and inserting in lieu

thereof ‘‘MIKE O’CALLAGHAN FEDERAL HOSPITAL’’.

(b) The amendments made by subsection (a) shall take effect

as of the date of the enactment of the National Defense Authorization Act for Fiscal Year 1997 and shall apply as if such amendments

had been included in section 2867 of such Act when enacted.

SEC. 8136. (a) In addition to any other reductions required

by this Act, the following funds are hereby reduced from the following accounts in title IV of this Act in the specified amounts:

‘‘Research, Development, Test and Evaluation, Army’’,

$101,257,000;

‘‘Research, Development, Test and Evaluation, Navy’’,

$164,179,000;

‘‘Research, Development, Test and Evaluation, Air Force’’,

$289,992,000;

‘‘Research, Development, Test and Evaluation, DefenseWide’’, $119,483,000; and

‘‘Developmental Test and Evaluation, Defense’’, $5,641,000.

(b) The reductions taken pursuant to subsection (a) shall be

applied on a pro-rata basis by subproject within each R-1 program

element as modified by this Act, except that no reduction may

be taken against the funds made available to the Department

of Defense for Ballistic Missile Defense.

(c) Unless expressly exempted by subsection (b), each program

element, program, project, subproject, and activity funded by title

IV of this Act shall be allocated a pro-rata share of any of the

reductions made by this section.

(d) Not later than 60 days after enactment of this Act, the

Secretary of Defense shall submit to the Congressional defense

committees a report listing the specific funding reductions allocated

to each category listed in subsection (c) above pursuant to this

section.

SEC. 8137. In addition to amounts appropriated or otherwise

made available in this Act, $230,680,000 is hereby appropriated

to the Department of Defense for anti-terrorism, counter-terrorism,

and security enhancement programs and activities, as follows:

‘‘Operation and Maintenance, Army’’, $15,249,000;

‘‘Operation and Maintenance, Navy’’, $23,956,000;

‘‘Operation and Maintenance, Marine Corps’’, $600,000;

‘‘Operation and Maintenance, Air Force’’, $10,750,000;

‘‘Operation and Maintenance, Defense-Wide’’, $29,534,000;

‘‘Operation and Maintenance, Navy Reserve’’, $517,000;

‘‘Other Procurement, Army’’, $5,252,000;

‘‘Other Procurement, Air Force’’, $101,472,000;

‘‘Procurement, Defense-Wide’’, $35,350,000;

‘‘Research, Development, Test and Evaluation, DefenseWide’’, $8,000,000:

Provided, That such amounts in their entirety are designated by

Congress as an emergency requirement pursuant to section
110 STAT. 3009–119 PUBLIC LAW 104–208—SEPT. 30, 1996

251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended; Provided further, That funds appropriated in this section, or made available by transfer of such funds,

for programs and activities of the Central Intelligence Agency shall

remain available until September 30, 1997; Provided further, That

funds appropriated in this section or made available by transfer

of such funds, to any intelligence agency or activity of the United

States Government shall be deemed to be specifically authorized

by the Congress for purposes of section 504 of the National Security

Act of 1947 (50 U.S.C. 414).

SEC. 8138. Of the amounts provided in Titles I though VIII

of this Act, $230,680,000 are permanently canceled: Provided, That

the Secretary of Defense shall allocate the amount of budgetary

resources canceled by this section on a pro-rata basis among each

budget activity, activity group and subactivity group and each program, project or activity within each appropriations account.

Titles I through VIII of this Act may be cited as the ‘‘Department of Defense Appropriations Act, 1997’’.

TITLE IX—FISCAL YEAR 1996 SUPPLEMENTAL APPROPRIATIONS AND RESCISSIONS FOR ANTI-TERRORISM,

COUNTER-TERRORISM, AND SECURITY ENHANCEMENT

ACTIVITIES

The following sums are appropriated, out of any money in

the Treasury not otherwise appropriated, to provide emergency

supplemental appropriations for the Department of Defense for

the fiscal year ending September 30, 1996, namely:

DEPARTMENT OF DEFENSE—MILITARY

MILITARY PERSONNEL

MILITARY PERSONNEL, ARMY

For an additional amount for ‘‘Military Personnel, Army’’,

$4,800,000: Provided, That such amount is designated by Congress

as an emergency requirement pursuant to section 251(b)(2)(D)(i)

of the Balanced Budget and Emergency Deficit Control Act of 1985,

as amended.

MILITARY PERSONNEL, AIR FORCE

For an additional amount for ‘‘Military Personnel, Air Force’’,

$4,000,000: Provided, That such amount is designated by Congress

as an emergency requirement pursuant to section 251(b)(2)(D)(i)

of the Balanced Budget and Emergency Deficit Control Act of 1985,

as amended.

OPERATION AND MAINTENANCE

OPERATION AND MAINTENANCE, ARMY

For an additional amount for ‘‘Operation and Maintenance,

Army’’, $21,200,000, to remain available until September 30, 1997:

Short title.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–120

Provided, That such amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

OPERATION AND MAINTENANCE, AIR FORCE

For an additional amount for ‘‘Operation and Maintenance,

Air Force’’, $67,400,000, to remain available until September 30,

1997: Provided, That such amount is designated by Congress as

an emergency requirement pursuant to section 251(b)(2)(D)(i) of

the Balanced Budget and Emergency Deficit Control Act of 1985,

as amended: Provided further, That these funds may be used to

liquidate obligations incurred by the Air Force during fiscal year

1996 for costs incurred under the authority of the Feed and Forage

Act (41 U.S.C. 11).

PROCUREMENT

OTHER PROCUREMENT, ARMY

For an additional amount for ‘‘Other Procurement, Army’’, $11,600,000, to remain available until September 30, 1998: Provided, That such amount is designated by Congress as an emergency

requirement pursuant to section 251(b)(2)(D)(i) of the Balanced

Budget and Emergency Deficit Control Act of 1985, as amended.

OTHER PROCUREMENT, AIR FORCE

For an additional amount for ‘‘Other Procurement, Air Force’’,

$13,600,000, to remain available until September 30, 1998: Provided, That such amount is designated by Congress as an emergency

requirement pursuant to section 251(b)(2)(D)(i) of the Balanced

Budget and Emergency Deficit Control Act of 1985, as amended.

GENERAL PROVISIONS

(RESCISSIONS)

SEC. 9001. Of the funds provided in Department of Defense

Appropriations Acts, the following funds are hereby rescinded, as

of the date of enactment of this Act, from the following accounts

in the specified amounts:

‘‘Procurement of Ammunition, Army, 1994/1996’’, $1,000,000;

‘‘Other Procurement, Army, 1994/1996’’, $6,000,000;

‘‘Research, Development, Test and Evaluation, Army, 1995/

1996’’, $2,055,000;

‘‘Aircraft Procurement, Navy, 1994/1996’’, $10,157,000;

‘‘Weapons Procurement, Navy, 1994/1996’’, $10,688,000;

‘‘Other Procurement, Navy, 1994/1996’’, $4,000,000;

‘‘Research, Development, Test and Evaluation, Navy, 1995/

1996’’, $6,909,000;

‘‘Aircraft Procurement, Air Force, 1994/1996’’, $18,771,000;

‘‘Missile Procurement, Air Force, 1994/1996’’, $10,156,000;

‘‘Other Procurement, Air Force, 1994/1996’’, $14,395,000;

‘‘Research, Development, Test and Evaluation, Air Force,

1995/1996’’, $4,918,000;

‘‘Procurement, Defense-Wide, 1994/1996’’, $9,954,000;
110 STAT. 3009–121 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘Research, Development, Test and Evaluation, Defense-Wide, 1995/1996’’, $23,597,000.

SEC. 9002. Funds appropriated by this title, or made available

by transfer of such funds, for programs and activities of the Central

Intelligence Agency shall remain available until September 30,

1997: Provided, That funds appropriated by this title, or made

available by transfer of such funds, to any intelligence agency

or intelligence activity of the United States Government shall be

deemed to be specifically authorized by the Congress for purposes

of section 504 of the National Security Act of 1947 (50 U.S.C.

414).

(c) For programs, projects or activities in the Foreign Operations, Export Financing, and Related Programs Appropriations

Act, 1997, provided as follows, to be effective as if it had been

enacted into law as the regular appropriations Act:

AN ACT

Making appropriations for the foreign operations, export financing, and related

programs for the fiscal year ending September 30, 1997, and for other purposes.

TITLE I—EXPORT AND INVESTMENT ASSISTANCE

EXPORT-IMPORT BANK OF THE UNITED STATES

The Export-Import Bank of the United States is authorized

to make such expenditures within the limits of funds and borrowing

authority available to such corporation, and in accordance with

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 for the current fiscal year for such corporation:

Provided, That none of the funds available during the current

fiscal year may be used to make expenditures, contracts, or commitments for the export of nuclear equipment, fuel, or technology

to any country other than a nuclear-weapon State as defined in

Article IX of the Treaty on the Non-Proliferation of Nuclear Weapons eligible to receive economic or military assistance under this

Act that has detonated a nuclear explosive after the date of enactment of this Act.

SUBSIDY APPROPRIATION

For the cost of direct loans, loan guarantees, insurance, and

tied-aid grants as authorized by section 10 of the Export-Import

Bank Act of 1945, as amended, $726,000,000 to remain available

until September 30, 1998: Provided, That such costs, including

the cost of modifying such loans, shall be as defined in section

502 of the Congressional Budget Act of 1974: Provided further,

That such sums shall remain available until 2012 for the disbursement of direct loans, loan guarantees, insurance and tied-aid grants

obligated in fiscal years 1997 and 1998: Provided further, That

up to $50,000,000 of funds appropriated by this paragraph shall

remain available until expended and may be used for tied-aid

grant purposes: Provided further, That none of the funds appropriated by this paragraph may be used for tied-aid credits or grants

except through the regular notification procedures of the Committees on Appropriations: Provided further, That funds appropriated

by this paragraph are made available notwithstanding section

Foreign

Operations,

Export

Financing, and

Related

Programs

Appropriations

Act, 1997.

Post, p. 3009–

172.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–122

2(b)(2) of the Export-Import Bank Act of 1945, in connection with

the purchase or lease of any product by any East European country,

any Baltic State, or any agency or national thereof.

ADMINISTRATIVE EXPENSES

For administrative expenses to carry out the direct and guaranteed loan and insurance programs (to be computed on an accrual

basis), including hire of passenger motor vehicles and services as

authorized by 5 U.S.C. 3109, and not to exceed $20,000 for official

reception and representation expenses for members of the Board

of Directors, $46,614,000: Provided, That necessary expenses

(including special services performed on a contract or fee basis,

but not including other personal services) in connection with the

collection of moneys owed the Export-Import Bank, repossession

or sale of pledged collateral or other assets acquired by the ExportImport Bank in satisfaction of moneys owed the Export-Import

Bank, or the investigation or appraisal of any property, or the

evaluation of the legal or technical aspects of any transaction for

which an application for a loan, guarantee or insurance commitment

has been made, shall be considered nonadministrative expenses

for the purposes of this heading: Provided further, That, effective

July 21, 1997, notwithstanding any other provision of law, none

of the funds made available by this or any other Act may be

made available to compensate the incumbent Chairman and President of the Export-Import Bank Provided further, That, notwithstanding subsection (b) of section 117 of the Export Enhancement

Act of 1992, subsection (a) thereof shall remain in effect until

October 1, 1997.

OVERSEAS PRIVATE INVESTMENT CORPORATION

NONCREDIT ACCOUNT

The Overseas Private Investment Corporation is authorized

to make, without regard to fiscal year limitations, as provided

by 31 U.S.C. 9104, such expenditures and commitments within

the limits of funds available to it and in accordance with law

as may be necessary: Provided, That the amount available for

administrative expenses to carry out the credit and insurance programs (including an amount for official reception and representation

expenses which shall not exceed $35,000) shall not exceed

$32,000,000: Provided further, That project-specific transaction

costs, including direct and indirect costs incurred in claims settlements, and other direct costs associated with services provided

to specific investors or potential investors pursuant to section 234

of the Foreign Assistance Act of 1961, shall not be considered

administrative expenses for the purposes of this heading.

PROGRAM ACCOUNT

For the cost of direct and guaranteed loans, $72,000,000, as

authorized by section 234 of the Foreign Assistance Act of 1961:

Provided, That such costs, including the cost of modifying such

loans, shall be as defined in section 502 of the Congressional Budget

Act of 1974: Provided further, That such sums shall be available

for direct loan obligations and loan guaranty commitments incurred

or made during fiscal years 1997 and 1998: Provided further, That

such sums shall remain available through fiscal year 2005 for

12 USC 635a

note.
110 STAT. 3009–123 PUBLIC LAW 104–208—SEPT. 30, 1996

the disbursement of direct and guaranteed loans obligated in fiscal

year 1997, and through fiscal year 2006 for the disbursement of

direct and guaranteed loans obligated in fiscal year 1998: Provided

further, That section 235(a)(3) of the Foreign Assistance Act of

1961 (22 U.S.C. 2195(a)(3)) is amended by striking out ‘‘1996’’

and inserting in lieu thereof ‘‘1997’’ and, notwithstanding section

235(a)(1) of the Foreign Assistance Act of 1961 (22 U.S.C.

2195(a)(1)), the maximum contingent liability of issuing authority

for insurance and financing shall not in the aggregate exceed the

amounts provided in section 235(a)(1) and (2) of that Act. In addition, such sums as may be necessary for administrative expenses

to carry out the credit program may be derived from amounts

available for administrative expenses to carry out the credit and

insurance programs in the Overseas Private Investment Corporation Noncredit Account and merged with said account.

FUNDS APPROPRIATED TO THE PRESIDENT

TRADE AND DEVELOPMENT AGENCY

For necessary expenses to carry out the provisions of section

661 of the Foreign Assistance Act of 1961, $40,000,000: Provided,

That the Trade and Development Agency may receive reimbursements from corporations and other entities for the costs of grants

for feasibility studies and other project planning services, to be

deposited as an offsetting collection to this account and to be available for obligation until September 30, 1998, for necessary expenses

under this paragraph: Provided further, That such reimbursements

shall not cover, or be allocated against, direct or indirect administrative costs of the agency.

TITLE II—BILATERAL ECONOMIC ASSISTANCE

FUNDS APPROPRIATED TO THE PRESIDENT

For expenses necessary to enable the President to carry out

the provisions of the Foreign Assistance Act of 1961, and for other

purposes, to remain available until September 30, 1997, unless

otherwise specified herein, as follows:

AGENCY FOR INTERNATIONAL DEVELOPMENT

CHILD SURVIVAL AND DISEASE PROGRAMS FUND

For necessary expenses to carry out the provisions of part

I and chapter 4 of part II of the Foreign Assistance Act of 1961,

for child survival, basic education, assistance to combat tropical

and other diseases, and related activities, in addition to funds

otherwise available for such purposes, $600,000,000, to remain

available until expended: Provided, That this amount shall be made

available for such activities as (1) immunization programs, (2) oral

rehydration programs, (3) health and nutrition programs, and

related education programs, which address the needs of mothers

and children, (4) water and sanitation programs, (5) assistance

for displaced and orphaned children, (6) programs for the prevention, treatment, and control of, and research on, tuberculosis, HIV/

AIDS, polio, malaria and other diseases, (7) not to exceed

$98,000,000 for basic education programs for children, and (8) a

contribution on a grant basis to the United Nations Children’s
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–124

Fund (UNICEF) pursuant to section 301 of the Foreign Assistance

Act of 1961.

DEVELOPMENT ASSISTANCE

(INCLUDING TRANSFER OF FUNDS)

For necessary expenses to carry out the provisions of sections

103 through 106 and chapter 10 of part I of the Foreign Assistance

Act of 1961, title V of the International Security and Development

Cooperation Act of 1980 (Public Law 96–533) and the provisions

of section 401 of the Foreign Assistance Act of 1969, $1,181,500,000,

to remain available until September 30, 1998: Provided, That of

the amount appropriated under this heading, up to $20,000,000

may be made available for the Inter-American Foundation and

shall be apportioned directly to that agency: Provided further, That

of the amount appropriated under this heading, up to $11,500,000

may be made available for the African Development Foundation

and shall be apportioned directly to that agency: Provided further,

That of the funds appropriated under title II of this Act that

are administered by the Agency for International Development and

made available for family planning assistance, not less than 65

percent shall be made available directly to the agency’s central

Office of Population and shall be programmed by that office for

family planning activities: Provided further, That of the funds

appropriated under this heading and under the heading ‘‘Child

Survival and Disease Programs Fund’’ that are made available

by the Agency for International Development for development

assistance activities, the amount made available to carry out chapter 10 of part I of the Foreign Assistance Act of 1961 (relating

to the Development Fund for Africa) and the amount made available

for activities in the Latin America and Caribbean region should

be in at least the same proportion as the amount identified in

the fiscal year 1997 draft congressional presentation document for

development assistance for each such region is to the total amount

requested for development assistance for such fiscal year: Provided

further, That funds appropriated under this heading may be made

available, notwithstanding any other provision of law except section

515 of this Act, to assist Vietnam to reform its trade regime (such

as through reform of its commercial and investment legal codes):

Provided further, That none of the funds made available in this

Act nor any unobligated balances from prior appropriations may

be made available to any organization or program which, as determined by the President of the United States, supports or participates in the management of a program of coercive abortion or

involuntary sterilization: Provided further, That none of the funds

made available under this heading may be used to pay for the

performance of abortion as a method of family planning or to

motivate or coerce any person to practice abortions; and that in

order to reduce reliance on abortion in developing nations, funds

shall be available only to voluntary family planning projects which

offer, either directly or through referral to, or information about

access to, a broad range of family planning methods and services:

Provided further, That in awarding grants for natural family planning under section 104 of the Foreign Assistance Act of 1961 no

applicant shall be discriminated against because of such applicant’s

religious or conscientious commitment to offer only natural family

planning; and, additionally, all such applicants shall comply with
110 STAT. 3009–125 PUBLIC LAW 104–208—SEPT. 30, 1996

the requirements of the previous proviso: Provided further, That

for purposes of this or any other Act authorizing or appropriating

funds for foreign operations, export financing, and related programs,

the term ‘‘motivate’’, as it relates to family planning assistance,

shall not be construed to prohibit the provision, consistent with

local law, of information or counseling about all pregnancy options:

Provided further, That nothing in this paragraph shall be construed

to alter any existing statutory prohibitions against abortion under

section 104 of the Foreign Assistance Act of 1961: Provided further,

That, notwithstanding section 109 of the Foreign Assistance Act

of 1961, of the funds appropriated under this heading in this Act,

and of the unobligated balances of funds previously appropriated

under this heading, up to $17,500,000 may be transferred to ‘‘International Organizations and Programs’’ for a contribution to the

International Fund for Agricultural Development (IFAD), and that

any such transfer of funds shall be subject to the regular notification

procedures of the Committees on Appropriations: Provided further,

That of the funds appropriated under this heading that are made

available for assistance programs for displaced and orphaned children and victims of war, not to exceed $25,000, in addition to

funds otherwise available for such purposes, may be used to monitor

and provide oversight of such programs: Provided further, That

not less than $500,000 of the funds made available under this

heading shall be available only for support of the United States

Telecommunications Training Institute.

CYPRUS

Of the funds appropriated under the headings ‘‘Development

Assistance’’ and ‘‘Economic Support Fund’’, not less than

$15,000,000 shall be made available for Cyprus to be used only

for scholarships, administrative support of the scholarship program,

bicommunal projects, and measures aimed at reunification of the

island and designed to reduce tensions and promote peace and

cooperation between the two communities on Cyprus.

BURMA

Of the funds appropriated by this Act to carry out the provisions

of chapter 4 of part II of the Foreign Assistance Act of 1961,

not less than $2,500,000 shall be made available to support activities in Burma, along the Burma-Thailand border, and for activities

of Burmese student groups and other organizations located outside

Burma, for the purposes of fostering democracy in Burma, supporting the provision of medical supplies and other humanitarian assistance to Burmese located in Burma or displaced Burmese along

the borders, and for other purposes: Provided, That of this amount,

not less than $200,000 shall be made available to support newspapers, publications, and other media activities promoting democracy inside Burma: Provided further, That funds made available

under this heading may be made available notwithstanding any

other provision of law: Provided further, That provision of such

funds shall be made available subject to the regular notification

procedures of the Committees on Appropriations.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–126

PRIVATE AND VOLUNTARY ORGANIZATIONS

None of the funds appropriated or otherwise made available

by this Act for development assistance may be made available

to any United States private and voluntary organization, except

any cooperative development organization, which obtains less than

20 per centum of its total annual funding for international activities

from sources other than the United States Government: Provided, That the requirements of the provisions of section 123(g) of the

Foreign Assistance Act of 1961 and the provisions on private and

voluntary organizations in title II of the ‘‘Foreign Assistance and

Related Programs Appropriations Act, 1985’’ (as enacted in Public

Law 98–473) shall be superseded by the provisions of this section,

except that the authority contained in the last sentence of section

123(g) may be exercised by the Administrator with regard to the

requirements of this paragraph.

Funds appropriated or otherwise made available under title

II of this Act should be made available to private and voluntary

organizations at a level which is equivalent to the level provided

in fiscal year 1995. Such private and voluntary organizations shall

include those which operate on a not-for-profit basis, receive contributions from private sources, receive voluntary support from

the public and are deemed to be among the most cost-effective

and successful providers of development assistance.

INTERNATIONAL DISASTER ASSISTANCE

For necessary expenses for international disaster relief,

rehabilitation, and reconstruction assistance pursuant to section

491 of the Foreign Assistance Act of 1961, as amended,

$190,000,000, to remain available until expended.

DEBT RESTRUCTURING

For the cost, as defined in section 502 of the Congressional

Budget Act of 1974, of modifying direct loans and loan guarantees,

as the President may determine, for which funds have been appropriated or otherwise made available for programs within the International Affairs Budget Function 150, including the cost of selling,

reducing, or canceling amounts, through debt buybacks and swaps,

owed to the United States as a result of concessional loans made

to eligible Latin American and Caribbean countries, pursuant to

part IV of the Foreign Assistance Act of 1961, and of modifying

concessional loans authorized under title I of the Agricultural Trade

Development and Assistance Act of 1954, as amended, as authorized

under subsection (a) under the heading ‘‘Debt Reduction for Jordan’’

in title VI of Public Law 103–306; $27,000,000, to remain available

until expended: Provided, That none of the funds appropriated

under this heading shall be obligated except as provided through

the regular notification procedures of the Committees on Appropriations.

MICRO AND SMALL ENTERPRISE DEVELOPMENT PROGRAM ACCOUNT

For the cost of direct loans and loan guarantees, $1,500,000,

as authorized by section 108 of the Foreign Assistance Act of 1961,

as amended: Provided, That such costs shall be as defined in section

502 of the Congressional Budget Act of 1974: Provided further, That guarantees of loans made under this heading in support

22 USC 2151u

note.
110 STAT. 3009–127 PUBLIC LAW 104–208—SEPT. 30, 1996

of microenterprise activities may guarantee up to 70 percent of

the principal amount of any such loans notwithstanding section

108 of the Foreign Assistance Act of 1961. In addition, for administrative expenses to carry out programs under this heading,

$500,000, all of which may be transferred to and merged with

the appropriation for Operating Expenses of the Agency for International Development: Provided further, That funds made available

under this heading shall remain available until September 30,

1998.

HOUSING GUARANTY PROGRAM ACCOUNT

For the cost, as defined in section 502 of the Congressional

Budget Act of 1974, of guaranteed loans authorized by sections

221 and 222 of the Foreign Assistance Act of 1961, $3,500,000,

to remain available until September 30, 1998: Provided, That these

funds are available to subsidize loan principal, 100 percent of which

shall be guaranteed, pursuant to the authority of such sections.

In addition, for administrative expenses to carry out guaranteed

loan programs, $6,000,000, all of which may be transferred to

and merged with the appropriation for Operating Expenses of the

Agency for International Development: Provided further, That

commitments to guarantee loans under this heading may be entered

into notwithstanding the second and third sentences of section

222(a) and, with regard to programs for Central and Eastern Europe

and programs for the benefit of South Africans disadvantaged by

apartheid, section 223(j) of the Foreign Assistance Act of 1961.

PAYMENT TO THE FOREIGN SERVICE RETIREMENT AND DISABILITY

FUND

For payment to the ‘‘Foreign Service Retirement and Disability

Fund’’, as authorized by the Foreign Service Act of 1980,

$43,826,000.

OPERATING EXPENSES OF THE AGENCY FOR INTERNATIONAL

DEVELOPMENT

For necessary expenses to carry out the provisions of section

667, $470,750,000: Provided, That none of the funds appropriated

by this Act for programs administered by the Agency for International Development may be used to finance printing costs of

any report or study (except feasibility, design, or evaluation reports

or studies) in excess of $25,000 without the approval of the Administrator of the Agency or the Administrator’s designee.

OPERATING EXPENSES OF THE AGENCY FOR INTERNATIONAL

DEVELOPMENT OFFICE OF INSPECTOR GENERAL

For necessary expenses to carry out the provisions of section

667, $30,000,000, to remain available until September 30, 1998,

which sum shall be available for the Office of the Inspector General

of the Agency for International Development.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–128

OTHER BILATERAL ECONOMIC ASSISTANCE

ECONOMIC SUPPORT FUND

For necessary expenses to carry out the provisions of chapter

4 of part II, $2,343,000,000, to remain available until September

30, 1998: Provided, That of the funds appropriated under this

heading, not less than $1,200,000,000 shall be available only for

Israel, which sum shall be available on a grant basis as a cash

transfer and shall be disbursed within thirty days of enactment

of this Act or by October 31, 1996, whichever is later: Provided

further, That not less than $815,000,000 shall be available only

for Egypt, which sum shall be provided on a grant basis, and

of which sum cash transfer assistance may be provided, with the

understanding that Egypt will undertake significant economic

reforms which are additional to those which were undertaken in

previous fiscal years, and of which not less than $200,000,000

shall be provided as Commodity Import Program assistance: Provided further, That in exercising the authority to provide cash

transfer assistance for Israel and Egypt, the President shall ensure

that the level of such assistance does not cause an adverse impact

on the total level of nonmilitary exports from the United States

to each such country: Provided further, That it is the sense of

the Congress that the recommended levels of assistance for Egypt

and Israel are based in great measure upon their continued participation in the Camp David Accords and upon the Egyptian-Israeli

peace treaty: Provided further, That none of the funds appropriated

under this heading shall be made available for Zaire.

INTERNATIONAL FUND FOR IRELAND

For necessary expenses to carry out the provisions of chapter

4 of part II of the Foreign Assistance Act of 1961, $19,600,000,

which shall be available for the United States contribution to the

International Fund for Ireland and shall be made available in

accordance with the provisions of the Anglo-Irish Agreement Support Act of 1986 (Public Law 99–415): Provided, That such amount

shall be expended at the minimum rate necessary to make timely

payment for projects and activities: Provided further, That funds

made available under this heading shall remain available until

September 30, 1998.

ASSISTANCE FOR EASTERN EUROPE AND THE BALTIC STATES

(a) For necessary expenses to carry out the provisions of the

Foreign Assistance Act of 1961 and the Support for East European

Democracy (SEED) Act of 1989, $475,000,000, to remain available

until September 30, 1998, which shall be available, notwithstanding

any other provision of law, for economic assistance and for related

programs for Eastern Europe and the Baltic States.

(b) Funds appropriated under this heading or in prior appropriations Acts that are or have been made available for an Enterprise Fund may be deposited by such Fund in interest-bearing

accounts prior to the Fund’s disbursement of such funds for program

purposes. The Fund may retain for such program purposes any

interest earned on such deposits without returning such interest

to the Treasury of the United States and without further appropriation by the Congress. Funds made available for Enterprise Funds
110 STAT. 3009–129 PUBLIC LAW 104–208—SEPT. 30, 1996

shall be expended at the minimum rate necessary to make timely

payment for projects and activities.

(c) Funds appropriated under this heading shall be considered

to be economic assistance under the Foreign Assistance Act of

1961 for purposes of making available the administrative authorities contained in that Act for the use of economic assistance.

(d) None of the funds appropriated under this heading may

be made available for new housing construction or repair or

reconstruction of existing housing in Bosnia and Herzegovina unless

directly related to the efforts of United States troops to promote

peace in said country.

(e) With regard to funds appropriated or otherwise made available under this heading for the economic revitalization program

in Bosnia and Herzegovina, and local currencies generated by such

funds (including the conversion of funds appropriated under this

heading into currency used by Bosnia and Herzegovina as local

currency and local currency returned or repaid under such program)—

(1) the Administrator of the Agency for International Development shall provide written approval for grants and loans

prior to the obligation and expenditure of funds for such purposes, and prior to the use of funds that have been returned

or repaid to any lending facility or grantee; and

(2) the provisions of section 531 of this Act shall apply.

(f) With regard to funds appropriated under this heading that

are made available for economic revitalization programs in Bosnia

and Herzegovina, 50 percent of such funds shall not be available

for obligation unless the President determines and certifies to the

Committees on Appropriations that the Federation of Bosnia and

Herzegovina has complied with article III of annex 1–A of the

General Framework Agreement for Peace in Bosnia and

Herzegovina concerning the withdrawal of foreign forces, and that

intelligence cooperation on training, investigations, and related

activities between Iranian officials and Bosnian officials has been

terminated.

ASSISTANCE FOR THE NEW INDEPENDENT STATES OF THE FORMER

SOVIET UNION

(a) For necessary expenses to carry out the provisions of chapter

11 of part I of the Foreign Assistance Act of 1961 and the FREEDOM Support Act, for assistance for the new independent states

of the former Soviet Union and for related programs, $625,000,000,

to remain available until September 30, 1998: Provided, That the

provisions of such chapter shall apply to funds appropriated by

this paragraph.

(b) None of the funds appropriated under this heading shall

be transferred to the Government of Russia—

(1) unless that Government is making progress in

implementing comprehensive economic reforms based on market principles, private ownership, negotiating repayment of

commercial debt, respect for commercial contracts, and equitable treatment of foreign private investment; and

(2) if that Government applies or transfers United States

assistance to any entity for the purpose of expropriating or

seizing ownership or control of assets, investments, or ventures.

(c) Funds may be furnished without regard to subsection (b)

if the President determines that to do so is in the national interest.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–130

(d) None of the funds appropriated under this heading shall

be made available to any government of the new independent

states of the former Soviet Union if that government directs any

action in violation of the territorial integrity or national sovereignty

of any other new independent state, such as those violations

included in the Helsinki Final Act: Provided, That such funds

may be made available without regard to the restriction in this

subsection if the President determines that to do so is in the

national security interest of the United States: Provided further,

That the restriction of this subsection shall not apply to the use

of such funds for the provision of assistance for purposes of humanitarian, disaster and refugee relief.

(e) None of the funds appropriated under this heading for

the new independent states of the former Soviet Union shall be

made available for any state to enhance its military capability:

Provided, That restriction does not apply to demilitarization or

nonproliferation programs.

(f) Funds appropriated under this heading shall be subject

to the regular notification procedures of the Committees on Appropriations.

(g) Funds made available in this Act for assistance to the

new independent states of the former Soviet Union shall be subject

to the provisions of section 117 (relating to environment and natural

resources) of the Foreign Assistance Act of 1961.

(h)(1) Of the funds appropriated under title II of this Act,

including funds appropriated under this heading, not less than

$10,000,000 shall be available only for assistance for Mongolia,

of which amount not less than $6,000,000 shall be available only

for the Mongolian energy sector.

(2) Funds made available for assistance for Mongolia may be

made available in accordance with the purposes and utilizing the

authorities provided in chapter 11 of part I of the Foreign Assistance

Act of 1961.

(i) Funds made available in this Act for assistance to the

New Independent States of the former Soviet Union shall be provided to the maximum extent feasible through the private sector,

including small- and medium-size businesses, entrepreneurs, and

others with indigenous private enterprises in the region,

intermediary development organizations committed to private enterprise, and private voluntary organizations: Provided, That grantees

and contractors should, to the maximum extent possible, place

in key staff positions specialists with prior on the ground expertise

in the region of activity and fluency in one of the local languages.

(j) In issuing new task orders, entering into contracts, or making grants, with funds appropriated under this heading or in prior

appropriations Acts, for projects or activities that have as one

of their primary purposes the fostering of private sector development, the Coordinator for United States Assistance to the New

Independent States and the implementing agency shall encourage

the participation of and give significant weight to contractors and

grantees who propose investing a significant amount of their own

resources (including volunteer services and in-kind contributions)

in such projects and activities.

(k) Of the funds made available under this heading, not less

than $225,000,000 shall be made available for Ukraine, of which

funds not less than $25,000,000 shall be made available to carry

out United States decommissioning obligations regarding the

22 USC 5814

note.
110 STAT. 3009–131 PUBLIC LAW 104–208—SEPT. 30, 1996

Chornobyl plant made in the Memorandum of Understanding

between the Government of Ukraine and the G–7 Group: Provided,

That not less than $35,000,000 shall be made available for agricultural projects, including those undertaken through the Food Systems Restructuring Program, which leverage private sector

resources with United States Government assistance: Provided further, That $5,000,000 shall be available for a small business incubator project: Provided further, That $5,000,000 shall be made available for screening and treatment of childhood mental and physical

illnesses related to Chornobyl radiation: Provided further, That

$5,000,000 shall be available only for a land and resource management institute to identify nuclear contamination at Chornobyl: Provided further, That $15,000,000 shall be available for the legal

restructuring necessary to support a decentralized market-oriented

economic system, including enactment of necessary substantive

commercial law, implementation of reforms necessary to establish

an independent judiciary and bar, legal education for judges, attorneys, and law students, and education of the public designed to

promote understanding of a law-based economy.

(l) Of the funds made available for Ukraine, under this Act

and Public Law 104–107, not less than $50,000,000 shall be made

available to improve safety at nuclear reactors: Provided, That

of this amount $20,000,000 shall be provided for the purchase

and installation of, and training for, safety parameter display or

control systems at all operational nuclear reactors: Provided further,

That of this amount, $20,000,000 shall be made available for the

purchase, construction, installation and training for Full Scope and

Analytical/Engineering simulators: Provided further, That of this

amount funds shall be made available to conduct Safety Analysis

Reports at all operational nuclear reactors.

(m) Of the funds made available by this Act, not less than

$95,000,000 shall be made available for Armenia.

(n) Funds appropriated under this heading or in prior appropriations Acts that are or have been made available for an Enterprise Fund may be deposited by such Fund in interest-bearing

accounts prior to the disbursement of such funds by the Fund

for program purposes. The Fund may retain for such program

proposes any interest earned on such deposits without returning

such interest to the Treasury of the United States and without

further appropriation by the Congress. Funds made available for

Enterprise Funds shall be expended at the minimum rate necessary

to make timely payment for projects and activities.

(o)(1) None of the funds appropriated under this heading may

be made available for Russia unless the President determines and

certifies in writing to the Committees on Appropriations that the

Government of Russia has terminated implementation of arrangements to provide Iran with technical expertise, training, technology,

or equipment necessary to develop a nuclear reactor or related

nuclear research facilities or programs.

(2) Paragraph (1) shall not apply if the President determines

that making such funds available is important to the national

security interest of the United States. Any such determination

shall cease to be effective six months after being made unless

the President determines that its continuation is important to the

national security interest of the United States.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–132

(p) Of the funds made available under this heading, not less

than $10,000,000 shall be made available for a United States contribution to the Trans-Caucasus Enterprise Fund: Provided, That

to further the development of the private sector in the TransCaucasus, such amount and amounts appropriated for purposes

of subsection (t) under the heading ‘‘Assistance for the New

Independent States of the Former Soviet Union’’ in Public Law

104–107 may be invested in a Trans-Caucasus Enterprise Fund

or, notwithstanding the provisions of such subsection, invested in

other funds established by public or private organizations, or transferred to the Overseas Private Investment Corporation to be available, subject to the requirements of the Federal Credit Reform

Act, to subsidize the costs of direct and guaranteed loans.

(q)(1) Funds appropriated under this heading may not be made

available for the Government of Ukraine if the President determines

and reports to the Committees on Appropriations that the Government of Ukraine is engaged in military cooperation with the Government of Libya.

(2) Paragraph (1) shall not apply if the President determines

that making such funds available is important to the national

security interest of the United States. Any such determination

shall cease to be effective six months after being made unless

the President determines that its continuation is important to the

national security interest of the United States.

(r) Of the funds appropriated under this heading, not less

than $15,000,000 should be available only for a family planning

program for the New Independent States of the former Soviet

Union comparable to the family planning program currently

administered by the Agency for International Development in the

Central Asian Republics and focusing on population assistance

which provides an alternative to abortion.

(s) Funds made available under this Act or any other Act

(other than assistance under title V of the FREEDOM Support

Act and section 1424 of the ‘‘National Defense Authorization Act

for Fiscal Year 1997’’) may not be provided for assistance to the

Government of Azerbaijan until the President determines, and so

reports to the Congress, that the Government of Azerbaijan is

taking demonstrable steps to cease all blockades and other offensive

uses of force against Armenia and Nagorno-Karabakh.

(t) Of the funds appropriated under this heading, not less

than $2,500,000 shall be made available for the American-Russian

Center.

INDEPENDENT AGENCY

PEACE CORPS

For expenses necessary to carry out the provisions of the Peace

Corps Act (75 Stat. 612), $208,000,000, including the purchase

of not to exceed five passenger motor vehicles for administrative

purposes for use outside of the United States: Provided, That none

of the funds appropriated under this heading shall be used to

pay for abortions: Provided further, That funds appropriated under

this heading shall remain available until September 30, 1998.
110 STAT. 3009–133 PUBLIC LAW 104–208—SEPT. 30, 1996

DEPARTMENT OF STATE

INTERNATIONAL NARCOTICS CONTROL

For necessary expenses to carry out section 481 of the Foreign

Assistance Act of 1961, $213,000,000: Provided, That during fiscal

year 1997, the Department of State may also use the authority

of section 608 of the Foreign Assistance Act of 1961, without regard

to its restrictions, to receive non-lethal excess property from an

agency of the United States Government for the purpose of providing it to a foreign country under chapter 8 of part I of that Act

subject to the regular notification procedures of the Committees

on Appropriations: Provided further, That none of the funds made

available under this heading may be provided to any unit of the

security forces of a foreign country if the Secretary of State has

credible evidence to believe such unit has committed gross violations

of human rights unless the Secretary determines and reports to

the Committees on Appropriations that the government of such

country is taking steps to bring the responsible members of the

security forces unit to justice.

MIGRATION AND REFUGEE ASSISTANCE

For expenses, not otherwise provided for, necessary to enable

the Secretary of State to provide, as authorized by law, a contribution to the International Committee of the Red Cross, assistance

to refugees, including contributions to the International Organization for Migration and the United Nations High Commissioner

for Refugees, and other activities to meet refugee and migration

needs; salaries and expenses of personnel and dependents as authorized by the Foreign Service Act of 1980; allowances as authorized

by sections 5921 through 5925 of title 5, United States Code;

purchase and hire of passenger motor vehicles; and services as

authorized by section 3109 of title 5, United States Code,

$650,000,000: Provided, That not more than $12,000,000 shall be

available for administrative expenses: Provided further, That not

less than $80,000,000 shall be made available for refugees from

the former Soviet Union and Eastern Europe and other refugees

resettling in Israel.

REFUGEE RESETTLEMENT ASSISTANCE

For necessary expenses for the targeted assistance program

authorized by title IV of the Immigration and Nationality Act

and section 501 of the Refugee Education Assistance Act of 1980

and administered by the Office of Refugee Resettlement of the

Department of Health and Human Services, in addition to amounts

otherwise available for such purposes, $5,000,000.

UNITED STATES EMERGENCY REFUGEE AND MIGRATION ASSISTANCE

FUND

For necessary expenses to carry out the provisions of section

2(c) of the Migration and Refugee Assistance Act of 1962, as amended (22 U.S.C. 260(c)), $50,000,000, to remain available until

expended: Provided, That the funds made available under this

heading are appropriated notwithstanding the provisions contained

in section 2(c)(2) of the Migration and Refugee Assistance Act
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–134

of 1962 which would limit the amount of funds which could be

appropriated for this purpose.

NONPROLIFERATION, ANTI-TERRORISM, DEMINING AND RELATED

PROGRAMS

For necessary expenses for nonproliferation, anti-terrorism and related programs and activities, $133,000,000, to carry out the

provisions of chapter 8 of part II of the Foreign Assistance Act

of 1961 for anti-terrorism assistance, section 504 of the FREEDOM

Support Act for the Nonproliferation and Disarmament Fund, section 23 of the Arms Export Control Act for demining activities,

notwithstanding any other provision of law, including activities

implemented through nongovernmental and international organizations, section 301 of the Foreign Assistance Act of 1961 for a

voluntary contribution to the International Atomic Energy Agency

(IAEA) and a voluntary contribution to the Korean Peninsula

Energy Development Organization (KEDO), and for the acquisition

and provision of goods and services, or for grants to Israel necessary

to support the eradication of terrorism in and around Israel: Provided, That of this amount not to exceed $15,000,000, to remain

available until expended, may be made available for the Nonproliferation and Disarmament Fund, notwithstanding any other

provision of law, to promote bilateral and multilateral activities

relating to nonproliferation and disarmament: Provided further, That such funds may also be used for such countries other than

the new independent states of the former Soviet Union and international organizations when it is in the national security interest

of the United States to do so: Provided further, That such funds

shall be subject to the regular notification procedures of the

Committees on Appropriations: Provided further, That funds appropriated under this heading may be made available for the International Atomic Energy Agency only if the Secretary of State determines (and so reports to the Congress) that Israel is not being

denied its right to participate in the activities of that Agency:

Provided further, That not to exceed $25,000,000 may be made

available to the Korean Peninsula Energy Development Organization (KEDO) only for the administrative expenses and heavy fuel

oil costs associated with the Agreed Framework: Provided further, That such funds may be obligated to KEDO only if, prior to such

obligation of funds, the President certifies and so reports to Congress that (1)(A) the United States is taking steps to assure that

progress is made on the implementation of the January 1, 1992,

Joint Declaration on the Denuclearization of the Korean Peninsula

and the implementation of the North-South dialogue, and (B) North

Korea is complying with the other provisions of the Agreed Framework between North Korea and the United States and with the

Confidential Minute; (2) North Korea is cooperating fully in the

canning and safe storage of all spent fuel from its graphite-moderated nuclear reactors and that such canning and safe storage

is scheduled to be completed by the end of fiscal year 1997; and

(3) North Korea has not significantly diverted assistance provided

by the United States for purposes for which it was not intended:

Provided further, That the President may waive the certification

requirements of the preceding proviso if the President determines

that it is vital to the national security interests of the United

States: Provided further, That no funds may be obligated for KEDO

until 30 calendar days after submission to Congress of the waiver
110 STAT. 3009–135 PUBLIC LAW 104–208—SEPT. 30, 1996

permitted under the preceding proviso: Provided further, That

before obligating any funds for KEDO, the President shall report

to Congress on (1) the cooperation of North Korea in the process

of returning to the United States the remains of United States

military personnel who are listed as missing in action as a result

of the Korean conflict (including conducting joint field activities

with the United States); (2) violations of the military armistice

agreement of 1953; (3) the actions which the United States is

taking to assure that North Korea is consistently taking steps

to implement the Joint Declaration on Denuclearization of the

Korean Peninsula and engage in North-South dialogue; and (4)

all instances of non-compliance with the Agreed Framework

between North Korea and the United States and the Confidential

Minute, including diversion of heavy fuel oil: Provided further,

That the obligation of such funds shall be subject to the regular

notification procedures of the Committees on Appropriations: Provided further, That the Secretary of State shall submit to the

appropriate congressional committees an annual report (to be

submitted with the annual presentation for appropriations) providing a full and detailed accounting of the fiscal year request for

the United States contribution to KEDO, the expected operating

budget of the Korean Peninsula Energy Development Organization,

to include proposed annual costs associated with heavy fuel oil

purchases and other related activities, and the amount of funds

pledged by other donor nations and organizations to support KEDO

activities on a per country basis.

TITLE III—MILITARY ASSISTANCE

FUNDS APPROPRIATED TO THE PRESIDENT

INTERNATIONAL MILITARY EDUCATION AND TRAINING

For necessary expenses to carry out the provisions of section

541 of the Foreign Assistance Act of 1961, $43,475,000: Provided,

That none of the funds appropriated under this heading shall be

available for Zaire and Guatemala: Provided further, That funds

appropriated under this heading for grant financed military education and training for Indonesia may only be available for expanded

international military education and training.

FOREIGN MILITARY FINANCING PROGRAM

For expenses necessary for grants to enable the President to

carry out the provisions of section 23 of the Arms Export Control

Act, $3,164,000,000: Provided, That of the funds appropriated by

this paragraph not less than $1,800,000,000 shall be available for

grants only for Israel, and not less than $1,300,000,000 shall be

available for grants only for Egypt: Provided further, That the

funds appropriated by this paragraph for Israel shall be disbursed

within thirty days of enactment of this Act or by October 31,

1996, whichever is later: Provided further, That to the extent that

the Government of Israel requests that funds be used for such

purposes, grants made available for Israel by this paragraph shall,

as agreed by Israel and the United States, be available for advanced

weapons systems, of which not less than $475,000,000 shall be

available for the procurement in Israel of defense articles and
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–136

defense services, including research and development: Provided further, That of the funds made available under this paragraph, $30,000,000 shall be available for assistance on a grant basis for

Poland, Hungary, and the Czech Republic to carry out title II

of Public Law 103–477 and section 585 of Public Law 104–107:

Provided further, That funds made available under this paragraph

shall be nonrepayable notwithstanding any requirement in section

23 of the Arms Export Control Act: Provided further, That, for

the purpose only of providing support for NATO expansion and

the Warsaw Initiative Program, of the funds appropriated by this

Act under the headings ‘‘Assistance for Eastern Europe and the

Baltic States’’ and ‘‘Assistance for the New Independent States

of the Former Soviet Union’’, up to a total of $7,000,000 may

be transferred, notwithstanding any other provision of law, to the

funds appropriated under this paragraph: Provided further, That

none of the funds made available under this heading shall be

available for any non-NATO country participating in the Partnership for Peace Program except through the regular notification

procedures of the Committees on Appropriations.

For the cost, as defined in section 502 of the Congressional

Budget Act of 1974, of direct loans authorized by section 23 of

the Arms Export Control Act as follows: cost of direct loans,

$60,000,000: Provided, That these funds are available to subsidize

gross obligations for the principal amount of direct loans of not

to exceed $540,000,000: Provided further, That the rate of interest

charged on such loans shall be not less than the current average

market yield on outstanding marketable obligations of the United

States of comparable maturities: Provided further, That of the funds

appropriated under this paragraph $20,000,000 shall be made available to Poland, Hungary, and the Czech Republic: Provided further,

That funds appropriated under this heading shall be made available

for Greece and Turkey only on a loan basis, and the principal

amount of direct loans for each country shall not exceed the following: $122,500,000 only for Greece and $175,000,000 only for Turkey.

None of the funds made available under this heading shall

be available to finance the procurement of defense articles, defense

services, or design and construction services that are not sold by

the United States Government under the Arms Export Control

Act unless the foreign country proposing to make such procurements

has first signed an agreement with the United States Government

specifying the conditions under which such procurements may be

financed with such funds: Provided, That all country and funding

level increases in allocations shall be submitted through the regular

notification procedures of section 515 of this Act: Provided further,

That funds made available under this heading shall be obligated

upon apportionment in accordance with paragraph (5)(C) of title

31, United States Code, section 1501(a): Provided further, That

none of the funds appropriated under this heading shall be available

for Zaire, Sudan, Liberia, and Guatemala: Provided further, That

funds made available under this heading may be used, notwithstanding any other provision of law, for activities related to the

clearance of landmines and unexploded ordnance, and may include

activities implemented through nongovernmental and international

organizations: Provided further, That only those countries for which

assistance was justified for the ‘‘Foreign Military Sales Financing

Program’’ in the fiscal year 1989 congressional presentation for

security assistance programs may utilize funds made available
110 STAT. 3009–137 PUBLIC LAW 104–208—SEPT. 30, 1996

under this heading for procurement of defense articles, defense

services or design and construction services that are not sold by

the United States Government under the Arms Export Control

Act: Provided further, That, subject to the regular notification procedures of the Committees on Appropriations, funds made available

under this heading for the cost of direct loans may also be used

to supplement the funds available under this heading for grants,

and funds made available under this heading for grants may also

be used to supplement the funds available under this heading

for the cost of direct loans: Provided further, That funds appropriated under this heading shall be expended at the minimum

rate necessary to make timely payment for defense articles and

services: Provided further, That not more than $23,250,000 of the

funds appropriated under this heading may be obligated for necessary expenses, including the purchase of passenger motor vehicles

for replacement only for use outside of the United States, for the

general costs of administering military assistance and sales: Provided further, That not more than $355,000,000 of funds realized

pursuant to section 21(e)(1)(A) of the Arms Export Control Act

may be obligated for expenses incurred by the Department of

Defense during fiscal year 1997 pursuant to section 43(b) of the

Arms Export Control Act, except that this limitation may be

exceeded only through the regular notification procedures of the

Committees on Appropriations.

TITLE IV—MULTILATERAL ECONOMIC ASSISTANCE

FUNDS APPROPRIATED TO THE PRESIDENT

INTERNATIONAL FINANCIAL INSTITUTIONS

CONTRIBUTION TO THE INTERNATIONAL BANK FOR RECONSTRUCTION

AND DEVELOPMENT

For payment to the International Bank for Reconstruction and

Development by the Secretary of the Treasury, for the United

States contribution to the Global Environment Facility (GEF),

$35,000,000, to remain available until September 30, 1998.

CONTRIBUTION TO THE INTERNATIONAL DEVELOPMENT ASSOCIATION

For payment to the International Development Association by

the Secretary of the Treasury, $700,000,000, for the United States

contribution to the tenth replenishment, to remain available until

expended: Provided, That none of the funds may be obligated before

March 1, 1997: Provided further, That not less than twenty days

before such funds are obligated, the Secretary of the Treasury

shall submit a report to the Committees on Appropriations on

his efforts to reach agreement with the other IDA–11 donors, including at the February 1997 IDA–11 donors review meeting, that

the procurement restrictions in the Interim Trust Fund will be

lifted.

CONTRIBUTION TO THE INTERNATIONAL FINANCE CORPORATION

For payment to the International Finance Corporation by the

Secretary of the Treasury, $6,656,000, for the United States share

of the increase in subscriptions to capital stock, to remain available

until expended.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–138

CONTRIBUTION TO THE INTER-AMERICAN DEVELOPMENT BANK

For payment to the Inter-American Development Bank by the

Secretary of the Treasury, for the United States share of the paidin share portion of the increase in capital stock, $25,610,667, and

for the United States share of the increase in the resources of

the Fund for Special Operations, $10,000,000, to remain available

until expended.

LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

The United States Governor of the Inter-American Development

Bank may subscribe without fiscal year limitation to the callable

capital portion of the United States share of such capital stock

in an amount not to exceed $1,503,718,910.

CONTRIBUTION TO THE ENTERPRISE FOR THE AMERICAS

MULTILATERAL INVESTMENT FUND

For payment to the Enterprise for the Americas Multilateral

Investment Fund by the Secretary of the Treasury, for the United

States contribution to the Fund to be administered by the InterAmerican Development Bank, $27,500,000 to remain available until

expended.

CONTRIBUTION TO THE ASIAN DEVELOPMENT BANK

For payment to the Asian Development Bank by the Secretary

of the Treasury for the United States share of the paid-in portion

of the increase in capital stock, $13,221,596, to remain available

until expended.

LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

The United States Governor of the Asian Development Bank

may subscribe without fiscal year limitation to the callable capital

portion of the United States share of such capital stock in an

amount not to exceed $647,858,204.

CONTRIBUTION TO THE ASIAN DEVELOPMENT FUND

For the United States contribution by the Secretary of the

Treasury to the increases in resources of the Asian Development

Fund, as authorized by the Asian Development Bank Act, as amended (Public Law 89–369), $100,000,000, to remain available until

expended.

CONTRIBUTION TO THE EUROPEAN BANK FOR RECONSTRUCTION AND

DEVELOPMENT

For payment to the European Bank for Reconstruction and

Development by the Secretary of the Treasury, $11,916,447, for

the United States share of the paid-in share portion of the initial

capital subscription, to remain available until expended.

LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

The United States Governor of the European Bank for

Reconstruction and Development may subscribe without fiscal year
110 STAT. 3009–139 PUBLIC LAW 104–208—SEPT. 30, 1996

limitation to the callable capital portion of the United States share

of such capital stock in an amount not to exceed $27,805,043.

NORTH AMERICAN DEVELOPMENT BANK

For payment to the North American Development Bank by

the Secretary of the Treasury, for the United States share of the

paid-in portion of the capital stock, $56,000,000, to remain available

until expended.

LIMITATION ON CALLABLE CAPITAL SUBSCRIPTIONS

The United States Governor of the North American Development Bank may subscribe without fiscal year limitation to the

callable capital portion of the United States share of the capital

stock of the North American Development Bank in an amount

not to exceed $318,750,000.

INTERNATIONAL ORGANIZATIONS AND PROGRAMS

For necessary expenses to carry out the provisions of section

301 of the Foreign Assistance Act of 1961, and of section 2 of

the United Nations Environment Program Participation Act of 1973,

$169,950,000: Provided, That none of the funds appropriated under

this heading shall be made available for the United Nations Fund

for Science and Technology: Provided further, That none of the

funds appropriated under this heading that are made available

to the United Nations Population Fund (UNFPA) shall be made

available for activities in the People’s Republic of China: Provided

further, That not more than $25,000,000 of the funds appropriated

under this heading may be made available to the UNFPA: Provided

further, That not more than one-half of this amount may be provided

to UNFPA before March 1, 1997, and that no later than February

15, 1997, the Secretary of State shall submit a report to the Committees on Appropriations indicating the amount UNFPA is budgeting

for the People’s Republic of China in 1997: Provided further, That

any amount UNFPA plans to spend in the People’s Republic of

China in 1997 shall be deducted from the amount of funds provided

to UNFPA after March 1, 1997, pursuant to the previous provisos:

Provided further, That with respect to any funds appropriated under

this heading that are made available to UNFPA, UNFPA shall

be required to maintain such funds in a separate account and

not commingle them with any other funds: Provided further, That

none of the funds appropriated under this heading may be made

available to the Korean Peninsula Energy Development Organization (KEDO) or the International Atomic Energy Agency (IAEA).

TITLE V—GENERAL PROVISIONS

OBLIGATIONS DURING LAST MONTH OF AVAILABILITY

SEC. 501. Except for the appropriations entitled ‘‘International

Disaster Assistance’’, and ‘‘United States Emergency Refugee and

Migration Assistance Fund’’, not more than 15 per centum of any

appropriation item made available by this Act shall be obligated

during the last month of availability.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–140

PROHIBITION OF BILATERAL FUNDING FOR INTERNATIONAL FINANCIAL

INSTITUTIONS

SEC. 502. None of the funds contained in title II of this Act

may be used to carry out the provisions of section 209(d) of the

Foreign Assistance Act of 1961.

LIMITATION ON RESIDENCE EXPENSES

SEC. 503. Of the funds appropriated or made available pursuant

to this Act, not to exceed $126,500 shall be for official residence

expenses of the Agency for International Development during the

current fiscal year: Provided, That appropriate steps shall be taken

to assure that, to the maximum extent possible, United Statesowned foreign currencies are utilized in lieu of dollars.

LIMITATION ON EXPENSES

SEC. 504. Of the funds appropriated or made available pursuant

to this Act, not to exceed $5,000 shall be for entertainment expenses

of the Agency for International Development during the current

fiscal year.

LIMITATION ON REPRESENTATIONAL ALLOWANCES

SEC. 505. Of the funds appropriated or made available pursuant

to this Act, not to exceed $95,000 shall be available for representation allowances for the Agency for International Development during the current fiscal year: Provided, That appropriate steps shall

be taken to assure that, to the maximum extent possible, United

States-owned foreign currencies are utilized in lieu of dollars: Provided further, That of the funds made available by this Act for

general costs of administering military assistance and sales under

the heading ‘‘Foreign Military Financing Program’’, not to exceed

$2,000 shall be available for entertainment expenses and not to

exceed $50,000 shall be available for representation allowances:

Provided further, That of the funds made available by this Act

under the heading ‘‘International Military Education and Training’’,

not to exceed $50,000 shall be available for entertainment allowances: Provided further, That of the funds made available by this

Act for the Inter-American Foundation, not to exceed $2,000 shall

be available for entertainment and representation allowances: Provided further, That of the funds made available by this Act for

the Peace Corps, not to exceed a total of $4,000 shall be available

for entertainment expenses: Provided further, That of the funds

made available by this Act under the heading ‘‘Trade and Development Agency’’, not to exceed $2,000 shall be available for representation and entertainment allowances.

PROHIBITION ON FINANCING NUCLEAR GOODS

SEC. 506. None of the funds appropriated or made available

(other than funds for ‘‘Nonproliferation, Antiterrorism, Demining

and Related Programs’’) pursuant to this Act, for carrying out

the Foreign Assistance Act of 1961, may be used, except for purposes

of nuclear safety, to finance the export of nuclear equipment, fuel,

or technology.
110 STAT. 3009–141 PUBLIC LAW 104–208—SEPT. 30, 1996

PROHIBITION AGAINST DIRECT FUNDING FOR CERTAIN COUNTRIES

SEC. 507. None of the funds appropriated or otherwise made

available pursuant to this Act shall be obligated or expended to

finance directly any assistance or reparations to Cuba, Iraq, Libya,

North Korea, Iran, Sudan, or Syria: Provided, That for purposes

of this section, the prohibition on obligations or expenditures shall

include direct loans, credits, insurance and guarantees of the

Export-Import Bank or its agents.

MILITARY COUPS

SEC. 508. None of the funds appropriated or otherwise made

available pursuant to this Act shall be obligated or expended to

finance directly any assistance to any country whose duly elected

Head of Government is deposed by military coup or decree: Provided, That assistance may be resumed to such country if the

President determines and reports to the Committees on Appropriations that subsequent to the termination of assistance a democratically elected government has taken office.

TRANSFERS BETWEEN ACCOUNTS

SEC. 509. None of the funds made available by this Act may

be obligated under an appropriation account to which they were

not appropriated, except for transfers specifically provided for in

this Act, unless the President, prior to the exercise of any authority

contained in the Foreign Assistance Act of 1961 to transfer funds,

consults with and provides a written policy justification to the

Committees on Appropriations of the House of Representatives and

the Senate.

DEOBLIGATION/REOBLIGATION AUTHORITY

SEC. 510. (a) Amounts certified pursuant to section 1311 of

the Supplemental Appropriations Act, 1955, as having been obligated against appropriations heretofore made under the authority

of the Foreign Assistance Act of 1961 for the same general purpose

as any of the headings under title II of this Act are, if deobligated,

hereby continued available for the same period as the respective

appropriations under such headings or until September 30, 1997,

whichever is later, and for the same general purpose, and for

countries within the same region as originally obligated: Provided,

That the Appropriations Committees of both Houses of the Congress

are notified fifteen days in advance of the reobligation of such

funds in accordance with regular notification procedures of the

Committees on Appropriations.

(b) Obligated balances of funds appropriated to carry out section

23 of the Arms Export Control Act as of the end of the fiscal

year immediately preceding the current fiscal year are, if

deobligated, hereby continued available during the current fiscal

year for the same purpose under any authority applicable to such

appropriations under this Act: Provided, That the authority of this

subsection may not be used in fiscal year 1997.

AVAILABILITY OF FUNDS

SEC. 511. No part of any appropriation contained in this Act

shall remain available for obligation after the expiration of the
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–142

current fiscal year unless expressly so provided in this Act: Provided, That funds appropriated for the purposes of chapters 1,

8, and 11 of part I, section 667, and chapter 4 of part II of

the Foreign Assistance Act of 1961, as amended, and funds provided

under the heading ‘‘Assistance for Eastern Europe and the Baltic

States’’, shall remain available until expended if such funds are

initially obligated before the expiration of their respective periods

of availability contained in this Act: Provided further, That, notwithstanding any other provision of this Act, any funds made available

for the purposes of chapter 1 of part I and chapter 4 of part

II of the Foreign Assistance Act of 1961 which are allocated or

obligated for cash disbursements in order to address balance of

payments or economic policy reform objectives, shall remain available until expended: Provided further, That the report required

by section 653(a) of the Foreign Assistance Act of 1961 shall designate for each country, to the extent known at the time of submission of such report, those funds allocated for cash disbursement

for balance of payment and economic policy reform purposes.

LIMITATION ON ASSISTANCE TO COUNTRIES IN DEFAULT

SEC. 512. No part of any appropriation contained in this Act

shall be used to furnish assistance to any country which is in

default during a period in excess of one calendar year in payment

to the United States of principal or interest on any loan made

to such country by the United States pursuant to a program for

which funds are appropriated under this Act: Provided, That this

section and section 620(q) of the Foreign Assistance Act of 1961

shall not apply to funds made available in this Act or during

the current fiscal year for Nicaragua, and for any narcotics-related

assistance for Colombia, Bolivia, and Peru authorized by the Foreign

Assistance Act of 1961 or the Arms Export Control Act.

COMMERCE AND TRADE

SEC. 513. (a) None of the funds appropriated or made available

pursuant to this Act for direct assistance and none of the funds

otherwise made available pursuant to this Act to the Export-Import

Bank and the Overseas Private Investment Corporation shall be

obligated or expended to finance any loan, any assistance or any

other financial commitments for establishing or expanding production of any commodity for export by any country other than the

United States, if the commodity is likely to be in surplus on world

markets at the time the resulting productive capacity is expected

to become operative and if the assistance will cause substantial

injury to United States producers of the same, similar, or competing

commodity: Provided, That such prohibition shall not apply to the

Export-Import Bank if in the judgment of its Board of Directors

the benefits to industry and employment in the United States

are likely to outweigh the injury to United States producers of

the same, similar, or competing commodity, and the Chairman

of the Board so notifies the Committees on Appropriations.

(b) None of the funds appropriated by this or any other Act

to carry out chapter 1 of part I of the Foreign Assistance Act

of 1961 shall be available for any testing or breeding feasibility

study, variety improvement or introduction, consultancy, publication, conference, or training in connection with the growth or

production in a foreign country of an agricultural commodity for
110 STAT. 3009–143 PUBLIC LAW 104–208—SEPT. 30, 1996

export which would compete with a similar commodity grown or

produced in the United States: Provided, That this subsection shall

not prohibit—

(1) activities designed to increase food security in developing countries where such activities will not have a significant

impact in the export of agricultural commodities of the United

States; or

(2) research activities intended primarily to benefit American producers.

SURPLUS COMMODITIES

SEC. 514. The Secretary of the Treasury shall instruct the

United States Executive Directors of the International Bank for

Reconstruction and Development, the International Development

Association, the International Finance Corporation, the Inter-American Development Bank, the International Monetary Fund, the

Asian Development Bank, the Inter-American Investment Corporation, the North American Development Bank, the European Bank

for Reconstruction and Development, the African Development

Bank, and the African Development Fund to use the voice and

vote of the United States to oppose any assistance by these institutions, using funds appropriated or made available pursuant to this

Act, for the production or extraction of any commodity or mineral

for export, if it is in surplus on world markets and if the assistance

will cause substantial injury to United States producers of the

same, similar, or competing commodity.

NOTIFICATION REQUIREMENTS

SEC. 515. For the purposes of providing the Executive Branch

with the necessary administrative flexibility, none of the funds

made available under this Act for ‘‘Child Survival and Disease

Programs Fund’’, ‘‘Development Assistance’’, ‘‘Debt restructuring’’,

‘‘International organizations and programs’’, ‘‘Trade and Development Agency’’, ‘‘International narcotics control’’, ‘‘Assistance for

Eastern Europe and the Baltic States’’, ‘‘Assistance for the New

Independent States of the Former Soviet Union’’, ‘‘Economic Support

Fund’’, ‘‘Peacekeeping operations’’, ‘‘Operating expenses of the

Agency for International Development’’, ‘‘Operating expenses of the

Agency for International Development Office of Inspector General’’,

‘‘Nonproliferation, anti-terrorism, demining and related programs’’,

‘‘Foreign Military Financing Program’’, ‘‘International military education and training’’, ‘‘Inter-American Foundation’’, ‘‘African Development Foundation’’, ‘‘Peace Corps’’, ‘‘Migration and refugee assistance’’, shall be available for obligation for activities, programs,

projects, type of materiel assistance, countries, or other operations

not justified or in excess of the amount justified to the Appropriations Committees for obligation under any of these specific headings

unless the Appropriations Committees of both Houses of Congress

are previously notified fifteen days in advance: Provided, That

the President shall not enter into any commitment of funds appropriated for the purposes of section 23 of the Arms Export Control

Act for the provision of major defense equipment, other than conventional ammunition, or other major defense items defined to be

aircraft, ships, missiles, or combat vehicles, not previously justified

to Congress or 20 per centum in excess of the quantities justified

to Congress unless the Committees on Appropriations are notified

22 USC 262h

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–144

fifteen days in advance of such commitment: Provided further, That

this section shall not apply to any reprogramming for an activity,

program, or project under chapter 1 of part I of the Foreign Assistance Act of 1961 of less than 10 per centum of the amount previously

justified to the Congress for obligation for such activity, program,

or project for the current fiscal year: Provided further, That the

requirements of this section or any similar provision of this Act

or any other Act, including any prior Act requiring notification

in accordance with the regular notification procedures of the

Committees on Appropriations, may be waived if failure to do

so would pose a substantial risk to human health or welfare: Provided further, That in case of any such waiver, notification to

the Congress, or the appropriate congressional committees, shall

be provided as early as practicable, but in no event later than

three days after taking the action to which such notification requirement was applicable, in the context of the circumstances necessitating such waiver: Provided further, That any notification provided

pursuant to such a waiver shall contain an explanation of the

emergency circumstances.

Drawdowns made pursuant to section 506(a)(2) of the Foreign

Assistance Act of 1961 shall be subject to the regular notification

procedures of the Committees on Appropriations.

LIMITATION ON AVAILABILITY OF FUNDS FOR INTERNATIONAL

ORGANIZATIONS AND PROGRAMS

SEC. 516. Notwithstanding any other provision of law or of

this Act, none of the funds provided for ‘‘International Organizations

and Programs’’ shall be available for the United States proportionate share, in accordance with section 307(c) of the Foreign

Assistance Act of 1961, for any programs identified in section 307,

or for Libya, Iran, or, at the discretion of the President, Communist

countries listed in section 620(f) of the Foreign Assistance Act

of 1961, as amended: Provided, That, subject to the regular notification procedures of the Committees on Appropriations, funds appropriated under this Act or any previously enacted Act making appropriations for foreign operations, export financing, and related programs, which are returned or not made available for organizations

and programs because of the implementation of this section or

any similar provision of law, shall remain available for obligation

through September 30, 1998.

ECONOMIC SUPPORT FUND ASSISTANCE FOR ISRAEL

SEC. 517. The Congress finds that progress on the peace process

in the Middle East is vitally important to United States security

interests in the region. The Congress recognizes that, in fulfilling

its obligations under the Treaty of Peace Between the Arab Republic

of Egypt and the State of Israel, done at Washington on March

26, 1979, Israel incurred severe economic burdens. Furthermore,

the Congress recognizes that an economically and militarily secure

Israel serves the security interests of the United States, for a

secure Israel is an Israel which has the incentive and confidence

to continue pursuing the peace process. Therefore, the Congress

declares that, subject to the availability of appropriations, it is

the policy and the intention of the United States that the funds

provided in annual appropriations for the Economic Support Fund

which are allocated to Israel shall not be less than the annual
110 STAT. 3009–145 PUBLIC LAW 104–208—SEPT. 30, 1996

debt repayment (interest and principal) from Israel to the United

States Government in recognition that such a principle serves

United States interests in the region.

PROHIBITION ON FUNDING FOR ABORTIONS AND INVOLUNTARY

STERILIZATION

SEC. 518. None of the funds made available to carry out part

I of the Foreign Assistance Act of 1961, as amended, may be

used to pay for the performance of abortions as a method of family

planning or to motivate or coerce any person to practice abortions.

None of the funds made available to carry out part I of the Foreign

Assistance Act of 1961, as amended, may be used to pay for the

performance of involuntary sterilization as a method of family planning or to coerce or provide any financial incentive to any person

to undergo sterilizations. None of the funds made available to

carry out part I of the Foreign Assistance Act of 1961, as amended,

may be used to pay for any biomedical research which relates

in whole or in part, to methods of, or the performance of, abortions

or involuntary sterilization as a means of family planning. None

of the funds made available to carry out part I of the Foreign

Assistance Act of 1961, as amended, may be obligated or expended

for any country or organization if the President certifies that the

use of these funds by any such country or organization would

violate any of the above provisions related to abortions and involuntary sterilizations: Provided, That none of the funds made available

under this Act may be used to lobby for or against abortion.

AUTHORIZATION FOR POPULATION PLANNING

SEC. 518A. (a) None of the funds made available in title II

of this Act for population planning activities or other population

assistance pursuant to section 104(b) of the Foreign Assistance

Act or any other provision of law may be obligated or expended

prior to July 1, 1997.

(b) Not to exceed $385,000,000 of the funds appropriated in

title II of this Act may be made available for population planning

activities or other population assistance.

(c) Such funds may be apportioned only on a monthly basis,

and such monthly apportionments may not exceed 8 percent of

the total available for such activities.

(d) Not later than February 1, 1997, the President shall submit

a finding to the Congress regarding the impact of the limitation

on obligations imposed by subsection (a) of this section on the

proper functioning of the population planning program. If such

Presidential finding indicates that the limitation is having a negative impact on the proper functioning of the population planning

program, funds for population planning activities and other population assistance referred to in subsection (a) may be made available

beginning March 1, 1997, notwithstanding the July 1, 1997, limitation set forth in subsection (a), if the Congress approves such

finding by adoption of a joint resolution of approval not later than

February 28, 1997, in accordance with subsection (e).

(e) CONGRESSIONAL REVIEW PROCEDURE.—

(1) This subsection is enacted by Congress—

(A) as an exercise of the rulemaking power of the

House of Representatives and the Senate, respectively, and

as such it is deemed a part of the rules of each House,
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–146

respectively, but applicable only with respect to the procedure to be followed in that House in the case of resolutions

described by paragraph (2) of this subsection; and it supersedes other rules only to the extent that it is inconsistent

therewith; and

(B) with full recognition of the constitutional right

of either House to change the rules (so far as those rules

relate 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 such House.

(2) For purposes of this section, the term ‘‘resolution’’ means

a joint resolution, the text of which is as follows: ‘‘That the

House of Representatives and Senate approve the Presidential

finding, submitted to the Congress on XXXXX, that the limitation on obligations imposed by section 518A(a) of the Foreign

Operations, Export Financing, and Related Programs Appropriations Act, 1997, is having a negative impact on the proper

functioning of the population planning program.’’. The blank

space therein shall be filled with the date on which the President submits his finding to the House of Representatives and

the Senate.

(3) On the day on which the President submits a finding

under this section to the Congress, a joint resolution described

in paragraph (2) shall be introduced (by request) in the House

by the majority leader of the House, for himself and the minority leader of the House, or by Members of the House designated

by the majority leader and minority leader of the House; and

shall be introduced (by request) in the Senate by the majority

leader of the Senate, for himself and the minority leader of

the Senate, or by Members of the Senate designated by the

majority leader and minority leader of the Senate. If either

House is not in session on the day on which the President

submits such finding, the resolution shall be introduced in

that House, as provided in the preceding sentence, on the

first day thereafter on which that House is in session. A resolution once introduced in the House with respect to a Presidential

finding under this section shall be referred to 1 or more committees (and all resolutions with respect to the same Presidential

finding shall be referred to the same committee or committees)

by the Speaker of the House of Representatives. A resolution

once introduced in the Senate with respect to a Presidential

finding under this section shall be referred to the appropriate

committee (and all resolutions with respect to the same Presidential finding shall be referred to the same committee) by

the President of the Senate.

(4) No amendment to a resolution introduced under this

section shall be in order in either the House of Representatives

or the Senate; and no motion to suspend the application of

this subsection shall be in order in either House, nor shall

it be in order in either House for the presiding officer to

entertain a request to suspend the application of this subsection

by unanimous consent.

(5)(A) If any committee to which a resolution with respect

to a Presidential finding under this section has been referred

has not reported it at the end of 5 calendar days after its

introduction, such committee shall be automatically discharged

from further consideration of the resolution and it shall be
110 STAT. 3009–147 PUBLIC LAW 104–208—SEPT. 30, 1996

placed on the appropriate calendar. A vote on final passage

of the resolution, shall be taken in each House on or before

February 28, 1997. If prior to the passage by 1 House of

a resolution of that House under this section, that House

receives the same resolution from the other House, then—

(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.

(6)(A) A motion in the House of Representatives to proceed

to the consideration of a resolution under this section shall

be highly privileged and not debatable. An amendment to the

motion shall not be in order, nor shall it be in order to move

to reconsider the vote by which the motion is agreed to or

disagreed to.

(B) Debate in the House of Representatives on the resolution described in paragraph (2) of this subsection shall be

limited to not more than 2 hours, which shall be divided equally

between those favoring and those opposing such resolution.

A motion to further limit debate shall not be debatable. It

shall not be in order to move to recommit a resolution or

to move to reconsider the vote by which such resolution was

agreed to or disagreed to.

(C) Appeals from the decision of the Chair relating to

the application of the rules of the House of Representatives

to the procedures relating to a resolution under this section

shall be decided without debate.

(D) Except to the extent specifically provided in preceding

provisions of this subsection, consideration in the House of

Representatives of a resolution under this subsection shall be

governed by the rules of the House of Representatives

applicable to other resolutions in similar circumstances.

(7)(A) A motion in the Senate to proceed to the consideration of a resolution under this section shall not debatable.

It shall not be in order to move to reconsider the vote by

which the motion is agreed to or disagreed to.

(B) Debate in the Senate on the resolution described in

paragraph (2) of this subsection, and all debatable motions

and appeals in connection therewith, shall be limited to not

more than 2 hours. The time shall be equally divided between,

and controlled by, the mover and the manager of the resolution,

except that in the event the manager of the resolution is

in favor of any such motion or appeal, the time in opposition

thereto shall be controlled by the minority leader or his designee. Such leaders, or either of them, may, from time under

their control on the passage of a resolution, allot additional

time to any Senator during the consideration of any debatable

motion or appeal.

(C) A motion in the Senate to further limit debate is

not debatable. A motion to recommit a resolution is not in

order.

REPORTING REQUIREMENT

SEC. 519. The President shall submit to the Committees on

Appropriations the reports required by section 25(a)(1) of the Arms

Export Control Act.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–148

SPECIAL NOTIFICATION REQUIREMENTS

SEC. 520. None of the funds appropriated in this Act shall

be obligated or expended for Colombia, Guatemala (except that

this provision shall not apply to development assistance for Guatemala), Dominican Republic, Haiti, Liberia, Pakistan, Peru, Serbia,

Sudan, or Zaire except as provided through the regular notification

procedures of the Committees on Appropriations.

DEFINITION OF PROGRAM, PROJECT, AND ACTIVITY

SEC. 521. For the purpose of this Act, ‘‘program, project, and

activity’’ shall be defined at the Appropriations Act account level

and shall include all Appropriations and Authorizations Acts earmarks, ceilings, and limitations with the exception that for the

following accounts: Economic Support Fund and Foreign Military

Financing Program, ‘‘program, project, and activity’’ shall also be

considered to include country, regional, and central program level

funding within each such account; for the development assistance

accounts of the Agency for International Development ‘‘program,

project, and activity’’ shall also be considered to include central

program level funding, either as (1) justified to the Congress, or

(2) allocated by the executive branch in accordance with a report,

to be provided to the Committees on Appropriations within thirty

days of enactment of this Act, as required by section 653(a) of

the Foreign Assistance Act of 1961.

CHILD SURVIVAL AND AIDS ACTIVITIES

SEC. 522. Up to $8,000,000 of the funds made available by

this Act for assistance for family planning, health, child survival,

and AIDS, may be used to reimburse United States Government

agencies, agencies of State governments, institutions of higher

learning, and private and voluntary organizations for the full cost

of individuals (including for the personal services of such individuals) detailed or assigned to, or contracted by, as the case may

be, the Agency for International Development for the purpose of

carrying out family planning activities, child survival activities

and activities relating to research on, and the treatment and control

of acquired immune deficiency syndrome in developing countries:

Provided, That funds appropriated by this Act that are made available for child survival activities or activities relating to research

on, and the treatment and control of, acquired immune deficiency

syndrome may be made available notwithstanding any provision

of law that restricts assistance to foreign countries: Provided further, That funds appropriated by this Act that are made available

for family planning activities may be made available notwithstanding section 512 of this Act and section 620(q) of the Foreign Assistance Act of 1961.

PROHIBITION AGAINST INDIRECT FUNDING TO CERTAIN COUNTRIES

SEC. 523. None of the funds appropriated or otherwise made

available pursuant to this Act shall be obligated to finance indirectly

any assistance or reparations to Cuba, Iraq, Libya, Iran, Syria,

North Korea, or the People’s Republic of China, unless the President

of the United States certifies that the withholding of these funds

is contrary to the national interest of the Untied States.
110 STAT. 3009–149 PUBLIC LAW 104–208—SEPT. 30, 1996

RECIPROCAL LEASING

SEC. 524. Section 61(a) of the Arms Export Control Act is

amended by striking out ‘‘1996’’ and inserting in lieu thereof ‘‘1997’’.

NOTIFICATION ON EXCESS DEFENSE EQUIPMENT

SEC. 525. Prior to providing excess Department of Defense

articles in accordance with section 516(a) of the Foreign Assistance

Act of 1961, the Department of Defense shall notify the Committees

on Appropriations to the same extent and under the same conditions

as are other committees pursuant to subsection (c) of that section:

Provided, That before issuing a letter of offer to sell excess defense

articles under the Arms Export Control Act, the Department of

Defense shall notify the Committees on Appropriations in accordance with the regular notification procedures of such Committees:

Provided further, That such Committees shall also be informed

of the original acquisition cost of such defense articles.

AUTHORIZATION REQUIREMENT

SEC. 526. Funds appropriated by this Act may be obligated

and expended notwithstanding section 10 of Public Law 91–672

and section 15 of the State Department Basic Authorities Act of

1956.

PROHIBITION ON BILATERAL ASSISTANCE TO TERRORIST COUNTRIES

SEC. 527. (a) Notwithstanding any other provision of law, funds

appropriated for bilateral assistance under any heading of this

Act and funds appropriated under any such heading in a provision

of law enacted prior to enactment of this Act, shall not be made

available to any country which the President determines—

(1) grants sanctuary from prosecution to any individual

or group which has committed an act of international terrorism,

or

(2) otherwise supports international terrorism.

(b) The President may waive the application of subsection

(a) to a country if the President determines that national security

or humanitarian reasons justify such waiver. The President shall

publish each waiver in the Federal Register and, at least fifteen

days before the waiver takes effect, shall notify the Committees

on Appropriations of the waiver (including the justification for

the waiver) in accordance with the regular notification procedures

of the Committees on Appropriations.

COMMERCIAL LEASING OF DEFENSE ARTICLES

SEC. 528. Notwithstanding any other provision of law, and

subject to the regular notification procedures of the Committees

on Appropriations, the authority of section 23(a) of the Arms Export

Control Act may be used to provide financing to Israel, Egypt

and NATO and major non-NATO allies for the procurement by

leasing (including leasing with an option to purchase) of defense

articles from United States commercial suppliers, not including

Major Defense Equipment (other than helicopters and other types

of aircraft having possible civilian application), if the President

determines that there are compelling foreign policy or national

security reasons for those defense articles being provided by

22 USC 2763

note.

22 USC 2796.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–150

commercial lease rather than by government-to-government sale

under such Act.

COMPETITIVE INSURANCE

SEC. 528A. All Agency for International Development contracts

and solicitations, and subcontracts entered into under such contracts, shall include a clause requiring that United States insurance

companies have a fair opportunity to bid for insurance when such

insurance is necessary or appropriate.

STINGERS IN THE PERSIAN GULF REGION

SEC. 529. Except as provided in section 581 of the Foreign

Operations, Export Financing, and Related Programs Appropriations Act, 1990, the United States may not sell or otherwise make

available any Stingers to any country bordering the Persian Gulf

under the Arms Export Control Act or chapter 2 of part II of

the Foreign Assistance Act of 1961.

DEBT-FOR-DEVELOPMENT

SEC. 530. In order to enhance the continued participation of

nongovernmental organizations in economic assistance activities

under the Foreign Assistance Act of 1961, including endowments,

debt-for-development and debt-for-nature exchanges, a nongovernmental organization which is a grantee or contractor of the Agency

for International Development may place in interest bearing

accounts funds made available under this Act or prior Acts or

local currencies which accrue to that organization as a result of

economic assistance provided under title II of this Act and any

interest earned on such investment shall be used for the purpose

for which the assistance was provided to that organization.

SEPARATE ACCOUNTS

SEC. 531. (a) SEPARATE ACCOUNTS FOR LOCAL CURRENCIES.— (1) If assistance is furnished to the government of a foreign country

under chapters 1 and 10 of part I or chapter 4 of part II of

the Foreign Assistance Act of 1961 under agreements which result

in the generation of local currencies of that country, the Administrator of the Agency for International Development shall—

(A) require that local currencies be deposited in a separate

account established by that government;

(B) enter into an agreement with that government which

sets forth—

(i) the amount of the local currencies to be generated,

and

(ii) the terms and conditions under which the currencies so deposited may be utilized, consistent with this

section; and

(C) establish by agreement with that government the

responsibilities of the Agency for International Development

and that government to monitor and account for deposits into

and disbursements from the separate account.

(2) USES OF LOCAL CURRENCIES.—As may be agreed upon with

the foreign government, local currencies deposited in a separate

account pursuant to subsection (a), or an equivalent amount of

local currencies, shall be used only—

22 USC 2359

note.
110 STAT. 3009–151 PUBLIC LAW 104–208—SEPT. 30, 1996

(A) to carry out chapters 1 or 10 of part I or chapter

4 of part II (as the case may be), for such purposes as—

(i) project and sector assistance activities, or

(ii) debt and deficit financing; or

(B) for the administrative requirements of the United

States Government.

(3) PROGRAMMING ACCOUNTABILITY.—The Agency for International Development shall take all necessary steps to ensure that

the equivalent of the local currencies disbursed pursuant to subsection (a)(2)(A) from the separate account established pursuant

to subsection (a)(1) are used for the purposes agreed upon pursuant

to subsection (a)(2).

(4) TERMINATION OF ASSISTANCE PROGRAMS.—Upon termination

of assistance to a country under chapters 1 or 10 of part I or

chapter 4 of part II (as the case may be), any unencumbered

balances of funds which remain in a separate account established

pursuant to subsection (a) shall be disposed of for such purposes

as may be agreed to by the government of that country and the

United States Government.

(5) CONFORMING AMENDMENTS.—The provisions of this subsection shall supersede the tenth and eleventh provisos contained

under the heading ‘‘Sub-Saharan Africa, Development Assistance’’

as included in the Foreign Operations, Export Financing, and

Related Programs Appropriations Act, 1989 and sections 531(d)

and 609 of the Foreign Assistance Act of 1961.

(6) REPORTING REQUIREMENT.—The Administrator of the

Agency for International Development shall report on an annual

basis as part of the justification documents submitted to the

Committees on Appropriations on the use of local currencies for

the administrative requirements of the United States Government

as authorized in subsection (a)(2)(B), and such report shall include

the amount of local currency (and United States dollar equivalent)

used and/or to be used for such purpose in each applicable country.

(b) SEPARATE ACCOUNTS FOR CASH TRANSFERS.—(1) If assistance is made available to the government of a foreign country,

under chapters 1 or 10 of part I or chapter 4 of part II of the

Foreign Assistance Act of 1961, as cash transfer assistance or

as nonproject sector assistance, that country shall be required to

maintain such funds in a separate account and not commingle

them with any other funds.

(2) APPLICABILITY OF OTHER PROVISIONS OF LAW.—Such funds

may be obligated and expended notwithstanding provisions of law

which are inconsistent with the nature of this assistance including

provisions which are referenced in the Joint Explanatory Statement

of the Committee of Conference accompanying House Joint Resolution 648 (H. Report No. 98–1159).

(3) NOTIFICATION.—At lest fifteen days prior to obligating any

such cash transfer or nonproject sector assistance, the President

shall submit a notification through the regular notification procedures of the Committees on Appropriations, which shall include

a detailed description of how the funds proposed to be made available will be used, with a discussion of the United States interests

that will be served by the assistance (including, as appropriate,

a description of the economic policy reforms that will be promoted

by such assistance).
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–152

(4) EXEMPTION.—Nonproject sector assistance funds may be

exempt from the requirements of subsection (b)(1) only through

the notification procedures of the Committees on Appropriations.

COMPENSATION FOR UNITED STATES EXECUTIVE DIRECTORS TO

INTERNATIONAL FINANCING INSTITUTIONS

SEC. 532. (a) No funds appropriated by this Act may be made

as payment to any international financial institution while the

United States Executive Director to such institution is compensated

by the institution at a rate which, together with whatever compensation such Director receives from the United States, is in

excess of the rate provided for an individual occupying a position

at level IV of the Executive Schedule under section 5315 of title

5, United States Code, or while any alternate United States Director

to such institution is compensated by the institution at a rate

in excess of the rate provided for an individual occupying a position

at level V of the Executive Schedule under section 5316 of title

5, United States Code.

(b) For purposes of this section, ‘‘international financial institutions’’ are: the International Bank for Reconstruction and Development, the Inter-American Development Bank, the Asian Development Bank, the Asian Development Fund, the African Development

Bank, the African Development Fund, the International Monetary

Fund, the North American Development Bank, and the European

Bank for Reconstruction and Development.

COMPLIANCE WITH UNITED NATIONS SANCTIONS AGAINST IRAQ

SEC. 533. (a) DENIAL OF ASSISTANCE.—None of the funds appropriated or otherwise made available pursuant to this Act to carry

out the Foreign Assistance Act of 1961 (including title IV of chapter

2 of part I, relating to the Overseas Private Investment Corporation)

or the Arms Export Control Act may be used to provide assistance

to any country that is not in compliance with the United Nations

Security Council sanctions against Iraq, Serbia or Montenegro

unless the President determines and so certifies to the Congress

that—

(1) such assistance is in the national interest of the United

States;

(2) such assistance will directly benefit the needy people

in that country; or

(3) the assistance to be provided will be humanitarian

assistance for foreign nationals who have fled Iraq and Kuwait.

(b) IMPORT SANCTIONS.—If the President considers that the

taking of such action would promote the effectiveness of the economic sanctions of the United Nations and the United States

imposed with respect to Iraq, Serbia, or Montenegro, as the case

may be, and is consistent with the national interest, the President

may prohibit, for such a period of time as he considers appropriate,

the importation into the United States of any or all products of

any foreign country that has not prohibited—

(1) the importation of products of Iraq, Serbia, or

Montenegro into its customs territory, and

(2) the export of its products to Iraq, Serbia, or Montenegro,

as the case may be.

50 USC 1701

note.
110 STAT. 3009–153 PUBLIC LAW 104–208—SEPT. 30, 1996

COMPETITIVE PRICING FOR SALES OF DEFENSE ARTICLES

SEC. 533A. Direct costs associated with meeting a foreign customer’s additional or unique requirements will continue to be allowable under contracts under section 22(d) of the Arms Export Control

Act. Loadings applicable to such direct costs shall be permitted

at the same rates applicable to procurement of like items purchased

by the Department of Defense for its own use.

POW/MIA MILITARY DRAWDOWN

SEC. 534. (a) Notwithstanding any other provision of law, the

President may direct the drawdown, without reimbursement by

the recipient, of defense articles from the stocks of the Department

of Defense, defense services of the Department of Defense, and

military education and training, of an aggregate value not to exceed

$15,000,000 in fiscal year 1997, as may be necessary to carry

out subsection (b).

(b) Such defense articles, services and training may be provided

to Vietnam, Cambodia and Laos, under subsection (a) as the President determines are necessary to support efforts to locate and

repatriate members of the United States Armed Forces and civilians

employed directly or indirectly by the United States Government

who remain unaccounted for from the Vietnam War, and to ensure

the safety of United States Government personnel engaged in such

cooperative efforts and to support United States Department of

Defense-sponsored humanitarian projects associated with the POW/

MIA efforts. Any aircraft shall be provided under this section only

to Laos and only on a lease or loan basis, but may be provided

at no cost notwithstanding section 61 of the Arms Export Control

Act and may be maintained with defense articles, services and

training provided under this section.

(c) The President shall, within sixty days of the end of any

fiscal year in which the authority of subsection (a) is exercised,

submit a report to the Congress which identifies the articles, services, and training drawn down under this section.

MEDITERRANEAN EXCESS DEFENSE ARTICLES

SEC. 535. For the four-year period beginning on October 1,

1996, the President shall ensure that excess defense articles will

be made available under section 516 and 519 of the Foreign Assistance Act of 1961 consistent with the manner in which the President

made available excess defense articles under those sections during

the four-year period that began on October 1, 1992, pursuant to

section 573(e) of the Foreign Operations, Export Financing, Related

Programs Appropriations Act, 1990.

CASH FLOW FINANCING

SEC. 536. For each country that has been approved for cash

flow financing (as defined in section 25(d) of the Arms Export

Control Act, as added by section 112(b) of Public Law 99–83) under

the Foreign Military Financing Program, any Letter of Offer and

Acceptance or other purchase agreement, or any amendment thereto, for a procurement in excess of $100,000,000 that is to be financed

in whole or in part with funds made available under this Act

shall be submitted through the regular notification procedures to

the Committees on Appropriations.

22 USC 2321j

note.

22 USC 2762

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–154

AUTHORITIES FOR THE PEACE CORPS, THE INTER-AMERICAN

FOUNDATION AND THE AFRICAN DEVELOPMENT FOUNDATION

SEC. 537. Unless expressly provided to the contrary, provisions

of this or any other Act, including provisions contained in prior

Acts authorizing or making appropriations for foreign operations,

export financing, and related programs, shall not be construed

to prohibit activities authorized by or conducted under the Peace

Corps Act, the Inter-American Foundation Act, or the African Development Foundation Act. The appropriate agency shall promptly

report to the Committees on Appropriations whenever it is conducting activities or is proposing to conduct activities in a country

for which assistance is prohibited.

IMPACT ON JOBS IN THE UNITED STATES

SEC. 538. None of the funds appropriated by this Act may

be obligated or expended to provide—

(a) any financial incentive to a business enterprise currently located in the United States for the purpose of inducing

such an enterprise to relocate outside the United States if

such incentive or inducement is likely to reduce the number

of employees of such business enterprise in the United States

because United States production is being replaced by such

enterprise outside the United States;

(b) assistance for the purpose of establishing or developing

in a foreign country any export processing zone or designated

area in which the tax, tariff, labor, environment, and safety

laws of that country do not apply, in part or in whole, to

activities carried out within that zone or area, unless the President determines and certifies that such assistance is not likely

to cause a loss of jobs within the United States; or

(c) assistance for any project or activity that contributes

to the violation of internationally recognized workers rights,

as defined in section 502(a)(4) of the Trade Act of 1974, of

workers in the recipient country, including any designated zone

or area in that country: Provided, That in recognition that

the application of this subsection should be commensurate with

the level of development of the recipient country and sector,

the provisions of this subsection shall not preclude assistance

for the informal sector in such country, micro and small-scale

enterprise, and smallholder agriculture.

AUTHORITY TO ASSIST BOSNIA AND HERZEGOVINA

SEC. 539. (a) The President is authorized to direct the transfer,

subject to prior notification of the Committees on Appropriations,

to the Government of Bosnia and Herzegovina, without reimbursement, of defense articles from the stocks of the Department of

Defense and defense services of the Department of Defense of

an aggregate value of not to exceed $100,000,000 in fiscal years

1996 and 1997: Provided, That the President certifies in a timely

fashion to the Congress that the transfer of such articles would

assist that nation in self-defense and thereby promote the security

and stability of the region.

(b) Within 60 days of any transfer under the authority provided

in subsection (a), and every 60 days thereafter, the President shall

report in writing to the Speaker of the House of Representatives
110 STAT. 3009–155 PUBLIC LAW 104–208—SEPT. 30, 1996

and the President pro tempore of the Senate concerning the articles

transferred and the disposition thereof.

(c) There are authorized to be appropriated to the President

such sums as may be necessary to reimburse the applicable appropriation, fund, or account for defense articles provided under this

section.

RESTRICTIONS ON THE TERMINATION OF SANCTIONS AGAINST SERBIA

AND MONTENEGRO

SEC. 540. (a) RESTRICTIONS.—Notwithstanding any other provision of law, no sanction, prohibition, or requirement described in

section 1511 of the National Defense Authorization Act for Fiscal

Year 1994 (Public Law 103–160), with respect to Serbia or

Montenegro, may cease to be effective, unless—

(1) the President first submits to the Congress a certification described in subsection (b); and

(2) the requirements of section 1511 of that Act are met.

(b) CERTIFICATION.—A certification described in this subsection

is a certification that—

(1) there is substantial progress toward—

(A) the realization of a separate identity for Kosova

and the right of the people of Kosova to govern themselves;

or

(B) the creation of an international protectorate for

Kosova;

(2) there is substantial improvement in the human rights

situation in Kosova;

(3) international human rights observers are allowed to

return to Kosova; and

(4) the elected government of Kosova is permitted to meet

and carry out its legitimate mandate as elected representatives

of the people of Kosova.

(c) WAIVER AUTHORITY.—The President may waive the application in whole or in part, of subsection (a) if the President certifies

to the Congress that the President has determined that the waiver

is necessary to meet emergency humanitarian needs or to achieve

a negotiated settlement of the conflict in Bosnia and Herzegovina

that is acceptable to the parties.

SPECIAL AUTHORITIES

SEC. 541. (a) Funds appropriated in title II of this Act that

are made available for Afghanistan, Lebanon, and Cambodia, and

for victims of war, displaced children, displaced Burmese, humanitarian assistance for Romania, and humanitarian assistance for

the peoples of Bosnia and Herzegovina, Croatia, and Kosova, may

be made available notwithstanding any other provision of law:

Provided, That any such funds that are made available for Cambodia shall be subject to the provisions of section 531(e) of the

Foreign Assistance Act of 1961 and section 906 of the International

Security and Development Cooperation Act of 1985: Provided further, That none of the funds appropriated by this Act may be

made available for assistance for any country or organization that

the Secretary of State determines is cooperating, tactically or strategically, with the Khmer Rouge in their military operations, or

to the military of any country that is not acting vigorously to

prevent its members from facilitating the export of timber from

50 USC 1701

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–156

Cambodia by the Khmer Rouge: Provided further, That the Secretary of State shall submit a report to the Committees on Appropriations by February 1, 1997, on whether there are any countries,

organizations, or militaries for which assistance is prohibited under

the previous proviso, the basis for such conclusions and, if appropriate, the steps being taken to terminate assistance: Provided

further, That the prohibition on assistance to the military of any

country that is not acting vigorously to prevent its members from

facilitating the export of timber from Cambodia by the Khmer

Rouge may be waived by the President if he determines and reports

to the Committees on Appropriations that it is important to the

national security interest of the United States to do so.

(b) Funds appropriated by this Act to carry out the provisions

of sections 103 through 106 of the Foreign Assistance Act of 1961

may be used, notwithstanding any other provision of law, for the

purpose of supporting tropical forestry and energy programs aimed

at reducing emissions of greenhouse gases, and for the purpose

of supporting biodiversity conservation activities: Provided, That

such assistance shall be subject to sections 116, 502B, and 620A

of the Foreign Assistance Act of 1961.

(c) During fiscal year 1997, the President may use up to

$40,000,000 under the authority of section 451 of the Foreign Assistance Act of 1961, notwithstanding the funding ceiling contained

in subsection (a) of that section.

(d) The Agency for International Development may employ

personal services contractors, notwithstanding any other provision

of law, for the purpose of administering programs for the West

Bank and Gaza.

POLICY ON TERMINATING THE ARAB LEAGUE BOYCOTT OF ISRAEL

SEC. 542. It is the sense of the Congress that—

(1) the Arab League countries should immediately and

publicly renounce the primary boycott of Israel and the secondary and tertiary boycott of American firms that have commercial ties with Israel; and

(2) the President should—

(A) take more concrete steps to encourage vigorously

Arab League countries to renounce publicly the primary

boycotts of Israel and the secondary and tertiary boycotts

of American firms that have commercial relations with

Israel as a confidence-building measure;

(B) take into consideration the participation of any

recipient country in the primary boycott of Israel and the

secondary and tertiary boycotts of American firms that

have commercial relations with Israel when determining

whether to sell weapons to said county;

(C) report to Congress on the specific steps being taken

by the President to bring about a public renunciation of

the Arab primary boycott of Israel and the secondary and

tertiary boycotts of American firms that have commercial

relations with Israel; and

(D) encourage the allies and trading partners of the

United States to enact laws prohibiting businesses from

complying with the boycott and penalizing businesses that

do comply.
110 STAT. 3009–157 PUBLIC LAW 104–208—SEPT. 30, 1996

ANTI-NARCOTICS ACTIVITIES

SEC. 543. (a) Of the funds appropriated or otherwise made

available by this Act for ‘‘Economic Support Fund’’, assistance may

be provided to strengthen the administration of justice in countries

in Latin America and the Caribbean and in other regions consistent

with the provisions of section 534(b) of the Foreign Assistance

Act of 1961, except that programs to enhance protection of participants in judicial cases may be conducted notwithstanding section

660 of that Act.

(b) Funds made available pursuant to this section may be

made available notwithstanding section 534(c) and the second and

third sentences of section 534(e) of the Foreign Assistance Act

of 1961. Funds made available pursuant to subsection (a) for Bolivia,

Colombia and Peru may be made available notwithstanding section

534(c) and the second sentence of section 534(e) of the Foreign

Assistance Act of 1961.

ELIGIBILITY FOR ASSISTANCE

SEC. 544. (a) ASSISTANCE THROUGH NONGOVERNMENTAL

ORGANIZATIONS.—Restrictions contained in this or any other Act

with respect to assistance for a country shall not be construed

to restrict assistance in support of programs of nongovernmental

organizations from funds appropriated by this Act to carry out

the provisions of chapters 1 and 10 of part I of the Foreign Assistance Act of 1961: Provided, That the President shall take into

consideration, in any case in which a restriction on assistance

would be applicable but for this subsection, whether assistance

in support of programs of nongovernmental organizations is in

the national interest of the United States: Provided further, That

before using the authority of this subsection to furnish assistance

in support of programs of nongovernmental organizations, the President shall notify the Committees on Appropriations under the regular notification procedures of those committees, including a description of the program to be assisted, the assistance to be provided,

and the reasons for furnishing such assistance: Provided further,

That nothing in this subsection shall be construed to alter any

existing statutory prohibitions against abortion or involuntary sterilizations contained in this or any other Act.

(b) PUBLIC LAW 480.—During fiscal year 1997, restrictions contained in this or any other Act with respect to assistance for

a country shall not be construed to restrict assistance under the

Agricultural Trade Development and Assistance Act of 1954: Provided, That none of the funds appropriated to carry out title I

of such Act and made available pursuant to this subsection may

be obligated or expended except as provided through the regular

notification procedures of the Committees on Appropriations.

(c) EXCEPTION.—This section shall not apply—

(1) with respect to section 620A of the Foreign Assistance

Act or any comparable provision of law prohibiting assistance

to countries that support international terrorism; or

(2) with respect to section 116 of the Foreign Assistance

Act of 1961 or any comparable provision of law prohibiting

assistance to countries that violate internationally recognized

human rights.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–158

EARMARKS

SEC. 544A. (a) Funds appropriated by this Act which are earmarked may be reprogrammed for other programs within the same

account notwithstanding the earmark if compliance with the earmark is made impossible by operation of any provision of this

or any other Act or, with respect to a country with which the

United States has an agreement providing the United States with

base rights or base access in that country, if the President determines that the recipient for which funds are earmarked has significantly reduced its military or economic cooperation with the United

States since enactment of the Foreign Operations, Export Financing,

and Related Programs Appropriations Act, 1991; however, before

exercising the authority of this subsection with regard to a base

rights or base access country which has significantly reduced its

military or economic cooperation with the United States, the President shall consult with, and shall provide a written policy justification to the Committees on Appropriations: Provided, That any such

reprogramming shall be subject to the regular notification procedures of the Committees on Appropriations: Provided further, That

assistance that is reprogrammed pursuant to this subsection shall

be made available under the same terms and conditions as originally

provided.

(b) In addition to the authority contained in subsection (a),

the original period of availability of funds appropriated by this

Act and administered by the Agency for International Development

that are earmarked for particular programs or activities by this

or any other Act shall be extended for an additional fiscal year

if the Administrator of such agency determines and reports

promptly to the Committees on Appropriations that the termination

of assistance to a country or a significant change in circumstances

makes it unlikely that such earmarked funds can be obligated

during the original period of availability: Provided, That such earmarked funds that are continued available for an additional fiscal

year shall be obligated only for the purpose of such earmark.

CEILINGS AND EARMARKS

SEC. 545. Ceilings and earmarks contained in this Act shall

not be applicable to funds or authorities appropriated or otherwise

made available by any subsequent Act unless such Act specifically

so directs.

PROHIBITION ON PUBLICITY OR PROPAGANDA

SEC. 546. No part of any appropriation contained in this Act

shall be used for publicity or propaganda purposes within the

United States not authorized before the date of enactment of this

Act by the Congress: Provided, That not to exceed $750,000 may

be made available to carry out the provisions of section 316 of

Public Law 96–533.

USE OF AMERICAN RESOURCES

SEC. 547. To the maximum extent possible, assistance provided

under this Act should make full use of American resources, including commodities, products, and services.
110 STAT. 3009–159 PUBLIC LAW 104–208—SEPT. 30, 1996

PROHIBITION OF PAYMENTS TO UNITED NATIONS MEMBERS

SEC. 548. None of the funds appropriated or made available

pursuant to this Act for carrying out the Foreign Assistance Act

of 1961, may be used to pay in whole or in part any assessments,

arrearages, or dues of any member of the United Nations.

CONSULTING SERVICES

SEC. 549. The expenditure of any appropriation under this

Act for any consulting service through procurement contract, pursuant to section 3109 of title 5, United States Code, shall be limited

to those contracts where such expenditures are a matter of public

record and available for public inspection, except where otherwise

provided under existing law, or under existing Executive order

pursuant to existing law.

PRIVATE VOLUNTARY ORGANIZATIONS—DOCUMENTATION

SEC. 550. None of the funds appropriated or made available

pursuant to this Act shall be available to a private voluntary

organization which fails to provide upon timely request any document, file, or record necessary to the auditing requirements of

the Agency for International Development.

PROHIBITION ON ASSISTANCE TO FOREIGN GOVERNMENTS THAT EXPORT LETHAL MILITARY EQUIPMENT TO COUNTRIES SUPPORTING

INTERNATIONAL TERRORISM

SEC. 551. (a) None of the funds appropriated or otherwise

made available by this Act may be available to any foreign government which provides lethal military equipment to a country the

government of which the Secretary of State has determined is

a terrorist government for purposes of section 40(d) of the Arms

Export Control Act. The prohibition under this section with respect

to a foreign government shall terminate 12 months after that

government ceases to provide such military equipment. This section

applies with respect to lethal military equipment provided under

a contract entered into after the date of enactment of this Act.

(b) Assistance restricted by subsection (a) or any other similar

provision of law, may be furnished if the President determines

that furnishing such assistance is important to the national

interests of the United States.

(c) Whenever the waiver of subsection (b) is exercised, the

President shall submit to the appropriate congressional committees

a report with respect to the furnishing of such assistance. Any

such report shall include a detailed explanation of the assistance

to be provided, including the estimated dollar amount of such

assistance, and an explanation of how the assistance furthers

United States national interests.

WITHHOLDING OF ASSISTANCE FOR PARKING FINES OWED BY FOREIGN

COUNTRIES

SEC. 552. (a) IN GENERAL.—Of the funds made available for

a foreign country under part I of the Foreign Assistance Act of

1961, an amount equivalent to 110 percent of the total unpaid

fully adjudicated parking fines and penalties owed to the District

of Columbia by such country as of the date of enactment of this
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–160

Act shall be withheld from obligation for such country until the

Secretary of State certifies and reports in writing to the appropriate

congressional committees that such fines and penalties are fully

paid to the government of the District of Columbia.

(b) DEFINITION.—For purposes of this section, the term ‘‘appropriate congressional committees’’ means the Committee on Foreign

Relations and the Committee on Appropriations of the Senate and

the Committee on International Relations and the Committee on

Appropriations of the House of Representatives.

LIMITATION ON ASSISTANCE FOR THE PLO FOR THE WEST BANK AND

GAZA

SEC. 553. None of the funds appropriated by this Act may

be obligated for assistance for the Palestine Liberation Organization

for the West Bank and Gaza unless the President has exercised

the authority under section 604(a) of the Middle East Peace Facilitation Act of 1995 (title VI of Public Law 104–107) or any other

legislation to suspend or make inapplicable section 307 of the Foreign Assistance Act of 1961 and that suspension is still in effect:

Provided, That if the President fails to make the certification under

section 604(b)(2) of the Middle East Peace Facilitation Act of 1995

or to suspend the prohibition under other legislation, funds appropriated by this Act may not be obligated for assistance for the

Palestine Liberation Organization for the West Bank and Gaza.

EXPORT FINANCING TRANSFER AUTHORITIES

SEC. 554. Not to exceed 5 percent of any appropriation other

than for administrative expenses made available for fiscal year

1997 for programs under title I of this Act may be transferred

between such appropriations for use for any of the purposes, programs and activities for which the funds in such receiving account

may be used, but no such appropriation, except as otherwise specifically provided, shall be increased by more than 25 percent by

any such transfer: Provided, That the exercise of such authority

shall be subject to the regular notification procedures of the

Committees on Appropriations.

WAR CRIMES TRIBUNALS

SEC. 555. If the President determines that doing so will contribute to a just resolution of charges regarding genocide or other

violations of international humanitarian law, the President may

direct a drawdown pursuant to section 552(c) of the Foreign Assistance Act of 1961, as amended, of up to $25,000,000 of commodities

and services for the United Nations War Crimes Tribunal established with regard to the former Yugoslavia by the United Nations

Security Council or such other tribunals or commissions as the

Council may establish to deal with such violations, without regard

to the ceiling limitation contained in paragraph (2) thereof: Provided, That the determination required under this section shall

be in lieu of any determinations otherwise required under section

552(c): Provided further, That 60 days after the date of enactment

of this Act, and every 180 days thereafter, the Secretary of State

shall submit a report to the Committees on Appropriations describing the steps the United States Government is taking to collect

information regarding allegations of genocide or other violations

22 USC 2656

note.
110 STAT. 3009–161 PUBLIC LAW 104–208—SEPT. 30, 1996

of international law in the former Yugoslavia and to furnish that

information to the United Nations War Crimes Tribunal for the

former Yugoslavia.

LANDMINES

SEC. 556. Notwithstanding any other provision of law, demining

equipment available to the Agency for International Development

and the Department of State and used in support of the clearing

of landmines and unexploded ordnance for humanitarian purposes

may be disposed of on a grant basis in foreign countries, subject

to such terms and conditions as the President may prescribe: Provided, That section 1365(c) of the National Defense Authorization

Act for Fiscal Year 1993 (Public Law 102–484; 22 U.S.C., 2778

note) is amended by striking out ‘‘During the five-year period beginning on October 23, 1992’’ and inserting in lieu thereof ‘‘During

the eight-year period beginning on October 23, 1992’’.

RESTRICTIONS CONCERNING THE PALESTINIAN AUTHORITY

SEC. 557. None of the funds appropriated by this Act may

be obligated or expended to create in any part of Jerusalem a

new office of any department or agency of the United States Government for the purpose of conducting official United States Government business with the Palestinian Authority over Gaza and Jericho

or any successor Palestinian governing entity provided for in the

Israel-PLO Declaration of Principles: Provided, That this restriction

shall not apply to the acquisition of additional space for the existing

Consulate General in Jerusalem: Provided further, That meetings

between officers and employees of the United States and officials

of the Palestinian Authority, or any successor Palestinian governing

entity provided for in the Israel-PLO Declaration of Principles,

for the purpose of conducting official United States Government

business with such authority should continue to take place in locations other than Jerusalem. As has been true in the past, officers

and employees of the United States Government may continue

to meet in Jerusalem on other subjects with Palestinians (including

those who now occupy positions in the Palestinian Authority), have

social contacts, and have incidental discussions.

PROHIBITION OF PAYMENT OF CERTAIN EXPENSES

SEC. 558. None of the funds appropriated or otherwise made

available by this Act under the heading ‘‘INTERNATIONAL MILITARY

EDUCATION AND TRAINING’’ or ‘‘FOREIGN MILITARY FINANCING PROGRAM’’ for Informational Program activities may be obligated or

expended to pay for—

(1) alcoholic beverages;

(2) food (other than food provided at a military installation)

not provided in conjunction with Informational Program trips

where students do not stay at a military installation; or

(3) entertainment expenses for activities that are substantially of a recreational character, including entrance fees at

sporting events and amusement parks.

HUMANITARIAN CORRIDORS

SEC. 559. The Foreign Assistance Act of 1961 is amended

by adding immediately after section 620H the following new section:
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–162

‘‘SEC. 620I. PROHIBITION ON ASSISTANCE TO COUNTRIES THAT

RESTRICT UNITED STATES HUMANITARIAN ASSISTANCE.— ‘‘(a) IN GENERAL.—No assistance shall be furnished under

this Act or the Arms Export Control Act to any country when

it is made known to the President that the government of

such country prohibits or otherwise restricts, directly or

indirectly, the transport or delivery of United States humanitarian assistance.

‘‘(b) EXCEPTION.—Assistance may be furnished without

regard to the restriction in subsection (a) if the President

determines that to do so is in the national security interest

of the United States.

‘‘(c) NOTICE.—Prior to making any determination under

subsection (b), the President shall notify the Committee on

International Relations, the Committee on Foreign Relations,

and the Committees on Appropriations of the Senate and House

of Representatives of his intention to make such a determination, the effective date of the determination, and the reasons

for making the determination.’’.

EQUITABLE ALLOCATION OF FUNDS

SEC. 560. Not more than 20 percent of the funds appropriated

by this Act to carry out the provisions of sections 103 through

106 and chapter 4 of part II of the Foreign Assistance Act of

1961, that are made available for Latin America and the Caribbean

region may be made available, through bilateral and Latin America

and the Caribbean regional programs, to provide assistance for

any country in such region.

PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS

SEC. 561. (a) SENSE OF CONGRESS.—It is the sense of the

Congress that, to the greatest extent practicable, all equipment

and products purchased with funds made available in this Act

should be American-made.

(b) NOTICE REQUIREMENT.—In providing financial assistance

to, or entering into any contract with, any entity using funds

made available in this Act, the head of each Federal agency, to

the greatest extent practicable, shall provide to such entity a notice

describing the statement made in subsection (a) by the Congress.

LIMITATION OF FUNDS FOR NORTH AMERICAN DEVELOPMENT BANK

SEC. 562. None of the Funds appropriated in this Act under

the heading ‘‘North American Development Bank’’ and made available for the Community Adjustment and Investment Program shall

be used for purposes other than those set out in the binational

agreement establishing the Bank.

INTERNATIONAL DEVELOPMENT ASSOCIATION

SEC. 563. In order to pay for the United States contribution

to the tenth replenishment of the resources of the International

Development Association authorized in section 526 of Public Law

103–87, there is authorized to be appropriated, without fiscal year

limitation, $700,000,000 for payment by the Secretary of the Treasury.

22 USC 2378–1.
110 STAT. 3009–163 PUBLIC LAW 104–208—SEPT. 30, 1996

SPECIAL DEBT RELIEF FOR THE POOREST

SEC. 564. (a) AUTHORITY TO REDUCE DEBT.—The President

may reduce amounts owed to the United States (or any agency

of the United States) by an eligible country as a result of—

(1) guarantees issued under sections 221 and 222 of the

Foreign Assistance Act of 1961; or

(2) credits extended or guarantees issued under the Arms

Export Control Act.

(b) LIMITATIONS.—

(1) The authority provided by subsection (a) may be exercised only to implement multilateral official debt relief and

referendum agreements, commonly referred to as ‘‘Paris Club

Agreed Minutes’’.

(2) The authority provided by subsection (a) may be exercised only in such amounts or to such extent as is provided

in advance by appropriations Acts.

(3) The authority provided by subsection (a) may be exercised only with respect to countries with heavy debt burdens

that are eligible to borrow from the International Development

Association, but not from the International Bank for

Reconstruction and Development, commonly referred to as

‘‘IDA-only’’ countries.

(c) CONDITIONS.—The authority provided by subsection (a) may

be exercised only with respect to a country whose government—

(1) does not have an excessive level of military expenditures;

(2) has not repeatedly provided support for acts of international terrorism;

(3) is not failing to cooperate on international narcotics

control matters;

(4) (including its military or other security forces) does

not engage in a consistent pattern of gross violations of internationally recognized human rights; and

(5) is not ineligible for assistance because of the application

of section 527 of the Foreign Relations Authorization Act, fiscal

years 1994 and 1995.

(d) AVAILABILITY OF FUNDS.—The authority provided by subsection (a) may be used only with regard to funds appropriated

by this Act under the heading ‘‘Debt restructuring’’.

(e) CERTAIN PROHIBITIONS INAPPLICABLE.—A reduction of debt

pursuant to subsection (a) shall not be considered assistance for

purposes of any provision of law limiting assistance to a country.

The authority provided by subsection (a) may be exercised notwithstanding section 620(r) of the Foreign Assistance Act of 1961.

AUTHORITY TO ENGAGE IN DEBT BUYBACKS OR SALES

SEC. 565. (a) LOANS ELIGIBLE FOR SALE, REDUCTION, OR CANCELLATION.—

(1) AUTHORITY TO SELL, REDUCE, OR CANCEL CERTAIN

LOANS.—Notwithstanding any other provision of law, the President may, in accordance with this section, sell to any eligible

purchaser any concessional loan or portion thereof made before

January 1, 1995, pursuant to the Foreign Assistance Act of

1961, to the government of any eligible country as define in

section 702(6) of that Act or on receipt of payment from an
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–164

eligible purchaser, reduce or cancel such loan or portion thereof,

only for the purpose of facilitating—

(A) debt-for-equity swaps, debt-for-development swaps,

or debt-for-nature swaps; or

(B) a debt buyback by an eligible country of its own

qualified debt, only if the eligible country uses an additional

amount of the local currency of the eligible country, equal

to not less than 40 percent of the price paid for such

debt by such eligible country, or the difference between

the price paid for such debt and the face value of such

debt, to support activities that link conservation and

sustainable use of natural resources with local community

development, and child survival and other child development, in a manner consistent with sections 707 through

710 of the Foreign Assistance Act of 1961, if the sale,

reduction, or cancellation would not contravene any term

or condition of any prior agreement relating to such loan.

(2) TERMS AND CONDITIONS.—Notwithstanding any other

provision of law, the President shall, in accordance with this

section, establish the terms and conditions under which loans

may be sold, reduced, or canceled pursuant to this section.

(3) ADMINISTRATION.—The Facility, as defined in section

702(8) of the Foreign Assistance Act of 1961, shall notify the

administrator of the agency primarily responsible for administering part I of the Foreign Assistance Act of 1961 of purchasers that the President has determined to be eligible, and

shall direct such agency to carry out the sale, reduction, or

cancellation of a loan pursuant to this section. Such agency

shall make an adjustment in its accounts to reflect the sale,

reduction, or cancellation.

(4) LIMITATION.—The authorities of this subsection shall

be available only to the extent that appropriations for the

cost of the modification, as defined in section 502 of the

Congressional Budget Act of 1974, are made in advance.

(b) DEPOSIT OF PROCEEDS.—The proceeds from the sale, reduction, or cancellation of any loan sold, reduced, or canceled pursuant

to this section shall be deposited in the United States Government

account or accounts established for the repayment of such loan.

(c) ELIGIBLE PURCHASERS.—A loan may be sold pursuant to

subsection (a)(1)(A) only to a purchaser who presents plans satisfactory to the President for using the loan for the purpose of engaging

in debt-for-equity swaps, debt-for-development swaps, or debt-fornature swaps.

(d) DEBTOR CONSULTATIONS.—Before the sale to any eligible

purchaser, or any reduction or cancellation pursuant to this section,

of any loan made to an eligible country, the President should

consult with the country concerning the amount of loans to be

sold, reduced, or canceled and their uses for debt-for-equity swaps,

debt-for-development swaps, or debt-for-nature swaps.

(e) AVAILABILITY OF FUNDS.—The authority provided by subsection (a) may be used only with regard to funds appropriated

by this Act under the heading ‘‘Debt restructuring’’.

LIBERIA

SEC. 566. Funds appropriated by this Act may be made available for assistance for Liberia notwithstanding section 620(q) of

the Foreign Assistance Act of 1961 and section 512 of this Act.
110 STAT. 3009–165 PUBLIC LAW 104–208—SEPT. 30, 1996

GUATEMALA

SEC. 567. (a) Funds provided in this Act may be made available

for the Guatemalan military forces, and the restrictions on Guatemala under the headings ‘‘International Military Education and

Training’’ and ‘‘Foreign Military Financing Program’’ shall not

apply, only if the President determines and certifies to the Congress

that the Guatemalan military is cooperating fully with efforts to

resolve human rights abuses which elements of the Guatemalan

military forces are alleged to have committed, ordered or attempted

to thwart the investigation of, and with efforts to negotiate a

peace settlement.

(b) The prohibition contained in subsection (a) shall not apply

to funds made available to implement a ceasefire or peace agreement.

(c) Any funds made available pursuant to subsections (a) or

(b) shall be subject to the regular notification procedures of the

Committees on Appropriations.

(d) Any funds made available pursuant to subsections (a) and

(b) for international military education and training may only be

for expanded international military education and training.

SANCTIONS AGAINST COUNTRIES HARBORING WAR CRIMINALS

SEC. 568. (a) BILATERAL ASSISTANCE.—The President is authorized to withhold funds appropriated by this Act under the Foreign

Assistance Act of 1961 or the Arms Export Control Act for any

country described in subsection (c).

(b) MULTILATERAL ASSISTANCE.—The Secretary of the Treasury

should instruct the United States executive directors of the international financial institutions to work in opposition to, and vote

against, any extension by such institutions of financing or financial

or technical assistance to any country described in subsection (c).

(c) SANCTIONED COUNTRIES.—A country described in this subsection is a country the government of which knowingly grants

sanctuary to persons in its territory for the purpose of evading

prosecution, where such persons—

(1) have been indicted by the International Criminal Tribunal for the former Yugoslavia, the International Criminal Tribunal for Rwanda, or any other international tribunal with similar

standing under international law, or

(2) have been indicted for war crimes or crimes against

humanity committed during the period beginning March 23,

1933 and ending on May 8, 1945 under the direction of, or

in association with—

(A) the Nazi government of Germany;

(B) any government in any area occupied by the military forces of the Nazi government of Germany;

(C) any government which was established with the

assistance or cooperation of the Nazi government; or

(D) any government which was an ally of the Nazi government

of Germany.

LIMITATION ON ASSISTANCE FOR HAITI

SEC. 569. (a) LIMITATION.—None of the funds appropriated

or otherwise made available by this Act, may be provided to the

Government of Haiti until the President reports to Congress that—
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–166

(1) the Government is conducting thorough investigations

of extrajudicial and political killings; and

(2) the Government is cooperating with United States

authorities in the investigations of political and extrajudicial

killings.

(b) Nothing in this section shall be construed to restrict the

provision of humanitarian, development, or electoral assistance.

(c) The President may waive the requirements of this section

on a semiannual basis if he determines and certifies to the appropriate committees of Congress that it is in the national interest

of the United States.

POLICY TOWARD BURMA

SEC. 570. (a) Until such time as the President determines

and certifies to Congress that Burma has made measurable and

substantial progress in improving human rights practices and

implementing democratic government, the following sanctions shall

be imposed on Burma:

(1) BILATERAL ASSISTANCE.—There shall be no United

States assistance to the Government of Burma, other than:

(A) humanitarian assistance,

(B) subject to the regular notification procedures of

the Committees on Appropriations, counter-narcotics assistance under chapter 8 of part I of the Foreign Assistance

Act of 1961, or crop substitution assistance, if the Secretary

of State certifies to the appropriate congressional committees that—

(i) the Government of Burma is fully cooperating

with United States counter-narcotics efforts, and

(ii) the programs are fully consistent with United

States human rights concerns in Burma and serve

the United States national interest, and

(C) assistance promoting human rights and democratic

values.

(2) MULTILATERAL ASSISTANCE.—The Secretary of the

Treasury shall instruct the United States executive director

of each international financial institution to vote against any

loan or other utilization of funds of the respective bank to

or for Burma.

(3) VISAS.—Except as required by treaty obligations or to

staff the Burmese mission to the United States, the United

States should not grant entry visas to any Burmese government

official.

(b) CONDITIONAL SANCTIONS.—The President is hereby authorized to prohibit, and shall prohibit United States persons from

new investment in Burma, if the President determines and certifies

to Congress that, after the date of enactment of this Act, the

Government of Burma has physically harmed, rearrested for political acts, or exiled Daw Aung San Suu Kyi or has committed largescale repression of or violence against the Democratic opposition.

(c) MULTILATERAL STRATEGY.—The President shall seek to

develop, in coordination with members of ASEAN and other countries having major trading and investment interests in Burma,

a comprehensive, multilateral strategy to bring democracy to and

improve human rights practices and the quality of life in Burma,

including the development of a dialogue between the State Law
110 STAT. 3009–167 PUBLIC LAW 104–208—SEPT. 30, 1996

and Order Restoration Council (SLORC) and democratic opposition

groups within Burma.

(d) PRESIDENTIAL REPORTS.—Every six months following the

enactment of this Act, the President shall report to the Chairmen

of the Committee on Foreign Relations, the Committee on International Relations and the House and Senate Appropriations

Committees on the following:

(1) progress toward democratization in Burma;

(2) progress on improving the quality of life of the Burmese

people, including progress on market reforms, living standards,

labor standards, use of forced labor in the tourism industry,

and environmental quality; and

(3) progress made in developing the strategy referred to

in subsection (c).

(e) WAIVER AUTHORITY.—The President shall have the authority

to waive, temporarily or permanently, any sanction referred to

in subsection (a) or subsection (b) if he determines and certifies

to Congress that the application of such sanction would be contrary

to the national security interests of the United States.

(f) DEFINITIONS.—

(1) The term ‘‘international financial institutions’’ shall

include the International Bank for Reconstruction and Development, the International Development Association, the International Finance Corporation, the Multilateral Investment

Guarantee Agency, the Asian Development Bank, and the International Monetary Fund.

(2) The term ‘‘new investment’’ shall mean any of the

following activities if such an activity is undertaken pursuant

to an agreement, or pursuant to the exercise of rights under

such an agreement, that is entered into with the Government

of Burma or a nongovernmental entity in Burma, on or after

the date of the certification under subsection (b):

(A) the entry into a contract that includes the

economical development of resources located in Burma,

or the entry into a contract providing for the general supervision and guarantee of another person’s performance of

such a contract;

(B) the purchase of a share of ownership, including

an equity interest, in that development;

(C) the entry into a contract providing for the participation in royalties, earnings, or profits in that development,

without regard to the form of the participation:

Provided, That the term ‘‘new investment’’ does not include

the entry into, performance of, or financing of a contract to

sell or purchase goods, services, or technology.

REPORT REGARDING HONG KONG

SEC. 571. In light of the deficiencies in reports submitted to

the Congress pursuant to section 301 of the United States-Hong

Kong Policy Act (22 U.S.C. 5731), the Congress directs that the

additional report required to be submitted during 1997 under such

section include detailed information on the status of, and other

developments affecting, implementation of the Sino-British Joint

Declaration on the Question of Hong King, including—

(1) the Basic Law and its consistency with the Joint Declaration;

22 USC 5731

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–168

(2) Beijing’s plans to replace the elected legislature with

an appointed body;

(3) the openness and fairness of the election of the chief

executive and the executive’s accountability to the legislature;

(4) the treatment of political parties;

(5) the independence of the Judiciary and its ability to

exercise the power of final judgment over Hong Kong law;

and

(6) the Bill of Rights.

USE OF FUNDS FOR PURCHASE OF PRODUCTS NOT MADE IN AMERICA

SEC. 572. The Administrator of the Agency for International

Development shall provide a report to the appropriate committees

of the Congress on the ability of the United States Government

to implement a provision of law (and on the foreign policy implications of such a provision of law) which would require that United

States funds could be made available to the government of a foreign

country for the purchase of any equipment or products only if

such purchases were to occur in such foreign country or the United

States, and substantially similar equipment and products were

made in the United States and available for purchase at a price

that is not more than 10 percent higher than that in other countries.

CONFLICT IN CHECHNYA

SEC. 573. The Secretary of State shall provide to the Committees on Appropriations no later than 30 days from the date of

enactment of this Act a detailed report on actions undertaken

by the United States Government to resolve the conflict in

Chechnya.

EXTENSION OF CERTAIN ADJUDICATION PROVISIONS

SEC. 575. The Foreign Operations, Export Financing, and

Related Programs Appropriations Act, 1990 (Public Law 101–167)

is amended—

(1) in section 599D (8 U.S.C. 1157 note)—

(A) in subsection (b)(3), by striking ‘‘and 1996’’ and

inserting ‘‘1996, and 1997’’; and

(B) in subsection (e), by striking out ‘‘October 1, 1996’’

each place it appears and inserting ‘‘October 1, 1997’’;

and

(2) in section 599E (8 U.S.C. 1255 note) in subsection

(b)(2), by striking out ‘‘September 30, 1996’’ and inserting

‘‘September 30, 1997’’.

TRANSPARENCY OF BUDGETS

SEC. 576. (a) LIMITATION.—Beginning three years after the

date of the enactment of this Act, the Secretary of the Treasury

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 loan or other utilization of the funds of

their respective institution, other than to address basic human

needs, for the government of any country which the Secretary

of the Treasury determines—

22 USC 262k–1.
110 STAT. 3009–169 PUBLIC LAW 104–208—SEPT. 30, 1996

(1) does not have in place a functioning system for a civilian

audit of all receipts and expenditures that fund activities of

the armed forces and security forces;

(2) has not provided a summary of a current audit to

the institution.

(b) DEFINITION.—For purposes of this section, the term ‘‘international financial institution’’ shall include the institutions identified in section 532(b) of this Act.

GUARANTEES

SEC. 577. Section 251(b)(2)(G) of the Balanced Budget and

Emergency Deficit Control Act of 1985 is amended by striking

‘‘fiscal year 1994 and 1995’’ and inserting in lieu thereof ‘‘fiscal

years 1994, 1995, and 1997’’ in both places that this appears.

INFORMATION ON COOPERATION WITH UNITED STATES ANTITERRORISM EFFORTS IN ANNUAL COUNTRY REPORTS ON TERRORISM

SEC. 578. Section 140 of the Foreign Relations Authorization

Act, fiscal years 1988 and 1989 (22 U.S.C. 2656f) is amended—

(1) in subsection (a)—

(A) by striking ‘‘and’’ at the end of paragraph (1);

(B) by striking the period at the end of paragraph

(2) and inserting a semicolon; and

(C) by adding at the end the following:

‘‘(3) with respect to each foreign country from which the

United States Government has sought cooperation during the

previous five years in the investigation or prosecution of an

act of international terrorism against United States citizens

or interests, information on—

‘‘(A) the extent to which the government of the foreign

country is cooperating with the United States Government

in apprehending, convicting, and punishing the individual

or individuals responsible for the act; and

‘‘(B) the extent to which the government of the foreign

country is cooperating in preventing further acts of terrorism against United States citizens in the foreign country;

and

‘‘(4) with respect to each foreign country from which the

United States Government has sought cooperation during the

previous five years in the prevention of an act of international

terrorism against such citizens or interests, the information

described in paragraph (3)(B).’’; and

(2) in subsection (c)—

(A) by striking ‘‘The report’’ and inserting ‘‘(1) Except

as provided in paragraph (2), the report’’;

(B) by indenting the margin of paragraph (1) as so

designated, 2 ems; and

(C) by adding at the end the following:

‘‘(2) If the Secretary of State determines that the transmittal of the information with respect to a foreign country under

paragraph (3) or (4) of subsection (a) in classified form would

make more likely the cooperation of the government of the

foreign country as specified in such paragraph, the Secretary

may transmit the information under such paragraph in classified form.’’.

2 USC 901.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–170

FEMALE GENITAL MUTILATION

SEC. 579. (a) LIMITATION.—Beginning 1 year after the date

of the enactment of this Act, the Secretary of the Treasury 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 loan or other utilization of the funds of their respective institution, other than to address basic human needs, for the

government of any country which the Secretary of the Treasury

determines—

(1) has, as a cultural custom, a known history of the

practice of female genital mutilation; and

(2) has not taken steps to implement educational programs

designed to prevent the practice of female genital mutilation.

(b) DEFINITION.—For purposes of this section, the term ‘‘international financial institution’’ shall include the institutions identified in section 532(b) of this Act.

REQUIREMENT FOR DISCLOSURE OF FOREIGN AID IN REPORT OF

SECRETARY OF STATE

SEC. 580. (a) FOREIGN AID REPORTING REQUIREMENT.—In addition to the voting practices of a foreign country, the report required

to be submitted to Congress under section 406(a) of the Foreign

Relations Authorization Act, fiscal years 1990 and 1991 (22 U.S.C.

2414a), shall include a side-by-side comparison of individual countries’ overall support for the United States at the United Nations

and the amount of United States assistance provided to such country in fiscal year 1996.

(b) UNITED STATES ASSISTANCE.—For purposes of this section,

the term ‘‘United States assistance’’ has the meaning given the

term in section 481(e)(4) of the Foreign Assistance Act of 1961

(22 U.S.C. 2291(e)(4)).

RESTRICTIONS ON VOLUNTARY CONTRIBUTIONS TO UNITED NATIONS

AGENCIES

SEC. 581. (a) PROHIBITION ON VOLUNTARY CONTRIBUTIONS FOR

THE UNITED NATIONS.—None of the funds appropriated or otherwise

made available by this Act may be made available to pay any

voluntary contribution of the United States to the United Nations

(including the United Nations Development Program if the United

Nations implements or imposes any taxation on any United States

persons.

(b) CERTIFICATION REQUIRED FOR DISBURSEMENT OF FUNDS.— None of the funds appropriated or otherwise made available under

this Act may be made available to pay any voluntary contribution

of the United States to the United Nations (including the United

Nations Development Program) unless the President certifies to

the Congress 15 days in advance of such payment that the United

Nations is not engaged in any effort to implement or impose any

taxation on United States persons in order to raise revenue for

the United Nations or any of its specialized agencies.

(c) DEFINITIONS.—As used in this section the term ‘‘United

States person’’ refers to—

(1) a natural person who is a citizen or national of the

United States; or

22 USC 2414a

note.

22 USC 262k–2.
110 STAT. 3009–171 PUBLIC LAW 104–208—SEPT. 30, 1996

(2) a corporation, partnership, or other legal entity organized under the United States or any State, territory, possession, or district of the United States.

HAITI

SEC. 582. The Government of Haiti shall be eligible to purchase

defense articles and services under the Arms Export Control Act

(22 U.S.C. 2751 et seq.), for the civilian-led Haitian National Police

and Coast Guard: Provided, That the authority provided by this

section shall be subject to the regular notification procedures of

the Committees on Appropriations.

REFUGEE STATUS FOR ADULT CHILDREN OF FORMER VIETNAMESE REEDUCATION CAMP INTERNEES RESETTLED UNDER THE ORDERLY DEPARTURE PROGRAM

SEC. 584. (a) ELIGIBILITY FOR ORDERLY DEPARTURE PROGRAM.—

For purposes of eligibility for the Orderly Departure Program for

nationals of Vietnam, during fiscal year 1997, an alien described

in subsection (b) shall be considered to be a refugee of special

humanitarian concern to the United States within the meaning

of section 207 of the Immigration and Nationality Act (8 U.S.C.

1157) and shall be admitted to the United States for resettlement

if the alien would be admissible as an immigrant under the

Immigration and Nationality Act (except as provided in section

207(c)(3) of that Act).

(b) ALIENS COVERED.—An alien described in this subsection

is an alien who—

(1) is the son or daughter of a national of Vietnam who—

(A) was formerly interned in a reeducation camp in

Vietnam by the Government of the Socialist Republic of

Vietnam; and

(B) has been accepted for resettlement as a refugee

under the Orderly Departure Program on or after April

1, 1995;

(2) is 21 years of age or older; and

(3) was unmarried as of the date of acceptance of the

alien’s parent for resettlement under the Orderly Departure

Program.

(c) SUPERSEDES EXISTING LAW.—This section supersedes any

other provision of law.

NORTH KOREA

SEC. 585. Ninety days after the date of enactment of this

Act, and every 180 days thereafter, the Secretary of State, in

consultation with the Secretary of Defense, shall provide a report

in a classified or unclassified form to the Committee on Appropriations including the following information:

(a) a best estimate on fuel used by the military forces

of the Democratic People’s Republic of Korea (DPRK);

(b) the deployment position and military training and

activities of the DPRK forces and best estimate of the associated

costs of these activities;

(c) steps taken to reduce the DPRK level of forces; and

(d) cooperation, training, or exchanges of information, technology or personnel between the DPRK and any other nation

22 USC 2656

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–172

supporting the development or deployment of a ballistic missile

capability.

LIMITATION ON ASSISTANCE TO MEXICO

SEC. 587. Not less than $2,500,000 of the funds appropriated

or otherwise made available by this Act for the Government of

Mexico shall be withheld from obligation until the President has

determined and reported to Congress that—

(1) the Government of Mexico is taking actions to reduce

the amount of illegal drugs entering the United States from

Mexico; and

(2) the Government of Mexico—

(A) is taking effective actions to apply vigorously all

law enforcement resources to investigate, track, capture,

incarcerate, and prosecute individuals controlling, supervising, or managing international narcotics cartels or other

similar entities and the accomplices of such individuals,

individuals responsible for, or otherwise involved in, corruption, and individuals involved in money-laundering;

(B) is pursuing international anti-drug trafficking initiatives;

(C) is cooperating fully with international efforts at

narcotics interdiction; and

(D) is cooperating fully with requests by the United

States for assistance in investigations of money-laundering

violations and is making progress toward implementation

of effective laws to prohibit money-laundering.

LIMITATION OF ASSISTANCE TO TURKEY

SEC. 588. Not more than $22,000,000 of the funds appropriated

in this Act under the heading ‘‘Economic Support Fund’’ may be

made available to the Government of Turkey.

CIVIL LIABILITY FOR ACTS OF STATE SPONSORED TERRORISM

SEC. 589. (a) an official, employee, or agent of a foreign state

designated as a state sponsor of terrorism designated under section

6(j) of the Export Administration Act of 1979 while acting within

the scope of his or her office, employment, or agency shall be

liable to a United States national or the national’s legal representative for personal injury or death caused by acts of that official,

employee, or agent for which the courts of the United States may

maintain jurisdiction under section 1605(a)(7) of title 28, United

States Code, for money damages which may include economic damages, solatium, pain, and suffering, and punitive damages if the

acts were among those described in section 1605(a)(7).

(b) Provisions related to statute of limitations and limitations

on discovery that would apply to an action brought under 28 U.S.C.

1605(f) and (g) shall also apply to actions brought under this section.

No action shall be maintained under this action if an official,

employee, or agent of the United States, while acting within the

scope of his or her office, employment, or agency would not be

liable for such acts if carried out within the United States.

Titles I through V of this Act may be cited as the ‘‘Foreign

Operations, Export Financing, and Related Programs Appropriations Act, 1997’’.

Short title.

28 USC 1605

note.
110 STAT. 3009–173 PUBLIC LAW 104–208—SEPT. 30, 1996

TITLE VI—NATO ENLARGEMENT FACILITATION ACT OF

1996

SEC. 601. SHORT TITLE.

This title may be cited as the ‘‘NATO Enlargement Facilitation

Act of 1996’’.

SEC. 602. FINDINGS.

The Congress makes the following findings:

(1) Since 1949, the North Atlantic Treaty Organization

(NATO) has played an essential role in guaranteeing the security, freedom, and prosperity of the United States and its partners in the Alliance.

(2) The NATO Alliance is, and has been since its inception,

purely defensive in character, and it poses no threat to any

nation. The enlargement of the NATO Alliance to include as

full and equal members emerging democracies in Central and

Eastern Europe will serve to reinforce stability and security

in Europe by fostering their integration into the structures

which have created and sustained peace in Europe since 1945.

Their admission into NATO will not threaten any nation.

America’s security, freedom, and prosperity remain linked to

the security of the countries of Europe.

(3) The sustained commitment of the member countries

of NATO to a mutual defense has made possible the democratic

transformation of Central and Eastern Europe. Members of

the Alliance can and should play a critical role in addressing

the security challenges of the post-Cold War era and in creating

the stable environment needed for those emerging democracies

in Central and Eastern Europe to successfully complete political

and economic transformation.

(4) The United States continues to regard the political

independence and territorial integrity of all emerging democracies in Central and Eastern Europe as vital to European

peace and security.

(5) The active involvement by the countries of Central

and Eastern Europe has made the Partnership for Peace program an important forum to foster cooperation between NATO

and those countries seeking NATO membership.

(6) NATO has enlarged its membership on 3 different occasions since 1949.

(7) Congress supports the admission of qualified new members to NATO and the European Union at an early date and

has sought to facilitate the admission of qualified new members

into NATO.

(8) Lasting security and stability in Europe requires not

only the military integration of emerging democracies in

Central and Eastern Europe into existing European structures,

but also the eventual economic and political integration of

these countries into existing European structures.

(9) As new members of NATO assume the responsibilities

of Alliance membership, the costs of maintaining stability in

Europe should be shared more widely. Facilitation of the

enlargement process will require current members of NATO,

and the United States in particular, to demonstrate the political

will needed to build on successful ongoing programs such as

the Warsaw Initiative and the Partnership for Peace by making

NATO

Enlargement

Facilitation Act

of 1996.

22 USC 1928

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–174

available the resources necessary to supplement efforts prospective new members are themselves undertaking.

(10) New members will be full members of the Alliance,

enjoying all rights and assuming all the obligations under the

North Atlantic Treaty, signed at Washington on April 4, 1949

(hereafter in this Act referred to as the ‘‘Washington Treaty’’).

(11) In order to assist emerging democracies in Central

and Eastern Europe that have expressed interest in joining

NATO to be prepared to assume the responsibilities of NATO

membership, the United States should encourage and support

efforts by such countries to develop force structures and force

modernization priorities that will enable such countries to

contribute to the full range of NATO missions, including, most

importantly, territorial defense of the Alliance.

(12) Cooperative regional peacekeeping initiatives involving

emerging democracies in Central and Eastern Europe that have

expressed interest in joining NATO, such as the Baltic Peacekeeping Battalion, the Polish-Lithuanian Joint Peacekeeping

Force, and the Polish-Ukrainian Peacekeeping Force, can make

an important contribution to European peace and security and

international peacekeeping efforts, can assist those countries

preparing to assume the responsibilities of possible NATO membership, and accordingly should receive appropriate support

from the United States.

(13) NATO remains the only multilateral security organization capable of conducting effective military operations and

preserving security and stability of the Euro-Atlantic region.

(14) NATO is an important diplomatic forum and has

played a positive role in defusing tensions between members

of the Alliance and, as a result, no military action has occurred

between two Alliance member states since the inception of

NATO in 1949.

(15) The admission to NATO of emerging democracies in

Central and Eastern Europe which are found to be in a position

to further the principles of the Washington Treaty would

contribute to international peace and enhance the security of

the region. Countries which have become democracies and

established market economies, which practice good neighborly

relations, and which have established effective democratic

civilian control over their defense establishments and attained

a degree of interoperability with NATO, should be evaluated

for their potential to further the principles of the Washington

Treaty.

(16) Democratic civilian control of defense forces is an

essential element in the process of preparation for those states

interested in possible NATO membership.

(17) Protection and promotion of fundamental freedoms

and human rights is an integral aspect of genuine security,

and in evaluating requests for membership in NATO, the

human rights records of the emerging democracies in Central

and Eastern Europe should be evaluated according to their

commitments to fulfill in good faith the human rights obligations of the Charter of the United Nations, the principles of

the Universal Declaration on Human Rights, and the Helsinki

Final Act.

(18) A number of Central and Eastern European countries

have expressed interest in NATO membership, and have taken
110 STAT. 3009–175 PUBLIC LAW 104–208—SEPT. 30, 1996

concrete steps to demonstrate this commitment, including their

participation in Partnership for Peace activities.

(19) The Caucasus region remains important geographically

and politically to the future security of Central Europe. As

NATO proceeds with the process of enlargement, the United

States and NATO should continue to examine means to

strengthen the sovereignty and enhance the security of United

Nations recognized countries in that region.

(20) In recognition that not all countries which have

requested membership in NATO will necessarily qualify at

the same pace, the accession date for each new member will

vary.

(21) The provision of additional NATO transition assistance

should include those emerging democracies most ready for

closer ties with NATO and should be designed to assist other

countries meeting specified criteria of eligibility to move forward toward eventual NATO membership.

(22) The Congress of the United States finds in particular

that Poland, Hungary, and the Czech Republic have made

significant progress toward achieving the criteria set forth in

section 203(d)(3) of the NATO Participation Act of 1994 and

should be eligible for the additional assistance described in

this Act.

(23) The evaluation of future membership in NATO for

emerging democracies in Central and Eastern Europe should

be based on the progress of those nations in meeting criteria

for NATO membership, which require enhancement of NATO’s

security and the approval of all NATO members.

(24) The process of NATO enlargement entails the consensus agreement of the governments of all 16 NATO members

and ratification in accordance with their constitutional procedures.

(25) Some NATO members, such as Spain and Norway,

do not allow the deployment of nuclear weapons on their territory although they are accorded the full collective security

guarantees provided by Article 5 of the Washington Treaty.

There is no a priori requirement for the stationing of nuclear

weapons on the territory of new NATO members, particularly

in the current security climate. However, NATO retains the

right to alter its security posture at any time as circumstances

warrant.

SEC. 603. UNITED STATES POLICY.

It is the policy of the United States—

(1) to join with the NATO allies of the United States

to adapt the role of the NATO Alliance in the post-Cold War

world;

(2) to actively assist the emerging democracies in Central

and Eastern Europe in their transition so that such countries

may eventually qualify for NATO membership;

(3) to support the enlargement of NATO in recognition

that enlargement will benefit the interests of the United States

and the Alliance and to consider these benefits in any analysis

of the costs of NATO enlargement;

(4) to ensure that all countries in Central and Eastern

Europe are fully aware of and capable of assuming the costs
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–176

and responsibilities of NATO membership, including the obligation set forth in Article 10 of the Washington Treaty that

new members be able to contribute to the security of the North

Atlantic area; and

(5) to work to define a constructive and cooperative political

and security relationship between an enlarged NATO and the

Russian Federation.

SEC. 604. SENSE OF THE CONGRESS REGARDING FURTHER ENLARGEMENT OF NATO.

It is the sense of the Congress that in order to promote economic

stability and security in Slovakia, Estonia, Latvia, Lithuania, Romania, Bulgaria, Albania, Moldova, and Ukraine—

(1) the United States should continue and expand its support for the full and active participation of these countries

in activities appropriate for qualifying for NATO membership;

(2) the United States Government should use all diplomatic

means available to press the European Union to admit as

soon as possible any country which qualifies for membership;

(3) the United States Government and the North Atlantic

Treaty Organization should continue and expand their support

for military exercises and peacekeeping initiatives between and

among these nations, nations of the North Atlantic Treaty

Organization, and Russia; and

(4) the process of enlarging NATO to include emerging

democracies in Central and Eastern Europe should not be limited to consideration of admitting Poland, Hungary, the Czech

Republic, and Slovenia as full members of the NATO Alliance.

SEC. 605. SENSE OF THE CONGRESS REGARDING ESTONIA, LATVIA

AND LITHUANIA.

In view of the forcible incorporation of Estonia, Latvia, Lithuania into the Soviet Union in 1940 under the Molotov-Ribbentrop

Pact and the refusal of the United States and other countries

to recognize that incorporation for over 50 years, it is the sense

of the Congress that—

(1) Estonia, Latvia, and Lithuania have valid historical

security concerns that must be taken into account by the United

States; and

(2) Estonia, Latvia, and Lithuania should not be disadvantaged in seeking to join NATO by virtue of their forcible incorporation into the Soviet Union.

SEC. 606. DESIGNATION OF COUNTRIES ELIGIBLE FOR NATO ENLARGEMENT ASSISTANCE.

(a) IN GENERAL.—The following countries are designated as

eligible to receive assistance under the program established under

section 203(a) of the NATO Participation Act of 1994 and shall

be deemed to have been so designated pursuant to section 203(d)(1)

of such Act: Poland, Hungary, and the Czech Republic.

(b) DESIGNATION OF SLOVENIA.—Effective 90 days after the

date of enactment of this Act, Slovenia is designated as eligible

to receive assistance under the program established under section

203(a) of the NATO Participation Act of 1994, and shall be deemed

to have been so designated pursuant to section 203(d) of such

Act, unless the President certifies to Congress prior to such effective

date that Slovenia fails to meet the criteria under section 203(d)(3)

of such Act.
110 STAT. 3009–177 PUBLIC LAW 104–208—SEPT. 30, 1996

(c) DESIGNATION OF OTHER COUNTRIES.—The President shall

designate other emerging democracies in Central and Eastern

Europe as eligible to receive assistance under the program established under section 203(a) of such Act if such countries—

(1) have expressed a clear desire to join NATO;

(2) have begun an individualized dialogue with NATO in

preparation for accession;

(3) are strategically significant to an effective NATO

defense; and

(4) meet the other criteria outlined in section 203(d)(3)

of the NATO Participation Act of 1994 (title II of Public Law

103–447; 22 U.S.C. 1928 note).

(d) RULE OF CONSTRUCTION.—Nothing in this section precludes

the designation by the President of Estonia, Latvia, Lithuania,

Romania, Slovakia, Bulgaria, Albania, Moldova, Ukraine, or any

other emerging democracy in Central and Eastern Europe pursuant

to section 203(d) of the NATO Participation Act of 1994 as eligible

to receive assistance under the program established under section

203(a) of such Act.

SEC. 607. AUTHORIZATION OF APPROPRIATIONS FOR NATO ENLARGEMENT ASSISTANCE.

(a) IN GENERAL.—There are authorized to be appropriated $60,000,000 for fiscal year 1997 for the program established under

section 203(a) of the NATO Participation Act of 1994.

(b) AVAILABILITY.—Of the funds authorized to be appropriated

by subsection (a)— (1) not less than $20,000,000 shall be available for the

cost, as defined in section 502(5) of the Credit Reform Act

of 1990, of direct loans pursuant to the authority of section

203(c)(4) of the NATO Participation Act of 1994 (relating to

the ‘‘Foreign Military Financing Program’’); (2) not less than $30,000,000 shall be available for assistance on a grant basis pursuant to the authority of section

203(c)(4) of the NATO Participation Act of 1994 (relating to

the ‘‘Foreign Military Financing Program’’); and (3) not more than $10,000,000 shall be available for assistance pursuant to the authority of section 203(c)(3) of the NATO

Participation Act of 1994 (relating to international military

education and training).

(c) RULE OF CONSTRUCTION.—Amounts authorized to be appropriated under this section are authorized to be appropriated in

addition to such amounts as otherwise may be available for such

purposes.

SEC. 608. REGIONAL AIRSPACE INITIATIVE AND PARTNERSHIP FOR

PEACE INFORMATION MANAGEMENT SYSTEM.

(a) IN GENERAL.—To the extent provided in advance in appropriations acts for such purposes, funds described in subsection

(b) are authorized to be made available to support the implementation of the Regional Airspace Initiative and the Partnership for

Peace Information Management System, including—

(1) the procurement of items in support of these programs;

and

(2) the transfer of such items to countries participating

in these programs.

(b) FUNDS DESCRIBED.—Funds described in this subsection are

funds that are available—
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–178

(1) during any fiscal year under the NATO Participation

Act of 1994 with respect to countries eligible for assistance

under that Act; or

(2) during fiscal year 1997 under any Act to carry out

the Warsaw Initiative.

SEC. 609. EXCESS DEFENSE ARTICLES.

(a) PRIORITY DELIVERY.—Notwithstanding any other provision

of law, the delivery of excess defense articles under the authority

of section 203(c) (1) and (2) of the NATO Participation Act of

1994 and section 516 of the Foreign Assistance Act of 1961 shall

be given priority to the maximum extent feasible over the delivery

of such excess defense articles to all other countries except those

countries referred to in section 541 of the Foreign Operations,

Export Financing, and Related Programs Appropriations Act, 1995

(Public Law 103–306; 108 Stat. 1640).

(b) COOPERATIVE REGIONAL PEACEKEEPING INITIATIVES.—The

Congress encourages the President to provide excess defense articles

and other appropriate assistance to cooperative regional peacekeeping initiatives involving emerging democracies in Central and Eastern Europe that have expressed an interest in joining NATO in

order to enhance their ability to contribute to European peace

and security and international peacekeeping efforts.

SEC. 610. MODERNIZATION OF DEFENSE CAPABILITY.

The Congress endorses efforts by the United States to modernize the defense capability of Poland, Hungary, the Czech Republic,

Slovenia, and any other countries designated by the President

pursuant to section 203(d) of the NATO Participation Act of 1994,

by exploring with such countries options for the sale or lease to

such countries of weapons systems compatible with those used

by NATO members, including air defense systems, advanced fighter

aircraft, and telecommunications infrastructure.

SEC. 611. TERMINATION OF ELIGIBILITY.

(a) TERMINATION OF ELIGIBILITY.—The eligibility of a country

designated pursuant to subsection (a) or (b) of section 606 or pursuant to section 203(d) of the NATO Participation Act of 1994 may

be terminated upon a determination by the President that such

country does not meet the criteria set forth in section 203(d)(3)

of the NATO Participation Act of 1994.

(b) NOTIFICATION.—At least 15 days before terminating the

eligibility of any country pursuant to subsection (a), the President

shall notify the congressional committees specified in section 634A

of the Foreign Assistance Act of 1961 in accordance with the procedures applicable to reprogramming notifications under that section.

SEC. 612. CONFORMING AMENDMENTS TO THE NATO PARTICIPATION

ACT.

The NATO Participation Act of 1994 (title II of Public Law

103–447; 22 U.S.C. 1928 note) is amended in sections 203(a),

203(d)(1), and 203(d)(2) by striking ‘‘countries emerging from communist domination’’ each place it appears and inserting ‘‘emerging

democracies in Central and Eastern Europe’’.
110 STAT. 3009–179 PUBLIC LAW 104–208—SEPT. 30, 1996

TITLE VII—MIDDLE EAST DEVELOPMENT BANK

SEC. 701. SHORT TITLE.

This title may be cited as the ‘‘Bank for Economic Cooperation

and Development in the Middle East and North Africa Act’’.

SEC. 702. ACCEPTANCE OF MEMBERSHIP.

The President is hereby authorized to accept membership for

the United States in the Bank for Economic Cooperation and Development in the Middle East and North Africa (in this title referred

to as the ‘‘Bank’’) provided for by the agreement establishing the

Bank (in this title referred to as the ‘‘Agreement’’), signed on May

31, 1996.

SEC. 703. GOVERNOR AND ALTERNATE GOVERNOR.

(a) APPOINTMENT.—At the inaugural meeting of the Board of

Governors of the Bank, the Governor and the alternate for the

Governor of the International Bank for Reconstruction and Development, appointed pursuant to section 3 of the Bretton Woods Agreements Act, shall serve ex-officio as a Governor and the alternate

for the Governor, respectively, of the Bank. The President, by

and with the advice and consent of the Senate, shall appoint a

Governor of the Bank and an alternate for the Governor.

(b) COMPENSATION.—Any person who serves as a governor of

the Bank or as an alternate for the Governor may not receive

any salary or other compensation from the United States by reason

of such service.

SEC. 704. APPLICABILITY OF CERTAIN PROVISIONS OF THE BRETTON

WOODS AGREEMENTS ACT.

Section 4 of the Bretton Woods Agreements Act shall apply

to the Bank in the same manner in which such section applies

to the International Bank for Reconstruction and Development and

the International Monetary Fund.

SEC. 705. FEDERAL RESERVE BANKS AS DEPOSITORIES.

Any Federal Reserve Bank which is requested to do so by

the Bank may act as its depository, or as its fiscal agent, and

the Board of Governors of the Federal Reserve System shall exercise

general supervision over the carrying out of these functions.

SEC. 706. SUBSCRIPTION OF STOCK.

(a) SUBSCRIPTION AUTHORITY.—

(1) IN GENERAL.—The Secretary of the Treasury may subscribe on behalf of the United States to not more than 7,011,270

shares of the capital stock of the Bank.

(2) EFFECTIVENESS OF SUBSCRIPTION COMMITMENT.—Any

commitment to make such subscription shall be effective only

to such extent or in such amounts as are provided for in

advance by appropriations Acts.

(b) LIMITATIONS ON AUTHORIZATION OF APPROPRIATIONS.—For

payment by the Secretary of the Treasury of the subscription of

the United States for shares described in subsection (a), there

are authorized to be appropriated $1,050,007,800 without fiscal

year limitation.

(c) LIMITATIONS ON OBLIGATION OF APPROPRIATED AMOUNTS

FOR SHARES OF CAPITAL STOCK.—

(1) PAID-IN CAPITAL STOCK.—

22 USC 290o–4.

22 USC 290o–3.

22 USC 290o–2.

22 USC 290o–1.

Bank for

Economic

Cooperation and

Development in

the Middle East

and North Africa

Act.

22 USC 290o

note.

22 USC 290o.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–180

(A) IN GENERAL.—Not more than $105,000,000 of the

amounts appropriated pursuant to subsection (b) may be

obligated for subscription to shares of paid-in capital stock.

(B) FISCAL YEAR 1997.—Not more than $52,500,000 of

the amounts appropriated pursuant to subsection (b) for

fiscal year 1997 may be obligated for subscription to shares

of paid-in capital stock.

(2) CALLABLE CAPITAL STOCK.—Not more than $787,505,852

of the amounts appropriated pursuant to subsection (b) may

be obligated for subscription to shares of callable capital stock.

(d) DISPOSITION OF NET INCOME DISTRIBUTIONS BY THE BANK.—

Any payment made to the United States by the Bank as a distribution of net income shall be covered into the Treasury as a miscellaneous receipt.

SEC. 707. JURISDICTION AND VENUE OF CIVIL ACTIONS BY OR

AGAINST THE BANK.

(a) JURISDICTION.—The United States district courts shall have

original and exclusive jurisdiction of any civil action brought in

the United States by or against the Bank.

(b) VENUE.—For purposes of section 1391(b) of title 28, United

States Code, the Bank shall be deemed to be a resident of the

judicial district in which the principal office of the Bank in the

United States, or its agent appointed for the purpose of accepting

service or notice of service, is located.

SEC. 708. EFFECTIVENESS OF AGREEMENT.

The Agreement shall have full force and effect in the United

States, its territories and possessions, and the Commonwealth of

Puerto Rico, upon acceptance of membership by the United States

in the Bank and the entry into force of the Agreement.

SEC. 709. EXEMPTION FROM SECURITIES LAWS FOR CERTAIN SECURITIES ISSUED BY THE BANK; REPORTS REQUIRED.

(a) EXEMPTION FROM SECURITIES LAWS; REPORTS TO SECURITIES

AND EXCHANGE COMMISSION.—Any securities issued by the Bank

(including any guaranty by the Bank, whether or not limited in

scope) in connection with borrowing of funds, or the guarantee

of securities as to both principal and interest, shall be deemed

to be exempted securities within the meaning of section 3(a)(2)

of the Securities Act of 1933 and section 3(a)(12) of the Securities

Exchange Act of 1934. The Bank shall file with the Securities

and Exchange Commission such annual and other reports with

regard to such securities as the Commission shall determine to

be appropriate in view of the special character of the Bank and

its operations and necessary in the public interest or for the protection of investors.

(b) AUTHORITY OF SECURITIES AND EXCHANGE COMMISSION TO

SUSPEND EXEMPTION; REPORTS TO THE CONGRESS.—The Securities

and Exchange Commission, acting in consultation with such agency

or officer as the President shall designate, may suspend the provisions of subsection (a) at any time as to any or all securities

issued or guaranteed by the Bank during the period of such suspension. The Commission shall include in its annual reports to the

Congress such information as it shall deem advisable with regard

to the operations and effect of this section.

22 USC 290o–7.

22 USC 290o–6.

22 USC 290o–5.
110 STAT. 3009–181 PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 710. TECHNICAL AMENDMENTS.

(a) ANNUAL REPORT REQUIRED ON PARTICIPATION OF THE

UNITED STATES IN THE BANK.—Section 1701(c)(2) of the International Financial Institutions Act (22 U.S.C. 262r(c)(2)) is amended

by inserting ‘‘Bank for Economic Cooperation and Development

in the Middle East and North Africa,’’ after ‘‘Inter-American Development Bank’’.

(b) EXEMPTION FROM LIMITATIONS AND RESTRICTIONS ON POWER

OF NATIONAL, BANKING ASSOCIATIONS TO DEAL IN AND UNDERWRITE

INVESTMENT SECURITIES OF THE BANK.—The seventh sentence of

paragraph 7 of section 5136 of the Revised Statutes of the United

States (12 U.S.C. 24) is amended by inserting ‘‘Bank for Economic

Cooperation and Development in the Middle East and North Africa,’’

after ‘‘the Inter-American Development Bank’’.

(c) BENEFITS FOR UNITED STATES CITIZEN-REPRESENTATIVES TO

THE BANK.—Section 51 of Public Law 91–599 (22 U.S.C. 276c–

2) is amended by inserting ‘‘the Bank for Economic Cooperation

and Development in the Middle East and North Africa,’’ after ‘‘the

Inter-American Development Bank,’’.

(d) For programs, projects or activities in the Department of

the Interior and Related Agencies Appropriations Act, 1997, provided as follows, to be effective as if it had been enacted into

law as the regular appropriations Act:

AN ACT

Making appropriations for the Department of the Interior, and related agencies for

the fiscal year ending September 30, 1997, and for other purposes.

TITLE I—DEPARTMENT OF THE INTERIOR

BUREAU OF LAND MANAGEMENT

MANAGEMENT OF LANDS AND RESOURCES

For expenses necessary for protection, use, improvement, development, disposal, cadastral surveying, classification, acquisition of

easements and other interests in lands, and performance of other

functions, including maintenance of facilities, as authorized by law,

in the management of lands and their resources under the jurisdiction of the Bureau of Land Management, including the general

administration of the Bureau, and assessment of mineral potential

of public lands pursuant to Public Law 96–487 (16 U.S.C. 3150(a)),

$572,164,000, to remain available until expended, of which

$2,010,000 shall be available for assessment of the mineral potential

of public lands in Alaska pursuant to section 1010 of Public Law

96–487 (16 U.S.C. 3150); and of which $3,000,000 shall be derived

from the special receipt account established by the Land and Water

Conservation Act of 1965, as amended (16 U.S.C. 460l–6a(i)); and

of which $1,000,000 shall be available in fiscal year 1997 subject

to a match by at least an equal amount by the National Fish

and Wildlife Foundation, to such Foundation for challenge cost

share projects supporting fish and wildlife conservation affecting

Bureau lands; in addition, $27,300,000 for Mining Law Administration program operations, to remain available until expended, to

be reduced by amounts collected by the Bureau and credited to

this appropriation from annual mining claim fees so as to result

Department of

the Interior and

Related Agencies

Appropriations

Act, 1997.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–182

in a final appropriation estimated at not more than $572,164,000;

and in addition, not to exceed $5,000,000, to remain available

until expended, from annual mining claim fees; which shall be

credited to this account for the costs of administering the mining

claim fee program, and $2,000,000 from communication site rental

fees established by the Bureau for the cost of administering communication site activities: Provided, That appropriations herein made

shall not be available for the destruction of healthy, unadopted,

wild horses and burros in the care of the Bureau or its contractors:

Provided further, That in fiscal year 1997 and thereafter, all fees,

excluding mining claim fees, in excess of the fiscal year 1996 collections established by the Secretary of the Interior under the authority of 43 U.S.C. 1734 for processing, recording, or documenting

authorizations to use public lands or public land natural resources

(including cultural, historical, and mineral) and for providing specific services to public land users, and which are not presently

being covered into any Bureau of Land Management appropriation

accounts, and not otherwise dedicated by law for a specific distribution, shall be made immediately available for program operations

in this account and remain available until expended.

WILDLAND FIRE MANAGEMENT

For necessary expenses for fire use and management, fire

preparedness, suppression operations, and emergency rehabilitation

by the Department of the Interior, $252,042,000, to remain available

until expended, of which not to exceed $5,025,000 shall be for

the renovation or construction of fire facilities: Provided, That such

funds are also available for repayment of advances to other appropriation accounts from which funds were previously transferred

for such purposes: Provided further, That persons hired pursuant

to 43 U.S.C. 1469 may be furnished subsistence and lodging without

costs from funds available from this appropriation: Provided further,

That unobligated balances of amounts previously appropriated to

the ‘‘Fire Protection’’ and ‘‘Emergency Department of the Interior

Firefighting Fund’’ may be transferred to this appropriation.

CENTRAL HAZARDOUS MATERIALS FUND

For necessary expenses of the Department of the Interior and

any of its component offices and bureaus for the remedial action,

including associated activities, of hazardous waste substances,

pollutants, or contaminants pursuant to the Comprehensive

Environmental Response, Compensation and Liability Act, as

amended (42 U.S.C. 9601 et seq.), $12,000,000, to remain available

until expended: Provided, That notwithstanding 31 U.S.C. 3302,

sums recovered from or paid by a party in advance of or as

reimbursement for remedial action or response activities conducted

by the Department pursuant to sections 107 or 113(f) of such

Act, shall be credited to this account to be available until expended

without further appropriation: Provided further, That such sums

recovered from or paid by any party are not limited to monetary

payments and may include stocks, bonds or other personal or real

property, which may be retained, liquidated, or otherwise disposed

of by the Secretary and which shall be credited to this account.

43 USC 1734a.
110 STAT. 3009–183 PUBLIC LAW 104–208—SEPT. 30, 1996

CONSTRUCTION

For construction of buildings, recreation facilities, roads, trails, and appurtenant facilities, $4,333,000, to remain available until

expended.

PAYMENTS IN LIEU OF TAXES

For expenses necessary to implement the Act of October 20, 1976, as amended (31 U.S.C. 6901–07), $113,500,000, of which

not to exceed $400,000 shall be available for administrative

expenses.

LAND ACQUISITION

For expenses necessary to carry out sections 205, 206, and

318(d) of Public Law 94–579 including administrative expenses

and acquisition of lands or waters, or interests therein, $10,410,000,

to be derived from the Land and Water Conservation Fund, to

remain available until expended.

OREGON AND CALIFORNIA GRANT LANDS

For expenses necessary for management, protection, and development of resources and for construction, operation, and maintenance of access roads, reforestation, and other improvements on

the revested Oregon and California Railroad grant lands, on other

Federal lands in the Oregon and California land-grant counties

of Oregon, and on adjacent rights-of-way; and acquisition of lands

or interests therein including existing connecting roads on or adjacent to such grant lands; $100,515,000, to remain available until

expended: Provided, That 25 per centum of the aggregate of all

receipts during the current fiscal year from the revested Oregon

and California Railroad grant lands is hereby made a charge against

the Oregon and California land-grant fund and shall be transferred

to the General Fund in the Treasury in accordance with the second

paragraph of subsection (b) of title II of the Act of August 28,

1937 (50 Stat. 876).

RANGE IMPROVEMENTS

For rehabilitation, protection, and acquisition of lands and

interests therein, and improvement of Federal rangelands pursuant

to section 401 of the Federal Land Policy and Management Act

of 1976 (43 U.S.C. 1701), notwithstanding any other Act, sums

equal to 50 per centum of all moneys received during the prior

fiscal year under sections 3 and 15 of the Taylor Grazing Act

(43 U.S.C. 315 et seq.) and the amount designated for range

improvements from grazing fees and mineral leasing receipts from

Bankhead-Jones lands transferred to the Department of the Interior

pursuant to law, but not less than $9,113,000, to remain available

until expended: Provided, That not to exceed $600,000 shall be

available for administrative expenses.

SERVICE CHARGES, DEPOSITS, AND FORFEITURES

For administrative expenses and other costs related to processing application documents and other authorizations for use and

disposal of public lands and resources, for costs of providing copies
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–184

of official public land documents, for monitoring construction, operation, and termination of facilities in conjunction with use

authorizations, and for rehabilitation of damaged property, such

amounts as may be collected under Public Law 94–579, as amended,

and Public Law 93–153, to remain available until expended: Provided, That notwithstanding any provision to the contrary of section

305(a) of Public Law 94–579 (43 U.S.C. 1735(a)), any moneys that

have been or will be received pursuant to that section, whether

as a result of forfeiture, compromise, or settlement, if not appropriate for refund pursuant to section 305(c) of that Act (43 U.S.C.

1735(c)), shall be available and may be expended under the authority of this Act by the Secretary to improve, protect, or rehabilitate

any public lands administered through the Bureau of Land Management which have been damaged by the action of a resource developer, purchaser, permittee, or any unauthorized person, without

regard to whether all moneys collected from each such action are

used on the exact lands damaged which led to the action: Provided

further, That any such moneys that are in excess of amounts needed

to repair damage to the exact land for which funds were collected

may be used to repair other damaged public lands.

MISCELLANEOUS TRUST FUNDS

In addition to amounts authorized to be expended under existing laws, there is hereby appropriated such amounts as may be

contributed under section 307 of the Act of October 21, 1976 (43

U.S.C. 1701), and such amounts as may be advanced for administrative costs, surveys, appraisals, and costs of making conveyances

of omitted lands under section 211(b) of that Act, to remain available

until expended.

ADMINISTRATIVE PROVISIONS

Appropriations for the Bureau of Land Management shall be

available for purchase, erection, and dismantlement of temporary

structures, and alteration and maintenance of necessary buildings

and appurtenant facilities to which the United States has title;

up to $100,000 for payments, at the discretion of the Secretary,

for information or evidence concerning violations of laws administered by the Bureau; miscellaneous and emergency expenses of

enforcement activities authorized or approved by the Secretary and

to be accounted for solely on his certificate, not to exceed $10,000:

Provided, That notwithstanding 44 U.S.C. 501, the Bureau may,

under cooperative cost-sharing and partnership arrangements

authorized by law, procure printing services from cooperators in

connection with jointly-produced publications for which the cooperators share the cost of printing either in cash or in services, and

the Bureau determines the cooperator is capable of meeting accepted

quality standards.

The Bureau of Land Management’s Visitor Center in Rand,

Oregon is hereby named the ‘‘William B. Smullin Visitor Center’’.

43 USC 1735

note.
110 STAT. 3009–185 PUBLIC LAW 104–208—SEPT. 30, 1996

UNITED STATES FISH AND WILDLIFE SERVICE

RESOURCE MANAGEMENT

For expenses necessary for scientific and economic studies,

conservation, management, investigations, protection, and utilization of fishery and wildlife resources, except whales, seals, and

sea lions, and for the performance of other authorized functions

related to such resources; for the general administration of the

United States Fish and Wildlife Service; for maintenance of the

herd of long-horned cattle on the Wichita Mountains Wildlife Refuge; and not less than $1,000,000 for high priority projects within

the scope of the approved budget which shall be carried out by

the Youth Conservation Corps as authorized by the Act of August

13, 1970, as amended, $523,947,000, to remain available until

September 30, 1998, of which $11,557,000 shall remain available

until expended for operation and maintenance of fishery mitigation

facilities constructed by the Corps of Engineers under the Lower

Snake River Compensation Plan, authorized by the Water Resources

Development Act of 1976, to compensate for loss of fishery resources

from water development projects on the Lower Snake River, and

of which $2,000,000 shall be provided to local governments in southern California for planning associated with the Natural Communities Conservation Planning (NCCP) program and shall remain

available until expended: Provided, That hereafter, pursuant to

31 U.S.C. 9701, the Secretary shall charge reasonable fees for

the full costs of providing training by the National Education and

Training Center, to be credited to this account, notwithstanding

31 U.S.C. 3302, for the direct costs of providing such training.

CONSTRUCTION

For construction and acquisition of buildings and other facilities

required in the conservation, management, investigation, protection,

and utilization of fishery and wildlife resources, and the acquisition

of lands and interests therein; $43,365,000 to remain available

until expended.

NATURAL RESOURCE DAMAGE ASSESSMENT FUND

To conduct natural resource damage assessment activities by

the Department of the Interior necessary to carry out the provisions

of the Comprehensive Environmental Response, Compensation, and

Liability Act, as amended (42 U.S.C. 9601, et seq.), Federal Water

Pollution Control Act, as amended (33 U.S.C. 1251, et seq.), the

Oil Pollution Act of 1990 (Public Law 101–380), and Public Law

101–337; $4,000,000, to remain available until expended.

LAND ACQUISITION

For expenses necessary to carry out the Land and Water Conservation Fund Act of 1965, as amended (16 U.S.C. 460l–4–11),

including administrative expenses, and for acquisition of land or

waters, or interest therein, in accordance with statutory authority

applicable to the United States Fish and Wildlife Service,

$44,479,000, of which $3,000,000 is authorized to be appropriated

and shall be used to establish the Clarks River National Wildlife

16 USC 668dd

note.

16 USC 742b

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–186

Refuge in Kentucky, to be derived from the Land and Water Conservation Fund, to remain available until expended.

COOPERATIVE ENDANGERED SPECIES CONSERVATION FUND

For expenses necessary to carry out the provisions of the Endangered Species Act of 1973 (16 U.S.C. 1531–1543), as amended,

$14,085,000, for grants to States, to be derived from the Cooperative

Endangered Species Conservation Fund, and to remain available

until expended.

NATIONAL WILDLIFE REFUGE FUND

For expenses necessary to implement the Act of October 17,

1978 (16 U.S.C. 715s), $10,779,000.

REWARDS AND OPERATIONS

For expenses necessary to carry out the provisions of the African Elephant Conservation Act (16 U.S.C. 4201–4203, 4211–4213,

4221–4225, 4241–4245, and 1538), $1,000,000, to remain available

until expended.

NORTH AMERICAN WETLANDS CONSERVATION FUND

For expenses necessary to carry out the provisions of the North

American Wetlands Conservation Act, Public Law 101–233, as

amended, $9,750,000, to remain available until expended.

RHINOCEROS AND TIGER CONSERVATION FUND

For deposit to the Rhinoceros and Tiger Conservation Fund,

$400,000, to remain available until expended, to carry out the

Rhinoceros and Tiger Conservation Act of 1994 (Public Law 103–

391).

WILDLIFE CONSERVATION AND APPRECIATION FUND

For deposit to the Wildlife Conservation and Appreciation Fund, $800,000, to remain available until expended.

ADMINISTRATIVE PROVISIONS

Appropriations and funds available to the United States Fish

and Wildlife Service shall be available for purchase of not to exceed

83 passenger motor vehicles of which 73 are for replacement only

(including 43 for police-type use); not to exceed $400,000 for payment, at the discretion of the Secretary, for information, rewards,

or evidence concerning violations of laws administered by the Service, and miscellaneous and emergency expenses of enforcement

activities, authorized or approved by the Secretary and to be

accounted for solely on his certificate; repair of damage to public

roads within and adjacent to reservation areas caused by operations

of the Service; options for the purchase of land at not to exceed

$1 for each option; facilities incident to such public recreational

uses on conservation areas as are consistent with their primary

purpose; and the maintenance and improvement of aquaria, buildings, and other facilities under the jurisdiction of the Service and
110 STAT. 3009–187 PUBLIC LAW 104–208—SEPT. 30, 1996

to which the United States has title, and which are utilized pursuant to law in connection with management and investigation of

fish and wildlife resources: Provided, That notwithstanding 44

U.S.C. 501, the Service may, under cooperative cost sharing and

partnership arrangements authorized by law, procure printing services from cooperators in connection with jointly-produced publications for which the cooperators share at least one-half the cost

of printing either in cash or services and the Service determines

the cooperator is capable of meeting accepted quality standards:

Provided further, That the Service may accept donated aircraft

as replacements for existing aircraft: Provided further, That notwithstanding any other provision of law, the Secretary of the

Interior may not spend any of the funds appropriated in this Act

for the purchase of lands or interests in lands to be used in the

establishment of any new unit of the National Wildlife Refuge

System unless the purchase is approved in advance by the House

and Senate Committees on Appropriations in compliance with the

reprogramming procedures contained in House Report 103–551:

Provided further, That section 101(c) of the Omnibus Consolidated

Rescissions and Appropriations Act of 1996 is amended in section

315(c)(1)(E) (110 Stat. 1321–201; 16 U.S.C. 460l–6a note) by striking

‘‘distributed in accordance with section 201(c) of the Emergency

Wetlands Resources Act’’ and inserting ‘‘available to the Secretary

of the Interior until expended to be used in accordance with clauses

(i), (ii), and (iii) of section 201(c)(A) of the Emergency Wetlands

Resources Act of 1986 (16 U.S.C. 3911(c)(A))’’.

NATIONAL PARK SERVICE

OPERATION OF THE NATIONAL PARK SYSTEM

For expenses necessary for the management, operation, and

maintenance of areas and facilities administered by the National

Park Service (including special road maintenance service to trucking

permittees on a reimbursable basis), and for the general administration of the National Park Service, including not to exceed $1,593,000

for the Volunteers-in-Parks program, and not less than $1,000,000

for high priority projects within the scope of the approved budget

which shall be carried out by the Youth Conservation Corps as

authorized by 16 U.S.C. 1706, $1,152,311,000, without regard to

16 U.S.C. 451, of which $8,000,000 for research, planning and

interagency coordination in support of land acquisition for Everglades restoration shall remain available until expended, and of

which not to exceed $72,000,000, to remain available until expended,

is to be derived from the special fee account established pursuant

to title V, section 5201, of Public Law 100–203.

NATIONAL RECREATION AND PRESERVATION

For expenses necessary to carry out recreation programs, natural programs, cultural programs, environmental compliance and

review, international park affairs, statutory or contractual aid for

other activities, and grant administration, not otherwise provided

for, $37,976,000.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–188

HISTORIC PRESERVATION FUND

For expenses necessary in carrying out the Historic Preserva- tion Act of 1966, as amended (16 U.S.C. 470), $36,612,000, to

be derived from the Historic Preservation Fund, to remain available

until September 30, 1998.

CONSTRUCTION

For construction, improvements, repair or replacement of physical facilities including the modifications authorized by section 104

of the Everglades National Park Protection and Expansion Act

of 1989, $163,444,000, to remain available until expended, of which

$270,000 shall be used for appropriate fish restoration projects

not related to dam removal including reimbursement to the State

of Washington for emergency actions taken to protect the 1996

run of fall chinook salmon on the Elwha River: Provided, That

funds previously provided under this heading that had been made

available to the City of Hot Springs, Arkansas, to be used for

a flood protection feasibility study, are now made available to

the City of Hot Springs for the rehabilitation of the Federallyconstructed Hot Springs Creek Arch, including the portion within

Hot Springs National Park.

LAND AND WATER CONSERVATION FUND

(RESCISSION)

The contract authority provided for fiscal year 1997 by 16

U.S.C. 460l–10a is rescinded.

LAND ACQUISITION AND STATE ASSISTANCE

For expenses necessary to carry out the Land and Water Conservation Fund Act of 1965, as amended (16 U.S.C. 460l–4–11),

including administrative expenses, and for acquisition of lands or

waters, or interest therein, in accordance with statutory authority

applicable to the National Park Service, $53,915,000, to be derived

from the Land and Water Conservation Fund, to remain available

until expended, of which $1,500,000 is to administer the State

assistance program: Provided, That any funds made available for

the purpose of acquisition of the Elwha and Glines dams shall

be used solely for acquisition, and shall not be expended until

the full purchase amount has been appropriated by the Congress:

Provided further, That of the funds provided herein, $9,000,000

is available for acquisition of the Sterling Forest, subject to

authorization.

ADMINISTRATIVE PROVISIONS

Appropriations for the National Park Service shall be available

for the purchase of not to exceed 404 passenger motor vehicles,

of which 287 shall be for replacement only, including not to exceed

320 for police-type use, 13 buses, and 6 ambulances: Provided,

That none of the funds appropriated to the National Park Service

may be used to process any grant or contract documents which

do not include the text of 18 U.S.C. 1913: Provided further, That

none of the funds appropriated to the National Park Service may

be used to implement an agreement for the redevelopment of the

16 USC 460l–10a

note.
110 STAT. 3009–189 PUBLIC LAW 104–208—SEPT. 30, 1996

southern end of Ellis Island until such agreement has been submitted to the Congress and shall not be implemented prior to the

expiration of 30 calendar days (not including any day in which

either House of Congress is not in session because of adjournment

of more than three calendar days to a day certain) from the receipt

by the Speaker of the House of Representatives and the President

of the Senate of a full and comprehensive report on the development

of the southern end of Ellis Island, including the facts and circumstances relied upon in support of the proposed project.

None of the funds in this Act may be spent by the National

Park Service for activities taken in direct response to the United

Nations Biodiversity Convention.

The National Park Service may in fiscal year 1997 and thereafter enter into cooperative agreements that involve the transfer

of National Park Service appropriated funds to State, local and

tribal governments, other public entities, educational institutions,

and private nonprofit organizations for the public purpose of carrying out National Park Service programs pursuant to 31 U.S.C.

6305 to carry out public purposes of National Park Service programs.

Notwithstanding any other provision of law, remaining balances, including interest, from funds granted to the National Park

Foundation pursuant to the National Park System Visitor Facilities

Fund Act of 1983 (Public Law 97–433, 96 Stat. 2277) shall be

available to the National Park Foundation for expenditure in units

of the National Park System for the purpose of improving visitor

facilities.

UNITED STATES GEOLOGICAL SURVEY

SURVEYS, INVESTIGATIONS, AND RESEARCH

For expenses necessary for the United States Geological Survey

to perform surveys, investigations, and research covering topography, geology, hydrology, and the mineral and water resources

of the United States, its Territories and possessions, and other

areas as authorized by 43 U.S.C. 31, 1332 and 1340; classify lands

as to their mineral and water resources; give engineering supervision to power permittees and Federal Energy Regulatory Commission licensees; administer the minerals exploration program (30

U.S.C. 641); and publish and disseminate data relative to the foregoing activities; and to conduct inquiries into the economic conditions affecting mining and materials processing industries (30

U.S.C. 3, 21a, and 1603; 50 U.S.C. 98g(1)) and related purposes

as authorized by law and to publish and disseminate data;

$738,913,000 of which $64,559,000 shall be available only for

cooperation with States or municipalities for water resources investigations; and of which $16,000,000 shall remain available until

expended for conducting inquiries into the economic conditions

affecting mining and materials processing industries; and of which

$137,500,000 shall be available until September 30, 1998 for the

biological research activity and the operation of the Cooperative

Research Units: Provided, That none of these funds provided for

the biological research activity shall be used to conduct new surveys

on private property, unless specifically authorized in writing by

the property owner: Provided further, That beginning in fiscal year

1998 and once every five years thereafter, the National Academy

43 USC 31j.

16 USC 1g.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–190

of Sciences shall review and report on the biological research activity of the Survey: Provided further, That no part of this appropriation shall be used to pay more than one-half the cost of topographic

mapping or water resources data collection and investigations carried on in cooperation with States and municipalities.

ADMINISTRATIVE PROVISIONS

The amount appropriated for the United States Geological Survey shall be available for the purchase of not to exceed 53 passenger

motor vehicles, of which 48 are for replacement only; reimbursement

to the General Services Administration for security guard services;

contracting for the furnishing of topographic maps and for the

making of geophysical or other specialized surveys when it is

administratively determined that such procedures are in the public

interest; construction and maintenance of necessary buildings and

appurtenant facilities; acquisition of lands for gauging stations and

observation wells; expenses of the United States National Committee on Geology; and payment of compensation and expenses of

persons on the rolls of the Survey duly appointed to represent

the United States in the negotiation and administration of interstate

compacts: Provided, That activities funded by appropriations herein

made may be accomplished through the use of contracts, grants,

or cooperative agreements as defined in 31 U.S.C. 6302, et seq.

MINERALS MANAGEMENT SERVICE

ROYALTY AND OFFSHORE MINERALS MANAGEMENT

For expenses necessary for minerals leasing and environmental

studies, regulation of industry operations, and collection of royalties,

as authorized by law; for enforcing laws and regulations applicable

to oil, gas, and other minerals leases, permits, licenses and operating contracts; and for matching grants or cooperative agreements;

including the purchase of not to exceed eight passenger motor

vehicles for replacement only; $156,955,000, of which not less than

$70,063,000 shall be available for royalty management activities;

and an amount not to exceed $41,000,000 for the Technical Information Management System and activities of the Outer Continental

Shelf (OCS) Lands Activity, to be credited to this appropriation

and to remain available until expended, from additions to receipts

resulting from increases to rates in effect on August 5, 1993, from

rate increases to fee collections for OCS administrative activities

performed by the Minerals Management Service over and above

the rates in effect on September 30, 1993, and from additional

fees for OCS administrative activities established after September

30, 1993: Provided, That $1,500,000 for computer acquisitions shall

remain available until September 30, 1998: Provided further, That

funds appropriated under this Act shall be available for the payment

of interest in accordance with 30 U.S.C. 1721 (b) and (d): Provided

further, That not to exceed $3,000 shall be available for reasonable

expenses related to promoting volunteer beach and marine cleanup

activities: Provided further, That notwithstanding any other provi- sion of law, $15,000 under this head shall be available for refunds

of overpayments in connection with certain Indian leases in which

the Director of the Minerals Management Service concurred with

the claimed refund due, to pay amounts owed to Indian allottees

or Tribes, or to correct prior unrecoverable erroneous payments.

43 USC 50.
110 STAT. 3009–191 PUBLIC LAW 104–208—SEPT. 30, 1996

OIL SPILL RESEARCH

For necessary expenses to carry out title I, section 1016, title

IV, sections 4202 and 4303, title VII, and title VIII, section 8201

of the Oil Pollution Act of 1990, $6,440,000, which shall be derived

from the Oil Spill Liability Trust Fund, to remain available until

expended.

OFFICE OF SURFACE MINING RECLAMATION AND ENFORCEMENT

REGULATION AND TECHNOLOGY

For necessary expenses to carry out the provisions of the Surface Mining Control and Reclamation Act of 1977, Public Law

95–87, as amended, including the purchase of not to exceed 10

passenger motor vehicles, for replacement only; $94,172,000, and

notwithstanding 31 U.S.C. 3302, an additional amount shall be

credited to this account, to remain available until expended, from

performance bond forfeitures in fiscal year 1997: Provided, That

the Secretary of the Interior, pursuant to regulations, may utilize

directly or through grants to States, moneys collected in fiscal

year 1997 for civil penalties assessed under section 518 of the

Surface Mining Control and Reclamation Act of 1977 (30 U.S.C.

1268), to reclaim lands adversely affected by coal mining practices

after August 3, 1977, to remain available until expended: Provided

further, That appropriations for the Office of Surface Mining Reclamation and Enforcement may provide for the travel and per

diem expenses of State and tribal personnel attending Office of

Surface Mining Reclamation and Enforcement sponsored training.

ABANDONED MINE RECLAMATION FUND

For necessary expenses to carry out title IV of the Surface

Mining Control and Reclamation Act of 1977, Public Law 95–87,

as amended, including the purchase of not more than 10 passenger

motor vehicles for replacement only, $177,085,000, to be derived

from receipts of the Abandoned Mine Reclamation Fund and to

remain available until expended; of which up to $4,000,000 shall

be for supplemental grants to States for the reclamation of abandoned sites with acid mine rock drainage from coal mines through

the Appalachian Clean Streams Initiative: Provided, That grants

to minimum program States will be $1,500,000 per State in fiscal

year 1997: Provided further, That of the funds herein provided

up to $18,000,000 may be used for the emergency program authorized by section 410 of Public Law 95–87, as amended, of which

no more than 25 per centum shall be used for emergency reclamation projects in any one State and funds for federally-administered

emergency reclamation projects under this proviso shall not exceed

$11,000,000: Provided further, That prior year unobligated funds

appropriated for the emergency reclamation program shall not be

subject to the 25 per centum limitation per State and may be

used without fiscal year limitation for emergency projects: Provided

further, That pursuant to Public Law 97–365, the Department

of the Interior is authorized to use up to 20 per centum from

the recovery of the delinquent debt owed to the United States

Government to pay for contracts to collect these debts: Provided

further, That funds made available to States under title IV of

Public Law 95–87 may be used, at their discretion, for any required

30 USC 1211

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–192

non-Federal share of the cost of projects funded by the Federal

Government for the purpose of environmental restoration related

to treatment or abatement of acid mine drainage from abandoned

mines: Provided further, That such projects must be consistent

with the purposes and priorities of the Surface Mining Control

and Reclamation Act: Provided further, That the State of Maryland

may set aside the greater of $1,000,000 or 10 percent of the total

of the grants made available to the State under title IV of the

Surface Mining Control and Reclamation Act of 1977, as amended

(30 U.S.C. 1231 et. seq.), if the amount set aside is deposited

in an acid mine drainage abatement and treatment fund established

under a State law, pursuant to which law the amount (together

with all interest earned on the amount) is expended by the State

to undertake acid mine drainage abatement and treatment projects,

except that before any amounts greater than 10 percent of its

title IV grants are deposited in an acid mine drainage abatement

and treatment fund, the State of Maryland must first complete

all Surface Mining Control and Reclamation Act priority one

projects.

BUREAU OF INDIAN AFFAIRS

OPERATION OF INDIAN PROGRAMS

For operation of Indian programs by direct expenditure, contracts, cooperative agreements, compacts, and grants including

expenses necessary to provide education and welfare services for

Indians, either directly or in cooperation with States and other

organizations, including payment of care, tuition, assistance, and

other expenses of Indians in boarding homes, or institutions, or

schools; grants and other assistance to needy Indians; maintenance

of law and order; management, development, improvement, and

protection of resources and appurtenant facilities under the jurisdiction of the Bureau, including payment of irrigation assessments

and charges; acquisition of water rights; advances for Indian industrial and business enterprises; operation of Indian arts and crafts

shops and museums; development of Indian arts and crafts, as

authorized by law; for the general administration of the Bureau,

including such expenses in field offices; maintaining of Indian reservation roads as defined in 23 U.S.C. 101; and construction, repair,

and improvement of Indian housing, $1,436,902,000, of which not

to exceed $86,520,000 shall be for welfare assistance payments

and not to exceed $90,829,000 shall be for payments to tribes

and tribal organizations for contract support costs associated with

ongoing contracts or grants or compacts entered into with the

Bureau prior to fiscal year 1997, as authorized by the Indian

Self-Determination Act of 1975, as amended, and up to $5,000,000

shall be for the Indian Self-Determination Fund, which shall be

available for the transitional cost of initial or expanded tribal contracts, grants, compacts, or cooperative agreements with the Bureau

under such Act; and of which not to exceed $365,124,000 for school

operations costs of Bureau-funded schools and other education programs shall become available on July 1, 1997, and shall remain

available until September 30, 1998; and of which not to exceed

$53,805,000 for higher education scholarships, adult vocational

training, and assistance to public schools under 25 U.S.C. 452

et seq., shall remain available until September 30, 1998; and of
110 STAT. 3009–193 PUBLIC LAW 104–208—SEPT. 30, 1996

which not to exceed $54,973,000 shall remain available until

expended for housing improvement, road maintenance, attorney

fees, litigation support, self-governance grants, the Indian SelfDetermination Fund, and the Navajo-Hopi Settlement Program:

Provided, That tribes and tribal contractors may use their tribal

priority allocations for unmet indirect costs of ongoing contracts,

grants or compact agreements and for unmet

welfare assistance costs: Provided further, That funds made available to tribes and tribal organizations through contracts or grants

obligated during fiscal year 1997, as authorized by the Indian

Self-Determination Act of 1975, or grants authorized by the Indian

Education Amendments of 1988 (25 U.S.C. 2001 and 2008A) shall

remain available until expended by the contractor or grantee: Provided further, That to provide funding uniformity within a SelfGovernance Compact, any funds provided in this Act with availability for more than one year may be reprogrammed to one year

availability but shall remain available within the Compact until

expended: Provided further, That notwithstanding any other provision of law, Indian tribal governments may, by appropriate changes

in eligibility criteria or by other means, change eligibility for general

assistance or change the amount of general assistance payments

for individuals within the service area of such tribe who are otherwise deemed eligible for general assistance payments so long as

such changes are applied in a consistent manner to individuals

similarly situated: Provided further, That any savings realized by

such changes shall be available for use in meeting other priorities

of the tribes: Provided further, That any net increase in costs

to the Federal Government which result solely from tribally

increased payment levels for general assistance shall be met exclusively from funds available to the tribe from within its tribal priority

allocation: Provided further, That any forestry funds allocated to

a tribe which remain unobligated as of September 30, 1997, may

be transferred during fiscal year 1998 to an Indian forest land

assistance account established for the benefit of such tribe within

the tribe’s trust fund account: Provided further, That any such

unobligated balances not so transferred shall expire on September

30, 1998: Provided further, That notwithstanding any other provision of law, no funds available to the Bureau, other than the

amounts provided herein for assistance to public schools under

25 U.S.C. 452 et seq., shall be available to support the operation

of any elementary or secondary school in the State of Alaska in

fiscal year 1997: Provided further, That funds made available in

this or any other Act for expenditure through September 30, 1998

for schools funded by the Bureau shall be available only to the

schools in the Bureau school system as of September 1, 1995:

Provided further, That no funds available to the Bureau shall

be used to support expanded grades for any school or dormitory

beyond the grade structure in place or approved by the Secretary

of the Interior at each school in the Bureau school system as

of October 1, 1995: Provided further, That in fiscal year 1997

and thereafter, notwithstanding the provisions of 25 U.S.C.

2012(h)(1) (A) and (B), upon the recommendation of either (i) a

local school board and school supervisor for an education position

in a Bureau of Indian Affairs operated school, or (ii) an Agency

school board and education line officer for an Agency education

position, the Secretary shall establish adjustments to the rates

of basic compensation or annual salary rates established under

25 USC 2012

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–194

25 U.S.C. 2012(h)(1) (A) and (B) for education positions at the

school or the Agency, at a level not less than that for comparable

positions in the nearest public school district, and the adjustment

shall be deemed to be a change to basic pay and shall not be

subject to collective bargaining: Provided further, That any reduction to rates of basic compensation or annual salary rates below

the rates established under 25 U.S.C. 2012(h)(1) (A) and (B) shall

apply only to educators appointed after June 30, 1997, and shall

not affect the right of an individual employed on June 30, 1997,

in an education position, to receive the compensation attached

to such position under 25 U.S.C. 2012(h)(1) (A) and (B) so long

as the individual remains in the same position at the same school:

Provided further, That notwithstanding 25 U.S.C. 2012(h)(1)(B),

when the rates of basic compensation for teachers and counselors

at Bureau-operated schools are established at the rates of basic

compensation applicable to comparable positions in overseas schools

under the Defense Department Overseas Teachers Pay and Personnel Practices Act, such rates shall become effective with the start

of the next academic year following the issuance of the Department

of Defense salary schedule and shall not be effected retroactively.

CONSTRUCTION

For construction, major repair, and improvement of irrigation

and power systems, buildings, utilities, and other facilities, including architectural and engineering services by contract; acquisition

of lands, and interests in lands; and preparation of lands for farming, and for construction of the Navajo Indian Irrigation Project

pursuant to Public Law 87–483, $94,531,000, to remain available

until expended: Provided, That such amounts as may be available

for the construction of the Navajo Indian Irrigation Project may

be transferred to the Bureau of Reclamation: Provided further,

That not to exceed 6 per centum of contract authority available

to the Bureau of Indian Affairs from the Federal Highway Trust

Fund may be used to cover the road program management costs

of the Bureau: Provided further, That any funds provided for the

Safety of Dams program pursuant to 25 U.S.C. 13 shall be made

available on a non-reimbursable basis: Provided further, That for

fiscal year 1997, in implementing new construction or facilities

improvement and repair project grants in excess of $100,000 that

are provided to tribally controlled grant schools under Public Law

100–297, as amended, the Secretary of the Interior shall use the

Administrative and Audit Requirements and Cost Principles for

Assistance Programs contained in 43 CFR part 12 as the regulatory

requirements: Provided further, That such grants shall not be subject to section 12.61 of 43 CFR; the Secretary and the grantee

shall negotiate and determine a schedule of payments for the work

to be performed: Provided further, That in considering applications,

the Secretary shall consider whether the Indian tribe or tribal

organization would be deficient in assuring that the construction

projects conform to applicable building standards and codes and

Federal, tribal, or State health and safety standards as required

by 25 U.S.C. 2005(a), with respect to organizational and financial

management capabilities: Provided further, That if the Secretary

declines an application, the Secretary shall follow the requirements

contained in 25 U.S.C. 2505(f): Provided further, That any disputes
110 STAT. 3009–195 PUBLIC LAW 104–208—SEPT. 30, 1996

between the Secretary and any grantee concerning a grant shall

be subject to the disputes provision in 25 U.S.C. 2508(e).

INDIAN LAND AND WATER CLAIM SETTLEMENTS AND MISCELLANEOUS

PAYMENTS TO INDIANS

For miscellaneous payments to Indian tribes and individuals and for necessary administrative expenses, $69,241,000, to remain

available until expended; of which $68,400,000 shall be available

for implementation of enacted Indian land and water claim settlements pursuant to Public Laws 101–618, 102–374, 102–575, and

for implementation of other enacted water rights settlements,

including not to exceed $8,000,000, which shall be for the Federal

share of the Catawba Indian Tribe of South Carolina Claims Settlement, as authorized by section 5(a) of Public Law 103–116; and

of which $841,000 shall be available pursuant to Public Laws 98–

500, 99–264, and 100–580.

INDIAN GUARANTEED LOAN PROGRAM ACCOUNT

For the cost of guaranteed loans, $4,500,000, as authorized

by the Indian Financing Act of 1974, as amended: Provided, That

such costs, including the cost of modifying such loans, shall be

as defined in section 502 of the Congressional Budget Act of 1974:

Provided further, That these funds are available to subsidize total

loan principal, any part of which is to be guaranteed, not to exceed

$34,615,000.

In addition, for administrative expenses to carry out the

guaranteed loan programs, $500,000.

ADMINISTRATIVE PROVISIONS

Appropriations for the Bureau of Indian Affairs (except the

revolving fund for loans, the Indian loan guarantee and insurance

fund, the Technical Assistance of Indian Enterprises account, the

Indian Direct Loan Program account, and the Indian Guaranteed

Loan Program account) shall be available for expenses of exhibits,

and purchase of not to exceed 229 passenger motor vehicles, of

which not to exceed 187 shall be for replacement only.

Notwithstanding any other provision of law, no funds available

to the Bureau of Indian Affairs for central office operations or

pooled overhead general administration shall be available for tribal

contracts, grants, compacts, or cooperative agreements with the

Bureau of Indian Affairs under the provisions of the Indian SelfDetermination Act or the Tribal Self-Governance Act of 1994 (Public

Law 103–413).

DEPARTMENTAL OFFICES

INSULAR AFFAIRS

ASSISTANCE TO TERRITORIES

For expenses necessary for assistance to territories under the

jurisdiction of the Department of the Interior, $65,188,000, of which

(1) $61,339,000 shall be available until expended for technical

assistance, including maintenance assistance, disaster assistance,

insular management controls, and brown tree snake control and
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–196

research; grants to the judiciary in American Samoa for compensation and expenses, as authorized by law (48 U.S.C. 1661(c)); grants

to the Government of American Samoa, in addition to current

local revenues, for construction and support of governmental functions; grants to the Government of the Virgin Islands as authorized

by law; grants to the Government of Guam, as authorized by law;

and grants to the Government of the Northern Mariana Islands

as authorized by law (Public Law 94–241; 90 Stat. 272); and (2)

$3,849,000 shall be available for salaries and expenses of the Office

of Insular Affairs: Provided, That all financial transactions of the

territorial and local governments herein provided for, including

such transactions of all agencies or instrumentalities established

or utilized by such governments, may be audited by the General

Accounting Office, at its discretion, in accordance with chapter

35 of title 31, United States Code: Provided further, That Northern

Mariana Islands Covenant grant funding shall be provided according to those terms of the Agreement of the Special Representatives

on Future United States Financial Assistance for the Northern

Mariana Islands approved by Public Law 99–396, or any subsequent

legislation related to Commonwealth of the Northern Mariana

Islands grant funding: Provided further, That section 703(a) of

Public Law 94–241, as amended, is hereby amended by striking

‘‘of the Government of the Northern Mariana Islands’’: Provided

further, That of the amounts provided for technical assistance,

sufficient funding shall be made available for a grant to the Close

Up Foundation: Provided further, That the funds for the program

of operations and maintenance improvement are appropriated to

institutionalize routine operations and maintenance improvement

of capital infrastructure in American Samoa, Guam, the Virgin

Islands, the Commonwealth of the Northern Mariana Islands, the

Republic of Palau, the Republic of the Marshall Islands, and the

Federated States of Micronesia through assessments of long-range

operations maintenance needs, improved capability of local operations and maintenance institutions and agencies (including

management and vocational education training), and project-specific

maintenance (with territorial participation and cost sharing to be

determined by the Secretary based on the individual territory’s

commitment to timely maintenance of its capital assets): Provided

further, That any appropriation for disaster assistance under this

head in this Act or previous appropriations Acts may be used

as non-Federal matching funds for the purpose of hazard mitigation

grants provided pursuant to section 404 of the Robert T. Stafford

Disaster Relief and Emergency Assistance Act (42 U.S.C. 5170c).

COMPACT OF FREE ASSOCIATION

For economic assistance and necessary expenses for the Federated States of Micronesia and the Republic of the Marshall Islands

as provided for in sections 122, 221, 223, 232, and 233 of the

Compacts of Free Association, and for economic assistance and

necessary expenses for the Republic of Palau as provided for in

sections 122, 221, 223, 232, and 233 of the Compact of Free Association, $23,538,000, to remain available until expended, as authorized

by Public Law 99–239 and Public Law 99–658.

48 USC 1801

note.

48 USC 1469b.
110 STAT. 3009–197 PUBLIC LAW 104–208—SEPT. 30, 1996

1 Remainder of figure missing, complete figure probably should read ‘‘$58,286,000’’.

DEPARTMENTAL MANAGEMENT

SALARIES AND EXPENSES

For necessary expenses for management of the Department

of the Interior, $58,286,00,1 of which not to exceed $7,500 may

be for official reception and representation expenses, and of which

up to $2,000,000 shall be available for workers compensation payments and unemployment compensation payments associated with

the orderly closure of the United States Bureau of Mines

OFFICE OF THE SOLICITOR

SALARIES AND EXPENSES

For necessary expenses of the Office of the Solicitor, $35,443,000.

OFFICE OF INSPECTOR GENERAL

SALARIES AND EXPENSES

For necessary expenses of the Office of Inspector General,

$24,439,000, together with any funds or property transferred to

the Office of Inspector General through forfeiture proceedings or

from the Department of Justice Assets Forfeiture Fund or the

Department of the Treasury Assets Forfeiture Fund, that represent

an equitable share from the forfeiture of property in investigations

in which the Office of Inspector General participated, with such

transferred funds to remain available until expended.

NATIONAL INDIAN GAMING COMMISSION

SALARIES AND EXPENSES

For necessary expenses of the National Indian Gaming Commission, pursuant to Public Law 100–497, $1,000,000.

OFFICE OF SPECIAL TRUSTEE FOR AMERICAN INDIANS

FEDERAL TRUST PROGRAMS

For operation of trust programs for Indians by direct expenditure, contracts, cooperative agreements, compacts, and grants,

$32,126,000, to remain available until expended for trust funds

management: Provided, That funds made available to tribes and

tribal organizations through contracts or grants obligated during

fiscal year 1997, as authorized by the Indian Self-Determination

Act of 1975 (25 U.S.C. 450 et seq.), shall remain available until

expended by the contractor or grantee: Provided further, That notwithstanding any other provision of law, the statute of limitations

shall not commence to run on any claim, including any claim

in litigation pending on the date of this Act, concerning losses

to or mismanagement of trust funds, until the affected tribe or

individual Indian has been furnished with an accounting of such

funds from which the beneficiary can determine whether there
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–198

has been a loss: Provided further, That unobligated balances previously made available (1) to liquidate obligations owed tribal and

individual Indian payees of any checks canceled pursuant to section

1003 of the Competitive Equality Banking Act of 1987 (Public

Law 100–86; 31 U.S.C. 3334(b)), (2) to restore Individual Indian

Monies trust funds, Indian Irrigation Systems, and Indian Power

Systems accounts amounts invested in credit unions or defaulted

savings and loan associations and which where not Federally

insured, including any interest on these amounts that may have

been earned, but was not because of the default, and (3) to

reimburse Indian trust fund account holders for losses to their

respective accounts where the claim for said loss has been reduced

to a judgement or settlement agreement approved by the Department of Justice, under the heading ‘‘Indian Land and Water Claim

Settlements and Miscellaneous Payments to Indians’’, Bureau of

Indian Affairs in fiscal years 1995 and 1996, are hereby transferred

to and merged with this appropriation and may only be used for

the operation of trust programs, in accordance with this appropriation.

ADMINISTRATIVE PROVISIONS

There is hereby authorized for acquisition from available

resources within the Working Capital Fund, 15 aircraft, 10 of which

shall be for replacement and which may be obtained by donation,

purchase or through available excess surplus property: Provided,

That notwithstanding any other provision of law, existing aircraft

being replaced may be sold, with proceeds derived or trade-in value

used to offset the purchase price for the replacement aircraft: Provided further, That no programs funded with appropriated funds

in ‘‘Departmental Management’’, ‘‘Office of the Solicitor’’, and ‘‘Office

of Inspector General’’ may be augmented through the Working

Capital Fund or the Consolidated Working Fund.

GENERAL PROVISIONS, DEPARTMENT OF THE INTERIOR

SEC. 101. Appropriations made in this title shall be available

for expenditure or transfer (within each bureau or office), with

the approval of the Secretary, for the emergency reconstruction,

replacement, or repair of aircraft, buildings, utilities, or other facilities or equipment damaged or destroyed by fire, flood, storm, or

other unavoidable causes: Provided, That no funds shall be made

available under this authority until funds specifically made available to the Department of the Interior for emergencies shall have

been exhausted: Provided further, That all funds used pursuant

to this section are hereby designated by Congress to be ‘‘emergency

requirements’’ pursuant to section 251(b)(2)(D) of the Balanced

Budget and Emergency Deficit Control Act of 1985, and must be

replenished by a supplemental appropriation which must be

requested as promptly as possible.

SEC. 102. The Secretary may authorize the expenditure or

transfer of any no year appropriation in this title, in addition

to the amounts included in the budget programs of the several

agencies, for the suppression or emergency prevention of forest

or range fires on or threatening lands under the jurisdiction of

the Department of the Interior; for the emergency rehabilitation

of burned-over lands under its jurisdiction; for emergency actions

related to potential or actual earthquakes, floods, volcanoes, storms,
110 STAT. 3009–199 PUBLIC LAW 104–208—SEPT. 30, 1996

or other unavoidable causes; for contingency planning subsequent

to actual oilspills; response and natural resource damage assessment activities related to actual oilspills; for the prevention, suppression, and control of actual or potential grasshopper and Mormon

cricket outbreaks on lands under the jurisdiction of the Secretary,

pursuant to the authority in section 1773(b) of Public Law 99–

198 (99 Stat. 1658); for emergency reclamation projects under section 410 of Public Law 95–87; and shall transfer, from any no

year funds available to the Office of Surface Mining Reclamation

and Enforcement, such funds as may be necessary to permit assumption of regulatory authority in the event a primacy State

is not carrying out the regulatory provisions of the Surface Mining

Act: Provided, That appropriations made in this title for fire suppression purposes shall be available for the payment of obligations

incurred during the preceding fiscal year, and for reimbursement

to other Federal agencies for destruction of vehicles, aircraft, or

other equipment in connection with their use for fire suppression

purposes, such reimbursement to be credited to appropriations currently available at the time of receipt thereof: Provided further,

That for emergency rehabilitation and wildfire suppression activities, no funds shall be made available under this authority until

funds appropriated to ‘‘Wildland Fire Management’’ shall have been

exhausted: Provided further, That all funds used pursuant to this

section are hereby designated by Congress to be ‘‘emergency requirements’’ pursuant to section 251(b)(2)(D) of the Balanced Budget

and Emergency Deficit Control Act of 1985, and must be replenished

by a supplemental appropriation which must be requested as

promptly as possible: Provided further, That such replenishment

funds shall be used to reimburse, on a pro rata basis, accounts

from which emergency funds were transferred.

SEC. 103. Appropriations made in this title shall be available

for operation of warehouses, garages, shops, and similar facilities,

wherever consolidation of activities will contribute to efficiency or

economy, and said appropriations shall be reimbursed for services

rendered to any other activity in the same manner as authorized

by sections 1535 and 1536 of title 31, United States Code: Provided,

That reimbursements for costs and supplies, materials, equipment,

and for services rendered may be credited to the appropriation

current at the time such reimbursements are received.

SEC. 104. Appropriations made to the Department of the

Interior in this title shall be available for services as authorized

by 5 U.S.C. 3109, when authorized by the Secretary, in total amount

not to exceed $500,000; hire, maintenance, and operation of aircraft;

hire of passenger motor vehicles; purchase of reprints; payment

for telephone service in private residences in the field, when authorized under regulations approved by the Secretary; and the payment

of dues, when authorized by the Secretary, for library membership

in societies or associations which issue publications to members

only or at a price to members lower than to subscribers who

are not members.

SEC. 105. Appropriations available to the Department of the

Interior for salaries and expenses shall be available for uniforms

or allowances therefor, as authorized by law (5 U.S.C. 5901–5902

and D.C. Code 4–204).

SEC. 106. Appropriations made in this title shall be available

for obligation in connection with contracts issued for services or
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–200

rentals for periods not in excess of twelve months beginning at

any time during the fiscal year.

SEC. 107. Prior to the transfer of Presidio properties to the

Presidio Trust, when authorized, the Secretary may not obligate

in any calendar month more than 1⁄12 of the fiscal year 1997

appropriation for operation of the Presidio: Provided, That prior

to the transfer of any Presidio property to the Presidio Trust,

the Secretary shall transfer such funds as the Trust deems necessary to initiate leasing and other authorized activities of the

Trust: Provided further, That this section shall expire on December

31, 1996.

SEC. 108. No final rule or regulation of any agency of the

Federal Government pertaining to the recognition, management,

or validity of a right-of-way pursuant to Revised Statute 2477

(43 U.S.C. 932) shall take effect unless expressly authorized by

an Act of Congress subsequent to the date of enactment of this

Act.

SEC. 109. No funds provided in this title may be expended

by the Department of the Interior for the conduct of offshore leasing

and related activities placed under restriction in the President’s

moratorium statement of June 26, 1990, in the areas of Northern,

Central, and Southern California; the North Atlantic; Washington

and Oregon; and the Eastern Gulf of Mexico south of 26 degrees

north latitude and east of 86 degrees west longitude.

SEC. 110. No funds provided in this title may be expended

by the Department of the Interior for the conduct of leasing, or

the approval or permitting of any drilling or other exploration

activity, on lands within the North Aleutian Basin planning area.

SEC. 111. No funds provided in this title may be expended

by the Department of the Interior for the conduct of preleasing

and leasing activities in the Eastern Gulf of Mexico for Outer

Continental Shelf Lease Sale 151 in the Outer Continental Shelf

Natural Gas and Oil Resource Management Comprehensive Program, 1992–1997.

SEC. 112. No funds provided in this title may be expended

by the Department of the Interior for the conduct of preleasing

and leasing activities in the Atlantic for Outer Continental Shelf

Lease Sale 164 in the Outer Continental Shelf Natural Gas and

Oil Resource Management Comprehensive Program, 1992–1997.

SEC. 113. There is hereby established in the Treasury a franchise fund pilot, as authorized by section 403 of Public Law 103–

356, to be available as provided in such section for costs of capitalizing and operating administrative services as the Secretary determines may be performed more advantageously as central services:

Provided, That any inventories, equipment, and other assets

pertaining to the services to be provided by such fund, either

on hand or on order, less the related liabilities or unpaid obligations,

and any appropriations made prior to the current year for the

purpose of providing capital shall be used to capitalize such fund:

Provided further, That such fund shall be paid in advance from

funds available to the Department and other Federal agencies for

which such centralized services are performed, at rates which will

return in full all expenses of operation, including accrued leave,

depreciation of fund plant and equipment, amortization of automatic

data processing (ADP) software and systems (either acquired or

donated) and an amount necessary to maintain a reasonable operating reserve, as determined by the Secretary: Provided further, That

31 USC 501 note.
110 STAT. 3009–201 PUBLIC LAW 104–208—SEPT. 30, 1996

such fund shall provide services on a competitive basis: Provided

further, That an amount not to exceed four percent of the total

annual income to such fund may be retained in the fund for fiscal

year 1997 and each fiscal year thereafter, to remain available

until expended, to be used for the acquisition of capital equipment,

and for the improvement and implementation of Department financial management, ADP, and other support systems: Provided further, That no later than thirty days after the end of each fiscal

year amounts in excess of this reserve limitation shall be transferred

to the Treasury: Provided further, That such franchise fund pilot

shall terminate pursuant to section 403(f) of Public Law 103–356.

SEC. 114. Public Law 102–495 is amended by adding the following new section:

‘‘SEC. 10. WASHINGTON STATE REMOVAL OPTION.

‘‘(a) Upon appropriation of $29,500,000 for the Federal government to acquire the projects in the State of Washington pursuant

to this Act, the State of Washington may, upon the submission

to Congress of a binding agreement to remove the projects within

a reasonable period of time, purchase the projects from the Federal

government for $2. Such a binding agreement shall provide for

the full restoration of the Elwha River ecosystem and native anadromous fisheries, for protection of the existing quality and availability of water from the Elwha River for municipal and industrial

uses from possible adverse impacts of dam removal, and for fulfillment by the State of each of the other obligations of the Secretary

under this Act.

‘‘(b) Upon receipt of the payment pursuant to subsection (a),

the Federal government shall relinquish ownership and title of

the projects to the State of Washington.

‘‘(c) Upon the purchase of the projects by the State of Washington, section 3(a), (c), and (d), and Sections 4, 7, and 9 of this

Act are hereby repealed, and the remaining sections renumbered

accordingly.’’.

SEC. 115. Section 7 of Public Law 99–647 (16 U.S.C. 461 note)

is amended to read as follows:

‘‘SEC. 7. TERMINATION OF COMMISSION.

‘‘The Commission shall terminate on November 10, 1997.’’.

SEC. 116. The Congress of the United States hereby designates

and ratifies the assignment to the University of Utah as successor

to, and beneficiary of, all the existing assets, revenues, funds and

rights granted to the State of Utah under the Miners Hospital

Grant (February 20, 1929, 45 Stat. 1252) and the School of Mines

Grant (July 26, 1894, 28 Stat. 110). Further, the Secretary of

the Interior is authorized and directed to accept such relinquishment of all remaining and unconveyed entitlement for quantity

grants owed the State of Utah for the Miners Hospital Grant

(February 20, 1929, 45 Stat. 1252) and any unconveyed entitlement

that may remain for the University of Utah School of Mines Grant

(July 26, 1894, 28 Stat. 110).

SEC. 117. Section 402(b)(1) of The Indian Self-Determination

and Education Assistance Act (25 U.S.C. 458bb) is amended to

read as follows: ‘‘(1) In addition to those Indian tribes participating

in self-governance under subsection (a) of this section, the Secretary,

acting through the Director of the Office of Self-Governance, may

select up to 50 new tribes per year from the applicant pool described

in subsection (c) of this section to participate in self-governance.’’.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–202

SEC. 118. In fiscal year 1997 and thereafter, the Indian Arts

and Crafts Board may charge admission fees at its museums; charge

rent and/or franchise fees for shops located in its museums; publish

and sell publications; sell or rent or license use of photographs

or other images in hard copy or other forms; license the use of

designs, in whole or in part, by others; charge for consulting services

provided to others; and may accept the services of volunteers to

carry out its mission: Provided, That all revenue derived from

such activities is covered into the special fund established by section

4 of Public Law 74–355 (25 U.S.C. 305c).

SEC. 119. TRANSFER OF CERTAIN BUREAU OF LAND MANAGEMENT FACILITIES.—

(a) BATTLE MOUNTAIN, NEVADA.—Not later than 30 days

after the date of enactment of this Act, the Secretary of the

Interior, acting through the Director of the Bureau of Land

Management, shall transfer to Lander County, Nevada, without

consideration, title to the former Bureau of Land Management

administrative site and associated buildings in Battle Mountain, Nevada.

(b) WINNEMUCCA, NEVADA.—

(1) TRANSFER.—Not later than 30 days after the date

of enactment of this Act, the Secretary of the Interior,

acting through the Director of the Bureau of Land Management, shall transfer to the State of Nevada, without consideration, title to the surplus Bureau of Land Management

District Office building in Winnemucca, Nevada.

(2) USE.—The transfer under paragraph (1) is made

with the intent that the building shall be available to

meet the needs of the Department of Conservation and

Natural Resources of the State of Nevada.

SEC. 120. ALASKA AVIATION HERITAGE.—

(a) FINDINGS.—The Congress finds that—

(1) the Department of the Interior’s Grumman Goose

G21–A aircraft number N789 is to be retired from several

decades of active service in the State of Alaska in 1996;

and

(2) the aircraft is of significant historic value to the

people of the State of Alaska.

(b) DONATION OF AIRCRAFT.—The Secretary of the Interior

shall transfer the Grumman Goose G21–A aircraft number

N789 to the Alaska Aviation Heritage Museum in Anchorage,

Alaska, at no cost to the museum, for permanent display.

SEC. 121. The Mesquite Lands Act of 1988 is amended by

adding the following at the end of section 3:

‘‘(d) FOURTH AREA.—(1) No later than ten years after the date

of enactment of this Act, the City of Mesquite shall notify the

Secretary as to which if any of the public lands identified in paragraph (2) of this subsection the city wishes to purchase.

‘‘(2) For a period of twelve years after the date of enactment

of this Act, the city shall have exclusive right to purchase the

following parcels of public lands:

‘‘Parcel A—East 1⁄2 Sec. 6, T. 13 S., R. 71 E., Mount

Diablo Meridian; Sec. 5, T. 13 S., R. 71 E., Mount Diablo

Meridian; West 1⁄2 Sec. 4, T. 13 S., R. 71 E, Mount Diablo

Meridian; East 1⁄2, West 1⁄2 Sec. 4, T. 13 S., R. 71 E., Mount

Diablo Meridian.

25 USC 305a–1.
110 STAT. 3009–203 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘Parcel B—North 1⁄2 Sec. 7, T. 13 S., R. 71 E., Mount

Diablo Meridian; South East 1⁄4 Sec. 12, T. 13 S., R. 70 E.,

Mount Diablo Meridian; East 1⁄2, North East 1⁄4 Sec. 12, T.

13 S., R. 70 E., Mount Diablo Meridian; East 1⁄2, West 1⁄2

North East 1⁄4 Sec. 12, T. 13 S., R. 70 E., Mount Diablo Meridian.

‘‘Parcel C—West 1⁄2 Sec. 6, T. 13 S., R. 71 E., Mount

Diablo Meridian; Sec. 1, T. 13 S., R. 70 E., Mount Diablo

Meridian; West 1⁄2, West 1⁄2, North East 1⁄4 Sec. 12, T. 13

S., R. 70 E., Mount Diablo Meridian; North West 1⁄4 Sec. 13,

S., R. 70 E., Mount Diablo Meridian; West 1⁄2 Sec. 12, T.

13 S., R. 70 E., Mount Diablo Meridian; East 1⁄2, South East 1⁄4, Sec. 11, T. 13 S., R. 70 E., Mount Diablo Meridian; East 1⁄2 North East 1⁄4, Sec. 14, T. 13 S., R. 70 E., Mount Diablo

Meridian.

‘‘Parcel D—South 1⁄2 Sec. 14, T. 13 S., R. 70 E., Mount

Diablo Meridian; South West 1⁄4, Sec. 13, T. 13 S., R. 70 E.,

Mount Diablo Meridian; Portion of section 23, North of Interstate 15, T. 13 S., R. 70 E., Mount Diablo Meridian; Portion

of section 24, North of Interstate 15, T. 13 S., R. 70 E., Mount

Diablo Meridian; Portion of section 26, North of Interstate

15, T. 13 S., R. 70 E., Mount Diablo Meridian.’’

SEC. 122. Father Aull Site Transfer.

(a) This section may be cited as the ‘‘Father Aull Site Transfer

Act of 1996’’.

(b) FINDINGS.—Congress finds that—

(1) the buildings and grounds developed by Father Roger

Aull located on public domain land near Silver City, New Mexico, are historically significant to the citizens of the community;

(2) vandalism at the site has become increasingly destructive and frequent in recent years;

(3) because of the isolated location and the distance from

other significant resources and agency facilities, the Bureau

of Land Management has been unable to devote sufficient

resources to restore and protect the site from further damage;

and

(4) St. Vincent DePaul Parish in Silver City, New Mexico,

has indicated an interest in, and developed a sound proposal

for the restoration of, the site, such that the site could be

permanently occupied and used by the community.

(c) CONVEYANCE OF PROPERTY.—Subject to valid existing rights,

all right, title and interest of the United States in and to the

land (including improvements on the land), consisting of approximately 43.06 acres, located approximately 10 miles east of Silver

City, New Mexico, and described as follows: T. 17 S., R. 12 W.,

Section 30: Lot 13, and Section 31: Lot 27 (as generally depicted

on the map dated July 1995) is hereby conveyed by operation

of law to St. Vincent DePaul Parish in Silver City, New Mexico,

without consideration.

(d) RELEASE.—Upon the conveyance of any land or interest

in land identified in this section of St. Vincent DePaul Parish,

St. Vincent DePaul Parish shall assume any liability for any claim

relating to the land or interest in the land arising after the date

of the conveyance.

(e) MAP.—The map referred to in this section shall be on

file and available for public inspection in—

Father Aull Site

Transfer Act of

1996.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–204

(1) the State of New Mexico Office of the Bureau of Land

Management, Santa Fe, New Mexico; and

(2) the Las Cruces District Office of the Bureau of Land

Management, Las Cruces, New Mexico.

SEC. 123. The second proviso under the heading ‘‘Bureau of

Mines, Administrative Provisions’’ of Public Law 104–134 is amended by inserting after the word ‘‘authorized’’ the word ‘‘hereafter’’.

SEC. 124. Watershed Restoration and Enhancement Agreements.

(a) IN GENERAL.—For fiscal year 1997 and each fiscal year

thereafter, appropriations made for the Bureau of Land Management may be used by the Secretary of the Interior for the purpose

of entering into cooperative agreements with willing private landowners for restoration and enhancement of fish, wildlife, and other

biotic resources on public or private land or both that benefit

these resources on public lands within the watershed.

(b) DIRECT AND INDIRECT WATERSHED AGREEMENTS.—The Secretary of the Interior may enter into a watershed restoration and

enhancement agreement—

(1) directly with a willing private landowner; or

(2) indirectly through an agreement with a state, local,

or tribal government or other public entity, educational institution, or private nonprofit organization.

(c) TERMS AND CONDITIONS.—In order for the Secretary to enter

into a watershed restoration and enhancement agreement—

(1) the agreement shall—

(A) include such terms and conditions mutually agreed

to by the Secretary and the landowner;

(B) improve the viability of and otherwise benefit the

fish, wildlife, and other biotic resources on public land

in the watershed;

(C) authorize the provision of technical assistance by

the Secretary in the planning of management activities

that will further the purposes of the agreement;

(D) provide for the sharing of costs of implementing

the agreement among the Federal government, the landowner, and other entities, as mutually agreed on by the

affected interests; and

(E) ensure that any expenditure by the Secretary

pursuant to the agreement is determined by the Secretary

to be in the public interest; and

(2) the Secretary may require such other terms and conditions as are necessary to protect the public investment on

private lands, provided such terms and conditions are mutually

agreed to by the Secretary and the landowner.

SEC. 125. Visitor Center Designation at Channel Islands

National Park.

(a) The visitor center at Channel Islands National Park, California, is hereby designated as the ‘‘Robert J. Lagomarsino Visitor

Center’’.

(b) Any reference in law, regulation, paper, record, map, or

any other document in the United States to the visitor center

referred to in subsection (a) shall be deemed to be a reference

to the ‘‘Robert J. Lagomarsino Visitor Center’’.

16 USC 410ff

note.

16 USC 1011.
110 STAT. 3009–205 PUBLIC LAW 104–208—SEPT. 30, 1996

TITLE II—RELATED AGENCIES

DEPARTMENT OF AGRICULTURE

FOREST SERVICE

FOREST AND RANGELAND RESEARCH

For necessary expenses of forest and rangeland research as authorized by law, $179,786,000, to remain available until

expended.

STATE AND PRIVATE FORESTRY

For necessary expenses of cooperating with, and providing technical and financial assistance to States, Territories, possessions,

and others and for forest pest management activities, cooperative

forestry and education and land conservation activities,

$155,461,000 to remain available until expended, as authorized

by law: Provided, That of funds available under this heading for

Pacific Northwest Assistance in this or prior appropriations Acts.

$750,000 shall be provided to the World Forestry Center for purposes of continuing scientific research and other authorized efforts

regarding the land exchange efforts in the Umpqua River Basin

region.

NATIONAL FOREST SYSTEM

For necessary expenses of the Forest Service, not otherwise

provided for, for management, protection, improvement, and utilization of the National Forest System, for ecosystem planning, inventory, and monitoring, and for administrative expenses associated

with the management of funds provided under the heads ‘‘Forest

and Rangeland Research,’’ ‘‘State and Private Forestry,’’ ‘‘National

Forest System,’’ ‘‘Wildland Fire Management,’’ ‘‘Reconstruction and

Construction,’’ and ‘‘Land Acquisition,’’ $1,274,781,000 to remain

available until expended, and including 50 per centum of all monies

received during the prior fiscal year as fees collected under the

Land and Water Conservation Fund Act of 1965, as amended,

in accordance with section 4 of the Act (16 U.S.C. 460l–6a(i)):

Provided, That up to $5,000,000 of the funds provided herein for

road maintenance shall be available for the planned obliteration

of roads which are no longer needed.

WILDLAND FIRE MANAGEMENT

For necessary expenses for forest fire presuppression activities

on National Forest System lands, for emergency fire suppression

on or adjacent to such lands or other lands under fire protection

agreement, and for emergency rehabilitation of burned over

National Forest System lands, $530,016,000, to remain available

until expended: Provided, That unexpended balances of amounts

previously appropriated under any other headings for Forest Service

fire activities are transferred to and merged with this appropriation

and subject to the same terms and conditions: Provided further,

That such funds are available for repayment of advances from

other appropriations accounts previously transferred for such purposes.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–206

RECONSTRUCTION AND CONSTRUCTION

For necessary expenses of the Forest Service, not otherwise

provided for, $174,974,000, to remain available until expended for

construction, reconstruction and acquisition of buildings and other

facilities, and for construction, reconstruction and repair of forest

roads and trails by the Forest Service as authorized by 16 U.S.C.

532–538 and 23 U.S.C. 101 and 205: Provided, That not to exceed

$50,000,000, to remain available until expended, may be obligated

for the construction of forest roads by timber purchasers: Provided

further, That funds appropriated under this head for the construction of the Wayne National Forest Supervisor’s Office may be

granted to the Ohio State Highway Patrol as the federal share

of the cost of construction of a new facility to be occupied jointly

by the Forest Service and the Ohio State Highway Patrol: Provided

further, That an agreed upon lease of space in the new facility

shall be provided to the Forest Service without charge for the

life of the building.

LAND ACQUISITION

For expenses necessary to carry out the provisions of the Land

and Water Conservation Fund Act of 1965, as amended (16 U.S.C.

460l–4–11), including administrative expenses, and for acquisition

of land or waters, or interest therein, in accordance with statutory

authority applicable to the Forest Service, $40,575,000, to be derived

from the Land and Water Conservation Fund, to remain available

until expended.

ACQUISITION OF LANDS FOR NATIONAL FORESTS SPECIAL ACTS

For acquisition of lands within the exterior boundaries of the

Cache, Uinta, and Wasatch National Forests, Utah; the Toiyabe

National Forest, Nevada; and the Angeles, San Bernardino, Sequoia,

and Cleveland National Forests, California, as authorized by law,

$1,069,000, to be derived from forest receipts.

ACQUISITION OF LANDS TO COMPLETE LAND EXCHANGES

For acquisition of lands, such sums, to be derived from funds

deposited by State, county, or municipal governments, public school

districts, or other public school authorities pursuant to the Act

of December 4, 1967, as amended (16 U.S.C. 484a), to remain

available until expended.

RANGE BETTERMENT FUND

For necessary expenses of range rehabilitation, protection, and

improvement, 50 per centum of all moneys received during the

prior fiscal year, as fees for grazing domestic livestock on lands

in National Forests in the sixteen Western States, pursuant to

section 401(b)(1) of Public Law 94–579, as amended, to remain

available until expended, of which not to exceed 6 per centum

shall be available for administrative expenses associated with onthe-ground range rehabilitation, protection, and improvements.
110 STAT. 3009–207 PUBLIC LAW 104–208—SEPT. 30, 1996

GIFTS, DONATIONS AND BEQUESTS FOR FOREST AND RANGELAND

RESEARCH

For expenses authorized by 16 U.S.C. 1643(b), $92,000, to

remain available until expended, to be derived from the fund established pursuant to the above Act.

ADMINISTRATIVE PROVISIONS, FOREST SERVICE

Appropriations to the Forest Service for the current fiscal year

shall be available for: (a) purchase of not to exceed 159 passenger

motor vehicles of which 14 will be used primarily for law enforcement purposes and of which 149 shall be for replacement; acquisition of 10 passenger motor vehicles from excess sources, and hire

of such vehicles; operation and maintenance of aircraft, the purchase

of not to exceed two for replacement only, and acquisition of 20

aircraft from excess sources; notwithstanding other provisions of

law, existing aircraft being replaced may be sold, with proceeds

derived or trade-in value used to offset the purchase price for

the replacement aircraft; (b) services pursuant to 7 U.S.C. 2225,

and not to exceed $100,000 for employment under 5 U.S.C. 3109;

(c) purchase, erection, and alteration of buildings and other public

improvements (7 U.S.C. 2250); (d) acquisition of land, waters, and

interests therein, pursuant to 7 U.S.C. 428a; (e) for expenses pursuant to the Volunteers in the National Forest Act of 1972 (16 U.S.C

558a, 558d, 558a note); and (f) for debt collection contracts in

accordance with 31 U.S.C. 3718(c).

None of the funds made available under this Act shall be

obligated or expended to change the boundaries of any region,

to abolish any region, to move or close any regional office for

research, State and private forestry, or National Forest System

administration of the Forest Service, Department of Agriculture,

or to implement any reorganization, ‘‘reinvention’’ or other type

of organizational restructuring of the Forest Service, other than

the relocation of the Regional Office for Region 5 of the Forest

Service from San Francisco to excess military property at Mare

Island, Vallejo, California, without the consent of the House and

Senate Committees on Appropriations.

Any funds available to the Forest Service may be used for

retrofitting Mare Island facilities to accommodate the relocation:

Provided, That funds for the move must come from funds otherwise

available to Region 5: Provided further, That any funds to be

provided for such purposes shall only be available upon approval

of the House and Senate Committees on Appropriations.

Any appropriations or funds available to the Forest Service

may be advanced to the Wildland Fire Management appropriation

and may be used for forest firefighting and the emergency

rehabilitation of burned-over lands under its jurisdiction.

Funds appropriated to the Forest Service shall be available

for assistance to or through the Agency for International Development and the Foreign Agricultural Service in connection with forest

and rangeland research, technical information, and assistance in

foreign countries, and shall be available to support forestry and

related natural resource activities outside the United States and

its territories and possessions, including technical assistance, education and training, and cooperation with United States and international organizations.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–208

None of the funds made available to the Forest Service under

this Act shall be subject to transfer under the provisions of section

702(b) of the Department of Agriculture Organic Act of 1944 (7

U.S.C. 2257) or 7 U.S.C. 147b unless the proposed transfer is

approved in advance by the House and Senate Committees on

Appropriations in compliance with the reprogramming procedures

contained in House Report 103–551.

None of the funds available to the Forest Service may be

reprogrammed without the advance approval of the House and

Senate Committees on Appropriations in accordance with the procedures contained in House Report 103–551.

No funds appropriated to the Forest Service shall be transferred

to the Working Capital Fund of the Department of Agriculture

without the approval of the Chief of the Forest Service.

Notwithstanding any other provision of the law, any appropriations or funds available to the Forest Service may be used to

disseminate program information to private and public individuals

and organizations through the use of nonmonetary items of nominal

value and to provide nonmonetary awards of nominal value and

to incur necessary expenses for the nonmonetary recognition of

private individuals and organizations that make contributions to

Forest Service programs.

Notwithstanding any other provision of law, money collected,

in advance or otherwise, by the Forest Service under authority

of section 101 of Public Law 93–153 (30 U.S.C. 185(1)) as reimbursement of administrative and other costs incurred in processing pipeline right-of-way or permit applications and for costs incurred in

monitoring the construction, operation, maintenance, and termination of any pipeline and related facilities, may be used to

reimburse the applicable appropriation to which such costs were

originally charged.

Funds available to the Forest Service shall be available to

conduct a program of not less than $1,000,000 for high priority

projects within the scope of the approved budget which shall be

carried out by the Youth Conservation Corps as authorized by

the Act of August 13, 1970, as amended by Public Law 93–408.

None of the funds available in this Act shall be used for

timber sale preparation using clearcutting in hardwood stands in

excess of 25 percent of the fiscal year 1989 harvested volume

in the Wayne National Forest, Ohio: Provided, That this limitation

shall not apply to hardwood stands damaged by natural disaster:

Provided further, That landscape architects shall be used to maintain a visually pleasing forest.

Any money collected from the States for fire suppression assistance rendered by the Forest Service on non-Federal lands not

in the vicinity of National Forest System lands shall be used to

reimburse the applicable appropriation and shall remain available

until expended as the Secretary may direct in conducting activities

authorized by 16 U.S.C. 2101 (note), 2101–2110, 1606, and 2111.

Of the funds available to the Forest Service, $1,500 is available

to the Chief of the Forest Service for official reception and representation expenses.

Notwithstanding any other provision of law, the Forest Service

is authorized to employ or otherwise contract with persons at regular rates of pay, as determined by the Service, to perform work

occasioned by emergencies such as fires, storms, floods, earthquakes
110 STAT. 3009–209 PUBLIC LAW 104–208—SEPT. 30, 1996

or any other unavoidable cause without regard to Sundays, Federal

holidays, and the regular workweek.

To the greatest extent possible, and in accordance with the

Final Amendment to the Shawnee National Forest Plan, none of

the funds available in this Act shall be used for preparation of

timber sales using clearcutting or other forms of even aged management in hardwood stands in the Shawnee National Forest, Illinois.

Pursuant to sections 405(b) and 410(b) of Public Law 101–

593, funds up to $1,000,000 for matching funds shall be available

for the National Forest Foundation on a one-for-one basis to match

private contributions for projects on or benefitting National Forest

System lands or related to Forest Service programs.

Pursuant to section 2(b)(2) of Public Law 98–244, up to

$1,000,000 of the funds available to the Forest Service shall be

available for matching funds, as authorized in 16 U.S.C. 3701–

3709, on a one-for-one basis to match private contributions for

projects on or benefitting National Forest System lands or related

to Forest Service programs.

Funds appropriated to the Forest Service shall be available

for interactions with and providing technical assistance to rural

communities for sustainable rural development purposes.

Notwithstanding any other provision of law, 80 percent of the

funds appropriated to the Forest Service in the National Forest

System and Construction accounts and planned to be allocated

to activities under the ‘‘Jobs in the Woods’’ program for projects

on National Forest land in the State of Washington may be granted

directly to the Washington State Department of Fish and Wildlife

for accomplishment of planned projects. Twenty percent of said

funds shall be retained by the Forest Service for planning and

administering projects. Project selection and prioritization shall be

accomplished by the Forest Service with such consultation with

the State of Washington as the Forest Service deems appropriate.

Funds appropriated to the Forest Service shall be available

for payments to counties within the Columbia River Gorge National

Scenic Area, pursuant to sections 14(c)(1) and (2), and section

16(a)(2) of Public Law 99–663.

The Secretary of Agriculture shall by March 31, 1997 report

to the Committees on Appropriations of the House of Representatives and the Senate on the status and disposition of all salvage

timber sales started under the authority of Section 2001 of Public

Law 104–19 and subsequently withdrawn or delayed and completed

under different authorities as a consequence of the July 2, 1996

directive on the implementation of Section 2001 issued by the

Secretary.

The Pacific Northwest Research Station Silviculture Laboratory

in Bend, Oregon is hereby named the ‘‘Robert W. Chandler Building’’.

For purposes of the Southeast Alaska Economic Disaster Fund

as set forth in section 101(c) of Public Law 104–134, the direct

grants provided in subsection (c) shall be considered direct payments

for purposes of all applicable law except that these direct grants

may not be used for lobbying activities.

No employee of the Department of Agriculture may be detailed

or assigned from an agency or office funded by this Act to any

other agency or office of the Department for more than 30 days

unless the individual’s employing agency or office is fully
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–210

reimbursed by the receiving agency or office for the salary and

expenses of the employee for the period of assignment.

DEPARTMENT OF ENERGY

CLEAN COAL TECHNOLOGY

(RESCISSION)

Of the funds made available under this heading for obligation

in fiscal year 1997 or prior years, $123,000,000 are rescinded:

Provided, That funds made available in previous appropriations

Acts shall be available for any ongoing project regardless of the

separate request for proposal under which the project was selected.

FOSSIL ENERGY RESEARCH AND DEVELOPMENT

For necessary expenses in carrying out fossil energy research

and development activities, under the authority of the Department

of Energy Organization Act (Public Law 95–91), including the

acquisition of interest, including defeasible and equitable interests

in any real property or any facility or for plant or facility acquisition

or expansion, and for conducting inquiries, technological investigations and research concerning the extraction, processing, use, and

disposal of mineral substances without objectionable social and

environmental costs (30 U.S.C. 3, 1602, and 1603), performed under

the minerals and materials science programs at the Albany

Research Center in Oregon, $364,704,000, to remain available until

expended: Provided, That no part of the sum herein made available

shall be used for the field testing of nuclear explosives in the

recovery of oil and gas.

ALTERNATIVE FUELS PRODUCTION

(INCLUDING TRANSFER AND RESCISSION OF FUNDS)

Monies received as investment income on the principal amount

in the Great Plains Project Trust at the Norwest Bank of North

Dakota, in such sums as are earned as of October 1, 1996, shall

be deposited in this account and immediately transferred to the

General Fund of the Treasury. Monies received as revenue sharing

from the operation of the Great Plains Gasification Plant shall

be immediately transferred to the General Fund of the Treasury.

Funds are hereby rescinded in the amount of $2,500,000 from

unobligated balances under this head.

NAVAL PETROLEUM AND OIL SHALE RESERVES

For necessary expenses in carrying out naval petroleum and

oil shale reserve activities, $143,786,000, to remain available until

expended: Provided, That the requirements of 10 U.S.C.

7430(b)(2)(B) shall not apply to fiscal year 1997.

ENERGY CONSERVATION

For necessary expenses in carrying out energy conservation

activities, $569,762,000, to remain available until expended, including, notwithstanding any other provision of law, the excess amount

for fiscal year 1997 determined under the provisions of section

10 USC 7430

note.
110 STAT. 3009–211 PUBLIC LAW 104–208—SEPT. 30, 1996

3003(d) of Public Law 99–509 (15 U.S.C. 4502): Provided, That

$149,845,000 shall be for use in energy conservation programs

as defined in section 3008(3) of Public Law 99–509 (15 U.S.C.

4507) and shall not be available until excess amounts are determined under the provisions of section 3003(d) of Public Law 99–

509 (15 U.S.C. 4502): Provided further, That notwithstanding section 3003(d)(2) of Public Law 99–509 such sums shall be allocated

to the eligible programs as follows:$120,845,000 for weatherization

assistance grants and $29,000,000 for State energy conservation

grants.

ECONOMIC REGULATION

For necessary expenses in carrying out the activities of the

Office of Hearing and Appeals, $2,725,000, to remain available

until expended.

STRATEGIC PETROLEUM RESERVE

(INCLUDING TRANSFER OF FUNDS)

For necessary expenses for Strategic Petroleum Reserve facility

development and operations and program management activities

pursuant to the Energy Policy and Conservation Act of 1975, as

amended (42 U.S.C. 6201 et seq.), $220,000,000, to remain available

until expended, of which $220,000,000 shall be repaid from the

‘‘SPR Operating Fund’’ from amounts made available from the

sale of oil from the Reserve: Provided, That notwithstanding section

161 of the Energy Policy and Conservation Act, the Secretary shall

draw down and sell in fiscal year 1997 $220,000,000 worth of

oil from the Strategic Petroleum Reserve: Provided further, That

the proceeds from the sale shall be deposited into a special account

in the Treasury, to be established and known as the ‘‘SPR Operating

Fund’’, and shall, upon receipt, be transferred to the Strategic

Petroleum Reserve account for operations of the Strategic Petroleum

Reserve.

SPR PETROLEUM ACCOUNT

Notwithstanding 42 U.S.C. 6240(d) the United States share

of crude oil in Naval Petroleum Reserve Numbered 1 (Elk Hills)

may be sold or otherwise disposed of to other than the Strategic

Petroleum Reserve: Provided, That outlays in fiscal year 1997

resulting from the use of funds in this account shall not exceed

$5,000,000.

ENERGY INFORMATION ADMINISTRATION

For necessary expenses in carrying out the activities of the Energy Information Administration, $66,120,000 to remain available until expended.

ADMINISTRATIVE PROVISIONS, DEPARTMENT OF ENERGY

Appropriations under this Act for the current fiscal year shall

be available for hire of passenger motor vehicles; hire, maintenance,

and operation of aircraft; purchase, repair, and cleaning of uniforms;
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–212

and reimbursement to the General Services Administration for security guard services.

From appropriations under this Act, transfers of sums may

be made to other agencies of the Government for the performance

of work for which the appropriation is made.

None of the funds made available to the Department of Energy

under this Act shall be used to implement or finance authorized

price support or loan guarantee programs unless specific provision

is made for such programs in an appropriations Act.

The Secretary is authorized to accept lands, buildings, equipment, and other contributions from public and private sources and

to prosecute projects in cooperation with other agencies, Federal,

State, private or foreign: Provided, That revenues and other moneys

received by or for the account of the Department of Energy or

otherwise generated by sale of products in connection with projects

of the Department appropriated under this Act may be retained

by the Secretary of Energy, to be available until expended, and

used only for plant construction, operation, costs, and payments

to cost-sharing entities as provided in appropriate cost-sharing contracts or agreements: Provided further, That the remainder of revenues after the making of such payments shall be covered into

the Treasury as miscellaneous receipts: Provided further, That any

contract, agreement, or provision thereof entered into by the Secretary pursuant to this authority shall not be executed prior to

the expiration of 30 calendar days (not including any day in which

either House of Congress is not in session because of adjournment

of more than three calendar days to a day certain) from the receipt

by the Speaker of the House of Representatives and the President

of the Senate of a full comprehensive report on such project, including the facts and circumstances relied upon in support of the

proposed project.

No funds provided in this Act may be expended by the Department of Energy to prepare, issue, or process procurement documents

for programs or projects for which appropriations have not been

made.

In addition to other authorities set forth in this Act, the Secretary may accept fees and contributions from public and private

sources, to be deposited in a contributed funds account, and prosecute projects using such fees and contributions in cooperation

with other Federal, State or private agencies or concerns.

DEPARTMENT OF HEALTH AND HUMAN SERVICES

INDIAN HEALTH SERVICE

INDIAN HEALTH SERVICES

For expenses necessary to carry out the Act of August 5, 1954

(68 Stat. 674), the Indian Self-Determination Act, the Indian Health

Care Improvement Act, and titles II and III of the Public Health

Service Act with respect to the Indian Health Service,

$1,806,269,000, together with payments received during the fiscal

year pursuant to 42 U.S.C. 238(b) for services furnished by the

Indian Health Service: Provided, That funds made available to

tribes and tribal organizations through contracts, grant agreements,

or any other agreements or compacts authorized by the Indian

Self-Determination and Education Assistance Act of 1975 (25 U.S.C.
110 STAT. 3009–213 PUBLIC LAW 104–208—SEPT. 30, 1996

450), shall be deemed to be obligated at the time of the grant

or contract award and thereafter shall remain available to the

tribe or tribal organization without fiscal year limitation: Provided

further, That $12,000,000 shall remain available until expended,

for the Indian Catastrophic Health Emergency Fund: Provided further, That $356,325,000 for contract medical care shall remain

available for obligation until September 30, 1998: Provided further, That of the funds provided, not less than $11,706,000 shall be

used to carry out the loan repayment program under section 108

of the Indian Health Care Improvement Act: Provided further,

That funds provided in this Act may be used for one-year contracts

and grants which are to be performed in two fiscal years, so long

as the total obligation is recorded in the year for which the funds

are appropriated: Provided further, That the amounts collected by

the Secretary of Health and Human Services under the authority

of title IV of the Indian Health Care Improvement Act shall remain

available until expended for the purpose of achieving compliance

with the applicable conditions and requirements of titles XVIII

and XIX of the Social Security Act (exclusive of planning, design,

or construction of new facilities): Provided further, That of the

funds provided, $7,500,000 shall remain available until expended,

for the Indian Self-Determination Fund, which shall be available

for the transitional costs of initial or expanded tribal contracts,

compacts, grants or cooperative agreements with the Indian Health

Service under the provisions of the Indian Self-Determination Act:

Provided further, That funding contained herein, and in any earlier

appropriations Acts for scholarship programs under the Indian

Health Care Improvement Act (25 U.S.C. 1613) shall remain available for obligation until September 30, 1998: Provided further,

That amounts received by tribes and tribal organizations under

title IV of the Indian Health Care Improvement Act shall be

reported and accounted for and available to the receiving tribes

and tribal organizations until expended.

INDIAN HEALTH FACILITIES

For construction, repair, maintenance, improvement, and equipment of health and related auxiliary facilities, including quarters

for personnel; preparation of plans, specifications, and drawings;

acquisition of sites, purchase and erection of modular buildings,

and purchases of trailers; and for provision of domestic and community sanitation facilities for Indians, as authorized by section 7

of the Act of August 5, 1954 (42 U.S.C. 2004a), the Indian SelfDetermination Act, and the Indian Health Care Improvement Act,

and for expenses necessary to carry out such Acts and titles II

and III of the Public Health Service Act with respect to environmental health and facilities support activities of the Indian Health

Service, $247,731,000, to remain available until expended: Provided,

That notwithstanding any other provision of law, funds appropriated for the planning, design, construction or renovation of health

facilities for the benefit of an Indian tribe or tribes may be used

to purchase land for sites to construct, improve, or enlarge health

or related facilities.

ADMINISTRATIVE PROVISIONS, INDIAN HEALTH SERVICE

Appropriations in this Act to the Indian Health Service shall

be available for services as authorized by 5 U.S.C. 3109 but at
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–214

rates not to exceed the per diem rate equivalent to the maximum

rate payable for senior-level positions under 5 U.S.C. 5376; hire

of passenger motor vehicles and aircraft; purchase of medical equipment; purchase of reprints; purchase, renovation and erection of

modular buildings and renovation of existing facilities; payments

for telephone service in private residences in the field, when authorized under regulations approved by the Secretary; and for uniforms

or allowances therefore as authorized by 5 U.S.C. 5901–5902; and

for expenses of attendance at meetings which are concerned with

the functions or activities for which the appropriation is made

or which will contribute to improved conduct, supervision, or

management of those functions or activities: Provided, That in

accordance with the provisions of the Indian Health Care Improvement Act, non-Indian patients may be extended health care at

all tribally administered or Indian Health Service facilities, subject

to charges, and the proceeds along with funds recovered under

the Federal Medical Care Recovery Act (42 U.S.C. 2651–53) shall

be credited to the account of the facility providing the service

and shall be available without fiscal year limitation: Provided further, That notwithstanding any other law or regulation, funds transferred from the Department of Housing and Urban Development

to the Indian Health Service shall be administered under Public

Law 86–121 (the Indian Sanitation Facilities Act) and Public Law

93–638, as amended: Provided further, That funds appropriated

to the Indian Health Service in this Act, except those used for

administrative and program direction purposes, shall not be subject

to limitations directed at curtailing Federal travel and transportation: Provided further, That notwithstanding any other provision

of law, funds previously or herein made available to a tribe or

tribal organization through a contract, grant, or agreement authorized by title I or title III of the Indian Self-Determination and

Education Assistance Act of 1975 (25 U.S.C. 450), may be

deobligated and reobligated to a self-determination contract under

title I, or a self-governance agreement under title III of such Act

and thereafter shall remain available to the tribe or tribal organization without fiscal year limitation: Provided further, That none

of the funds made available to the Indian Health Service in this

Act shall be used to implement the final rule published in the

Federal Register on September 16, 1987, by the Department of

Health and Human Services, relating to the eligibility for the health

care services of the Indian Health Service until the Indian Health

Service has submitted a budget request reflecting the increased

costs associated with the proposed final rule, and such request

has been included in an appropriations Act and enacted into law:

Provided further, That funds made available in this Act are to

be apportioned to the Indian Health Service as appropriated in

this Act, and accounted for in the appropriation structure set forth

in this Act: Provided further, That funds received from any source,

including tribal contractors and compactors for previously transferred functions which tribal contractors and compactors no longer

wish to retain, for services, goods, or training and technical assistance, shall be retained by the Indian Health Service and shall

remain available until expended by the Indian Health Service:

Provided further, That reimbursements for training, technical

assistance, or services provided by the Indian Health Service will

contain total costs, including direct, administrative, and overhead
110 STAT. 3009–215 PUBLIC LAW 104–208—SEPT. 30, 1996

associated with the provision of goods, services, or technical assistance: Provided further, That the appropriation structure for the

Indian Health Service may not be altered without advance approval

of the House and Senate Committees on Appropriations.

DEPARTMENT OF EDUCATION

OFFICE OF ELEMENTARY AND SECONDARY EDUCATION

INDIAN EDUCATION

For necessary expenses to carry out, to the extent not otherwise

provided, title IX, part A of the Elementary and Secondary Education Act of 1965, as amended, and section 215 of the Department

of Education Organization Act, $61,000,000.

OTHER RELATED AGENCIES

OFFICE OF NAVAJO AND HOPI INDIAN RELOCATION

SALARIES AND EXPENSES

For necessary expenses of the Office of Navajo and Hopi Indian

Relocation as authorized by Public Law 93–531, $19,345,000, to

remain available until expended: Provided, That funds provided

in this or any other appropriations Act are to be used to relocate

eligible individuals and groups including evictees from District 6,

Hopi-partitioned lands residents, those in significantly substandard

housing, and all others certified as eligible and not included in

the preceding categories: Provided further, That none of the funds

contained in this or any other Act may be used by the Office

of Navajo and Hopi Indian Relocation to evict any single Navajo

or Navajo family who, as of November 30, 1985, was physically

domiciled on the lands partitioned to the Hopi Tribe unless a

new or replacement home is provided for such household: Provided

further, That no relocatee will be provided with more than one

new or replacement home: Provided further, That the Office shall

relocate any certified eligible relocatees who have selected and

received an approved homesite on the Navajo reservation or selected

a replacement residence off the Navajo reservation or on the land

acquired pursuant to 25 U.S.C. 640d–10.

INSTITUTE OF AMERICAN INDIAN AND ALASKA NATIVE CULTURE AND

ARTS DEVELOPMENT

PAYMENT TO THE INSTITUTE

For payment to the Institute of American Indian and Alaska

Native Culture and Arts Development, as authorized by title XV

of Public Law 99–498, as amended (20 U.S.C. 56, part A),

$5,500,000.

SMITHSONIAN INSTITUTION

SALARIES AND EXPENSES

For necessary expenses of the Smithsonian Institution, as

authorized by law, including research in the fields of art, science,
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–216

and history; development, preservation, and documentation of the

National Collections; presentation of public exhibits and performances; collection, preparation, dissemination, and exchange of

information and publications; conduct of education, training, and

museum assistance programs; maintenance, alteration, operation,

lease (for terms not to exceed thirty years), and protection of buildings, facilities, and approaches; not to exceed $100,000 for services

as authorized by 5 U.S.C. 3109; up to 5 replacement passenger

vehicles; purchase, rental, repair, and cleaning of uniforms for

employees; $317,557,000, of which not to exceed $30,665,000 for

the instrumentation program, collections acquisition, Museum Support Center equipment and move, exhibition reinstallation, the

National Museum of the American Indian, the repatriation of skeletal remains program, research equipment, information management, and Latino programming shall remain available until

expended, and including such funds as may be necessary to support

American overseas research centers and a total of $125,000 for

the Council of American Overseas Research Centers: Provided, That

funds appropriated herein are available for advance payments to

independent contractors performing research services or participating in official Smithsonian presentations.

CONSTRUCTION AND IMPROVEMENTS, NATIONAL ZOOLOGICAL PARK

For necessary expenses of planning, construction, remodeling,

and equipping of buildings and facilities at the National Zoological

Park, by contract or otherwise, $3,850,000, to remain available

until expended.

REPAIR AND RESTORATION OF BUILDINGS

For necessary expenses of repair and restoration of buildings

owned or occupied by the Smithsonian Institution, by contract or

otherwise, as authorized by section 2 of the Act of August 22,

1949 (63 Stat. 623), including not to exceed $10,000 for services

as authorized by 5 U.S.C. 3109, $39,000,000, to remain available

until expended: Provided, That contracts awarded for environmental

systems, protection systems, and exterior repair or restoration of

buildings of the Smithsonian Institution may be negotiated with

selected contractors and awarded on the basis of contractor qualifications as well as price.

CONSTRUCTION

For necessary expenses for construction, $10,000,000, to remain

available until expended.

NATIONAL GALLERY OF ART

SALARIES AND EXPENSES

For the upkeep and operations of the National Gallery of Art,

the protection and care of the works of art therein, and administrative expenses incident thereto, as authorized by the Act of March

24, 1937 (50 Stat. 51), as amended by the public resolution of

April 13, 1939 (Public Resolution 9, Seventy-sixth Congress), including services as authorized by 5 U.S.C. 3109; payment in advance

when authorized by the treasurer of the Gallery for membership
110 STAT. 3009–217 PUBLIC LAW 104–208—SEPT. 30, 1996

in library, museum, and art associations or societies whose publications or services are available to members only, or to members

at a price lower than to the general public; purchase, repair, and

cleaning of uniforms for guards, and uniforms, or allowances therefor, for other employees as authorized by law (5 U.S.C. 5901–

5902); purchase or rental of devices and services for protecting

buildings and contents thereof, and maintenance, alteration, improvement, and repair of buildings, approaches, and grounds; and

purchase of services for restoration and repair of works of art

for the National Gallery of Art by contracts made, without advertising, with individuals, firms, or organizations at such rates or prices

and under such terms and conditions as the Gallery may deem

proper, $53,899,000, of which not to exceed $3,026,000 for the

special exhibition program shall remain available until expended.

REPAIR, RESTORATION AND RENOVATION OF BUILDINGS

For necessary expenses of repair, restoration and renovation

of buildings, grounds and facilities owned or occupied by the

National Gallery of Art, by contract or otherwise, as authorized,

$5,942,000, to remain available until expended: Provided, That

contracts awarded for environmental systems, protection systems,

and exterior repair or renovation of buildings of the National Gallery of Art may be negotiated with selected contractors and awarded

on the basis of contractor qualifications as well as price.

JOHN F. KENNEDY CENTER FOR THE PERFORMING ARTS

OPERATIONS AND MAINTENANCE

For necessary expenses for the operation, maintenance and

security of the John F. Kennedy Center for the Performing Arts,

$10,875,000.

CONSTRUCTION

For necessary expenses of capital repair and rehabilitation

of the existing features of the building and site of the John F.

Kennedy Center for the Performing Arts, $9,000,000, to remain

available until expended.

WOODROW WILSON INTERNATIONAL CENTER FOR SCHOLARS

SALARIES AND EXPENSES

For expenses necessary in carrying out the provisions of the

Woodrow Wilson Memorial Act of 1968 (82 Stat. 1356) including

hire of passenger vehicles and services as authorized by 5 U.S.C.

3109, $5,840,000.

NATIONAL FOUNDATION ON THE ARTS AND THE HUMANITIES

NATIONAL ENDOWMENT FOR THE ARTS

GRANTS AND ADMINISTRATION

For necessary expenses to carry out the National Foundation

on the Arts and the Humanities Act of 1965, as amended,

$82,734,000, shall be available to the National Endowment for
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–218

the Arts for the support of projects and productions in the arts

through assistance to organizations and individuals pursuant to

section 5(c) of the Act, and for administering the functions of the

Act, to remain available until expended.

MATCHING GRANTS

To carry out the provisions of section 10(a)(2) of the National

Foundation on the Arts and the Humanities Act of 1965, as amended, $16,760,000, to remain available until expended, to the National

Endowment for the Arts: Provided, That this appropriation shall

be available for obligation only in such amounts as may be equal

to the total amounts of gifts, bequests, and devises of money,

and other property accepted by the Chairman or by grantees of

the Endowment under the provisions of section 10(a)(2), subsections

11(a)(2)(A) and 11(a)(3)(A) during the current and preceding fiscal

years for which equal amounts have not previously been appropriated.

NATIONAL ENDOWMENT FOR THE HUMANITIES

GRANTS AND ADMINISTRATION

For necessary expenses to carry out the National Foundation

on the Arts and the Humanities Act of 1965, as amended,

$96,100,000 shall be available to the National Endowment for the

Humanities for support of activities in the humanities, pursuant

to section 7(c) of the Act, and for administering the functions

of the Act, to remain available until expended.

MATCHING GRANTS

To carry out the provisions of section 10(a)(2) of the National

Foundation on the Arts and the Humanities Act of 1965, as amended, $13,900,000, to remain available until expended, of which

$8,000,000 shall be available to the National Endowment for the

Humanities for the purposes of section 7(h): Provided, That this

appropriation shall be available for obligation only in such amounts

as may be equal to the total amounts of gifts, bequests, and devises

of money, and other property accepted by the Chairman or by

grantees of the Endowment under the provisions of subsections

11(a)(2)(B) and 11(a)(3)(B) during the current and preceding fiscal

years for which equal amounts have not previously been appropriated.

INSTITUTE OF MUSEUM SERVICES

GRANTS AND ADMINISTRATION

For carrying out title II of the Arts, Humanities, and Cultural

Affairs Act of 1976, as amended, $22,000,000, to remain available

until expended.

ADMINISTRATIVE PROVISIONS

None of the funds appropriated to the National Foundation

on the Arts and the Humanities may be used to process any grant

or contract documents which do not include the text of 18 U.S.C.

1913: Provided, That none of the funds appropriated to the National
110 STAT. 3009–219 PUBLIC LAW 104–208—SEPT. 30, 1996

Foundation on the Arts and the Humanities may be used for official

reception and representation expenses.

COMMISSION OF FINE ARTS

SALARIES AND EXPENSES

For expenses made necessary by the Act establishing a Commission of Fine Arts (40 U.S.C. 104), $867,000.

NATIONAL CAPITAL ARTS AND CULTURAL AFFAIRS

For necessary expenses as authorized by Public Law 99–190

(20 U.S.C. 956(a)), as amended, $6,000,000.

ADVISORY COUNCIL ON HISTORIC PRESERVATION

SALARIES AND EXPENSES

For necessary expenses of the Advisory Council on Historic

Preservation (Public Law 89–665, as amended), $2,500,000: Provided, That none of these funds shall be available for the compensation of Executive Level V or higher position.

NATIONAL CAPITAL PLANNING COMMISSION

SALARIES AND EXPENSES

For necessary expenses, as authorized by the National Capital

Planning Act of 1952 (40 U.S.C 71–71i), including services as

authorized by 5 U.S.C. 3109, $5,390,000: Provided, That all

appointed members will be compensated at a rate not to exceed

the rate for Executive Schedule Level IV.

FRANKLIN DELANO ROOSEVELT MEMORIAL COMMISSION

SALARIES AND EXPENSES

For necessary expenses of the Franklin Delano Roosevelt Memorial Commission, established by the Act of August 11, 1955 (69

Stat. 694), as amended by Public Law 92–332 (86 Stat. 401),

$500,000 to remain available until expended.

UNITED STATES HOLOCAUST MEMORIAL COUNCIL

HOLOCAUST MEMORIAL COUNCIL

For expenses of the Holocaust Memorial Council, as authorized

by Public Law 96–388 (36 U.S.C. 1401), as amended, $30,707,000,

of which $1,575,000 for the Museum’s repair and rehabilitation

program and $1,264,000 for the Museum’s exhibitions program

shall remain available until expended.

TITLE III—GENERAL PROVISIONS

SEC. 301. The expenditure of any appropriation under this

Act for any consulting service through procurement contract, pursuant to 5 U.S.C. 3109, shall be limited to those contracts where

such expenditures are a matter of public record and available
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–220

for public inspection, except where otherwise provided under existing law, or under existing Executive Order issued pursuant to

existing law.

SEC. 302. No part of any appropriation under this Act shall

be available to the Secretary of the Interior or the Secretary of

Agriculture for the leasing of oil and natural gas by noncompetitive

bidding on publicly owned lands within the boundaries of the Shawnee National Forest, Illinois: Provided, That nothing herein is

intended to inhibit or otherwise affect the sale, lease, or right

to access to minerals owned by private individuals.

SEC. 303. No part of any appropriation contained in this Act

shall be available for any activity or the publication or distribution

of literature that in any way tends to promote public support

or opposition to any legislative proposal on which congressional

action is not complete.

SEC. 304. No part of any appropriation contained in this Act

shall remain available for obligation beyond the current fiscal year

unless expressly so provided herein.

SEC. 305. None of the funds provided in this Act to any department or agency shall be obligated or expended to provide a personal

cook, chauffeur, or other personal servants to any officer or

employee of such department or agency except as otherwise provided

by law.

SEC. 306. No assessments may be levied against any program,

budget activity, subactivity, or project funded by this Act unless

advance notice of such assessments and the basis therefor are

presented to the Committees on Appropriations and are approved

by such Committees.

SEC. 307. (a) COMPLIANCE WITH BUY AMERICAN ACT.—None

of the funds made available in this Act may be expended by an

entity unless the entity agrees that in expending the funds the

entity will comply with sections 2 through 4 of the Act of March

3, 1933 (41 U.S.C. 10a–10c; popularly known as the ‘‘Buy American

Act’’).

(b) SENSE OF CONGRESS; REQUIREMENT REGARDING NOTICE.—

(1) PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS.—In the case of any equipment or product that may

be authorized to be purchased with financial assistance provided using funds made available in this Act, it is the sense

of the Congress that entities receiving the assistance should,

in expending the assistance, purchase only American-made

equipment and products.

(2) NOTICE TO RECIPIENTS OF ASSISTANCE.—In providing

financial assistance using funds made available in this Act,

the head of each Federal agency shall provide to each recipient

of the assistance a notice describing the statement made in

paragraph (1) by the Congress.

(c) PROHIBITION OF CONTRACTS WITH PERSONS FALSELY LABELING PRODUCTS AS MADE IN AMERICA.—If it has been finally determined by a court or Federal agency that any person intentionally

affixed a label bearing a ‘‘Made in America’’ inscription, or any

inscription with the same meaning, to any product sold in or shipped

to the United States that is not made in the United States, the

person shall be ineligible to receive any contract or subcontract

made with funds made available in this Act, pursuant to the debarment, suspension, and ineligibility procedures described in sections

9.400 through 9.409 of title 48, Code of Federal Regulations.
110 STAT. 3009–221 PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 308. None of the funds in this Act may be used to plan,

prepare, or offer for sale timber from trees classified as giant

sequoia (Sequoiadendron giganteum) which are located on National

Forest System or Bureau of Land Management lands in a manner

different than such sales were conducted in fiscal year 1995.

SEC. 309. None of the funds made available by this Act may

be obligated or expended by the National Park Service to enter

into or implement a concession contract which permits or requires

the removal of the underground lunchroom at the Carlsbad Caverns

National Park.

SEC. 310. Where the actual costs of construction projects under

self-determination contracts, compacts, or grants, pursuant to Public

Laws 93–638, 103–413, or 100–297, are less than the estimated

costs thereof, use of the resulting excess funds shall be determined

by the appropriate Secretary after consultation with the tribes.

SEC. 311. Notwithstanding Public Law 103–413, quarterly payments of funds to tribes and tribal organizations under annual

funding agreements pursuant to section 108 of Public Law 93–

638, as amended, may be made on the first business day following

the first day of a fiscal quarter.

SEC. 312. None of the funds appropriated or otherwise made

available by this Act may be used for the AmeriCorps program,

unless the relevant agencies of the Department of the Interior

and/or Agriculture follow appropriate reprogramming guidelines:

Provided, That if no funds are provided for the AmeriCorps program

by the VA–HUD and Independent Agencies fiscal year 1997 appropriations bill, then none of the funds appropriated or otherwise

made available by this Act may be used for the AmeriCorps programs.

SEC. 313. None of the funds made available in this Act may

be used (1) to demolish the bridge between Jersey City, New Jersey,

and Ellis Island; or (2) to prevent pedestrian use of such bridge,

when it is made known to the Federal official having authority

to obligate or expend such funds that such pedestrian use is consistent with generally accepted safety standards.

SEC. 314. (a) None of the funds appropriated or otherwise

made available pursuant to this Act shall be obligated or expended

to accept or process applications for a patent for any mining or

mill site claim located under the general mining laws.

(b) The provisions of subsection (a) shall not apply if the Secretary of the Interior determines that, for the claim concerned:

(1) a patent application was filed with the Secretary on or before

September 30, 1994, and (2) all requirements established under

sections 2325 and 2326 of the Revised Statutes (30 U.S.C. 29

and 30) for vein or lode claims and sections 2329, 2330, 2331,

and 2333 of the Revised Statutes (30 U.S.C. 35, 36, and 37) for

placer claims, and section 2337 of the Revised Statutes (30 U.S.C.

42) for mill site claims, as the case may be, were fully complied

with by the applicant by that date. (c) PROCESSING SCHEDULE.—For those applications for patents

pursuant to subsection (b) which were filed with the Secretary

of the Interior, prior to September 30, 1994, the Secretary of the

Interior shall—

(1) Within three months of the enactment of this Act,

file with the House and Senate Committees on Appropriations

and the Committee on Resources of the House of Representatives and the Committee on Energy and Natural Resources
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–222

of the United States Senate a plan which details how the

Department of the Interior will make a final determination

as to whether or not an applicant is entitled to a patent under

the general mining laws on at least 90 percent of such applications within five years of the enactment of this Act and file

reports annually thereafter with the same committees detailing

actions taken by the Department of the Interior to carry out

such plan; and (2) Take such actions as may be necessary to carry out

such plan.

(d) MINERAL EXAMINATIONS.—In order to process patent

applications in a timely and responsible manner, upon the request

of a patent applicant, the Secretary of the Interior shall allow

the applicant to fund a qualified third-party contractor to be selected

by the Bureau of Land Management to conduct a mineral examination of the mining claims or mill sites contained in a patent application as set forth in subsection (b). The Bureau of Land Management

shall have the sole responsibility to choose and pay the thirdparty contractor in accordance with the standard procedures

employed by the Bureau of Land Management in the retention

of third-party contractors. SEC. 315. None of the funds appropriated or otherwise made

available by this Act may be used for the purposes of acquiring

lands in the counties of Gallia, Lawrence, Monroe, or Washington,

Ohio, for the Wayne National Forest.

SEC. 316. Of the funds provided to the National Endowment

for the Arts:

(a) The Chairperson shall only award a grant to an individual if such grant is awarded to such individual for a literature

fellowship, National Heritage Fellowship, or American Jazz

Masters Fellowship.

(b) The Chairperson shall establish procedures to ensure

that no funding provided through a grant, except a grant made

to a State or local arts agency, or regional group, may be

used to make a grant to any other organization or individual

to conduct activity independent of the direct grant recipient.

Nothing in this subsection shall prohibit payments made in

exchange for goods and services.

(c) No grant shall be used for seasonal support to a group,

unless the application is specific to the contents of the season,

including identified programs and/or projects.

SEC. 317. None of the funds available to the Department of

the Interior or the Department of Agriculture by this or any other

Act may be used to prepare, promulgate, implement, or enforce

any interim or final rule or regulation pursuant to Title VIII of

the Alaska National Interest Lands Conservation Act to assert

jurisdiction, management, or control over any waters (other than

non-navigable waters on Federal lands), non-Federal lands, or lands

selected by, but not conveyed to, the State of Alaska pursuant

to the Submerged Lands Act of 1953 or the Alaska Statehood

Act, or an Alaska Native Corporation pursuant to the Alaska Native

Claims Settlement Act.

SEC. 318. No funds appropriated under this or any other Act

shall be used to review or modify sourcing areas previously approved

under section 490(c)(3) of the Forest Resources Conservation and

Shortage Relief Act of 1990 (Public Law 101–382) or to enforce

or implement Federal regulations 36 CFR part 223 promulgated
110 STAT. 3009–223 PUBLIC LAW 104–208—SEPT. 30, 1996

on September 8, 1995. The regulations and interim rules in effect

prior to September 8, 1995 (36 CFR 223.48, 36 CFR 223.87, 36

CFR 223 subpart D, 36 CFR 223 subpart F, and 36 CFR 261.6)

shall remain in effect. The Secretary of Agriculture or the Secretary

of the Interior shall not adopt any policies concerning Public Law

101–382 or existing regulations that would restrain domestic

transportation or processing of timber from private lands or impose

additional accountability requirements on any timber. The Secretary

of Commerce shall extend until September 30, 1997, the order

issued under section 491(b)(2)(A) of Public Law 101–382 and shall

issue an order under section 491(b)(2)(B) of such law that will

be effective October 1, 1997.

SEC. 319. Section 101(c) of Public Law 104–134 is amended

as follows: Under the heading ‘‘Title III—General Provisions’’ amend

section 315(b) by striking ‘‘50, areas,’’ and inserting in lieu thereof

‘‘100, areas,’’ and amend section 315(f) by striking ‘‘September 30,

1998’’ and inserting in lieu thereof ‘‘September 30, 1999’’ and by

striking ‘‘September 30, 2001’’ and inserting in lieu thereof ‘‘September 30, 2002’’.

SEC. 320. None of the amounts made available by this Act

may be used for design, planning, implementation, engineering,

construction, or any other activity in connection with a scenic shoreline drive in Pictured Rocks National Lakeshore.

SEC. 321. LAND TRANSFER, BEND SILVICULTURE LAB,

DESCHUTES NATIONAL FOREST, OREGON.—

(a) TRANSFER OF REAL PROPERTY AND ALL IMPROVEMENTS

LOCATED THEREON.—Notwithstanding any other provisions of

law, there is hereby transferred, without consideration and

subject to existing valid rights, all right, title and interest

of the United States in and to approximately 5.73 acres of

land as described by plat dated July 7, 1977, (which is on

file and available for public inspection in the Office of the

Chief, USDA Forest Service, Washington, D.C.), as well as

all improvements, including the Bend Silviculture Lab located

thereon, to the Central Oregon Community College, Bend,

Oregon; this being a portion of the same tract acquired by

donation from the City of Bend on August 10, 1960, through

a Bargain and Sale deed to the USDA Forest Service for use

as a research lab, and recorded in volume 125, page 508 of

the Deschutes County, Oregon, Deed Records.

(b) CONDITIONS OF TRANSFER.—The transfer effected by

subsection (a) is made subject to no special terms or conditions.

SEC. 322. No part of any appropriation contained in this Act

or any other Act shall be expended or obligated to fund the activities

of the Office of Forestry and Economic Assistance, or any successor

office after December 31, 1996.

SEC. 323. (a) The Secretary of the Interior is authorized to

accept title to approximately 84 acres of land located in Prince

Georges County, Maryland, adjacent to Oxon Cove Park, and bordered generally by the Potomac River, Interstate 295 and the Woodrow Wilson Bridge, or any interest therein, and in exchange therefor

may convey to the Corrections Corporation of America approximately 50 acres of land located in Oxon Cove Park in the District

of Columbia and bordered generally by Oxon Cove, Interstate 295

and the District of Columbia Impound Lot, or any interest therein.

(b) Before proceeding with an exchange, the Secretary shall

determine if the federal property is suitable for exchange under

16 USC 460l–6a

note.

16 USC 620c

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–224

the criteria normally used by the National Park Service. The

exchange shall comply with applicable regulations and National

Park Service policies for land exchanges.

(c)(1) The Secretary shall not acquire any lands under this

section if the Secretary determines that the lands or any portion

thereof have become contaminated with hazardous substances (as

defined in the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. 960l)).

(2) Notwithstanding any other provision of law, the United

States shall have no responsibility or liability with respect to any

hazardous wastes or other substances placed on any of the lands

covered by this section after their transfer to the ownership of

any party, but nothing in this section shall be construed as either

diminishing or increasing any responsibility or liability of the

United States based on the condition of such lands on the date

of their transfer to the ownership of another party: Provided, That

the Corrections Corporation of America shall indemnify the United

States for liabilities arising under the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. 960l)

and the Resource Conservation Recovery Act (42 U.S.C. 690l, et

seq.).

(d) The properties so exchanged either shall be approximately

equal in fair market value or if they are not approximately equal,

shall be equalized by the payment of cash to the Corporation

or to the Secretary as required or in the event the value of the

Corporation’s lands is greater, the acreage may be reduced so that

the fair market value is approximately equal: Provided, That the

Secretary shall order appraisals made of the fair market value

for improvements thereon: Provided further, That any such cash

payment received by the Secretary shall be deposited to ‘‘Miscellaneous Trust Funds, National Park Service’’ and shall be available

without further appropriation until expended for the acquisition

of land within the National Park System.

(e) Costs of conducting necessary land surveys, preparing the

legal descriptions of the lands to be conveyed, performing the

appraisals, and administrative costs incurred in completing the

exchange shall be borne by the Corporation.

(f) Following any exchange authorized by this provision, the

boundaries of Oxon Cove Park shall be expanded to include the

land acquired by the United States.

SEC. 324. SECTION 1. LAND EXCHANGE.—

(a) EXCHANGE.—Subject to subsection (c), the Secretary

of Agriculture (referred to in this section as the ‘‘Secretary’’)

shall convey all right, title, and interest of the United States

in and to the National Forest System lands described in subsection (b)(1) to Public Utility District No. 1 of Chelan County,

Washington (referred to in this section as the ‘‘Public Utility

District’’), in exchange for the conveyance to the Department

of Agriculture by the Public Utility District of all right, title,

and interest of the Public Utility District in and to the lands

described in subsection (b)(2).

(b) DESCRIPTION OF LANDS.—

(1) NATIONAL FOREST SYSTEM LANDS.—The National

Forest System lands referred to in subsection (a) are 122

acres, more or less, that are partially occupied by a

wastewater treatment facility referred to in subsection

(c)(4)(A) with the following legal description:
110 STAT. 3009–225 PUBLIC LAW 104–208—SEPT. 30, 1996

(A) The NE1⁄4 of SW1⁄4 of section 27 of township

27 north, range 17 east, Willamette Meridian, Chelan

County, Washington.

(B) The N1⁄2 of SE1⁄4 of SW1⁄4 of such section

27.

(C) The W1⁄2 of NW1⁄4 of SE1⁄4 of such section

27.

(D) The NW1⁄4 of SW1⁄4 of SE1⁄4 of such section

27.

(E) The E1⁄2 of NW1⁄4 of the SE1⁄4 of such section

27.

(F) That portion of the S1⁄2 of SE1⁄4 of SW1⁄4 lying

north of the northerly edge of Highway 209 rightof-way of such section 27.

(2) PUBLIC UTILITY DISTRICT LANDS.—The lands owned

by the Public Utility District are 109.15 acres, more or

less, with the following legal description:

(A) S1⁄2 of SW1⁄4 of section 35 of township 26

north, range 17 east, Willamette Meridian, Chelan

County, Washington.

(B) The area specified by Public Utility District

No. 1 as Government Lot 5 in such section 35.

(c) REQUIREMENTS FOR EXCHANGE.—

(1) TITLE ACCEPTANCE AND CONVEYANCE.—Upon offer

by the Public Utility District of all right, title and interest

in and to the lands described in subsection (b)(2), if the

title is found acceptable by the Secretary, the Secretary

shall accept title to such lands and interests therein and

shall convey to the Public Utility District all right, title,

and interest of the United States in and to the lands

described in subsection (b)(1).

(2) APPRAISALS REQUIRED.—Before making an exchange

pursuant to subsection (a), the Secretary shall conduct

appraisals of the lands that are subject to the exchange

to determine the fair market value of the lands. Such

appraisals shall not include the value of the wastewater

treatment facility referred to in paragraph (4)(A).

(3) ADDITIONAL CONSIDERATION.—If, on the basis of

the appraisals made under paragraph (1), the Secretary

determines that the fair market value of the lands to

be conveyed by one party under subsection (a) is less than

the fair market value of the lands to be conveyed by the

other party under subsection (a), then, as a condition of

making the exchange under subsection (a), the party

conveying the lands with the lesser value shall pay the

other party the amount by which the fair market value

of the lands of greater value exceeds the fair market value

of the lands of lesser value.

(4) CONVEYANCE OF WASTEWATER TREATMENT FACILITY.—(A) As part of an exchange made under subsection

(a), the Secretary shall convey to the Public Utility District

of Chelan County, Washington, all right, title and interest

of the United States in and to the wastewater treatment

facility (including the wastewater treatment plant and

associated lagoons) located on the lands described in subsection (b)(1) that is in existence on the date of the

exchange.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–226

(B) As a condition for the exchange under subsection

(a), the Public Utility District shall provide for a credit

equal to the fair market value of the wastewater treatment

facility conveyed pursuant to subparagraph (A) (determined

as of November 4, 1991), that shall be applied to the

United States’ share of any new wastewater treatment

facility constructed by the Public Utility District after such

date.

(d) ADDITIONAL TERMS AND CONDITIONS.—The Secretary

may require such additional terms and conditions in connection

with the exchange under this section as the Secretary determines appropriate to protect the interests of the United States.

SEC. 325. ‘‘Snoqualmie National Forest Boundary Adjustment

Act of 1996.’’

(a) IN GENERAL.—The Secretary of Agriculture is hereby

directed to modify the boundary of the Snoqualmie National

Forest to include and encompass 10,589.47 acres, more or less,

as generally depicted on a map entitled ‘‘Snoqualmie National

Forest Proposed 1996 Boundary Modification’’ dated July, 1996.

Such map, together with a legal description of all lands included

in the boundary adjustment, shall be on file and available

for public inspection in the Office of the Chief of the Forest

Service in Washington, District of Columbia.

(b) RULE FOR LAND AND WATER CONSERVATION FUND.—

For the purposes of section 7 of the Land and Water Conservation Fund Act of 1965 (16 U.S.C. 460l–9), the boundary of

the Snoqualmie National Forest, as modified pursuant to subsection (a), shall be considered to be the boundary of that

National Forest as of January 1, 1965.

SEC. 326. Sugarbush Land Exchange Act of 1996.

(a) EXCHANGE OR SALE OF LAND.—

(1) If Sugarbush Resort Holdings, Inc. conveys to the

United States land acceptable to the Secretary of Agriculture that is at least equal in value to the value of

the land described in subsection (a)(2), makes a payment

of cash at least equal to that value, or conveys land and

makes a payment of cash that in combination are at least

equal to that value, the Secretary, subject to valid existing

rights, shall, under such terms and conditions as the Secretary may prescribe, convey all right, title, and interest

of the United States in and to the land described in subsection (a)(2).

(2) FEDERAL LAND TO BE EXCHANGED.—The Federal

land to be exchanged is approximately 57 acres of federally

owned land in the Green Mountain National Forest

depicted on the map entitled ‘‘Green Mountain National

Forest, Sugarbush Exchange,’’ dated December 1995.

(3) Lands acquired from Sugarbush Resort Holdings,

Inc.—Any land conveyed to the United States in an

exchange under subsection (a)(1) shall be subject to such

valid existing rights of record as may be acceptable to

the Secretary, and the title to the parcel shall conform

with the title approval standards applicable to federal land

acquisitions.

(b) ADMINISTRATION OF LAND.—

(1) ADDITION TO GREEN MOUNTAIN NATIONAL FOREST.—

On approval and acceptance of title by the Secretary, the
110 STAT. 3009–227 PUBLIC LAW 104–208—SEPT. 30, 1996

land acquired by the United States through an exchange

or with proceeds from a sale under subsection (a) shall

become part of the Green Mountain National Forest, and

the boundaries of the National Forest shall be adjusted

to include the land.

(2) ADMINISTRATION.—Land acquired under this Act

shall be administered by the Secretary in accordance with

the laws (including regulations) pertaining to the National

Forest System.

(3) AUTHORITY OF THE SECRETARY.—This section does

not limit the authority of the Secretary to adjust the boundaries of the Green Mountain National Forest pursuant

to section 11 of the Act of March 1, 1911 (36 Stat. 963,

chapter 186; 16 U.S.C. 521) (commonly known as the

‘‘Weeks Law’’).

(4) For the purposes of section 7 of the Land and

Water Conservation Fund Act of 1965 (16 U.S.C. 460l–

9), the boundaries of the Green Mountain National Forest,

as adjusted under this Act, shall be considered to be the

boundaries of the Green Mountain National Forest as of

January 1, 1965.

SEC. 327. Snowbird Wilderness Study Area.

(a) IN GENERAL.—Section 6(a)(4) of the North Carolina Wilderness Act of 1984 (Public Law 98–324) is amended—

(1) by striking ‘‘eight thousand four hundred and ninety

acres’’ and inserting ‘‘8,390 acres’’; and

(2) by striking ‘‘July 1983’’ and inserting ‘‘July 1996’’.

(b) MANAGEMENT.—The Secretary of Agriculture shall manage

the area removed from wilderness study status by the amendments

made by subsection (a) in accordance with the provisions of law

applicable to adjacent areas outside the wilderness study area.

SEC. 328. Renaming of Wilderness Area.

(a) The Columbia Wilderness, created by the Oregon Wilderness

Act of 1984, Public Law 98–328, located in the Mt. Hood National

Forest, Oregon, shall be known and designated as the ‘‘Mark O.

Hatfield Wilderness’’.

(b) Any references in a law, map, regulation, document, paper,

or other record of the United States to the Columbia Wilderness

shall be deemed to be a reference to the ‘‘Mark O. Hatfield Wilderness’’.

SEC. 329. Notwithstanding any other provision of law, for fiscal

year 1997 the Secretaries of Agriculture and Interior are authorized

to limit competition for watershed restoration project contracts as

part of the ‘‘Jobs in the Woods’’ component of the President’s Forest

Plan for the Pacific Northwest to individuals and entities in historically timber-dependent areas in the States of Washington, Oregon,

and northern California that have been affected by reduced timber

harvesting on Federal lands.

SEC. 330. Section 9 of the Rhode Island Indian Claims Settlement Act (25 U.S.C. 1708) is amended—

(1) by striking ‘‘Sec. 9. Except as’’; and inserting the following:

‘‘(a) IN GENERAL.—Except as’’;

(2) by striking the section heading and inserting the following:

16 USC 1132

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–228

‘‘SEC. 9. APPLICABILITY OF STATE LAW; TREATMENT OF SETTLEMENT

LANDS UNDER THE INDIAN GAMING REGULATORY ACT.’’;

and

(3) by adding at the end the following new subsection:

‘‘(b) TREATMENT OF SETTLEMENT LANDS UNDER THE INDIAN

GAMING REGULATORY ACT.—For purposes of the Indian Gaming

Regulatory Act (25 U.S.C. 2701 et seq.), settlement lands shall

not be treated as Indian lands.’’.

TITLE IV—EMERGENCY APPROPRIATIONS

DEPARTMENT OF THE INTERIOR

BUREAU OF LAND MANAGEMENT

MANAGEMENT OF LANDS AND RESOURCES

For an additional amount for management of lands and

resources, $3,500,000, to remain available until expended, to restore

public lands damaged by fire: Provided, That Congress hereby designates this amount as an emergency requirement pursuant to

section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this

amount shall be available only to the extent that an official budget

request for a specific dollar amount, that includes designation of

the entire amount as an emergency requirement as defined in

the Balanced Budget and Emergency Deficit Control Act of 1985,

as amended, is transmitted by the President to the Congress.

WILDLAND FIRE MANAGEMENT

For an additional amount for wildland fire management, $100,000,000, to remain available until expended, for emergency

rehabilitation and wildfire suppression activities of the Department

of the Interior: Provided, That Congress hereby designates this

amount as an emergency requirement pursuant to section

251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this amount

shall be available only to the extent that an official budget request

for a specific dollar amount, that includes designation of the entire

amount as an emergency requirement as defined in the Balanced

Budget and Emergency Deficit Control Act of 1985, as amended,

is transmitted by the President to the Congress.

OREGON AND CALIFORNIA GRANT LANDS

For an additional amount for Oregon and California grant

lands, $2,500,000, to remain available until expended, to restore

public lands damaged by fire: Provided, That Congress hereby designates this amount as an emergency requirement pursuant to

section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this

amount shall be available only to the extent that an official budget

request for a specific dollar amount, that includes designation of

the entire amount as an emergency requirement as defined in

the Balanced Budget and Emergency Deficit Control Act of 1985,

as amended, is transmitted by the President to the Congress.
110 STAT. 3009–229 PUBLIC LAW 104–208—SEPT. 30, 1996

UNITED STATES FISH AND WILDLIFE SERVICE

RESOURCE MANAGEMENT

For an additional amount for resource management, $2,100,000,

to remain available until expended, of which $600,000 is to restore

public lands damaged by fire and $1,500,000 is address anti-terrorism requirements: Provided, That Congress hereby designates this

amount as an emergency requirement pursuant to section

251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this amount

shall be available only to the extent that an official budget request

for a specific dollar amount, that includes designation of the entire

amount as an emergency requirement as defined in the Balanced

Budget and Emergency Deficit Control Act of 1985, as amended,

is transmitted by the President to the Congress.

CONSTRUCTION

For an additional amount for construction, $15,891,000, to

remain available until expended, to repair damage caused by hurricanes, floods and other acts of nature: Provided, That Congress

hereby designates this amount as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency

Deficit Control Act of 1985, as amended: Provided further, That

this amount shall be available only to the extent that an official

budget request for a specific dollar amount, that includes designation of the entire amount as an emergency requirement as defined

in the Balanced Budget and Emergency Deficit Control Act of

1985, as amended, is transmitted by the President to the Congress.

NATIONAL PARK SERVICE

OPERATION OF THE NATIONAL PARK SYSTEM

For an additional amount for operation of the National park

system, $2,300,000, to remain available until expended, to address

anti-terrorism requirements: Provided, That Congress hereby designates this amount as an emergency requirement pursuant to

section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this

amount shall be available only to the extent that an official budget

request for a specific dollar amount, that includes designation of

the entire amount as an emergency requirement as defined in

the Balanced Budget and Emergency Deficit Control Act of 1985,

as amended, is transmitted by the President to the Congress.

CONSTRUCTION

For an additional amount for construction, $9,300,000, to

remain available until expended, of which $3,000,000 is to repair

damage caused by hurricanes and $6,300,000 is to address antiterrorism requirements: Provided, That Congress hereby designates

this amount as an emergency requirement pursuant to section

251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this amount

shall be available only to the extent that an official budget request

for a specific dollar amount, that includes designation of the entire

amount as an emergency requirement as defined in the Balanced
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–230

Budget and Emergency Deficit Control Act of 1985, as amended,

is transmitted by the President to the Congress.

UNITED STATES GEOLOGICAL SURVEY

SURVEYS, INVESTIGATIONS, AND RESEARCH

For an additional amount for surveys, investigations, and

research, $1,138,000, to remain available until expended, to address

damage caused by hurricanes and floods: Provided, That Congress

hereby designates this amount as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency

Deficit Control Act of 1985, as amended: Provided further, That

this amount shall be available only to the extent that an official

budget request for a specific dollar amount, that includes designation of the entire amount as an emergency requirement as defined

in the Balanced Budget and Emergency Deficit Control Act of

1985, as amended, is transmitted by the President to the Congress.

BUREAU OF INDIAN AFFAIRS

OPERATION OF INDIAN PROGRAMS

For an additional amount for operation of Indian programs,

$6,600,000, to remain available until expended, to repair damage

caused by floods and to restore Indian lands damaged by fire:

Provided, That Congress hereby designates this amount as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this amount shall be available only

to the extent that an official budget request for a specific dollar

amount, that includes designation of the entire amount as an emergency requirement as defined in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted

by the President to the Congress.

CONSTRUCTION

For an additional amount for construction, $6,000,000, to

remain available until expended, to repair damage caused by floods:

Provided, That Congress hereby designates this amount as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this amount shall be available only

to the extent that an official budget request for a specific dollar

amount, that includes designation of the entire amount as an emergency requirement as defined in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted

by the President to the Congress.

DEPARTMENT OF AGRICULTURE

FOREST SERVICE

NATIONAL FOREST SYSTEM

For an additional amount for the National Forest System,

$3,395,000, to remain available until expended, to repair damage

caused by hurricanes: Provided, That Congress hereby designates
110 STAT. 3009–231 PUBLIC LAW 104–208—SEPT. 30, 1996

this amount as an emergency requirement pursuant to section

251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this amount

shall be available only to the extent that an official budget request

for a specific dollar amount, that includes designation of the entire

amount as an emergency requirement as defined in the Balanced

Budget and Emergency Deficit Control Act of 1985, as amended,

is transmitted by the President to the Congress.

WILDLAND FIRE MANAGEMENT

For an additional amount for wildland fire management,

$550,000,000, to remain available until expended, for

presuppression due to emergencies, for emergency fire suppression

on or adjacent to National Forest System lands or other lands

under fire protection agreement and for emergency rehabilitation

of burned over National Forest System lands: Provided, That such

funds are available for repayment of advances from other appropriations accounts previously transferred for such purposes: Provided

further, That Congress hereby designates this amount as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this amount shall be available only

to the extent that an official budget request for a specific dollar

amount, that includes designation of the entire amount as an emergency requirement as defined in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted

by the President to the Congress.

RECONSTRUCTION AND CONSTRUCTION

For an additional amount for reconstruction and construction,

$5,210,000, to remain available until expended, to repair damage

caused by hurricanes: Provided, That Congress hereby designates

this amount as an emergency requirement pursuant to section

251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this amount

shall be available only to the extent that an official budget request

for a specific dollar amount, that includes designation of the entire

amount as an emergency requirement as defined in the Balanced

Budget and Emergency Deficit Control Act of 1985, as amended,

is transmitted by the President to the Congress.

OTHER RELATED AGENCIES

SMITHSONIAN INSTITUTION

SALARIES AND EXPENSES

For an additional amount for salaries and expenses, $935,000,

to remain available until expended, to address anti-terrorism

requirements: Provided, That Congress hereby designates this

amount as an emergency requirement pursuant to section

251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this amount

shall be available only to the extent that an official budget request

for a specific dollar amount, that includes designation of the entire

amount as an emergency requirement as defined in the Balanced
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–232

Budget and Emergency Deficit Control Act of 1985, as amended,

is transmitted by the President to the Congress.

JOHN F. KENNEDY CENTER FOR THE PERFORMING ARTS

OPERATIONS AND MAINTENANCE

For an additional amount for operations and maintenance,

$1,600,000, to remain available until expended, to address antiterrorism requirements: Provided, That Congress hereby designates

this amount as an emergency requirement pursuant to section

251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this amount

shall be available only to the extent that an official budget request

for a specific dollar amount, that includes designation of the entire

amount as an emergency requirement as defined in the Balanced

Budget and Emergency Deficit Control Act of 1985, as amended,

is transmitted by the President to the Congress.

CONSTRUCTION

For an additional amount for construction, $3,400,000, to

remain available until expended, to address anti-terrorism requirements: Provided, That Congress hereby designates this amount

as an emergency requirement pursuant to section 251(b)(2)(D)(i)

of the Balanced Budget and Emergency Deficit Control Act of 1985,

as amended: Provided further, That this amount shall be available

only to the extent that an official budget request for a specific

dollar amount, that includes designation of the entire amount as

an emergency requirement as defined in the Balanced Budget and

Emergency Deficit Control Act of 1985, as amended, is transmitted

by the President to the Congress.

NATIONAL GALLERY OF ART

SALARIES AND EXPENSES

For an additional amount for salaries and expenses, $382,000,

to remain available until expended, to address anti-terrorism

requirements: Provided, That Congress hereby designates this

amount as an emergency requirement pursuant to section

251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this amount

shall be available only to the extent that an official budget request

for a specific dollar amount, that includes designation of the entire

amount as an emergency requirement as defined in the Balanced

Budget and Emergency Deficit Control Act of 1985, as amended,

is transmitted by the President to the Congress.

UNITED STATES HOLOCAUST MEMORIAL COUNCIL

HOLOCAUST MEMORIAL COUNCIL

For an additional amount for the Holocaust Memorial Council,

$1,000,000, to remain available until expended, to address antiterrorism requirements: Provided, That Congress hereby designates

this amount as an emergency requirement pursuant to section

251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended: Provided further, That this amount
110 STAT. 3009–233 PUBLIC LAW 104–208—SEPT. 30, 1996

shall be available only to the extent that an official budget request

for a specific dollar amount, that includes designation of the entire

amount as an emergency requirement as defined in the Balanced

Budget and Emergency Deficit Control Act of 1985, as amended,

is transmitted by the President to the Congress.

This Act may be cited as the ‘‘Department of the Interior

and Related Agencies Appropriations Act, 1997’’.

(e) For programs, projects or activities in the Departments

of Labor, Health and Human Services, and Education, and Related

Agencies Appropriations Act, 1997, provided as follows, to be effective as if it had been enacted into law as the regular appropriations

Act:

AN ACT

Making appropriations for the Departments of Labor, Health and Human Services,

and Education, and related agencies for the fiscal year ending September 30,

1997, and for other purposes.

TITLE I—DEPARTMENT OF LABOR

EMPLOYMENT AND TRAINING ADMINISTRATION

TRAINING AND EMPLOYMENT SERVICES

For expenses necessary to carry into effect the Job Training

Partnership Act, as amended, including the purchase and hire

of passenger motor vehicles, the construction, alteration, and repair

of buildings and other facilities, and the purchase of real property

for training centers as authorized by the Job Training Partnership

Act; the Women in Apprenticeship and Nontraditional Occupations

Act; the National Skill Standards Act of 1994; and the Schoolto-Work Opportunities Act; $4,719,703,000 plus reimbursements,

of which $3,559,408,000 is available for obligation for the period

July 1, 1997 through June 30, 1998; of which $88,685,000 is available for the period July 1, 1997 through June 30, 2000 for necessary

expenses of construction, rehabilitation, and acquisition of Job Corps

centers; and of which $200,000,000 shall be available from July

1, 1997 through September 30, 1998, for carrying out activities

of the School-to-Work Opportunities Act: Provided, That

$52,502,000 shall be for carrying out section 401 of the Job Training

Partnership Act, $69,285,000 shall be for carrying out section 402

of such Act, $7,300,000 shall be for carrying out section 441 of

such Act, $8,000,000 shall be for all activities conducted by and

through the National Occupational Information Coordinating

Committee under such Act, $895,000,000 shall be for carrying out

title II, part A of such Act, and $126,672,000 shall be for carrying

out title II, part C of such Act: Provided further, That no funds

from any other appropriation shall be used to provide meal services

at or for Job Corps centers: Provided further, That funds provided

to carry out title III of the Job Training Partnership Act shall

not be subject to the limitation contained in subsection (b) of section

315 of such Act; that the waiver allowing a reduction in the cost

limitation relating to retraining services described in subsection

(a)(2) of such section 315 may be granted with respect to funds

from this Act if a substate grantee demonstrates to the Governor

that such waiver is appropriate due to the availability of lowcost retraining services, is necessary to facilitate the provision of

Department of

Labor

Appropriations

Act, 1997.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–234

needs-related payments to accompany long-term training, or is necessary to facilitate the provision of appropriate basic readjustment

services; and that funds provided to carry out the Secretary’s discretionary grants under part B of such title III may be used to

provide needs-related payments to participants who, in lieu of meeting the requirements relating to enrollment in training under section 314(e) of such Act, are enrolled in training by the end of

the sixth week after grant funds have been awarded: Provided

further, That service delivery areas may transfer funding provided

herein under authority of titles II–B and II–C of the Job Training

Partnership Act between the programs authorized by those titles

of that Act, if such transfer is approved by the Governor: Provided

further, That service delivery areas and substate areas may transfer

up to 20 percent of the funding provided herein under authority

of title II–A and title III of the Job Training Partnership Act

between the programs authorized by those titles of the Act, if

such transfer is approved by the Governor: Provided further, That,

notwithstanding any other provision of law, any proceeds from

the sale of Job Corps center facilities shall be retained by the

Secretary of Labor to carry out the Job Corps program: Provided

further, That notwithstanding any other provision of law, the Secretary of Labor may waive any of the statutory or regulatory requirements of titles I–III of the Job Training Partnership Act (except for requirements relating to wage and labor standards, worker

rights, participation and protection, grievance procedures and judicial review, nondiscrimination, allocation of funds to local areas,

eligibility, review and approval of plans, the establishment and

functions of service delivery areas and private industry councils,

and the basic purposes of the Act), and any of the statutory or

regulatory requirements of sections 8–10 of the Wagner-Peyser

Act (except for requirements relating to the provision of services

to unemployment insurance claimants and veterans, and to universal access to basic labor exchange services without cost to job

seekers), only for funds available for expenditure in program year

1997, pursuant to a request submitted by a State which identifies

the statutory or regulatory requirements that are requested to

be waived and the goals which the State or local service delivery

areas intend to achieve, describes the actions that the State or

local service delivery areas have undertaken to remove State or

local statutory or regulatory barriers, describes the goals of the

waiver and the expected programmatic outcomes if the request

is granted, describes the individuals impacted by the waiver, and

describes the process used to monitor the progress in implementing

a waiver, and for which notice and an opportunity to comment

on such request has been provided to the organizations identified

in section 105(a)(1) of the Job Training Partnership Act, if and

only to the extent that the Secretary determines that such requirements impede the ability of the State to implement a plan to

improve the workforce development system and the State has executed a Memorandum of Understanding with the Secretary requiring such State to meet agreed upon outcomes and implement other

appropriate measures to ensure accountability: Provided further,

That the Secretary of Labor shall establish a workforce flexibility

(work-flex) partnership demonstration program under which the

Secretary shall authorize not more than six States, of which at

least three States shall each have populations not in excess of

3,500,000, with a preference given to those States that have been

29 USC 1732

note.
110 STAT. 3009–235 PUBLIC LAW 104–208—SEPT. 30, 1996

designated Ed-Flex Partnership States under section 311(e) of Public Law 103–227, to waive any statutory or regulatory requirement

applicable to service delivery areas or substate areas within the

State under titles I–III of the Job Training Partnership Act (except

for requirements relating to wage and labor standards, grievance

procedures and judicial review, nondiscrimination, allotment of

funds, and eligibility), and any of the statutory or regulatory requirements of sections 8–10 of the Wagner-Peyser Act (except for

requirements relating to the provision of services to unemployment

insurance claimants and veterans, and to universal access to basic

labor exchange services without cost to job seekers), for a duration

not to exceed the waiver period authorized under section 311(e)

of Public Law 103–227, pursuant to a plan submitted by such

States and approved by the Secretary for the provision of workforce

employment and training activities in the States, which includes

a description of the process by which service delivery areas and

substate areas may apply for and have waivers approved by the

State, the requirements of the Wagner-Peyser Act to be waived,

the outcomes to be achieved and other measures to be taken to

ensure appropriate accountability for federal funds.

COMMUNITY SERVICE EMPLOYMENT FOR OLDER AMERICANS

(TRANSFER OF FUNDS)

To carry out the activities for national grants or contracts

with public agencies and public or private nonprofit organizations

under paragraph (1)(A) of section 506(a) of title V of the Older

Americans Act of 1965, as amended, or to carry out older worker

activities as subsequently authorized, $361,140,000, including

$21,840,000 which shall be available for the period ending June

30, 1997.

To carry out the activities for grants to States under paragraph

(3) of section 506(a) of title V of the Older Americans Act of

1965, as amended, or to carry out older worker activities as subsequently authorized, $101,860,000, including $6,160,000 which shall

be available for the period ending June 30, 1997.

The funds appropriated under this heading shall be transferred

to the Department of Health and Human Services, ‘‘Aging Services

Programs’’ following the enactment of legislation authorizing the

administration of the program by that Department.

FEDERAL UNEMPLOYMENT BENEFITS AND ALLOWANCES

For payments during the current fiscal year of trade adjustment

benefit payments and allowances under part I, and for training,

for allowances for job search and relocation, and for related State

administrative expenses under part II, subchapters B and D, chapter 2, title II of the Trade Act of 1974, as amended, $324,500,000,

together with such amounts as may be necessary to be charged

to the subsequent appropriation for payments for any period subsequent to September 15 of the current year.

STATE UNEMPLOYMENT INSURANCE AND EMPLOYMENT SERVICE

OPERATIONS

For authorized administrative expenses, $173,452,000, together

with not to exceed $3,146,826,000 (including not to exceed
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–236

$1,653,000 which may be used for amortization payments to States

which had independent retirement plans in their State employment

service agencies prior to 1980, and including not to exceed

$2,000,000 which may be obligated in contracts with non-State

entities for activities such as occupational and test research activities which benefit the Federal-State Employment Service System),

which may be expended from the Employment Security Administration account in the Unemployment Trust Fund including the cost

of administering section 1201 of the Small Business Job Protection

Act of 1996, section 7(d) of the Wagner-Peyser Act, as amended,

the Trade Act of 1974, as amended, the Immigration Act of 1990,

and the Immigration and Nationality Act, as amended, and of

which the sums available in the allocation for activities authorized

by title III of the Social Security Act, as amended (42 U.S.C.

502–504), and the sums available in the allocation for necessary

administrative expenses for carrying out 5 U.S.C. 8501–8523, shall

be available for obligation by the States through December 31,

1997, except that funds used for automation acquisitions shall

be available for obligation by States through September 30, 1999;

and of which $23,452,000, together with not to exceed $738,283,000

of the amount which may be expended from said trust fund, shall

be available for obligation for the period July 1, 1997 through

June 30, 1998, to fund activities under the Act of June 6, 1933,

as amended, including the cost of penalty mail authorized under

39 U.S.C. 3202(a)(1)(E) made available to States in lieu of allotments for such purpose, and of which $216,333,000 shall be available only to the extent necessary for additional State allocations

to administer unemployment compensation laws to finance

increases in the number of unemployment insurance claims filed

and claims paid or changes in a State law: Provided, That to

the extent that the Average Weekly Insured Unemployment (AWIU)

for fiscal year 1997 is projected by the Department of Labor to

exceed 2,828,000 an additional $28,600,000 shall be available for

obligation for every 100,000 increase in the AWIU level (including

a pro rata amount for any increment less than 100,000) from

the Employment Security Administration Account of the Unemployment Trust Fund: Provided further, That funds appropriated in

this Act which are used to establish a national one-stop career

center network may be obligated in contracts, grants or agreements

with non-State entities: Provided further, That funds appropriated

under this Act for activities authorized under the Wagner-Peyser

Act, as amended, and title III of the Social Security Act, may

be used by the States to fund integrated Employment Service and

Unemployment Insurance automation efforts, notwithstanding cost

allocation principles prescribed under Office of Management and

Budget Circular A–87.

ADVANCES TO THE UNEMPLOYMENT TRUST FUND AND OTHER FUNDS

For repayable advances to the Unemployment Trust Fund as

authorized by sections 905(d) and 1203 of the Social Security Act,

as amended, and to the Black Lung Disability Trust Fund as

authorized by section 9501(c)(1) of the Internal Revenue Code of

1954, as amended; and for nonrepayable advances to the Unemployment Trust Fund as authorized by section 8509 of title 5, United

States Code, section 104(d) of Public Law 102–164, and section

5 of Public Law 103–6, and to the ‘‘Federal unemployment benefits
110 STAT. 3009–237 PUBLIC LAW 104–208—SEPT. 30, 1996

and allowances’’ account, to remain available until September 30,

1998, $373,000,000.

In addition, for making repayable advances to the Black Lung

Disability Trust Fund in the current fiscal year after September

15, 1997, for costs incurred by the Black Lung Disability Trust

Fund in the current fiscal year, such sums as may be necessary.

PROGRAM ADMINISTRATION

For expenses of administering employment and training programs and for carrying out section 908 of the Social Security Act,

$81,393,000, together with not to exceed $39,977,000, which may

be expended from the Employment Security Administration account

in the Unemployment Trust Fund.

PENSION AND WELFARE BENEFITS ADMINISTRATION

SALARIES AND EXPENSES

For necessary expenses for Pension and Welfare Benefits

Administration, $77,083,000, of which $6,000,000 shall remain

available through September 30, 1998 for expenses of revising the

processing of employee benefit plan returns.

PENSION BENEFIT GUARANTY CORPORATION

PENSION BENEFIT GUARANTY CORPORATION FUND

The Pension Benefit Guaranty Corporation is authorized to make

such expenditures, including financial assistance authorized by section 104 of Public Law 96–364, within limits of funds and borrowing

authority available to such Corporation, and in accord with 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 amended (31 U.S.C. 9104), as may

be necessary in carrying out the program through September 30,

1997, for such Corporation: Provided, That not to exceed

$10,345,000 shall be available for administrative expenses of the

Corporation: Provided further, That expenses of such Corporation

in connection with the termination of pension plans, for the acquisition, protection or management, and investment of trust assets,

and for benefits administration services shall be considered as

non-administrative expenses for the purposes hereof, and excluded

from the above limitation.

EMPLOYMENT STANDARDS ADMINISTRATION

SALARIES AND EXPENSES

For necessary expenses for the Employment Standards Administration, including reimbursement to State, Federal, and local agencies and their employees for inspection services rendered,

$290,422,000, together with $983,000 which may be expended from

the Special Fund in accordance with sections 39(c) and 44(j) of

the Longshore and Harbor Workers’ Compensation Act: Provided,

That the Secretary of Labor is authorized to accept, retain, and

spend, until expended, in the name of the Department of Labor,

all sums of money ordered to be paid to the Secretary of Labor,

in accordance with the terms of the Consent Judgment in Civil
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–238

Action No. 91–0027 of the United States District Court for the

District of the Northern Mariana Islands (May 21, 1992): Provided

further, That the Secretary of Labor is authorized to establish

and, in accordance with 31 U.S.C. 3302, collect and deposit in

the Treasury fees for processing applications and issuing certificates

under sections 11(d) and 14 of the Fair Labor Standards Act of

1938, as amended (29 U.S.C. 211(d) and 214) and for processing

applications and issuing registrations under Title I of the Migrant

and Seasonal Agricultural Worker Protection Act, 29 U.S.C. 1801

et seq.

SPECIAL BENEFITS

(INCLUDING TRANSFER OF FUNDS)

For the payment of compensation, benefits, and expenses (except

administrative expenses) accruing during the current or any prior

fiscal year authorized by title 5, chapter 81 of the United States

Code; continuation of benefits as provided for under the head

‘‘Civilian War Benefits’’ in the Federal Security Agency Appropriation Act, 1947; the Employees’ Compensation Commission Appropriation Act, 1944; and sections 4(c) and 5(f) of the War Claims

Act of 1948 (50 U.S.C. App. 2012); and 50 per centum of the

additional compensation and benefits required by section 10(h) of

the Longshore and Harbor Workers’ Compensation Act, as amended,

$213,000,000 together with such amounts as may be necessary

to be charged to the subsequent year appropriation for the payment

of compensation and other benefits for any period subsequent to

August 15 of the current year: Provided, That such sums as are

necessary may be used under section 8104 of title 5, United States

Code, by the Secretary to reimburse an employer, who is not the

employer at the time of injury, for portions of the salary of a

reemployed, disabled beneficiary: Provided further, That balances

of reimbursements unobligated on September 30, 1996, shall remain

available until expended for the payment of compensation, benefits,

and expenses: Provided further, That in addition there shall be

transferred to this appropriation from the Postal Service and from

any other corporation or instrumentality required under section

8147(c) of title 5, United States Code, to pay an amount for its

fair share of the cost of administration, such sums as the Secretary

of Labor determines to be the cost of administration for employees

of such fair share entities through September 30, 1997: Provided

further, That of those funds transferred to this account from the

fair share entities to pay the cost of administration, $11,390,000

shall be made available to the Secretary of Labor for expenditures

relating to capital improvements in support of Federal Employees’

Compensation Act administration, and the balance of such funds

shall be paid into the Treasury as miscellaneous receipts: Provided

further, That the Secretary may require that any person filing

a notice of injury or a claim for benefits under Subchapter 5,

U.S.C., chapter 81, or under subchapter 33, U.S.C. 901, et seq.

(the Longshore and Harbor Workers’ Compensation Act, as amended), provide as part of such notice and claim, such identifying

information (including Social Security account number) as such

regulations may prescribe.
110 STAT. 3009–239 PUBLIC LAW 104–208—SEPT. 30, 1996

BLACK LUNG DISABILITY TRUST FUND

(INCLUDING TRANSFER OF FUNDS)

For payments from the Black Lung Disability Trust Fund,

$1,007,644,000, of which $961,665,000 shall be available until

September 30, 1998, for payment of all benefits as authorized

by section 9501(d) (1), (2), (4), and (7) of the Internal Revenue

Code of 1954, as amended, and interest on advances as authorized

by section 9501(c)(2) of that Act, and of which $26,071,000 shall

be available for transfer to Employment Standards Administration,

Salaries and Expenses, $19,621,000 for transfer to Departmental

Management, Salaries and Expenses, and $287,000 for transfer

to Departmental Management, Office of Inspector General, for

expenses of operation and administration of the Black Lung Benefits

program as authorized by section 9501(d)(5)(A) of that Act: Provided, That, in addition, such amounts as may be necessary may

be charged to the subsequent year appropriation for the payment

of compensation, interest, or other benefits for any period subsequent to August 15 of the current year: Provided further, That

in addition such amounts shall be paid from this fund into miscellaneous receipts as the Secretary of the Treasury determines

to be the administrative expenses of the Department of the Treasury

for administering the fund during the current fiscal year, as authorized by section 9501(d)(5)(B) of that Act.

OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION

SALARIES AND EXPENSES

For necessary expenses for the Occupational Safety and Health

Administration, $325,734,000, including not to exceed $77,354,000

which shall be the maximum amount available for grants to States

under section 23(g) of the Occupational Safety and Health Act,

which grants shall be no less than fifty percent of the costs of

State occupational safety and health programs required to be

incurred under plans approved by the Secretary under section 18

of the Occupational Safety and Health Act of 1970; and, in addition,

notwithstanding 31 U.S.C. 3302, the Occupational Safety and

Health Administration may retain up to $750,000 per fiscal year

of training institute course tuition fees, otherwise authorized by

law to be collected, and may utilize such sums for occupational

safety and health training and education grants: Provided, That,

notwithstanding 31 U.S.C. 3302, the Secretary of Labor is authorized, during the fiscal year ending September 30, 1997, to collect

and retain fees for services provided to Nationally Recognized Testing Laboratories, and may utilize such sums, in accordance with

the provisions of 29 U.S.C. 9a, to administer national and international laboratory recognition programs that ensure the safety

of equipment and products used by workers in the workplace:

Provided further, That none of the funds appropriated under this

paragraph shall be obligated or expended to prescribe, issue, administer, or enforce any standard, rule, regulation, or order under

the Occupational Safety and Health Act of 1970 which is applicable

to any person who is engaged in a farming operation which does

not maintain a temporary labor camp and employs ten or fewer

employees: Provided further, That no funds appropriated under

29 USC 670 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–240

this paragraph shall be obligated or expended to administer or

enforce any standard, rule, regulation, or order under the Occupational Safety and Health Act of 1970 with respect to any employer

of ten or fewer employees who is included within a category having

an occupational injury lost workday case rate, at the most precise

Standard Industrial Classification Code for which such data are

published, less than the national average rate as such rates are

most recently published by the Secretary, acting through the Bureau

of Labor Statistics, in accordance with section 24 of that Act (29

U.S.C. 673), except—

(1) to provide, as authorized by such Act, consultation,

technical assistance, educational and training services, and to

conduct surveys and studies;

(2) to conduct an inspection or investigation in response

to an employee complaint, to issue a citation for violations

found during such inspection, and to assess a penalty for violations which are not corrected within a reasonable abatement

period and for any willful violations found;

(3) to take any action authorized by such Act with respect

to imminent dangers;

(4) to take any action authorized by such Act with respect

to health hazards;

(5) to take any action authorized by such Act with respect

to a report of an employment accident which is fatal to one

or more employees or which results in hospitalization of two

or more employees, and to take any action pursuant to such

investigation authorized by such Act; and

(6) to take any action authorized by such Act with respect

to complaints of discrimination against employees for exercising

rights under such Act: Provided further, That the foregoing

proviso shall not apply to any person who is engaged in a

farming operation which does not maintain a temporary labor

camp and employs ten or fewer employees.

MINE SAFETY AND HEALTH ADMINISTRATION

SALARIES AND EXPENSES

For necessary expenses for the Mine Safety and Health Administration, $197,810,000, including purchase and bestowal of

certificates and trophies in connection with mine rescue and firstaid work, and the hire of passenger motor vehicles; the Secretary

is authorized to accept lands, buildings, equipment, and other contributions from public and private sources and to prosecute projects

in cooperation with other agencies, Federal, State, or private; the

Mine Safety and Health Administration is authorized to promote

health and safety education and training in the mining community

through cooperative programs with States, industry, and safety

associations; and any funds available to the Department may be

used, with the approval of the Secretary, to provide for the costs

of mine rescue and survival operations in the event of a major

disaster: Provided, That none of the funds appropriated under this

paragraph shall be obligated or expended to carry out section 115

of the Federal Mine Safety and Health Act of 1977 or to carry

out that portion of section 104(g)(1) of such Act relating to the

enforcement of any training requirements, with respect to shell

dredging, or with respect to any sand, gravel, surface stone, surface

clay, colloidal phosphate, or surface limestone mine.

30 USC 962.
110 STAT. 3009–241 PUBLIC LAW 104–208—SEPT. 30, 1996

BUREAU OF LABOR STATISTICS

SALARIES AND EXPENSES

For necessary expenses for the Bureau of Labor Statistics,

including advances or reimbursements to State, Federal, and local

agencies and their employees for services rendered, $309,647,000,

of which $16,145,000 shall be for expenses of revising the Consumer

Price Index and shall remain available until September 30, 1998,

together with not to exceed $52,053,000, which may be expended

from the Employment Security Administration account in the Unemployment Trust Fund.

DEPARTMENTAL MANAGEMENT

SALARIES AND EXPENSES

For necessary expenses for Departmental Management, including the hire of three sedans, and including up to $4,358,000 for

the President’s Committee on Employment of People With Disabilities, $144,211,000; together with not to exceed $297,000, which

may be expended from the Employment Security Administration

account in the Unemployment Trust Fund: Provided, That no funds

made available by this Act may be used by the Solicitor of Labor

to participate in a review in any United States court of appeals

of any decision made by the Benefits Review Board under section

21 of the Longshore and Harbor Workers’ Compensation Act (33

U.S.C. 921) where such participation is precluded by the decision

of the United States Supreme Court in Director, Office of Workers’

Compensation Programs v. Newport News Shipbuilding, 115 S.

Ct. 1278 (1995): Provided further, That no funds made available

by this Act may be used by the Secretary of Labor to review

a decision under the Longshore and Harbor Workers’ Compensation

Act (33 U.S.C. 901 et seq.) that has been appealed and that has

been pending before the Benefits Review Board for more than

12 months: Provided further, That any such decision pending a

review by the Benefits Review Board for more than one year shall

be considered affirmed by the Benefits Review Board on that date,

and shall be considered the final order of the Board for purposes

of obtaining a review in the United States courts of appeals: Provided further, That these provisions shall not be applicable to the

review of any decision issued under the Black Lung Benefits Act

(30 U.S.C. 901 et seq.).

ASSISTANT SECRETARY FOR VETERANS EMPLOYMENT AND TRAINING

Not to exceed $181,949,000 may be derived from the Employment Security Administration account in the Unemployment Trust

Fund to carry out the provisions of 38 U.S.C. 4100–4110A and

4321–4327, and Public Law 103–353, and which shall be available

for obligation by the States through December 31, 1997.

OFFICE OF INSPECTOR GENERAL

For salaries and expenses of the Office of Inspector General

in carrying out the provisions of the Inspector General Act of

1978, as amended, $42,938,000, together with not to exceed

$3,543,000, which may be expended from the Employment Security

Administration account in the Unemployment Trust Fund.

33 USC 921 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–242

GENERAL PROVISIONS

SEC. 101. None of the funds appropriated in this title for

the Job Corps shall be used to pay the compensation of an individual, either as direct costs or any proration as an indirect cost,

at a rate in excess of $125,000.

(TRANSFER OF FUNDS)

SEC. 102. Not to exceed 1 percent of any discretionary funds

(pursuant to the Balanced Budget and Emergency Deficit Control

Act, as amended) which are appropriated for the current fiscal

year for the Department of Labor in this Act may be transferred

between appropriations, but no such appropriation shall be

increased by more than 3 percent by any such transfer: Provided,

That the Appropriations Committees of both Houses of Congress

are notified at least fifteen days in advance of any transfer.

SEC. 103. Funds shall be available for carrying out title IV–

B of the Job Training Partnership Act, notwithstanding section

427(c) of that Act, if a Job Corps center fails to meet national

performance standards established by the Secretary.

SEC. 104. Effective January 1, 1997, no funds appropriated

or otherwise made available to the Department of Labor in this

title shall be disbursed without the approval of the Department’s

Chief Financial Officer or his delegatee.

SEC. 105. Notwithstanding any other provision of law, the

Secretary of Labor may waive any of the requirements contained

in sections 4, 104, 105, 107, 108, 121, 164, 204, 253, 254, 264,

301, 311, 313, 314, and 315 of the Job Training Partnership Act

in order to assist States in improving State workforce development

systems, pursuant to a request submitted by a State that has

prior to the date of enactment of this Act executed a Memorandum

of Understanding with the United States requiring such State to

meet agreed upon outcomes.

This title may be cited as the ‘‘Department of Labor Appropriations Act, 1997’’.

TITLE II—DEPARTMENT OF HEALTH AND HUMAN

SERVICES

HEALTH RESOURCES AND SERVICES ADMINISTRATION

HEALTH RESOURCES AND SERVICES

For carrying out titles II, III, VII, VIII, X, XII, XVI, XIX,

and XXVI of the Public Health Service Act, section 427(a) of the

Federal Coal Mine Health and Safety Act, title V of the Social

Security Act, the Health Care Quality Improvement Act of 1986,

as amended, and the Native Hawaiian Health Care Act of 1988,

as amended, $3,405,019,000, of which $297,000 shall remain available until expended for interest subsidies on loan guarantees made

prior to fiscal year 1981 under part B of title VII of the Public

Health Service Act: Provided, That the Division of Federal Occupational Health may utilize personal services contracting to employ

professional management/administrative and occupational health

professionals: Provided further, That of the funds made available

under this heading, $828,000 shall be available until expended

for facilities renovations at the Gillis W. Long Hansen’s Disease

Department of

Health and

Human Services

Appropriations

Act, 1997.
110 STAT. 3009–243 PUBLIC LAW 104–208—SEPT. 30, 1996

Center: Provided further, That in addition to fees authorized by

section 427(b) of the Health Care Quality Improvement Act of

1986, fees shall be collected for the full disclosure of information

under the Act sufficient to recover the full costs of operating the

National Practitioner Data Bank, and shall remain available until

expended to carry out that Act: Provided further, That no more

than $5,000,000 is available for carrying out the provisions of

Public Law 104–73: Provided further, That of the funds made available under this heading, $198,452,000 shall be for the program

under title X of the Public Health Service Act to provide for voluntary family planning projects: Provided further, That amounts

provided to said projects under such title shall not be expended

for abortions, that all pregnancy counseling shall be nondirective,

and that such amounts shall not be expended for any activity

(including the publication or distribution of literature) that in any

way tends to promote public support or opposition to any legislative

proposal or candidate for public office: Provided further, That

$167,000,000 shall be for State AIDS Drug Assistance Programs

authorized by section 2616 of the Public Health Service Act and

shall be distributed to States as authorized by section 2618(b)(2)

of such Act: Provided further, That notwithstanding any other provision of law, funds made available under this heading may be

used to continue operating the Council on Graduate Medical Education established by section 301 of Public Law 102–408: Provided

further, That, of the funds made available under this heading,

not more than $8,000,000 shall be made available and shall remain

available until expended for loan guarantees for loans made by

non-Federal lenders for the construction, renovation, and modernization of medical facilities that are owned and operated by

health centers funded under part A of title XVI of the Public

Health Service Act as amended, and, subject to authorization, for

loans made to health centers for the costs of developing and operating managed care networks or plans, and that such funds be available to subsidize guarantees of total loan principal in an amount

not to exceed $80,000,000: Provided further, That notwithstanding

section 502(a)(1) of the Social Security Act, not to exceed

$103,609,000 is available for carrying out special projects of regional

and national significance pursuant to section 501(a)(2) of such Act.

MEDICAL FACILITIES GUARANTEE AND LOAN FUND

FEDERAL INTEREST SUBSIDIES FOR MEDICAL FACILITIES

For carrying out subsections (d) and (e) of section 1602 of the Public Health Service Act, $7,000,000, together with any

amounts received by the Secretary in connection with loans and

loan guarantees under title VI of the Public Health Service Act,

to be available without fiscal year limitation for the payment of

interest subsidies. During the fiscal year, no commitments for direct

loans or loan guarantees shall be made.

HEALTH EDUCATION ASSISTANCE LOANS PROGRAM

For the cost of guaranteed loans, such sums as may be necessary to carry out the purpose of the program, as authorized

by title VII of the Public Health Service Act, as amended: Provided,

That such costs, including the cost of modifying such loans, shall

be as defined in section 502 of the Congressional Budget Act of
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–244

1974: Provided further, That these funds are available to subsidize

gross obligations for the total loan principal any part of which

is to be guaranteed at not to exceed $140,000,000. In addition,

for administrative expenses to carry out the guaranteed loan program, $2,688,000.

VACCINE INJURY COMPENSATION PROGRAM TRUST FUND

For payments from the Vaccine Injury Compensation Program

Trust Fund, such sums as may be necessary for claims associated

with vaccine-related injury or death with respect to vaccines

administered after September 30, 1988, pursuant to subtitle 2 of

title XXI of the Public Health Service Act, to remain available

until expended: Provided, That for necessary administrative

expenses, not to exceed $3,000,000 shall be available from the

Trust Fund to the Secretary of Health and Human Services.

VACCINE INJURY COMPENSATION

For payment of claims resolved by the United States Court

of Federal Claims related to the administration of vaccines before

October 1, 1988, $110,000,000, to remain available until expended.

CENTERS FOR DISEASE CONTROL AND PREVENTION

DISEASE CONTROL, RESEARCH, AND TRAINING

To carry out titles II, III, VII, XI, XV, XVII, and XIX of the

Public Health Service Act, sections 101, 102, 103, 201, 202, 203,

301, and 501 of the Federal Mine Safety and Health Act of 1977,

and sections 20, 21 and 22 of the Occupational Safety and Health

Act of 1970, title IV of the Immigration and Nationality Act and

section 501 of the Refugee Education Assistance Act of 1980; including insurance of official motor vehicles in foreign countries; and

hire, maintenance, and operation of aircraft, $2,262,698,000, of

which $30,553,000 shall remain available until expended for equipment and construction and renovation of facilities, and of which

$32,000,000 shall remain available until September 30, 1998 for

mine safety and health activities, and in addition, such sums as

may be derived from authorized user fees, which shall be credited

to this account: Provided, That in addition to amounts provided

herein, up to $48,400,000 shall be available from amounts available

under section 241 of the Public Health Service Act, to carry out

the National Center for Health Statistics surveys: Provided further,

That none of the funds made available for injury prevention and

control at the Centers for Disease Control and Prevention may

be used to advocate or promote gun control: Provided further, That

the Director may redirect the total amount made available under

authority of Public Law 101–502, section 3, dated November 3,

1990, to activities the Director may so designate: Provided further,

That the Congress is to be notified promptly of any such transfer:

Provided further, That the functions described in clause (1) of

the first proviso under the subheading ‘‘mines and minerals’’ under

the heading ‘‘Bureau of Mines’’ in the text of title I of the Department of the Interior and Related Agencies Appropriations Act,

1996, as enacted by section 101 (c) of the Omnibus Consolidated

Rescissions and Appropriations Act of 1996 (Public Law 104–134),

are hereby transferred to, and vested in, the Secretary of Health

30 USC 1 note.
110 STAT. 3009–245 PUBLIC LAW 104–208—SEPT. 30, 1996

and Human Services, subject to section 1531 of title 31, United

States Code: Provided further, That of the amount provided,

$23,000,000 is designated by Congress as an emergency requirement

pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and

Emergency Deficit Control Act of 1985, as amended.

In addition, $41,000,000, to be derived from the Violent Crime

Reduction Trust Fund, for carrying out sections 40151 and 40261

of Public Law 103–322.

NATIONAL INSTITUTES OF HEALTH

NATIONAL CANCER INSTITUTE

For carrying out section 301 and title IV of the Public Health

Service Act with respect to cancer, $2,382,532,000.

NATIONAL HEART, LUNG, AND BLOOD INSTITUTE

For carrying out section 301 and title IV of the Public Health

Service Act with respect to cardiovascular, lung, and blood diseases,

and blood and blood products, $1,433,001,000.

NATIONAL INSTITUTE OF DENTAL RESEARCH

For carrying out section 301 and title IV of the Public Health

Service Act with respect to dental disease, $195,997,000.

NATIONAL INSTITUTE OF DIABETES AND DIGESTIVE AND KIDNEY

DISEASES

For carrying out section 301 and title IV of the Public Health

Service Act with respect to diabetes and digestive and kidney disease, $815,982,000.

NATIONAL INSTITUTE OF NEUROLOGICAL DISORDERS AND STROKE

For carrying out section 301 and title IV of the Public Health

Service Act with respect to neurological disorders and stroke,

$726,746,000.

NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES

For carrying out section 301 and title IV of the Public Health

Service Act with respect to allergy and infectious diseases,

$1,257,234,000.

NATIONAL INSTITUTE OF GENERAL MEDICAL SCIENCES

For carrying out section 301 and title IV of the Public Health

Service Act with respect to general medical sciences, $998,470,000.

NATIONAL INSTITUTE OF CHILD HEALTH AND HUMAN DEVELOPMENT

For carrying out section 301 and title IV of the Public Health

Service Act with respect to child health and human development,

$631,703,000.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–246

NATIONAL EYE INSTITUTE

For carrying out section 301 and title IV of the Public Health

Service Act with respect to eye diseases and visual disorders,

$332,735,000.

NATIONAL INSTITUTE OF ENVIRONMENTAL HEALTH SCIENCES

For carrying out sections 301 and 311 and title IV of the

Public Health Service Act with respect to environmental health

sciences, $308,819,000.

NATIONAL INSTITUTE ON AGING

For carrying out section 301 and title IV of the Public Health

Service Act with respect to aging, $486,047,000.

NATIONAL INSTITUTE OF ARTHRITIS AND MUSCULOSKELETAL AND SKIN

DISEASES

For carrying out section 301 and title IV of the Public Health

Service Act with respect to arthritis and musculoskeletal and skin

diseases, $257,111,000.

NATIONAL INSTITUTE ON DEAFNESS AND OTHER COMMUNICATION

DISORDERS

For carrying out section 301 and title IV of the Public Health

Service Act with respect to deafness and other communication disorders, $188,422,000.

NATIONAL INSTITUTE OF NURSING RESEARCH

For carrying out section 301 and title IV of the Public Health

Service Act with respect to nursing research, $59,743,000.

NATIONAL INSTITUTE ON ALCOHOL ABUSE AND ALCOHOLISM

For carrying out section 301 and title IV of the Public Health

Service Act with respect to alcohol abuse and alcoholism,

$212,004,000.

NATIONAL INSTITUTE ON DRUG ABUSE

For carrying out section 301 and title IV of the Public Health

Service Act with respect to drug abuse, $489,375,000.

NATIONAL INSTITUTE OF MENTAL HEALTH

For carrying out section 301 and title IV of the Public Health

Service Act with respect to mental health, $701,585,000.

NATIONAL CENTER FOR RESEARCH RESOURCES

For carrying out section 301 and title IV of the Public Health

Service Act with respect to research resources and general research

support grants, $415,145,000: Provided, That none of these funds

shall be used to pay recipients of the general research support

grants program any amount for indirect expenses in connection

with such grants: Provided further, That $20,000,000 shall be for

extramural facilities construction grants.
110 STAT. 3009–247 PUBLIC LAW 104–208—SEPT. 30, 1996

NATIONAL CENTER FOR HUMAN GENOME RESEARCH

For carrying out section 301 and title IV of the Public Health

Service Act with respect to human genome research, $189,657,000.

JOHN E. FOGARTY INTERNATIONAL CENTER

For carrying out the activities at the John E. Fogarty International Center, $26,586,000.

NATIONAL LIBRARY OF MEDICINE

For carrying out section 301 and title IV of the Public Health

Service Act with respect to health information communications,

$151,103,000, of which $4,000,000 shall be available until expended

for improvement of information systems: Provided, That in fiscal

year 1997, the Library may enter into personal services contracts

for the provision of services in facilities owned, operated, or constructed under the jurisdiction of the National Institutes of Health.

OFFICE OF THE DIRECTOR

(INCLUDING TRANSFER OF FUNDS)

For carrying out the responsibilities of the Office of the Director,

National Institutes of Health, $287,206,000, of which $35,589,000

shall be for the Office of AIDS Research: Provided, That funding

shall be available for the purchase of not to exceed five passenger

motor vehicles for replacement only: Provided further, That the

Director may direct up to 1 percent of the total amount made

available in this Act to all National Institutes of Health appropriations to activities the Director may so designate: Provided further,

That no such appropriation shall be increased or decreased by

more than 1 percent by any such transfers and that the Congress

is promptly notified of the transfer: Provided further, That NIH

is authorized to collect third party payments for the cost of clinical

services that are incurred in National Institutes of Health research

facilities and that such payments shall be credited to the National

Institutes of Health Management Fund: Provided further, That

all funds credited to the NIH Management Fund shall remain

available for one fiscal year after the fiscal year in which they

are deposited: Provided further, That up to $200,000 shall be available to carry out section 499 of the Public Health Service Act.

BUILDINGS AND FACILITIES

For the study of, construction of, and acquisition of equipment

for, facilities of or used by the National Institutes of Health, including the acquisition of real property, $200,000,000, to remain available until expended, of which $90,000,000 shall be for the clinical

research center: Provided, That, notwithstanding any other provision of law, a single contract or related contracts for the development and construction of the clinical research center may be

employed which collectively include the full scope of the project:

Provided further, That the solicitation and contract shall contain

the clause ‘‘availability of funds’’ found at 48 CFR 52.232–18.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–248

SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES ADMINISTRATION

SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES

For carrying out titles V and XIX of the Public Health Service

Act with respect to substance abuse and mental health services,

the Protection and Advocacy for Mentally Ill Individuals Act of

1986, section 30401 of Public Law 103–322 and section 301 of

the Public Health Service Act with respect to program management,

$2,134,743,000, of which $5,000,000 shall be for grants to rural

and Native American projects and $12,800,000 shall be for activities

authorized by section 30401 of Public Law 103–322.

RETIREMENT PAY AND MEDICAL BENEFITS FOR COMMISSIONED

OFFICERS

For retirement pay and medical benefits of Public Health Service Commissioned Officers as authorized by law, and for payments

under the Retired Serviceman’s Family Protection Plan and Survivor Benefit Plan and for medical care of dependents and retired

personnel under the Dependents’ Medical Care Act (10 U.S.C. ch.

55), and for payments pursuant to section 229(b) of the Social

Security Act (42 U.S.C. 429(b)), such amounts as may be required

during the current fiscal year.

AGENCY FOR HEALTH CARE POLICY AND RESEARCH

HEALTH CARE POLICY AND RESEARCH

For carrying out titles III and IX of the Public Health Service

Act, and part A of title XI of the Social Security Act, $96,175,000;

in addition, amounts received from Freedom of Information Act

fees, reimbursable and interagency agreements, and the sale of

data tapes shall be credited to this appropriation and shall remain

available until expended: Provided, That the amount made available

pursuant to section 926(b) of the Public Health Service Act shall

not exceed $47,412,000.

HEALTH CARE FINANCING ADMINISTRATION

GRANTS TO STATES FOR MEDICAID

For carrying out, except as otherwise provided, titles XI and

XIX of the Social Security Act, $75,056,618,000, to remain available

until expended.

For making, after May 31, 1997, payments to States under

title XIX of the Social Security Act for the last quarter of fiscal

year 1997 for unanticipated costs, incurred for the current fiscal

year, such sums as may be necessary.

For making payments to States under title XIX of the Social

Security Act for the first quarter of fiscal year 1998,

$27,988,993,000, to remain available until expended.

Payment under title XIX may be made for any quarter with

respect to a State plan or plan amendment in effect during such

quarter, if submitted in or prior to such quarter and approved

in that or any subsequent quarter.
110 STAT. 3009–249 PUBLIC LAW 104–208—SEPT. 30, 1996

PAYMENTS TO HEALTH CARE TRUST FUNDS

For payment to the Federal Hospital Insurance and the Federal

Supplementary Medical Insurance Trust Funds, as provided under

sections 217(g) and 1844 of the Social Security Act, sections 103(c)

and 111(d) of the Social Security Amendments of 1965, section

278(d) of Public Law 97–248, and for administrative expenses

incurred pursuant to section 201(g) of the Social Security Act,

$60,079,000,000.

PROGRAM MANAGEMENT

For carrying out, except as otherwise provided, titles XI, XVIII,

and XIX of the Social Security Act, title XIII of the Public Health

Service Act, and the Clinical Laboratory Improvement Amendments

of 1988, not to exceed $1,735,125,000 to be transferred from the

Federal Hospital Insurance and the Federal Supplementary Medical

Insurance Trust Funds, as authorized by section 201(g) of the

Social Security Act; together with all funds collected in accordance

with section 353 of the Public Health Service Act, the latter funds

to remain available until expended, together with such sums as

may be collected from authorized user fees and the sale of data,

which shall remain available until expended: Provided, That all

funds derived in accordance with 31 U.S.C. 9701 from organizations

established under title XIII of the Public Health Service Act are

to be credited to and available for carrying out the purposes of

this appropriation.

HEALTH MAINTENANCE ORGANIZATION LOAN AND LOAN GUARANTEE

FUND

For carrying out subsections (d) and (e) of section 1308 of

the Public Health Service Act, any amounts received by the Secretary in connection with loans and loan guarantees under title

XIII of the Public Health Service Act, to be available without

fiscal year limitation for the payment of outstanding obligations.

During fiscal year 1997, no commitments for direct loans or loan

guarantees shall be made.

ADMINISTRATION FOR CHILDREN AND FAMILIES

FAMILY SUPPORT PAYMENTS TO STATES

For making payments of such sums as necessary to each State

for carrying out the program of Aid to Families with Dependent

Children under title IV–A of the Social Security Act in fiscal year

1997 before the effective date of the program of Temporary Assistance to Needy Families (TANF) with respect to such State: Provided, That the sum of the amounts available to a State with respect

to expenditures under such title IV–A in fiscal year 1997 under

this appropriation and under such title IV–A as amended by the

Personal Responsibility and Work Opportunity Reconciliation Act

of 1996 shall not exceed the limitations under section 116(b) of

such Act.

For making payments to States for carrying out title IV–A

(other than section 402(g)(6)) of the Social Security Act in calendar

quarters prior to October 1, 1996, such sums as may be necessary.

For making payments to States or other non-Federal entities

under titles I, IV–D, X, XI, XIV, and XVI of the Social Security
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–250

Act and the Act of July 5, 1960 (24 U.S.C. ch. 9), $2,158,000,000

to remain available until expended.

For making, after May 31 of the current fiscal year, payments

to States or other non-Federal entities under titles I, IV–D, X,

XI, XIV, and XVI of the Social Security Act, for the last three

months of the current year for unanticipated costs, incurred for

the current fiscal year, such sums as may be necessary.

For making payments to States or other non-Federal entities

under titles I, IV–D, X, XI, XIV, and XVI of the Social Security

Act and the Act of July 5, 1960 (24 U.S.C. ch. 9) for the first

quarter of fiscal year 1998, $607,000,000, to remain available until

expended.

JOB OPPORTUNITIES AND BASIC SKILLS

For carrying out aid to families with dependent children work

programs, as authorized by part F of title IV of the Social Security

Act, $1,000,000,000.

LOW INCOME HOME ENERGY ASSISTANCE

For making payments under title XXVI of the Omnibus Budget Reconciliation Act of 1981, $1,000,000,000.

For making payments under title XXVI of the Omnibus Budget Reconciliation Act of 1981, $1,000,000,000, to be available for obligation in the period October 1, 1997 through September 30, 1998.

REFUGEE AND ENTRANT ASSISTANCE

For making payments for refugee and entrant assistance activities authorized by title IV of the Immigration and Nationality

Act and section 501 of the Refugee Education Assistance Act of

1980 (Public Law 96–422), $412,076,000: Provided, That funds

appropriated pursuant to section 414(a) of the Immigration and

Nationality Act under Public Law 103–333 for fiscal year 1995

shall be available for the costs of assistance provided and other

activities conducted in such year and in fiscal years 1996 and

1997.

CHILD CARE AND DEVELOPMENT BLOCK GRANT

(INCLUDING TRANSFER OF FUNDS)

For carrying out sections 658A through 658R of the Omnibus

Budget Reconciliation Act of 1981 (The Child Care and Development

Block Grant Act of 1990), $956,120,000, of which $937,000,000

shall become available on October 1, 1997 and shall remain available through September 30, 1998: Provided, That $19,120,000 shall

become available for obligation on October 1, 1996 for child care

resource and referral and school-aged child care activities, of which

$6,120,000 shall be derived from an amount that shall be transferred from the amount appropriated under section 452(j) of the

Social Security Act (42 U.S.C. 652(j)) for fiscal year 1996 and

remaining available for expenditure.

SOCIAL SERVICES BLOCK GRANT

For making grants to States pursuant to section 2002 of the

Social Security Act, $2,500,000,000: Provided, That notwithstanding

section 2003(c) of such Act, as amended, the amount specified
110 STAT. 3009–251 PUBLIC LAW 104–208—SEPT. 30, 1996

for allocation under such section for fiscal year 1997 shall be

$2,500,000,000.

CHILDREN AND FAMILIES SERVICES PROGRAMS

(INCLUDING RESCISSIONS)

For carrying out, except as otherwise provided, the Runaway

and Homeless Youth Act, the Developmental Disabilities Assistance

and Bill of Rights Act, the Head Start Act, the Child Abuse Prevention and Treatment Act, the Temporary Child Care for Children

with Disabilities and Crisis Nurseries Act of 1986, section 429A,

part B of title IV of the Social Security Act, section 413 of the

Social Security Act, the Family Violence Prevention and Services

Act, the Native American Programs Act of 1974, title II of Public

Law 95–266 (adoption opportunities), the Abandoned Infants Assistance Act of 1988, and part B(1) of title IV of the Social Security

Act; for making payments under the Community Services Block

Grant Act; and for necessary administrative expenses to carry out

said Acts and titles I, IV, X, XI, XIV, XVI, and XX of the Social

Security Act, the Act of July 5, 1960 (24 U.S.C. ch. 9), the Omnibus

Budget Reconciliation Act of 1981, title IV of the Immigration

and Nationality Act, section 501 of the Refugee Education Assistance Act of 1980, and section 126 and titles IV and V of Public

Law 100–485, $5,363,569,000, of which $536,432,000 shall be for

making payments under the Community Services Block Grant Act:

Provided, That to the extent Community Services Block Grant

funds are distributed as grant funds by a State to an eligible

entity as provided under the Act, and have not been expended

by such entity, they shall remain with such entity for carryover

into the next fiscal year for expenditure by such entity consistent

with program purposes: Provided further, That of the amount appropriated for fiscal year 1997 under section 672(a) of the Community

Services Block Grant Act, the Secretary shall use up to one percent

of the funds available to correct allocation errors that occurred

in fiscal year 1995 and fiscal year 1996 to ensure that the minimum

allotment to each State for each of fiscal years 1995 and 1996

would be $2,222,460: Provided further, That no more than onehalf of one percent of the funds available under section 672(a)

shall be used for the purposes of section 674(a) of the Community

Services Block Grant Act.

In addition, $20,000,000, to be derived from the Violent Crime

Reduction Trust Fund, for carrying out sections 40155, 40211 and

40241 of Public Law 103–322.

Funds appropriated for fiscal year 1996 and fiscal year 1997

under section 429A(e), part B of title IV of the Social Security

Act shall be reduced by $6,000,000 in each such year.

Funds appropriated for fiscal year 1997 under section 413(h)(1) of the Social Security Act shall be reduced by $15,000,000.

FAMILY PRESERVATION AND SUPPORT

For carrying out section 430 of the Social Security Act, $240,000,000.

PAYMENTS TO STATES FOR FOSTER CARE AND ADOPTION ASSISTANCE

For making payments to States or other non-Federal entities,

under title IV–E of the Social Security Act, $4,445,031,000.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–252

For making payments to States or other non-Federal entities,

under title IV–E of the Social Security Act, for the first quarter

of fiscal year 1998, $1,111,000,000.

ADMINISTRATION ON AGING

AGING SERVICES PROGRAMS

For carrying out, to the extent not otherwise provided, the Older Americans Act of 1965, as amended, $830,168,000: Provided, That notwithstanding section 308(b)(1) of such Act, the amounts

available to each State for administration of the State plan under

title III of such Act shall be reduced not more than 5 percent

below the amount that was available to such State for such purpose

for fiscal year 1995: Provided further, That in considering grant

applications for nutrition services for elder Indian recipients, the

Assistant Secretary shall provide maximum flexibility to applicants

who seek to take into account subsistence, local customs and other

characteristics that are appropriate to the unique cultural, regional

and geographic needs of the American Indian, Alaskan and Hawaiian native communities to be served.

OFFICE OF THE SECRETARY

GENERAL DEPARTMENTAL MANAGEMENT

For necessary expenses, not otherwise provided, for general

departmental management, including hire of six sedans, and for

carrying out titles III, XVII, and XX of the Public Health Service

Act, $174,523,000, together with $5,851,000, to be transferred and

expended as authorized by section 201(g)(1) of the Social Security

Act from the Hospital Insurance Trust Fund and the Supplemental

Medical Insurance Trust Fund: Provided, That of the funds made

available under this heading for carrying out title XVII of the

Public Health Service Act, $11,500,000 shall be available until

expended for extramural construction: Provided further, That notwithstanding section 2010 (b) and (c) under title XX of the Public

Health Service Act, as amended, of the funds made available under

this heading, $10,879,000 shall be for activities specified under

section 2003(b)(2) of title XX of the Public Health Service Act,

as amended, and of which $9,011,000 shall be for prevention grants

under section 510(b)(2) of title V of the Social Security Act, as

amended: Provided further, That of the amount provided, $5,775,000

is designated by Congress as an emergency requirement pursuant

to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency

Deficit Control Act of 1985, as amended.

OFFICE OF INSPECTOR GENERAL

For expenses necessary for the Office of Inspector General

in carrying out the provisions of the Inspector General Act of

1978, as amended, $32,999,000, together with any funds, to remain

available until expended, that represent the equitable share from

the forfeiture of property in investigations in which the Office

of Inspector General participated, and which are transferred to

the Office of Inspector General by the Department of Justice, the

Department of the Treasury, or the United States Postal Service.
110 STAT. 3009–253 PUBLIC LAW 104–208—SEPT. 30, 1996

OFFICE FOR CIVIL RIGHTS

For expenses necessary for the Office for Civil Rights, $16,216,000, together with not to exceed $3,314,000, to be transferred and expended as authorized by section 201(g)(1) of the Social

Security Act from the Hospital Insurance Trust Fund and the

Supplemental Medical Insurance Trust Fund.

POLICY RESEARCH

For carrying out, to the extent not otherwise provided, research

studies under section 1110 of the Social Security Act and section

301(l) of Public Law 104–191, $18,500,000: Provided, That

$9,500,000, to remain available until September 30, 1998, shall

be for carrying out section 301(l) of Public Law 104–191.

GENERAL PROVISIONS

SEC. 201. Funds appropriated in this title shall be available for not to exceed $37,000 for official reception and representation

expenses when specifically approved by the Secretary.

SEC. 202. The Secretary shall make available through assignment not more than 60 employees of the Public Health Service

to assist in child survival activities and to work in AIDS programs

through and with funds provided by the Agency for International

Development, the United Nations International Children’s Emergency Fund or the World Health Organization.

SEC. 203. None of the funds appropriated under this Act may

be used to implement section 399L(b) of the Public Health Service

Act or section 1503 of the National Institutes of Health Revitalization Act of 1993, Public Law 103–43.

SEC. 204. None of the funds made available by this Act may

be used to withhold payment to any State under the Child Abuse

Prevention and Treatment Act by reason of a determination that

the State is not in compliance with section 1340.2(d)(2)(ii) of title

45 of the Code of Federal Regulations. This provision expires upon

the date of enactment of the reauthorization of the Child Abuse

Prevention and Treatment Act.

SEC. 205. None of the funds appropriated in this Act for the

National Institutes of Health and the Substance Abuse and Mental

Health Services Administration shall be used to pay the salary

of an individual, through a grant or other extramural mechanism,

at a rate in excess of $125,000 per year.

SEC. 206. None of the funds appropriated in this Act may

be expended pursuant to section 241 of the Public Health Service

Act, except for funds specifically provided for in this Act, or for

other taps and assessments made by any office located in the

Department of Health and Human Services, prior to the Secretary’s

preparation and submission of a report to the Committee on Appropriations of the Senate and of the House detailing the planned

uses of such funds.

(TRANSFER OF FUNDS)

SEC. 207. Of the funds appropriated or otherwise made available for the Department of Health and Human Services, General

Departmental Management, for fiscal year 1997, the Secretary of

Health and Human Services shall transfer to the Office of the

Inspector General such sums as may be necessary for any expenses
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–254

with respect to the provision of security protection for the Secretary

of Health and Human Services.

SEC. 208. None of the funds appropriated in this Act may

be obligated or expended for the Federal Council on Aging under

the Older Americans Act or the Advisory Board on Child Abuse

and Neglect under the Child Abuse Prevention and Treatment

Act.

(TRANSFER OF FUNDS)

SEC. 209. Not to exceed 1 percent of any discretionary funds

(pursuant to the Balanced Budget and Emergency Deficit Control

Act, as amended) which are appropriated for the current fiscal

year for the Department of Health and Human Services in this

Act may be transferred between appropriations, but no such appropriation shall be increased by more than 3 percent by any such

transfer: Provided, That the Appropriations Committees of both

Houses of Congress are notified at least fifteen days in advance

of any transfer.

(TRANSFER OF FUNDS)

SEC. 210. The Director of the National Institutes of Health,

jointly with the Director of the Office of AIDS Research, may

transfer up to 3 percent among institutes, centers, and divisions

from the total amounts identified by these two Directors as funding

for research pertaining to the human immunodeficiency virus: Provided, That the Congress is promptly notified of the transfer.

(TRANSFER OF FUNDS)

SEC. 211. Of the amounts made available in this Act for the

National Institutes of Health, the amount for research related to

the human immunodeficiency virus, as jointly determined by the

Director of NIH and the Director of the Office of AIDS Research,

shall be made available to the ‘‘Office of AIDS Research’’ account.

The Director of the Office of AIDS Research shall transfer from

such account amounts necessary to carry out section 2353(d)(3)

of the Public Health Service Act.

SEC. 212. Not later than January 1, 1997, the Administrator

of the Health Care Financing Administration, with the advice and

technical assistance of the Agency for Health Care Policy and

Research, shall transmit to the appropriate committees of the Congress a report including—

(1) a review of all available studies and research data on

the treatment of end-stage emphysema and chronic obstructive

pulmonary disease by both unilateral and bilateral lung volume

reduction surgery, involving both invasive and noninvasive surgery

and supplemental surgical methods, including laser applications;

and

(2) a recommendation, based on such review, as to the appropriateness of Medicare coverage of such procedures and the conditions, if necessary, that facilities and physicians should be required

to meet, to ensure the efficacy of such procedures, as more detailed

clinical studies are conducted.

SEC. 213. Section 304(a)(1) of the Family Violence Prevention

and Services Act (42 U.S.C. 10403(a)(1)) is amended by striking

‘‘$200,000’’ and inserting ‘‘$400,000’’.
110 STAT. 3009–255 PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 214. The new clinical research center at the National

Institutes of Health is hereby named the Mark O. Hatfield Clinical

Research Center.

SEC. 215. Section 345 of Public Law 104–193 is amended by

replacing ‘‘section 457(a)’’ wherever it appears with ‘‘a plan approved

under this part’’. Amounts available under such section shall be

calculated as though such section were effective October 1, 1995.

This title may be cited as the ‘‘Department of Health and

Human Services Appropriations Act, 1997’’.

TITLE III—DEPARTMENT OF EDUCATION

EDUCATION REFORM

For carrying out activities authorized by titles III and IV of

the Goals 2000: Educate America Act and the School-to-Work

Opportunities Act, $691,000,000, of which $476,000,000 for the

Goals 2000: Educate America Act and $200,000,000 for the Schoolto-Work Opportunities Act shall become available on July 1, 1997,

and remain available through September 30, 1998: Provided, That

none of the funds appropriated under this heading shall be obligated

or expended to carry out section 304(a)(2)(A) of the Goals 2000:

Educate America Act.

EDUCATION FOR THE DISADVANTAGED

For carrying out title I of the Elementary and Secondary Education Act of 1965, and section 418A of the Higher Education

Act, $7,698,469,000, of which $6,380,114,000 shall become available

on July 1, 1997, and shall remain available through September

30, 1998, and of which $1,298,386,000 shall become available on

October 1, 1997 and shall remain available through September

30, 1998, for academic year 1997–1998: Provided, That

$6,194,850,000 shall be available for basic grants under section

1124: Provided further, That up to $3,500,000 of these funds shall

be available to the Secretary on October 1, 1996, to obtain updated

local-educational-agency-level census poverty data from the Bureau

of the Census: Provided further, That $999,249,000 shall be available for concentration grants under section 1124(A) and $7,000,000

shall be available for evaluations under section 1501.

IMPACT AID

For carrying out programs of financial assistance to federally

affected schools authorized by title VIII of the Elementary and

Secondary Education Act of 1965, $730,000,000, of which

$615,500,000 shall be for basic support payments under section

8003(b), $40,000,000 shall be for payments for children with disabilities under section 8003(d), $52,000,000, to remain available until

expended, shall be for payments under section 8003(f), $5,000,000

shall be for construction under section 8007, and $17,500,000 shall

be for Federal property payments under section 8002.

SCHOOL IMPROVEMENT PROGRAMS

For carrying out school improvement activities authorized by

titles II, IV–A–1, V–A and B, VI, IX, X and XIII of the Elementary

and Secondary Education Act of 1965; the Stewart B. McKinney

Homeless Assistance Act; and the Civil Rights Act of 1964;

Department of

Education

Appropriations

Act, 1997.

42 USC 652 note.

42 USC 652, 653.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–256

$1,425,631,000, of which $1,202,478,000 shall become available on

July 1, 1997, and remain available through September 30, 1998:

Provided, That of the amount appropriated, $310,000,000 shall be

for Eisenhower professional development State grants under title

II–B and $310,000,000 shall be for innovative education program

strategies State grants under title VI–A.

BILINGUAL AND IMMIGRANT EDUCATION

For carrying out, to the extent not otherwise provided, bilingual,

foreign language and immigrant education activities authorized

by parts A and C and section 7203 of title VII of the Elementary

and Secondary Education Act, without regard to section 7103(b),

$261,700,000, of which $100,000,000 shall be for immigrant education programs authorized by part C: Provided, That State educational agencies may use all, or any part of, their part C allocation

for competitive grants to local educational agencies: Provided further, That the Department of Education should only support instructional programs which ensure that students completely master English in a timely fashion (a period of three to five years) while

meeting rigorous achievement standards in the academic content

areas.

SPECIAL EDUCATION

For carrying out parts B, C, D, E, F, G, and H and section

610(j)(2)(C) of the Individuals with Disabilities Education Act,

$4,036,000,000, of which $3,783,685,000 shall become available for

obligation on July 1, 1997, and shall remain available through

September 30, 1998: Provided, That the Republic of the Marshall

Islands, the Federated States of Micronesia, and the Republic of

Palau shall continue to be eligible to receive funds under the

Individuals with Disabilities Education Act consistent with the

provisions of Public Law 104–134: Provided further, That the entities that received competitive awards for direct services to children

under section 611 of the Individuals with Disabilities Education

Act in accordance with the competition required in Public Law

104–134 shall continue to be funded, without competition, in the

same amounts as under Public Law 104–134.

REHABILITATION SERVICES AND DISABILITY RESEARCH

For carrying out, to the extent not otherwise provided, the

Rehabilitation Act of 1973, the Technology-Related Assistance for

Individuals with Disabilities Act, and the Helen Keller National

Center Act, as amended, $2,509,447,000.

SPECIAL INSTITUTIONS FOR PERSONS WITH DISABILITIES

AMERICAN PRINTING HOUSE FOR THE BLIND

For carrying out the Act of March 3, 1879, as amended (20 U.S.C. 101 et seq.), $6,680,000.

NATIONAL TECHNICAL INSTITUTE FOR THE DEAF

For the National Technical Institute for the Deaf under titles

I and II of the Education of the Deaf Act of 1986 (20 U.S.C.
110 STAT. 3009–257 PUBLIC LAW 104–208—SEPT. 30, 1996

4301 et seq.), $43,041,000: Provided, That from the amount available, the Institute may at its discretion use funds for the endowment

program as authorized under section 207.

GALLAUDET UNIVERSITY

For the Kendall Demonstration Elementary School, the Model

Secondary School for the Deaf, and the partial support of Gallaudet

University under titles I and II of the Education of the Deaf

Act of 1986 (20 U.S.C. 4301 et seq.), $79,182,000: Provided, That

from the amount available, the University may at its discretion

use funds for the endowment program as authorized under section

207.

VOCATIONAL AND ADULT EDUCATION

For carrying out, to the extent not otherwise provided, the

Carl D. Perkins Vocational and Applied Technology Education Act,

the Adult Education Act, and the National Literacy Act of 1991,

$1,486,531,000, of which $4,500,000 shall be for the National

Institute for Literacy; and of which $1,483,612,000 shall become

available on July 1, 1997 and shall remain available through

September 30, 1998: Provided, That, of the amounts made available

for title II of the Carl D. Perkins Vocational and Applied Technology

Education Act, $4,500,000 shall be used by the Secretary for national programs under title IV, without regard to section 451: Provided further, That, in addition, the Secretary may reserve up

to $9,000,000 under section 101(a)(1)(A) of the Carl D. Perkins

Vocational and Applied Technology Education Act, without regard

to section 451: Provided further, That the Secretary may reserve

up to $5,000,000 under section 313(d) of the Adult Education Act

for activities carried out under section 383 of that Act: Provided

further, That no funds shall be awarded to a State Council under

section 112(f) of the Carl D. Perkins Vocational and Applied Technology Education Act, and no State shall be required to operate

such a Council.

STUDENT FINANCIAL ASSISTANCE

For carrying out subparts 1, 3, and 4 of part A, part C and

part E of title IV of the Higher Education Act of 1965, as amended,

$7,560,407,000, which shall remain available through September

30, 1998.

The maximum Pell Grant for which a student shall be eligible

during award year 1997–1998 shall be $2,700: Provided, That notwithstanding section 401(g) of the Act, if the Secretary determines,

prior to publication of the payment schedule for such award year,

that the amount included within this appropriation for Pell Grant

awards in such award year, and any funds available from the

fiscal year 1996 appropriation for Pell Grant awards, are insufficient

to satisfy fully all such awards for which students are eligible,

as calculated under section 401(b) of the Act, the amount paid

for each such award shall be reduced by either a fixed or variable

percentage, or by a fixed dollar amount, as determined in accordance

with a schedule of reductions established by the Secretary for

this purpose.

20 USC 1070a

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–258

FEDERAL FAMILY EDUCATION LOAN PROGRAM ACCOUNT

For Federal administrative expenses to carry out guaranteed

student loans authorized by title IV, part B, of the Higher Education

Act, as amended, $46,572,000.

HIGHER EDUCATION

For carrying out, to the extent not otherwise provided, parts

A and B of title III, without regard to section 360(a)(1)(B)(ii),

titles IV, V, VI, VII, and IX, part A and subpart 1 of part B

of title X, and title XI of the Higher Education Act of 1965, as

amended, Public Law 102–423 and the Mutual Educational and

Cultural Exchange Act of 1961; $879,054,000, of which $15,673,000

for interest subsidies under title VII of the Higher Education Act,

as amended, shall remain available until expended: Provided, That

funds available for part D of title IX of the Higher Education

Act shall be available to fund noncompeting continuation awards

for academic year 1997–1998 for fellowships awarded originally

under part B of title IX of said Act, under the terms and conditions

of part B: Provided further, That $5,931,000 of the funds available

for part D of title IX of the Higher Education Act shall be available

to fund new and noncompeting continuation awards for academic

year 1997–1998 for fellowships awarded under part C of title IX

of said Act, under the terms and conditions of part C: Provided

further, That notwithstanding sections 419D, 419E, and 419H of

the Higher Education Act, as amended, scholarships made under

title IV, part A, subpart 6 shall be prorated to maintain the same

number of new scholarships in fiscal year 1997 as in fiscal year

1996: Provided further, That $3,000,000, to remain available until

expended, shall be for the George H.W. Bush fellowship program,

if authorized by April 1, 1997: Provided further, That $3,000,000,

to remain available until expended, shall be for the Edmund S.

Muskie Foundation to establish an endowment fund to provide

income to support such foundation on a continuing basis, if authorized by April 1, 1997: Provided further, That $3,000,000, to remain

available until expended, shall be for the Claiborne Pell Institute

for International Relations and Public Policy at Salve Regina University in Newport, Rhode Island, if authorized by April 1, 1997:

Provided further, That $1,000,000, to remain available until expended, shall be for the Calvin Coolidge Memorial Foundation,

if authorized by April 1, 1997: Provided further, That, of the

amounts made available under title X, part A of the Higher Education Act, $2,000,000 shall be awarded to the Pennsylvania Educational Telecommunications Exchange Network.

HOWARD UNIVERSITY

For partial support of Howard University (20 U.S.C. 121 et

seq.), $196,000,000: Provided, That from the amount available, the

University may at its discretion use funds for the endowment

program as authorized under the Howard University Endowment

Act (Public Law 98–480).

HIGHER EDUCATION FACILITIES LOANS

The Secretary is hereby authorized to make such expenditures,

within the limits of funds available under this heading and in

accord with law, and to make such contracts and commitments
110 STAT. 3009–259 PUBLIC LAW 104–208—SEPT. 30, 1996

without regard to fiscal year limitation, as provided by section

104 of the Government Corporation Control Act (31 U.S.C. 9104),

as may be necessary in carrying out the program for the current

fiscal year.

COLLEGE HOUSING AND ACADEMIC FACILITIES LOANS PROGRAM

For administrative expenses to carry out the existing direct

loan program of college housing and academic facilities loans

entered into pursuant to title VII, part C, of the Higher Education

Act, as amended, $698,000.

COLLEGE HOUSING LOANS

Pursuant to title VII, part C of the Higher Education Act,

as amended, for necessary expenses of the college housing loans

program, the Secretary shall make expenditures and enter into

contracts without regard to fiscal year limitation using loan repayments and other resources available to this account. Any unobligated balances becoming available from fixed fees paid into this

account pursuant to 12 U.S.C. 1749d, relating to payment of costs

for inspections and site visits, shall be available for the operating

expenses of this account.

HISTORICALLY BLACK COLLEGE AND UNIVERSITY CAPITAL FINANCING,

PROGRAM ACCOUNT

The total amount of bonds insured pursuant to section 724

of title VII, part B of the Higher Education Act shall not exceed

$357,000,000, and the cost, as defined in section 502 of the Congressional Budget Act of 1974, of such bonds shall not exceed zero.

For administrative expenses to carry out the Historically Black

College and University Capital Financing Program entered into

pursuant to title VII, part B of the Higher Education Act, as

amended, $104,000.

EDUCATION RESEARCH, STATISTICS, AND IMPROVEMENT

For carrying out activities authorized by the Educational

Research, Development, Dissemination, and Improvement Act of

1994, including part E; the National Education Statistics Act of

1994; section 2102, sections 3132, 3136 and 3141, parts B, C,

and D of title III and parts A, B, I, and K and section 10601

of title X, and part C of title XIII of the Elementary and Secondary

Education Act of 1965, as amended, and title VI of Public Law

103–227, $598,350,000: Provided, That $200,000,000 shall be for

section 3132, $56,965,000 shall be for section 3136 and $10,000,000

shall be for section 3141 of the Elementary and Secondary Education Act: Provided further, That notwithstanding any other provision of law, one-half of one percent of the amount available for

section 3132 of the Elementary and Secondary Education Act of

1965, as amended, shall be set aside for the outlying areas to

be distributed among the outlying areas on the basis of their relative

need as determined by the Secretary in accordance with the purposes of the program: Provided further, That, notwithstanding section 3131(b) of said Act, if any State educational agency does

not apply for a grant under section 3132, that State’s allotment

under section 3131 shall be reserved by the Secretary for grants

to local educational agencies in the State that apply directly to
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–260

the Secretary according to the terms and conditions announced

by the Secretary in the Federal Register: Provided further, That,

of the amount available for title III, part B of the Elementary

and Secondary Education Act of 1965, as amended, funds shall

be awarded to continue the Iowa Communication Network statewide

fiber optic demonstration and $2,000,000 shall be awarded to the

Southeastern Pennsylvania Consortium for Higher Education for

the establishment of local and wide area computer networks to

provide instructional resources to students and faculty: Provided

further, That none of the funds appropriated in this paragraph

may be obligated or expended for the Goals 2000 Community Partnerships Program.

LIBRARIES

Notwithstanding title VII of this Act, for carrying out titles

I, II, III, and IV of the Library Services and Construction Act,

and title II–B of the Higher Education Act, $136,369,000, of which

$16,369,000 shall be used to carry out the provisions of title II

of the Library Services and Construction Act and shall remain

available until expended; and $2,500,000 shall be for section 222

and $5,000,000 shall be for section 223 of the Higher Education

Act: Provided, That $1,000,000 shall be competitively awarded to

a nonprofit regional social tolerance resource center, operating tolerance tools and prejudice reduction programs and multimedia tolerance and genocide exhibits: Provided further, That $1,500,000 shall

be for the continuation of a demonstration project making information available for public use by connecting Internet to a multistate

consortium and a historical society: Provided further, That

$1,000,000 shall be for continuation of catalog conversion of research

and doctoral institutions and networking of local libraries under

the fiber optics demonstration initiated in Public Law 102–394

under section 223 of the Higher Education Act: Provided further,

That each State or local recipient of funds under titles I, II, III,

and IV of the Library Services and Construction Act may use

any such funds to plan for any library program or activity authorized under title VII of this Act and conduct any other activity

reasonably necessary to provide for an orderly and effective transition to the operation of library programs or activities under title

VII of this Act.

DEPARTMENTAL MANAGEMENT

PROGRAM ADMINISTRATION

For carrying out, to the extent not otherwise provided, the

Department of Education Organization Act, including rental of conference rooms in the District of Columbia and hire of two passenger

motor vehicles, $327,000,000.

OFFICE FOR CIVIL RIGHTS

For expenses necessary for the Office for Civil Rights, as authorized by section 203 of the Department of Education Organization

Act, $55,000,000.
110 STAT. 3009–261 PUBLIC LAW 104–208—SEPT. 30, 1996

OFFICE OF THE INSPECTOR GENERAL

For expenses necessary for the Office of the Inspector General,

as authorized by section 212 of the Department of Education

Organization Act, $30,000,000.

GENERAL PROVISIONS

SEC. 301. No funds appropriated in this Act may be used

for the transportation of students or teachers (or for the purchase

of equipment for such transportation) in order to overcome racial

imbalance in any school or school system, or for the transportation

of students or teachers (or for the purchase of equipment for such

transportation) in order to carry out a plan of racial desegregation

of any school or school system.

SEC. 302. None of the funds contained in this Act shall be

used to require, directly or indirectly, the transportation of any

student to a school other than the school which is nearest the

student’s home, except for a student requiring special education,

to the school offering such special education, in order to comply

with title VI of the Civil Rights Act of 1964. For the purpose

of this section an indirect requirement of transportation of students

includes the transportation of students to carry out a plan involving

the reorganization of the grade structure of schools, the pairing

of schools, or the clustering of schools, or any combination of grade

restructuring, pairing or clustering. The prohibition described in

this section does not include the establishment of magnet schools.

SEC. 303. No funds appropriated under this Act may be used

to prevent the implementation of programs of voluntary prayer

and meditation in the public schools.

SEC. 304. Notwithstanding any other provision of law, funds

available under section 458 of the Higher Education Act shall

not exceed $491,000,000 for fiscal year 1997. The Department of

Education shall use $80,000,000 of the amounts provided for payment of administrative cost allowances to guaranty agencies for

fiscal year 1996. For fiscal year 1997, the Department of Education

shall pay administrative costs to guaranty agencies, calculated on

the basis of 0.85 percent of the total principal amount of loans

upon which insurance was issued on or after October 1, 1996:

Provided, That such administrative costs shall be paid only on

the first $8,200,000,000 of the principal amount of loans upon

which insurance was issued on or after October 1, 1996 by such

guaranty agencies, and shall not exceed a total of $70,000,000.

Such payments are to be paid quarterly, and receipt of such funds

and uses of such funds shall be in accordance with section 428(f)

of the Higher Education Act.

Notwithstanding section 458 of the Higher Education Act, the

Secretary may not use funds available under that section or any

other section for subsequent fiscal years for administrative expenses

of the William D. Ford Direct Loan Program. The Secretary may

not require the return of guaranty agency reserve funds during

fiscal year 1997, except after consultation with both the Chairmen

and ranking members of the House Economic and Educational

Opportunities Committee and the Senate Labor and Human

Resources Committee. Any reserve funds recovered by the Secretary

shall be returned to the Treasury of the United States for purposes

of reducing the Federal deficit.

20 USC 1087h

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–262

No funds available to the Secretary may be used for (1) the

hiring of advertising agencies or other third parties to provide

advertising services for student loan programs prior to January

1, 1997, or (2) payment of administrative fees relating to the William

D. Ford Direct Loan Program to institutions of higher education.

SEC. 305. None of the funds appropriated in this Act may

be obligated or expended to carry out section 621(b) of Public

Law 101–589.

(TRANSFER OF FUNDS)

SEC. 306. Not to exceed 1 percent of any discretionary funds

(pursuant to the Balanced Budget and Emergency Deficit Control

Act, as amended) which are appropriated for the current fiscal

year for the Department of Education in this Act may be transferred

between appropriations, but no such appropriation shall be

increased by more than 3 percent by any such transfer: Provided, That the Appropriations Committees of both Houses of Congress

are notified at least fifteen days in advance of any transfer.

SEC. 307. (a) Section 8003(f)(3)(A)(i) of the Elementary and

Secondary Education Act of 1965 (20 U.S.C. 7703(f)(3)(A)(i)) is

amended—

(1) in the matter preceding subclause (I), by striking ‘‘The

Secretary’’ and all that follows through ‘‘greater of—’’ and

inserting the following: ‘‘The Secretary, in conjunction with

the local educational agency, shall first determine each of the

following:’’;

(2) in each of subclauses (I) through (III), by striking ‘‘the

average’’ each place it appears the first time in each such

subclause and inserting ‘‘The average’’;

(3) in subclause (I), by striking the semicolon and inserting

a period;

(4) in subclause (II), by striking ‘‘: or’’ and inserting a

period; and

(5) by adding at the end the following:

‘‘The local educational agency shall select one of the amounts

determined under subclause (I), (II), or (III) for purposes of the

remaining computations under this subparagraph.’’.

(b) The amendments made by subsection (a) shall apply with

respect to fiscal years beginning with fiscal year 1995.

SEC. 308. Section 485(e)(9) of the Higher Education Act of

1965 is amended by striking out ‘‘June 30’’ in the second sentence

of such section and inserting ‘‘August 30’’.

This title may be cited as the ‘‘Department of Education Appropriations Act, 1997’’.

TITLE IV—RELATED AGENCIES

ARMED FORCES RETIREMENT HOME

For expenses necessary for the Armed Forces Retirement Home

to operate and maintain the United States Soldiers’ and Airmen’s

Home and the United States Naval Home, to be paid from funds

available in the Armed Forces Retirement Home Trust Fund,

$56,204,000, of which $432,000 shall remain available until

expended for construction and renovation of the physical plants

at the United States Soldiers’ and Airmen’s Home and the United

States Naval Home: Provided, That this appropriation shall not

20 USC 1092.

20 USC 7703

note.
110 STAT. 3009–263 PUBLIC LAW 104–208—SEPT. 30, 1996

be available for the payment of hospitalization of members of the

Soldiers’ and Airmen’s Home in United States Army hospitals at

rates in excess of those prescribed by the Secretary of the Army

upon recommendation of the Board of Commissioners and the Surgeon General of the Army.

CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

DOMESTIC VOLUNTEER SERVICE PROGRAMS, OPERATING EXPENSES

For expenses necessary for the Corporation for National and

Community Service to carry out the provisions of the Domestic

Volunteer Service Act of 1973, as amended, $213,969,000.

CORPORATION FOR PUBLIC BROADCASTING

For payment to the Corporation for Public Broadcasting, as

authorized by the Communications Act of 1934, an amount which

shall be available within limitations specified by that Act, for the

fiscal year 1999, $250,000,000: Provided, That no funds made available to the Corporation for Public Broadcasting by this Act shall

be used to pay for receptions, parties, or similar forms of entertainment for Government officials or employees: Provided further, That

none of the funds contained in this paragraph shall be available

or used to aid or support any program or activity from which

any person is excluded, or is denied benefits, or is discriminated

against, on the basis of race, color, national origin, religion, or

sex.

FEDERAL MEDIATION AND CONCILIATION SERVICE

SALARIES AND EXPENSES

For expenses necessary for the Federal Mediation and Conciliation Service to carry out the functions vested in it by the Labor

Management Relations Act, 1947 (29 U.S.C. 171–180, 182–183),

including hire of passenger motor vehicles; and for expenses necessary for the Labor-Management Cooperation Act of 1978 (29

U.S.C. 175a); and for expenses necessary for the Service to carry

out the functions vested in it by the Civil Service Reform Act,

Public Law 95–454 (5 U.S.C. chapter 71), $32,579,000 including

$1,500,000, to remain available through September 30, 1998, for

activities authorized by the Labor-Management Cooperation Act

of 1978 (29 U.S.C. 175a): Provided, That notwithstanding 31 U.S.C.

3302, fees charged, up to full-cost recovery, for special training

activities and for arbitration services shall be credited to and

merged with this account, and shall remain available until

expended: Provided further, That fees for arbitration services shall

be available only for education, training, and professional development of the agency workforce: Provided further, That the Director

of the Service is authorized to accept on behalf of the United

States gifts of services and real, personal, or other property in

the aid of any projects or functions within the Director’s jurisdiction.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–264

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

SALARIES AND EXPENSES

For expenses necessary for the Federal Mine Safety and Health

Review Commission (30 U.S.C. 801 et seq.), $6,060,000.

NATIONAL COMMISSION ON LIBRARIES AND INFORMATION SCIENCE

SALARIES AND EXPENSES

For necessary expenses for the National Commission on Libraries and Information Science, established by the Act of July 20,

1970 (Public Law 91–345, as amended by Public Law 102–95),

$897,000.

NATIONAL COUNCIL ON DISABILITY

SALARIES AND EXPENSES

For expenses necessary for the National Council on Disability

as authorized by title IV of the Rehabilitation Act of 1973, as

amended, $1,793,000.

NATIONAL EDUCATION GOALS PANEL

For expenses necessary for the National Education Goals Panel,

as authorized by title II, part A of the Goals 2000: Educate America

Act, $1,500,000.

NATIONAL LABOR RELATIONS BOARD

SALARIES AND EXPENSES

For expenses necessary for the National Labor Relations Board

to carry out the functions vested in it by the Labor-Management

Relations Act, 1947, as amended (29 U.S.C. 141–167), and other

laws, $175,000,000: Provided, That no part of this appropriation

shall be available to organize or assist in organizing agricultural

laborers or used in connection with investigations, hearings, directives, or orders concerning bargaining units composed of agricultural

laborers as referred to in section 2(3) of the Act of July 5, 1935

(29 U.S.C. 152), and as amended by the Labor-Management Relations Act, 1947, as amended, and as defined in section 3(f) of

the Act of June 25, 1938 (29 U.S.C. 203), and including in said

definition employees engaged in the maintenance and operation

of ditches, canals, reservoirs, and waterways when maintained or

operated on a mutual, nonprofit basis and at least 95 per centum

of the water stored or supplied thereby is used for farming purposes:

Provided further, That none of the funds made available by this

Act shall be used in any way to promulgate a final rule (altering

29 CFR part 103) regarding single location bargaining units in

representation cases.
110 STAT. 3009–265 PUBLIC LAW 104–208—SEPT. 30, 1996

NATIONAL MEDIATION BOARD

SALARIES AND EXPENSES

For expenses necessary to carry out the provisions of the Railway Labor Act, as amended (45 U.S.C. 151–188), including emergency boards appointed by the President, $8,300,000: Provided,

That unobligated balances at the end of fiscal year 1997 not needed

for emergency boards shall remain available for other statutory

purposes through September 30, 1998.

OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION

SALARIES AND EXPENSES

For expenses necessary for the Occupational Safety and Health

Review Commission (29 U.S.C. 661), $7,753,000.

PHYSICIAN PAYMENT REVIEW COMMISSION

SALARIES AND EXPENSES

For expenses necessary to carry out section 1845(a) of the

Social Security Act, $3,263,000, to be transferred to this appropriation from the Federal Supplementary Medical Insurance Trust

Fund.

PROSPECTIVE PAYMENT ASSESSMENT COMMISSION

SALARIES AND EXPENSES

For expenses necessary to carry out section 1886(e) of the

Social Security Act, $3,263,000, to be transferred to this appropriation from the Federal Hospital Insurance and the Federal Supplementary Medical Insurance Trust Funds.

SOCIAL SECURITY ADMINISTRATION

PAYMENTS TO SOCIAL SECURITY TRUST FUNDS

For payment to the Federal Old-Age and Survivors Insurance

and the Federal Disability Insurance trust funds, as provided under

sections 201(m), 228(g), and 1131(b)(2) of the Social Security Act,

$20,923,000.

In addition, to reimburse these trust funds for administrative

expenses to carry out sections 9704 and 9706 of the Internal Revenue Code of 1986, $10,000,000, to remain available until expended.

SPECIAL BENEFITS FOR DISABLED COAL MINERS

For carrying out title IV of the Federal Mine Safety and Health

Act of 1977, $460,070,000, to remain available until expended.

For making, after July 31 of the current fiscal year, benefit

payments to individuals under title IV of the Federal Mine Safety

and Health Act of 1977, for costs incurred in the current fiscal

year, such amounts as may be necessary.

For making benefit payments under title IV of the Federal

Mine Safety and Health Act 1977 for the first quarter of fiscal

year 1998, $160,000,000, to remain available until expended.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–266

SUPPLEMENTAL SECURITY INCOME PROGRAM

For carrying out titles XI and XVI of the Social Security Act,

section 401 of Public Law 92–603, section 212 of Public Law 93–

66, as amended, and section 405 of Public Law 95–216, including

payment to the Social Security trust funds for administrative

expenses incurred pursuant to section 201(g)(1) of the Social Security Act, $19,372,010,000, to remain available until expended: Provided, That any portion of the funds provided to a State in the

current fiscal year and not obligated by the State during that

year shall be returned to the Treasury.

From funds provided under the previous paragraph, not less than $100,000,000 shall be available for payment to the Social

Security trust funds for administrative expenses for conducting

continuing disability reviews. In addition, $175,000,000, to remain available until September

30, 1998, for payment to the Social Security trust funds for administrative expenses for continuing disability reviews as authorized

by section 103 of Public Law 104–121 and Supplemental Security

Income administrative work as authorized by Public Law 104–

193. The term ‘‘continuing disability reviews’’ means reviews and

redetermination as defined under section 201(g)(1)(A) of the Social

Security Act as amended, and reviews and redeterminations authorized under section 211 of Public Law 104–193.

For making, after June 15 of the current fiscal year, benefit

payments to individuals under title XVI of the Social Security

Act, for unanticipated costs incurred for the current fiscal year,

such sums as may be necessary.

For carrying out title XVI of the Social Security Act for the first quarter of fiscal year 1998, $9,690,000,000, to remain available

until expended.

LIMITATION ON ADMINISTRATIVE EXPENSES

For necessary expenses, including the hire of two passenger motor vehicles, and not to exceed $10,000 for official reception

and representation expenses, not more than $5,873,382,000 may

be expended, as authorized by section 201(g)(1) of the Social Security Act or as necessary to carry out sections 9704 and 9706 of

the Internal Revenue Code of 1986 from any one or all of the

trust funds referred to therein: Provided, That reimbursement to

the trust funds under this heading for administrative expenses

to carry out sections 9704 and 9706 of the Internal Revenue Code

of 1986 shall be made, with interest, not later than September

30, 1998: Provided further, That not less than $1,268,000 shall

be for the Social Security Advisory Board: Provided further, That

unobligated balances at the end of fiscal year 1997 not needed

for fiscal year 1997 shall remain available until expended for a

state-of-the-art computing network, including related equipment

and administrative expenses associated solely with this network.

From funds provided under the previous paragraph, not less

than $200,000,000 shall be available for conducting continuing

disability reviews.

In addition to funding already available under this heading,

and subject to the same terms and conditions, $310,000,000, to

remain available until September 30, 1998, for continuing disability

reviews as authorized by section 103 of Public Law 104–121 and

Supplemental Security Income administrative work as authorized
110 STAT. 3009–267 PUBLIC LAW 104–208—SEPT. 30, 1996

by Public Law 104–193. The term ‘‘continuing disability reviews’’

means reviews and redetermination as defined under section

201(g)(1)(A) of the Social Security Act as amended, and reviews

and redeterminations authorized under section 211 of Public Law

104–193.

In addition to funding already available under this heading,

and subject to the same terms and conditions, $234,895,000, which

shall remain available until expended, to invest in a state-of-theart computing network, including related equipment and administrative expenses associated solely with this network, for the Social

Security Administration and the State Disability Determination

Services, may be expended from any or all of the trust funds

as authorized by section 201(g)(1) of the Social Security Act.

OFFICE OF INSPECTOR GENERAL

For expenses necessary for the Office of Inspector General

in carrying out the provisions of the Inspector General Act of

1978, as amended, $6,335,000, together with not to exceed

$31,089,000, to be transferred and expended as authorized by section 201(g)(1) of the Social Security Act from the Federal OldAge and Survivors Insurance Trust Fund and the Federal Disability

Insurance Trust Fund.

RAILROAD RETIREMENT BOARD

DUAL BENEFITS PAYMENTS ACCOUNT

For payment to the Dual Benefits Payments Account, authorized under section 15(d) of the Railroad Retirement Act of 1974,

$223,000,000, which shall include amounts becoming available in

fiscal year 1997 pursuant to section 224(c)(1)(B) of Public Law

98–76; and in addition, an amount, not to exceed 2 percent of

the amount provided herein, shall be available proportional to the

amount by which the product of recipients and the average benefit

received exceeds $223,000,000: Provided, That the total amount

provided herein shall be credited in 12 approximately equal amounts

on the first day of each month in the fiscal year.

FEDERAL PAYMENTS TO THE RAILROAD RETIREMENT ACCOUNTS

For payment to the accounts established in the Treasury for

the payment of benefits under the Railroad Retirement Act for

interest earned on unnegotiated checks, $300,000, to remain available through September 30, 1998, which shall be the maximum

amount available for payment pursuant to section 417 of Public

Law 98–76.

LIMITATION ON ADMINISTRATION

For necessary expenses for the Railroad Retirement Board for

administration of the Railroad Retirement Act and the Railroad

Unemployment Insurance Act, $87,898,000, to be derived in such

amounts as determined by the Board from the railroad retirement

accounts and from moneys credited to the railroad unemployment

insurance administration fund.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–268

LIMITATION ON THE OFFICE OF INSPECTOR GENERAL

For expenses necessary for the Office of Inspector General

for audit, investigatory and review activities, as authorized by the

Inspector General Act of 1978, as amended, not more than

$5,404,000, to be derived from the railroad retirement accounts

and railroad unemployment insurance account: Provided, That none

of the funds made available in this Act may be transferred to

the Office from the Department of Health and Human Services,

or used to carry out any such transfer: Provided further, That

none of the funds made available in this paragraph may be used

for any audit, investigation, or review of the Medicare program.

UNITED STATES INSTITUTE OF PEACE

OPERATING EXPENSES

For necessary expenses of the United States Institute of Peace

as authorized in the United States Institute of Peace Act,

$11,160,000.

TITLE V—GENERAL PROVISIONS

SEC. 501. The Secretaries of Labor, Health and Human Services, and Education are authorized to transfer unexpended balances

of prior appropriations to accounts corresponding to current appropriations provided in this Act: Provided, That such transferred

balances are used for the same purpose, and for the same periods

of time, for which they were originally appropriated.

SEC. 502. No part of any appropriation contained in this Act

shall remain available for obligation beyond the current fiscal year

unless expressly so provided herein.

SEC. 503. (a) No part of any appropriation contained in this

Act shall be used, other than for normal and recognized executivelegislative relationships, for publicity or propaganda purposes, for

the preparation, distribution, or use of any kit, pamphlet, booklet,

publication, radio, television, or video presentation designed to support or defeat legislation pending before the Congress, except in

presentation to the Congress itself or any State legislature, except

in presentation to the Congress or any State legislative body itself.

(b) No part of any appropriation contained in this Act shall

be used to pay the salary or expenses of any grant or contract

recipient, or agent acting for such recipient, related to any activity

designed to influence legislation or appropriations pending before

the Congress or any State legislature.

SEC. 504. The Secretaries of Labor and Education are each

authorized to make available not to exceed $15,000 from funds

available for salaries and expenses under titles I and III, respectively, for official reception and representation expenses; the Director of the Federal Mediation and Conciliation Service is authorized

to make available for official reception and representation expenses

not to exceed $2,500 from the funds available for ‘‘Salaries and

expenses, Federal Mediation and Conciliation Service’’; and the

Chairman of the National Mediation Board is authorized to make

available for official reception and representation expenses not to

exceed $2,500 from funds available for ‘‘Salaries and expenses,

National Mediation Board’’.
110 STAT. 3009–269 PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 505. Notwithstanding any other provision of this Act,

no funds appropriated under this Act shall be used to carry out

any program of distributing sterile needles for the hypodermic

injection of any illegal drug unless the Secretary of Health and

Human Services determines that such programs are effective in

preventing the spread of HIV and do not encourage the use of

illegal drugs.

SEC. 506. (a) PURCHASE OF AMERICAN-MADE EQUIPMENT AND

PRODUCTS.—It is the sense of the Congress that, to the greatest

extent practicable, all equipment and products purchased with

funds made available in this Act should be American-made.

(b) NOTICE REQUIREMENT.—In providing financial assistance

to, or entering into any contract with, any entity using funds

made available in this Act, the head of each Federal agency, to

the greatest extent practicable, shall provide to such entity a notice

describing the statement made in subsection (a) by the Congress.

(c) PROHIBITION OF CONTRACTS WITH PERSONS FALSELY LABELING PRODUCTS AS MADE IN AMERICA.—If it has been finally determined by a court or Federal agency that any person intentionally

affixed a label bearing a ‘‘Made in America’’ inscription, or any

inscription with the same meaning, to any product sold in or shipped

to the United States that is not made in the United States, the

person shall be ineligible to receive any contract or subcontract

made with funds made available in this Act, pursuant to the debarment, suspension, and ineligibility procedures described in sections

9.400 through 9.409 of title 48, Code of Federal Regulations.

SEC. 507. When issuing statements, press releases, requests

for proposals, bid solicitations and other documents describing

projects or programs funded in whole or in part with Federal

money, all grantees receiving Federal funds included in this Act,

including but not limited to State and local governments and recipients of Federal research grants, shall clearly state (1) the percentage

of the total costs of the program or project which will be financed

with Federal money, (2) the dollar amount of Federal funds for

the project or program, and (3) percentage and dollar amount of

the total costs of the project or program that will be financed

by nongovernmental sources.

SEC. 508. None of the funds appropriated under this Act shall

be expended for any abortion except when it is made known to

the Federal entity or official to which funds are appropriated under

this Act that such procedure is necessary to save the life of the

mother or that the pregnancy is the result of an act of rape or

incest.

SEC. 509. Notwithstanding any other provision of law—

(1) no amount may be transferred from an appropriation

account for the Departments of Labor, Health and Human

Services, and Education except as authorized in this or any

subsequent appropriation Act, or in the Act establishing the

program or activity for which funds are contained in this Act;

(2) no department, agency, or other entity, other than the

one responsible for administering the program or activity for

which an appropriation is made in this Act, may exercise

authority for the timing of the obligation and expenditure of

such appropriation, or for the purpose for which it is obligated

and expended, except to the extent and in the manner otherwise

provided in sections 1512 and 1513 of title 31, United States

Code; and

31 USC 1301

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–270

(3) no funds provided under this Act shall be available

for the salary (or any part thereof) of an employee who is

reassigned on a temporary detail basis to another position

in the employing agency or department or in any other agency

or department, unless the detail is independently approved

by the head of the employing department or agency.

SEC. 510. None of the funds made available in this Act may

be used for the expenses of an electronic benefit transfer (EBT)

task force.

SEC. 511. None of the funds made available in this Act may

be used to enforce the requirements of section 428(b)(1)(U)(iii) of

the Higher Education Act of 1965 with respect to any lender when

it is made known to the Federal official having authority to obligate

or expend such funds that the lender has a loan portfolio under

part B of title IV of such Act that is equal to or less than $5,000,000.

SEC. 512. (a) None of the funds made available in this Act

may be used for—

(1) the creation of a human embryo or embryos for research

purposes; or

(2) research in which a human embryo or embryos are

destroyed, discarded, or knowingly subjected to risk of injury

or death greater than that allowed for research on fetuses

in utero under 45 CFR 46.208(a)(2) and section 498(b) of the

Public Health Service Act (42 U.S.C. 289g(b)).

(b) For purposes of this section, the term ‘‘human embryo

or embryos’’ include any organism, not protected as a human subject

under 45 CFR 46 as of the date of the enactment of this Act,

that is derived by fertilization, parthenogenesis, cloning, or any

other means from one or more human gametes.

SEC. 513. (a) LIMITATION ON USE OF FUNDS FOR PROMOTION

OF LEGALIZATION OF CONTROLLED SUBSTANCES.—None of the funds

made available in this Act may be used for any activity when

it is made known to the Federal official having authority to obligate

or expend such funds that the activity promotes the legalization

of any drug or other substance included in schedule I of the schedules of controlled substances established by section 202 of the

Controlled Substances Act (21 U.S.C. 812).

(b) EXCEPTIONS.—The limitation in subsection (a) shall not

apply when it is made known to the Federal official having authority

to obligate or expend such funds that there is significant medical

evidence of a therapeutic advantage to the use of such drug or

other substance or that Federally-sponsored clinical trials are being

conducted to determine therapeutic advantage.

SEC. 514. (a) DENIAL OF FUNDS FOR PREVENTING ROTC ACCESS

TO CAMPUS.—None of the funds made available in this or any

other Departments of Labor, Health and Human Services, and

Education, and Related Agencies Appropriations Act for any fiscal

year may be provided by contract or by grant (including a grant

of funds to be available for student aid) to a covered educational

entity if the Secretary of Defense determines that the covered

educational entity has a policy or practice (regardless of when

implemented) that either prohibits, or in effect prevents—

(1) the maintaining, establishing, or operation of a unit

of the Senior Reserve Officer Training Corps (in accordance

with section 654 of title 10, United States Code, and other

applicable Federal laws) at the covered educational entity; or

10 USC 503 note.
110 STAT. 3009–271 PUBLIC LAW 104–208—SEPT. 30, 1996

(2) a student at the covered educational entity from enrolling in a unit of the Senior Reserve Officer Training Corps

at another institution of higher education.

(b) DENIAL OF FUNDS FOR PREVENTING FEDERAL MILITARY

RECRUITING ON CAMPUS.—None of the funds made available in

this or any other Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act for

any fiscal year may be provided by contract or by grant (including

a grant of funds to be available for student aid) to a covered

educational entity if the Secretary of Defense determines that the

covered educational entity has a policy or practice (regardless of

when implemented) that either prohibits, or in effect prevents—

(1) entry to campuses, or access to students (who are 17

years of age or older) on campuses, for purposes of Federal

military recruiting; or

(2) access by military recruiters for purposes of Federal

military recruiting to the following information pertaining to

students (who are 17 years of age or older) enrolled at the

covered educational entity:

(A) student names, addresses, and telephone listings;

and

(B) if known, student ages, levels of education, and

majors.

(c) EXCEPTIONS.—The limitation established in subsection (a)

or (b) shall not apply to a covered educational entity if the Secretary

of Defense determines that—

(1) the covered educational entity has ceased the policy

or practice described in such subsection;

(2) the institution of higher education involved has a longstanding policy of pacifism based on historical religious affiliation; or

(3) the institution of higher education involved is prohibited

by the law of any State, or by the order of any State court,

from allowing Senior Reserve Officer Training Corps activities

or Federal military recruiting on campus, except that this paragraph shall apply only during the one-year period beginning

on the effective date of this section.

(d) NOTICE OF DETERMINATIONS.—Whenever the Secretary of

Defense makes a determination under subsection (a), (b), or (c),

the Secretary—

(1) shall transmit a notice of the determination to the

Secretary of Education and to the Congress; and

(2) shall publish in the Federal Register a notice of the

determination and the effect of the determination on the eligibility of the covered educational entity for contracts and grants.

(e) SEMIANNUAL NOTICE IN FEDERAL REGISTER.—The Secretary

of Defense shall publish in the Federal Register once every 6

months a list of each covered educational entity that is currently

ineligible for contracts and grants by reason of a determination

of the Secretary under subsection (a) or (b).

(f) COVERED EDUCATIONAL ENTITY.—For purposes of this section, the term ‘‘covered educational entity’’ means an institution

of higher education, or a subelement of an institution of higher

education.

(g) EFFECTIVE DATE.—This section shall take effect upon the

expiration of the 180-day period beginning on the date of the enactment of this Act, by which date the Secretary of Defense shall
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–272

have published final regulations in consultation with the Secretary

of Education to carry out this section.

SEC. 515. (a) TECHNICAL AMENDMENT TO OTHER ROTC AND

MILITARY RECRUITING PROVISIONS.—Sections 508 and 509 of the

Energy and Water Development Appropriations Act, 1997, are

amended by striking ‘‘when it is made known to the Federal official

having authority to obligate or expend such funds’’ each place

it appears and inserting ‘‘if the Secretary of Defense determines’’.

(b) EFFECTIVE DATE.—Sections 508 and 509 of the Energy

and Water Development Appropriations Act, 1997, shall not take

effect until the expiration of the 180-day period beginning on the

date of the enactment of this Act, by which date the Secretary

of Defense shall have published final regulations to carry out such

sections (as amended by subsection (a)).

SEC. 516. None of the funds made available in this Act may

be obligated or expended to enter into or renew a contract with

an entity when it is made known to the Federal official having

authority to obligate or expend such funds that—

(1) such entity is otherwise a contractor with the United

States and is subject to the requirement in section 4212(d)

of title 38, United States Code, regarding submission of an

annual report to the Secretary of Labor concerning employment

of certain veterans; and

(2) such entity has not submitted a report as required

by that section for the most recent year for which such requirement was applicable to such entity.

SEC. 517. (a) Notwithstanding any provision of the Carl D.

Perkins Vocational and Applied Technology Act (as such Act was

in effect on September 24, 1990), a State shall be deemed to have

met the requirements of section 503 of such Act with respect to

decisions appealed by applications filed on April 30, 1993 and

October 29, 1993 under section 452(b) of the General Education

Provisions Act.

(b) Subsection (a) shall take effect on October 1, 1996.

SEC. 518. None of the funds appropriated in this Act may

be made available to any entity under title X of the Public Health

Service Act unless it is made known to the Federal official having

authority to obligate or expend such funds that the applicant for

the award certifies to the Secretary that it encourages family

participation in the decision of the minor to seek family planning

services.

SEC. 519. Of the budgetary resources available to agencies

in this Act for salaries and expenses during fiscal year 1997,

$30,500,000, to be allocated by the Office of Management and

Budget, are permanently canceled: Provided, That the foregoing

provision shall not apply to the Food and Drug Administration

and the Indian Health Service: Provided further, That amounts

available in this Act for congressional and legislative affairs, public

affairs, and intergovernmental affairs activities are hereby reduced

by $2,000,000.

SEC. 520. VOLUNTARY SEPARATION INCENTIVES FOR EMPLOYEES

OF CERTAIN FEDERAL AGENCIES.—(a) DEFINITIONS.—For the purposes of this section—

(1) the term ‘‘agency’’ means the Railroad Retirement Board

and the Office of Inspector General of the Railroad Retirement

Board;

5 USC 5597 note.
110 STAT. 3009–273 PUBLIC LAW 104–208—SEPT. 30, 1996

(2) the term ‘‘employee’’ means an employee (as defined

by section 2105 of title 5, United States Code) who is employed

by an agency, is serving under an appointment without time

limitation, and has been currently employed for a continuous

period of at least 3 years, but does not include—

(A) a reemployed annuitant under subchapter III of

chapter 83 or chapter 84 of title 5, United States Code,

or another retirement system for employees of the agency;

(B) an employee having a disability on the basis of

which such employee is or would be eligible for disability

retirement under subchapter III of chapter 83 or chapter

84 of title 5, United States Code, or another retirement

system for employees of the agency;

(C) an employee who is in receipt of a specific notice

of involuntary separation for misconduct or unacceptable

performance;

(D) an employee who, upon completing an additional

period of service as referred to in section 3(b)(2)(B)(ii) of

the Federal Workforce Restructuring Act of 1994 (5 U.S.C.

5597 note), would qualify for a voluntary separation incentive payment under section 3 of such Act;

(E) an employee who has previously received any voluntary separation incentive payment by the Federal

Government under this section or any other authority and

has not repaid such payment;

(F) an employee covered by statutory reemployment

rights who is on transfer to another organization; or

(G) any employee who, during the twenty-four-month

period preceding the date of separation, has received a

recruitment or relocation bonus under section 5753 of title

5, United States Code, or who, within the twelve-month

period preceding the date of separation, received a retention

allowance under section 5754 of title 5, United States Code.

(b) AGENCY STRATEGIC PLAN.—

(1) IN GENERAL.—The three-member Railroad Retirement

Board, prior to obligating any resources for voluntary separation incentive payments, shall submit to the House and Senate

Committees on Appropriations and the Committee on Governmental Affairs of the Senate and the Committee on Government

Reform and Oversight of the House of Representatives a strategic plan outlining the intended use of such incentive payments

and a proposed organizational chart for the agency once such

incentive payments have been completed.

(2) CONTENTS.—The agency’s plan shall include—

(A) the positions and functions to be reduced or eliminated, identified by organizational unit, geographic location, occupational category and grade level;

(B) the number and amounts of voluntary separation

incentive payments to be offered; and

(C) a description of how the agency will operate without

the eliminated positions and functions.

(c) AUTHORITY TO PROVIDE VOLUNTARY SEPARATION INCENTIVE

PAYMENTS.—

(1) IN GENERAL.—A voluntary separation incentive payment

under this section may be paid by an agency to any employee

only to the extent necessary to eliminate the positions and

functions identified by the strategic plan.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–274

(2) AMOUNT AND TREATMENT OF PAYMENTS.—A voluntary

separation incentive payment—

(A) shall be paid in a lump sum after the employee’s

separation;

(B) shall be paid from appropriations or funds available

for the payment of the basic pay of the employees;

(C) shall be equal to the lesser of—

(i) an amount equal to the amount the employee

would be entitled to receive under section 5595(c) of

title 5, United States Code; or

(ii) an amount determined by the agency head

not to exceed $25,000;

(D) may not be made except in the case of any qualifying employee who voluntarily separates (whether by retirement or resignation) before September 30, 1997;

(E) shall not be a basis for payment, and shall not

be included in the computation, of any other type of Government benefit; and

(F) shall not be taken into account in determining

the amount of any severance pay to which the employee

may be entitled under section 5595 of title 5, United States

Code, based on any other separation.

(d) ADDITIONAL AGENCY CONTRIBUTIONS TO THE RETIREMENT

FUND.—

(1) IN GENERAL.—In addition to any other payments which

it is required to make under subchapter III of chapter 83

of title 5, United States Code, an agency shall remit to the

Office of Personnel Management for deposit in the Treasury

of the United States to the credit of the Civil Service Retirement

and Disability Fund an amount equal to 15 percent of the

final basic pay of each employee of the agency who is covered

under subchapter III of chapter 83 or chapter 84 of title 5,

United States Code, to whom a voluntary separation incentive

has been paid under this section.

2) DEFINITION.—For the purpose of paragraph (1), the term

‘‘final basic pay’’, with respect to an employee, means the total

amount of basic pay which would be payable for a year of

service by such employee, computed using the employee’s final

rate of basic pay, and, if last serving on other than a fulltime basis, with appropriate adjustment therefor.

e) EFFECT OF SUBSEQUENT EMPLOYMENT WITH THE GOVERNMENT.—An individual who has received a voluntary separation

incentive payment under this section and accepts any employment

for compensation with the Government of the United States, or

who works for any agency of the United States Government through

a personal services contract, within 5 years after the date of the

separation on which the payment is based shall be required to

pay, prior to the individual’s first day of employment, the entire

amount of the incentive payment to the agency that paid the

incentive payment.

(f) REDUCTION OF AGENCY EMPLOYMENT LEVELS.—

(1) IN GENERAL.—The total number of funded employee

positions in the agency shall be reduced by one position for

each vacancy created by the separation of any employee who
110 STAT. 3009–275 PUBLIC LAW 104–208—SEPT. 30, 1996

has received, or is due to receive, a voluntary separation incentive payment under this section. For the purposes of this subsection, positions shall be counted on a full-time-equivalent

basis.

(2) ENFORCEMENT.—The President, through the Office of

Management and Budget, shall monitor the agency and take

any action necessary to ensure that the requirements of this

subsection are met.

(g) EFFECTIVE DATE.—This section shall take effect October

1, 1996.

SEC. 521. CORRECTION OF EFFECTIVE DATE.—Effective on the

day after the date of enactment of the Health Centers Consolidation

Act of 1996, section 5 of that Act is amended by striking ‘‘October

1, 1997’’ and inserting ‘‘October 1, 1996’’.

TITLE VI—REORGANIZATION AND PRIVATIZATION OF

SALLIE MAE AND CONNIE LEE

SEC. 601. SHORT TITLE.

This title may be cited as the ‘‘Student Loan Marketing Association Reorganization Act of 1996’’.

SEC. 602. REORGANIZATION OF THE STUDENT LOAN MARKETING

ASSOCIATION THROUGH THE FORMATION OF A HOLDING

COMPANY.

(a) AMENDMENT.—Part B of title IV of the Higher Education

Act of 1965 (20 U.S.C. 1071 et seq.) is amended by inserting

after section 439 (20 U.S.C. 1087–2) the following new section:

‘‘SEC. 440. REORGANIZATION OF THE STUDENT LOAN MARKETING

ASSOCIATION THROUGH THE FORMATION OF A HOLDING

COMPANY.

‘‘(a) ACTIONS BY THE ASSOCIATION’S BOARD OF DIRECTORS.— The Board of Directors of the Association shall take or cause to

be taken all such action as the Board of Directors deems necessary

or appropriate to effect, upon the shareholder approval described

in subsection (b), a restructuring of the common stock ownership

of the Association, as set forth in a plan of reorganization adopted

by the Board of Directors (the terms of which shall be consistent

with this section) so that all of the outstanding common shares

of the Association shall be directly owned by a Holding Company.

Such actions may include, in the Board of Director’s discretion,

a merger of a wholly owned subsidiary of the Holding Company

with and into the Association, which would have the effect provided

in the plan of reorganization and the law of the jurisdiction in

which such subsidiary is incorporated. As part of the restructuring,

the Board of Directors may cause—

‘‘(1) the common shares of the Association to be converted,

on the reorganization effective date, to common shares of the

Holding Company on a one for one basis, consistent with

applicable State or District of Columbia law; and

‘‘(2) Holding Company common shares to be registered

with the Securities and Exchange Commission.

‘‘(b) SHAREHOLDER APPROVAL.—The plan of reorganization

adopted by the Board of Directors pursuant to subsection (a) shall

be submitted to common shareholders of the Association for their

approval. The reorganization shall occur on the reorganization effective date, provided that the plan of reorganization has been

20 USC 1087–3.

Student Loan

Marketing

Association

Reorganization

Act of 1996.

20 USC 1001

note.

42 USC 233 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–276

approved by the affirmative votes, cast in person or by proxy,

of the holders of a majority of the issued and outstanding shares

of the Association common stock.

‘‘(c) TRANSITION.—In the event the shareholders of the Association approve the plan of reorganization under subsection (b), the

following provisions shall apply beginning on the reorganization

effective date:

‘‘(1) IN GENERAL.—Except as specifically provided in this

section, until the dissolution date the Association shall continue

to have all of the rights, privileges and obligations set forth

in, and shall be subject to all of the limitations and restrictions

of, section 439, and the Association shall continue to carry

out the purposes of such section. The Holding Company and

any subsidiary of the Holding Company (other than the Association) shall not be entitled to any of the rights, privileges,

and obligations, and shall not be subject to the limitations

and restrictions, applicable to the Association under section

439, except as specifically provided in this section. The Holding

Company and any subsidiary of the Holding Company (other

than the Association or a subsidiary of the Association) shall

not purchase loans insured under this Act until such time

as the Association ceases acquiring such loans, except that

the Holding Company may purchase such loans if the Association is merely continuing to acquire loans as a lender of last

resort pursuant to section 439(q) or under an agreement with

the Secretary described in paragraph (6).

‘‘(2) TRANSFER OF CERTAIN PROPERTY.—

‘‘(A) IN GENERAL.—Except as provided in this section,

on the reorganization effective date or as soon as practicable thereafter, the Association shall use the Association’s best efforts to transfer to the Holding Company or

any subsidiary of the Holding Company (or both), as

directed by the Holding Company, all real and personal

property of the Association (both tangible and intangible)

other than the remaining property. Subject to the preceding

sentence, such transferred property shall include all right,

title, and interest in—

‘‘(i) direct or indirect subsidiaries of the Association

(excluding special purpose funding companies in existence on the date of enactment of this section and

any interest in any government-sponsored enterprise);

‘‘(ii) contracts, leases, and other agreements of the

Association;

‘‘(iii) licenses and other intellectual property of

the Association; and

‘‘(iv) any other property of the Association.

‘‘(B) CONSTRUCTION.—Nothing in this paragraph shall

be construed to prohibit the Association from transferring

remaining property from time to time to the Holding Company or any subsidiary of the Holding Company, subject

to the provisions of paragraph (4).

‘‘(3) TRANSFER OF PERSONNEL.—On the reorganization effective date, employees of the Association shall become employees

of the Holding Company (or any subsidiary of the Holding

Company), and the Holding Company (or any subsidiary of

the Holding Company) shall provide all necessary and appropriate management and operational support (including loan
110 STAT. 3009–277 PUBLIC LAW 104–208—SEPT. 30, 1996

servicing) to the Association, as requested by the Association.

The Association, however, may obtain such management and

operational support from persons or entities not associated

with the Holding Company.

‘‘(4) DIVIDENDS.—The Association may pay dividends in

the form of cash or noncash distributions so long as at the

time of the declaration of such dividends, after giving effect

to the payment of such dividends as of the date of such declaration by the Board of Directors of the Association, the Association’s capital would be in compliance with the capital standards

and requirements set forth in section 439(r). If, at any time

after the reorganization effective date, the Association fails

to comply with such capital standards, the Holding Company

shall transfer with due diligence to the Association additional

capital in such amounts as are necessary to ensure that the

Association again complies with the capital standards.

‘‘(5) CERTIFICATION PRIOR TO DIVIDEND.—Prior to the payment of any dividend under paragraph (4), the Association

shall certify to the Secretary of the Treasury that the payment

of the dividend will be made in compliance with paragraph

(4) and shall provide copies of all calculations needed to make

such certification.

‘‘(6) RESTRICTIONS ON NEW BUSINESS ACTIVITY OR ACQUISITION OF ASSETS BY ASSOCIATION.—

‘‘(A) IN GENERAL.—After the reorganization effective

date, the Association shall not engage in any new business

activities or acquire any additional program assets

described in section 439(d) other than in connection with—

‘‘(i) student loan purchases through September 30,

2007;

‘‘(ii) contractual commitments for future

warehousing advances, or pursuant to letters of credit

or standby bond purchase agreements, which are

outstanding as of the reorganization effective date;

‘‘(iii) the Association serving as a lender-of-lastresort pursuant to section 439(q); and

‘‘(iv) the Association’s purchase of loans insured

under this part, if the Secretary, with the approval

of the Secretary of the Treasury, enters into an agreement with the Association for the continuation or

resumption of the Association’s secondary market purchase program because the Secretary determines there

is inadequate liquidity for loans made under this part.

‘‘(B) AGREEMENT.—The Secretary is authorized to enter

into an agreement described in clause (iv) of subparagraph

(A) with the Association covering such secondary market

activities. Any agreement entered into under such clause

shall cover a period of 12 months, but may be renewed

if the Secretary determines that liquidity remains inadequate. The fee provided under section 439(h)(7) shall not

apply to loans acquired under any such agreement with

the Secretary.

‘‘(7) ISSUANCE OF DEBT OBLIGATIONS DURING THE TRANSITION PERIOD; ATTRIBUTES OF DEBT OBLIGATIONS.—After the

reorganization effective date, the Association shall not issue

debt obligations which mature later than September 30, 2008,

except in connection with serving as a lender-of-last-resort
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–278

pursuant to section 439(q) or with purchasing loans under

an agreement with the Secretary as described in paragraph

(6). Nothing in this section shall modify the attributes accorded

the debt obligations of the Association by section 439, regardless

of whether such debt obligations are incurred prior to, or at

any time following, the reorganization effective date or are

transferred to a trust in accordance with subsection (d).

‘‘(8) MONITORING OF SAFETY AND SOUNDNESS.—

‘‘(A) OBLIGATION TO OBTAIN, MAINTAIN, AND REPORT

INFORMATION.—The Association shall obtain such information and make and keep such records as the Secretary

of the Treasury may from time to time prescribe concerning—

‘‘(i) the financial risk to the Association resulting

from the activities of any associated person, to the

extent such activities are reasonably likely to have

a material impact on the financial condition of the

Association, including the Association’s capital ratio,

the Association’s liquidity, or the Association’s ability

to conduct and finance the Association’s operations;

and

‘‘(ii) the Association’s policies, procedures, and systems for monitoring and controlling any such financial

risk.

‘‘(B) SUMMARY REPORTS.—The Secretary of the Treasury may require summary reports of the information

described in subparagraph (A) to be filed no more frequently than quarterly. If, as a result of adverse market

conditions or based on reports provided pursuant to this

subparagraph or other available information, the Secretary

of the Treasury has concerns regarding the financial or

operational condition of the Association, the Secretary of

the Treasury may, notwithstanding the preceding sentence

and subparagraph (A), require the Association to make

reports concerning the activities of any associated person

whose business activities are reasonably likely to have

a material impact on the financial or operational condition

of the Association.

‘‘(C) SEPARATE OPERATION OF CORPORATIONS.—

‘‘(i) IN GENERAL.—The funds and assets of the

Association shall at all times be maintained separately

from the funds and assets of the Holding Company

or any subsidiary of the Holding Company and may

be used by the Association solely to carry out the

Association’s purposes and to fulfill the Association’s

obligations.

‘‘(ii) BOOKS AND RECORDS.—The Association shall

maintain books and records that clearly reflect the

assets and liabilities of the Association, separate from

the assets and liabilities of the Holding Company or

any subsidiary of the Holding Company.

‘‘(iii) CORPORATE OFFICE.—The Association shall

maintain a corporate office that is physically separate

from any office of the Holding Company or any subsidiary of the Holding Company.

‘‘(iv) DIRECTOR.—No director of the Association

who is appointed by the President pursuant to section
110 STAT. 3009–279 PUBLIC LAW 104–208—SEPT. 30, 1996

439(c)(1)(A) may serve as a director of the Holding

Company.

‘‘(v) ONE OFFICER REQUIREMENT.—At least one officer of the Association shall be an officer solely of the

Association.

‘‘(vi) TRANSACTIONS.—Transactions between the

Association and the Holding Company or any subsidiary of the Holding Company, including any loan servicing arrangements, shall be on terms no less favorable

to the Association than the Association could obtain

from an unrelated third party offering comparable services.

‘‘(vii) CREDIT PROHIBITION.—The Association shall

not extend credit to the Holding Company or any

subsidiary of the Holding Company nor guarantee or

provide any credit enhancement to any debt obligations

of the Holding Company or any subsidiary of the Holding Company.

‘‘(viii) AMOUNTS COLLECTED.—Any amounts collected on behalf of the Association by the Holding

Company or any subsidiary of the Holding Company

with respect to the assets of the Association, pursuant

to a servicing contract or other arrangement between

the Association and the Holding Company or any

subsidiary of the Holding Company, shall be collected

solely for the benefit of the Association and shall be

immediately deposited by the Holding Company or

such subsidiary to an account under the sole control

of the Association.

‘‘(D) ENCUMBRANCE OF ASSETS.—Notwithstanding any

Federal or State law, rule, or regulation, or legal or equitable principle, doctrine, or theory to the contrary, under

no circumstances shall the assets of the Association be

available or used to pay claims or debts of or incurred

by the Holding Company. Nothing in this subparagraph

shall be construed to limit the right of the Association

to pay dividends not otherwise prohibited under this

subparagraph or to limit any liability of the Holding Company explicitly provided for in this section.

‘‘(E) HOLDING COMPANY ACTIVITIES.—After the reorganization effective date and prior to the dissolution date,

all business activities of the Holding Company shall be

conducted through subsidiaries of the Holding Company.

‘‘(F) CONFIDENTIALITY.—Any information provided by

the Association pursuant to this section shall be subject

to the same confidentiality obligations contained in section

439(r)(12).

‘‘(G) DEFINITION.—For purposes of this paragraph, the

term ‘associated person’ means any person, other than

a natural person, who is directly or indirectly controlling,

controlled by, or under common control with, the Association.

‘‘(9) ISSUANCE OF STOCK WARRANTS.—

‘‘(A) IN GENERAL.—On the reorganization effective date,

the Holding Company shall issue to the District of Columbia Financial Responsibility and Management Assistance

Authority a number of stock warrants that is equal to
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–280

one percent of the outstanding shares of the Association,

determined as of the last day of the fiscal quarter preceding

the date of enactment of this section, with each stock

warrant entitling the holder of the stock warrant to purchase from the Holding Company one share of the registered common stock of the Holding Company or the Holding Company’s successors or assigns, at any time on or

before September 30, 2008. The exercise price for such

warrants shall be an amount equal to the average closing

price of the common stock of the Association for the 20

business days prior to the date of enactment of this section

on the exchange or market which is then the primary

exchange or market for the common stock of the Association. The number of shares of Holding Company common

stock subject to each stock warrant and the exercise price

of each stock warrant shall be adjusted as necessary to

reflect—

‘‘(i) the conversion of Association common stock

into Holding Company common stock as part of the

plan of reorganization approved by the Association’s

shareholders; and

‘‘(ii) any issuance or sale of stock (including issuance or sale of treasury stock), stock split, recapitalization, reorganization, or other corporate event, if agreed

to by the Secretary of the Treasury and the Association.

‘‘(B) AUTHORITY TO SELL OR EXERCISE STOCK WARRANTS;

DEPOSIT OF PROCEEDS.—The District of Columbia Financial

Responsibility and Management Assistance Authority is

authorized to sell or exercise the stock warrants described

in subparagraph (A). The District of Columbia Financial

Responsibility and Management Assistance Authority shall

deposit into the account established under section 3(e) of

the Student Loan Marketing Association Reorganization

Act of 1996 amounts collected from the sale and proceeds

resulting from the exercise of the stock warrants pursuant

to this subparagraph.

‘‘(10) RESTRICTIONS ON TRANSFER OF ASSOCIATION SHARES

AND BANKRUPTCY OF ASSOCIATION.—After the reorganization

effective date, the Holding Company shall not sell, pledge,

or otherwise transfer the outstanding shares of the Association,

or agree to or cause the liquidation of the Association or cause

the Association to file a petition for bankruptcy under title

11, United States Code, without prior approval of the Secretary

of the Treasury and the Secretary of Education.

‘‘(d) TERMINATION OF THE ASSOCIATION.—In the event the shareholders of the Association approve a plan of reorganization under

subsection (b), the Association shall dissolve, and the Association’s

separate existence shall terminate on September 30, 2008, after

discharge of all outstanding debt obligations and liquidation pursuant to this subsection. The Association may dissolve pursuant to

this subsection prior to such date by notifying the Secretary of

Education and the Secretary of the Treasury of the Association’s

intention to dissolve, unless within 60 days after receipt of such

notice the Secretary of Education notifies the Association that the

Association continues to be needed to serve as a lender of last

resort pursuant to section 439(q) or continues to be needed to

purchase loans under an agreement with the Secretary described
110 STAT. 3009–281 PUBLIC LAW 104–208—SEPT. 30, 1996

in subsection (c)(6). On the dissolution date, the Association shall

take the following actions:

‘‘(1) ESTABLISHMENT OF A TRUST.—The Association shall,

under the terms of an irrevocable trust agreement that is

in form and substance satisfactory to the Secretary of the

Treasury, the Association and the appointed trustee, irrevocably

transfer all remaining obligations of the Association to the

trust and irrevocably deposit or cause to be deposited into

such trust, to be held as trust funds solely for the benefit

of holders of the remaining obligations, money or direct noncallable obligations of the United States or any agency thereof

for which payment the full faith and credit of the United

States is pledged, maturing as to principal and interest in

such amounts and at such times as are determined by the

Secretary of the Treasury to be sufficient, without consideration

of any significant reinvestment of such interest, to pay the

principal of, and interest on, the remaining obligations in

accordance with their terms. To the extent the Association

cannot provide money or qualifying obligations in the amount

required, the Holding Company shall be required to transfer

money or qualifying obligations to the trust in the amount

necessary to prevent any deficiency.

‘‘(2) USE OF TRUST ASSETS.—All money, obligations, or

financial assets deposited into the trust pursuant to this subsection shall be applied by the trustee to the payment of the

remaining obligations assumed by the trust.

‘‘(3) OBLIGATIONS NOT TRANSFERRED TO THE TRUST.—The

Association shall make proper provision for all other obligations

of the Association not transferred to the trust, including the

repurchase or redemption, or the making of proper provision

for the repurchase or redemption, of any preferred stock of

the Association outstanding. Any obligations of the Association

which cannot be fully satisfied shall become liabilities of the

Holding Company as of the date of dissolution.

‘‘(4) TRANSFER OF REMAINING ASSETS.—After compliance

with paragraphs (1) and (3), any remaining assets of the trust

shall be transferred to the Holding Company or any subsidiary

of the Holding Company, as directed by the Holding Company.

‘‘(e) OPERATION OF THE HOLDING COMPANY.—In the event the

shareholders of the Association approve the plan of reorganization

under subsection (b), the following provisions shall apply beginning

on the reorganization effective date:

‘‘(1) HOLDING COMPANY BOARD OF DIRECTORS.—The number

of members and composition of the Board of Directors of the

Holding Company shall be determined as set forth in the Holding Company’s charter or like instrument (as amended from

time to time) or bylaws (as amended from time to time) and

as permitted under the laws of the jurisdiction of the Holding

Company’s incorporation.

‘‘(2) HOLDING COMPANY NAME.—The names of the Holding

Company and any subsidiary of the Holding Company (other

than the Association)—

‘‘(A) may not contain the name ‘Student Loan Marketing Association’; and

‘‘(B) may contain, to the extent permitted by applicable

State or District of Columbia law, ‘Sallie Mae’ or variations

thereof, or such other names as the Board of Directors
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–282

of the Association or the Holding Company deems appropriate.

‘‘(3) USE OF SALLIE MAE NAME.—Subject to paragraph (2),

the Association may assign to the Holding Company, or any

subsidiary of the Holding Company, the ‘Sallie Mae’ name

as a trademark or service mark, except that neither the Holding

Company nor any subsidiary of the Holding Company (other

than the Association or any subsidiary of the Association) may

use the ‘Sallie Mae’ name on, or to identify the issuer of,

any debt obligation or other security offered or sold by the

Holding Company or any subsidiary of the Holding Company

(other than a debt obligation or other security issued to and

held by the Holding Company or any subsidiary of the Holding

Company). The Association shall remit to the account established under section 3(e) of the Student Loan Marketing

Association Reorganization Act of 1996, $5,000,000, within 60

days of the reorganization effective date as compensation for

the right to assign the ‘Sallie Mae’ name as a trademark

or service mark.

‘‘(4) DISCLOSURE REQUIRED.—Until 3 years after the dissolution date, the Holding Company, and any subsidiary of

the Holding Company (other than the Association), shall prominently display—

‘‘(A) in any document offering the Holding Company’s

securities, a statement that the obligations of the Holding

Company and any subsidiary of the Holding Company are

not guaranteed by the full faith and credit of the United

States; and

‘‘(B) in any advertisement or promotional materials

which use the ‘Sallie Mae’ name or mark, a statement

that neither the Holding Company nor any subsidiary of

the Holding Company is a government-sponsored enterprise

or instrumentality of the United States.

‘‘(f) STRICT CONSTRUCTION.—Except as specifically set forth in

this section, nothing in this section shall be construed to limit

the authority of the Association as a federally chartered corporation,

or of the Holding Company as a State or District of Columbia

chartered corporation.

‘‘(g) RIGHT TO ENFORCE.—The Secretary of Education or the

Secretary of the Treasury, as appropriate, may request that the

Attorney General bring an action in the United States District

Court for the District of Columbia for the enforcement of any

provision of this section, or may, under the direction or control

of the Attorney General, bring such an action. Such court shall

have jurisdiction and power to order and require compliance with

this section.

‘‘(h) DEADLINE FOR REORGANIZATION EFFECTIVE DATE.—This

section shall be of no further force and effect in the event that

the reorganization effective date does not occur on or before 18

months after the date of enactment of this section.

‘‘(i) DEFINITIONS.—For purposes of this section:

‘‘(1) ASSOCIATION.—The term ‘Association’ means the Student Loan Marketing Association.

‘‘(2) DISSOLUTION DATE.—The term ‘dissolution date’ means

September 30, 2008, or such earlier date as the Secretary

of Education permits the transfer of remaining obligations in

accordance with subsection (d).
110 STAT. 3009–283 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(3) HOLDING COMPANY.—The term ‘Holding Company’

means the new business corporation established pursuant to

this section by the Association under the laws of any State

of the United States or the District of Columbia for the purposes

of the reorganization and restructuring described in subsection

(a).

‘‘(4) REMAINING OBLIGATIONS.—The term ‘remaining obligations’ means the debt obligations of the Association outstanding

as of the dissolution date.

‘‘(5) REMAINING PROPERTY.—The term ‘remaining property’

means the following assets and liabilities of the Association

which are outstanding as of the reorganization effective date:

‘‘(A) Debt obligations issued by the Association.

‘‘(B) Contracts relating to interest rate, currency, or

commodity positions or protections.

‘‘(C) Investment securities owned by the Association.

‘‘(D) Any instruments, assets, or agreements described

in section 439(d) (including, without limitation, all student

loans and agreements relating to the purchase and sale

of student loans, forward purchase and lending commitments, warehousing advances, academic facilities obligations, letters of credit, standby bond purchase agreements,

liquidity agreements, and student loan revenue bonds or

other loans).

‘‘(E) Except as specifically prohibited by this section

or section 439, any other nonmaterial assets or liabilities

of the Association which the Association’s Board of Directors determines to be necessary or appropriate to the

Association’s operations.

‘‘(6) REORGANIZATION.—The term ‘reorganization’ means

the restructuring event or events (including any merger event)

giving effect to the Holding Company structure described in

subsection (a).

‘‘(7) REORGANIZATION EFFECTIVE DATE.—The term ‘reorganization effective date’ means the effective date of the reorganization as determined by the Board of Directors of the Association, which shall not be earlier than the date that shareholder

approval is obtained pursuant to subsection (b) and shall not

be later than the date that is 18 months after the date of

enactment of this section.

‘‘(8) SUBSIDIARY.—The term ‘subsidiary’ means one or more

direct or indirect subsidiaries.’’.

(b) TECHNICAL AMENDMENTS.—

(1) ELIGIBLE LENDER.—

(A) AMENDMENTS TO THE HIGHER EDUCATION ACT.—

(i) DEFINITION OF ELIGIBLE LENDER.—Section

435(d)(1)(F) of the Higher Education Act of 1965 (20

U.S.C. 1085(d)(1)(F)) is amended by inserting after

‘‘Student Loan Marketing Association’’ the following:

‘‘or the Holding Company of the Student Loan Marketing Association, including any subsidiary of the Holding Company, created pursuant to section 440,’’.

(ii) DEFINITION OF ELIGIBLE LENDER AND FEDERAL

CONSOLIDATION LOANS.—Sections 435(d)(1)(G) and

428C(a)(1)(A) of such Act (20 U.S.C. 1085(d)(1)(G) and

1078–3(a)(1)(A)) are each amended by inserting after

‘‘Student Loan Marketing Association’’ the following:
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–284

‘‘or the Holding Company of the Student Loan Marketing Association, including any subsidiary of the Holding Company, created pursuant to section 440’’.

(B) EFFECTIVE DATE.—The amendments made by this

paragraph shall take effect on the reorganization effective

date as defined in section 440(h) of the Higher Education

Act of 1965 (as added by subsection (a)).

(2) ENFORCEMENT OF SAFETY AND SOUNDNESS REQUIREMENTS.—Section 439(r) of the Higher Education Act of 1965

(20 U.S.C. 1087–2(r)) is amended—

(A) in the first sentence of paragraph (12), by inserting

‘‘or the Association’s associated persons’’ after ‘‘by the

Association’’;

(B) by redesignating paragraph (13) as paragraph (15);

and

(C) by inserting after paragraph (12) the following

new paragraph:

‘‘(13) ENFORCEMENT OF SAFETY AND SOUNDNESS REQUIREMENTS.—The Secretary of Education or the Secretary of the

Treasury, as appropriate, may request that the Attorney General bring an action in the United States District Court for

the District of Columbia for the enforcement of any provision

of this section, or may, under the direction or control of the

Attorney General, bring such an action. Such court shall have

jurisdiction and power to order and require compliance with

this section.’’.

(3) FINANCIAL SAFETY AND SOUNDNESS.—Section 439(r) of

the Higher Education Act of 1965 (20 U.S.C. 1087–2(r)) is

further amended—

(A) in paragraph (1)—

(i) by striking ‘‘and’’ at the end of subparagraph

(A);

(ii) by striking the period at the end of subparagraph (B) and inserting ‘‘; and’’; and

(iii) by adding at the end the following new

subparagraph:

‘‘(C)(i) financial statements of the Association within

45 days of the end of each fiscal quarter; and

‘‘(ii) reports setting forth the calculation of the capital

ratio of the Association within 45 days of the end of each

fiscal quarter.’’;

(B) in paragraph (2)—

(i) by striking clauses (i) and (ii) of subparagraph

(A) and inserting the following:

‘‘(i) appoint auditors or examiners to conduct audits

of the Association from time to time to determine the

condition of the Association for the purpose of assessing

the Association’s financial safety and soundness and to

determine whether the requirements of this section and

section 440 are being met; and

‘‘(ii) obtain the services of such experts as the Secretary

of the Treasury determines necessary and appropriate, as

authorized by section 3109 of title 5, United States Code,

to assist in determining the condition of the Association

for the purpose of assessing the Association’s financial

safety and soundness, and to determine whether the

20 USC 1078–3

note.
110 STAT. 3009–285 PUBLIC LAW 104–208—SEPT. 30, 1996

requirements of this section and section 440 are being

met.’’; and

(ii) by adding at the end the following new

subparagraph:

‘‘(D) ANNUAL ASSESSMENT.—

‘‘(i) IN GENERAL.—For each fiscal year beginning on

or after October 1, 1996, the Secretary of the Treasury

may establish and collect from the Association an assessment (or assessments) in amounts sufficient to provide

for reasonable costs and expenses of carrying out the duties

of the Secretary of the Treasury under this section and

section 440 during such fiscal year. In no event may the

total amount so assessed exceed, for any fiscal year,

$800,000, adjusted for each fiscal year ending after September 30, 1997, by the ratio of the Consumer Price Index

for All Urban Consumers (issued by the Bureau of Labor

Statistics) for the final month of the fiscal year preceding

the fiscal year for which the assessment is made to the

Consumer Price Index for All Urban Consumers for

September 1997.

‘‘(ii) DEPOSIT.—Amounts collected from assessments

under this subparagraph shall be deposited in an account

within the Treasury of the United States as designated

by the Secretary of the Treasury for that purpose. The

Secretary of the Treasury is authorized and directed to

pay out of any funds available in such account the reasonable costs and expenses of carrying out the duties of the

Secretary of the Treasury under this section and section

440. None of the funds deposited into such account shall

be available for any purpose other than making payments

for such costs and expenses.’’; and

(C) by inserting after paragraph (13) (as added by

paragraph (2)(C)) the following new paragraph:

‘‘(14) ACTIONS BY SECRETARY.—

‘‘(A) IN GENERAL.—For any fiscal quarter ending after

January 1, 2000, the Association shall have a capital ratio

of at least 2.25 percent. The Secretary of the Treasury

may, whenever such capital ratio is not met, take any

one or more of the actions described in paragraph (7),

except that—

‘‘(i) the capital ratio to be restored pursuant to

paragraph (7)(D) shall be 2.25 percent; and

‘‘(ii) if the relevant capital ratio is in excess of

or equal to 2 percent for such quarter, the Secretary

of the Treasury shall defer taking any of the actions

set forth in paragraph (7) until the next succeeding

quarter and may then proceed with any such action

only if the capital ratio of the Association remains

below 2.25 percent.

‘‘(B) APPLICABILITY.—The provisions of paragraphs (4),

(5), (6), (8), (9), (10), and (11) shall be of no further application to the Association for any period after January 1,

2000.’’.

(4) INFORMATION REQUIRED; DIVIDENDS.—Section 439(r) of

the Higher Education Act of 1965 (20 U.S.C. 1087–2(r)) is

further amended—
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–286

(A) by adding at the end of paragraph (2) (as amended

in paragraph (3)(B)(ii)) the following new subparagraph:

‘‘(E) OBLIGATION TO OBTAIN, MAINTAIN, AND REPORT

INFORMATION.—

‘‘(i) IN GENERAL.—The Association shall obtain such

information and make and keep such records as the Secretary of the Treasury may from time to time prescribe

concerning—

‘‘(I) the financial risk to the Association resulting

from the activities of any associated person, to the

extent such activities are reasonably likely to have

a material impact on the financial condition of the

Association, including the Association’s capital ratio,

the Association’s liquidity, or the Association’s ability

to conduct and finance the Association’s operations;

and

‘‘(II) the Association’s policies, procedures, and systems for monitoring and controlling any such financial

risk.

‘‘(ii) SUMMARY REPORTS.—The Secretary of the Treasury may require summary reports of such information to

be filed no more frequently than quarterly. If, as a result

of adverse market conditions or based on reports provided

pursuant to this subparagraph or other available information, the Secretary of the Treasury has concerns regarding

the financial or operational condition of the Association,

the Secretary of the Treasury may, notwithstanding the

preceding sentence and clause (i), require the Association

to make reports concerning the activities of any associated

person, whose business activities are reasonably likely to

have a material impact on the financial or operational

condition of the Association.

‘‘(iii) DEFINITION.—For purposes of this subparagraph,

the term ‘associated person’ means any person, other than

a natural person, directly or indirectly controlling, controlled by, or under common control with the Association.’’;

and

(B) by adding at the end the following new paragraphs:

‘‘(16) DIVIDENDS.—The Association may pay dividends in

the form of cash or noncash distributions so long as at the

time of the declaration of such dividends, after giving effect

to the payment of such dividends as of the date of such declaration by the Board of Directors of the Association, the Association’s capital would be in compliance with the capital standards

set forth in this section.

‘‘(17) CERTIFICATION PRIOR TO PAYMENT OF DIVIDEND.—

Prior to the payment of any dividend under paragraph (16),

the Association shall certify to the Secretary of the Treasury

that the payment of the dividend will be made in compliance

with paragraph (16) and shall provide copies of all calculations

needed to make such certification.’’.

(c) SUNSET OF THE ASSOCIATION’S CHARTER IF NO REORGANIZATION PLAN OCCURS.—Section 439 of the Higher Education Act of

1965 (20 U.S.C. 1087–2) is amended by adding at the end the

following new subsection:

‘‘(s) CHARTER SUNSET.—
110 STAT. 3009–287 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(1) APPLICATION OF PROVISIONS.—This subsection applies

beginning 18 months and one day after the date of enactment

of this subsection if no reorganization of the Association occurs

in accordance with the provisions of section 440.

‘‘(2) SUNSET PLAN.—

‘‘(A) PLAN SUBMISSION BY THE ASSOCIATION.—Not later

than July 1, 2007, the Association shall submit to the

Secretary of the Treasury and to the Chairman and Ranking Member of the Committee on Labor and Human

Resources of the Senate and the Chairman and Ranking

Member of the Committee on Economic and Educational

Opportunities of the House of Representatives, a detailed

plan for the orderly winding up, by July 1, 2013, of business

activities conducted pursuant to the charter set forth in

this section. Such plan shall—

‘‘(i) ensure that the Association will have adequate

assets to transfer to a trust, as provided in this subsection, to ensure full payment of remaining obligations

of the Association in accordance with the terms of

such obligations;

‘‘(ii) provide that all assets not used to pay liabilities shall be distributed to shareholders as provided

in this subsection; and

‘‘(iii) provide that the operations of the Association

shall remain separate and distinct from that of any

entity to which the assets of the Association are transferred.

‘‘(B) AMENDMENT OF THE PLAN BY THE ASSOCIATION.—

The Association shall from time to time amend such plan

to reflect changed circumstances, and submit such amendments to the Secretary of the Treasury and to the Chairman and Ranking Minority Member of the Committee on

Labor and Human Resources of the Senate and Chairman

and Ranking Minority Member of the Committee on Economic and Educational Opportunities of the House of Representatives. In no case may any amendment extend the

date for full implementation of the plan beyond the dissolution date provided in paragraph (3).

‘‘(C) PLAN MONITORING.—The Secretary of the Treasury

shall monitor the Association’s compliance with the plan

and shall continue to review the plan (including any amendments thereto).

‘‘(D) AMENDMENT OF THE PLAN BY THE SECRETARY OF

THE TREASURY.—The Secretary of the Treasury may require

the Association to amend the plan (including any amendments to the plan), if the Secretary of the Treasury deems

such amendments necessary to ensure full payment of all

obligations of the Association.

‘‘(E) IMPLEMENTATION BY THE ASSOCIATION.—The

Association shall promptly implement the plan (including

any amendments to the plan, whether such amendments

are made by the Association or are required to be made

by the Secretary of the Treasury).

‘‘(3) DISSOLUTION OF THE ASSOCIATION.—The Association

shall dissolve and the Association’s separate existence shall

terminate on July 1, 2013, after discharge of all outstanding

debt obligations and liquidation pursuant to this subsection.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–288

The Association may dissolve pursuant to this subsection prior

to such date by notifying the Secretary of Education and the

Secretary of the Treasury of the Association’s intention to dissolve, unless within 60 days of receipt of such notice the Secretary of Education notifies the Association that the Association

continues to be needed to serve as a lender of last resort

pursuant to subsection (q) or continues to be needed to purchase

loans under an agreement with the Secretary described in

paragraph (4)(A). On the dissolution date, the Association shall

take the following actions:

‘‘(A) ESTABLISHMENT OF A TRUST.—The Association

shall, under the terms of an irrevocable trust agreement

in form and substance satisfactory to the Secretary of the

Treasury, the Association, and the appointed trustee, irrevocably transfer all remaining obligations of the Association

to a trust and irrevocably deposit or cause to be deposited

into such trust, to be held as trust funds solely for the

benefit of holders of the remaining obligations, money or

direct noncallable obligations of the United States or any

agency thereof for which payment the full faith and credit

of the United States is pledged, maturing as to principal

and interest in such amounts and at such times as are

determined by the Secretary of the Treasury to be sufficient, without consideration of any significant reinvestment

of such interest, to pay the principal of, and interest on,

the remaining obligations in accordance with their terms.

‘‘(B) USE OF TRUST ASSETS.—All money, obligations,

or financial assets deposited into the trust pursuant to

this subsection shall be applied by the trustee to the payment of the remaining obligations assumed by the trust.

Upon the fulfillment of the trustee’s duties under the trust,

any remaining assets of the trust shall be transferred to

the persons who, at the time of the dissolution, were the

shareholders of the Association, or to the legal successors

or assigns of such persons.

‘‘(C) OBLIGATIONS NOT TRANSFERRED TO THE TRUST.—

The Association shall make proper provision for all other

obligations of the Association, including the repurchase

or redemption, or the making of proper provision for the

repurchase or redemption, of any preferred stock of the

Association outstanding.

‘‘(D) TRANSFER OF REMAINING ASSETS.—After compliance with subparagraphs (A) and (C), the Association shall

transfer to the shareholders of the Association any remaining assets of the Association.

‘‘(4) RESTRICTIONS RELATING TO WINDING UP.—

‘‘(A) RESTRICTIONS ON NEW BUSINESS ACTIVITY OR

ACQUISITION OF ASSETS BY THE ASSOCIATION.—

‘‘(i) IN GENERAL.—Beginning on July 1, 2009, the

Association shall not engage in any new business

activities or acquire any additional program assets

(including acquiring assets pursuant to contractual

commitments) described in subsection (d) other than

in connection with the Association—

‘‘(I) serving as a lender of last resort pursuant

to subsection (q); and
110 STAT. 3009–289 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(II) purchasing loans insured under this part,

if the Secretary, with the approval of the Secretary

of the Treasury, enters into an agreement with

the Association for the continuation or resumption

of the Association’s secondary market purchase

program because the Secretary determines there

is inadequate liquidity for loans made under this

part.

‘‘(ii) AGREEMENT.—The Secretary is authorized to

enter into an agreement described in subclause (II)

of clause (i) with the Association covering such secondary market activities. Any agreement entered into

under such subclause shall cover a period of 12 months,

but may be renewed if the Secretary determines that

liquidity remains inadequate. The fee provided under

subsection (h)(7) shall not apply to loans acquired

under any such agreement with the Secretary.

‘‘(B) ISSUANCE OF DEBT OBLIGATIONS DURING THE WIND

UP PERIOD; ATTRIBUTES OF DEBT OBLIGATIONS.—The

Association shall not issue debt obligations which mature

later than July 1, 2013, except in connection with serving

as a lender of last resort pursuant to subsection (q) or

with purchasing loans under an agreement with the Secretary as described in subparagraph (A). Nothing in this

subsection shall modify the attributes accorded the debt

obligations of the Association by this section, regardless

of whether such debt obligations are transferred to a trust

in accordance with paragraph (3).

‘‘(C) USE OF ASSOCIATION NAME.—The Association may

not transfer or permit the use of the name ‘Student Loan

Marketing Association’, ‘Sallie Mae’, or any variation

thereof, to or by any entity other than a subsidiary of

the Association.’’.

(d) REPEALS.—

(1) IN GENERAL.—Sections 439 of the Higher Education

Act of 1965 (20 U.S.C. 1087–2) and 440 of such Act (as added

by subsection (a) of this section) are repealed.

(2) EFFECTIVE DATE.—The repeals made by paragraph (1)

shall be effective one year after—

(A) the date on which all of the obligations of the

trust established under section 440(d)(1) of the Higher

Education Act of 1965 (as added by subsection (a)) have

been extinguished, if a reorganization occurs in accordance

with section 440 of such Act; or

(B) the date on which all of the obligations of the

trust established under subsection 439(s)(3)(A) of such Act

(as added by subsection (c)) have been extinguished, if

a reorganization does not occur in accordance with section

440 of such Act.

(e) ASSOCIATION NAMES.—Upon dissolution in accordance with

section 439(s) of the Higher Education Act of 1965 (20 U.S.C.

1087–2), the names ‘‘Student Loan Marketing Association’’, ‘‘Sallie

Mae’’, and any variations thereof may not be used by any entity

engaged in any business similar to the business conducted pursuant

to section 439 of such Act (as such section was in effect on the

date of enactment of this Act) without the approval of the Secretary

of the Treasury.

20 USC 1087–2

note.

20 USC 1087–2

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–290

(f) RIGHT TO ENFORCE.—The Secretary of Education or the

Secretary of the Treasury, as appropriate, may request that the

Attorney General bring an action in the United States District

Court for the District of Columbia for the enforcement of any

provision of subsection (e), or may, under the direction or control

of the Attorney General, bring such an action. Such court shall

have jurisdiction and power to order and require compliance with

subsection (e).

SEC. 603. CONNIE LEE PRIVATIZATION.

(a) STATUS OF THE CORPORATION AND CORPORATE POWERS;

OBLIGATIONS NOT FEDERALLY GUARANTEED.—

(1) STATUS OF THE CORPORATION.—The Corporation shall

not be an agency, instrumentality, or establishment of the

United States Government, nor a Government corporation, nor

a Government controlled corporation, as such terms are defined

in section 103 of title 5, United States Code. No action under

section 1491 of title 28, United States Code (commonly known

as the Tucker Act) shall be allowable against the United States

based on the actions of the Corporation.

(2) CORPORATE POWERS.—The Corporation shall be subject

to the provisions of this section, and, to the extent not inconsistent with this section, to the District of Columbia Business

Corporation Act (or the comparable law of another State, if

applicable). The Corporation shall have the powers conferred

upon a corporation by the District of Columbia Business Corporation Act (or such other applicable State law) as from time

to time in effect in order to conduct the Corporation’s affairs

as a private, for-profit corporation and to carry out the Corporation’s purposes and activities incidental thereto. The Corporation shall have the power to enter into contracts, to execute

instruments, to incur liabilities, to provide products and services, and to do all things as are necessary or incidental to

the proper management of the Corporation’s affairs and the

efficient operation of a private, for-profit business.

(3) LIMITATION ON OWNERSHIP OF STOCK.—

(A) STUDENT LOAN MARKETING ASSOCIATION.—The Student Loan Marketing Association shall not increase its

share of the ownership of the Corporation in excess of

42 percent of the shares of stock of the Corporation

outstanding on the date of enactment of this Act. The

Student Loan Marketing Association shall not control the

operation of the Corporation, except that the Student Loan

Marketing Association may participate in the election of

directors as a shareholder, and may continue to exercise

the Student Loan Marketing Association’s right to appoint

directors under section 754 of the Higher Education Act

of 1965 (20 U.S.C. 1132f–3) as long as that section is

in effect.

(B) PROHIBITION.—Until such time as the Secretary

of the Treasury sells the stock of the Corporation owned

by the Secretary of Education pursuant to subsection (c),

the Student Loan Marketing Association shall not provide

financial support or guarantees to the Corporation.

(C) FINANCIAL SUPPORT OR GUARANTEES.—After the

Secretary of the Treasury sells the stock of the Corporation

owned by the Secretary of Education pursuant to subsection

20 USC

1132f–10.

20 USC 1087–2

note.
110 STAT. 3009–291 PUBLIC LAW 104–208—SEPT. 30, 1996

(c), the Student Loan Marketing Association may provide

financial support or guarantees to the Corporation, if such

support or guarantees are subject to terms and conditions

that are no more advantageous to the Corporation than

the terms and conditions the Student Loan Marketing

Association provides to other entities, including, where

applicable, other monoline financial guaranty corporations

in which the Student Loan Marketing Association has no

ownership interest.

(4) NO FEDERAL GUARANTEE.—

(A) OBLIGATIONS INSURED BY THE CORPORATION.—

(i) FULL FAITH AND CREDIT OF THE UNITED

STATES.—No obligation that is insured, guaranteed, or

otherwise backed by the Corporation shall be deemed

to be an obligation that is guaranteed by the full

faith and credit of the United States.

(ii) STUDENT LOAN MARKETING ASSOCIATION.—No

obligation that is insured, guaranteed, or otherwise

backed by the Corporation shall be deemed to be an

obligation that is guaranteed by the Student Loan

Marketing Association.

(iii) SPECIAL RULE.—This paragraph shall not

affect the determination of whether such obligation

is guaranteed for purposes of Federal income taxes.

(B) SECURITIES OFFERED BY THE CORPORATION.—No

debt or equity securities of the Corporation shall be deemed

to be guaranteed by the full faith and credit of the United

States.

(5) DEFINITION.—The term ‘‘Corporation’’ as used in this

section means the College Construction Loan Insurance

Association as in existence on the day before the date of enactment of this Act, and any successor corporation.

(b) RELATED PRIVATIZATION REQUIREMENTS.—

(1) NOTICE REQUIREMENTS.—

(A) IN GENERAL.—During the six-year period following

the date of enactment of this Act, the Corporation shall

include, in each of the Corporation’s contracts for the insurance, guarantee, or reinsurance of obligations, and in each

document offering debt or equity securities of the Corporation, a prominent statement providing notice that—

(i) such obligations or such securities, as the case

may be, are not obligations of the United States, nor

are such obligations or such securities, as the case

may be, guaranteed in any way by the full faith and

credit of the United States; and

(ii) the Corporation is not an instrumentality of

the United States.

(B) ADDITIONAL NOTICE.—During the five-year period

following the sale of stock pursuant to subsection (c)(1),

in addition to the notice requirements in subparagraph

(A), the Corporation shall include, in each of the contracts

and documents referred to in such subparagraph, a prominent statement providing notice that the United States

is not an investor in the Corporation.

(2) CORPORATE CHARTER.—The Corporation’s charter shall

be amended as necessary and without delay to conform to

the requirements of this section.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–292

(3) CORPORATE NAME.—The name of the Corporation, or

of any direct or indirect subsidiary thereof, may not contain

the term ‘‘College Construction Loan Insurance Association’’,

or any substantially similar variation thereof.

(4) ARTICLES OF INCORPORATION.—The Corporation shall

amend the Corporation’s articles of incorporation without delay

to reflect that one of the purposes of the Corporation shall

be to guarantee, insure, and reinsure bonds, leases, and other

evidences of debt of educational institutions, including Historically Black Colleges and Universities and other academic

institutions which are ranked in the lower investment grade

category using a nationally recognized credit rating system.

(5) REQUIREMENTS UNTIL STOCK SALE.—Notwithstanding

subsection (d), the requirements of sections 754 and 760 of

the Higher Education Act of 1965 (20 U.S.C. 1132f–3 and

1132f–9), as such sections were in effect on the day before

the date of enactment of this Act, shall continue to be effective

until the day immediately following the date of closing of the

purchase of the Secretary of Education’s stock (or the date

of closing of the final purchase, in the case of multiple transactions) pursuant to subsection (c)(1) of this Act.

(c) SALE OF FEDERALLY OWNED STOCK.—

(1) PURCHASE BY THE CORPORATION.—The Secretary of the

Treasury shall sell and the Corporation shall purchase, within

90 days after the date of enactment of this Act, the stock

of the Corporation held by the Secretary of Education at a

price determined by the binding, independent appraisal of a

nationally recognized financial firm, except that the 90-day

period may be extended by mutual agreement of the Secretary

of the Treasury and the Corporation to not more than 150

days after the date of enactment of this Act. The appraiser

shall be jointly selected by the Secretary of the Treasury and

the Corporation. In the event that the Secretary of the Treasury

and the Corporation cannot agree on the appraiser, then the

Secretary of the Treasury and the Corporation shall name

an independent third party to select the appraiser.

(2) REIMBURSEMENT OF COSTS AND EXPENSES OF SALE.—

The Secretary of the Treasury shall be reimbursed from the

proceeds of the sale of the stock under this subsection for

all reasonable costs and expenses related to such sale, except

that one-half of all reasonable costs and expenses relating

to the independent appraisal under paragraph (1) shall be

borne by the Corporation.

(3) DEPOSIT INTO ACCOUNT.—Amounts collected from the

sale of stock pursuant to this subsection that are not used

to reimburse the Secretary of the Treasury pursuant to paragraph (2) shall be deposited into the account established under

subsection (e).

(4) ASSISTANCE BY THE CORPORATION.—The Corporation

shall provide such assistance as the Secretary of the Treasury

and the Secretary of Education may require to facilitate the

sale of the stock under this subsection.

(5) REPORT TO CONGRESS.—Not later than 6 months after

the date of enactment of this Act, the Secretary of the Treasury

shall report to the appropriate committees of Congress on the

completion and terms of the sale of stock of the Corporation

pursuant to this subsection.
110 STAT. 3009–293 PUBLIC LAW 104–208—SEPT. 30, 1996

(d) REPEAL OF STATUTORY RESTRICTIONS AND RELATED PROVI- SIONS.—Part D of title VII of the Higher Education Act of 1965

(20 U.S.C. 1132f et seq.) is repealed.

(e) ESTABLISHMENT OF ACCOUNT.—

(1) IN GENERAL.—Notwithstanding any other provision of

law, the District of Columbia Financial Responsibility and

Management Assistance Authority shall establish an account

to receive—

(A) amounts collected from the sale and proceeds

resulting from the exercise of stock warrants pursuant

to section 440(c)(9) of the Higher Education Act of 1965;

(B) amounts and proceeds remitted as compensation

for the right to assign the ‘‘Sallie Mae’’ name as a trademark or service mark pursuant to section 440(e)(3) of the

Higher Education Act of 1965; and

(C) amounts and proceeds collected from the sale of

the stock of the Corporation and deposited pursuant to

subsection (c)(3).

(2) AMOUNTS AND PROCEEDS.—

(A) AMOUNTS AND PROCEEDS RELATING TO SALLIE

MAE.—The amounts and proceeds described in subparagraphs (A) and (B) of paragraph (1) shall be used to finance

public elementary and secondary school facility construction and repair within the District of Columbia or to carry

out the District of Columbia School Reform Act of 1995.

(B) AMOUNTS AND PROCEEDS RELATING TO CONNIE

LEE.—The amounts and proceeds described in subparagraph (C) of paragraph (1) shall be used to finance public

elementary and secondary school facility construction and

repair within the District of Columbia.

SEC. 604. DISCRIMINATION IN SECONDARY MARKETS PROHIBITED.

Part B of title IV of the Higher Education Act of 1965 (20

U.S.C. 1071 et seq.) is amended by adding after section 440 (as

added by section 602) the following new section:

‘‘SEC. 440A. DISCRIMINATION IN SECONDARY MARKETS PROHIBITED.

‘‘The Student Loan Marketing Association (and, if the Association is privatized under section 440, any successor entity functioning

as a secondary market for loans under this part, including the

Holding Company described in such section) shall not engage

directly or indirectly in any pattern or practice that results in

a denial of a borrower’s access to loans under this part because

of the borrower’s race, sex, color, religion, national origin, age,

disability status, income, attendance at a particular eligible institution, length of the borrower’s educational program, or the borrower’s

academic year at an eligible institution.’’.

TITLE VII—MUSEUM AND LIBRARY SERVICES ACT OF 1996

SECTION 701. SHORT TITLE.

This title may be cited as the ‘‘Museum and Library Services

Act of 1996’’.

SEC. 702. MUSEUM AND LIBRARY SERVICES.

The Museum Services Act (20 U.S.C. 961 et seq.) is amended

to read as follows:

Museum and

Library Services

Act of 1996.

20 USC 9101

note.

20 USC 1087–4.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–294

‘‘TITLE II—MUSEUM AND LIBRARY SERVICES

‘‘Subtitle A—General Provisions

‘‘SEC. 201. SHORT TITLE.

‘‘This title may be cited as the ‘Museum and Library Services

Act’.

‘‘SEC. 202. GENERAL DEFINITIONS.

‘‘As used in this title:

‘‘(1) COMMISSION.—The term ‘Commission’ means the

National Commission on Libraries and Information Science

established under section 3 of the National Commission on

Libraries and Information Sciences Act (20 U.S.C. 1502).

‘‘(2) DIRECTOR.—The term ‘Director’ means the Director

of the Institute appointed under section 204.

‘‘(3) INSTITUTE.—The term ‘Institute’ means the Institute

of Museum and Library Services established under section 203.

‘‘(4) MUSEUM BOARD.—The term ‘Museum Board’ means

the National Museum Services Board established under section

275.

‘‘SEC. 203. INSTITUTE OF MUSEUM AND LIBRARY SERVICES.

‘‘(a) ESTABLISHMENT.—There is established, within the National

Foundation on the Arts and the Humanities, an Institute of Museum

and Library Services.

‘‘(b) OFFICES.—The Institute shall consist of an Office of

Museum Services and an Office of Library Services. There shall

be a National Museum Services Board in the Office of Museum

Services.

‘‘SEC. 204. DIRECTOR OF THE INSTITUTE.

‘‘(a) APPOINTMENT.—

‘‘(1) IN GENERAL.—The Institute shall be headed by a Director, appointed by the President, by and with the advice and

consent of the Senate.

‘‘(2) TERM.—The Director shall serve for a term of 4 years.

‘‘(3) QUALIFICATIONS.—Beginning with the first individual

appointed to the position of Director after the date of enactment

of the Museum and Library Services Act of 1996, every second

individual so appointed shall be appointed from among individuals who have special competence with regard to library and

information services. Beginning with the second individual

appointed to the position of Director after the date of enactment

of the Museum and Library Services Act of 1996, every second

individual so appointed shall be appointed from among individuals who have special competence with regard to museum

services.

‘‘(b) COMPENSATION.—The Director may be compensated at the

rate provided for level III of the Executive Schedule under section

5314 of title 5, United States Code.

‘‘(c) DUTIES AND POWERS.—The Director shall perform such

duties and exercise such powers as may be prescribed by law,

including awarding financial assistance for activities described in

this title.

‘‘(d) NONDELEGATION.—The Director shall not delegate any of

the functions of the Director to any person who is not an officer

or employee of the Institute.

20 USC 9103.

20 USC 9102.

20 USC 9101.

20 USC 9101

note.

Museum and

Library Services

Act.
110 STAT. 3009–295 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(e) COORDINATION.—The Director shall ensure coordination

of the policies and activities of the Institute with the policies

and activities of other agencies and offices of the Federal

Government having interest in and responsibilities for the improvement of museums and libraries and information services.

‘‘SEC. 205. DEPUTY DIRECTORS.

‘‘The Office of Library Services shall be headed by a Deputy

Director, who shall be appointed by the Director from among

individuals who have a graduate degree in library science and

expertise in library and information services. The Office of Museum

Services shall be headed by a Deputy Director, who shall be

appointed by the Director from among individuals who have expertise in museum services.

‘‘SEC. 206. PERSONNEL.

‘‘(a) IN GENERAL.—The Director may, in accordance with

applicable provisions of title 5, United States Code, appoint and

determine the compensation of such employees as the Director

determines to be necessary to carry out the duties of the Institute.

‘‘(b) VOLUNTARY SERVICES.—The Director may accept and utilize

the voluntary services of individuals and reimburse the individuals

for travel expenses, including per diem in lieu of subsistence, in

the same amounts and to the same extent as authorized under

section 5703 of title 5, United States Code, for persons employed

intermittently in Federal Government service.

‘‘SEC. 207. CONTRIBUTIONS.

‘‘The Institute is authorized to solicit, accept, receive, and invest

in the name of the United States, gifts, bequests, or devises of

money and other property or services and to use such property

or services in furtherance of the functions of the Institute. Any

proceeds from such gifts, bequests, or devises, after acceptance

by the Institute, shall be paid by the donor or the representative

of the donor to the Director. The Director shall enter the proceeds

in a special-interest bearing account to the credit of the Institute

for the purposes specified in each case.

‘‘Subtitle B—Library Services and Technology

‘‘SEC. 211. SHORT TITLE.

‘‘This subtitle may be cited as the ‘Library Services and Technology Act’.

‘‘SEC. 212. PURPOSE.

‘‘It is the purpose of this subtitle—

‘‘(1) to consolidate Federal library service programs;

‘‘(2) to stimulate excellence and promote access to learning

and information resources in all types of libraries for individuals of all ages;

‘‘(3) to promote library services that provide all users access

to information through State, regional, national and international electronic networks;

‘‘(4) to provide linkages among and between libraries; and

‘‘(5) to promote targeted library services to people of diverse

geographic, cultural, and socioeconomic backgrounds, to individuals with disabilities, and to people with limited functional

literacy or information skills.

20 USC 9121.

Library Services

and Technology

Act.

20 USC 9101

note.

20 USC 9106.

20 USC 9105.

20 USC 9104.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–296

‘‘SEC. 213. DEFINITIONS.

‘‘As used in this subtitle:

‘‘(1) INDIAN TRIBE.—The term ‘Indian tribe’ means any

tribe, band, nation, or other organized group or community,

including any Alaska native village, regional corporation, or

village corporation, as defined in or established pursuant to

the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et

seq.), which is recognized by the Secretary of the Interior as

eligible for the special programs and services provided by the

United States to Indians because of their status as Indians.

‘‘(2) LIBRARY.—The term ‘library’ includes—

‘‘(A) a public library;

‘‘(B) a public elementary school or secondary school

library;

‘‘(C) an academic library;

‘‘(D) a research library, which for the purposes of this

subtitle means a library that—

‘‘(i) makes publicly available library services and

materials suitable for scholarly research and not otherwise available to the public; and

‘‘(ii) is not an integral part of an institution of

higher education; and

‘‘(E) a private library, but only if the State in which

such private library is located determines that the library

should be considered a library for purposes of this subtitle.

‘‘(3) LIBRARY CONSORTIUM.—The term ‘library consortium’

means any local, statewide, regional, interstate, or international

cooperative association of library entities which provides for

the systematic and effective coordination of the resources of

school, public, academic, and special libraries and information

centers, for improved services for the clientele of such library

entities.

‘‘(4) STATE.—The term ‘State’, unless otherwise specified,

includes each of the 50 States of the United States, the District

of Columbia, the Commonwealth of Puerto Rico, the United

States Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the Republic of the

Marshall Islands, the Federated States of Micronesia, and the

Republic of Palau.

‘‘(5) STATE LIBRARY ADMINISTRATIVE AGENCY.—The term

‘State library administrative agency’ means the official agency

of a State charged by the law of the State with the extension

and development of public library services throughout the State.

‘‘(6) STATE PLAN.—The term ‘State plan’ means the document which gives assurances that the officially designated State

library administrative agency has the fiscal and legal authority

and capability to administer all aspects of this subtitle, provides

assurances for establishing the State’s policies, priorities, criteria, and procedures necessary to the implementation of all

programs under this subtitle, submits copies for approval as

required by regulations promulgated by the Director, identifies

a State’s library needs, and sets forth the activities to be

taken toward meeting the identified needs supported with the

assistance of Federal funds made available under this subtitle.

‘‘SEC. 214. AUTHORIZATION OF APPROPRIATIONS.

‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—

20 USC 9123.

20 USC 9122.
110 STAT. 3009–297 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(1) IN GENERAL.—There are authorized to be appropriated $150,000,000 for fiscal year 1997 and such sums as may be

necessary for each of the fiscal years 1998 through 2002 to

carry out this subtitle.

‘‘(2) TRANSFER.—The Secretary of Education shall—

‘‘(A) transfer promptly to the Director any funds appropriated under the authority of paragraph (1), to enable

the Director to carry out this subtitle; and

‘‘(B) not exercise any authority concerning the administration of this title other than the transfer described in

subparagraph (A).

‘‘(b) FORWARD FUNDING.—

‘‘(1) IN GENERAL.—To the end of affording the responsible

Federal, State, and local officers adequate notice of available

Federal financial assistance for carrying out ongoing library

activities and projects, appropriations for grants, contracts, or

other payments under any program under this subtitle are

authorized to be included in the appropriations Act for the

fiscal year preceding the fiscal year during which such activities

and projects shall be carried out.

‘‘(2) ADDITIONAL AUTHORIZATION OF APPROPRIATIONS.—In

order to effect a transition to the timing of appropriation action

authorized by subsection (a), the application of this section

may result in the enactment, in a fiscal year, of separate

appropriations for a program under this subtitle (whether in

the same appropriations Act or otherwise) for two consecutive

fiscal years.

‘‘(c) ADMINISTRATION.—Not more than 3 percent of the funds

appropriated under this section for a fiscal year may be used

to pay for the Federal administrative costs of carrying out this

subtitle.

‘‘CHAPTER 1—BASIC PROGRAM REQUIREMENTS

‘‘SEC. 221. RESERVATIONS AND ALLOTMENTS.

‘‘(a) RESERVATIONS.—

‘‘(1) IN GENERAL.—From the amount appropriated under

the authority of section 214 for any fiscal year, the Director—

‘‘(A) shall reserve 11⁄2 percent to award grants in

accordance with section 261; and

‘‘(B) shall reserve 4 percent to award national leadership grants or contracts in accordance with section 262.

‘‘(2) SPECIAL RULE.—If the funds reserved pursuant to paragraph (1)(B) for a fiscal year have not been obligated by the

end of such fiscal year, then such funds shall be allotted in

accordance with subsection (b) for the fiscal year succeeding

the fiscal year for which the funds were so reserved.

‘‘(b) ALLOTMENTS.—

‘‘(1) IN GENERAL.—From the sums appropriated under the

authority of section 214 and not reserved under subsection

(a) for any fiscal year, the Director shall award grants from

minimum allotments, as determined under paragraph (3), to

each State. Any sums remaining after minimum allotments

are made for such year shall be allotted in the manner set

forth in paragraph (2).

‘‘(2) REMAINDER.—From the remainder of any sums appropriated under the authority of section 214 that are not reserved

20 USC 9131.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–298

under subsection (a) and not allotted under paragraph (1) for

any fiscal year, the Director shall award grants to each State

in an amount that bears the same relation to such remainder

as the population of the State bears to the population of all

States.

‘‘(3) MINIMUM ALLOTMENT.—

‘‘(A) IN GENERAL.—For the purposes of this subsection,

the minimum allotment for each State shall be $340,000,

except that the minimum allotment shall be $40,000 in

the case of the United States Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana

Islands, the Republic of the Marshall Islands, the Federated

States of Micronesia, and the Republic of Palau.

‘‘(B) RATABLE REDUCTIONS.—If the sum appropriated

under the authority of section 214 and not reserved under

subsection (a) for any fiscal year is insufficient to fully

satisfy the aggregate of the minimum allotments for all

States for that purpose for such year, each of such minimum allotments shall be reduced ratably.

‘‘(C) SPECIAL RULE.—

‘‘(i) IN GENERAL.—Notwithstanding any other

provision of this subsection and using funds allotted

for the Republic of the Marshall Islands, the Federated

States of Micronesia, and the Republic of Palau under

this subsection, the Director shall award grants to

Guam, American Samoa, the Commonwealth of the

Northern Mariana Islands, the Republic of the Marshall Islands, the Federated States of Micronesia, or

the Republic of Palau to carry out activities described

in this subtitle in accordance with the provisions of

this subtitle that the Director determines are not

inconsistent with this subparagraph.

‘‘(ii) AWARD BASIS.—The Director shall award

grants pursuant to clause (i) on a competitive basis

and pursuant to recommendations from the Pacific

Region Educational Laboratory in Honolulu, Hawaii.

‘‘(iii) TERMINATION OF ELIGIBILITY.—Notwithstanding any other provision of law, the Republic of the

Marshall Islands, the Federated States of Micronesia,

and the Republic of Palau shall not receive any funds

under this subtitle for any fiscal year that begins after

September 30, 2001.

‘‘(iv) ADMINISTRATIVE COSTS.—The Director may

provide not more than 5 percent of the funds made

available for grants under this subparagraph to pay

the administrative costs of the Pacific Region Educational Laboratory regarding activities assisted under

this subparagraph.

‘‘(4) DATA.—The population of each State and of all the

States shall be determined by the Director on the basis of

the most recent data available from the Bureau of the Census.

‘‘SEC. 222. ADMINISTRATION.

‘‘(a) IN GENERAL.—Not more than 4 percent of the total amount

of funds received under this subtitle for any fiscal year by a State

may be used for administrative costs.

20 USC 9132.
110 STAT. 3009–299 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(b) CONSTRUCTION.—Nothing in this section shall be construed

to limit spending for evaluation costs under section 224(c) from

sources other than this subtitle.

‘‘SEC. 223. PAYMENTS; FEDERAL SHARE; AND MAINTENANCE OF

EFFORT REQUIREMENTS.

‘‘(a) PAYMENTS.—Subject to appropriations provided pursuant

to section 214, the Director shall pay to each State library administrative agency having a State plan approved under section 224

the Federal share of the cost of the activities described in the

State plan.

‘‘(b) FEDERAL SHARE.—

‘‘(1) IN GENERAL.—The Federal share shall be 66 percent.

‘‘(2) NON-FEDERAL SHARE.—The non-Federal share of payments shall be provided from non-Federal, State, or local

sources.

‘‘(c) MAINTENANCE OF EFFORT.—

‘‘(1) STATE EXPENDITURES.—

‘‘(A) REQUIREMENT.—

‘‘(i) IN GENERAL.—The amount otherwise payable

to a State for a fiscal year pursuant to an allotment

under this chapter shall be reduced if the level of

State expenditures, as described in paragraph (2), for

the previous fiscal year is less than the average of

the total of such expenditures for the 3 fiscal years

preceding that previous fiscal year. The amount of

the reduction in allotment for any fiscal year shall

be equal to the amount by which the level of such

State expenditures for the fiscal year for which the

determination is made is less than the average of

the total of such expenditures for the 3 fiscal years

preceding the fiscal year for which the determination

is made.

‘‘(ii) CALCULATION.—Any decrease in State

expenditures resulting from the application of subparagraph (B) shall be excluded from the calculation of

the average level of State expenditures for any 3-year

period described in clause (i).

‘‘(B) DECREASE IN FEDERAL SUPPORT.—If the amount

made available under this subtitle for a fiscal year is less

than the amount made available under this subtitle for

the preceding fiscal year, then the expenditures required

by subparagraph (A) for such preceding fiscal year shall

be decreased by the same percentage as the percentage

decrease in the amount so made available.

‘‘(2) LEVEL OF STATE EXPENDITURES.—The level of State

expenditures for the purposes of paragraph (1) shall include

all State dollars expended by the State library administrative

agency for library programs that are consistent with the purposes of this subtitle. All funds included in the maintenance

of effort calculation under this subsection shall be expended

during the fiscal year for which the determination is made,

and shall not include capital expenditures, special one-time

project costs, or similar windfalls.

‘‘(3) WAIVER.—The Director may waive the requirements

of paragraph (1) if the Director determines that such a waiver

20 USC 9133.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–300

would be equitable due to exceptional or uncontrollable circumstances such as a natural disaster or a precipitous and

unforeseen decline in the financial resources of the State.

‘‘SEC. 224. STATE PLANS.

‘‘(a) STATE PLAN REQUIRED.—

‘‘(1) IN GENERAL.—In order to be eligible to receive a grant

under this subtitle, a State library administrative agency shall

submit a State plan to the Director not later than April 1,

1997.

‘‘(2) DURATION.—The State plan shall cover a period of

5 fiscal years.

‘‘(3) REVISIONS.—If a State library administrative agency

makes a substantive revision to its State plan, then the State

library administrative agency shall submit to the Director an

amendment to the State plan containing such revision not

later than April 1 of the fiscal year preceding the fiscal year

for which the amendment will be effective.

‘‘(b) CONTENTS.—The State plan shall—

‘‘(1) establish goals, and specify priorities, for the State

consistent with the purposes of this subtitle;

‘‘(2) describe activities that are consistent with the goals

and priorities established under paragraph (1), the purposes

of this subtitle, and section 231, that the State library administrative agency will carry out during such year using such

grant;

‘‘(3) describe the procedures that such agency will use

to carry out the activities described in paragraph (2);

‘‘(4) describe the methodology that such agency will use

to evaluate the success of the activities established under paragraph (2) in achieving the goals and meeting the priorities

described in paragraph (1);

‘‘(5) describe the procedures that such agency will use

to involve libraries and library users throughout the State

in policy decisions regarding implementation of this subtitle;

and

‘‘(6) provide assurances satisfactory to the Director that

such agency will make such reports, in such form and containing such information, as the Director may reasonably require

to carry out this subtitle and to determine the extent to which

funds provided under this subtitle have been effective in carrying out the purposes of this subtitle.

‘‘(c) EVALUATION AND REPORT.—Each State library administrative agency receiving a grant under this subtitle shall independently

evaluate, and report to the Director regarding, the activities assisted

under this subtitle, prior to the end of the 5-year plan.

‘‘(d) INFORMATION.—Each library receiving assistance under

this subtitle shall submit to the State library administrative agency

such information as such agency may require to meet the requirements of subsection (c).

‘‘(e) APPROVAL.—

‘‘(1) IN GENERAL.—The Director shall approve any State

plan under this subtitle that meets the requirements of this

subtitle and provides satisfactory assurances that the provisions

of such plan will be carried out.

20 USC 9134.
110 STAT. 3009–301 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(2) PUBLIC AVAILABILITY.—Each State library administrative agency receiving a grant under this subtitle shall make

the State plan available to the public.

‘‘(3) ADMINISTRATION.—If the Director determines that the

State plan does not meet the requirements of this section,

the Director shall—

‘‘(A) immediately notify the State library administrative agency of such determination and the reasons for

such determination;

‘‘(B) offer the State library administrative agency the

opportunity to revise its State plan;

‘‘(C) provide technical assistance in order to assist the

State library administrative agency in meeting the requirements of this section; and

‘‘(D) provide the State library administrative agency

the opportunity for a hearing.

‘‘CHAPTER 2—LIBRARY PROGRAMS

‘‘SEC. 231. GRANTS TO STATES.

‘‘(a) IN GENERAL.—Of the funds provided to a State library

administrative agency under section 214, such agency shall expend,

either directly or through subgrants or cooperative agreements,

at least 96 percent of such funds for—

‘‘(1)(A) establishing or enhancing electronic linkages among

or between libraries;

‘‘(B) electronically linking libraries with educational, social,

or information services;

‘‘(C) assisting libraries in accessing information through

electronic networks;

‘‘(D) encouraging libraries in different areas, and encouraging different types of libraries, to establish consortia and share

resources; or

‘‘(E) paying costs for libraries to acquire or share computer

systems and telecommunications technologies; and

‘‘(2) targeting library and information services to persons

having difficulty using a library and to underserved urban

and rural communities, including children (from birth through

age 17) from families with incomes below the poverty line

(as defined by the Office of Management and Budget and

revised annually in accordance with section 673(2) of the

Community Services Block Grant Act (42 U.S.C. 9902(2))

applicable to a family of the size involved.

‘‘(b) SPECIAL RULE.—Each State library administrative agency

receiving funds under this chapter may apportion the funds available for the purposes described in subsection (a) between the two

purposes described in paragraphs (1) and (2) of such subsection,

as appropriate, to meet the needs of the individual State.

‘‘CHAPTER 3—ADMINISTRATIVE PROVISIONS

‘‘Subchapter A—State Requirements

‘‘SEC. 251. STATE ADVISORY COUNCILS.

‘‘Each State desiring assistance under this subtitle may establish a State advisory council which is broadly representative of

the library entities in the State, including public, school, academic,

20 USC 9151.

20 USC 9141.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–302

special, and institutional libraries, and libraries serving individuals

with disabilities.

‘‘Subchapter B—Federal Requirements

‘‘SEC. 261. SERVICES FOR INDIAN TRIBES.

‘‘From amounts reserved under section 221(a)(1)(A) for any

fiscal year the Director shall award grants to organizations primarily serving and representing Indian tribes to enable such

organizations to carry out the activities described in section 231.

‘‘SEC. 262. NATIONAL LEADERSHIP GRANTS OR CONTRACTS.

‘‘(a) IN GENERAL.—From the amounts reserved under section

221(a)(1)(B) for any fiscal year the Director shall establish and

carry out a program awarding national leadership grants or contracts to enhance the quality of library services nationwide and

to provide coordination between libraries and museums. Such grants

or contracts shall be used for activities that may include—

‘‘(1) education and training of persons in library and

information science, particularly in areas of new technology

and other critical needs, including graduate fellowships,

traineeships, institutes, or other programs;

‘‘(2) research and demonstration projects related to the

improvement of libraries, education in library and information

science, enhancement of library services through effective and

efficient use of new technologies, and dissemination of information derived from such projects;

‘‘(3) preservation of digitization of library materials and

resources, giving priority to projects emphasizing coordination,

avoidance of duplication, and access by researchers beyond

the institution or library entity undertaking the project; and

‘‘(4) model programs demonstrating cooperative efforts

between libraries and museums.

‘‘(b) GRANTS OR CONTRACTS.—

‘‘(1) IN GENERAL.—The Director may carry out the activities

described in subsection (a) by awarding grants to, or entering

into contracts with, libraries, agencies, institutions of higher

education, or museums, where appropriate.

‘‘(2) COMPETITIVE BASIS.—Grants and contracts under this

section shall be awarded on a competitive basis.

‘‘(c) SPECIAL RULE.—The Director shall make every effort

to ensure that activities assisted under this section are administered

by appropriate library and museum professionals or experts.

‘‘SEC. 263. STATE AND LOCAL INITIATIVES.

‘‘Nothing in this subtitle shall be construed to interfere with

State and local initiatives and responsibility in the conduct of

library services. The administration of libraries, the selection of

personnel and library books and materials, and insofar as consistent

with the purposes of this subtitle, the determination of the best

uses of the funds provided under this subtitle, shall be reserved

for the States and their local subdivisions.

‘‘Subtitle C—Museum Services

‘‘SEC. 271. PURPOSE.

‘‘It is the purpose of this subtitle—

20 USC 9171.

20 USC 9163.

20 USC 9162.

20 USC 9161.
110 STAT. 3009–303 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(1) to encourage and assist museums in their educational

role, in conjunction with formal systems of elementary, secondary, and postsecondary education and with programs of nonformal education for all age groups;

‘‘(2) to assist museums in modernizing their methods and

facilities so that the museums are better able to conserve

the cultural, historic, and scientific heritage of the United

States; and

‘‘(3) to ease the financial burden borne by museums as

a result of their increasing use by the public.

‘‘SEC. 272. DEFINITIONS.

‘‘As used in this subtitle:

‘‘(1) MUSEUM.—The term ‘museum’ means a public or private nonprofit agency or institution organized on a permanent

basis for essentially educational or aesthetic purposes, that

utilizes a professional staff, owns or utilizes tangible objects,

cares for the tangible objects, and exhibits the tangible objects

to the public on a regular basis.

‘‘(2) STATE.—The term ‘State’ means each of the 50 States

of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam,

American Samoa, the Commonwealth of the Northern Mariana

Islands, the Republic of the Marshall Islands, the Federated

States of Micronesia, and the Republic of Palau.

‘‘SEC. 273. MUSEUM SERVICES ACTIVITIES.

‘‘(a) GRANTS.—The Director, subject to the policy direction

of the Museum Board, may make grants to museums to pay for

the Federal share of the cost of increasing and improving museum

services, through such activities as—

‘‘(1) programs that enable museums to construct or install

displays, interpretations, and exhibitions in order to improve

museum services provided to the public;

‘‘(2) assisting museums in developing and maintaining

professionally trained or otherwise experienced staff to meet

the needs of the museums;

‘‘(3) assisting museums in meeting the administrative costs

of preserving and maintaining the collections of the museums,

exhibiting the collections to the public, and providing educational programs to the public through the use of the collections;

‘‘(4) assisting museums in cooperating with each other in

developing traveling exhibitions, meeting transportation costs,

and identifying and locating collections available for loan;

‘‘(5) assisting museums in the conservation of their collections;

‘‘(6) developing and carrying out specialized programs for

specific segments of the public, such as programs for urban

neighborhoods, rural areas, Indian reservations, and penal and

other State institutions; and

‘‘(7) model programs demonstrating cooperative efforts

between libraries and museums.

‘‘(b) CONTRACTS AND COOPERATIVE AGREEMENTS.— ‘‘(1) PROJECTS TO STRENGTHEN MUSEUM SERVICES.—The

Director, subject to the policy direction of the Museum Board,

is authorized to enter into contracts and cooperative agreements

with appropriate entities, as determined by the Director, to

20 USC 9173.

20 USC 9172.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–304

pay for the Federal share of enabling the entities to undertake

projects designed to strengthen museum services, except that

any contracts or cooperative agreements entered into pursuant

to this subsection shall be effective only to such extent or

in such amounts as are provided in appropriations Acts.

‘‘(2) LIMITATION ON AMOUNT.—The aggregate amount of

financial assistance made available under this subsection for

a fiscal year shall not exceed 15 percent of the amount appropriated under this subtitle for such fiscal year.

‘‘(3) OPERATIONAL EXPENSES.—No financial assistance may

be provided under this subsection to pay for operational

expenses.

‘‘(c) FEDERAL SHARE.—

‘‘(1) 50 PERCENT.—Except as provided in paragraph (2),

the Federal share described in subsection (a) and (b) shall

be not more than 50 percent.

‘‘(2) GREATER THAN 50 PERCENT.—The Director may use

not more than 20 percent of the funds made available under

this subtitle for a fiscal year to make grants under subsection

(a), or enter into contracts or agreements under subsection

(b), for which the Federal share may be greater than 50 percent.

‘‘(d) REVIEW AND EVALUATION.—The Director shall establish

procedures for reviewing and evaluating grants, contracts, and

cooperative agreements made or entered into under this subtitle. Procedures for reviewing grant applications or contracts

and cooperative agreements for financial assistance under this

subtitle shall not be subject to any review outside of the

Institute.

‘‘SEC. 274. AWARD.

‘‘The Director, with the advice of the Museum Board, may

annually award a National Award for Museum Service to outstanding museums that have made significant contributions in service

to their communities.

‘‘SEC. 275. NATIONAL MUSEUM SERVICES BOARD.

‘‘(a) ESTABLISHMENT.—There is established in the Institute a

National Museum Services Board.

‘‘(b) COMPOSITION AND QUALIFICATIONS.—

‘‘(1) COMPOSITION.—The Museum Board shall consist of

the Director and 14 members appointed by the President, by

and with the advice and consent of the Senate.

‘‘(2) QUALIFICATIONS.—The appointive members of the

Museum Board shall be selected from among citizens of the

United States—

‘‘(A) who are members of the general public;

‘‘(B) who are or have been affiliated with—

‘‘(i) resources that, collectively, are broadly representative of the curatorial, conservation, educational,

and cultural resources of the United States; or

‘‘(ii) museums that, collectively, are broadly representative of various types of museums, including

museums relating to science, history, technology, art,

zoos, and botanical gardens; and

‘‘(C) who are recognized for their broad knowledge,

expertise, or experience in museums or commitment to

museums.

20 USC 9175.

20 USC 9174.
110 STAT. 3009–305 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(3) GEOGRAPHIC AND OTHER REPRESENTATION.—Members

of the Museum Board shall be appointed to reflect persons

from various geographic regions of the United States. The

Museum Board may not include, at any time, more than 3

members from a single State. In making such appointments,

the President shall give due regard to equitable representation

of women, minorities, and persons with disabilities who are

involved with museums.

‘‘(c) TERMS.—

‘‘(1) IN GENERAL.—Each appointive member of the Museum

Board shall serve for a term of 5 years, except that—

‘‘(A) of the members first appointed, 3 shall serve for

terms of 5 years, 3 shall serve for terms of 4 years, 3

shall serve for terms of 3 years, 3 shall serve for terms

of 2 years, and 2 shall serve for terms of 1 year, as designated by the President at the time of nomination for

appointment; and

‘‘(B) any member appointed to fill a vacancy shall

serve for the remainder of the term for which the predecessor of the member was appointed.

‘‘(2) REAPPOINTMENT.—No member of the Museum Board

who has been a member for more than 7 consecutive years

shall be eligible for reappointment.

‘‘(3) SERVICE UNTIL SUCCESSOR TAKES OFFICE.—Notwithstanding any other provision of this subsection, a member

of the Museum Board shall serve after the expiration of the

term of the member until the successor to the member takes

office.

‘‘(d) DUTIES AND POWERS.—The Museum Board shall have the

responsibility to advise the Director on general policies with respect

to the duties, powers, and authority of the Institute relating to

museum services, including general policies with respect to—

‘‘(1) financial assistance awarded under this subtitle for

museum services; and

‘‘(2) projects described in section 262(a)(4).

‘‘(e) CHAIRPERSON.—The President shall designate 1 of the

appointive members of the Museum Board as Chairperson of the

Museum Board.

‘‘(f) MEETINGS.—

‘‘(1) IN GENERAL.—The Museum Board shall meet—

‘‘(A) not less than 3 times each year, including—

‘‘(i) not less than 2 times each year separately;

and

‘‘(ii) not less than 1 time each year in a joint

meeting with the Commission, convened for purposes

of making general policies with respect to financial

assistance for projects described in section 262(a)(4);

and

‘‘(B) at the call of the Director.

‘‘(2) VOTE.—All decisions by the Museum Board with

respect to the exercise of the duties and powers of the Museum

Board shall be made by a majority vote of the members of

the Museum Board who are present. All decisions by the

Commission and the Museum Board with respect to the policies

described in paragraph (1)(A)(ii) shall be made by a 2⁄3 majority

vote of the total number of the members of the Commission

and the Museum Board who are present.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–306

‘‘(g) QUORUM.—A majority of the members of the Museum Board

shall constitute a quorum for the conduct of business at official

meetings of the Museum Board, but a lesser number of members

may hold hearings. A majority of the members of the Commission

and a majority of the members of the Museum Board shall constitute a quorum for the conduct of business at official joint meetings

of the Commission and the Museum Board.

‘‘(h) COMPENSATION AND TRAVEL EXPENSES.—

‘‘(1) COMPENSATION.—Each member of the Museum Board

who is not an officer or employee of the Federal Government

may be compensated at a rate to be fixed by the President,

but not to exceed the daily equivalent of the maximum rate

authorized for a position above grade GS–15 of the General

Schedule under section 5108 of title 5, United States Code,

for each day (including travel time) during which such member

is engaged in the performance of the duties of the Museum

Board. All members of the Museum Board who are officers

or employees of the Federal Government shall serve without

compensation in addition to compensation received for their

services as officers or employees of the Federal Government.

‘‘(2) TRAVEL EXPENSES.—The members of the Museum

Board may be allowed travel expenses, including per diem

in lieu of subsistence, in the same amounts and to the same

extent, as authorized under section 5703 of title 5, United

States Code, for persons employed intermittently in Federal

Government service.

‘‘(i) COORDINATION.—The Museum Board, with the advice of

the Director, shall take steps to ensure that the policies and activities of the Institute are coordinated with other activities of the

Federal Government.

‘‘SEC. 276. AUTHORIZATION OF APPROPRIATIONS.

‘‘(a) GRANTS.—For the purpose of carrying out this subtitle,

there are authorized to be appropriated to the Director $28,700,000

for the fiscal year 1997, and such sums as may be necessary

for each of the fiscal years 1998 through 2002.

‘‘(b) ADMINISTRATION.—Not more than 10 percent of the funds

appropriated under this section for a fiscal year may be used

to pay for the administrative costs of carrying out this subtitle.

‘‘(c) SUMS REMAINING AVAILABLE.—Sums appropriated pursuant

to subsection (a) for any fiscal year shall remain available for

obligation until expended.’’.

SEC. 703. NATIONAL COMMISSION ON LIBRARIES AND INFORMATION

SCIENCE.

(a) FUNCTIONS.—Section 5 of the National Commission on

Libraries and Information Science Act (20 U.S.C. 1504) is amended—

(1) by redesignating subsections (b) through (d) as subsections (d) through (f), respectively; and

(2) by inserting after subsection (a) the following:

‘‘(b) The Commission shall have the responsibility to advise

the Director of the Institute of Museum and Library Services on

general policies with respect to the duties, powers, and authority

of the Institute of Museum and Library Services relating to library

services, including—

‘‘(1) general policies with respect to—

20 USC 9176.
110 STAT. 3009–307 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(A) financial assistance awarded under the Museum

and Library Services Act for library services; and

‘‘(B) projects described in section 262(a)(4) of such Act;

and

‘‘(2) measures to ensure that the policies and activities

of the Institute of Museum and Library Services are coordinated

with other activities of the Federal Government.

‘‘(c)(1) The Commission shall meet not less than 1 time each

year in a joint meeting with the National Museum Services Board,

convened for purposes of providing advice on general policy with

respect to financial assistance for projects described in section

262(a)(4) of such Act.

‘‘(2) All decisions by the Commission and the National Museum

Services Board with respect to the advice on general policy described

in paragraph (1) shall be made by a 2⁄3 majority vote of the total

number of the members of the Commission and the National

Museum Services Board who are present.

‘‘(3) A majority of the members of the Commission and a majority of the members of the National Museum Services Board shall

constitute a quorum for the conduct of business at official joint

meetings of the Commission and the National Museum Services

Board.’’.

(b) MEMBERSHIP.—Section 6 of the National Commission on

Libraries and Information Science Act (20 U.S.C. 1505) is amended—

(1) in subsection (a)—

(A) in the first sentence, by striking ‘‘Librarian of Congress’’ and inserting ‘‘Librarian of Congress, the Director

of the Institute of Museum and Library Services (who

shall serve as an ex officio, nonvoting member),’’;

(B) in the second sentence—

(i) by striking ‘‘special competence or interest in’’

and inserting ‘‘special competence in or knowledge of;

and

(ii) by inserting before the period the following:

‘‘and at least one other of whom shall be knowledgeable

with respect to the library and information service

and science needs of the elderly’’;

(C) in the third sentence, by inserting ‘‘appointive’’

before ‘‘members’’; and

(D) in the last sentence, by striking ‘‘term and at

least’’ and all that follows and inserting ‘‘term.’’; and

(2) in subsection (b), by striking ‘‘the rate specified’’ and

all that follows through ‘‘and while’’ and inserting ‘‘the daily

equivalent of the maximum rate authorized for a position above

grade GS–15 of the General Schedule under section 5108 of

title 5, United States Code, for each day (including traveltime) during which the members are engaged in the business

of the Commission. While’’.

SEC. 704. TRANSFER OF FUNCTIONS FROM INSTITUTE OF MUSEUM

SERVICES.

(a) DEFINITIONS.—For purposes of this section, unless otherwise

provided or indicated by the context—

(1) the term ‘‘Federal agency’’ has the meaning given to

the term ‘‘agency’’ by section 551(1) of title 5, United States

Code;

20 USC 9102

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–308

(2) the term ‘‘function’’ means any duty, obligation, power,

authority, responsibility, right, privilege, activity, or program;

and

(3) the term ‘‘office’’ includes any office, administration,

agency, institute, unit, organizational entity, or component

thereof.

(b) TRANSFER OF FUNCTIONS FROM THE INSTITUTE OF MUSEUM

SERVICES AND THE LIBRARY PROGRAM OFFICE.—There are transferred to the Director of the Institute of Museum and Library

Services established under section 203 of the Museum and Library

Services Act—

(1) all functions that the Director of the Institute of

Museum Services exercised before the date of enactment of

this section (including all related functions of any officer or

employee of the Institute of Museum Services); and

(2) all functions that the Director of Library Programs

in the Office of Educational Research and Improvement in

the Department of Education exercised before the date of enactment of this section and any related function of any officer

or employee of the Department of Education.

(c) 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 subsection (b).

(d) DELEGATION AND ASSIGNMENT.—Except where otherwise

expressly prohibited by law or otherwise provided by this section,

the Director of the Institute of Museum and Library Services may

delegate any of the functions transferred to the Director of the

Institute of Museum and Library Services by this section and any

function transferred or granted to such Director of the Institute

of Museum and Library Services after the effective date of this

section to such officers and employees of the Institute of Museum

and Library Services as the Director of the Institute of Museum

and Library Services may designate, and may authorize successive

redelegations of such functions as may be necessary or appropriate,

except that any delegation of any such functions with respect to

libraries shall be made to the Deputy Director of the Office of

Library Services and with respect to museums shall be made to

the Deputy Director of the Office of Museum Services. No delegation

of functions by the Director of the Institute of Museum and Library

Services under this section or under any other provision of this

section shall relieve such Director of the Institute of Museum and

Library Services of responsibility for the administration of such

functions.

(e) REORGANIZATION.—The Director of the Institute of Museum

and Library Services may allocate or reallocate any function transferred under subsection (b) among the officers of the Institute

of Museum and Library Services, and may establish, consolidate,

alter, or discontinue such organizational entities in the Institute

of Museum and Library Services as may be necessary or appropriate.

(f) RULES.—The Director of the Institute of Museum and

Library Services may prescribe, in accordance with chapters 5 and

6 of title 5, United States Code, such rules and regulations as

the Director of the Institute of Museum and Library Services determines to be necessary or appropriate to administer and manage

the functions of the Institute of Museum and Library Services.
110 STAT. 3009–309 PUBLIC LAW 104–208—SEPT. 30, 1996

(g) TRANSFER AND ALLOCATIONS OF APPROPRIATIONS AND

PERSONNEL.—Except as otherwise provided in this section, 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 section, subject to section

1531 of title 31, United States Code, shall be transferred to the

Institute of Museum and Library Services. Unexpended funds transferred pursuant to this subsection shall be used only for the purposes for which the funds were originally authorized and appropriated.

(h) 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 section, and 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 this

section. The Director of the Office of Management and Budget

shall provide for the termination of the affairs of all entities terminated by this section and for such further measures and dispositions

as may be necessary to effectuate the purposes of this section.

(i) EFFECT ON PERSONNEL.—

(1) IN GENERAL.—Except as otherwise provided by this

section, the transfer pursuant to this section 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 1 year after the date of transfer of such employee

under this section.

(2) EXECUTIVE SCHEDULE POSITIONS.—Except as otherwise

provided in this section, any person who, on the day preceding

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 the Institute of Museum and Library

Services 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.

(j) SAVINGS PROVISIONS.—

(1) CONTINUING EFFECT OF LEGAL DOCUMENTS.—All orders,

determinations, rules, regulations, permits, agreements, grants,

contracts, certificates, licenses, registrations, privileges, and

other administrative actions—

(A) that have been issued, made, granted, or allowed

to become effective by the President, any Federal agency

or official of a Federal agency, or by a court of competent

jurisdiction, in the performance of functions that are transferred under this section; and

(B) that were in effect before the effective date of

this section, or were final before the effective date of this
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–310

section and are to become effective on or after the effective

date of this section;

shall continue in effect according to their terms until modified,

terminated, superseded, set aside, or revoked in accordance with

law by the President, the Director of the Institute of Museum

and Library Services or other authorized official, a court of competent jurisdiction, or by operation of law.

(2) PROCEEDINGS NOT AFFECTED.—This section shall not affect

any proceedings, including notices of proposed rulemaking, or any

application for any license, permit, certificate, or financial assistance

pending before the Institute of Museum Services on the effective

date of this section, with respect to functions transferred by this

section. Such proceedings and applications shall be continued.

Orders shall be issued in such proceedings, appeals shall be taken

from the orders, and payments shall be made pursuant to the

orders, 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 a duly authorized official,

by a court of competent jurisdiction, or by operation of law. Nothing

in this paragraph shall be construed 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) SUITS NOT AFFECTED.—This section shall not affect suits

commenced before the effective date of this section, 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.

(4) NONABATEMENT OF ACTIONS.—No suit, action, or other

proceeding commenced by or against the Institute of Museum

Services, or by or against any individual in the official capacity

of such individual as an officer of the Institute of Museum

Services, shall abate by reason of the enactment of this section.

(5) ADMINISTRATIVE ACTIONS RELATING TO PROMULGATION

OF REGULATIONS.—Any administrative action relating to the

preparation or promulgation of a regulation by the Institute

of Museum Services relating to a function transferred under

this section may be continued by the Institute of Museum

and Library Services with the same effect as if this section

had not been enacted.

(k) TRANSITION.—The Director of the Institute of Museum and

Library Services may utilize—

(1) the services of such officers, employees, and other

personnel of the Institute of Museum Services with respect

to functions transferred to the Institute of Museum and Library

Services by this section; and

(2) funds appropriated to such functions for such period

of time as may reasonably be needed to facilitate the orderly

implementation of this section.

(l) REFERENCES.—A reference in any other Federal law, Executive order, rule, regulation, or delegation of authority, or any document of or relating to—

(1) the Director of the Institute of Museum Services with

regard to functions transferred under subsection (b), shall be

deemed to refer to the Director of the Institute of Museum

and Library Services; and
110 STAT. 3009–311 PUBLIC LAW 104–208—SEPT. 30, 1996

(2) the Institute of Museum Services with regard to functions transferred under subsection (b), shall be deemed to refer

to the Institute of Museum and Library Services.

(m) ADDITIONAL CONFORMING AMENDMENTS.—

(1) RECOMMENDED LEGISLATION.—After consultation with

the appropriate committees of Congress and the Director of

the Office of Management and Budget, the Director of the

Institute of Museum and Library Services shall prepare and

submit to the appropriate committees of Congress recommended

legislation containing technical and conforming amendments

to reflect the changes made by this section.

(2) SUBMISSION TO CONGRESS.—Not later than 6 months

after the effective date of this section, the Director of the

Institute of Museum and Library Services shall submit to the

appropriate committees of Congress the recommended legislation referred to under paragraph (1).

SEC. 705. SERVICE OF INDIVIDUALS SERVING ON DATE OF ENACTMENT.

Notwithstanding section 204 of the Museum and Library Services Act, the individual who was appointed to the position of Director

of the Institute of Museum Services under section 205 of the

Museum Services Act (as such section was in effect on the day

before the date of enactment of this Act) and who is serving in

such position on the day before the date of enactment of this

Act shall serve as the first Director of the Institute of Museum

and Library Services under section 204 of the Museum and Library

Services Act (as added by section 2 of this Act), and shall serve

at the pleasure of the President.

SEC. 706. CONSIDERATION.

Consistent with title 5, United States Code, in appointing

employees of the Office of Library Services, the Director of the

Institute of Museum and Library Services shall give strong consideration to individuals with experience in administering State-based

and national library and information services programs.

SEC. 707. TRANSITION AND TRANSFER OF FUNDS.

(a) TRANSITION.—The Director of the Office of Management

and Budget shall take appropriate measures to ensure an orderly

transition from the activities previously administered by the Director of Library Programs in the Office of Educational Research

and Improvement in the Department of Education to the activities

administered by the Institute for Museum and Library Services

under this Act. Such measures may include the transfer of appropriated funds.

(b) TRANSFER.—From any amounts available to the Secretary

of Education for salaries and expenses at the Department of Education, the Secretary of Education shall transfer to the Director

the amount of funds necessary to ensure the orderly transition

from activities previously administered by the Director of the Office

of Library Programs in the Office of Educational Research and

Improvement in the Department of Education to the activities

administered by the Institute for Museum and Library Services.

In no event shall the amount of funds transferred pursuant to

the preceding sentence be less than $200,000.

20 USC 9102

note.

20 USC 9105

note.

20 USC 9103

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–312

SEC. 708. REPEALS.

(a) LIBRARY SERVICES AND CONSTRUCTION ACT.—The Library

Services and Construction Act (20 U.S.C. 351 et seq.) is repealed.

(b) TITLE II OF THE HIGHER EDUCATION ACT OF 1965.—Title

II of the Higher Education Act of 1965 (20 U.S.C. 1021 et seq.),

relating to academic libraries and information services, is repealed.

(c) PART D OF TITLE XIII OF THE HIGHER EDUCATION AMENDMENTS OF 1986.—Part D of title XIII of the Higher Education

Amendments of 1986 (20 U.S.C. 1029 note), relating to library

resources, is repealed.

(d) SECTION 519 OF THE EDUCATION AMENDMENTS OF 1974.—

Section 519 of the Education Amendments of 1974 (20 U.S.C. 1221i)

is repealed.

(e) PART F OF THE TECHNOLOGY FOR EDUCATION ACT OF 1994.—

Part F of the Technology for Education Act of 1994 (20 U.S.C.

7001 et seq.), contained in title III of the Elementary and Secondary

Education Act of 1965, is repealed.

SEC. 709. CONFORMING AMENDMENTS.

(a) REFERENCES TO LIBRARY SERVICES AND CONSTRUCTION

ACT.—

(1) TECHNOLOGY FOR EDUCATION ACT OF 1994.—Section

3113(10) of the Technology for Education Act of 1994 (20 U.S.C.

6813(10)) is amended by striking ‘‘section 3 of the Library

Services and Construction Act;’’ and inserting ‘‘section 213 of

the Library Services and Technology Act;’’.

(2) OMNIBUS EDUCATION RECONCILIATION ACT OF 1981.—

Section 528 of the Omnibus Education Reconciliation Act of

1981 (20 U.S.C. 3489) is amended—

(A) by striking paragraph (12); and

(B) by redesignating paragraphs (13) through (15) as

paragraphs (12) through (14), respectively.

(3) ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965.—

Section 3113(10) of the Elementary and Secondary Education

Act of 1965 (20 U.S.C. 6813(10)) is amended by striking ‘‘section

3 of the Library Services and Construction Act’’ and inserting

‘‘section 213 of the Library Services and Technology Act’’.

(4) COMMUNITY IMPROVEMENT VOLUNTEER ACT OF 1994.—

Section 7305 of the Community Improvement Volunteer Act

of 1994 (40 U.S.C. 276d–3) is amended—

(A) by striking paragraph (1); and

(B) by redesignating paragraphs (2) through (6) as

paragraphs (1) through (5), respectively.

(5) APPALACHIAN REGIONAL DEVELOPMENT ACT OF 1965.—

Section 214(c) of the Appalachian Regional Development Act

of 1965 (40 U.S.C. App. 214(c)) is amended by striking ‘‘Library

Services and Construction Act;’’.

(6) DEMONSTRATION CITIES AND METROPOLITAN DEVELOPMENT ACT OF 1966.—Section 208(2) of the Demonstration Cities

and Metropolitan Development Act of 1966 (42 U.S.C. 3338(2))

is amended by striking ‘‘title II of the Library Services and

Construction Act;’’.

(7) PUBLIC LAW 87–688.—Subsection (c) of the first section

of the Act entitled ‘‘An Act to extend the application of certain

laws to American Samoa’’, approved September 25, 1962 (48

U.S.C. 1666(c)) is amended by striking ‘‘the Library Services

Act (70 Stat. 293; 20 U.S.C. 351 et seq.),’’.
110 STAT. 3009–313 PUBLIC LAW 104–208—SEPT. 30, 1996

(8) COMMUNICATIONS ACT OF 1934.—Paragraph (4) of section

254(h) of the Communications Act of 1934 (47 U.S.C. 254(h)(4))

is amended by striking ‘‘library not eligible for participation

in State-based plans for funds under title III of the Library

Services and Construction Act (20 U.S.C. 335c et seq.)’’ and

inserting ‘‘library or library consortium not eligible for assistance from a State library administrative agency under the

Library Services and Technology Act’’.

(b) REFERENCES TO INSTITUTE OF MUSEUM SERVICES.—

(1) TITLE 5, UNITED STATES CODE.—Section 5315 of title

5, United States Code, is amended by striking the following:

‘‘Director of the Institute of Museum Services.’’ and inserting the following:

‘‘Director of the Institute of Museum and Library Services.’’.

(2) DEPARTMENT OF EDUCATION ORGANIZATION ACT.—Section 301 of the Department of Education Organization Act

(20 U.S.C. 3441) is amended—

(A) in subsection (a)—

(i) by striking paragraph (5); and

(ii) by redesignating paragraphs (6) and (7) as

paragraphs (5) and (6), respectively; and

(B) in subsection (b)—

(i) by striking paragraph (4); and

(ii) by redesignating paragraphs (5) through (7)

as paragraphs (4) through (6), respectively.

(3) ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965.—

(A) Sections 2101(b), 2205(c)(1)(D), 2208(d)(1)(H)(v),

and 2209(b)(1)(C)(iv), and subsection (d)(6) and (e)(2) of

section 10401 of the Elementary and Secondary Education

Act of 1965 (20 U.S.C. 6621(b), 6645(c)(1)(D),

6648(d)(1)(H)(v), 6649(b)(1)(C)(vi), and 8091 (d)(6) and

(e)(2)) are amended by striking ‘‘the Institute of Museum

Services’’ and inserting ‘‘the Institute of Museum and

Library Services’’.

(B) Section 10412(b) of such Act (20 U.S.C. 8102(b))

is amended—

(i) in paragraph (2), by striking ‘‘the Director of

the Institute of Museum Services,’’ and inserting ‘‘the

Director of the Institute of Museum and Library Services,’’; and

(ii) in paragraph (7), by striking ‘‘the Director of

the Institute of Museum Services,’’ and inserting ‘‘the

director of the Institute of Museum and Library Services,’’.

(C) Section 10414(a)(2)(B) of such Act (20 U.S.C.

8104(a)(2)(B)) is amended by striking clause (iii) and inserting the following new clause:

‘‘(iii) the Institute of Museum and Library Services.’’.

(c) REFERENCES TO OFFICE OF LIBRARIES AND LEARNING

RESOURCES.—Section 413(b)(1) of the Department of Education

Organization Act (20 U.S.C. 3473(b)(1)) is amended—

(1) by striking subparagraph (H); and

(2) by redesignating subparagraphs (I) through (M) as subparagraphs (H) through (L), respectively.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–314

(d) REFERENCE TO STATE POSTSECONDARY REVIEW ENTITY

PROGRAMS.—Section 356(b)(2) of the Higher Education Act of 1965

(20 U.S.C. 10696(b)) is amended by striking ‘‘II,’’.

This Act may be cited as the ‘‘Departments of Labor, Health

and Human Services, and Education, and Related Agencies Appropriations Act, 1997’’.

(f) For programs, projects or activities in the Treasury, Postal

Service, and General Appropriations Act, 1997, provided as follows,

to be effective as if it had been enacted into law as the regular

appropriations Act:

AN ACT

Making appropriations for the Treasury Department, the United States Postal Service, the Executive Office of the President, and certain Independent Agencies, for

the fiscal year ending September 30, 1997, and for other purposes.

TITLE I—DEPARTMENT OF THE TREASURY

DEPARTMENTAL OFFICES

SALARIES AND EXPENSES

For necessary expenses of the Departmental Offices including

operation and maintenance of the Treasury Building and Annex;

hire of passenger motor vehicles; maintenance, repairs, and

improvements of, and purchase of commercial insurance policies

for, real properties leased or owned overseas, when necessary for

the performance of official business; not to exceed $2,900,000 for

official travel expenses; not to exceed $150,000 for official reception

and representation expenses; not to exceed $258,000 for unforeseen

emergencies of a confidential nature, to be allocated and expended

under the direction of the Secretary of the Treasury and to be

accounted for solely on his certificate; $111,760,000.

AUTOMATION ENHANCEMENT

INCLUDING TRANSFER OF FUNDS

For the development and acquisition of automatic data processing equipment, software, and services for the Department of the

Treasury, $27,100,000, of which $15,000,000 shall be available to

the United States Customs Service for the Automated Commercial

Environment project, and of which $5,600,000 shall be available

to the United States Customs Service for the International Trade

Data System: Provided, That these funds shall remain available

until September 30, 1999: Provided further, That these funds shall

be transferred to accounts and in amounts as necessary to satisfy

the requirements of the Department’s offices, bureaus, and other

organizations: Provided further, That this transfer authority shall

be in addition to any other transfer authority provided in this

Act: Provided further, That none of the funds shall be used to

support or supplement Internal Revenue Service appropriations

for Information Systems and Tax Systems Modernization: Provided

further, That of the funds appropriated for the Automated Commercial Environment, $3,475,000 may not be obligated until the

Commissioner of Customs consults with the Committees on Appropriations regarding deficiencies identified by the General Accounting Office.

Treasury

Department

Appropriations

Act, 1997.

Treasury, Postal

Service, and

General

Government

Appropriations

Act, 1997.
110 STAT. 3009–315 PUBLIC LAW 104–208—SEPT. 30, 1996

OFFICE OF INSPECTOR GENERAL

SALARIES AND EXPENSES

For necessary expenses of the Office of Inspector General in

carrying out the provisions of the Inspector General Act of 1978,

as amended, not to exceed $2,000,000 for official travel expenses;

including hire of passenger motor vehicles; and not to exceed

$100,000 for unforeseen emergencies of a confidential nature, to

be allocated and expended under the direction of the Inspector

General of the Treasury; $29,736,000.

OFFICE OF PROFESSIONAL RESPONSIBILITY

SALARIES AND EXPENSES

For necessary expenses of the Office of Professional Responsibility, including purchase and hire of passenger motor vehicles,

$1,500,000.

TREASURY BUILDINGS AND ANNEX REPAIR AND RESTORATION

INCLUDING TRANSFER OF FUNDS

For the repair, alteration, and improvement of the Treasury

Building and Annex, $28,213,000, to remain available until

expended: Provided, That funds previously made available under

this title for the Secret Service Headquarter’s building shall be

transferred to the Secret Service Acquisition, Construction,

Improvement and Related Expenses appropriation.

FINANCIAL CRIMES ENFORCEMENT NETWORK

SALARIES AND EXPENSES

For necessary expenses of the Financial Crimes Enforcement

Network, including hire of passenger motor vehicles; travel expenses

of non-Federal law enforcement personnel to attend meetings concerned with financial intelligence activities, law enforcement, and

financial regulation; not to exceed $14,000 for official reception

and representation expenses; and for assistance to Federal law

enforcement agencies, with or without reimbursement; $22,387,000:

Provided, That notwithstanding any other provision of law, the

Director of the Financial Crimes Enforcement Network may procure

up to $500,000 in specialized, unique, or novel automatic data

processing equipment, ancillary equipment, software, services, and

related resources from commercial vendors without regard to otherwise applicable procurement laws and regulations and without full

and open competition, utilizing procedures best suited under the

circumstances of the procurement to efficiently fulfill the agency’s

requirements: Provided further, That funds appropriated in this

account may be used to procure personal services contracts.

DEPARTMENT OF THE TREASURY FORFEITURE FUND

For necessary expenses of the Treasury Forfeiture Fund, as

authorized by Public Law 102–393, not to exceed $10,000,000, to

be derived from deposits in the fund: Provided, That notwithstanding any other provision of law, not to exceed $7,500,000 shall
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–316

be made available for the development of a Federal wireless communication system: Provided further, That the Secretary of the Treasury is authorized to receive all unavailable collections transferred

from the Special Forfeiture Fund established by section 6073 of

the Anti-Drug Abuse Act of 1988 (21 U.S.C. 1509) by the Director

of the Office of Drug Control Policy as a deposit into the Treasury

Forfeiture Fund (31 U.S.C. 9703(a)).

VIOLENT CRIME REDUCTION PROGRAMS

INCLUDING TRANSFER OF FUNDS

For activities authorized by Public Law 103–322, to remain

available until expended, which shall be derived from the Violent

Crime Reduction Trust Fund, as follows: (a) As authorized by section 190001(e), $89,000,000, of which $36,595,000 shall be available to the Bureau of Alcohol, Tobacco

and Firearms, of which $3,000,000 shall be available for administering the Gang Resistance Education and Training program, of which

$3,662,000 shall be available for ballistics technologies, including

the purchase, maintenance and upgrading of equipment and of

which $29,133,000 shall be available to enhance training and purchase equipment and services, and of which $800,000 shall be

available for project LEAD; of which $18,300,000 shall be available

to the Secretary as authorized by section 732 of Public Law 104–

132, as amended by Section 113 of the Fiscal Year 1997 Department

of Commerce, Justice and State, and the Judiciary, and Related

Agencies Appropriations Act; of which $1,000,000 shall be available

to the Financial Crimes Enforcement Network; of which $20,000,000

shall be available to the United States Secret Service, of which

no less than $1,400,000 shall be available for a grant for activities

related to the investigations of missing and exploited children;

and of which $13,105,000 shall be available to the Federal Drug

Control Programs, High Intensity Drug Trafficking Areas program

(b) As authorized by section 32401, $8,000,000, for disbursement through grants, cooperative agreements or contracts, to local

governments for Gang Resistance Education and Training: Provided, That notwithstanding sections 32401 and 310001, such funds

shall be allocated only to the affected State and local law enforcement and prevention organizations participating in such projects.

TREASURY FRANCHISE FUND

There is hereby established in the Treasury a franchise fund

pilot, as authorized by section 403 of Public Law 103–356, to be

available as provided in such section for expenses and equipment

necessary for the maintenance and operation of such financial and

administrative support services as the Secretary determines may

be performed more advantageously as central services: Provided,

That any inventories, equipment, and other assets pertaining to

the services to be provided by such fund, either on hand or on

order, less the related liabilities or unpaid obligations, and any

appropriations made for the purpose of providing capital, shall

be used to capitalize such fund: Provided further, That such fund

shall be reimbursed or credited with the payments, including

advanced payments, from applicable appropriations and funds available to the Department and other Federal agencies for which such

administrative and financial services are performed, at rates which

31 USC 501 note.
110 STAT. 3009–317 PUBLIC LAW 104–208—SEPT. 30, 1996

will recover all expenses of operation, including accrued leave,

depreciation of fund plant and equipment, amortization of Automatic Data Processing (ADP) software and systems, and an amount

necessary to maintain a reasonable operating reserve, as determined by the Secretary: Provided further, That such fund shall

provide services on a competitive basis: Provided further, That

an amount not to exceed 4 percent of the total annual income

to such fund may be retained in the fund for fiscal year 1997

and each fiscal year thereafter, to remain available until expended,

to be used for the acquisition of capital equipment and for the

improvement and implementation of Treasury financial management, ADP, and other support systems: Provided further, That

no later than 30 days after the end of each fiscal year, amounts

in excess of this reserve limitation shall be deposited as miscellaneous receipts in the Treasury: Provided further, That such franchise

fund pilot shall terminate pursuant to section 403(f) of Public Law

103–356.

FEDERAL LAW ENFORCEMENT TRAINING CENTER

SALARIES AND EXPENSES

For necessary expenses of the Federal Law Enforcement Training Center, as a bureau of the Department of the Treasury, including materials and support costs of Federal law enforcement basic

training; purchase (not to exceed 52 for police-type use, without

regard to the general purchase price limitation) and hire of passenger motor vehicles; for expenses for student athletic and related

activities; uniforms without regard to the general purchase price

limitation for the current fiscal year; the conducting of and participating in firearms matches and presentation of awards; for public

awareness and enhancing community support of law enforcement

training; not to exceed $9,500 for official reception and representation expenses; room and board for student interns; and services

as authorized by 5 U.S.C. 3109; $54,831,000, of which up to

$13,034,000 for materials and support costs of Federal law enforcement basic training shall remain available until September 30,

1999: Provided, That the Center is authorized to accept and use

gifts of property, both real and personal, and to accept services,

for authorized purposes, including funding of a gift of intrinsic

value which shall be awarded annually by the Director of the

Center to the outstanding student who graduated from a basic

training program at the Center during the previous fiscal year,

which shall be funded only by gifts received through the Center’s

gift authority: Provided further, That notwithstanding any other

provision of law, students attending training at any Federal Law

Enforcement Training Center site shall reside in on-Center or Center-provided housing, insofar as available and in accordance with

Center policy: Provided further, That funds appropriated in this

account shall be available, at the discretion of the Director, for:

training United States Postal Service law enforcement personnel

and Postal police officers; State and local government law enforcement training on a space-available basis; training of foreign law

enforcement officials on a space-available basis with reimbursement

of actual costs to this appropriation; training of private sector

security officials on a space-available basis with reimbursement

of actual costs to this appropriation; and travel expenses of non42 USC 3771

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–318

Federal personnel to attend course development meetings and training at the Center: Provided further, That the Center is authorized

to obligate funds in anticipation of reimbursements from agencies

receiving training at the Federal Law Enforcement Training Center,

except that total obligations at the end of the fiscal year shall

not exceed total budgetary resources available at the end of the

fiscal year: Provided further, That the Federal Law Enforcement

Training Center is authorized to provide short term medical services

for students undergoing training at the Center.

ACQUISITION, CONSTRUCTION, IMPROVEMENTS, AND RELATED

EXPENSES

For expansion of the Federal Law Enforcement Training Center,

for acquisition of necessary additional real property and facilities,

and for ongoing maintenance, facility improvements, and related

expenses, $18,884,000, to remain available until expended.

FINANCIAL MANAGEMENT SERVICE

SALARIES AND EXPENSES

For necessary expenses of the Financial Management Service,

$196,069,000, of which not to exceed $14,277,000 shall remain

available until expended for systems modernization initiatives. In

addition, $90,000, to be derived from the Oil Spill Liability Trust

Fund, to reimburse the Service for administrative and personnel

expenses for financial management of the Fund, as authorized

by section 1012 of Public Law 101–380: Provided, That none of

the funds made available for systems modernization initiatives

may not be obligated until the Commissioner of the Financial

Management Service has submitted, and the Committees on Appropriations of the House and Senate have approved, a report that

identifies, evaluates, and prioritizes all computer systems investments planned for fiscal year 1997, a milestone schedule for the

development and implementation of all projects included in the

systems investment plan, and a systems architecture plan.

BUREAU OF ALCOHOL, TOBACCO AND FIREARMS

SALARIES AND EXPENSES

For necessary expenses of the Bureau of Alcohol, Tobacco and

Firearms, including purchase of not to exceed 650 vehicles for

police-type use for replacement only and hire of passenger motor

vehicles; hire of aircraft; and services of expert witnesses at such

rates as may be determined by the Director; for payment of per

diem and/or subsistence allowances to employees where an assignment to the National Response Team during the investigation of

a bombing or arson incident requires an employee to work 16

hours or more per day or to remain overnight at his or her post

of duty; not to exceed $12,500 for official reception and representation expenses; for training of State and local law enforcement agencies with or without reimbursement, including training in connection with the training and acquisition of canines for explosives

and fire accelerants detection; provision of laboratory assistance

to State and local agencies, with or without reimbursement;

$393,971,000, of which $12,011,000, to remain available until
110 STAT. 3009–319 PUBLIC LAW 104–208—SEPT. 30, 1996

expended, shall be available for arson investigations, with priority

assigned to any arson, explosion or violence against religious institutions; which not to exceed $1,000,000 shall be available for the

payment of attorneys’ fees as provided by 18 U.S.C. 924(d)(2);

and of which $1,000,000 shall be available for the equipping of

any vessel, vehicle, equipment, or aircraft available for official use

by a State or local law enforcement agency if the conveyance will

be used in drug-related joint law enforcement operations with the

Bureau of Alcohol, Tobacco and Firearms and for the payment

of overtime salaries, travel, fuel, training, equipment, and other

similar costs of State and local law enforcement officers that are

incurred in joint operations with the Bureau of Alcohol, Tobacco

and Firearms: Provided, That no funds made available by this

or any other Act may be used to transfer the functions, missions,

or activities of the Bureau of Alcohol, Tobacco and Firearms to

other agencies or Departments in the fiscal year ending on September 30, 1997: Provided further, That no funds appropriated herein

shall be available for salaries or administrative expenses in connection with consolidating or centralizing, within the Department of

the Treasury, the records, or any portion thereof, of acquisition

and disposition of firearms maintained by Federal firearms licensees: Provided further, That no funds appropriated herein shall

be used to pay administrative expenses or the compensation of

any officer or employee of the United States to implement an

amendment or amendments to 27 CFR 178.118 or to change the

definition of ‘‘Curios or relics’’ in 27 CFR 178.11 or remove any

item from ATF Publication 5300.11 as it existed on January 1,

1994: Provided further, That none of the funds appropriated herein

shall be available to investigate or act upon applications for relief

from Federal firearms disabilities under 18 U.S.C. 925(c):Provided

further, That such funds shall be available to investigate and act

upon applications filed by corporations for relief from Federal firearms disabilities under 18 U.S.C. 925(c): Provided further, That

no funds in this Act may be used to provide ballistics imaging

equipment to any State or local authority who has obtained similar

equipment through a Federal grant or subsidy unless the State

or local authority agrees to return that equipment or to repay

that grant or subsidy to the Federal Government: Provided further,

That no funds available for separation incentive payments as

authorized by section 663 of this Act may be obligated without

the advance approval of the House and Senate Committees on

Appropriations: Provided further, That no funds under this Act

may be used to electronically retrieve information gathered pursuant to 18 U.S.C. 923(g)(4) by name or any personal identification

code.

LABORATORY FACILITIES

For necessary expenses for design of a new facility or facilities,

to house the Bureau of Alcohol, Tobacco and Firearms National

Laboratory Center and the Fire Investigation Research and Development Center, not to exceed 185,000 occupiable square feet,

$6,978,000, to remain available until expended: Provided, That

these funds shall not be available until a prospectus of authorization

for the Laboratory Facilities is approved by the House Committee

on Transportation and Infrastructure and the Senate Committee

on Environment and Public Works.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–320

UNITED STATES CUSTOMS SERVICE

SALARIES AND EXPENSES

For necessary expenses of the United States Customs Service,

including purchase of up to 1,000 motor vehicles of which 960

are for replacement only, including 990 for police-type use and

commercial operations; hire of motor vehicles; contracting with

individuals for personal services abroad; not to exceed $30,000

for official reception and representation expenses; and awards of

compensation to informers, as authorized by any Act enforced

by the United States Customs Service; $1,487,250,000; of which

$65,000,000 shall be available until expended for Operation

Hardline; of which $28,000,000 shall remain available until

expended for acquisition of aircraft and related operations and

maintenance associated with Operation Gateway; and of which

such sums as become available in the Customs User Fee Account,

except sums subject to section 13031(f)(3) of the Consolidated Omnibus Reconciliation Act of 1985, as amended (19 U.S.C. 58c(f)(3)),

shall be derived from that Account; of the total, not to exceed

$150,000 shall be available for payment for rental space in connection with preclearance operations, and not to exceed $4,000,000

shall be available until expended for research and not to exceed

$1,000,000 shall be available until expended for conducting special

operations pursuant to 19 U.S.C. 2081 and up to $6,000,000 shall

be available until expended for the procurement of automation

infrastructure items, including hardware, software, and installation:

Provided, That uniforms may be purchased without regard to the

general purchase price limitation for the current fiscal

year:Provided further, That the United States Custom Service shall

implement the General Aviation Telephonic Entry program within

30 days of enactment of this Act: Provided further, That no funds

available for separation incentive payments as authorized by section

663 of this Act may be obligated without the advance approval

of the House and Senate Committees on Appropriations:Provided

further, That the Spirit of St. Louis Airport in St. Louis County,

Missouri, shall be designated a port of entry: Provided further,

That no funds under this Act may be used to provide less than

30 days public notice for any change in apparel regulations: Provided further, That $750,000 shall be available for additional parttime and temporary positions in the Honolulu Customs District:

Provided further, That of the funds appropriated $2,500,000 may

be made available for the Western Hemisphere Trade Center

authorized by Public Law 103–182.

OPERATION AND MAINTENANCE, AIR AND MARINE INTERDICTION

PROGRAMS

For expenses, not otherwise provided for, necessary for the

operation and maintenance of marine vessels, aircraft, and other

related equipment of the Air and Marine Programs, including operational training and mission-related travel, and rental payments

for facilities occupied by the air or marine interdiction and demand

reduction programs, the operations of which include: the interdiction

of narcotics and other goods; the provision of support to Customs

and other Federal, State, and local agencies in the enforcement

or administration of laws enforced by the Customs Service; and,

at the discretion of the Commissioner of Customs, the provision
110 STAT. 3009–321 PUBLIC LAW 104–208—SEPT. 30, 1996

of assistance to Federal, State, and local agencies in other law

enforcement and emergency humanitarian efforts; $83,363,000,

which shall remain available until expended: Provided, That no

aircraft or other related equipment, with the exception of aircraft

which is one of a kind and has been identified as excess to Customs

requirements and aircraft which has been damaged beyond repair,

shall be transferred to any other Federal agency, Department,

or office outside of the Department of the Treasury, during fiscal

year 1997 without the prior approval of the House and Senate

Committees on Appropriations.

CUSTOMS SERVICES AT SMALL AIRPORTS

(TO BE DERIVED FROM FEES COLLECTED)

Such sums as may be necessary for expenses for the provision

of Customs services at certain small airports or other facilities

when authorized by law and designated by the Secretary of the

Treasury, including expenditures for the salary and expenses of

individuals employed to provide such services, to be derived from

fees collected by the Secretary pursuant to section 236 of Public

Law 98–573 for each of these airports or other facilities when

authorized by law and designated by the Secretary, and to remain

available until expended.

HARBOR MAINTENANCE FEE COLLECTION

For administrative expenses related to the collection of the

Harbor Maintenance Fee, pursuant to Public Law 103–182,

$3,000,000, to be derived from the Harbor Maintenance Trust Fund

and to be transferred to and merged with the Customs ‘‘Salaries

and Expenses’’ account for such purposes.

BUREAU OF THE PUBLIC DEBT

ADMINISTERING THE PUBLIC DEBT

For necessary expenses connected with any public-debt issues

of the United States; $169,735,000: Provided, That the sum appropriated herein from the General Fund for fiscal year 1997 shall

be reduced by not more than $4,400,000 as definitive security

issue fees and Treasury Direct Investor Account Maintenance fees

are collected, so as to result in a final fiscal year 1997 appropriation

from the General Fund estimated at $165,335,000.

INTERNAL REVENUE SERVICE

PROCESSING, ASSISTANCE, AND MANAGEMENT

For necessary expenses of the Internal Revenue Service, not

otherwise provided for; including processing tax returns; revenue

accounting; providing assistance to taxpayers, management services, and inspection; including purchase (not to exceed 150 for

replacement only for police-type use) and hire of passenger motor

vehicles (31 U.S.C. 1343(b)); and services as authorized by 5 U.S.C.

3109, at such rates as may be determined by the Commissioner;

$1,779,840,000, of which up to $3,700,000 shall be for the Tax
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–322

Counseling for the Elderly Program, and of which not to exceed

$25,000 shall be for official reception and representation expenses.

TAX LAW ENFORCEMENT

For necessary expenses of the Internal Revenue Service for

determining and establishing tax liabilities; tax and enforcement

litigation; technical rulings; examining employee plans and exempt

organizations; investigation and enforcement activities; securing

unfiled tax returns; collecting unpaid accounts; statistics of income

and compliance research; the purchase (for police-type use, not

to exceed 850), and hire of passenger motor vehicles (31 U.S.C.

1343(b)); and services as authorized by 5 U.S.C. 3109, at such

rates as may be determined by the Commissioner $4,104,211,000,

of which not to exceed $1,000,000 shall remain available until

September 30, 1999, for research.

INFORMATION SYSTEMS

For necessary expenses for data processing and telecommunications support for Internal Revenue Service activities, including

tax systems modernization and operational information systems;

the hire of passenger motor vehicles (31 U.S.C. 1343(b)); and services as authorized by 5 U.S.C. 3109, at such rates as may be

determined by the Commissioner, $1,323,075,000, of which no less

than $130,075,000 shall be available for Tax Systems Modernization

(TSM) development and deployment which shall be available until

September 30, 1999, and of which no less than $206,200,000 shall

be available for TSM Operational Systems: Provided, That none

of the funds made available for TSM Operational Systems shall

be available after July 31, 1997, unless the Department of the

Treasury has prepared a Request for Proposal which could be

used as a base for a solicitation of a contract with an alternative

or new Prime Contractor to manage, integrate, test and implement

the TSM program: Provided further, That all activities associated

with the development of a request for proposal, contract solicitation,

and contract award for private sector assistance on TSM (both

operational systems and development and deployment systems),

beyond private sector assistance which is currently under contract,

shall be conducted by the Department of the Treasury’s Modernization Management Board: Provided further, That if the Internal

Revenue Service determines that it is unable to meet deadlines

established herein, the Secretary of the Treasury shall notify the

Committees on Appropriations of the House and the Senate of

the delay Provided further, That the Internal Revenue Service

shall submit, by February 1, 1997, a timetable for implementing,

by October 1, 1997, recommendations made by the General Accounting Office in its July 1995 report, entitled: ‘‘Tax Systems Modernization: Management and Technical Weaknesses Must Be Corrected

If Modernization Is To Succeed’’: Provided further, That the Internal

Revenue Service shall submit, by December 1, 1996, a schedule

to transfer, not later than July 31, 1997, a majority of Tax Systems

Modernization development, deployment, management, integration,

and testing, from the Internal Revenue Service to the private sector.
110 STAT. 3009–323 PUBLIC LAW 104–208—SEPT. 30, 1996

INFORMATION SYSTEMS

(RESCISSION)

Of the funds made available under this heading for Information

Systems in Public Law 104–52, $115,000,000 are rescinded, in

Public Law 103–123, $17,447,000 are rescinded, in Public Law

102–393, $15,000,000 are rescinded, and in Public Law 102–141,

$27,000,000 are rescinded.

ADMINISTRATIVE PROVISIONS—INTERNAL REVENUE SERVICE

SECTION 101. Not to exceed 5 percent of any appropriation

made available in this Act to the Internal Revenue Service may

be transferred to any other Internal Revenue Service appropriation

upon the advance approval of the House and Senate Committees

on Appropriations.

SEC. 102. The Internal Revenue Service shall maintain a training program to insure that Internal Revenue Service employees

are trained in taxpayers’ rights, in dealing courteously with the

taxpayers, and in cross-cultural relations.

SEC. 103. The funds provided in this Act for the Internal

Revenue Service shall be used to provide as a minimum, the fiscal

year 1995 level of service, staffing, and funding for Taxpayer Services.

SEC. 104. No funds available in this Act to the Internal Revenue

Service for separation incentive payments as authorized by section

663 of this Act may be obligated without the advance approval

of the House and Senate Committees on Appropriations.

SEC. 105. The Internal Revenue Service (IRS) may proceed

with its field support reorganization in fiscal year 1997 after it

submits its report, no earlier than March 1, 1997, to the Committees

on Appropriations of the House and Senate only if the IRS maintains, in fiscal year 1997, the current level of taxpayer service

employees that work on cases generated through walk in vists

and telephone calls to IRS offices.

SEC. 106. Funds made available by this or any other Act to

the Internal Revenue Service shall be available for improved facilities and increased manpower to provide sufficient and effective

1–800 help line for taxpayers. The Commissioner shall make the

improvement of the IRS 1–800 help line service a priority and

allocate resources necessary to increase phone lines and staff to

improve the IRS 1–800 help line service.

SEC. 107. No funds made available by this Act, or any other

Act, to the Internal Revenue Service may be used to pay for the

design and printing of more than two ink colors on the covers

of income tax packages, and such ink colors must be the same

colors as used to print the balance of the material in each package.

SEC. 108. Notwithstanding any other provision of law, no field

support reorganization of the Internal Revenue Service shall be

undertaken in Aberdeen, South Dakota until the Internal Revenue

Service toll-free help phone line assistance program reaches at

least an 80 percent service level. The Commissioner shall submit

to Congress a report and the GAO shall certify to Congress that

the 80 percent service level has been met.

26 USC 7803

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–324

UNITED STATES SECRET SERVICE

SALARIES AND EXPENSES

For necessary expenses of the United States Secret Service,

including purchase (not to exceed 702 vehicles for police-type use,

of which 665 shall be for replacement only), and hire of passenger

motor vehicles; hire of aircraft; training and assistance requested

by State and local governments, which may be provided without

reimbursement; services of expert witnesses at such rates as may

be determined by the Director; rental of buildings in the District

of Columbia, and fencing, lighting, guard booths, and other facilities

on private or other property not in Government ownership or control, as may be necessary to perform protective functions; for payment of per diem and/or subsistence allowances to employees where

a protective assignment during the actual day or days of the visit

of a protectee require an employee to work 16 hours per day

or to remain overnight at his or her post of duty; the conducting

of and participating in firearms matches; presentation of awards;

and for travel of Secret Service employees on protective missions

without regard to the limitations on such expenditures in this

or any other Act: Provided, That approval is obtained in advance

from the House and Senate Committees on Appropriations; for

repairs, alterations, and minor construction at the James J. Rowley

Secret Service Training Center; for research and development; for

making grants to conduct behavioral research in support of protective research and operations; not to exceed $20,000 for official

reception and representation expenses; not to exceed $50,000 to

provide technical assistance and equipment to foreign law enforcement organizations in counterfeit investigations; for payment in

advance for commercial accommodations as may be necessary to

perform protective functions; and for uniforms without regard to

the general purchase price limitation for the current fiscal year:

Provided further, That 3 U.S.C. 203(a) is amended by deleting

‘‘but not exceeding twelve hundred in number’’; $528,262,000, of

which $1,200,000 shall be available as a grant for activities related

to the investigations of missing and exploited children and shall

remain available until expended.

SALARIES AND EXPENSES

(RESCISSION)

Of the funds made available under this heading in Public

Law 104–52, $7,600,000 are rescinded.

ACQUISITION, CONSTRUCTION, IMPROVEMENT, AND RELATED

EXPENSES

(INCLUDING TRANSFER OF FUNDS)

For necessary expenses of construction, repair, alteration, and

improvement of facilities, $37,365,000, of which $8,200,000 shall

be available for the Rowley Secret Service Training Center, to

remain available until expended: Provided, That funds previously

provided under the title, ‘‘Treasury Buildings and Annex Repair

and Restoration,’’ for the Secret Service’s Headquarters Building,

shall be transferred to this account: Provided further, That funds

for the Rowley Secret Service Training Center shall not be available
110 STAT. 3009–325 PUBLIC LAW 104–208—SEPT. 30, 1996

until a prospectus authorizing such facilities is approved in accordance with the Public Buildings Act of 1959, as amended, except

that funds may be expended for required expenses in connection

with the development of a proposed prospectus.

GENERAL PROVISIONS—DEPARTMENT OF THE TREASURY

SECTION 111. Any obligation or expenditure by the Secretary

in connection with law enforcement activities of a Federal agency

or a Department of the Treasury law enforcement organization

in accordance with 31 U.S.C. 9703(g)(4)(B) from unobligated balances remaining in the Fund on September 30, 1997, shall be

made in compliance with the reprogramming guidelines contained

in the House and Senate reports accompanying this Act.

SEC. 112. Appropriations to the Treasury Department in this

Act shall be available for uniforms or allowances therefor, as authorized by law (5 U.S.C. 5901), including maintenance, repairs, and

cleaning; purchase of insurance for official motor vehicles operated

in foreign countries; purchase of motor vehicles without regard

to the general purchase price limitations for vehicles purchased

and used overseas for the current fiscal year; entering into contracts

with the Department of State for the furnishing of health and

medical services to employees and their dependents serving in

foreign countries; and services authorized by 5 U.S.C. 3109.

SEC. 113. None of the funds appropriated by this title shall

be used in connection with the collection of any underpayment

of any tax imposed by the Internal Revenue Code of 1986 unless

the conduct of officers and employees of the Internal Revenue

Service in connection with such collection, including any private

sector employees under contract to the Internal Revenue Service,

complies with subsection (a) of section 805 (relating to communications in connection with debt collection), and section 806 (relating

to harassment or abuse), of the Fair Debt Collection Practices

Act (15 U.S.C. 1692).

SEC. 114. The Internal Revenue Service shall institute policies

and procedures which will safeguard the confidentiality of taxpayer

information.

SEC. 115. The funds provided to the Bureau of Alcohol Tobacco

and Firearms for fiscal year 1997 in this Act for the enforcement

of the Federal Alcohol Administration Act shall be expended in

a manner so as not to diminish enforcement efforts with respect

to section 105 of the Federal Alcohol Administration Act.

SEC. 116. Paragraph (3)(C) of section 9703(g) of title 31, United

States Code, is amended—

(1) by striking in the third sentence ‘‘and at the end of

each fiscal year thereafter’’;

(2) by inserting in lieu thereof ‘‘1994, 1995, and 1996’’;

and

(3) by adding at the end the following new sentence: ‘‘At

the end of fiscal year 1997, and at the end of each fiscal

year thereafter, the Secretary shall reserve any amounts that

are required to be retained in the Fund to ensure the availability of amounts in the subsequent fiscal year for purposes

authorized under subsection (a).’’

SEC. 117. Of the funds available to the Internal Revenue Service, $13,000,000 shall be made available to continue the private

sector debt collection program which was initiated in fiscal year

26 USC 6103

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–326

1996 and $13,000,000 shall be transferred to the Departmental

Offices appropriation to initiate a new private sector debt collection

program: Provided, That the transfer provided herein shall be in

addition to any other transfer authority contained in this Act.

SEC. 118. Section 923(j) of title 18, United States Code, is

amended by striking the period after the last sentence, and inserting

the following: ‘‘, including the right of a licensee to conduct ‘curios

or relics’ firearms transfers and business away from their business

premises with another licensee without regard as to whether the

location of where the business is conducted is located in the State

specified on the license of either licensee.’’.

This title may be cited as the ‘‘Treasury Department Appropriations Act, 1997’’.

TITLE II—POSTAL SERVICE

PAYMENTS TO THE POSTAL SERVICE

PAYMENT TO THE POSTAL SERVICE FUND

For payment to the Postal Service Fund for revenue forgone

on free and reduced rate mail, pursuant to subsections (c) and

(d) of section 2401 of title 39, United States Code, $85,080,000:

Provided, That mail for overseas voting and mail for the blind

shall continue to be free: Provided further, That 6-day delivery

and rural delivery of mail shall continue at not less than the

1983 level: Provided further, That none of the funds made available

to the Postal Service by this Act shall be used to implement any

rule, regulation, or policy of charging any officer or employee of

any State or local child support enforcement agency, or any individual participating in a State or local program of child support enforcement, a fee for information requested or provided concerning an

address of a postal customer: Provided further, That none of the

funds provided in this Act shall be used to consolidate or close

small rural and other small post offices in the fiscal year ending

on September 30, 1997.

PAYMENT TO THE POSTAL SERVICE FUND FOR NONFUNDED LIABILITIES

For payment to the Postal Service Fund for meeting the liabilities of the former Post Office Department to the Employees’ Compensation Fund pursuant to 39 United States Code 2004,

$35,536,000.

TITLE III—EXECUTIVE OFFICE OF THE PRESIDENT AND

FUNDS APPROPRIATED TO THE PRESIDENT

COMPENSATION OF THE PRESIDENT AND THE WHITE HOUSE OFFICE

COMPENSATION OF THE PRESIDENT

For compensation of the President, including an expense allowance at the rate of $50,000 per annum as authorized by 3 U.S.C.

102, $250,000: Provided, That none of the funds made available

for official expenses shall be expended for any other purpose and

any unused amount shall revert to the Treasury pursuant to section

1552 of title 31, United States Code: Provided further, That none

3 USC 102 note.

Executive Office

Appropriations

Act, 1997.
110 STAT. 3009–327 PUBLIC LAW 104–208—SEPT. 30, 1996

of the funds made available for official expenses shall be considered

as taxable to the President.

SALARIES AND EXPENSES

For necessary expenses for the White House as authorized by law, including not to exceed $3,850,000 for services as authorized

by 5 U.S.C. 3109 and 3 U.S.C. 105; including subsistence expenses

as authorized by 3 U.S.C. 105, which shall be expended and

accounted for as provided in that section; hire of passenger motor

vehicles, newspapers, periodicals, teletype news service, and travel

(not to exceed $100,000 to be expended and accounted for as provided by 3 U.S.C. 103); not to exceed $19,000 for official entertainment expenses, to be available for allocation within the Executive

Office of the President; $40,193,000: Provided, That $420,000 of

the funds appropriated may not be obligated until the Director

of the Office of Administration has submitted, and the Committees

on Appropriations of the House and Senate have approved, a report

that identifies, evaluates, and prioritizes all computer systems

investments planned for fiscal year 1997, a milestone schedule

for the development and implementation of all projects included

in the systems investment plan, and a systems architecture plan.

EXECUTIVE RESIDENCE AT THE WHITE HOUSE

OPERATING EXPENSES

For the care, maintenance, repair and alteration, refurnishing,

improvement, heating and lighting, including electric power and

fixtures, of the Executive Residence at the White House and official

entertainment expenses of the President, $7,827,000, to be expended

and accounted for as provided by 3 U.S.C. 105, 109–110, 112–

114.

SPECIAL ASSISTANCE TO THE PRESIDENT AND THE OFFICIAL

RESIDENCE OF THE VICE PRESIDENT

SALARIES AND EXPENSES

For necessary expenses to enable the Vice President to provide

assistance to the President in connection with specially assigned

functions, services as authorized by 5 U.S.C. 3109 and 3 U.S.C.

106, including subsistence expenses as authorized by 3 U.S.C. 106,

which shall be expended and accounted for as provided in that

section; and hire of passenger motor vehicles; $3,280,000: Provided, That $150,000 of the funds appropriated may not be obligated

until the Director of the Office of Administration has submitted,

and the Committees on Appropriations of the House and Senate

have approved, a report that identifies, evaluates, and prioritizes

all computer systems investments planned for fiscal year 1997,

a milestone schedule for the development and implementation of

all projects included in the systems investment plan, and a systems

architecture plan.

OPERATING EXPENSES

For the care, operation, refurnishing, improvement, heating

and lighting, including electric power and fixtures, of the official
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–328

residence of the Vice President, the hire of passenger motor vehicles,

and not to exceed $90,000 for official entertainment expenses of

the Vice President, to be accounted for solely on his certificate;

$324,000: Provided, That advances or repayments or transfers from

this appropriation may be made to any department or agency for

expenses of carrying out such activities: Provided further, That

$8,000 of the funds appropriated may not be obligated until the

Director of the Office of Administration has submitted for approval

to the Committees on Appropriations of the House and Senate

a report that identifies, evaluates, and prioritizes all computer

systems investments planned for fiscal year 1997, a milestone schedule for the development and implementation of all projects included

in the systems investment plan, and a systems architecture plan.

COUNCIL OF ECONOMIC ADVISERS

SALARIES AND EXPENSES

For necessary expenses of the Council in carrying out its functions under the Employment Act of 1946 (15 U.S.C. 1021),

$3,439,000.

OFFICE OF POLICY DEVELOPMENT

SALARIES AND EXPENSES

For necessary expenses of the Office of Policy Development,

including services as authorized by 5 U.S.C. 3109, and 3 U.S.C.

107; $3,867,000: Provided, That $45,000 of the funds appropriated

may not be obligated until the Director of the Office of Administration has submitted, and the Committees on Appropriations of the

House and Senate have approved, a report that identifies, evaluates,

and prioritizes all computer systems investments planned for fiscal

year 1997, a milestone schedule for the development and

implementation of all projects included in the systems investment

plan, and a systems architecture plan.

NATIONAL SECURITY COUNCIL

SALARIES AND EXPENSES

For necessary expenses of the National Security Council, includ- ing services as authorized by 5 U.S.C. 3109, $6,648,000: Provided,

That $3,000 of the funds appropriated may not be obligated until

the Director of the Office of Administration has submitted, and

the Committees on Appropriations of the House and Senate have

approved, a report that identifies, evaluates, and prioritizes all

computer systems investments planned for fiscal year 1997, a milestone schedule for the development and implementation of all

projects included in the systems investment plan, and a systems

architecture plan.

OFFICE OF ADMINISTRATION

SALARIES AND EXPENSES

For necessary expenses of the Office of Administration,

$26,100,000, including services as authorized by 5 U.S.C. 3109
110 STAT. 3009–329 PUBLIC LAW 104–208—SEPT. 30, 1996

and 3 U.S.C. 107, and hire of passenger motor vehicles: Provided,

That $340,700 of the funds appropriated may not be obligated

until the Director of the Office of Administration has submitted,

and the Committees on Appropriations of the House and Senate

have approved, a report that identifies, evaluates, and prioritizes

all computer systems investments planned for fiscal year 1997,

a milestone schedule for the development and implementation of

all projects included in the systems investment plan, and a systems

architecture plan.

OFFICE OF MANAGEMENT AND BUDGET

SALARIES AND EXPENSES

For necessary expenses of the Office of Management and

Budget, including hire of passenger motor vehicles, services as

authorized by 5 U.S.C. 3109, $55,573,000, of which not to exceed

$5,000,000 shall be available to carry out the provisions of 44

U.S.C. chapter 35: Provided, That, as provided in 31 U.S.C. 1301(a),

appropriations shall be applied only to the objects for which appropriations were made except as otherwise provided by law: Provided

further, That none of the funds appropriated in this Act for the

Office of Management and Budget may be used for the purpose

of reviewing any agricultural marketing orders or any activities

or regulations under the provisions of the Agricultural Marketing

Agreement Act of 1937 (7 U.S.C. 601 et seq.): Provided further,

That none of the funds made available for the Office of Management

and Budget by this Act may be expended for the altering of the

transcript of actual testimony of witnesses, except for testimony

of officials of the Office of Management and Budget, before the

House and Senate Committees on Appropriations or the House

and Senate Committees on Veterans’ Affairs or their subcommittees:

Provided further, That this proviso shall not apply to printed hearings released by the House and Senate Committees on Appropriations or the House and Senate Committees on Veterans’ Affairs.

OFFICE OF NATIONAL DRUG CONTROL POLICY

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF FUNDS)

For necessary expenses of the Office of National Drug Control

Policy; for research activities pursuant to title I of Public Law

100–690; not to exceed $8,000 for official reception and representation expenses; and for participation in joint projects or in the

provision of services on matters of mutual interest with nonprofit,

research, or public organizations or agencies, with or without

reimbursement; $35,838,000, of which $19,000,000 shall remain

available until expended, consisting of $1,000,000 for policy research

and evaluation and $18,000,000 for the Counter-Drug Technology

Assessment Center for counternarcotics research and development

projects of which $1,000,000 shall be obligated for state conferences

on model state drug laws: Provided, That the $17,000,000 for the

Counter-Drug Technology Assessment Center shall be available

for transfer to other Federal departments or agencies: Provided

further, That the Office is authorized to accept, hold, administer,

and utilize gifts, both real and personal, for the purpose of aiding
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–330

or facilitating the work of the Office: Provided further, That not

before January 31, 1997, the Director of the Office of National

Drug Control Policy shall transfer all balances in the Special Forfeiture Fund established by section 6073 of the Anti-Drug Abuse Act

of 1988 (21 U.S.C. § 1509) to the Treasury Forfeiture Fund (31

U.S.C. 9703(a)).

FEDERAL DRUG CONTROL PROGRAMS

HIGH INTENSITY DRUG TRAFFICKING AREAS PROGRAM

(INCLUDING TRANSFER OF FUNDS)

For necessary expenses of the Office of National Drug Control

Policy’s High Intensity Drug Trafficking Areas Program,

$127,102,000 for drug control activities consistent with the approved

strategy for each of the designated High Intensity Drug Trafficking

Areas, of which $3,000,000 shall be used for a newly designated

High Intensity Drug Trafficking Area in Lake County, Indiana;

of which $6,000,000 shall be used for a newly designated High

Intensity Drug Trafficking Area for the Gulf Coast States of Louisiana, Alabama, and Mississippi; of which $8,000,000 shall be used

for a newly designated High Intensity Drug Trafficking Area dedicated to combating methamphetamine use, production and trafficking in a five State area including Iowa, Missouri, Nebraska, South

Dakota, and Kansas; of which $3,000,000 shall be used for a newly

designated High Intensity Drug Trafficking Area in the State of

Colorado; of which $3,000,000 shall be used for a newly designated

High Intensity Drug Trafficking Area in the Pacific Northwest;

of the total amount appropriated, including transferred funds, no

less than $71,000,000 shall be transferred to State and local entities

for drug control activities, and up to $69,207,000 may be transferred

to Federal agencies and departments at a rate to be determined

by the Director: Provided, That the funds made available under

this head shall be obligated within 90 days of the date of enactment

of this Act.

This title may be cited as the ‘‘Executive Office Appropriations

Act, 1997’’.

TITLE IV—INDEPENDENT AGENCIES

COMMITTEE FOR PURCHASE FROM PEOPLE WHO ARE BLIND OR

SEVERELY DISABLED

SALARIES AND EXPENSES

For necessary expenses of the Committee for Purchase From

People Who Are Blind or Severely Disabled established by the

Act of June 23, 1971, Public Law 92–28; $1,800,000.

FEDERAL ELECTION COMMISSION

SALARIES AND EXPENSES

For necessary expenses to carry out the provisions of the Fed- eral Election Campaign Act of 1971, as amended, $28,165,000,

of which no less than $2,500,000 shall be available for internal

automated data processing systems, and of which not to exceed

$5,000 shall be available for reception and representation expenses.

Independent

Agencies

Appropriations

Act, 1997.
110 STAT. 3009–331 PUBLIC LAW 104–208—SEPT. 30, 1996

FEDERAL LABOR RELATIONS AUTHORITY

SALARIES AND EXPENSES

For necessary expenses to carry out functions of the Federal

Labor Relations Authority, pursuant to Reorganization Plan Numbered 2 of 1978, and the Civil Service Reform Act of 1978, including

services as authorized by 5 U.S.C. 3109, including hire of experts

and consultants, hire of passenger motor vehicles, rental of conference rooms in the District of Columbia and elsewhere;

$21,588,000: Provided, That public members of the Federal Service

Impasses Panel may be paid travel expenses and per diem in

lieu of subsistence as authorized by law (5 U.S.C. 5703) for persons

employed intermittently in the Government service, and compensation as authorized by 5 U.S.C. 3109: Provided further, That notwithstanding 31 U.S.C. 3302, funds received from fees charged to nonFederal participants at labor-management relations conferences

shall be credited to and merged with this account, to be available

without further appropriation for the costs of carrying out these

conferences.

GENERAL SERVICES ADMINISTRATION

FEDERAL BUILDINGS FUND

LIMITATIONS ON AVAILABILITY OF REVENUE

(INCLUDING TRANSFER OF FUNDS)

For additional expenses necessary to carry out the purpose

of the Fund established pursuant to section 210(f) of the Federal

Property and Administrative Services Act of 1949, as amended

(40 U.S.C. 490(f)), $400,544,000, to be deposited into said Fund.

The revenues and collections deposited into the Fund shall be

available for necessary expenses of real property management and

related activities not otherwise provided for, including operation,

maintenance, and protection of federally owned and leased buildings; rental of buildings in the District of Columbia; restoration

of leased premises; moving governmental agencies (including space

adjustments and telecommunications relocation expenses) in connection with the assignment, allocation and transfer of space; contractual services incident to cleaning or servicing buildings, and moving;

repair and alteration of federally owned buildings including

grounds, approaches and appurtenances; care and safeguarding of

sites; maintenance, preservation, demolition, and equipment; acquisition of buildings and sites by purchase, condemnation, or as

otherwise authorized by law; acquisition of options to purchase

buildings and sites; conversion and extension of federally owned

buildings; preliminary planning and design of projects by contract

or otherwise; construction of new buildings (including equipment

for such buildings); and payment of principal, interest, taxes, and

any other obligations for public buildings acquired by installment

purchase and purchase contract, in the aggregate amount

of$5,555,544,000 of which (1) not to exceed $657,711,000 shall remain available until expended for construction of additional projects

and at maximum construction improvement costs (including funds

for sites and expenses and associated design and construction services) as follows:
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–332

New Construction:

California:

Fresno, Federal Building and U.S. Courthouse, $6,595,000

Colorado:

Denver, Rogers Federal Building-U.S. Courthouse,

$9,545,000

District of Columbia:

U.S. Courthouse Annex, $5,703,000

Florida:

Miami, U.S. Courthouse, $24,990,000

Orlando, U.S. Courthouse, $9,514,000

Kentucky:

Covington, U.S. Courthouse, $17,134,000

London, U.S. Courthouse, $13,732,000

Montana:

Babb, Piegan Border Station, $333,000

Sweetgrass, Border Station, $1,059,000

Nevada:

Las Vegas, U.S. Courthouse, $83,719,000

New York:

Brooklyn, U.S. Courthouse, $169,000,000

Ohio:

Cleveland, U.S. Courthouse, $128,559,000

Youngstown, U.S. Courthouse, $15,813,000

Oregon:

Portland, Consolidated Law Federal Office Building,

$4,750,000

Pennsylvania:

Erie, U.S. Courthouse Annex, $3,300,000

Philadelphia, DVA-Federal Complex, Phase II, $13,765,000

South Carolina:

Columbia, U.S. Courthouse Annex, $43,848,000

Texas:

Corpus Christi, U.S. Courthouse, $24,161,000

Utah:

Salt Lake City, Moss U.S. Courthouse Annex and Alteration, $11,474,000

Washington:

Blaine, U.S. Border Station, $13,978,000

Oroville, U.S. Border Station, $1,452,000

Seattle, U.S. Courthouse, $16,853,000

Sumas, U.S. Border Station (Claim), $1,177,000

Nationwide:

Non-prospectus construction projects, $10,000,000

Security Enhancements, $27,256,000:

Provided, That each of the immediately foregoing limits of costs

on new construction projects may be exceeded to the extent that

savings are affected in other such projects, but not to exceed 10

percent unless advance approval is obtained from the House and

Senate Committees on Appropriations of a greater amount: Provided

further, That the cost of future U.S. Courthouse annex projects

shall reflect savings through improving design efficiencies, curtailing planned interior finishes, requiring more efficient use of courtroom and library space, and by otherwise limiting space requirements: Providing further, That from funds available in the Federal

Buildings Fund, $20,000,000 shall be available until expended for

environmental clean up activities at the Southeast Federal Center
110 STAT. 3009–333 PUBLIC LAW 104–208—SEPT. 30, 1996

in the District of Columbia and $81,000,000 shall be available

until expended for design and construction activities at the Consolidated Law Federal Office Building in Portland, Oregon: Provied

further, That from funds available for non-prospectus construction

projects, $250,000 may be available until expended for the acquisition, lease, construction, and equipping of flexiplace work telecommuting centers in West Virginia: Provided further, That all

funds for direct construction projects shall expire on September

30, 1999: (2) not to exceed $639,000,000 shall remain available

until expended, for repairs and alterations which includes associated

design and construction services: Provided further, That funds in

the Federal Buildings Fund for Repairs and Alterations shall, for

prospectus projects, be limited to the amount by project as follows,

except each project may be increased by an amount not to exceed

10 per centum unless advance approval is obtained from the Committees on Appropriations of the House and Senate of a greater

amount:

Repairs and alterations:

District of Columbia:

Ariel Rios Building, $62,740,000

Justice Department, Phase 1 of 3, $50,000,000

Lafayette Building, $5,166,000

Hawaii:

Honolulu, Prince Jonah Kuhio Kalanianaole Federal Building and U.S. Courthouse, $4,140,000

Illinois:

Chicago, Everett M. Dirksen Federal Building, $18,844,000

Chicago, John C. Kluczynski, Jr. Federal Building (IRS),

$13,414,000

Louisiana:

New Orleans, Customhouse, $3,500,000

Maryland:

Montgomery County, White Oak environmental clean up

activities, $10,000,000

Massachusetts:

Andover, IRS Regional Service Center, $812,000

New Hampshire:

Concord, J.C. Cleveland Federal Building, $8,251,000

New Jersey:

Camden, U.S. Post Office-Courthouse $11,096,000

New York:

Albany, James T. Foley Post Office-Courthouse, $3,880,000

Brookhaven, IRS Service Center, $2,272,000

New York, Jacob K. Javits Federal Building, $13,651,000

Pennsylvania:

Scranton, Federal Building-U.S. Courthouse, $10,610,000

Rhode Island:

Providence, Federal Building-U.S. Courthouse, $8,209,000

Texas:

Fort Worth, Federal Center, $11,259,000

Nationwide:

Chlorofluorocarbons Program, $23,456,000

Elevator Program, $10,000,000

Energy Program, $20,000,000

Security Enhancements, various buildings, $2,700,000

Basic Repairs and Alterations, $345,000,000:
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–334

Provided further, That additional projects for which prospectuses

have been fully approved may be funded under this category only

if advance approval is obtained from the Committees on Appropriations of the House and Senate: Provided further, That the amounts

provided in this or any prior Act for Repairs and Alterations may

be used to fund costs associated with implementing security

improvements to buildings necessary to meet the minimum standards for security in accordance with current law and in compliance

with the reprogramming guidelines of the appropriate Committees

of the House and Senate: Provided further, That funds in the

Federal Buildings Fund for Repairs and Alterations shall, for

prospectus projects, be limited to the originally authorized amount,

except each project may be increased by an amount not to exceed

10 percent when advance approval is obtained from the Committees

on Appropriations of the House and Senate of a greater amount:

Provided further, That the difference between the funds appropriated and expended on any projects in this or any prior Act,

under the heading ‘‘Repairs and Alterations’’, may be transferred

to Basic Repairs and Alterations or used to fund authorized

increases in prospectus projects: Provided further, That from funds

made available for Basic Repairs and Alterations, $8,000,000 shall

be made available for renovation of the Agricultural Research Service Laboratory in Ames, Iowa, which is currently occupied by the

Animal and Plant Health Inspection Service: Provided further, That

from funds made available for Basic Repairs and Alterations,

$1,450,000 may be available for the renovation of the Pioneer Courthouse located at 520 SW Morrison, in Portland, Oregon: Provied

further, That from funds made available for Basic Repairs and

Alterations, $6,000,000 shall be used for necessary expenses associated with ongoing construction of the U.S. Courthouse in Montgomery, Alabama: Provided further, That from funds made available

for Basic Repairs and Alterations, $100,000 shall be transferred

to the National Park Service ‘‘Construction’’ appropriation for restoration and maintenance of the multi-purpose field at Wallenberg

Place in Washington, DC: Provided further, That all funds for

repairs and alterations prospectus projects shall expire on September 30, 1999, and remain in the Federal Buildings Fund except

funds for projects as to which funds for design or other funds

have been obligated in whole or in part prior to such date: Provided

further, That the amount provided in this or any prior Act for

Basic Repairs and Alterations may be used to pay claims against

the Government arising from any projects under the heading ‘‘Repairs and Alterations’’ or used to fund authorized increases in

prospectus projects: Provided further, That $5,700,000 of the funds

provided under this heading in Public Law 103–329, for the IRS

Service Center, Holtsville, New York, shall be available until September 30, 1998; (3) not to exceed $173,075,000 for installment

acquisition payments including payments on purchase contracts

which shall remain available until expended: Provided further, That

up to $1,500,000 shall be available for a design prospectus of

the Federal Building and U.S. Courthouse located at 811 Grand

Avenue in Kansas City, Missouri; (4) not to exceed $2,343,795,000

for rental of space which shall remain available until expended;

and (5) not to exceed $1,552,651,000 for building operations which

shall remain available until expended and of which $8,000,000

shall be transferred to the ‘‘Policy and Operations’’ appropriation:

Provided further, That funds available to the General Services
110 STAT. 3009–335 PUBLIC LAW 104–208—SEPT. 30, 1996

Administration shall not be available for expenses in connection

with any construction, repair, alteration, and acquisition project

for which a prospectus, if required by the Public Buildings Act

of 1959, as amended, has not been approved, except that necessary

funds may be expended for each project for required expenses

in connection with the development of a proposed prospectus: Provided further, That the Administrator of General Services shall,

at the earliest practicable date, initiate discussions with the Smithsonian Institution on the feasibility of transferring Federal Building

10B located at 600 Independence Avenue SW., Washington, DC

to the Smithsonian Institution at such price and under such terms

and conditions as determined appropriate by the Administrator

and subject to the prior approval of the appropriate authorizing

and appropriations committees of the Congress: Provided further,

That funds provided in this Act under the heading ‘‘Security Enhancements, various buildings’’ may be used, by project in accordance with an approved prospectus: Provided further, That the Administrator is authorized in fiscal year 1997 and thereafter, to

enter into and perform such leases, contracts, or other transactions

with any agency or instrumentality of the United States, the several

States, or the District of Columbia, or with any person, firm, association, or corporation, as may be necessary to implement the trade

center plan at the Federal Triangle Project and is hereby granted

all the rights and authorities of the former Pennsylvania Avenue

Development Corporation (PADC) with regard to property transferred from the PADC to the General Services Administration in

fiscal year 1996: Provided further, That notwithstanding any other

provision of law, the Administrator of General Services is hereby

authorized to use all funds transferred from the PADC or income

earned on PADC properties for activities associated with carrying

out the responsibilities of the PADC transferred to the Administrator of General Services and that any such income earned on

or after April 1, 1996, shall be deposited to the Pennsylvania

Avenue Activities account and shall remain available until expended: Provided further, That any funds or income as may be

deemed by the Administrator as excess to the amount needed

to fulfill the PADC responsibilities transferred to the Administrator

of General Services, shall be applied to any outstanding debt, with

the exception of debt associated with the Ronald Reagan Building

and International Trade Center, incurred by the PADC in the

course of acquiring real estate: Provided further, That with respect

to real property transferred from the PADC to the General Services

Administration pursuant to section 313 of Public Law 104–134,

Title III, General Provisions, the Administrator of General Services

is hereafter authorized and directed to make payments required

by section 10(b) of the PADC Act of 1972, Public Law 92–578

in the same manner as previously paid by the PADC: Provided

further, That for the purposes of this authorization, buildings constructed pursuant to the purchase contract authority of the Public

Buildings Amendments of 1972 (40 U.S.C. 602a), buildings occupied

pursuant to installment purchase contracts, and buildings under

the control of another department or agency where alterations

of such buildings are required in connection with the moving of

such other department or agency from buildings then, or thereafter

to be, under the control of the General Services Administration

shall be considered to be federally owned buildings: Provided further, That funds available in the Federal Buildings Fund may

40 USC 872 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–336

be expended for emergency repairs when advance approval is obtained from the Committees on Appropriations of the House and

Senate: Provided further, That amounts necessary to provide reimbursable special services to other agencies under section 210(f)(6)

of the Federal Property and Administrative Services Act of 1949,

as amended (40 U.S.C. 490(f)(6)) and amounts to provide such

reimbursable fencing, lighting, guard booths, and other facilities

on private or other property not in Government ownership or control

as may be appropriate to enable the United States Secret Service

to perform its protective functions pursuant to 18 U.S.C. 3056,

as amended, shall be available from such revenues and collections:

Provided further, That revenues and collections and any other sums

accruing to this Fund during fiscal year 1997, excluding reimbursements under section 210(f)(6) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 490(f)(6)) in excess of

$5,555,544,000 shall remain in the Fund and shall not be available

for expenditure except as authorized in appropriations Acts.

POLICY AND OPERATIONS

For expenses authorized by law, not otherwise provided for,

for Government-wide policy and oversight activities associated with

asset management activities; utilization and donation of surplus

personal property; transportation management activities; procurement and supply management activities; Government-wide and

internal responsibilities relating to automated data management,

telecommunications, information resources management, and

related technology activities; utilization survey, deed compliance

inspection, appraisal, environmental and cultural analysis, and land

use planning functions pertaining to excess and surplus real property; agency-wide policy direction; Board of Contract Appeals;

accounting, records management, and other support services

incident to adjudication of Indian Tribal Claims by the United

States Court of Federal Claims; services as authorized by 5 U.S.C.

3109; and not to exceed $5,000 for official reception and representation expenses; $110,173,000.

OFFICE OF INSPECTOR GENERAL

For necessary expenses of the Office of Inspector General and

services authorized by 5 U.S.C. 3109, $33,863,000: Provided, That

not to exceed $5,000 shall be available for payment for information

and detection of fraud against the Government, including payment

for recovery of stolen Government property: Provided further, That

not to exceed $2,500 shall be available for awards to employees

of other Federal agencies and private citizens in recognition of

efforts and initiatives resulting in enhanced Office of Inspector

General effectiveness.

ALLOWANCES AND OFFICE STAFF FOR FORMER PRESIDENTS

For carrying out the provisions of the Act of August 25, 1958,

as amended (3 U.S.C. 102 note), and Public Law 95–138, $2,180,000:

Provided, That the Administrator of General Services shall transfer

to the Secretary of the Treasury such sums as may be necessary

to carry out the provisions of such Acts.
110 STAT. 3009–337 PUBLIC LAW 104–208—SEPT. 30, 1996

EXPENSES, PRESIDENTIAL TRANSITION

For expenses necessary to carry out the Presidential Transition

Act of 1963, as amended (3 U.S.C. 102 note), $5,600,000.

GENERAL PROVISIONS—GENERAL SERVICES ADMINISTRATION

SECTION 401. The appropriate appropriation or fund available

to the General Services Administration shall be credited with the

cost of operation, protection, maintenance, upkeep, repair, and

improvement, included as part of rentals received from Government

corporations pursuant to law (40 U.S.C. 129).

SEC. 402. Funds available to the General Services Administration shall be available for the hire of passenger motor vehicles.

SEC. 403. Funds in the Federal Buildings Fund made available

for fiscal year 1997 for Federal Buildings Fund activities may

be transferred between such activities only to the extent necessary

to meet program requirements: Provided, That any proposed transfers shall be approved in advance by the Committees on Appropriations of the House and Senate.

SEC. 404. No funds made available by this Act shall be used

to transmit a fiscal year 1998 request for United States Courthouse

construction that does not meet the design guide standards for

construction as established by the General Services Administration,

the Judicial Conference of the United States, and the Office of

Management and Budget and does not reflect the priorities of

the Judicial Conference of the United States as set out in its

approved 5-year construction plan: Provided, That the request must

be accompanied by a standardized courtroom utilization study of

each facility to be replaced or expanded.

SEC. 405. None of the funds provided in this Act may be

used to increase the amount of occupiable square feet, provide

cleaning services, security enhancements, or any other service usually provided through the Federal Buildings Fund, to any agency

which does not pay the requested rate per square foot assessment

for space and services as determined by the General Services

Administration in compliance with the Public Buildings Amendments Act of 1972 (Public Law 92–313).

SEC. 406. The Administrator of the General Services is directed

to ensure that the materials used for the fascade on the United

States Courthouse Annex, Savannah, Georgia project are compatible

with the existing Savannah Federal Building-U.S. Courthouse

fascade, in order to ensure compatibility of this new facility with

the Savannah historic district and to ensure that the Annex will

not endanger the National Landmark status of the Savannah historic district.

SEC. 407. (a) Section 210 of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 490) is amended by adding

at the end the following new subsection:

‘‘(l)(1) The Administrator may establish, acquire space for, and

equip flexiplace work telecommuting centers (in this subsection

referred to as ‘telecommuting centers’) for use by employees of

Federal agencies, State and local governments, and the private

sector in accordance with this subsection.

‘‘(2) The Administrator may make any telecommuting center

available for use by individuals who are not Federal employees

to the extent the center is not being fully utilized by Federal
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–338

employees. The Administrator shall give Federal employees priority

in using the telecommuting centers.

‘‘(3)(A) The Administrator shall charge user fees for the use

of any telecommuting center. The amount of the user fee shall

approximate commercial charges for comparable space and services

except that in no instance shall such fee be less than that necessary

to pay the cost of establishing and operating the center, including

the reasonable cost of renovation and replacement of furniture,

fixtures, and equipment.

‘‘(B) Amounts received by the Administrator after September

30, 1993, as user fees for use of any telecommuting center may

be deposited into the Fund established under subsection (f) of

this section and may be used by the Administrator to pay costs

incurred in the establishment and operation of the center.

‘‘(4) The Administrator may provide guidance, assistance, and

oversight to any person regarding establishment and operation

of alternative workplace arrangements, such as telecommuting,

hoteling, virtual offices, and other distributive work arrangements.

‘‘(5) In considering whether to acquire any space, quarters,

buildings, or other facilities for use by employees of any executive

agency, the head of that agency shall consider whether the need

for the facilities can be met using alternative workplace arrangements referred to in paragraph (4).’’.

(b) Section 13 of the Public Building Act of 1959, as amended,

(107 Stat. 438; 40 U.S.C. 612) is amended—

(1) by striking ‘‘(xi)’’ and inserting in lieu thereof ‘‘(xii)’’;

and

(2) by striking ‘‘and (x)’’ and inserting in lieu thereof ‘‘(x)

telecommuting centers and (xi)’’.

SEC. 408. Notwithstanding any other provision of law, the

Administrator of General Services is authorized and directed to

acquire the land bounded by S.W. First Avenue, S.W. Second

Avenue, S.W. Main Street, and S.W. Madison Street, Portland,

Oregon, for the purposes of constructing the proposed Law Enforcement Center on the site.

SEC. 409. Section 2815 of Public Law 103–160, relating to

the conveyance of real property at the Iowa Army Ammunition

Plant, is amended—

(1) in subsection (a), by striking ‘‘may convey to’’ and inserting ‘‘shall convey, without reimbursement and if requested by,’’;

and

(2) by striking subsection (b) and inserting the following

new subsection:

‘‘(b) USE OF WATER AND SEWER LINES.—As part of the conveyance under subsection (a), the Secretary shall permit the City

to use existing water and sewer lines and sewage system at the

Iowa Army Ammunition Plant for a three-year period beginning

on the date of the conveyance.’’.

SEC. 410. (a) CONVEYANCE OF LAND.—

(1) ADMINISTRATOR OF GENERAL SERVICES.—Subject to subsections (b) and (c), the Administrator of General Services

(hereinafter in this section referred to as the ‘‘Administrator’’)

shall convey, without compensation, to a nonprofit organization

known as the ‘‘Beaver County Corporation for Economic Development’’ all right, title, and interest of the United States in

and to those pieces or parcels of land in Hopewell Township,

Pennsylvania, described in subsection (b), together with all
110 STAT. 3009–339 PUBLIC LAW 104–208—SEPT. 30, 1996

improvements thereon and appurtenances thereto. The purpose

of the conveyance is to provide a site for economic development

in Hopewell Township.

(2) PROPERTY DESCRIPTION.—The land referred to in paragraph (1) is the parcel of land in the township of Hopewell,

county of Beaver, Pennsylvania, bounded and described as follows:

(A) Beginning at the southwest corner at a point common to Lot No. 1, same plan, lands now or formerly of

Frank and Catherine Wutter, and the easterly right-ofway line of Pennsylvania Legislative Route No. 60 (Beaver

Valley Expressway); thence proceeding by the easterly

right-of-way of Pennsylvania Legislative Route No. 60 by

the following three courses and distances:

(i) North 17 degrees, 14 minutes, 20 seconds West,

213.10 feet to a point.

(ii) North 72 degrees, 45 minutes, 40 seconds East,

30.00 feet to a point.

(iii) North 17 degrees, 14 minutes, 20 seconds

West, 252.91 feet to a point; on a line dividing Lot

No. 1 from the other part of Lot No. 1, said part

now called Lot No. 5, same plan; thence by last mentioned dividing line, North 78 degrees, 00 minutes,

00 seconds East; 135.58 feet to a point, a cul-de-sac

on Industrial Drive; thence by said cul-de-sac and the

southerly side of Industrial Drive by the following

courses and distances:

(I) By a curve to the right having a radius

of 100.00 feet for an arc distance of 243.401 feet

to a point.

(II) Thence by a curve to the right having

a radius of 100.00 feet for an arc distance of 86.321

feet to a point.

(III) Thence by 78 degrees, 00 minutes, 00

seconds East, 777.78 feet to a point.

(IV) Thence, North 12 degrees, 00 minutes,

00 seconds West, 74.71 feet to a point.

(V) Thence by a curve to the right, having

a radius of 50.00 feet for an arc distance of 78.54

feet to a point.

(VI) Thence North 78 degrees, 00 minutes,

00 seconds East, 81.24 feet to a point.

(VII) Thence by a curve to the right, having

a radius of 415.00 feet for an arc distance of 140.64

feet to a point.

(VIII) Thence, South 82 degrees, 35 minutes,

01 second East, 125.00 feet to a point.

(IX) Thence, South 7 degrees, 24 minutes, 59

seconds West, 5.00 feet to a point.

(X) Thence by a curve to the right, having

a radius of 320.00 feet for an arc distance of 256.85

feet to a point.

(XI) Thence by a curve to the right having

a radius of 50.00 feet for an arc distance of 44.18

feet to a point on the northerly side of Airport

Road.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–340

(B) Thence by the northerly side thereof by the following:

(i) South 14 degrees, 01 minutes, 54 seconds, West,

56.94 feet to a point.

(ii) Thence by a curve to the right having a radius

of 225.00 feet for an arc distance of 207.989 feet to

a point.

(iii) Thence South 66 degrees, 59 minutes, 45 seconds West, 192.08 feet to a point on the southern

boundary of Lot No. 1, which line is also the line

dividing Lot No. 1 from lands now or formerly, of

Frank and Catherine Wutter.

(C) Thence by the same, South 75 degrees, 01 minutes,

00 seconds West, 1,351.23 feet to a point at the place

of beginning.

(3) DATE OF CONVEYANCE.—The date of the conveyance

of property required under paragraph (1) shall be not later

than the 90th day following the date of the enactment of

this Act.

(4) CONVEYANCE TERMS.—

(A) TERMS AND CONDITIONS.—The conveyance of property required under paragraph (1) shall be subject to such

terms and conditions as may be determined by the Administrator to be necessary to safeguard the interests of the

United States. Such terms and conditions shall be consistent with the terms and conditions set forth in this section.

(B) QUITCLAIM DEED.—The conveyance of property

required under paragraph (1) shall be by quitclaim deed.

(b) LIMITATION ON CONVEYANCE.—No part of any land conveyed

under subsection (a) may be used, during the 30-year period beginning on the date of conveyance for any purpose other than economic

development.

(c) REVERSIONARY INTEREST.—

(1) IN GENERAL.—The property conveyed under subsection

(a) shall revert to the United States on any date in the 30-

year period beginning on the date of such conveyance on which

the property is used for a purpose other than economic development.

(2) ENFORCING REVERSION.—The Administrator shall perform all acts necessary to enforce any reversion of property

to the United States under this subsection.

(3) INVENTORY OF PUBLIC BUILDINGS SERVICE.—Property

that reverts to the United States under this subsection shall

be under the control of the General Services Administration.

SEC. 411. Notwithstanding any other provision of law, the

land contained in block 111 in the Federal District, Denver, Colorado, obtained pursuant to paragraphs (6) and (7) of section 12

of Public Law 94–204 (43 U.S.C. 1611 note) shall not be subject

to condemnation by any agency or instrumentality of the Federal

Government, without the consent of the owner of that land.

JOHN F. KENNEDY ASSASSINATION RECORDS REVIEW BOARD

For necessary expenses to carry out the John F. Kennedy

Assassination Records Collection Act of 1992, $2,150,000.
110 STAT. 3009–341 PUBLIC LAW 104–208—SEPT. 30, 1996

MERIT SYSTEMS PROTECTION BOARD

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF FUNDS)

For necessary expenses to carry out functions of the Merit

Systems Protection Board pursuant to Reorganization Plan Numbered 2 of 1978 and the Civil Service Reform Act of 1978, including

services as authorized by 5 U.S.C. 3109, rental of conference rooms

in the District of Columbia and elsewhere, hire of passenger motor

vehicles, and direct procurement of survey printing, $23,923,000,

together with not to exceed $2,430,000 for administrative expenses

to adjudicate retirement appeals to be transferred from the Civil

Service Retirement and Disability Fund in amounts determined

by the Merit Systems Protection Board.

NATIONAL ARCHIVES AND RECORDS ADMINISTRATION

OPERATING EXPENSES

For necessary expenses in connection with the administration

of the National Archives (including the Information Security Oversight Office) and records and related activities, as provided by

law, and for expenses necessary for the review and declassification

of documents, and for the hire of passenger motor vehicles,

$196,963,000: Provided, That the Archivist of the United States

is authorized to use any excess funds available from the amount

borrowed for construction of the National Archives facility, for

expenses necessary to move into the facility.

ARCHIVES FACILITIES AND PRESIDENTIAL LIBRARIES

REPAIRS AND RESTORATION

For the repair, alteration, and improvement of archives facilities

and presidential libraries, and to provide adequate storage for holdings, $16,229,000 to remain available until expended.

NATIONAL HISTORICAL PUBLICATIONS AND RECORDS COMMISSION

GRANTS PROGRAM

For necessary expenses for allocations and grants for historical

publications and records as authorized by 44 U.S.C. 2504, as amended, $5,000,000 to remain available until expended.

OFFICE OF GOVERNMENT ETHICS

SALARIES AND EXPENSES

For necessary expenses to carry out functions of the Office

of Government Ethics pursuant to the Ethics in Government Act

of 1978, as amended by Public Law 100–598, and the Ethics Reform

Act of 1989, Public Law 101–194, including services as authorized

by 5 U.S.C. 3109, rental of conference rooms in the District of

Columbia and elsewhere, hire of passenger motor vehicles, and

not to exceed $1,500 for official reception and representation

expenses; $8,078,000.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–342

OFFICE OF PERSONNEL MANAGEMENT

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF TRUST FUNDS)

For necessary expenses to carry out functions of the Office

of Personnel Management pursuant to Reorganization Plan Numbered 2 of 1978 and the Civil Service Reform Act of 1978, including

services as authorized by 5 U.S.C. 3109; medical examinations

performed for veterans by private physicians on a fee basis; rental

of conference rooms in the District of Columbia and elsewhere;

hire of passenger motor vehicles; not to exceed $2,500 for official

reception and representation expenses; advances for reimbursements to applicable funds of the Office of Personnel Management

and the Federal Bureau of Investigation for expenses incurred

under Executive Order 10422 of January 9, 1953, as amended;

and payment of per diem and/or subsistence allowances to employees where Voting Rights Act activities require an employee to

remain overnight at his or her post of duty; $87,076,000, of which

not to exceed $1,000,000 shall be available for the establishment

of health promotion and disease prevention programs for Federal

employees; and in addition $94,736,000 for administrative expenses,

to be transferred from the appropriate trust funds of the Office

of Personnel Management without regard to other statutes, including direct procurement of printing materials for annuitants, for

the retirement and insurance programs, of which $3,500,000 shall

be transferred at such times as the Office of Personnel Management

deems appropriate, and shall remain available until expended for

the costs of automating the retirement recordkeeping systems,

together with remaining amounts authorized in previous Acts for

the recordkeeping systems: Provided, That the provisions of this

appropriation shall not affect the authority to use applicable trust

funds as provided by section 8348(a)(1)(B) of title 5, United States

Code: Provided further, That, except as may be consistent with

5 U.S.C. 8902a(f)(1) and (i), no payment may be made from the

Employees Health Benefits Fund to any physician, hospital, or

other provider of health care services or supplies who is, at the

time such services or supplies are provided to an individual covered

under chapter 89 of title 5, United States Code, excluded, pursuant

to section 1128 or 1128A of the Social Security Act (42 U.S.C.

1320a–7–1320a–7a), from participation in any program under title

XVIII of the Social Security Act (42 U.S.C. 1395 et seq.): Provided

further, That no part of this appropriation shall be available for

salaries and expenses of the Legal Examining Unit of the Office

of Personnel Management established pursuant to Executive Order

9358 of July 1, 1943, or any successor unit of like purpose: Provided

further, That the President’s Commission on White House Fellows,

established by Executive Order 11183 of October 3, 1964, may,

during the fiscal year ending September 30, 1997, accept donations

of money, property, and personal services in connection with the

development of a publicity brochure to provide information about

the White House Fellows, except that no such donations shall

be accepted for travel or reimbursement of travel expenses, or

for the salaries of employees of such Commission.
110 STAT. 3009–343 PUBLIC LAW 104–208—SEPT. 30, 1996

GENERAL PROVISIONS—OFFICE OF PERSONNEL MANAGEMENT

SEC. 421. The first sentence of section 1304(e)(1) of title 5,

United States Code, is amended by inserting after ‘‘basis’’ the following ‘‘, including personnel management services performed at the

request of individual agencies (which would otherwise be the responsibility of such agencies), or at the request of nonappropriated

fund instrumentalities’’.

SEC. 422. Paragraph (1) of section 8906(e) of title 5, United

States Code, is amended—

(1) by striking the last sentence of that paragraph and

redesignating the remainder of that paragraph as (1)(A);

(2) by adding at the end of paragraph (1)(A) (as so designated) the following:

‘‘(B) During each pay period in which an enrollment continues under subparagraph (A)—

‘‘(i) employee and Government contributions required

by this section shall be paid on a current basis; and

‘‘(ii) if necessary, the head of the employing agency

shall approve advance payment, recoverable in the same

manner as under section 5524a(c), of a portion of basic

pay sufficient to pay current employee contributions.

‘‘(C) Each agency shall establish procedures for accepting

direct payments of employee contributions for the purposes

of this paragraph.’’.

OFFICE OF INSPECTOR GENERAL

SALARIES AND EXPENSES

(INCLUDING TRANSFER OF TRUST FUNDS)

For necessary expenses of the Office of Inspector General in

carrying out the provisions of the Inspector General Act, as amended, including services as authorized by 5 U.S.C. 3109, hire of

passenger motor vehicles, $960,000; and in addition, not to exceed

$8,645,000 for administrative expenses to audit the Office of Personnel Management’s retirement and insurance programs, to be transferred from the appropriate trust funds of the Office of Personnel

Management, as determined by the Inspector General: Provided,

That the Inspector General is authorized to rent conference rooms

in the District of Columbia and elsewhere.

GOVERNMENT PAYMENT FOR ANNUITANTS, EMPLOYEES HEALTH

BENEFITS

For payment of Government contributions with respect to

retired employees, as authorized by chapter 89 of title 5, United

States Code, and the Retired Federal Employees Health Benefits

Act (74 Stat. 849), as amended, such sums as may be necessary.

GOVERNMENT PAYMENT FOR ANNUITANTS, EMPLOYEE LIFE

INSURANCE

For payment of Government contributions with respect to

employees retiring after December 31, 1989, as required by chapter

87 of title 5, United States Code, such sums as may be necessary.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–344

PAYMENT TO CIVIL SERVICE RETIREMENT AND DISABILITY FUND

For financing the unfunded liability of new and increased annuity benefits becoming effective on or after October 20, 1969, as

authorized by 5 U.S.C. 8348, and annuities under special Acts

to be credited to the Civil Service Retirement and Disability Fund,

such sums as may be necessary: Provided, That annuities authorized by the Act of May 29, 1944, as amended, and the Act of

August 19, 1950, as amended (33 U.S.C. 771–75), may hereafter

be paid out of the Civil Service Retirement and Disability Fund.

OFFICE OF SPECIAL COUNSEL

SALARIES AND EXPENSES

For necessary expenses to carry out functions of the Office

of Special Counsel pursuant to Reorganization Plan Numbered 2

of 1978, the Civil Service Reform Act of 1978 (Public Law 95–

454), the Whistleblower Protection Act of 1989 (Public Law 101–

12), Public Law 103–424, and the Uniformed Services Employment

and Reemployment Act of 1994 (Public Law 103–353), including

services as authorized by 5 U.S.C. 3109, payment of fees and

expenses for witnesses, rental of conference rooms in the District

of Columbia and elsewhere, and hire of passenger motor vehicles;

$8,116,000.

UNITED STATES TAX COURT

SALARIES AND EXPENSES

For necessary expenses, including contract reporting and other

services as authorized by 5 U.S.C. 3109, $33,781,000: Provided,

That travel expenses of the judges shall be paid upon the written

certificate of the judge.

This title may be cited as the ‘‘Independent Agencies Appropriations Act, 1997’’.

TITLE V—GENERAL PROVISIONS

THIS ACT

SECTION 501. No part of any appropriation contained in this

Act shall remain available for obligation beyond the current fiscal

year unless expressly so provided herein.

SEC. 502. The expenditure of any appropriation under this

Act for any consulting service through procurement contract, pursuant to 5 U.S.C. 3109, shall be limited to those contracts where

such expenditures are a matter of public record and available

for public inspection, except where otherwise provided under existing law, or under existing Executive order issued pursuant to existing law.

SEC. 503. Section 5131 of title 31, United States Code, is

amended—

(1) by striking subsection (c); and

(2) by redesignating subsection (d) as subsection (c).

SEC. 504. None of the funds made available by this Act shall

be available for any activity or for paying the salary of any Government employee where funding an activity or paying a salary to

26 USC 7443

note.

33 USC 776.
110 STAT. 3009–345 PUBLIC LAW 104–208—SEPT. 30, 1996

a Government employee would result in a decision, determination,

rule, regulation, or policy that would prohibit the enforcement of

section 307 of the Tariff Act of 1930.

SEC. 505. None of the funds made available by this Act shall

be available for the purpose of transferring control over the Federal

Law Enforcement Training Center located at Glynco, Georgia, and

Artesia, New Mexico, out of the Treasury Department.

SEC. 506. No part of any appropriation contained in this Act

shall be used for publicity or propaganda purposes within the

United States not heretofore authorized by the Congress.

SEC. 507. No part of any appropriation contained in this Act

shall be available for the payment of the salary of any officer

or employee of the United States Postal Service, who—

(1) prohibits or prevents, or attempts or threatens to prohibit or prevent, any officer or employee of the United States

Postal Service from having any direct oral or written communication or contact with any Member or committee of Congress

in connection with any matter pertaining to the employment

of such officer or employee or pertaining to the United States

Postal Service in any way, irrespective of whether such communication or contact is at the initiative of such officer or employee

or in response to the request or inquiry of such Member or

committee; or

(2) removes, suspends from duty without pay, demotes,

reduces in rank, seniority, status, pay, or performance of efficiency rating, denies promotion to, relocates, reassigns, transfers, disciplines, or discriminates in regard to any employment

right, entitlement, or benefit, or any term or condition of

employment of, any officer or employee of the United States

Postal Service, or attempts or threatens to commit any of

the foregoing actions with respect to such officer or employee,

by reason of any communication or contact of such officer

or employee with any Member or committee of Congress as

described in paragraph (1).

SEC. 508. The Office of Personnel Management may, during

the fiscal year ending September 30, 1997, accept donations of

supplies, services, land, and equipment for the Federal Executive

Institute and Management Development Centers to assist in

enhancing the quality of Federal management.

SEC. 509. The United States Secret Service may, during the

fiscal year ending September 30, 1997, and hereafter, accept donations of money to off-set costs incurred while protecting former

Presidents and spouses of former Presidents when the former President or spouse travels for the purpose of making an appearance

or speech for a payment of money or any thing of value.

SEC. 510. No part of any appropriation contained in this Act

shall be available to pay the salary for any person filling a position,

other than a temporary position, formerly held by an employee

who has left to enter the Armed Forces of the United States and

has satisfactorily completed his period of active military or naval

service and has within 90 days after his release from such service

or from hospitalization continuing after discharge for a period of

not more than 1 year made application for restoration to his former

position and has been certified by the Office of Personnel Management as still qualified to perform the duties of his former position

and has not been restored thereto.

18 USC 3056

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–346

SEC. 511. None of the funds made available in this Act may

be used to provide any non-public information such as mailing

or telephone lists to any person or any organization outside of

the Federal Government without the approval of the House and

Senate Committees on Appropriations.

SEC. 512. No funds appropriated pursuant to this Act may

be expended by an entity unless the entity agrees that in expending

the assistance the entity will comply with sections 2 through 4

of the Act of March 3, 1933 (41 U.S.C. 10a–10c, popularly known

as the ‘‘Buy American Act’’).

SEC. 513. (a) PURCHASE OF AMERICAN-MADE EQUIPMENT AND

PRODUCTS.—In the case of any equipment or products that may

be authorized to be purchased with financial assistance provided

under this Act, it is the sense of the Congress that entities receiving

such assistance should, in expending the assistance, purchase only

American-made equipment and products.

(b) NOTICE TO RECIPIENTS OF ASSISTANCE.—In providing financial assistance under this Act, the Secretary of the Treasury shall

provide to each recipient of the assistance a notice describing the

statement made in subsection (a) by the Congress.

SEC. 514. If it has been finally determined by a court or Federal

agency that any person intentionally affixed a label bearing a

‘‘Made in America’’ inscription, or any inscription with the same

meaning, to any product sold in or shipped to the United States

that is not made in the United States, such person shall be ineligible

to receive any contract or subcontract made with funds provided

pursuant to this Act, pursuant to the debarment, suspension, and

ineligibility procedures described in sections 9.400 through 9.409

of title 48, Code of Federal Regulations.

SEC. 515. Except as otherwise specifically provided by law,

not to exceed 50 percent of unobligated balances remaining available

at the end of fiscal year 1997 from appropriations made available

for salaries and expenses for fiscal year 1997 in this Act, shall

remain available through September 30, 1998, for each such account

for the purposes authorized: Provided, That a request shall be

submitted to the House and Senate Committees on Appropriations

for approval prior to the expenditure of such funds.

SEC. 516. Where appropriations in this Act are expendable

for travel expenses of employees and no specific limitation has

been placed thereon, the expenditures for such travel expenses

may not exceed the amount set forth in the budget estimates

submitted for appropriations without the advance approval of the

House and Senate Committees on Appropriations: Provided, That

this section shall not apply to travel performed by uncompensated

officials of local boards and appeal boards in the Selective Service

System; to travel performed directly in connection with care and

treatment of medical beneficiaries of the Department of Veterans

Affairs; to travel of the Office of Personnel Management in carrying

out its observation responsibilities of the Voting Rights Act; or

to payments to interagency motor pools separately set forth in

the budget schedules: Provided further, That this provision does

not apply to accounts that do not contain an object identification

for travel.

SEC. 517. Notwithstanding any other provision of law or regulation during the fiscal year ending September 30, 1997, and thereafter:

31 USC 5141

note.
110 STAT. 3009–347 PUBLIC LAW 104–208—SEPT. 30, 1996

(1) The authority of the special police officers of the Bureau

of Engraving and Printing, in the Washington, DC Metropolitan

area, extends to buildings and land under the custody and

control of the Bureau; to buildings and land acquired by or

for the Bureau through lease, unless otherwise provided by

the acquisition agency; to the streets, sidewalks and open areas

immediately adjacent to the Bureau along Wallenberg Place

(15th Street) and 14th Street between Independence and Maine

Avenues and C and D Streets between 12th and 14th Streets;

to areas which include surrounding parking facilities used by

Bureau employees, including the lots at 12th and C Streets,

SW, Maine Avenue and Water Streets, SW, Maiden Lane, the

Tidal Basin and East Potomac Park; to the protection in transit

of United States securities, plates and dies used in the production of United States securities, or other products or implements

of the Bureau of Engraving and Printing which the Director

of that agency so designates.

(2) The authority of the special police officers of the United

States Mint extends to the buildings and land under the custody

and control of the Mint; to the streets, sidewalks and open

areas in the vicinity to such facilities; to surrounding parking

facilities used by Mint employees; and to the protection in

transit of bullion, coins, dies, and other property and assets

of, or in the custody of, the Mint.

(3) The exercise of police authority by Bureau or Mint

officers, with the exception of the exercise of authority upon

property under the custody and control of the Bureau or the

Mint, respectively, shall be deemed supplementary to the Federal police force with primary jurisdictional responsibility. This

authority shall be in addition to any other law enforcement

authority which has been provided to these officers under other

provisions of law or regulations.

SEC. 518. No funds appropriated by this Act shall be available

to pay for an abortion, or the administrative expenses in connection

with any health plan under the Federal employees health benefit

program which provides any benefits or coverage for abortions.

SEC. 519. The provision of section 518 shall not apply where

the life of the mother would be endangered if the fetus were carried

to term, or the pregnancy is the result of an act of rape or incest.

SEC. 520. No part of any appropriation made available in this

Act shall be used to implement Bureau of Alcohol, Tobacco and

Firearms Ruling TD ATF–360; Re: Notice Nos. 782, 780, 91F009P.

SEC. 521. Notwithstanding title 5, United States Code, Personal

Service Contractors (PSC) employed by the Department of the

Treasury shall be considered as Federal Government employees

for purposes of making available Federal employee health and

life insurance.

SEC. 522. Section 5131 of title 31, United States Code, is

amended by striking subsection (c); and by redesignating subsection

(d) as subsection (c).

SEC. 523. Section 5112(i)(4) of title 31, United States Code,

is amended by adding at the end the following new subparagraph:

‘‘(C) The Secretary may continue to mint and issue coins in

accordance with the specifications contained in paragraphs (7), (8),

(9), and (10) of subsection (a) and paragraph (1)(A) of this subsection

at the same time the Secretary in minting and issuing other bullion

and proof gold coins under this subsection in accordance with such
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–348

program procedures and coin specifications, designs, varieties, quantities, denominations, and inscriptions as the Secretary, in the

Secretary’s discretion, may prescribe from time to time.’’: Provided,

That profits generated from the sale of gold to the United States

Mint for this program shall be considered as a receipt to be deposited into the General Fund of the Treasury.

SEC. 524. Section 5112 of title 31, United States Code, is

amended by adding at the end the following new subsection:

‘‘(k) The Secretary may mint and issue bullion and proof platinum coins in accordance with such specifications, designs, varieties,

quantities, denominations, and inscriptions as the Secretary, in

the Secretary’s discretion, may prescribe from time to time.’’: Provided, That the Secretary is authorized to use Government platinum

reserves stockpiled at the United States Mint as working inventory

and shall ensure that reserves utilized are replaced by the Mint.

SEC. 526. (a) REIMBURSEMENT OF CERTAIN ATTORNEY FEES

AND COSTS.—

(1) IN GENERAL.—The Secretary of the Treasury shall pay

from amounts appropriated in title I of this Act under the

heading, ‘‘Departmental Offices, Salaries and Expenses’’, up

to $500,000 to reimburse former employees of the White House

Travel Office whose employment in that Office was terminated

on May 19, 1993, for any attorney fees and costs they incurred

with respect to that termination.

(2) VERIFICATION REQUIRED.—The Secretary shall pay an

individual in full under paragraph (1) upon submission by

the individual of documentation verifying the attorney fees

and costs.

(3) NO INFERENCE OF LIABILITY.—Liability of the United

States shall not be inferred from enactment of or payment

under this subsection.

(b) LIMITATION ON FILING OF CLAIMS.—The Secretary of the

Treasury shall not pay any claim filed under this section that

is filed later than 120 days after the date of the enactment of

this Act.

(c) LIMITATION.—Payments under subsection (a) shall not

include attorney fees or costs incurred with respect to any Congressional hearing or investigation into the termination of employment

of the former employees of the White House Travel Office.

(d) REDUCTION.—The amount paid pursuant to this section

to an individual for attorney fees and costs described in subsection

(a) shall be reduced by any amount received before the date of

the enactment of this Act, without obligation for repayment by

the individual, for payment of such attorney fees and costs (including any amount received from the funds appropriated for the

individual in the matter relating to the ‘‘Office of the General

Counsel’’ under the heading ‘‘Office of the Secretary’’ in title I

of the Department of Transportation and Related Agencies Appropriations Act, 1994).

(e) PAYMENT IN FULL SETTLEMENT OF CLAIMS AGAINST THE

UNITED STATES.—Payment under this section, when accepted by

an individual described in subsection (a), shall be in full satisfaction

of all claims of, or on behalf of, the individual against the United

States that arose out of the termination of the White House Travel

Office employment of that individual on May 19, 1993.

SEC. 527. None of the funds made available in this Act may

be used by the Executive Office of the President to request from

31 USC 5112

note.

31 USC 5112

note.
110 STAT. 3009–349 PUBLIC LAW 104–208—SEPT. 30, 1996

the Federal Bureau of Investigation any official background investigation report on any individual, except when it is made known

to the Federal official having authority to obligate or expend such

funds that—

(1) such individual has given his or her express written

consent for such request not more than 6 months prior to

the date of such request and during the same presidential

administration; or

(2) such request is required due to extraordinary circumstances involving national security.

SEC. 528. (a) CLOSING OF ALLEY.—The alley bisecting the property on which a facility is being constructed for use by the United

States Government at 930 H Street, N.W., Washington, District

of Columbia, is closed to the public, without regard to any contingencies.

(b) JURISDICTION.—The Administrator of General Services shall

have administrative jurisdiction over, and shall hold title on behalf

of the United States in, the alley, property, and facility referred

to in subsection (a).

SEC. 529. (a) COMMEMORATIVE COIN PROGRAM RESTRICTIONS.—

Section 5112 of title 31, United States Code, as amended by sections

524 and 530 of this Act, is amended by adding at the end the

following new subsection:

‘‘(m) COMMEMORATIVE COIN PROGRAM RESTRICTIONS.—

‘‘(1) MAXIMUM NUMBER.—Beginning January 1, 1999, the

Secretary may mint and issue commemorative coins under this

section during any calendar year with respect to not more

than 2 commemorative coin programs.

‘‘(2) MINTAGE LEVELS.—

‘‘(A) IN GENERAL.—Except as provided in subparagraph

(B), in carrying out any commemorative coin program, the

Secretary shall mint—

‘‘(i) not more than 750,000 clad half-dollar coins;

‘‘(ii) not more than 500,000 silver one-dollar coins;

and

‘‘(iii) not more than 100,000 gold five-dollar or

ten-dollar coins.

‘‘(B) EXCEPTION.—If the Secretary determines, based

on independent, market-based research conducted by a designated recipient organization of a commemorative coin

program, that the mintage levels described in subparagraph

(A) are not adequate to meet public demand for that

commemorative coin, the Secretary may waive one or more

of the requirements of subparagraph (A) with respect to

that commemorative coin program.

‘‘(C) DESIGNATED RECIPIENT ORGANIZATION DEFINED.—

For purposes of this paragraph, the term ‘designated recipient organization’ means any organization designated, under

any provision of law, as the recipient of any surcharge

imposed on the sale of any numismatic item.’’.

(b) RECOVERY OF MINT EXPENSES REQUIRED BEFORE PAYMENT

OF SURCHARGES TO ANY RECIPIENT ORGANIZATION.—

(1) CLARIFICATION OF LAW RELATING TO DEPOSIT OF SURCHARGES IN THE NUMISMATIC PUBLIC ENTERPRISE FUND.—Section 5134(c)(2) of title 31, United States Code, is amended

by inserting ‘‘, including amounts attributable to any surcharge
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–350

imposed with respect to the sale of any numismatic item’’

before the period.

(2) CONDITIONS ON PAYMENT OF SURCHARGES TO RECIPIENT

ORGANIZATIONS.—Section 5134 of title 31, United States Code,

is amended by adding at the end the following new subsection:

‘‘(f) CONDITIONS ON PAYMENT OF SURCHARGES TO RECIPIENT

ORGANIZATIONS.—

‘‘(1) PAYMENT OF SURCHARGES.—Notwithstanding any other

provision of law, no amount derived from the proceeds of any

surcharge imposed on the sale of any numismatic item shall

be paid from the fund to any designated recipient organization

unless—

‘‘(A) all numismatic operation and program costs allocable to the program under which such numismatic item

is produced and sold have been recovered; and

‘‘(B) the designated recipient organization submits an

audited financial statement that demonstrates to the satisfaction of the Secretary of the Treasury that, with respect

to all projects or purposes for which the proceeds of such

surcharge may be used, the organization has raised funds

from private sources for such projects and purposes in

an amount that is equal to or greater than the maximum

amount the organization may receive from the proceeds

of such surcharge.

‘‘(2) ANNUAL AUDITS.—

‘‘(A) ANNUAL AUDITS OF RECIPIENTS REQUIRED.—Each

designated recipient organization that receives any payment from the fund of any amount derived from the proceeds of any surcharge imposed on the sale of any numismatic item shall provide, as a condition for receiving any

such amount, for an annual audit, in accordance with generally accepted government auditing standards by an

independent public accountant selected by the organization,

of all such payments to the organization beginning in the

first fiscal year of the organization in which any such

amount is received and continuing until all amounts

received by such organization from the fund with respect

to such surcharges are fully expended or placed in trust.

‘‘(B) MINIMUM REQUIREMENTS FOR ANNUAL AUDITS.—

At a minimum, each audit of a designated recipient

organization pursuant to subparagraph (A) shall report—

‘‘(i) the amount of payments received by the designated recipient organization from the fund during

the fiscal year of the organization for which the audit

is conducted that are derived from the proceeds of

any surcharge imposed on the sale of any numismatic

item;

‘‘(ii) the amount expended by the designated recipient organization from the proceeds of such surcharges

during the fiscal year of the organization for which

the audit is conducted; and

‘‘(iii) whether all expenditures by the designated

recipient organization during the fiscal year of the

organization for which the audit is conducted from

the proceeds of such surcharges were for authorized

purposes.
110 STAT. 3009–351 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(C) RESPONSIBILITY OF ORGANIZATION TO ACCOUNT FOR

EXPENDITURES OF SURCHARGES.—Each designated recipient

organization that receives any payment from the fund of

any amount derived from the proceeds of any surcharge

imposed on the sale of any numismatic item shall take

appropriate steps, as a condition for receiving any such

payment, to ensure that the receipt of the payment and

the expenditure of the proceeds of such surcharge by the

organization in each fiscal year of the organization can

be accounted for separately from all other revenues and

expenditures of the organization.

‘‘(D) SUBMISSION OF AUDIT REPORT.—Not later than

90 days after the end of any fiscal year of a designated

recipient organization for which an audit is required under

subparagraph (A), the organization shall—

‘‘(i) submit a copy of the report to the Secretary

of the Treasury; and

‘‘(ii) make a copy of the report available to the

public.

‘‘(E) USE OF SURCHARGES FOR AUDITS.—Any designated

recipient organization that receives any payment from the

fund of any amount derived from the proceeds of any

surcharge imposed on the sale of any numismatic item

may use the amount received to pay the cost of an audit

required under subparagraph (A).

‘‘(F) WAIVER OF PARAGRAPH.—The Secretary of the

Treasury may waive the application of any subparagraph

of this paragraph to any designated recipient organization

for any fiscal year after taking into account the amount

of surcharges that such organization received or expended

during such year.

‘‘(G) NONAPPLICABILITY TO FEDERAL ENTITIES.—This

paragraph shall not apply to any Federal agency or department or any independent establishment in the executive

branch that receives any payment from the fund of any

amount derived from the proceeds of any surcharge

imposed on the sale of any numismatic item.

‘‘(H) AVAILABILITY OF BOOKS AND RECORDS.—An

organization that receives any payment from the fund of

any amount derived from the proceeds of any surcharge

imposed on the sale of any numismatic item shall provide,

as a condition for receiving any such payment, to the

Inspector General of the Department of the Treasury or

the Comptroller General of the United States, upon the

request of such Inspector General or the Comptroller General, all books, records, and work papers belonging to or

used by the organization, or by any independent public

accountant who audited the organization in accordance

with subparagraph (A), which may relate to the receipt

or expenditure of any such amount by the organization.

‘‘(3) USE OF AGENTS OR ATTORNEYS TO INFLUENCE

COMMEMORATIVE COIN LEGISLATION.—No portion of any payment from the fund to any designated recipient organization

of any amount derived from the proceeds of any surcharge

imposed on the sale of any numismatic item may be used,

directly or indirectly, by the organization to compensate any

agent or attorney for services rendered to support or influence
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–352

in any way legislative action of the Congress relating to such

numismatic item.

‘‘(4) DESIGNATED RECIPIENT ORGANIZATION DEFINED.—For

purposes of this subsection, the term ‘designated recipient

organization’ means any organization designated, under any

provision of law, as the recipient of any surcharge imposed

on the sale of any numismatic item.’’.

(3) SCOPE OF APPLICATION.—The amendments made by this

section shall apply with respect to the proceeds of any surcharge

imposed on the sale of any numismatic item that are deposited

in the Numismatic Public Enterprise Fund after the date of

the enactment of this Act.

(4) REPEAL OF EXISTING RECIPIENT REPORT REQUIREMENT.—

Section 303 of Public Law 103–186 (31 U.S.C. 5112 note) is

repealed.

(c) QUARTERLY FINANCIAL REPORTS.—Section 5134 of title 31,

United States Code, is amended by adding at the end the following

new subsection:

‘‘(g) QUARTERLY FINANCIAL REPORTS.—

‘‘(1) IN GENERAL.—Not later than the 30th day of each

month following each calendar quarter through and including

the final period of sales with respect to any commemorative

coin program authorized on or after the date of enactment

of the Treasury, Postal Service, and General Government

Appropriations Act, 1997, the Mint shall submit to the Congress

a quarterly financial report in accordance with this subsection.

‘‘(2) REQUIREMENTS.—Each report submitted under paragraph (1) shall include, with respect to the calendar quarter

at issue—

‘‘(A) a detailed financial statement, prepared in accordance with generally accepted accounting principles, that

includes financial information specific to that quarter, as

well as cumulative financial information relating to the

entire program;

‘‘(B) a detailed accounting of—

‘‘(i) all costs relating to marketing efforts;

‘‘(ii) all funds projected for marketing use;

‘‘(iii) all costs for employee travel relating to the

promotion of commemorative coin programs;

‘‘(iv) all numismatic items minted, sold, not sold,

and rejected during the production process; and

‘‘(v) the costs of melting down all rejected and

unsold products;

‘‘(C) adequate market-based research for all commemorative coin programs; and

‘‘(D) a description of the efforts of the Mint in keeping

the sale price of numismatic items as low as practicable.’’.

(d) CITIZENS COMMEMORATIVE COIN ADVISORY COMMITTEE.—

(1) FIXED TERMS FOR MEMBERS.—Section 5135(a)(4) of title

31, United States Code, is amended to read as follows:

‘‘(4) TERMS.—Each member appointed under clause (i) or

(iii) of paragraph (3)(A) shall be appointed for a term of 4

years.’’.

(2) CHAIRPERSON.—Section 5135(a) of title 31, United

States Code, is amended by adding at the end the following

new paragraph:

‘‘(7) CHAIRPERSON.—

31 USC 5134

note.
110 STAT. 3009–353 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(A) IN GENERAL.—Subject to subparagraph (B), the

Chairperson of the Advisory Committee shall be elected

by the members of the Advisory Committee from among

such members.

‘‘(B) EXCEPTION.—The member appointed pursuant to

paragraph (3)(A)(ii) (or the alternate to that member) may

not serve as the Chairperson of the Advisory Committee,

beginning on June 1, 1999.’’.

(e) EFFECTIVE DATE.—This section and the amendments made

by this section shall take effect on the date of enactment of this

Act.

TITLE VI—GENERAL PROVISIONS

DEPARTMENTS, AGENCIES, AND CORPORATIONS

SECTION 601. Funds appropriated in this or any other Act

may be used to pay travel to the United States for the immediate

family of employees serving abroad in cases of death or life threatening illness of said employee.

SEC. 602. No department, agency, or instrumentality of the

United States receiving appropriated funds under this or any other

Act for fiscal year 1997 shall obligate or expend any such funds,

unless such department, agency, or instrumentality has in place,

and will continue to administer in good faith, a written policy

designed to ensure that all of its workplaces are free from the

illegal use, possession, or distribution of controlled substances (as

defined in the Controlled Substances Act) by the officers and

employees of such department, agency, or instrumentality.

SEC. 603. Notwithstanding 31 U.S.C. 1345, any agency, department or instrumentality of the United States which provides or

proposes to provide child care services for Federal employees may

reimburse any Federal employee or any person employed to provide

such services for travel, transportation, and subsistence expenses

incurred for training classes, conferences or other meetings in

connection with the provision of such services: Provided, That any

per diem allowance made pursuant to this section shall not exceed

the rate specified in regulations prescribed pursuant to section

5707 of title 5, United States Code.

SEC. 604. Unless otherwise specifically provided, the maximum

amount allowable during the current fiscal year in accordance with

section 16 of the Act of August 2, 1946 (60 Stat. 810), for the

purchase of any passenger motor vehicle (exclusive of buses, ambulances, law enforcement, and undercover surveillance vehicles), is

hereby fixed at $8,100 except station wagons for which the maximum shall be $9,100: Provided, That these limits may be exceeded

by not to exceed $3,700 for police-type vehicles, and by not to

exceed $4,000 for special heavy-duty vehicles: Provided further,

That the limits set forth in this section may not be exceeded

by more than 5 percent for electric or hybrid vehicles purchased

for demonstration under the provisions of the Electric and Hybrid

Vehicle Research, Development, and Demonstration Act of 1976:

Provided further, That the limits set forth in this section may

be exceeded by the incremental cost of clean alternative fuels

vehicles acquired pursuant to Public Law 101–549 over the cost

of comparable conventionally fueled vehicles.

31 USC 1343

note.

31 USC 5112

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–354

SEC. 605. Appropriations of the executive departments and

independent establishments for the current fiscal year available

for expenses of travel or for the expenses of the activity concerned,

are hereby made available for quarters allowances and cost-ofliving allowances, in accordance with 5 U.S.C. 5922–24.

SEC. 606. Unless otherwise specified during the current fiscal

year, no part of any appropriation contained in this or any other

Act shall be used to pay the compensation of any officer or employee

of the Government of the United States (including any agency

the majority of the stock of which is owned by the Government

of the United States) whose post of duty is in the continental

United States unless such person (1) is a citizen of the United

States, (2) is a person in the service of the United States on

the date of enactment of this Act who, being eligible for citizenship,

has filed a declaration of intention to become a citizen of the

United States prior to such date and is actually residing in the

United States, (3) is a person who owes allegiance to the United

States, (4) is an alien from Cuba, Poland, South Vietnam, the

countries of the former Soviet Union, or the Baltic countries lawfully

admitted to the United States for permanent residence, (5) is a

South Vietnamese, Cambodian, or Laotian refugee paroled in the

United States after January 1, 1975, or (6) is a national of the

People’s Republic of China who qualifys for adjustment of status

pursuant to the Chinese Student Protection Act of 1992: Provided,

That for the purpose of this section, an affidavit signed by any

such person shall be considered prima facie evidence that the

requirements of this section with respect to his or her status have

been complied with: Provided further, That any person making

a false affidavit shall be guilty of a felony, and, upon conviction,

shall be fined no more than $4,000 or imprisoned for not more

than 1 year, or both: Provided further, That the above penal clause

shall be in addition to, and not in substitution for, any other

provisions of existing law: Provided further, That any payment

made to any officer or employee contrary to the provisions of this

section shall be recoverable in action by the Federal Government.

This section shall not apply to citizens of Ireland, Israel, or the

Republic of the Philippines, or to nationals of those countries allied

with the United States in the current defense effort, or to international broadcasters employed by the United States Information

Agency, or to temporary employment of translators, or to temporary

employment in the field service (not to exceed 60 days) as a result

of emergencies.

SEC. 607. Appropriations available to any department or agency

during the current fiscal year for necessary expenses, including

maintenance or operating expenses, shall also be available for payment to the General Services Administration for charges for space

and services and those expenses of renovation and alteration of

buildings and facilities which constitute public improvements performed in accordance with the Public Buildings Act of 1959 (73

Stat. 749), the Public Buildings Amendments of 1972 (87 Stat.

216), or other applicable law.

SEC. 608. In addition to funds provided in this or any other

Act, all Federal agencies are authorized to receive and use funds

resulting from the sale of materials, including Federal records disposed of pursuant to a records schedule recovered through recycling

or waste prevention programs. Such funds shall be available until

expended for the following purposes:

5 USC 3101 note.
110 STAT. 3009–355 PUBLIC LAW 104–208—SEPT. 30, 1996

(1) Acquisition, waste reduction and prevention, and

recycling programs as described in Executive Order 12873

(October 20, 1993), including any such programs adopted prior

to the effective date of the Executive Order.

(2) Other Federal agency environmental management programs, including, but not limited to, the development and

implementation of hazardous waste management and pollution

prevention programs.

(3) Other employee programs as authorized by law or as

deemed appropriate by the head of the Federal agency.

SEC. 609. Funds made available by this or any other Act for

administrative expenses in the current fiscal year of the corporations and agencies subject to chapter 91 of title 31, United States

Code, shall be available, in addition to objects for which such

funds are otherwise available, for rent in the District of Columbia;

services in accordance with 5 U.S.C. 3109; and the objects specified

under this head, all the provisions of which shall be applicable

to the expenditure of such funds unless otherwise specified in

the Act by which they are made available: Provided, That in the

event any functions budgeted as administrative expenses are subsequently transferred to or paid from other funds, the limitations

on administrative expenses shall be correspondingly reduced.

SEC. 610. No part of any appropriation for the current fiscal

year contained in this or any other Act shall be paid to any person

for the filling of any position for which he or she has been nominated

after the Senate has voted not to approve the nomination of said

person.

SEC. 611. For the fiscal year ending September 30, 1997, and

thereafter, any department or agency to which the Administrator

of General Services has delegated the authority to operate, maintain

or repair any building or facility pursuant to section 205(d) of

the Federal Property and Administrative Services Act of 1949,

as amended, shall retain that portion of the GSA rental payment

available for operation, maintenance or repair of the building or

facility, as determined by the Administrator, and expend such funds

directly for the operation, maintenance or repair of the building

or facility. Any funds retained under this section shall remain

available until expended for such purposes.

SEC. 612. (a) IN GENERAL.—Section 1306 of title 31, United

States Code, is amended to read as follows:

‘‘§ 1306. Use of foreign credits

‘‘(a) IN GENERAL.—Foreign credits (including currencies) owed

to or owned by the United States may be used by any agency

for any purpose for which appropriations are made for the agency

for the current fiscal year (including the carrying out of Acts requiring or authorizing the use of such credits), but only when reimbursement therefor is made to the Treasury from applicable appropriations of the agency.

‘‘(b) EXCEPTION TO REIMBURSEMENT REQUIREMENT.—Credits

described in subsection (a) that are received as exchanged allowances, or as the proceeds of the sale of personal property, may

be used in whole or partial payment for the acquisition of similar

items, to the extent and in the manner authorized by law, without

reimbursement to the Treasury.’’.

31 USC 1306

note.

40 USC 486a.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–356

(b) APPLICABILITY.—The amendment made by this section shall

take effect on the date of the enactment of this Act and shall

apply thereafter.

SEC. 613. No part of any appropriation contained in this or

any other Act shall be available for interagency financing of

boards(except Federal Executive Boards), commissions, councils,

committees, or similar groups (whether or not they are interagency

entities) which do not have a prior and specific statutory approval

to receive financial support from more than one agency or

instrumentality.

SEC. 614. Funds made available by this or any other Act to

the ‘‘Postal Service Fund’’ (39 U.S.C. 2003) shall be available for

employment of guards for all buildings and areas owned or occupied

by the Postal Service and under the charge and control of the

Postal Service, and such guards shall have, with respect to such

property, the powers of special policemen provided by the first

section of the Act of June 1, 1948, as amended (62 Stat. 281;

40 U.S.C. 318), and, as to property owned or occupied by the

Postal Service, the Postmaster General may take the same actions

as the Administrator of General Services may take under the provisions of sections 2 and 3 of the Act of June 1, 1948, as amended

(62 Stat. 281; 40 U.S.C. 318a, 318b), attaching thereto penal consequences under the authority and within the limits provided in

section 4 of the Act of June 1, 1948, as amended (62 Stat. 281;

40 U.S.C. 318c).

SEC. 615. None of the funds made available pursuant to the

provisions of this Act shall be used to implement, administer, or

enforce any regulation which has been disapproved pursuant to

a resolution of disapproval duly adopted in accordance with the

applicable law of the United States.

SEC. 616. (a) Notwithstanding any other provision of law, and

except as otherwise provided in this section, no part of any of

the funds appropriated for the fiscal year ending on September

30, 1997, by this or any other Act, may be used to pay any prevailing

rate employee described in section 5342(a)(2)(A) of title 5, United

States Code—

(1) during the period from the date of expiration of the

limitation imposed by section 616 of the Treasury, Postal Service and General Government Appropriations Act, 1996, until

the normal effective date of the applicable wage survey adjustment that is to take effect in fiscal year 1997, in an amount

that exceeds the rate payable for the applicable grade and

step of the applicable wage schedule in accordance with such

section 616; and

(2) during the period consisting of the remainder of fiscal

year 1997, in an amount that exceeds, as a result of a wage

survey adjustment, the rate payable under paragraph (1) by

more than the sum of—

(A) the percentage adjustment taking effect in fiscal

year 1997 under section 5303 of title 5, United States

Code, in the rates of pay under the General Schedule;

and

(B) the difference between the overall average percentage of the locality-based comparability payments taking

effect in fiscal year 1997 under section 5304 of such title

5 USC 5343.
110 STAT. 3009–357 PUBLIC LAW 104–208—SEPT. 30, 1996

(whether by adjustment or otherwise), and the overall average percentage of such payments which was effective in

fiscal year 1996 under such section.

(b) Notwithstanding any other provision of law, no prevailing

rate employee described in subparagraph (B) or (C) of section

5342(a)(2) of title 5, United States Code, and no employee covered

by section 5348 of such title, may be paid during the periods

for which subsection (a) is in effect at a rate that exceeds the

rates that would be payable under subsection (a) were subsection

(a) applicable to such employee.

(c) For the purposes of this section, the rates payable to an

employee who is covered by this section and who is paid from

a schedule not in existence on September 30, 1996, shall be determined under regulations prescribed by the Office of Personnel

Management.

(d) Notwithstanding any other provision of law, rates of premium pay for employees subject to this section may not be changed

from the rates in effect on September 30, 1996, except to the

extent determined by the Office of Personnel Management to be

consistent with the purpose of this section.

(e) This section shall apply with respect to pay for service

performed after September 30, 1996.

(f) For the purpose of administering any provision of law

(including section 8431 of title 5, United States Code, and any

rule or regulation that provides premium pay, retirement, life insurance, or any other employee benefit) that requires any deduction

or contribution, or that imposes any requirement or limitation on

the basis of a rate of salary or basic pay, the rate of salary or

basic pay payable after the application of this section shall be

treated as the rate of salary or basic pay.

(g) Nothing in this section shall be considered to permit or

require the payment to any employee covered by this section at

a rate in excess of the rate that would be payable were this section

not in effect.

(h) The Office of Personnel Management may provide for exceptions to the limitations imposed by this section if the Office determines that such exceptions are necessary to ensure the recruitment

or retention of qualified employees.

SEC. 617. During the period in which the head of any department or agency, or any other officer or civilian employee of the

Government appointed by the President of the United States, holds

office, no funds may be obligated or expended in excess of $5,000

to furnish or redecorate the office of such department head, agency

head, officer or employee, or to purchase furniture or make improvements for any such office, unless advance notice of such furnishing

or redecoration is expressly approved by the Committees on Appropriations of the House and Senate. For the purposes of this section,

the word ‘‘office’’ shall include the entire suite of offices assigned

to the individual, as well as any other space used primarily by

the individual or the use of which is directly controlled by the

individual.

SEC. 618. Notwithstanding any other provision of law, no executive branch agency shall purchase, construct, and/or lease any additional facilities, except within or contiguous to existing locations,

to be used for the purpose of conducting Federal law enforcement

training without the advance approval of the House and Senate

Committees on Appropriations.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–358

SEC. 619. Notwithstanding section 1346 of title 31, United

States Code, or section 613 of this Act, funds made available for

fiscal year 1997 by this or any other Act shall be available for

the interagency funding of national security and emergency

preparedness telecommunications initiatives which benefit multiple

Federal departments, agencies, or entities, as provided by Executive

Order Numbered 12472 (April 3, 1984).

SEC. 620. (a) None of the funds appropriated by this or any

other Act may be obligated or expended by any Federal department,

agency, or other instrumentality for the salaries or expenses of

any employee appointed to a position of a confidential or policydetermining character excepted from the competitive service pursuant to section 3302 of title 5, United States Code, without a certification to the Office of Personnel Management from the head of

the Federal department, agency, or other instrumentality employing

the Schedule C appointee that the Schedule C position was not

created solely or primarily in order to detail the employee to the

White House.

(b) The provisions of this section shall not apply to Federal

employees or members of the armed services detailed to or from—

(1) the Central Intelligence Agency;

(2) the National Security Agency;

(3) the Defense Intelligence Agency;

(4) the offices within the Department of Defense for the

collection of specialized national foreign intelligence through

reconnaissance programs;

(5) the Bureau of Intelligence and Research of the Department of State;

(6) any agency, office, or unit of the Army, Navy, Air

Force, and Marine Corps, the Federal Bureau of Investigation

and the Drug Enforcement Administration of the Department

of Justice, the Department of Transportation, the Department

of the Treasury, and the Department of Energy performing

intelligence functions; and

(7) the Director of Central Intelligence.

SEC. 621. No department, agency, or instrumentality of the

United States receiving appropriated funds under this or any other

Act for fiscal year 1997 shall obligate or expend any such funds,

unless such department, agency or instrumentality has in place,

and will continue to administer in good faith, a written policy

designed to ensure that all of its workplaces are free from discrimination and sexual harassment and that all of its workplaces are

not in violation of title VII of the Civil Rights Act of 1964, as

amended, the Age Discrimination in Employment Act of 1967, and

the Rehabilitation Act of 1973.

SEC. 622. No part of any appropriation contained in this Act

may be used to pay for the expenses of travel of employees, including

employees of the Executive Office of the President, not directly

responsible for the discharge of official governmental tasks and

duties: Provided, That this restriction shall not apply to the family

of the President, Members of Congress or their spouses, Heads

of State of a foreign country or their designees, persons providing

assistance to the President for official purposes, or other individuals

so designated by the President.

SEC. 623. Notwithstanding any provision of law, the President,

or his designee, must certify to Congress, annually, that no person

or persons with direct or indirect responsibility for administering

5 USC 7301 note.
110 STAT. 3009–359 PUBLIC LAW 104–208—SEPT. 30, 1996

the Executive Office of the President’s Drug-Free Workplace Plan

are themselves subject to a program of individual random drug

testing.

SEC. 624. (a) None of the funds made available in this Act

or any other Act may be obligated or expended for any employee

training when it is made known to the Federal official having

authority to obligate or expend such funds that such employee

training—

(1) does not meet identified needs for knowledge, skills,

and abilities bearing directly upon the performance of official

duties;

(2) contains elements likely to induce high levels of emotional response or psychological stress in some participants;

(3) does not require prior employee notification of the content and methods to be used in the training and written end

of course evaluation;

(4) contains any methods or content associated with religious or quasi-religious belief systems or ‘‘new age’’ belief systems as defined in Equal Employment Opportunity Commission

Notice N–915.022, dated September 2, 1988;

(5) is offensive to, or designed to change, participants’

personal values or lifestyle outside the workplace; or

(6) includes content related to human immunodeficiency

virus/acquired immune deficiency syndrome (HIV/AIDS) other

than that necessary to make employees more aware of the

medical ramifications of HIV/AIDS and the workplace rights

of HIV-positive employees.

(b) Nothing in this section shall prohibit, restrict, or otherwise

preclude an agency from conducting training bearing directly upon

the performance of official duties.

SEC. 625. No funds appropriated in this or any other Act

for fiscal year 1997 may be used to implement or enforce the

agreements in Standard Forms 312 and 4355 of the Government

or any other nondisclosure policy, form, or agreement if such policy,

form, or agreement does not contain the following provisions: ‘‘These

restrictions are consistent with and do not supersede, conflict with,

or otherwise alter the employee obligations, rights, or liabilities

created by Executive Order 12356; section 7211 of title 5, United

States Code (governing disclosures to Congress); section 1034 of

title 10, United States Code, as amended by the Military Whistleblower Protection Act (governing disclosure to Congress by members

of the military); section 2302(b)(8) of title 5, United States Code,

as amended by the Whistleblower Protection Act (governing disclosures of illegality, waste, fraud, abuse or public health or safety

threats); the Intelligence Identities Protection Act of 1982 (50 U.S.C.

421 et seq.) (governing disclosures that could expose confidential

Government agents); and the statutes which protect against disclosure that may compromise the national security, including sections

641, 793, 794, 798, and 952 of title 18, United States Code, and

section 4(b) of the Subversive Activities Act of 1950 (50 U.S.C.

section 783(b)). The definitions, requirements, obligations, rights,

sanctions, and liabilities created by said Executive Order and listed

statutes are incorporated into this agreement and are controlling.’’:

Provided, That notwithstanding the preceding paragraph, a nondisclosure policy form or agreement that is to be executed by a

person connected with the conduct of an intelligence or intelligencerelated activity, other than an employee or officer of the United
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–360

States Government, may contain provisions appropriate to the

particular activity for which such document is to be used. Such

form or agreement shall, at a minimum, require that the person

will not disclose any classified information received in the course

of such activity unless specifically authorized to do so by the United

States Government. Such nondisclosure forms shall also make it

clear that they do not bar disclosures to Congress or to an authorized official of an executive agency or the Department of Justice

that are essential to reporting a substantial violation of law.

SEC. 626. (a) None of the funds appropriated by this or any

other Act may be expended by any Federal Agency to procure

any product or service subject to section 5124 of Public Law 104–

106 and that will be available under the procurement by the

Administrator of General Services known as ‘‘FTS2000’’ unless—

(1) such product or service is procured by the Administrator

of General Services as part of the procurement known as

‘‘FTS2000’’; or

(2) that agency establishes to the satisfaction of the

Administrator of General Services that—

(A) that agency’s requirements for such procurement

are unique and cannot be satisfied by property and service

procured by the Administrator of General Services as part

of the procurement known as ‘‘FTS2000’’; and

(B) the agency procurement, pursuant to such delegation, would be cost-effective and would not adversely affect

the cost-effectiveness of the FTS2000 procurement.

(b) After December 31, 1998, subsection (a) shall apply only

if the Administrator of General Services has reported that the

FTS2000 procurement is producing prices that allow the Government to satisfy its requirements for such procurement in the most

cost-effective manner.

SEC. 627. Subsection (f) of section 403 of Public Law 103–

356 is amended by deleting ‘‘October 1, 1999’’ and inserting ‘‘October

1, 2001’’.

SEC. 628. (a) IN GENERAL.—Notwithstanding any other provision of law, none of the funds made available by this Act for

the Department of the Treasury shall be available for any activity

or for paying the salary of any Government employee where funding

an activity or paying a salary to a Government employee would

result in a decision, determination, rule, regulation, or policy that

would permit the Secretary of the Treasury to make any loan

or extension of credit under section 5302 of title 31, United States

Code, with respect to a single foreign entity or government of

a foreign country (including agencies or other entities of that government)—

(1) with respect to a loan or extension of credit for more

than 60 days, unless the President certifies to the Committee

on Banking, Housing, and Urban Affairs of the Senate and

the Committee on Banking and Financial Services of the House

of Representatives that—

(A) there is no projected cost (as that term is defined

in section 502 of the Federal Credit Reform Act of 1990)

to the United States from the proposed loan or extension

of credit; and

(B) any proposed obligation or expenditure of United

States funds to or on behalf of the foreign government

is adequately backed by an assured source of repayment

31 USC 501 note.
110 STAT. 3009–361 PUBLIC LAW 104–208—SEPT. 30, 1996

to ensure that all United States funds will be repaid;

and

(2) other than as provided by an Act of Congress, if that

loan or extension of credit would result in expenditures and

obligations, including contingent obligations, aggregating more

than $1,000,000,000 with respect to that foreign country for

more than 180 days during the 12-month period beginning

on the date on which the first such action is taken.

(b) WAIVER OF LIMITATIONS.—The President may exceed the

dollar and time limitations in subsection (a)(2) if he certifies in

writing to the Congress that a financial crisis in that foreign country

poses a threat to vital United States economic interests or to the

stability of the international financial system.

(c) EXPEDITED PROCEDURES FOR A RESOLUTION OF DISAPPROVAL.—A presidential certification pursuant to subsection (b)

shall not take effect, if the Congress, within 30 calendar days

after receiving such certification, enacts a joint resolution of disapproval, as described in paragraph (5) of this subsection.

(1) REFERENCE TO COMMITTEES.—All joint resolutions introduced in the Senate to disapprove the certification shall be

referred to the Committee on Banking, Housing, and Urban

Affairs, and in the House of Representatives, to the appropriate

committees.

(2) DISCHARGE OF COMMITTEES.—(A) If the committee of

either House to which a resolution has been referred has not

reported it at the end of 15 days after its introduction, it

is in order to move either to discharge the committee from

further consideration of the joint resolution or to discharge

the committee from further consideration of any other resolution introduced with respect to the same matter, except no

motion to discharge shall be in order after the committee has

reported a joint resolution with respect to the same matter.

(B) A motion to discharge may be made only by an individual favoring the resolution, and is privileged in the Senate;

and debate thereon shall be limited to not more than 1 hour,

the time to be divided in the Senate equally between, and

controlled by, the majority leader and the minority leader or

their designees.

(3) FLOOR CONSIDERATION IN THE SENATE.—(A) A motion

in the Senate to proceed to the consideration of a resolution

shall be privileged.

(B) Debate in the Senate on a resolution, and all debatable

motions and appeals in connection therewith, shall be limited

to not more than 4 hours, to be equally divided between, and

controlled by, the majority leader and the minority leader or

their designees.

(C) Debate in the Senate on any debatable motion or appeal

in connection with a resolution shall be limited to not more

than 20 minutes, to be equally divided between, and controlled

by, the mover and the manager of the resolution, except that

in the event the manager of the resolution is in favor of any

such motion or appeal, the time in opposition thereto, shall

be controlled by the minority leader or his designee. Such

leaders, or either of them, may, from time under their control

on the passage of a resolution, allot additional time to any

Senator during the consideration of any debatable motion or

appeal.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–362

(D) A motion in the Senate to further limit debate on

a resolution, debatable motion, or appeal is not debatable.

No amendment to, or motion to recommit, a resolution is in

order in the Senate.

(4) In the case of a resolution, if prior to the passage

by one House of a resolution of that House, that House receives

a resolution with respect to the same matter from the other

House, then—

(A) the procedure in that House shall be the same

as if no resolution had been received from the other House;

but

(B) the vote on final passage shall be on the resolution

of the other House.

(5) For purposes of this subsection, the term ‘‘joint resolution’’ means only a joint resolution of the 2 Houses of Congress,

the matter after the resolving clause of which is as follows:

‘‘That the Congress disapproves the action of the President

under section 628(c) of the Treasury, Postal Service, and General Government Appropriations Act, 1997, notice of which

was submitted to the Congress on lllllll.’’, with the

blank space being filled with the appropriate date.

(d) APPLICABILITY.—This section—

(1) shall not apply to any action taken as part of the

program of assistance to Mexico announced by the President

on January 31, 1995; and

(2) shall remain in effect through fiscal year 1997.

SEC. 629. (a) TECHNICAL AMENDMENT.—Section 640 of Public

Law 104–52 (109 Stat. 513) is amended by striking ‘‘Service performed’’ and inserting ‘‘Hereafter, service performed’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall take effect as if included in Public Law 104–52 on the date

of its enactment.

SEC. 630. Notwithstanding any other provision of law, no part

of any appropriation contained in this Act for any fiscal year shall

be available for paying Sunday premium or differential pay to

any employee unless such employee actually performed work during

the time corresponding to such premium or differential pay.

SEC. 631. No part of any funds appropriated in this or any

other Act shall be used by an agency of the executive branch,

other than for normal and recognized executive-legislative relationships, for publicity or propaganda purposes, and for the preparation,

distribution or use of any kit, pamphlet, booklet, publication, radio,

television or film presentation designed to support or defeat legislation pending before the Congress, except in presentation to the

Congress itself.

SEC. 632. (a) The United States Courthouse under construction

at 1030 Southwest 3d Avenue in Portland, Oregon, shall be known

and designated as the ‘‘Mark O. Hatfield United States Courthouse’’.

(b) Any reference in a law, map, regulation, document, paper,

or other record of the United States to the courthouse referred

to in section 901 shall be deemed to be a reference to the ‘‘Mark

O. Hatfield United States Courthouse’’.

(c) This section shall take effect on January 2, 1997.

SEC. 633. SURVIVOR ANNUITY RESUMPTION UPON TERMINATION

OF MARRIAGE.—(a) AMENDMENTS.—

5 USC 8401 note.

5 USC 8401 note.
110 STAT. 3009–363 PUBLIC LAW 104–208—SEPT. 30, 1996

(1) CIVIL SERVICE RETIREMENT SYSTEM.—Section 8341(e)

of title 5, United States Code, is amended by adding at the

end the following:

‘‘(4) If the annuity of a child under this subchapter terminates

under paragraph (3)(E) because of marriage, then, if such marriage

ends, such annuity shall resume on the first day of the month

in which it ends, but only if—

‘‘(A) any lump sum paid is returned to the Fund; and

‘‘(B) that individual is not otherwise ineligible for such

annuity.’’.

(2) FEDERAL EMPLOYEES’ RETIREMENT SYSTEM.—Section

8443(b) of such title is amended by adding at the end the

following: ‘‘If the annuity of a child under this subchapter

terminates under subparagraph (E) because of marriage, then,

if such marriage ends, such annuity shall resume on the first

day of the month in which it ends, but only if any lump

sum paid is returned to the Fund, and that individual is not

otherwise ineligible for such annuity.’’.

(3) FEDERAL EMPLOYEES HEALTH BENEFITS.—Section 8908

of title 5, United States Code, is amended by adding at the

end of the following new subsection:

‘‘(d) A surviving child whose survivor annuity under section

8341(e) or 8443(b) was terminated and is later restored under

paragraph (4) of section 8341(e) or the last sentence of section

8443(b) may, under regulations prescribed by the Office, enroll

in a health benefits plan described by section 8903 or 8903a if

such surviving child was covered by any such plan immediately

before such annuity was terminated.’’.

(b) APPLICABILITY.—The amendments made by subsection (a)

shall apply with respect to any termination of marriage taking

effect before, on, or after the date of enactment of this Act, except

that benefits shall be payable only with respect to amounts accruing

for periods beginning on the first day of the month beginning

after the later of such termination of marriage or such date of

enactment.

SEC. 634. AVAILABILITY OF ANNUAL LEAVE FOR EMPLOYEES

AFFECTED BY REDUCTION IN FORCE.—Section 6302 of title 5, United

States Code, is amended by adding at the end of the following

new subsection:

‘‘(g) An employee who is being involuntarily separated from

an agency due to a reduction in force or transfer of function under

subchapter I of chapter 35 may elect to use annual leave to the

employee’s credit to remain on the agency’s rolls after the date

the employee would otherwise have been separated if, and only

to the extent that, such additional time in a pay status will enable

the employee to qualify for an immediate annuity under section

8336, 8412, 8414, or to qualify to carry health benefits coverage

into retirement under section 8905(b).’’.

SEC. 635. Section 207(e)(6)(B) of title 18, United States Code,

is amended by striking ‘‘level V of the Executive Schedule’’ and

inserting ‘‘level 5 of the Senior Executive Service’’.

SEC. 636. REIMBURSEMENTS RELATING TO PROFESSIONAL LIABILITY INSURANCE.—(a) AUTHORITY.—Notwithstanding any other provision of law, amounts appropriated by this Act (or any other Act

for fiscal year 1997 or any fiscal year thereafter) for salaries and

expenses may be used to reimburse any qualified employee for

not to exceed one-half the costs incurred by such employee for

5 USC prec. 5941

note.

5 USC 8341 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–364

professional liability insurance. A payment under this section shall

be contingent upon the submission of such information or documentation as the employing agency may require.

(b) QUALIFIED EMPLOYEE.—For purposes of this section, the

term ‘‘qualified employee’’ means an agency employee whose position is that of—

(1) a law enforcement officer; or

(2) a supervisor or management official.

(c) DEFINITIONS.—For purposes of this section—

(1) the term ‘‘agency’’ means an Executive agency, as

defined by section 105 of title 5, United States Code, and

any agency of the Legislative Branch of Government including

any office or committee of the Senate or the House of Representatives;

(2) the term ‘‘law enforcement officer’’ means an employee,

the duties of whose position are primarily the investigation,

apprehension, prosecution, or detention of individuals suspected

or convicted of offenses against the criminal laws of the United

States, including any law enforcement officer under section

8331(20) or 8401(17) of such title 5, or under section 4823

of title 22, United States Code;

(3) the terms ‘‘supervisor’’ and ‘‘management official’’ have

the respective meanings given them by section 7103(a) of such

title 5, and

(4) the term ‘‘professional liability insurance’’ means insurance which provides coverage for—

(A) legal liability for damages due to injuries to other

persons, damage to their property, or other damage or

loss to such other persons (including the expenses of litigation and settlement) resulting from or arising out of any

tortious act, error, or omission of the covered individual

(whether common law, statutory, or constitutional) while

in the performance of such individual’s official duties as

a qualified employee; and

(B) the cost of legal representation for the covered

individual in connection with any administrative or judicial

proceeding (including any investigation or disciplinary

proceeding) relating to any act, error, or omission of the

covered individual while in the performance of such individual’s official duties as a qualified employee, and other

legal costs and fees relating to any such administrative

or judicial proceeding.

(d) APPLICABILITY.—The amendments made by this section shall

take effect on the date of the enactment of this Act and shall

apply thereafter.

SEC. 637. For purposes of each provision of law amended by

section 704(a)(2) of the Ethics Reform Act of 1989 (5 U.S.C. 5318

note), no adjustment under section 5303 of title 5, United States

Code, shall be considered to have taken effect in fiscal year 1997

in the rates of basic pay for the statutory pay systems.

SEC. 638. For FY 1997, the Secretary of the Treasury is authorized to use funds made available to the FSLIC Resolution Fund

under P.L. 103–327, not to exceed $26.1 million, to reimburse

the Department of Justice for the reasonable expenses of litigation

that are incurred in the defense of claims against the U.S. arising

from FIRREA and its implementation.

5 USC 5303 note.
110 STAT. 3009–365 PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 639. Section 608 of Public Law 104–52 is amended in

the first sentence by inserting before the period, ‘‘, including Federal

records disposed of pursuant to a records schedule’’.

SEC. 640. In reviewing and analyzing the contracting out,

outsourcing or privatization of business and administrative functions, and in implementing 40 U.S.C. sections 1413 and 1423,

and other provisions, in title LI of the National Defense Authorization Act for fiscal year 1996 (the Information Technology Management Reform Act)—

(1) the Director of the Office of Management and Budget

and the heads of the executive agencies may have studies,

analyses, reviews and other management assistance performed

by the private sector;

(2) the reviews, analyses, and studies called for by 40

U.S.C. section 1413(b)(2) (B) and (C) shall be completed and

reported to the Agency Head within 180 days, or less measured

from when a study analysis or review is initiated unless the

Agency Head determines additional time is needed;

(3) in accordance with principles and rules governing

organizational conflicts of interest, persons involved in a

particular study may not compete for any work that is to

be or is outsourced as a result of that study; and

(4) this section will apply with respect to studies occurring

on or after the date of enactment of this subsection and completed before September 1, 1999 and the Comptroller General

of the United States shall review and provide an assessment

of this program by January 1, 1999.

SEC. 641. (a) SECTION 1—AUTHORIZATION OF APPROPRIATIONS.—

Section 8(a)(1) of the Whistleblower Protection Act of 1989 (5 U.S.C.

5509 note, Public Law 101–12, April 10, 1989, 103 Stat. 34, as

amended Public Law 103–424, Section 1, October 29, 1994, 108

Stat. 4361), is amended by striking the words: ‘‘1993, 1994, 1995,

1996, and 1997,’’ and inserting in lieu thereof ‘‘1998, 1999, 2000,

2001, and 2002’’.

(b) SECTION 2—EFFECTIVE DATE.—This Act shall take effect

on October 1, 1998.

SEC. 642. (a) SECTION 1.—AUTHORIZATION OF APPROPRIATIONS.—Section 8(a)(1) of the Whistleblower Protection Act of 1989

(5 U.S.C. 5509 note; Public Law 103–424; 103 Stat. 34) is amended

by striking out: ‘‘1993, 1994, 1995, 1996, and 1997,’’ and inserting

in lieu thereof ‘‘1998, 1999, 2000, 2001, and 2002’’.

(b) SECTION 2—EFFECTIVE DATE.—This Act shall take effect

on October 1, 1998.

SEC. 643. MODIFICATIONS OF NATIONAL COMMISSION ON

RESTRUCTURING THE INTERNAL REVENUE SERVICE.—(a) QUORUM.—

Paragraph (4) of section 637(b) of the Treasury, Postal Service,

and General Government Appropriations Act, 1996 (Public Law

104–52, 109 Stat. 510) is amended by striking ‘‘Seven’’ and inserting

‘‘Nine’’.

(b) CO-CHAIRS.—

(1) IN GENERAL.—Paragraph (3) of section 637(b) of such

Act is amended—

(A) by striking ‘‘a Chairman’’ and inserting ‘‘CoChairs’’, and

(B) by striking ‘‘Chairman’’ in the heading and inserting ‘‘Co-Chairs’’.

26 USC 7801

note.

5 USC 5509 note.

5 USC 5509 note.

40 USC 1411

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–366

(2) CONFORMING AMENDMENTS.—(A) Paragraph (5)(B) of

section 637(b) of such Act is amended by striking ‘‘a Chairman’’

and inserting ‘‘Co-Chairs’’.

(B) Subsections (b)(4), (d)(1)(B), (d)(3), and (e)(1) of section

637 of such Act are each amended by striking ‘‘Chairman’’

each place it appears and inserting ‘‘Co-Chairs’’.

(c) GIFTS.—Section 637(d) of such Act is amended by adding

at the end the following new paragraph:

‘‘(6) GIFTS.—The Commission may accept, use, and dispose

of gifts or donations of services or property in carrying out

its duties under this section.’’

(d) TRAVEL EXPENSES.—Section 637(f)(2) of such Act is amended

by striking ‘‘shall’’ and inserting ‘‘may’’.

(e) TIME FOR FILING REPORT.—

(1) IN GENERAL.—Paragraph (1) of section 637(g) of such Act

is amended by striking ‘‘one year’’ and inserting ‘‘15 months’’.

(2) CONFORMING AMENDMENT.—Subparagraph (A) of section

637(c)(1) of such Act is amended by striking ‘‘one year’’ and inserting

‘‘15 months’’.

(f) EFFECTIVE DATE.—The amendments made by this section

shall take effect as if included in the provisions of the Treasury,

Postal Service, and General Government Appropriations Act, 1996.

SEC. 644. (a) IN GENERAL.—Section 202(a) of title 39, United

States Code, is amended by striking ‘‘$10,000 a year’’ and inserting

‘‘$30,000 a year’’.

(b) EFFECTIVE DATE.—Subsection (a) shall take effect at the

beginning of the next applicable pay period beginning after the

date of the enactment of this Act.

SEC. 645. (a) IN GENERAL.—No later than September 30, 1997,

the Director of the Office of Management and Budget shall submit

to the Congress a report that provides—

(1) estimates of the total annual costs and benefits of

Federal regulatory programs, including quantitative and nonquantitative measures of regulatory costs and benefits;

(2) estimates of the costs and benefits (including quantitative and nonquantitative measures) of each rule that is

likely to have a gross annual effect on the economy of

$100,000,000 or more in increased costs;

(3) an assessment of the direct and indirect impacts of

Federal rules on the private sector, State and local government,

and the Federal Government; and

(4) recommendations from the Director and a description

of significant public comments to reform or eliminate any Federal regulatory program or program element that is inefficient,

ineffective, or is not a sound use of the Nation’s resources.

(b) NOTICE.—The Director shall provide public notice and an

opportunity to comment on the report under subsection (a) before

the report is issued in final form.

SEC. 646. Subsection (b) of section 404 of Public Law 103–

356 is amended by deleting ‘‘September 30, 1997’’ and inserting

‘‘December 31, 1999’’.

SEC. 647. (a) Notwithstanding any other provision of law, the

Secretary shall, on behalf of the United States, transfer to the

University of Miami, without charge, title to the real property

and improvements that as of the date of the enactment of this

Act constitute the Federal facility known as the Perrine Primate

31 USC 501 note.

39 USC 202 note.

26 USC 7801

note.
110 STAT. 3009–367 PUBLIC LAW 104–208—SEPT. 30, 1996

Center, subject to the condition that, during the 10-year period

beginning on the date of the transfer—

(1) the University will provide for the continued use of

the real property and improvements as an animal research

facility, including primates, and such use will be the exclusive

use of the property (with such incidental exceptions as the

Secretary may approve); or

(2) the real property and improvements will be used for

research-related purposes other than the purpose specified in

paragraph (1) (or for both of such purposes), if the Secretary

and the University enter into an agreement accordingly.

(b) The conveyance under subsection (a) shall not become effective unless the conveyance specifies that, if the University of Miami

engages in a material breach of the conditions specified in such

subsection, title to the real property and improvements involved

reverts to the United States at the election of the Secretary.

(c) The real property referred to in subsections (a) and (b)

is located in the county of Dade in the State of Florida, and

is a parcel consisting of the northernmost 30 acre-parcel of the

area. The exact acreage and legal description used for purposes

of the transfer under subsection (a) shall be in accordance with

a survey that is satisfactory to the Secretary.

(d) For the purposes of this section—

(1) the term ‘‘Secretary’’ means the Secretary of Health

and Human Services; and

(2) the term ‘‘University of Miami’’ means the University

of Miami located in the State of Florida.

SEC. 648. (a) INCREASED PENALTIES FOR COUNTERFEITING VIOLATIONS.—Sections 474 and 474A of title 18, United States Code,

are amended by striking ‘‘class C felony’’ each place that term

appears and inserting ‘‘class B felony’’.

(b) CRIMINAL PENALTY FOR PRODUCTION, SALE, TRANSPORTATION, POSSESSION OF FICTITIOUS FINANCIAL INSTRUMENTS

PURPORTING TO BE THOSE OF THE STATES, OF POLITICAL SUBDIVISIONS, AND OF PRIVATE ORGANIZATIONS.—

(1) IN GENERAL.—Chapter 25 of title 18, United States

Code, is amended by inserting after section 513, the following

new section:

‘‘§ 514. Fictitious obligations

‘‘(a) Whoever, with the intent to defraud—

‘‘(1) draws, prints, processes, produces, publishes, or otherwise makes, or attempts or causes the same, within the United

States;

‘‘(2) passes, utters, presents, offers, brokers, issues, sells,

or attempts or causes the same, or with like intent possesses,

within the United States; or

‘‘(3) utilizes interstate or foreign commerce, including the

use of the mails or wire, radio, or other electronic communication, to transmit, transport, ship, move, transfer, or attempts

or causes the same, to, from, or through the United States,

any false or fictitious instrument, document, or other item appearing, representing, purporting, or contriving through scheme or artifice, to be an actual security or other financial instrument issued

under the authority of the United States, a foreign government,

a State or other political subdivision of the United States, or an

organization, shall be guilty of a class B felony.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–368

‘‘(b) For purposes of this section, any term used in this section

that is defined in section 513(c) has the same meaning given such

term in section 513(c).

‘‘(c) The United States Secret Service, in addition to any other

agency having such authority, shall have authority to investigate

offenses under this section.’’.

(2) TECHNICAL AMENDMENT.—The analysis for chapter 25

of title 18, United States Code, is amended by inserting after

the item relating to section 513 the following:

‘‘514. Fictitious obligations.’’.

(c) PERIOD OF EFFECT.—This section and the amendments made

by this section shall become effective on the date of enactment

of this Act and shall remain in effect during each fiscal year

following that date of enactment.

SEC. 649. None of the funds appropriated by this Act may

be used by an agency to provide a Federal employee’s home address

to any labor organization except when it is made known to the

Federal official having authority to obligate or expend such funds

that the employee has authorized such disclosure or that such

disclosure has been ordered by a court of competent jurisdiction.

SEC. 650. (a) No later than 45 days after the date of the

enactment of this Act, the Inspector General of each Federal department or agency that uses administratively uncontrollable overtime

in the pay of any employee shall—

(1) conduct an audit on the use of administratively

uncontrollable overtime by employees of such department or

agency, which shall include—

(A) an examination of the policies, extent, costs, and

other relevant aspects of the use of administratively

uncontrollable overtime at the department or agency; and

(B) a determination of whether the eligibility criteria

of the department or agency and payment of administratively uncontrollable overtime comply with Federal statutory and regulatory requirements; and

(2) submit a report of the findings and conclusions of such

audit to—

(A) the Office of Personnel Management;

(B) the Governmental Affairs Committee of the Senate;

and

(C) the Government Reform and Oversight Committee

of the House of Representatives.

(b) No later than 30 days after the submission of the report

under subsection (a), the Office of Personnel Management shall

issue revised guidelines to all Federal departments and agencies

that—

(1) limit the use of administratively uncontrollable overtime

to employees meeting the statutory intent of section 5545(c)(2)

of title 5, United States Code; and

(2) expressly prohibit the use of administratively uncontrollable overtime for—

(A) customary or routine work duties; and

(B) work duties that are primarily administrative in

nature, or occur in noncompelling circumstances.

SEC. 651. Notwithstanding section 8116 of title 5, United States

Code, and in addition to any payment made under 5 U.S.C. 8101

et seq., beginning in fiscal year 1997 and thereafter, the head

5 USC 8133 note.

18 USC 474 note.
110 STAT. 3009–369 PUBLIC LAW 104–208—SEPT. 30, 1996

of any department or agency is authorized to pay from appropriations made available to the department or agency a death gratuity

to the personal representative (as that term is defined by applicable

law) of a civilian employee of that department or agency whose

death resulted from an injury sustained in the line of duty on

or after August 2, 1990: Provided, That payments made pursuant

to this section, in combination with the payments made pursuant

to sections 8133(f) and 8134(a) of such title 5 and section 312

of Public Law 103–332 (108 Stat. 2537), may not exceed a total

of $10,000 per employee.

SEC. 653. (a) AUTHORIZATION.—The Secretary of the Treasury

is authorized to establish scientific certification standards for explosives detection canines, and shall provide, on a reimbursable basis,

for the certification of explosives detection canines employed by

Federal agencies, or other agencies providing explosives detection

services at airports in the United States.

(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized

to be appropriated such sums as may be necessary to carry out

the purposes of this section.

SEC. 654. NATIONAL REPOSITORY FOR INFORMATION ON EXPLOSIVES INCIDENTS AND ARSON.

(a) Section 846 of title 18, United States Code, is amended

by—

(1) designating the existing section as subsection (a);

and

(2) by adding the following new subsection (b) to read

as follows:

‘‘(b) The Secretary is authorized to establish a national

repository of information on incidents involving arson and the

suspected criminal misuse of explosives. All Federal agencies

having information concerning such incidents shall report the

information to the Secretary pursuant to such regulations as

deemed necessary to carry out the provisions of this subsection.

The repository shall also contain information on incidents voluntarily reported to the Secretary by State and local authorities.’’.

(b) There is authorized to be appropriated such sums as

may be necessary to carry out the provisions of this subsection.

SEC. 655. Section 5(c)(1) of Public Law 102–259 (20 U.S.C.

5603(c)(1)) is amended—

(1) in subparagraph (A)(iii), by striking ‘‘and’’ after the

semicolon;

(2) in subparagraph (B), by striking the period and inserting ‘‘; and’’; and

(3) by adding after subparagraph (B) the following:

‘‘(C) a Trustee may serve after the expiration of the Trustee’s term until a successor has been chosen.’’.

SEC. 656. Notwithstanding any other provision of law, the

Secretary of the Interior, through the Bureau of Indian Affairs,

may directly transfer to Indian tribes in North and South Dakota

portable housing units at the Grand Forks Air Force base in North

Dakota which have been declared excess by the Department of

Defense and requested for transfer by the Department of the

Interior.

SEC. 657. Section 922(q) of title 18, United States Code, is

amended to read as follows:

‘‘(q)(1) The Congress finds and declares that—

18 USC 846 note.

18 USC 846 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–370

‘‘(A) crime, particularly crime involving drugs and guns,

is a pervasive, nationwide problem;

‘‘(B) crime at the local level is exacerbated by the interstate

movement of drugs, guns, and criminal gangs;

‘‘(C) firearms and ammunition move easily in interstate

commerce and have been found in increasing numbers in and

around schools, as documented in numerous hearings in both

the Committee on the Judiciary the House of Representatives

and the Committee on the Judiciary of the Senate;

‘‘(D) in fact, even before the sale of a firearm, the gun,

its component parts, ammunition, and the raw materials from

which they are made have considerably moved in interstate

commerce;

‘‘(E) while criminals freely move from State to State, ordinary citizens and foreign visitors may fear to travel to or

through certain parts of the country due to concern about

violent crime and gun violence, and parents may decline to

send their children to school for the same reason;

‘‘(F) the occurrence of violent crime in school zones has

resulted in a decline in the quality of education in our country;

‘‘(G) this decline in the quality of education has an adverse

impact on interstate commerce and the foreign commerce of

the United States;

‘‘(H) States, localities, and school systems find it almost

impossible to handle gun-related crime by themselves—even

States, localities, and school systems that have made strong

efforts to prevent, detect, and punish gun-related crime find

their efforts unavailing due in part to the failure or inability

of other States or localities to take strong measures; and

‘‘(I) the Congress has the power, under the interstate commerce clause and other provisions of the Constitution, to enact

measures to ensure the integrity and safety of the Nation’s

schools by enactment of this subsection.

‘‘(2)(A) It shall be unlawful for any individual knowingly to

possess a firearm that has moved in or that otherwise affects

interstate or foreign commerce at a place that the individual knows,

or has reasonable cause to believe, is a school zone.

‘‘(B) Subparagraph (A) does not apply to the possession of

a firearm—

‘‘(i) on private property not part of school grounds;

‘‘(ii) if the individual possessing the firearm is licensed

to do so by the State in which the school zone is located

or a political subdivision of the State, and the law of the

State or political subdivision requires that, before an individual

obtains such a license, the law enforcement authorities of the

State or political subdivision verify that the individual is qualified under law to receive the license;

‘‘(iii) that is—

‘‘(I) not loaded; and

‘‘(II) in a locked container, or a locked firearms rack

that is on a motor vehicle;

‘‘(iv) by an individual for use in a program approved by

a school in the school zone;

‘‘(v) by an individual in accordance with a contract entered

into between a school in the school zone and the individual

or an employer of the individual;
110 STAT. 3009–371 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(vi) by a law enforcement officer acting in his or her

official capacity; or

‘‘(vii) that is unloaded and is possessed by an individual

while traversing school premises for the purpose of gaining

access to public or private lands open to hunting, if the entry

on school premises is authorized by school authorities.

‘‘(3)(A) Except as provided in subparagraph (B), it shall be

unlawful for any person, knowingly or with reckless disregard for

the safety of another, to discharge or attempt to discharge a firearm

that has moved in or that otherwise affects interstate or foreign

commerce at a place that the person knows is a school zone.

‘‘(B) Subparagraph (A) does not apply to the discharge of a

firearm—

‘‘(i) on private property not part of school grounds;

‘‘(ii) as part of a program approved by a school in the

school zone, by an individual who is participating in the program;

‘‘(iii) by an individual in accordance with a contract entered

into between a school in a school zone and the individual

or an employer of the individual; or

‘‘(iv) by a law enforcement officer acting in his or her

official capacity.

‘‘(4) Nothing in this subsection shall be construed as preempting

or preventing a State or local government from enacting a statute

establishing gun free school zones as provided in this subsection.’’.

SEC. 658. GUN BAN FOR INDIVIDUALS CONVICTED OF A MISDEMEANOR

CRIME OF DOMESTIC VIOLENCE.

(a) DEFINITION.—Section 921(a) of title 18, United States Code,

is amended by adding at the end the following:

‘‘(33)(A) Except as provided in subparagraph (C), the term

‘misdemeanor crime of domestic violence’ means an offense

that—

‘‘(i) is a misdemeanor under Federal or State law;

and

‘‘(ii) has, as an element, the use or attempted use

of physical force, or the threatened use of a deadly weapon,

committed by a current or former spouse, parent, or guardian of the victim, by a person with whom the victim shares

a child in common, by a person who is cohabiting with

or has cohabited with the victim as a spouse, parent, or

guardian, or by a person similarly situated to a spouse,

parent, or guardian of the victim.

‘‘(B)(i) A person shall not be considered to have been convicted of such an offense for purposes of this chapter, unless—

‘‘(I) the person was represented by counsel in the case,

or knowingly and intelligently waived the right to counsel

in the case; and

(II) in the case of a prosecution for an offense described

in this paragraph for which a person was entitled to a

jury trial in the jurisdiction in which the case was tried,

either

(aa) the case was tried by a jury, or

(bb) the person knowingly and intelligently waived

the right to have the case tried by a jury, by guilty

plea or otherwise.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–372

‘‘(ii) A person shall not be considered to have been convicted

of such an offense for purposes of this chapter if the conviction

has been expunged or set aside, or is an offense for which

the person has been pardoned or has had civil rights restored

(if the law of the applicable jurisdiction provides for the loss

of civil rights under such an offense) unless the pardon,

expungement, or restoration of civil rights expressly provides

that the person may not ship, transport, possess, or receive

firearms.’’.

(b) PROHIBITIONS.—

(1) Section 922(d) of such title is amended—

(A) by striking ‘‘or’’ at the end of paragraph (7);

(B) by striking the period at the end of paragraph

(8) and inserting ‘‘; or’’; and

(C) by inserting after paragraph (8) the following:

‘‘(9) has been convicted in any court of a misdemeanor

crime of domestic violence.’’.

(2) Section 922(g) of such title is amended—

(A) by striking ‘‘or’’ at the end of paragrph (7);

(B) by striking the comma at the end of paragraph

(8) and inserting ‘‘; or’’; and

(C) by inserting after paragraph (8) the following:

‘‘(9) who has been convicted in any court of a misdemeanor

crime of domestic violence,’’.

(3) Section 922(s)(3)(B)(i) of such title is amended by inserting ‘‘, and has not been convicted in any court of a misdemeanor

crime of domestic violence’’ before this semicolon.

(c) GOVERNMENT ENTITIES NOT EXCEPTED.—Section 925(a)(1)

of such title is amended by inserting ‘‘sections 922(d)(9) and

922(g)(9) and’’ after ‘‘except for’’.

SEC. 659. THRIFT SAVINGS PLAN.

TITLE I—ADDITIONAL INVESTMENT FUNDS FOR THE THRIFT SAVINGS

PLAN

SEC. 101. SHORT TITLE

This title may be cited as the ‘‘Thrift Savings Investment Funds

Act of 1996’’.

SEC. 102. ADDITIONAL INVESTMENT FUNDS FOR THE THRIFT SAVINGS

PLAN

Section 8438 of title 5, United States Code, is amended—

(1) in subsection (a)—

(A) by redesignating paragraphs (5) through (8) as

paragraphs (6) through (9), respectively;

(B) by inserting after paragraph (4) the following new

paragraph:

‘‘(5) the term ‘International Stock Index Investment Fund’

means the International Stock Index Investment Fund established under subsection (b)(1)(E);’’;

(C) in paragraph (8) (as redesignated by subparagraph

(A) of this paragraph) by striking out ‘‘and’’ at the end

thereof;

(D) in paragraph (9) (as redesignated by subparagraph

(A) of this paragraph)—

Thrift Savings

Investment

Funds Act of

1996.

5 USC 8401 note.
110 STAT. 3009–373 PUBLIC LAW 104–208—SEPT. 30, 1996

(i) by striking out ‘‘paragraph (7)(D)’’ in each place

it appears and inserting in each such place ‘‘paragraph

(8)(D)’’; and

(ii) by striking out the period and inserting in

lieu thereof a semicolon and ‘‘and’’; and

(E) by adding at the end thereof the following new

paragraph:

‘‘(10) the term ‘Small Capitalization Stock Index Investment Fund’ means the Small Capitalization Stock Index Investment Fund established under subsection (b)(1)(D).’’; and

(2) in subsection (b)—

(A) in paragraph (1)—

(i) in subparagraph (B) by striking out ‘‘and’’ at

the end thereof;

(ii) in subparagraph (C) by striking out the period

and inserting in lieu thereof a semicolon; and

(iii) by adding at the end thereof the following

new subparagraphs:

‘‘(D) a Small Capitalization Stock Index Investment

Fund as provided in paragraph (3); and

‘‘(E) an International Stock Index Investment Fund

as provided in paragraph (4).’’; and

(B) by adding at the end thereof the following new

paragraphs:

‘‘(3)(A) The Board shall select an index which is a commonly

recognized index comprised of common stock the aggregate

market value of which represents the United States equity

markets excluding the common stocks included in the Common

Stock Index Investment Fund.

‘‘(B) The Small Capitalization Stock Index Investment Fund

shall be invested in a portfolio designed to replicate the

performance of the index in subparagraph (A). The portfolio

shall be designed such that, to the extent practicable, the

percentage of the Small Capitalization Stock Index Investment

Fund that is invested in each stock is the same as the percentage determined by dividing the aggregate market value of

all shares of that stock by the aggregate market value of

all shares of all stocks included in such index.

‘‘(4)(A) The Board shall select an index which is a commonly

recognized index comprised of stock the aggregate market value

of which is a reasonably complete representation of the international equity markets excluding the United States equity

markets.

‘‘(B) The International Stock Index Investment Fund shall

be invested in a portfolio designed to replicate the performance

of the index in subparagraph (A). The portfolio shall be designed

such that, to the extent practicable, the percentage of the

International Stock Index Investment Fund that is invested

in each stock is the same as the percentage determined by

dividing the aggregate market value of all shares of that stock

by the aggregate market value of all shares of all stocks

included in such index.’’.

SEC. 103. ACKNOWLEDGEMENT OF INVESTMENT RISK

Section 8439(d) of title 5, United States Code, is amended

by striking out ‘‘Each employee, Member, former employee, or

former Member who elects to invest in the Common Stock Index
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–374

Investment Fund or the Fixed Income Investment Fund described

in paragraphs (1) and (3),’’ and inserting in lieu thereof ‘‘Each

employee, Member, former employee, or former Member who elects

to invest in the Common Stock Index Investment Fund, the Fixed

Income Investment Fund, the International Stock Index Investment

Fund, or the Small Capitalization Stock Index Investment Fund,

defined in paragraphs (1), (3), (5), and (10),’’.

SEC. 104. EFFECTIVE DATE

This title shall take effect on the date of enactment of this

Act, and the Funds established under this title shall be offered

for investment at the earliest practicable election period (described

in section 8432(b) of title 5, United States Code) as determined

by the Executive Director in regulations.

TITLE II—THRIFT SAVINGS ACCOUNTS LIQUIDITY

SEC. 201. SHORT TITLE

This title may be cited as the ‘‘Thrift Savings Plan Act of

1996’’.

SEC. 202. NOTICE TO SPOUSES FOR IN-SERVICE WITHDRAWALS; DE

MINIMUS ACCOUNTS; CIVIL SERVICE RETIREMENT SYSTEM PARTICIPANTS

Section 8351(b) of title 5, United States Code, is amended—

(1) in paragraph (5)—

(A) in subparagraph (B)—

(i) by striking out ‘‘An election, change of election,

or modification (relating to the commencement date

of a deferred annuity)’’ and inserting in lieu thereof

‘‘An election or change of election’’;

(ii) by inserting ‘‘or withdrawal’’ after ‘‘and a loan’’;

(iii) by inserting ‘‘and (h)’’ after ‘‘8433(g)’’;

(iv) by striking out ‘‘the election, change of election,

or modification’’ and inserting in lieu thereof ‘‘the election or change of election’’; and

(v) by inserting ‘‘or withdrawal’’ after ‘‘for such

loan’’; and

(B) in subparagraph (D)—

(i) by inserting ‘‘or withdrawals’’ after ‘‘of loans’’;

and

(ii) by inserting ‘‘or (h)’’ after ‘‘8433(g)’’; and

(2) in paragraph (6)— (A) by striking out ‘‘$3,500 or less’’ and inserting in

lieu thereof ‘‘less than an amount that the Executive Director prescribes by regulation’’; and

(B) by striking out ‘‘unless the employee or Member

elects, at such time and otherwise in such manner as

the Executive Director prescribes, one of the options available under subsection (b)’’.

SEC. 203. IN-SERVICE WITHDRAWALS; WITHDRAWAL ELECTIONS, FEDERAL EMPLOYEES RETIREMENT SYSTEM PARTICIPANTS

(a) IN GENERAL.—Section 8433 of title 5, United States Code,

is amended—

(1) by striking out subsections (b) and (c) and inserting

in lieu thereof the following:

5 USC 8401 note.

Thrift Savings

Plan Act of 1996.

5 USC 8438 note.
110 STAT. 3009–375 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(b) Subject to section 8435 of this title, any employee or Member who separates from Government employment is entitled and

may elect to withdraw from the Thrift Savings Fund the balance

of the employee’s or Member’s account as—

‘‘(1) an annuity;

‘‘(2) a single payment;

‘‘(3) 2 or more substantially equal payments to be made

not less frequently than annually; or

‘‘(4) any combination of payments as provided under paragraphs (1) through (3) as the Executive Director may prescribe

by regulation.

‘‘(c)(1) In addition to the right provided under subsection (b)

to withdraw the balance of the account, an employee or Member

who separates from Government service and who has not made

a withdrawal under subsection (h)(1)(A) may make one withdrawal

of any amount as a single payment in accordance with subsection

(b)(2) from the employee’s or Member’s account.

‘‘(2) An employee or Member may request that the amount

withdrawn from the Thrift Savings Fund in accordance with subsection (b)(2) be transferred to an eligible retirement plan.

‘‘(3) The Executive Director shall make each transfer elected

under paragraph (2) directly to an eligible retirement plan or plans

(as defined in section 402(c)(8) of the Internal Revenue Code of

1986) identified by the employee, Member, former employee, or

former Member for whom the transfer is made.

‘‘(4) A transfer may not be made for an employee, Member,

former employee, or former Member under paragraph (2) until

the Executive Director receives from that individual the information

required by the Executive Director specifically to identify the eligible

retirement plan or plans to which the transfer is to be made.’’;

(2) in subsection (d)—

(A) in paragraph (1) by striking out ‘‘Subject to paragraph (3)(A)’’ and inserting in lieu thereof ‘‘Subject to paragraph (3)’’;

(B) by striking out paragraph (2) and redesignating

paragraph (3) as paragraph (2); and

(C) in paragraph (2) (as redesignated under subparagraph (B) of this paragraph)—

(i) in subparagraph (A) by striking out ‘‘(A) by

striking out ‘‘(A)’’; and

(ii) by striking out subparagraph (B);

(3) in subsection (f)(1)—

(A) by striking out ‘‘$3,500 or less’’ and inserting in

lieu thereof ‘‘less than an amount that the Executive Director prescribes by regulation; and

(B) by striking out ‘‘unless the employee or Member

elects, at such time and otherwise in such manner as

the Executive Director prescribes, one of the options available under subsection (b), or’’ and inserting a comma;

(4) in subsection (f)(2)—

(A) by striking out ‘‘February 1’’ and inserting in lieu

thereof ‘‘April 1’’;

(B) in subparagraph (A)—

(i) by striking out ‘‘65’’ and inserting in lieu thereof

‘‘701⁄2’’; and

(ii) by inserting ‘‘or’’ after the semicolon;

(C) by striking out subparagraph (B); and
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–376

(D) by redesignating subparagraph (C) as subparagraph (B);

(5) in subsection (g)—

(A) in paragraph (1) by striking out ‘‘after December

31, 1987, and’’, and by adding at the end of the paragraph

the following sentence: ‘‘Before a loan is issued, the Executive Director shall provide in writing the employee or Member with appropriate information concerning the cost of

the loan relative to other sources of financing, as well

as the lifetime cost of the loan, including the difference

in interest rates between the funds offered by the Thrift

Savings Fund, and any other effect of such loan on the

employee’s or Member’s final account balance.’’; and

(B) by striking out paragraph (2) and redesignating

paragraphs (3) through (5) as paragraphs (2) through (4),

respectively; and

(6) by adding after subsection (g) the following new subsection:

‘‘(h)(1) An employee or Member may apply, before separation,

to the Board for permission to withdraw an amount from the

employee’s or Member’s account based upon—

‘‘(A) the employee or Member having attained age 591⁄2;

or

‘‘(B) financial hardship.

‘‘(2) A withdrawal under paragraph (1)(A) shall be available

to each eligible participant one time only.

‘‘(3) A withdrawal under paragraph (1)(B) shall be available

only for an amount not exceeding the value of that portion of

such account which is attributable to contributions made by the

employee or Member under section 8432(a) of this title.

‘‘(4) Withdrawals under paragraph (1) shall be subject to such

other conditions as the Executive Director may prescribe by regulation.

‘‘(5) A withdrawal may not be made under this subsection

unless the requirements of section 8435(e) of this title are satisfied.’’.

(b) INVALIDITY OF CERTAIN PRIOR ELECTIONS.—Any election

made under section 8433(b)(2) of title 5, United States Code (as

in effect before the effective date of this title), with respect to

an annuity which has not commenced before the implementation

date of this title as provided by regulation by the Executive Director

in accordance with section 207 of this title, shall be invalid.

SEC. 204. SURVIVOR ANNUITIES FOR FORMER SPOUSES; NOTICE TO

FEDERAL EMPLOYEES RETIREMENT SYSTEM SPOUSES FOR IN-SERV- ICE WITHDRAWALS

Section 8435 of title 5, United States Code, is amended—

(1) in subsection (a)(1)(A)—

(A) by striking out ‘‘may make an election under subsection (b)(3) or (b)(4) or section 8433 of this title or change

an election previously made under subsection (b)(1) or (b)(2)

of such section’’ and inserting in lien thereof ‘‘may withdraw

all or part of a Thrift Savings Fund account under subsection (b) (2), (3), or (4) of section 8433 of this title or

change a withdrawal election’’; and

(B) by adding at the end thereof ‘‘A married employee

or Member (or former employee or Member) may make

a withdrawal from a Thrift Savings Fund account under

5 USC 8433 note.
110 STAT. 3009–377 PUBLIC LAW 104–208—SEPT. 30, 1996

subsection (c)(1) of section 8433 of this title only if the

employee or Member (or former employee or Member) satisfies the requirements of subparagraph (B).’’;

(2) in subsection (c)—

(A) in paragraph (1)—

(i) by striking out ‘‘An election, change of election,

or modification of the commencement date of a deferred

annuity’’ and inserting in lieu thereof ‘‘An election

or change of election’’; and

(ii) by striking out ‘‘modification, or transfer’’ and inserting

in lien thereof ‘‘or transfer’’; and

(B) in paragraph (2) in the matter following subparagraph (B)(ii) by striking out ‘‘modification,’’;

(3) in subsection (e)—

(A) in paragraph (1)—

(i) in subparagraph (A)—

(I) by inserting ‘‘or withdrawal’’ after ‘‘A loan’’;

(II) by inserting ‘‘and (h)’’ after ‘‘8433(g)’’; and

(III) by inserting ‘‘or withdrawal’’ after ‘‘such

loan’’;

(ii) in subparagraph (B) by inserting ‘‘or withdrawal’’ after ‘‘loan’’; and

(iii) in subparagraph (C)—

(I) by inserting ‘‘or withdrawal’’ after ‘‘to a

loan’’; and

(II) by inserting ‘‘or withdrawal’’ after ‘‘for such

loan’’; and

(B) in paragraph (2)—

(i) by inserting ‘‘or withdrawal’’ after ‘‘loan’’; and

(ii) by inserting ‘‘and (h)’’ after ‘‘8344(g)’’; and

(4) in subsection (g)—

(A) by inserting ‘‘or withdrawals’’ after ‘‘loans’’; and

(B) by inserting ‘‘and (h)’’ after ‘‘8344(g)’’.

SEC. 205. DE MINIMUS ACCOUNTS RELATING TO THE JUDICIARY

(a) JUSTICES AND JUDGES.—Section 8440a(b)(7) of title 5, United

States Code, is amended—

(1) by striking out ‘‘$3,500 or less’’ and inserting in lieu

thereof ‘‘less than an amount that the Executive Director prescribes by regulation’’; and

(2) by striking out ‘‘unless the justice or judge elects, at

such time and otherwise in such manner as the Executive

Director prescribes, one of the options available under section

8433(b)’’.

(b) BANKRUPTCY JUDGES AND MAGISTRATES.—Section 8440b(b)

of title 5, United States Code, is amended—

(1) in paragraph (7) in the first sentence by inserting

‘‘of the distribution’’ after ‘‘equal to the amount’’; and

(2) in paragraph (8)—

(A) by striking out ‘‘$3,500 or less’’ and inserting in

lieu thereof ‘‘less than an amount that the Executive Director prescribes by regulation’’; and

(B) by striking out ‘‘unless the bankruptcy judge or

magistrate elects, at such time and otherwise in such manner as the Executive Director prescribes, one of the options

available under subsection (b)’’.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–378

(c) FEDERAL CLAIMS JUDGES.—Section 8440c(b) of title 5, United

States Code, is amended—

(1) in paragraph (7) in the first sentence by inserting

‘‘of the distribution’’ after ‘‘equal to the amount’’; and

(2) in paragraph (8)—

(A) by striking out ‘‘$3,500 or less’’ and inserting in

lieu thereof ‘‘less than an amount that the Executive Director prescribes by regulation’’; and

(B) by striking out ‘‘unless the judge elects, at such

time and otherwise in such manner as the Executive Director prescribes, one of the options available under section

8433(b)’’.

SEC. 206. DEFINITION OF BASIC PAY

(a) IN GENERAL.—(1) Section 8401(4) of title 5, United States

Code, is amended by striking out ‘‘except as provided in subchapter

III of this chapter,’’.

(2) Section 8431 of title 5, United States Code, is repealed.

(b) TECHNICAL AND CONFORMING AMENDMENTS.—(1) The table

of sections for chapter 84 of title 5, United States Code, is amended

by striking out the item relating to section 8431.

(2) Section 5545a(h)(2)(A) of title 5, United States Code, is

amended by striking out ‘‘8431,’’.

(3) Section 615(f) of the Treasury, Postal Service, and General

Government Appropriations Act, 1996 (Public Law 104–52; 109

Stat. 500; 5 U.S.C. 5343 note) is amended by striking out ‘‘section

8431 of title 5, United States Code,’’.

SEC. 207. EFFECTIVE DATE

This title shall take effect on the date of the enactment of

this Act and withdrawals and elections as provided under the

amendments made by this title shall be made at the earliest practicable date as determined by the Executive Director in regulations.

SEC. 660. Notwithstanding Section 613, interagency financing

is authorized to carry out the purposes of the National Bioethics

Advisory Commission.

SEC. 661. (a) DESIGNATION.—The United States courthouse to

be constructed at 111 South 18th Plaza, Omaha, Nebraska, shall

be known and designated as the ‘‘Roman L. Hruska United States

Courthouse’’.

(b) REFERENCES.—Any reference in a law, map, regulation,

document, paper, or other record of the United States to the United

States courthouse referred to in section 1 shall be deemed to be

a reference to the ‘‘Roman L. Hruska United States Courthouse’’.

SEC. 662. (a) PROVISIONS RELATING TO TITLE 39, UNITED STATES

CODE.—

‘‘(1) APPOINTMENT AND REMOVAL OF INSPECTOR GENERAL.—

Section 202 of title 39, United States Code, is amended by

adding at the end the following:

‘‘(e)(1) The Governors shall appoint and shall have the power

to remove the Inspector General.

‘‘(2) The Inspector General shall be appointed—

‘‘(A) for a term of 7 years;

‘‘(B) without regard to political affiliation; and

‘‘(C) solely on the basis of integrity and demonstrated ability in accounting, auditing, financial analysis, law, management

analysis, public administration, or investigations.

5 USC 5545a

note.
110 STAT. 3009–379 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(3) The Inspector General may at any time be removed upon

the written concurrence of at least 7 Governors, but only for cause.

Nothing in this subsection shall be considered to exempt the Governors from the requirements of section 8G(e) of the Inspector

General Act of 1978.’’.

(2) DEFINITION.—Section 102 of title 39, United States

Code, is amended—

(A) by striking ‘‘and’’ at the end of paragraph (2);

(B) by striking the period at the end of paragraph

(3) and inserting ‘‘; and’’; and

(C) by adding at the end the following:

‘‘(4) ‘Inspector General’ means the Inspector General

appointed under section 202(e) of this title.’’.

(3) SEPARATE ITEM IN ANNUAL BUDGET.—For purposes of

the fifth sentence of section 2009 of title 39, United States

Code, the operations of the Office of Inspector General of the

United States Postal Service shall be considered a major type

of activity.

(b) AMENDMENTS TO THE INSPECTOR GENERAL ACT OF 1978.—

(1) GOVERNORS AS HEAD OF THE POSTAL SERVICE.—Section

8G(a)(4) of the Inspector General Act of 1978 (5 U.S.C. App.)

is amended by striking ‘‘except that’’ and all that follows

through the semicolon and inserting ‘‘except that—

‘‘(A) with respect to the National Science Foundation,

such term means the National Science Board; and

‘‘(B) with respect to the United States Postal Service,

such term means the Governors (within the meaning of

section 102(3) of title 39, United States Code);’’.

(2) SPECIAL RULES RELATING TO THE UNITED STATES POSTAL

SERVICE.—Subsection (f) of section 8G of such Act is amended

to read as follows:

‘‘(f)(1) For purposes of carrying out subsection (c) with respect

to the United States Postal Service, the appointment provisions

of section 202(e) of title 39, United States Code, shall be applied.

‘‘(2) In carrying out the duties and responsibilities specified

in this Act, the Inspector General of the United States Postal

Service (hereinafter in this subsection referred to as the ‘Inspector

General’) shall have oversight responsibility for all activities of

the Postal Inspection Service, including any internal investigation

performed by the Postal Inspection Service. The Chief Postal Inspector shall promptly report the significant activities being carried

out by the Postal Inspection Service to such Inspector General.

‘‘(3)(A)(i) Notwithstanding subsection (d), the Inspector General

shall be under the authority, direction, and control of the Governors

with respect to audits or investigations, or the issuance of subpoenas, which require access to sensitive information concerning—

‘‘(I) ongoing civil or criminal investigations or proceedings;

‘‘(II) undercover operations;

‘‘(III) the identity of confidential sources, including protected witnesses;

‘‘(IV) intelligence or counterintelligence matters; or

‘‘(V) other matters the disclosure of which would constitute

a serious threat to national security.

‘‘(ii) With respect to the information described under clause

(i), the Governors may prohibit the Inspector General from carrying

out or completing any audit or investigation, or from issuing any

subpoena, after such Inspector General has decided to initiate,

39 USC 2009

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–380

carry out, or complete such audit or investigation or to issue such

subpoena, if the Governors determine that such prohibition is necessary to prevent the disclosure of any information described under

clause (i) or to prevent the significant impairment to the national

interests of the United States.

‘‘(iii) If the Governors exercise any power under clause (i) or

(ii), the Governors shall notify the Inspector General in writing

stating the reasons for such exercise. Within 30 days after receipt

of any such notice, the Inspector General shall transmit a copy

of such notice to the Committee on Governmental Affairs of the

Senate and the Committee on Government Reform and Oversight

of the House of Representatives, and to other appropriate committees or subcommittees of the Congress.

‘‘(B) In carrying out the duties and responsibilities specified

in this Act, the Inspector General—

‘‘(i) may initiate, conduct and supervise such audits and

investigations in the United States Postal Service as the Inspector General considers appropriate; and

‘‘(ii) shall give particular regard to the activities of the

Postal Inspection Service with a view toward avoiding duplication and insuring effective coordination and cooperation.

‘‘(C) Any report required to be transmitted by the Governors

to the appropriate committees or subcommittees of the Congress

under section 5(d) shall also be transmitted, within the sevenday period specified under such section, to the Committee on

Governmental Affairs of the Senate and the Committee on Government Reform and Oversight of the House of Representatives.

‘‘(3) Nothing in this Act shall restrict, eliminate, or otherwise

adversely affect any of the rights, privileges, or benefits of either

employees of the United States Postal Service, or labor organizations representing employees of the United States Postal Service,

under chapter 12 of title 39, United States Code, the National

Labor Relations Act, any handbook or manual affecting employee

labor relations with the United States Postal Service, or any collective bargaining agreement.

‘‘(4) As used in this subsection, the term ‘Governors’ has the

meaning given such term by section 102(3) of title 39, United

States Code.’’.

(3) TECHNICAL CORRECTION.—The Inspector General Act

of 1978 is amended by redesignating the second section which

is designated as section 8G as section 8H.

(c) PROVISIONS RELATING TO COMPENSATION.—

(1) INSPECTOR GENERAL.—Section 5315 of title 5, United

States Code, is amended by adding at the end the following:

‘‘Inspector General, United States Postal Service.’’.

The amendment made by the preceding sentence shall apply notwithstanding section 410 or any other provision of title 39, United

States Code.

(2) OFFICERS AND EMPLOYEES OF THE OFFICE OF INSPECTOR

GENERAL OF THE UNITED STATES POSTAL SERVICE; POSTAL

INSPECTORS.—

(A) IN GENERAL.—Section 1003 of title 39, United

States Code, is amended—

(i) by redesignating subsection (b) as subsection

(d); and

(ii) by inserting after subsection (a) the following:

5 USC 5315 note.

5 USC app.
110 STAT. 3009–381 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(b) Compensation and benefits for all officers and employees

serving in or under the Office of Inspector General of the United

States Postal Service shall be maintained on a standard of comparability to the compensation and benefits paid for comparable

levels of work in the respective Offices of Inspector General of

the various establishments named in section 11(2) of the Inspector

General Act of 1978.

‘‘(c) Compensation and benefits for all Postal Inspectors shall

be maintained on a standard of comparability to the compensation

and benefits paid for comparable levels of work in the executive

branch of the Government outside of the Postal Service. As used

in this subsection, the term ‘Postal Inspector’ included any agent

to whom any investigative powers are granted under section 3061

of title 18.’’.

(B) CONFORMING AMENDMENT.—The first sentence of

section 1003(a) of title 39, United States Code, is amended

by striking ‘‘chapters 2 and 12 of this title’’ and inserting

‘‘chapters 2 and 12 of this title, section 8G of the Inspector

General Act of 1978,’’.

(d) STRATEGIC PLANS.—

(1) OFFICE OF INSPECTOR GENERAL OF THE UNITED STATES

POSTAL SERVICE.—

(A) IN GENERAL.—Strategic plans shall be prepared

under this paragraph addressing staffing requirements,

general goals and objectives for major functions and operations of the Office of Inspector General of the United

States Postal Service, and how goals and objectives of

the Office are to be achieved, including a description of

operational processes, skills and technology, and the

human, capital, information, and other resources required

to meet those goals and objectives.

(B) SPECIFIC REQUIREMENTS.—Plans under this paragraph—

(i) shall be prepared by the Inspector General of

the United States Postal Service;

(ii) shall each cover a 5-year period (the beginning

and ending dates of which shall be specified in each

such plan); and

(iii) shall be included, as part of the annual budget

required under section 2009 of title 39, United States

Code, at least every 3 years.

(C) FIRST SUBMISSION.—The first plan under this paragraph shall be prepared in time to be included with the

annual budget under section 2009 of title 39, United States

Code, next due to be submitted after the end of the 6-

month period beginning on the date of the appointment

of the first Inspector General to be appointed pursuant

to the amendments made by this section.

(2) POSTAL INSPECTION SERVICE.—The Chief Postal Inspector shall, with respect to the Postal Inspection Service, prepare

a strategic plan similar in content to that required under paragraph (1)(A) with respect to the Office of Inspector General

of the United States Postal Service. Such plan shall be prepared

in time to be included with the annual budget under section

2009 of such title 39 next due to be submitted after the end

of the 30-day period beginning on the date of the enactment

of this Act.

39 USC 2802

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–382

(e) FIRST APPOINTMENT; TRANSFERS; TRANSITION PROVISION.— (1) FIRST APPOINTMENT.—The first Inspector General of

the United States Postal Service appointed pursuant to the

amendments made by this section shall be appointed before

the end of the 90-day period beginning on the date of the

enactment of this Act.

(2) TRANSFERS.—

(A) IN GENERAL.—All measures described in section

8G(b) of the Inspector General Act of 1978 necessary to

establish an Office of Inspector General within the United

States Postal Service pursuant to this section, including

all appropriate transfers, shall occur—

(i) no earlier than the date the appointment under paragraph

(1) is made; and

(ii) no later than 60 days after the date the appointment under

paragraph (1) is made.

(B) PROVISIONS RELATING TO PERSONNEL.—

(i) CONSULTATION.—Decisions concerning which personnel are

to be transferred pursuant to subparagraph (A) shall be made

by the Governors (within the meaning of section 102(3) of title

39, United States Code) in consultation with the Inspector General

appointed under paragraph (1).

(ii) TRANSFERRED PERSONNEL.—Personnel transferred pursuant

to subparagraph (A) shall, to the extent not inconsistent with other

provisions of this subsection, be transferred in accordance with

applicable laws and regulations relating to the transfer of functions

within the United States Postal Service, except that, notwithstanding any provision of section 1003(b) of title 39, United States Code,

as amended by this section, the classification and compensation

of such personnel shall not be reduced, by reason of having been

transferred, for 1 year after being so transferred.

(3) TRANSITION PROVISION.—The Chief Postal Inspector may

continue to serve as Inspector General of the United States

Postal Service until the date on which an Inspector General

is appointed under paragraph (1) or, if earlier, the end of

the period referred to in such paragraph. Compensation for

any service under this paragraph shall be determined as if

this section had not been enacted.

(f) TECHNICAL AND CONFORMING AMENDMENTS.—

(1) Section 410(b) of title 39, United States Code, is amended—

(A) by striking ‘‘and’’ at the end of paragraph (9);

and

(B) by amending paragraph (10) to read as follows:

‘‘(10) the Inspector General Act of 1978; and’’

(2)(A) Section 204 of such title 39 is amended—

(i) by amending the section heading to read as follows:

‘‘§ 204. General Counsel; Judicial Officer; Chief Postal Inspector’’;

(ii) in the first sentence by striking ‘‘and a Judicial Officer.’’

and inserting ‘‘a Judicial Officer, and a Chief Postal Inspector.’’;

(iii) in the second sentence by striking ‘‘and the Judicial Officer’’

and inserting ‘‘the Judicial Officer, and the Chief Postal Inspector’’;

and

(iv) by adding at the end the following: ‘‘The Chief Postal

Inspector shall report to, and be under the general supervision

39 USC 201 note.
110 STAT. 3009–383 PUBLIC LAW 104–208—SEPT. 30, 1996

of, the Postmaster General. The Postmaster General shall promptly

notify the Governors and both Houses of Congress in writing if

he or she removes the Chief Postal Inspector or transfers the

Chief Postal Inspector to another position or location within the

Postal Service, and shall include in any such notification the reasons

for the removal or transfer.’’.

(B) The table of sections for chapter 2 of such title 39

is amended by striking the item relating to section 204 and

inserting the following:

‘‘204. General Counsel; Judicial Officer; Chief Postal Inspector.’’.

SEC. 663. VOLUNTARY SEPARATION INCENTIVES FOR EMPLOYEES

OF CERTAIN FEDERAL AGENCIES.—(a) DEFINITIONS.—For the purposes of this section—

(1) the term ‘‘agency’’ means any Executive agency (as

defined in section 105 of title 5, United States Code), other

than an Executive agency (except an agency receiving such

authority in the Department of Transportation Appropriations

Act, 1997) that is authorized by any other provision of this

Act or any other Act to provide voluntary separation incentive

payments during all, or any part of, fiscal year 1997; and

(2) the term ‘‘employee’’ means an employee (as defined

by section 2105 of title 5, United States Code) who is employed

by an agency, is serving under an appointment without time

limitation, and has been currently employed for a continuous

period of at least 3 years, but does not include—

(A) a reemployed annuitant under subchapter III of

chapter 83 or chapter 84 of title 5, United States Code,

or another retirement system for employees of the agency;

(B) an employee having a disability on the basis of

which such employee is or would be eligible for disability

retirement under subchapter III of chapter 83 or chapter

84 of title 5, United States Code, or another retirement

system for employees of the agency;

(C) an employee who is in receipt of a specific notice

of involuntary separation for misconduct or unacceptable

performance;

(D) an employee who, upon completing an additional

period of service as referred to in section 3(b)(2)(B)(ii) of

the Federal Workforce Restructuring Act of 1994 (5 U.S.C.

5597 note), would qualify for a voluntary separation incentive payment under section 3 of such Act;

(E) an employee who has previously received any voluntary separation incentive payment by the Federal

Government under this section or any other authority and

has not repaid such payment;

(F) an employee covered by statutory reemployment

rights who is on transfer to another organization; or

(G) any employee who, during the twenty four month

period preceding the date of separation, has received a

recruitment or relocation bonus under section 5753 of title

5, United States Code, or who, within the twelve month

period preceding the date of separation, received a retention

allowance under section 5754 of title 5, United States Code.

(b) AGENCY STRATEGIC PLAN.—

(1) IN GENERAL.—The head of each agency, prior to obligating any resources for voluntary separation incentive payments,

5 USC 5597 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–384

shall submit to the House and Senate Committees on Appropriations and the Committee on Governmental Affairs of the

Senate and the Committee on Government Reform and Oversight of the House of Representatives a strategic plan outlining

the intended use of such incentive payments and a proposed

organizational chart for the agency once such incentive payments have been completed.

(2) CONTENTS.—The agency’s plan shall include—

(A) the positions and functions to be reduced or eliminated, identified by organizational unit, geographic location, occupational category and grade level;

(B) the number and amounts of voluntary separation

incentive payments to be offered; and

(C) a description of how the agency will operate without

the eliminated positions and functions.

(c) AUTHORITY TO PROVIDE VOLUNTARY SEPARATION INCENTIVE

PAYMENTS.—

(1) IN GENERAL.—A voluntary separation incentive payment

under this section may be paid by an agency to any employee

only to the extent necessary to eliminate the positions and

functions identified by the strategic plan.

(2) AMOUNT AND TREATMENT OF PAYMENTS.—A voluntary

separation incentive payment—

(A) shall be paid in a lump sum after the employee’s

separation;

(B) shall be paid from appropriations or funds available

for the payment of the basic pay of the employees;

(C) shall be equal to the lesser of—

(i) an amount equal to the amount the employee

would be entitled to receive under section 5595(c) of

title 5, United States Code; or

(ii) an amount determined by the agency head

not to exceed $25,000;

(D) may not be made except in the case of any qualifying employee who voluntarily separates (whether by retirement or resignation) before December 31, 1997;

(E) shall not be a basis for payment, and shall not

be included in the computation, of any other type of Government benefit; and

(F) shall not be taken into account in determining

the amount of any severance pay to which the employee

may be entitled under section 5595 of title 5, United States

Code, based on any other separation.

(d) ADDITIONAL AGENCY CONTRIBUTIONS TO THE RETIREMENT

FUND.—

(1) IN GENERAL.—In addition to any other payments which

it is required to make under subchapter III of chapter 83

of title 5, United States Code, an agency shall remit to the

Office of Personnel Management for deposit in the Treasury

of the United States to the credit of the Civil Service Retirement

and Disability Fund an amount equal to 15 percent of the

final basic pay of each employee of the agency who is covered

under subchapter III of chapter 83 or chapter 84 of title 5,

United States Code, to whom a voluntary separation incentive

has been paid under this section.

(2) DEFINITION.—For the purpose of paragraph (1), the

term ‘‘final basic pay’’, with respect to an employee, means
110 STAT. 3009–385 PUBLIC LAW 104–208—SEPT. 30, 1996

the total amount of basic pay which would be payable for

a year of service by such employee, computed using the employee’s final rate of basic pay, and, if last serving on other than

a full-time basis, with appropriate adjustment therefor.

(e) EFFECT OF SUBSEQUENT EMPLOYMENT WITH THE GOVERNMENT.—An individual who has received a voluntary separation

incentive payment under this section and accepts any employment

for compensation with the Government of the United States, or

who works for any agency of the United States Government through

a personal services contract, within 5 years after the date of the

separation on which the payment is based shall be required to

pay, prior to the individual’s first day of employment, the entire

amount of the incentive payment to the agency that paid the

incentive payment.

(f) REDUCTION OF AGENCY EMPLOYMENT LEVELS.—

(1) IN GENERAL.—The total number of funded employee

positions in the agency shall be reduced by one position for

each vacancy created by the separation of any employee who

has received, or is due to receive, a voluntary separation incentive payment under this section. For the purposes of this subsection, positions shall be counted on a full-time-equivalent

basis.

(2) ENFORCEMENT.—The President, through the Office of

Management and Budget, shall monitor the agency and take

any action necessary to ensure that the requirements of this

subsection are met.

(g) EFFECTIVE DATE.—This section shall take effect October

1, 1996.

SECTION 664. ELECTRONIC BENEFIT TRANSFER PILOT.

Title 31, United States Code, is amended by inserting after

section 3335 the following new section:

‘‘SEC. 3336. Electronic benefit transfer pilot

‘‘(a) The Congress finds that:

‘‘(1) Electronic benefit transfer (EBT) is a safe, reliable,

and economical way to provide benefit payments to individuals

who do not have an account at a financial institution.

‘‘(2) The designation of financial institutions as financial

agents of the Federal Government for EBT is an appropriate

and reasonable use of the Secretary’s authority to designate

financial agents.

‘‘(3) A joint federal-state EBT system offers convenience

and economies of scale for those states (and their citizens)

that wish to deliver state-administered benefits on a single

card by entering into a partnership with the federal government.

‘‘(4) The Secretary’s designation of a financial agent to

deliver EBT is a specialized service not available through ordinary business channels and may be offered to the states pursuant to section 6501 et seq. of this title.

‘‘(b) The Secretary shall continue to carry out the existing

EBT pilot to disburse benefit payments electronically to recipients

who do not have an account at a financial institution, which shall

include the designation of one or more financial institution as

a financial agent of the Government, and the offering to the participating states of the opportunity to contract with the financial agent
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–386

selected by the Secretary, as described in the Invitation for Expressions of Interest to Acquire EBT Services for the Southern Alliance

of States dated March 9, 1995, as amended as of June 30, 1995,

July 7, 1995, and August 1, 1995.

[‘‘(c) The selection and designation of financial agents, the

design of the pilot program, and any other matter associated with

or related to the EBT pilot described in subsection (b) shall not

be subject to judicial review.’’]

SECTION 2. DESIGNATION OF FINANCIAL AGENTS

1. 12 U.S.C. 90 is amended by adding at the end thereof

the following:

‘‘Notwithstanding the Federal Property and Administrative Services

Act of 1949, as amended, the Secretary may select associations

as financial agents in accordance with any process the Secretary

deems appropriate and their reasonable duties may include the

provision of electronic benefit transfer services (including Stateadministered benefits with the consent of the States), as defined

by the Secretary.’’.

2. Make conforming amendments to 12 U.S.C. 265, 266, 391,

1452(d), 1767, 1789a, 2013, 2122 and to 31 U.S.C. 3122 and 3303.

TITLE VII—COUNTER-TERRORISM AND DRUG LAW

ENFORCEMENT

DEPARTMENT OF THE TREASURY

DEPARTMENTAL OFFICES

SALARIES AND EXPENSES

For an additional amount for the necessary expenses of the

Office of Foreign Assets Control, $288,000: Provided, That of the

amount provided, $288,000 is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

OFFICE OF INSPECTOR GENERAL

SALARIES AND EXPENSES

For an additional amount for the necessary expenses of the Office of Inspector General, $34,000, to remain available until

expended: Provided, That of the amount provided, $34,000 is designated by Congress as an emergency requirement pursuant to

section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

COUNTERTERRORISM FUND

For necessary expenses, as determined by the Secretary,

$15,000,000, to remain available until expended, to reimburse any

Department of the Treasury organization for the costs of providing

support to counter, investigate, or prosecute terrorism, including

payment of rewards in connection with these activities: Provided,

That the entire amount of this appropriation shall be available

only to the extent that an official budget request for a specific

dollar amount, that includes designation of the entire amount of
110 STAT. 3009–387 PUBLIC LAW 104–208—SEPT. 30, 1996

the request as an emergency requirement as defined in the Balanced

Budget and Emergency Deficit Control Act of 1985, is transmitted

by the President to Congress: Provided further, That the entire

amount is designated by Congress as an emergency appropriation

pursuant to section 251(b)(2)(D)(i) of such Act.

FEDERAL LAW ENFORCEMENT TRAINING CENTER

SALARIES AND EXPENSES

For an additional amount for the necessary expenses of the

Federal Law Enforcement Training Center, $1,354,000, to remain

available until expended: Provided, That of the amount provided,

$1,354,000 is designated by Congress as an emergency requirement

pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and

Emergency Deficit Control Act of 1985, as amended.

ACQUISITION, CONSTRUCTION, IMPROVEMENTS, AND RELATED

EXPENSES

For an additional amount for the necessary expenses for the

acquisition, construction, improvement, and related expenses,

$2,700,000, to remain available until expended: Provided, That

of the amount provided, $2,700,00 is designated by Congress as

an emergency requirement pursuant to section 251(b)(2)(D)(i) of

the Balanced Budget and Emergency Deficit Control Act of 1985,

as amended.

FINANCIAL MANAGEMENT SERVICE

SALARIES AND EXPENSES

For an additional amount for the necessary expenses of the

Financial Management Service, $449,000, to remain available until

expended: Provided, That of the amount provided, $449,000 is designated by Congress as an emergency requirement pursuant to

section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

BUREAU OF ALCOHOL, TOBACCO AND FIREARMS

SALARIES AND EXPENSES

For an additional amount for the necessary expenses of the

Bureau of Alcohol, Tobacco and Firearms, $66,423,000; of which

$3,500,000 shall be available for the construction and expansion

of a canine training facility, to remain available until expended;

of which $3,000,000 shall be available for conducting a study of

car bomb explosives, to remain available until expended; and of

which $6,700,000, to remain available until expended, for relocation

of the Bureau’s headquarters building and laboratory facilities;

Provided, That of the amount provided, $66,423,000 is designated

by Congress as an emergency requirement pursuant to section

251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–388

UNITED STATES CUSTOMS SERVICE

SALARIES AND EXPENSES

For an additional amount for the necessary expense of the

United States Customs Service, $62,335,000; of which not to exceed

$26,400,000 shall be available until expended for funding noncompetitive cooperative agreements with air carriers, airports, or

other cargo authorities, which provide for the Customs Service

to purchase and assist in installing advanced air cargo inspection

equipment for the joint use of such entities and the United States

Customs Service: Provided, That of the amount provided,

$62,335,000 is designated by Congress as an emergency requirement

pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and

Emergency Deficit Control Act of 1985, as amended.

INTERNAL REVENUE SERVICE

PROCESSING, ASSISTANCE AND MANAGEMENT

For an additional amount for the necessary expenses for the

processing, assistance and management, $10,488,000, to remain

available until expended: Provided, That of the amount provided,

$10,488,000 is designated by Congress as an emergency requirement

pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and

Emergency Deficit Control Act of 1985, as amended.

UNITED STATES SECRET SERVICE

SALARIES AND EXPENSES

For an additional amount for the necessary expenses of the

United States Secret Service $3,026,000, to remain available until

expended: Provided, That of the amount provided, $3,026,000 is

designated by Congress as an emergency requirement pursuant

to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency

Deficit Control Act of 1985, as amended.

INDEPENDENT AGENCIES

OFFICE OF PERSONNEL MANAGEMENT

SALARIES AND EXPENSES

For an additional amount for the necessary expenses of the

Office of Personnel Management $210,000, to remain available until

expended: Provided, That of the amount provided, $210,000 is designated by Congress as an emergency requirement pursuant to

section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.
110 STAT. 3009–389 PUBLIC LAW 104–208—SEPT. 30, 1996

FUNDS APPROPRIATED TO THE PRESIDENT

FEDERAL DRUG CONTROL PROGRAMS

SPECIAL FORFEITURE FUND

(INCLUDING TRANSFER OF FUNDS)

For activities authorized by Public Law 100–690, as amended,

$112,900,000, of which $42,000,000 shall be transferred to the

United States Customs Service for the conversion of one P–3AEW

aircraft for the air interdiction program; of which $10,000,000 shall

be available for transfer to other Federal agencies for methamphetamine reduction efforts; and of which $60,900,000 shall be available

to the Director of the Office of National Drug Control Policy for

enhancing other drug control activities, including transfer to other

Federal agencies: Provided, That of the amount provided,

$112,900,000 is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget

and Emergency Deficit Control Act of 1985, as amended to become

available only upon receipt by the Congress of a supplemental

request from the President requesting such designation.

TITLE VIII—FEDERAL FINANCIAL MANAGEMENT

IMPROVEMENT

SEC. 801. SHORT TITLE

This title may be cited as the ‘‘Federal Financial Management

Improvement Act of 1996.’’

SEC. 802. FINDINGS AND PURPOSES.

(a) FINDINGS.—The Congress finds the following:

(1) Much effort has been devoted to strengthening Federal

internal accounting controls in the past. Although progress

has been made in recent years, Federal accounting standards

have not been uniformly implemented in financial management

systems for agencies.

(2) Federal financial management continues to be seriously

deficient, and Federal financial management and fiscal practices have failed to—

(A) identify costs fully;

(B) reflect the total liabilities of congressional actions;

and

(C) accurately report the financial condition of the

Federal Government.

(3) Current Federal accounting practices do not accurately

report financial results of the Federal Government or the full

costs of programs and activities. The continued use of these

practices undermines the Government’s ability to provide credible and reliable financial data and encourages already widespread Government waste, and will not assist in achieving

a balanced budget.

(4) Waste and inefficiency in the Federal Government

undermine the confidence of the American people in the government and reduce the federal Government’s ability to address

vital public needs adequately.

(5) To rebuild the accountability and credibility of the Federal Government, and restore public confidence in the Federal

31 USC 3512

note.

Federal Financial

Management

Improvement Act

of 1996.

31 USC 3512

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–390

Government, agencies must incorporate accounting standards

and reporting objectives established for the Federal Government into their financial management systems so that all the

assets and liabilities, revenues, and expenditures or expenses,

and the full costs of programs and activities of the Federal

Government can be consistently and accurately recorded, monitored, and uniformly reported throughout the Federal Government.

(6) Since its establishment in October 1990, the Federal

Accounting Standards Advisory Board (hereinafter referred to

as the ‘‘FASAB’’) has made substantial progress toward developing and recommending a comprehensive set of accounting concepts and standards for the Federal Government. When the

accounting concepts and standards developed by FASAB are

incorporated into Federal financial management systems, agencies will be able to provide cost and financial information that

will assist the Congress and financial managers to evaluate

the cost and performance of Federal programs and activities,

and will therefore provide important information that has been

lacking, but is needed for improved decision making by financial

managers and the Congress.

(7) The development of financial management systems with

the capacity to support these standards and concepts will, over

the long term, improve Federal financial management.

(b) PURPOSE—The purposes of this Act are to—

(1) provide for consistency of accounting by an agency from

one fiscal year to the next, and uniform accounting standards

throughout the Federal Government;

(2) require Federal financial management systems to support full disclosure of Federal financial data, including the

full costs of Federal programs and activities, to the citizens,

the Congress, the President, and agency management, so that

programs and activities can be considered based on their full

costs and merits;

(3) increase the accountability and credibility of federal

financial management;

(4) improve performance, productivity and efficiency of Federal Government financial management;

(5) establish financial management systems to support

controlling the cost of Federal Government;

(6) build upon and complement the Chief Financial Officers

Act of 1990 (Public Law 101–576; 104 Stat 2838), the Government Performance and Results Act of 1993 (Public Law 103–

62 107 Stat. 285) and the Government Management Reform

Act of 1994 (Public Law 103–356; 108 Stat. 3410); and

(7) increase the capability of agencies to monitor execution

of the budget by more readily permitting reports that compare

spending of resources to results of activities.

SEC. 803. IMPLEMENTATION OF FEDERAL FINANCIAL MANAGEMENT

IMPROVEMENTS.

(a) IN GENERAL.—Each agency shall implement and maintain

financial management systems that comply substantially with Federal financial management systems requirements, applicable Federal accounting standards, and the United States Government

Standard General Ledger at the transaction level.

(b) AUDIT COMPLIANCE FINDING.—

31 USC 3512

note.
110 STAT. 3009–391 PUBLIC LAW 104–208—SEPT. 30, 1996

(1) IN GENERAL.—Each audit required by section 3521(e)

of title 31, United States Code, shall report whether the agency

financial management systems comply with the requirements

of subsection (a).

(2) CONTENT OF REPORTS.—When the person performing

the audit required by section 3521(e) of title 31, United States

Code, reports that the agency financial management systems

do not comply with the requirements of subsection (a), the

person performing the audit shall include in the report on

the audit—

(A) the entity or organization responsible for the financial management systems that have been found not to

comply with the requirements of subsection (a);

(B) all facts pertaining to the failure to comply with

the requirements of subsection (a), including—

(i) the nature and extent of the noncompliance

including areas in which there is substantial but not

full compliance;

(ii) the primary reason or cause of the noncompliance;

(iii) the entity or organization responsible for the

non-compliance; and

(iv) any relevant comments from any responsible

officer or employee; and

(C) a statement with respect to the recommended

remedial actions and the time frames to implement such

actions.

(c) COMPLIANCE IMPLEMENTATION.—

(1) DETERMINATION.—No later than the date described

under paragraph (2), the Head of an agency shall determine

whether the financial management systems of the agency comply with the requirements of subsection (a). Such determination

shall be based on—

(A) a review of the report on the applicable agencywide audited financial statement;

(B) any other information the Head of the agency

considers relevant and appropriate.

(2) DATE OF DETERMINATION.—The determination under

paragraph (1) shall be made no later than 120 days after

the earlier of—

(A) the date of the receipt of an agency-wide audited

financial statement; or

(B) the last day of the fiscal year following the year

covered by such statement.

(3) REMEDIATION PLAN.—

(A) If the Head of an agency determines that the

agency’s financial management systems do not comply with

the requirements of subsection (a), the head of the agency,

in consultation with the Director, shall establish a remediation plan that shall include resources, remedies, and intermediate target dates necessary to bring the agency’s financial management systems into substantial compliance.

(B) If the determination of the head of the agency

differs from the audit compliance findings required in subsection (b), the Director shall review such determinations

and provide a report on the findings to the appropriate

committees of the Congress.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–392

(4) TIME PERIOD FOR COMPLIANCE.—A remediation plan

shall bring the agency’s financial management systems into

substantial compliance no later than 3 years after the date

a determination is made under paragraph (1), unless the

agency, with concurrence of the Director—

(A) determines that the agency’s financial management

systems cannot comply with the requirements of subsection

(a) within 3 years;

(B) specifies the most feasible date for bringing the

agency’s financial management systems into compliance

with the requirements of subsection (a); and

(C) designates an official of the agency who shall be

responsible for bringing the agency’s financial management

systems into compliance with the requirements of subsection (a) by the date specified under subparagraph (B).

SEC. 804. REPORTING REQUIREMENTS.

(a) REPORTS BY THE DIRECTOR.—No later than March 31 of

each year, the Director shall submit a report to the Congress

regarding implementation of this Act. The Director may include

the report in the financial management status report and the 5-

year financial management plan submitted under section 3512(a)(1)

of title 31, United States Code.

(b) REPORTS BY THE INSPECTOR GENERAL—Each Inspector General who prepares a report under section 5(a) of the Inspector

General Act of 1978 (5 U.S.C. App.) shall report to Congress instances and reasons when an agency has not met the intermediate

target dates established in the remediation plan required under

section 3(c). Specifically the report shall include—

(1) the entity or organization responsible for the noncompliance;

(2) the facts pertaining to the failure to comply with the

requirements of subsection (a), including the nature and extent

of the non-compliance, the primary reason or cause for the

failure to comply, and any extenuating circumstances; and

(3) a statement of the remedial actions needed to comply.

(c) REPORTS BY THE COMPTROLLER GENERAL.—No later than

October 1, 1997, and October 1, of each year thereafter, the

Comptroller General of the United States shall report to the appropriate committees of the Congress concerning—

(1) compliance with the requirements of section 3(a) of

this Act, including whether the financial statements of the

Federal Government have been prepared in accordance with

applicable accounting standards; and

(2) the adequacy of applicable accounting standards for

the Federal Government.

SEC. 805. CONFORMING AMENDMENTS.

(a) AUDITS BY AGENCIES.—Section 3521(f)(1) of title 31, United

States Code, is amended in the first sentence by inserting ‘‘and

the Controller of the Office of Federal Financial Management’’

before the period.

(b) FINANCIAL MANAGEMENT STATUS REPORT.—Section

3512(a)(2) of title 31, United States Code, is amended by—

(1) in subparagraph (D) by striking ‘‘and’ after the semicolon;

(2) by redesignating subparagraph (E) as subparagraph

(F); and

31 USC 3512

note.

31 USC 3512

note.
110 STAT. 3009–393 PUBLIC LAW 104–208—SEPT. 30, 1996

(3) by inserting after subparagraph (D) the following:

‘‘(E) a listing of agencies whose financial management

systems do not comply substantially with the requirements

of Section 3(a) the Federal Financial Management Improvement Act of 1996, and a summary statement of the efforts

underway to remedy the noncompliance; and’’

(c) INSPECTOR GENERAL ACT OF 1978.—Section 5(a) of the

Inspector General Act of 1978 is amended—

(1) in paragraph (11) by striking ‘‘and’’ after the semicolon;

(2) in paragraph (12) by striking the period and inserting

‘‘; and’’; and

(3) by adding at the end the following new paragraph:

‘‘(13) the information described under section 05(b) of the

Federal Financial Management Improvement Act of 1996.’’

SEC. 806. DEFINITIONS.

For purposes of this title:

(1) AGENCY.—The term ‘‘agency’’ means a department or

agency of the United States Government as defined in section

901(b) of title 31, United States Code.

(2) DIRECTOR.—The term ‘‘Director’’ means the Director

of the Office of Management and Budget.

(3) FEDERAL ACCOUNTING STANDARDS.—The term ‘‘Federal

accounting standards’’ means applicable accounting principles,

standards, and requirements consistent with section

902(a)(3)(A) of title 31, United States Code.

(4) FINANCIAL MANAGEMENT SYSTEMS.—The term ‘‘financial

management systems’’ includes the financial systems and the

financial portions of mixed systems necessary to support financial management, including automated and manual processes,

procedures, controls, data, hardware, software, and support

personnel dedicated to the operation and maintenance of system

functions.

(5) FINANCIAL SYSTEM.—The term ‘‘financial system’’

includes an information system, comprised of one or more

applications, that is used for—

(A) collecting, processing, maintaining, transmitting,

or reporting data about financial events;

(B) supporting financial planning or budgeting activities;

(C) accumulating and reporting costs information; or

(D) supporting the preparation of financial statements.

(6) MIXED SYSTEM.—The term ‘‘mixed system’ means

an information system that supports both financial and

nonfinancial functions of the Federal Government or components thereof.

SEC. 807. EFFECTIVE DATE.

This title shall take effect for the fiscal year ending September

30, 1997.

SEC. 808. REVISION OF SHORT TITLES.—

(a) Section 4001 of Public Law 104–106 (110 Stat. 642; 41

U.S.C. 251 note) is amended to read as follows:

‘‘SEC. 4001. SHORT TITLE.

‘‘This division and division E may be cited as the ‘ClingerCohen Act of 1996’.’’.

31 USC 3512

note.

31 USC 3512

note.

5 USC app.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–394

(b) Section 5001 of Public Law 104–106 (110 Stat. 679; 40

U.S.C. 1401 note) is amended to read as follows:

‘‘SEC. 5001. SHORT TITLE.

‘‘This division and division D may be cited as the ‘ClingerCohen Act of 1996’.’’.

(c) Any reference in any law, regulation, document, record,

or other paper of the United States to the Federal Acquisition

Reform Act of 1996 or to the Information Technology Management

Reform Act of 1996 shall be considered to be a reference to the

Clinger-Cohen Act of 1996.

This Act may be cited as the ‘‘Treasury, Postal Service, and

General Government Appropriations Act, 1997’’.

TITLE II—ECONOMIC GROWTH AND

REGULATORY PAPERWORK REDUCTION

SEC. 2001. SHORT TITLE; TABLE OF CONTENTS; DEFINITIONS

(a) SHORT TITLE.—This title may be cited as the ‘‘Economic

Growth and Regulatory Paperwork Reduction Act of 1996’’.

(b) TABLE OF CONTENTS.—The table of contents for this title

is as follows:

TITLE II—ECONOMIC GROWTH AND REGULATORY

PAPERWORK REDUCTION

Sec. 2001. Short title; table of contents; definitions

Subtitle A—Streamlining the Home Mortgage Lending Process

Sec. 2101. Simplification and unification of disclosures required under

RESPA and TILA for mortgage transactions.

Sec. 2102. General exemption authority for loans.

Sec. 2103. Reductions in Real Estate Settlement Procedures Act of 1974

regulatory burdens.

Sec. 2104. Waiver for certain borrowers.

Sec. 2105. Alternative disclosures for adjustable rate mortgages.

Sec. 2106. Restitution for violations of the Truth in Lending Act.

Sec. 2107. Limitation on liability under the Truth in Lending Act.

Subtitle B—Streamlining Government Regulation

CHAPTER 1—ELIMINATING UNNECESSARY REGULATORY

REQUIREMENTS AND PROCEDURES

Sec. 2201. Elimination of redundant approval requirement for Oakar transactions.

Sec. 2202. Elimination of duplicative requirements imposed upon bank

holding companies.

Sec. 2203. Elimination of the per branch capital requirement for national

banks and State member banks.

Sec. 2204. Elimination of branch application requirements for automatic

teller machines.

Economic Growth

and Regulatory

Paperwork

Reduction Act of

1996.

12 USC 226 note.
110 STAT. 3009–395 PUBLIC LAW 104–208—SEPT. 30, 1996

Sec. 2205. Elimination of requirement for approval of investments in bank

premises for well capitalized and well managed banks.

Sec. 2206. Elimination of approval requirement for divestitures.

Sec. 2207. Streamlined nonbanking acquisitions by well capitalized and

well managed banking organizations.

Sec. 2208. Elimination of unnecessary filing for officer and director

appointments.

Sec. 2209. Amendments to the Depository Institution Management Interlocks Act.

Sec. 2210. Elimination of recordkeeping and reporting requirements for

officers.

Sec. 2211. Repayment of Treasury loan.

Sec. 2212. Branch closures.

Sec. 2213. Foreign banks.

Sec. 2214. Disposition of foreclosed assets.

Sec. 2215. Exemption authority for antitying provision.

Sec. 2216. FDIC approval of new State bank powers.

CHAPTER 2—ELIMINATING UNNECESSARY REGULATORY BURDENS

Sec. 2221. Small bank examination cycle.

Sec. 2222. Required review of regulations.

Sec. 2223. Repeal of identification of nonbank financial institution customers.

Sec. 2224. Repeal of certain reporting requirements.

Sec. 2225. Increase in home mortgage disclosure exemption threshold.

Sec. 2226. Elimination of stock loan reporting requirement.

Sec. 2227. Credit availability assessment.

CHAPTER 3—REGULATORY MICROMANAGEMENT

Sec. 2241. National bank directors.

Sec. 2242. Paperwork reduction review.

Sec. 2243. State bank representation on Board of Directors of the FDIC.

Sec. 2244. Consultation among examiners.

Subtitle C—Regulatory Impact on Cost of Credit and Credit

Availability

Sec. 2301. Audit costs.

Sec. 2302. Incentives for self-testing.

Sec. 2303. Qualified thrift investment amendments.

Sec. 2304. Limited purpose banks.

Sec. 2305. Amendment to Fair Debt Collection Practices Act.

Sec. 2306. Increase in certain credit union loan ceilings.

Sec. 2307. Bank investments in Edge Act and agreement corporations.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–396

Subtitle D—Consumer Credit

CHAPTER 1—CREDIT REPORTING REFORM

Sec. 2401. Short title.

Sec. 2402. Definitions.

Sec. 2403. Furnishing consumer reports; use for employment purposes.

Sec. 2404. Use of consumer reports for prescreening and direct marketing;

prohibition on unauthorized or uncertified use of information.

Sec. 2405. Consumer consent required to furnish consumer report containing medical information.

Sec. 2406. Obsolete information and information contained in consumer

reports.

Sec. 2407. Compliance procedures.

Sec. 2408. Consumer disclosures.

Sec. 2409. Procedures in case of the disputed accuracy of any information

in a consumer’s file.

Sec. 2410. Charges for certain disclosures.

Sec. 2411. Duties of users of consumer reports.

Sec. 2412. Civil liability.

Sec. 2413. Responsibilities of persons who furnish information to consumer

reporting agencies.

Sec. 2414. Investigative consumer reports.

Sec. 2415. Increased criminal penalties for obtaining information under

false pretenses.

Sec. 2416. Administrative enforcement.

Sec. 2417. State enforcement of Fair Credit Reporting Act.

Sec. 2418. Federal Reserve Board authority.

Sec. 2419. Preemption of State law.

Sec. 2420. Effective date.

Sec. 2421. Relationship to other law.

Sec. 2422. Federal Reserve Board study.

CHAPTER 2—CREDIT REPAIR ORGANIZATIONS

Sec. 2451. Regulation of credit repair organizations.

Sec. 2452. Credit worthiness.

Subtitle E—Asset Conservation, Lender Liability, and Deposit

Insurance Protection

Sec. 2501. Short title.

Sec. 2502. CERCLA lender and fiduciary liability limitations amendments.

Sec. 2503. Conforming amendment.

Sec. 2504. Lender liability rule.

Sec. 2505. Effective date.

Subtitle F—Miscellaneous

Sec. 2601. Federal Reserve Board study.
110 STAT. 3009–397 PUBLIC LAW 104–208—SEPT. 30, 1996

Sec. 2602. Treatment of claims arising from breach of contracts executed

by the receiver or conservator.

Sec. 2603. Criminal sanctions for fictitious financial instruments and

counterfeiting.

Sec. 2604. Amendments to the Truth in Savings Act.

Sec. 2605. Consumer Leasing Act amendments.

Sec. 2606. Study of corporate credit unions.

Sec. 2607. Report on the reconciliation of differences between regulatory

accounting principles and generally accepted accounting principles.

Sec. 2608. State-by-State and metropolitan area-by-metropolitan area study

of bank fees.

Sec. 2609. Prospective application of gold clauses in contracts.

Sec. 2610. Qualified family partnerships.

Sec. 2611. Cooperative efforts between depository institutions and farmers

and ranchers in drought-stricken areas.

Sec. 2612. Streamlining process for determining new nonbanking activities.

Sec. 2613. Authorizing bank service companies to organize as limited liability partnerships.

Sec. 2614. Retirement certificates of deposits.

Sec. 2615. Prohibitions on certain depository institution associations with

Government-sponsored enterprises.

Subtitle G—Deposit Insurance Funds

Sec. 2701. Short title.

Sec. 2702. Special assessment to capitalize SAIF.

Sec. 2703. Financing corporation funding.

Sec. 2704. Merger of BIF and SAIF.

Sec. 2705. Creation of SAIF special reserve.

Sec. 2706. Refund of amounts in deposit insurance fund in excess of designated reserve amount.

Sec. 2707. Assessment rates for SAIF members may not be less than assessment rates for BIF members.

Sec. 2708. Assessments authorized only if needed to maintain the reserve

ratio of a deposit insurance fund.

Sec. 2709. Treasury study of common depository institution charter.

Sec. 2710. Definitions.

Sec. 2711. Deductions for special assessments.

(c) DEFINITIONS.—Except as otherwise specified in this title,

the following definitions shall apply for purposes of this title:

(1) APPRAISAL SUBCOMMITTEE.—The term ‘‘Appraisal Subcommittee’’ means the Appraisal Subcommittee established

under section 1011 of the Federal Financial Institutions Examination Council Act of 1978 (as in existence on the day before

the date of enactment of this Act).

(2) APPROPRIATE FEDERAL BANKING AGENCY.—The term

‘‘appropriate Federal banking agency’’ has the same meaning

as in section 3 of the Federal Deposit Insurance Act.

12 USC 252 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–398

(3) BOARD.—The term ‘‘Board’’ means the Board of Governors of the Federal Reserve System.

(4) CORPORATION.—The term ‘‘Corporation’’ means the Federal Deposit Insurance Corporation.

(5) COUNCIL.—The term ‘‘Council’’ means the Financial

Institutions Examination Council established under section

1004 of the Federal Financial Institutions Examination Council

Act of 1978.

(6) INSURED CREDIT UNION.—The term ‘‘insured credit

union’’ has the same meaning as in section 101 of the Federal

Credit Union Act.

(7) INSURED DEPOSITORY INSTITUTION.—The term ‘‘insured

depository institution’’ has the same meaning as in section

3 of the Federal Deposit Insurance Act.

Subtitle A—Streamlining the Home

Mortgage Lending Process

SEC. 2101. SIMPLIFICATION AND UNIFICATION OF DISCLOSURES

REQUIRED UNDER RESPA AND TILA FOR MORTGAGE

TRANSACTIONS.

(a) IN GENERAL.—With respect to credit transactions which

are subject to the Real Estate Settlement Procedures Act of 1974

and the Truth in Lending Act, the Board of Governors of the

Federal Reserve System (hereafter in this section referred to as

the ‘‘Board’’) and the Secretary of Housing and Urban Development

(hereafter in this section referred to as the ‘‘Secretary’’) shall take

such action as may be necessary before the end of the 6-month

period beginning on the date of enactment of this Act—

(1) to simplify and improve the disclosures applicable to

such transactions under such Acts, including the timing of

the disclosures; and

(2) to provide a single format for such disclosures which

will satisfy the requirements of each such Act with respect

to such transactions.

(b) REGULATIONS.—To the extent that it is necessary to prescribe any regulation in order to effect any changes required to

be made under subsection (a), the proposed regulation shall be

published in the Federal Register before the end of the 6-month

period referred to in subsection (a).

(c) RECOMMENDATIONS FOR LEGISLATION.—If the Board and

the Secretary find that legislative action may be necessary or appropriate in order to simplify and unify the disclosure requirements

under the Real Estate Settlement Procedures Act of 1974 and

the Truth in Lending Act, the Board and the Secretary shall submit

a report containing recommendations to the Congress concerning

such action.

SEC. 2102. GENERAL EXEMPTION AUTHORITY FOR LOANS.

(a) REGULATORY FLEXIBILITY.—Section 104 of the Truth in

Lending Act (15 U.S.C. 1603) is amended—

(1) by redesignating paragraphs (5) and (6) as paragraphs

(6) and (7), respectively; and

(2) by inserting after paragraph (4) the following new paragraph:

12 USC 2601

note.
110 STAT. 3009–399 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(5) Transactions for which the Board, by rule, determines

that coverage under this title is not necessary to carry out

the purposes of this title.’’.

(b) EXEMPTION AUTHORITY.—Section 105 of the Truth in Lending Act (15 U.S.C. 1604) is amended by adding at the end the

following new subsection:

‘‘(f) EXEMPTION AUTHORITY.—

‘‘(1) IN GENERAL.—The Board may exempt, by regulation,

from all or part of this title any class of transactions, other

than transactions involving any mortgage described in section

103(aa), for which, in the determination of the Board, coverage

under all or part of this title does not provide a meaningful

benefit to consumers in the form of useful information or protection.

‘‘(2) FACTORS FOR CONSIDERATION.—In determining which

classes of transactions to exempt in whole or in part under

paragraph (1), the Board shall consider the following factors

and publish its rationale at the time a proposed exemption

is published for comment:

‘‘(A) The amount of the loan and whether the disclosures, right of rescission, and other provisions provide a

benefit to the consumers who are parties to such transactions, as determined by the Board.

‘‘(B) The extent to which the requirements of this title

complicate, hinder, or make more expensive the credit process for the class of transactions.

‘‘(C) The status of the borrower, including—

‘‘(i) any related financial arrangements of the borrower, as determined by the Board;

‘‘(ii) the financial sophistication of the borrower

relative to the type of transaction; and

‘‘(iii) the importance to the borrower of the credit,

related supporting property, and coverage under this

title, as determined by the Board;

‘‘(D) whether the loan is secured by the principal residence of the consumer; and

‘‘(E) whether the goal of consumer protection would

be undermined by such an exemption.’’.

SEC. 2103. REDUCTIONS IN REAL ESTATE SETTLEMENT PROCEDURES

ACT OF 1974 REGULATORY BURDENS.

(a) UNNECESSARY DISCLOSURE.—Section 6(a) of the Real Estate

Settlement Procedures Act of 1974 (12 U.S.C. 2605(a)) is amended

to read as follows:

‘‘(a) DISCLOSURE TO APPLICANT RELATING TO ASSIGNMENT, SALE,

OR TRANSFER OF LOAN SERVICING.—Each person who makes a

federally related mortgage loan shall disclose to each person who

applies for the loan, at the time of application for the loan, whether

the servicing of the loan may be assigned, sold, or transferred

to any other person at any time while the loan is outstanding.’’.

(b) CONSISTENCY OF REAL ESTATE SETTLEMENT PROCEDURES

ACT AND TRUTH IN LENDING ACT EXEMPTION OF BUSINESS LOANS.—

Section 7 of the Real Estate Settlement Procedures Act of 1974

(12 U.S.C. 2606) is amended—

(1) by striking ‘‘This Act’’ and inserting the following:

‘‘(a) IN GENERAL.—This Act’’; and

(2) by adding at the end the following new subsection:
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–400

‘‘(b) INTERPRETATION.—In prescribing regulations under section

19(a), the Secretary shall ensure that, with respect to subsection

(a) of this section, the exemption for credit transactions involving

extensions of credit primarily for business, commercial, or agricultural purposes, as provided in section 7(1) of the Real Estate Settlement Procedures Act of 1974 shall be the same as the exemption

for such credit transactions under section 104(1) of the Truth in

Lending Act.’’.

(c) REDESIGNATION OF CONTROLLED BUSINESS ARRANGEMENTS

AS AFFILIATED BUSINESS ARRANGEMENTS.—The Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2601 et seq.) is amended—

(1) in section 3(7), by striking ‘‘controlled business arrangement’’ and inserting ‘‘affiliated business arrangement’’; and

(2) in subsections (c)(4) and (d)(6) of section 8, by striking

‘‘controlled business arrangements’’ and inserting ‘‘affiliated

business arrangements’’.

(d) DISCLOSURES BY TELEPHONE OR ELECTRONIC MEDIA.—Section 8(c)(4) of the Real Estate Settlement Procedures Act of 1974

(12 U.S.C. 2607(c)(4)(A)) is amended by striking subparagraph (A)

and inserting the following ‘‘(A) a disclosure is made of the existence

of such an arrangement to the person being referred and, in connection with such referral, such person is provided a written estimate

of the charge or range of charges generally made by the provider

to which the person is referred (i) in the case of a face-to-face

referral or a referral made in writing or by electronic media, at

or before the time of the referral (and compliance with this requirement in such case may be evidenced by a notation in a written,

electronic, or similar system of records maintained in the regular

course of business); (ii) in the case of a referral made by telephone,

within 3 business days after the referral by telephone, (and in

such case an abbreviated verbal disclosure of the existence of the

arrangement and the fact that a written disclosure will be provided

within 3 business days shall be made to the person being referred

during the telephone referral); or (iii) in the case of a referral

by a lender (including a referral by a lender to an affiliated lender),

at the time the estimates required under section 5(c) are provided

(notwithstanding clause (i) or (ii)); and any required written receipt

of such disclosure (without regard to the manner of the disclosure

under clause (i), (ii), or (iii)) may be obtained at the closing or

settlement (except that a person making a face-to-face referral

who provides the written disclosure at or before the time of the

referral shall attempt to obtain any required written receipt of

such disclosure at such time and if the person being referred chooses

not to acknowledge the receipt of the disclosure at that time, that

fact shall be noted in the written, electronic, or similar system

of records maintained in the regular course of business by the

person making the referral),’’.

(e) LIMITATION ON CLAIMS ARISING FROM VIOLATIONS OF

REQUIREMENTS FOR SERVICING MORTGAGES AND ADMINISTERING

ESCROW ACCOUNTS.—Section 16 of the Real Estate Settlement

Procedures Act of 1974 (12 U.S.C. 2614) is amended—

(1) by striking ‘‘section 8 or 9’’ and inserting ‘‘section 6,

8, or 9’’; and

(2) by striking ‘‘within one year’’ and inserting ‘‘within

3 years in the case of a violation of section 6 and 1 year

in the case of a violation of section 8 or 9’’.

12 USC 2607.

12 USC 2602.
110 STAT. 3009–401 PUBLIC LAW 104–208—SEPT. 30, 1996

(f) DELAY OF EFFECTIVENESS OF RECENT FINAL REGULATION

RELATING TO PAYMENTS TO EMPLOYEES.—Section 19 of the Real

Estate Settlement Procedures Act of 1974 (12 U.S.C. 2617) is

amended by adding at the end the following new subsection:

‘‘(d) DELAY OF EFFECTIVENESS OF RECENT FINAL REGULATION

RELATING TO PAYMENTS TO EMPLOYEES.—

‘‘(1) IN GENERAL.—The amendment to part 3500 of title

24 of the Code of Federal Regulations contained in the final

regulation prescribed by the Secretary and published in the

Federal Register on June 7, 1996, which will, as of the effective

date of such amendment—

‘‘(A) eliminate the exemption for payments by an

employer to employees of such employer for referral activities which is currently codified as section 3500.14(g)(1)(vii)

of such title 24; and

‘‘(B) replace such exemption with a more limited

exemption in new clauses (vii), (viii), and (ix) of section

3500.14 of such title 24,

shall not take effect before July 31, 1997.

‘‘(2) CONTINUATION OF PRIOR RULE.—The regulation codified

as section 3500.14(g)(1)(vii) of title 24 of the Code of Federal

Regulations, relating to employer-employee payments, as in

effect on May 1, 1996, shall remain in effect until the date

the amendment referred to in paragraph (1) takes effect in

accordance with such paragraph.

‘‘(3) PUBLIC NOTICE OF EFFECTIVE DATE.—The Secretary

shall provide public notice of the date on which the amendment

referred to in paragraph (1) will take effect in accordance

with such paragraph not less than 90 days and not more

than 180 days before such effective date.’’.

(g) TECHNICAL AND CONFORMING AMENDMENTS.—

(1) Section 4(a) of the Real Estate Settlement Procedures

Act of 1974 (12 U.S.C. 2603(a)) is amended by striking ‘‘Federal

Home Loan Bank Board’’ and inserting ‘‘Director of the Office

of Thrift Supervision’’.

(2) Section 10(c)(1)(C) of the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2609(c)(1)(C)) is amended by

striking ‘‘Not later than the expiration of the 90-day period

beginning on the date of the enactment of the Cranston-Gonzalez National Affordable Housing Act, the’’ and inserting

‘‘The’’.

(h) REPEAL OF OBSOLETE PROVISIONS.—The Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2601 et seq.) is amended

by striking sections 13, 14 and 15.

SEC. 2104. WAIVER FOR CERTAIN BORROWERS.

Section 105 of the Truth in Lending Act (15 U.S.C. 1604)

is amended by adding at the end the following new subsection:

‘‘(g) WAIVER FOR CERTAIN BORROWERS.—

‘‘(1) IN GENERAL.—The Board, by regulation, may exempt

from the requirements of this title certain credit transactions

if—

‘‘(A) the transaction involves a consumer—

‘‘(i) with an annual earned income of more than

$200,000; or

‘‘(ii) having net assets in excess of $1,000,000 at

the time of the transaction; and

12 USC 2611–

2613.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–402

‘‘(B) a waiver that is handwritten, signed, and dated

by the consumer is first obtained from the consumer.

‘‘(2) ADJUSTMENTS BY THE BOARD.—The Board, at its discretion, may adjust the annual earned income and net asset

requirements of paragraph (1) for inflation.’’.

SEC. 2105. ALTERNATIVE DISCLOSURES FOR ADJUSTABLE RATE MORTGAGES.

Section 128(a) of the Truth in Lending Act (15 U.S.C. 1638(a))

is amended by adding at the end the following new paragraph:

‘‘(14) In the case of any variable interest rate residential

mortgage transaction, in disclosures provided at application

as prescribed by the Board for a variable rate transaction

secured by the consumer’s principal dwelling, at the option

of the creditor, a statement that the periodic payments may

increase or decrease substantially, and the maximum interest

rate and payment for a $10,000 loan originated at a recent

interest rate, as determined by the Board, assuming the maximum periodic increases in rates and payments under the program, or a historical example illustrating the effects of interest

rate changes implemented according to the loan program.’’.

SEC. 2106. RESTITUTION FOR VIOLATIONS OF THE TRUTH IN LENDING

ACT.

Section 108(e)(3) of the Truth in Lending Act (15 U.S.C. 2602(3))

is amended—

(1) by striking ‘‘ordered (A) if’’ and inserting the following:

‘‘ordered—

‘‘(A) if’’;

(2) by striking ‘‘may require a partial’’ and inserting ‘‘may—

‘‘(i) require a partial’’;

(3) by striking ‘‘, except that with respect’’ and all that

follows through ‘‘Act, the agency shall require’’ and inserting

‘‘; or

‘‘(ii) require’’;

(4) by striking ‘‘reasonable, (B) the’’ and inserting the following: ‘‘reasonable, if (in the case of an agency referred to

in paragraph (1), (2), or (3) of subsection (a)), the agency determines that a partial adjustment or making partial payments

over an extended period is necessary to avoid causing the

creditor to become undercapitalized pursuant to section 38 of

the Federal Deposit Insurance Act;

‘‘(B) the’’; and

(5) by striking ‘‘(C) except’’ and inserting the following:

‘‘(C) except’’.

SEC. 2107. LIMITATION ON LIABILITY UNDER THE TRUTH IN LENDING

ACT.

(a) IN GENERAL.—Section 139(a) of the Truth in Lending Act

(15 U.S.C. 1649(a)) is amended by striking ‘‘For any consumer

credit transaction subject to this title’’ and inserting ‘‘For any closed

end consumer credit transaction that is secured by real property

or a dwelling, that is subject to this title, and’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall be effective as of September 30, 1995.

15 USC 1649

note.

15 USC 1607.
110 STAT. 3009–403 PUBLIC LAW 104–208—SEPT. 30, 1996

Subtitle B—Streamlining Government

Regulation

CHAPTER 1—ELIMINATING UNNECESSARY

REGULATORY REQUIREMENTS AND PROCEDURES

SEC. 2201. ELIMINATION OF REDUNDANT APPROVAL REQUIREMENT

FOR OAKAR TRANSACTIONS.

(a) IN GENERAL.—Section 5(d)(3) of the Federal Deposit Insurance Act (12 U.S.C. 1815(d)(3)) is amended—

(1) in subparagraph (A), by striking ‘‘with the prior written

approval of’’ and inserting ‘‘if the transaction is approved by’’;

(2) in subparagraph (E)—

(A) by striking clauses (i) and (iv);

(B) by redesignating clauses (ii) and (iii) as clauses

(i) and (ii), respectively; and

(C) by adding at the end the following new clause:

‘‘(iii) CAPITAL REQUIREMENTS.—A transaction

described in this paragraph shall not be approved

under section 18(c)(2) unless the acquiring, assuming,

or resulting depository institution will meet all

applicable capital requirements upon consummation of

the transaction.’’;

(3) by striking subparagraph (G); and

(4) by redesignating subparagraphs (H) through (J) as subparagraphs (G) through (I), respectively.

(b) CONFORMING AMENDMENTS.—

(1) REVISED STATUTES.—Section 5156A(b)(1) of the Revised

Statutes of the United States (12 U.S.C. 215c(b)(1)) is amended

by striking ‘‘by section 5(d)(3) of the Federal Deposit Insurance

Act or any other’’ and inserting ‘‘under any’’.

(2) HOME OWNERS’ LOAN ACT.—Section 10(s)(2)(A) of the

Home Owners’ Loan Act (12 U.S.C. 1467a(s)(2)(A)) is amended

by striking ‘‘under section 5(d)(3) of the Federal Deposit Insurance Act or any other’’ and inserting ‘‘under any’’.

SEC. 2203. ELIMINATION OF DUPLICATIVE REQUIREMENTS IMPOSED

UPON BANK HOLDING COMPANIES.

(a) EXEMPTION FOR BANK HOLDING COMPANIES.—Section 10

of the Home Owners’ Loan Act (12 U.S.C. 1467a) is amended

by adding at the end the following new subsection:

‘‘(t) EXEMPTION FOR BANK HOLDING COMPANIES.—This section

shall not apply to a bank holding company that is subject to the

Bank Holding Company Act of 1956, or any company controlled

by such bank holding company.’’.

(b) DEFINITION.—Section 10(a)(1)(D) of the Home Owners’ Loan

Act (12 U.S.C. 1467a(a)(1)(D)) is amended to read as follows:

‘‘(D) SAVINGS AND LOAN HOLDING COMPANY.—

‘‘(i) IN GENERAL.—Except as provided in clause

(ii), the term ‘savings and loan holding company’ means

any company that directly or indirectly controls a savings association or that controls any other company

that is a savings and loan holding company.

‘‘(ii) EXCLUSION.—The term ‘savings and loan holding company’ does not include a bank holding company

that is registered under, and subject to, the Bank
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–404

Holding Company Act of 1956, or to any company

directly or indirectly controlled by such company (other

than a savings association).’’.

(c) ACQUISITIONS.—Section 10(e)(1) of the Home Owners’ Loan

Act (12 U.S.C. 1467a(e)(1)) is amended—

(1) in subparagraph (A)(iii)(VII), by inserting ‘‘or’’ at the

end;

(2) in subparagraph (A)(iv), by inserting ‘‘and’’ at the end;

and

(3) in subparagraph (B)—

(A) by striking ‘‘or (ii)’’ and inserting ‘‘(ii)’’; and

(B) by inserting before the first period ‘‘, or (iii)

acquired by a bank holding company that is registered

under, and subject to, the Bank Holding Company Act

of 1956, or any company controlled by such bank holding

company’’.

(d) AMENDMENTS TO THE BANK HOLDING COMPANY ACT OF

1956.—Section 4(i) of the Bank Holding Company Act of 1956

(12 U.S.C. 1843(i)) is amended by adding at the end the following

new paragraphs:

‘‘(4) SOLICITATION OF VIEWS.—

‘‘(A) NOTICE TO DIRECTOR.—Upon receiving any

application or notice by a bank holding company to acquire,

directly or indirectly, a savings association under subsection (c)(8), the Board shall solicit comments and recommendations from the Director with respect to such

acquisition.

‘‘(B) COMMENT PERIOD.—The comments and recommendations of the Director under subparagraph (A) with

respect to any acquisition subject to such subparagraph

shall be transmitted to the Board not later than 30 days

after the receipt by the Director of the notice relating

to such acquisition (or such shorter period as the Board

may specify if the Board advises the Director that an

emergency exists that requires expeditious action).

‘‘(5) EXAMINATION.—

‘‘(A) SCOPE.—The Board shall consult with the Director,

as appropriate, in establishing the scope of an examination

by the Board of a bank holding company that directly

or indirectly controls a savings association.

‘‘(B) ACCESS TO INSPECTION REPORTS.—Upon the

request of the Director, the Board shall furnish the Director

with a copy of any inspection report, additional examination

materials, or supervisory information relating to any bank

holding company that directly or indirectly controls a savings association.

‘‘(6) COORDINATION OF ENFORCEMENT EFFORTS.—The Board

and the Director shall cooperate in any enforcement action

against any bank holding company that controls a savings

association, if the relevant conduct involves such association.

‘‘(7) DIRECTOR DEFINED.—For purposes of this section, the

term ‘Director’ means the Director of the Office of Thrift Supervision.’’.
110 STAT. 3009–405 PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 2204. ELIMINATION OF THE PER BRANCH CAPITAL REQUIREMENT

FOR NATIONAL BANKS AND STATE MEMBER BANKS.

Section 5155(h) of the Revised Statutes of the United States

(12 U.S.C. 36(h)) is amended to read as follows:

‘‘(h) [Repealed]’’.

SEC. 2205. ELIMINATION OF BRANCH APPLICATION REQUIREMENTS

FOR AUTOMATIC TELLER MACHINES.

(a) ‘‘BRANCH’’ UNDER NATIONAL BANK ACT.—Section 5155(j)

of the Revised Statutes of the United States (12 U.S.C. 36(j)) is

amended by adding at the end the following: ‘‘The term ‘branch’,

as used in this section, does not include an automated teller

machine or a remote service unit.’’.

(b) ‘‘DOMESTIC BRANCH’’ UNDER THE FEDERAL DEPOSIT INSUR- ANCE ACT.—Section 3(o) of the Federal Deposit Insurance Act (12

U.S.C. 1813(o)) is amended by striking ‘‘lent; and the’’ and inserting

‘‘lent. The term ‘domestic branch’ does not include an automated

teller machine or a remote service unit. The’’.

SEC. 2206. ELIMINATION OF REQUIREMENT FOR APPROVAL OF INVESTMENTS IN BANK PREMISES FOR WELL CAPITALIZED AND

WELL MANAGED BANKS.

Section 24A of the Federal Reserve Act (12 U.S.C. 371d) is

amended to read as follows:

‘‘SEC. 24A. INVESTMENT IN BANK PREMISES OR STOCK OF CORPORATION HOLDING PREMISES.

‘‘(a) CONDITIONS OF INVESTMENT.—No national bank or State

member bank shall invest in bank premises, or in the stock, bonds,

debentures, or other such obligations of any corporation holding

the premises of such bank, or make loans to or upon the security

of any such corporation—

‘‘(1) unless the bank receives the prior approval of the

Comptroller of the Currency (with respect to a national bank)

or the Board (with respect to a State member bank);

‘‘(2) unless the aggregate of all such investments and loans,

together with the amount of any indebtedness incurred by

any such corporation that is an affiliate of the bank, is less

than or equal to the amount of the capital stock of such bank;

or

‘‘(3) unless—

‘‘(A) the aggregate of all such investments and loans,

together with the amount of any indebtedness incurred

by any such corporation that is an affiliate of the bank,

is less than or equal to 150 percent of the capital and

surplus of the bank; and

‘‘(B) the bank—

‘‘(i) has a CAMEL composite rating of 1 or 2 under

the Uniform Financial Institutions Rating System (or

an equivalent rating under a comparable rating system) as of the most recent examination of such bank;

‘‘(ii) is well capitalized and will continue to be

well capitalized after the investment or loan; and

‘‘(iii) provides notification to the Comptroller of

the Currency (with respect to a national bank) or to

the Board (with respect to a State member bank) not

later than 30 days after making the investment or

loan.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–406

‘‘(b) DEFINITIONS.—For purposes of this section—

‘‘(1) the term ‘affiliate’ has the same meaning as in section

2 of the Banking Act of 1933; and

‘‘(2) the term ‘well capitalized’ has the same meaning as

in section 38(b) of the Federal Deposit Insurance Act.’’.

SEC. 2207. ELIMINATION OF APPROVAL REQUIREMENT FOR

DIVESTITURES.

Section 2(g) of the Bank Holding Company Act of 1956 (12

U.S.C. 1841(g)) is amended—

(1) in paragraph (1), by adding ‘‘and’’ at the end;

(2) in paragraph (2), by striking ‘‘; and’’ and inserting

a period; and

(3) by striking paragraph (3).

SEC. 2208. STREAMLINED NONBANKING ACQUISITIONS BY WELL

CAPITALIZED AND WELL MANAGED BANKING ORGANIZATIONS.

(a) NOTICE REQUIREMENTS.—Section 4(j) of the Bank Holding

Company Act of 1956 (12 U.S.C. 1843(j)) is amended—

(1) in paragraph (1)(A), by striking ‘‘No’’ and inserting

‘‘Except as provided in paragraph (3), no’’; and

(2) by adding at the end the following new paragraphs:

‘‘(3) NO NOTICE REQUIRED FOR CERTAIN TRANSACTIONS.—

No notice under paragraph (1) of this subsection or under

subsection (c)(8) or (a)(2)(B) is required for a proposal by a

bank holding company to engage in any activity or acquire

the shares or assets of any company, other than an insured

depository institution, if the proposal qualifies under paragraph

(4).

‘‘(4) CRITERIA FOR STATUTORY APPROVAL.—A proposal qualifies under this paragraph if all of the following criteria are

met:

‘‘(A) FINANCIAL CRITERIA.—Both before and immediately after the proposed transaction—

‘‘(i) the acquiring bank holding company is well

capitalized;

‘‘(ii) the lead insured depository institution of such

holding company is well capitalized;

‘‘(iii) well capitalized insured depository institutions control at least 80 percent of the aggregate total

risk-weighted assets of insured depository institutions

controlled by such holding company; and

‘‘(iv) no insured depository institution controlled

by such holding company is undercapitalized.

‘‘(B) MANAGERIAL CRITERIA.—

‘‘(i) WELL MANAGED.—At the time of the transaction, the acquiring bank holding company, its lead

insured depository institution, and insured depository

institutions that control at least 90 percent of the

aggregate total risk-weighted assets of insured depository institutions controlled by such holding company

are well managed.

‘‘(ii) LIMITATION ON POORLY MANAGED INSTITUTIONS.—Except as provided in paragraph (6), no

insured depository institution controlled by the acquiring bank holding company has received 1 of the 2
110 STAT. 3009–407 PUBLIC LAW 104–208—SEPT. 30, 1996

lowest composite ratings at the later of the institution’s

most recent examination or subsequent review.

‘‘(C) ACTIVITIES PERMISSIBLE.—Following consummation of the proposal, the bank holding company engages

directly or through a subsidiary solely in—

‘‘(i) activities that are permissible under subsection

(c)(8), as determined by the Board by regulation or

order thereunder, subject to all of the restrictions,

terms, and conditions of such subsection and such regulation or order; and

‘‘(ii) such other activities as are otherwise permissible under this section, subject to the restrictions,

terms and conditions, including any prior notice or

approval requirements, provided in this section.

‘‘(D) SIZE OF ACQUISITION.—

‘‘(i) ASSET SIZE.—The book value of the total assets

to be acquired does not exceed 10 percent of the consolidated total risk-weighted assets of the acquiring bank

holding company.

‘‘(ii) CONSIDERATION.—The gross consideration to

be paid for the securities or assets does not exceed

15 percent of the consolidated Tier 1 capital of the

acquiring bank holding company.

‘‘(E) NOTICE NOT OTHERWISE WARRANTED.—For proposals described in paragraph (5)(B), the Board has not, before

the conclusion of the period provided in paragraph (5)(B),

advised the bank holding company that a notice under

paragraph (1) is required.

‘‘(F) COMPLIANCE CRITERION.—During the 12-month

period ending on the date on which the bank holding company proposes to commence an activity or acquisition, no

administrative enforcement action has been commenced,

and no cease and desist order has been issued pursuant

to section 8 of the Federal Deposit Insurance Act, against

the bank holding company or any depository institution

subsidiary of the holding company, and no such enforcement action, order, or other administrative enforcement

proceeding is pending as of such date.

‘‘(5) NOTIFICATION.—

‘‘(A) COMMENCEMENT OF ACTIVITIES APPROVED BY

RULE.—A bank holding company that qualifies under paragraph (4) and that proposes to engage de novo, directly

or through a subsidiary, in any activity that is permissible

under subsection (c)(8), as determined by the Board by

regulation, may commence that activity without prior notice

to the Board and must provide written notification to the

Board not later than 10 business days after commencing

the activity.

‘‘(B) ACTIVITIES PERMITTED BY ORDER AND ACQUISITIONS.—

‘‘(i) IN GENERAL.—At least 12 business days before

commencing any activity pursuant to paragraph (3)

(other than an activity described in subparagraph (A)

of this paragraph) or acquiring shares or assets of
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–408

any company pursuant to paragraph (3), the bank holding company shall provide written notice of the proposal to the Board, unless the Board determines that

no notice or a shorter notice period is appropriate.

‘‘(ii) DESCRIPTION OF ACTIVITIES AND TERMS.—A

notification under this subparagraph shall include a

description of the proposed activities and the terms

of any proposed acquisition.

‘‘(6) RECENTLY ACQUIRED INSTITUTIONS.—Any insured

depository institution which has been acquired by a bank holding company during the 12-month period preceding the date

on which the company proposes to commence an activity or

acquisition pursuant to paragraph (3) may be excluded for

purposes of paragraph (4)(B)(ii) if—

‘‘(A) the bank holding company has developed a plan

for the institution to restore the capital and management

of the institution which is acceptable to the appropriate

Federal banking agency; and

‘‘(B) all such insured depository institutions represent,

in the aggregate, less than 10 percent of the aggregate

total risk-weighted assets of all insured depository institutions controlled by the bank holding company.

‘‘(7) ADJUSTMENT OF PERCENTAGES.—The Board may, by

regulation, adjust the percentages and the manner in which

the percentages of insured depository institutions are calculated

under paragraph (4)(B)(i), (4)(D), or (6)(B) if the Board determines that any such adjustment is consistent with safety and

soundness and the purposes of this Act.’’.

(b) DEFINITIONS.—Section 2(o) of the Bank Holding Company

Act of 1956 (12 U.S.C. 1841(o)) is amended—

(1) by striking paragraph (1) and inserting the following

new paragraph:

‘‘(1) CAPITAL TERMS.—

‘‘(A) INSURED DEPOSITORY INSTITUTIONS.—With respect

to insured depository institutions, the terms ‘well capitalized’, ‘adequately capitalized’, and ‘undercapitalized’ have

the same meanings as in section 38(b) of the Federal

Deposit Insurance Act.

‘‘(B) BANK HOLDING COMPANY.—

‘‘(i) ADEQUATELY CAPITALIZED.—With respect to a

bank holding company, the term ‘adequately capitalized’ means a level of capitalization which meets or

exceeds all applicable Federal regulatory capital standards.

‘‘(ii) WELL CAPITALIZED.—A bank holding company

is ‘well capitalized’ if it meets the required capital

levels for well capitalized bank holding companies

established by the Board.

‘‘(C) OTHER CAPITAL TERMS.—The terms ‘Tier 1’ and

‘risk-weighted assets’ have the meanings given those terms

in the capital guidelines or regulations established by the

Board for bank holding companies.’’; and

(2) by adding at the end the following new paragraphs:

‘‘(8) LEAD INSURED DEPOSITORY INSTITUTIONS.—

‘‘(A) IN GENERAL.—The term ‘lead insured depository

institution’ means the largest insured depository institution

controlled by the subject bank holding company at any
110 STAT. 3009–409 PUBLIC LAW 104–208—SEPT. 30, 1996

time, based on a comparison of the average total riskweighted assets controlled by each insured depository

institution during the previous 12-month period.

‘‘(B) BRANCH OR AGENCY.—For purposes of this paragraph and section 4(j)(4), the term ‘insured depository

institution’ includes any branch or agency operated in the

United States by a foreign bank.

‘‘(9) WELL MANAGED.—The term ‘well managed’ means—

‘‘(A) in the case of any company or depository institution which receives examinations, the achievement of—

‘‘(i) a CAMEL composite rating of 1 or 2 (or an

equivalent rating under an equivalent rating system)

in connection with the most recent examination or

subsequent review of such company or institution; and

‘‘(ii) at least a satisfactory rating for management,

if such rating is given; or

‘‘(B) in the case of a company or depository institution

that has not received an examination rating, the existence

and use of managerial resources which the Board determines are satisfactory.’’.

SEC. 2209. ELIMINATION OF UNNECESSARY FILING FOR OFFICER AND

DIRECTOR APPOINTMENTS.

Section 32 of the Federal Deposit Insurance Act (12 U.S.C.

1831i) is amended—

(1) in subsection (a)—

(A) by inserting ‘‘(or such other period, as determined

by the appropriate Federal banking agency)’’ after ‘‘30

days’’;

(B) by striking ‘‘if the insured depository institution

or depository institution holding company’’ and inserting

‘‘if ’’;

(C) by striking paragraphs (1) and (2);

(D) by redesignating paragraph (3) as paragraph (1);

(E) in paragraph (1), as redesignated—

(i) by inserting ‘‘the insured depository institution

or depository institution holding company’’ before ‘‘is

not in compliance’’; and

(ii) by striking the period at the end and inserting

‘‘; or’’; and

(F) by adding at the end the following new paragraph:

‘‘(2) the agency determines, in connection with the review

by the agency of the plan required under section 38 or otherwise, that such prior notice is appropriate.’’; and

(2) in subsection (b), by striking ‘‘30-day period’’ and inserting ‘‘notice period, not to exceed 90 days,’’.

SEC. 2210. AMENDMENTS TO THE DEPOSITORY INSTITUTION MANAGEMENT INTERLOCKS ACT.

(a) DUAL SERVICE AMONG LARGER ORGANIZATIONS.—Section 204

of the Depository Institution Management Interlocks Act (12 U.S.C.

3203) is amended—

(1) by striking ‘‘$1,000,000,000’’ and inserting

‘‘$2,500,000,000’’;

(2) by striking ‘‘$500,000,000’’ and inserting

‘‘$1,500,000,000’’; and
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–410

(3) by adding at the end the following: ‘‘In order to allow

for inflation or market changes, the appropriate Federal depository institutions regulatory agencies may, by regulation, adjust,

as necessary, the amount of total assets required for depository

institutions or depository holding companies under this section.’’.

(b) EXTENSION OF GRANDFATHER EXEMPTION.—Section 206 of

the Depository Institution Management Interlocks Act (12 U.S.C.

3205) is amended—

(1) in subsection (a), by striking ‘‘for a period of, subject

to the requirements of subsection (c), 20 years after the date

of enactment of this title’’;

(2) in subsection (b), by striking the second sentence; and

(3) by striking subsection (c).

(c) REGULATIONS.—Section 209 of the Depository Institution

Management Interlocks Act (12 U.S.C. 3207) is amended—

(1) in subsection (a)—

(A) by striking ‘‘(a) IN GENERAL.—Rules and regulations’’ and inserting ‘‘Regulations’’;

(B) by inserting ‘‘, including regulations that permit

service by a management official that would otherwise

be prohibited by section 203 or section 204, if such service

would not result in a monopoly or substantial lessening

of competition,’’ after ‘‘title’’;

(C) in paragraph (4)—

(i) by striking ‘‘Federal Home Loan Bank Board’’

and inserting ‘‘Director of the Office of Thrift Supervision’’; and

(ii) by striking ‘‘Savings and Loan’’ and inserting

‘‘Deposit’’; and

(2) by striking subsections (b) and (c).

SEC. 2211. ELIMINATION OF RECORDKEEPING AND REPORTING

REQUIREMENTS FOR OFFICERS.

(a) EMPLOYEE BENEFIT PLANS.—Section 22(h)(2) of the Federal

Reserve Act (12 U.S.C. 375b(2)) is amended—

(1) by redesignating subparagraphs (A) through (C) as

clauses (i) through (iii), respectively, and indenting appropriately;

(2) by striking ‘‘(2) PREFERENTIAL TERMS PROHIBITED.—

’’ and inserting the following:

‘‘(2) PREFERENTIAL TERMS PROHIBITED.—

‘‘(A) IN GENERAL.—’’; and

(3) by adding at the end the following new subparagraph:

‘‘(B) EXCEPTION.—Nothing in this paragraph shall prohibit any extension of credit made pursuant to a benefit

or compensation program—

‘‘(i) that is widely available to employees of the

member bank; and

‘‘(ii) that does not give preference to any officer,

director, or principal shareholder of the member bank,

or to any related interest of such person, over other

employees of the member bank.’’.

(b) EXCEPTION FOR EXTENSIONS OF CREDIT TO EXECUTIVE OFFICERS AND DIRECTORS OF AFFILIATES.—Section 22(h)(8)(B) of the

Federal Reserve Act (12 U.S.C. 375b(8)(B)) is amended to read

as follows:
110 STAT. 3009–411 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(B) EXCEPTION.—The Board may, by regulation, make

exceptions to subparagraph (A) for any executive officer

or director of a subsidiary of a company that controls

the member bank if—

‘‘(i) the executive officer or director does not have

authority to participate, and does not participate, in

major policymaking functions of the member bank;

and

‘‘(ii) the assets of such subsidiary do not exceed

10 percent of the consolidated assets of a company

that controls the member bank and such subsidiary

(and is not controlled by any other company).’’.

SEC. 2212. REPAYMENT OF TREASURY LOAN.

Section 1108 of the Federal Financial Institutions Reform,

Recovery, and Enforcement Act of 1989 (12 U.S.C. 3337) is amended

by adding at the end the following new subsection.—

‘‘(c) REPAYMENT OF TREASURY LOAN.—Not later than September

30, 1998, the Appraisal Subcommittee shall repay to the Secretary

of the Treasury the unpaid portion of the $5,000,000 paid to the

Appraisal Subcommittee pursuant to this section.’’.

SEC. 2213. BRANCH CLOSURES.

Section 42 of the Federal Deposit Insurance Act (12 U.S.C.

1831r–1) is amended by adding at the end the following new subsection:

‘‘(e) SCOPE OF APPLICATION.—This section shall not apply with

respect to—

‘‘(1) an automated teller machine;

‘‘(2) the relocation of a branch or consolidation of one or

more branches into another branch, if the relocation or consolidation—

‘‘(A) occurs within the immediate neighborhood; and

‘‘(B) does not substantially affect the nature of the

business or customers served; or

‘‘(3) a branch that is closed in connection with—

‘‘(A) an emergency acquisition under—

‘‘(i) section 11(n); or

‘‘(ii) subsection (f) or (k) of section 13; or

‘‘(B) any assistance provided by the Corporation under

section 13(c).’’.

SEC. 2214. FOREIGN BANKS.

(a) EXAMINATION OF BRANCHES AND AGENCIES BY BOARD.—

Section 7(c) of the International Banking Act of 1978 (12 U.S.C.

3105(c)) is amended—

(1) by striking ‘‘(c)’’ and inserting the following:

‘‘(c) FOREIGN BANK EXAMINATIONS AND REPORTING.—’’;

(2) in paragraph (1)(B), by adding at the end the following

new clause:

‘‘(iii) AVOIDANCE OF DUPLICATION.—In exercising

its authority under this paragraph, the Board shall

take all reasonable measures to reduce burden and

avoid unnecessary duplication of examinations.’’;

(3) by striking subparagraph (C) of paragraph (1) and

inserting the following:

‘‘(C) ON-SITE EXAMINATION.—Each Federal branch or

agency, and each State branch or agency, of a foreign
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–412

bank shall be subject to on-site examination by an appropriate Federal banking agency or State bank supervisor

as frequently as would a national bank or a State bank,

respectively, by the appropriate Federal banking agency.’’;

and

(4) in paragraph (1)(D), by inserting before the period at

the end the following: ‘‘, only to the same extent that fees

are collected by the Board for examination of any State member

bank’’.

(b) ESTABLISHMENT OF FOREIGN BANK OFFICES IN THE UNITED

STATES.—Section 7(d) of the International Banking Act of 1978

(12 U.S.C. 3105(d)) is amended—

(1) in paragraph (2), by striking ‘‘The Board’’ and inserting

‘‘Except as provided in paragraph (6), the Board’’;

(2) in paragraph (5), by striking ‘‘Consistent with the standards for approval in paragraph (2), the’’; and inserting ‘‘The’’;

and

(3) by adding at the end the following new paragraphs:

‘‘(6) EXCEPTION.—

‘‘(A) IN GENERAL.—If the Board is unable to find, under

paragraph (2), that a foreign bank is subject to comprehensive supervision or regulation on a consolidated basis by

the appropriate authorities in its home country, the Board

may nevertheless approve an application by such foreign

bank under paragraph (1) if—

‘‘(i) the appropriate authorities in the home country

of the foreign bank are actively working to establish

arrangements for the consolidated supervision of such

bank; and

‘‘(ii) all other factors are consistent with approval.

‘‘(B) OTHER CONSIDERATIONS.—In deciding whether to

use its discretion under subparagraph (A), the Board shall

also consider whether the foreign bank has adopted and

implements procedures to combat money laundering. The

Board may also take into account whether the home country of the foreign bank is developing a legal regime to

address money laundering or is participating in multilateral efforts to combat money laundering.

‘‘(C) ADDITIONAL CONDITIONS.—In approving an

application under this paragraph, the Board, after requesting and taking into consideration the views of the appropriate State bank supervisor or the Comptroller of the

Currency, as the case may be, may impose such conditions

or restrictions relating to the activities or business operations of the proposed branch, agency, or commercial lending company subsidiary, including restrictions on sources

of funding, as are considered appropriate. The Board shall

coordinate with the appropriate State bank supervisor or

the Comptroller of the Currency, as appropriate, in the

implementation of such conditions or restrictions.

‘‘(D) MODIFICATION OF CONDITIONS.—Any condition or

restriction imposed by the Board in connection with the

approval of an application under authority of this paragraph may be modified or withdrawn.

‘‘(7) TIME PERIOD FOR BOARD ACTION.—

‘‘(A) FINAL ACTION.—The Board shall take final action

on any application under paragraph (1) not later than
110 STAT. 3009–413 PUBLIC LAW 104–208—SEPT. 30, 1996

180 days after receipt of the application, except that the

Board may extend for an additional 180 days the period

within which to take final action on such application after

providing notice of, and the reasons for, the extension

to the applicant foreign bank and any appropriate State

bank supervisor or the Comptroller of the Currency, as

appropriate.

‘‘(B) FAILURE TO SUBMIT INFORMATION.—The Board

may deny any application if it does not receive information

requested from the applicant foreign bank or appropriate

authorities in the home country of the foreign bank in

sufficient time to permit the Board to evaluate such

information adequately within the time periods for final

action set forth in subparagraph (A).

‘‘(C) WAIVER.—A foreign bank may waive the

applicability of this paragraph with respect to any application under paragraph (1).’’.

(c) TERMINATION OF FOREIGN BANK OFFICES IN THE UNITED

STATES.—Section 7(e)(1)(A) of the International Banking Act of

1978 (12 U.S.C. 3105(e)(1)(A)) is amended—

(1) by inserting ‘‘(i)’’ after ‘‘(A)’’;

(2) by striking ‘‘or’’ at the end and inserting ‘‘and’’; and

(3) by adding at the end the following new clause:

‘‘(ii) the appropriate authorities in the home country

of the foreign bank are not making demonstrable progress

in establishing arrangements for the comprehensive supervision or regulation of such foreign bank on a consolidated

basis; or’’.

SEC. 2215. DISPOSITION OF FORECLOSED ASSETS.

Section 4(c)(2) of the Bank Holding Company Act of 1956 (12

U.S.C. 1843(c)(2)) is amended—

(1) by striking ‘‘for not more than one year at a time’’;

and

(2) by striking ‘‘but no such extensions shall extend beyond

a date five years’’ and inserting ‘‘and, in the case of a bank

holding company which has not disposed of such shares within

5 years after the date on which such shares were acquired,

the Board may, upon the application of such company, grant

additional exemptions if, in the judgment of the Board, such

extension would not be detrimental to the public interest and,

either the bank holding company has made a good faith attempt

to dispose of such shares during such 5-year period, or the

disposal of such shares during such 5-year period would have

been detrimental to the company, except that the aggregate

duration of such extensions shall not extend beyond 10 years’’.

SEC. 2216. EXEMPTION AUTHORITY FOR ANTITYING PROVISION.

(a) FEDERAL RESERVE BOARD AUTHORITY.—Section 106(b)(1)

of the Bank Holding Company Act Amendments of 1970 (12 U.S.C.

1972(1)) is amended in the last sentence, by inserting ‘‘and the

prohibitions of section 4(f)(9) and 4(h)(2) of the Bank Holding Company Act of 1956’’ after ‘‘prohibition’’.

(b) OTS AUTHORITY.—Section 5(q) of the Home Owners’ Loan

Act (12 U.S.C. 1464(q)) is amended by adding at the end the

following new paragraph:
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–414

‘‘(6) EXCEPTIONS.—The Director may, by regulation or

order, permit such exceptions to the prohibitions of this subsection as the Director considers will not be contrary to the

purposes of this subsection and which conform to exceptions

granted by the Board of Governors of the Federal Reserve

System pursuant to section 106(b) of the Bank Holding Company Act Amendments of 1970.’’.

SEC. 2217. FDIC APPROVAL OF NEW STATE BANK POWERS.

Section 24 of the Federal Deposit Insurance Act (12 U.S.C.

1831a) is amended—

(1) in subsection (a)—

(A) by redesignating paragraphs (1) and (2) as subparagraphs (A) and (B), respectively, and indenting appropriately;

(B) by striking ‘‘IN GENERAL.—’’ and inserting the following: ‘‘PERMISSIBLE ACTIVITIES.— ‘‘(1) IN GENERAL.—’’; and

(C) by adding at the end the following new paragraph:

‘‘(2) PROCESSING PERIOD.— ‘‘(A) IN GENERAL.—The Corporation shall make a determination under paragraph (1)(A) not later than 60 days

after receipt of a completed application that may be

required under this subsection.

‘‘(B) EXTENSION OF TIME PERIOD.—The Corporation may

extend the 60-day period referred to in subparagraph (A)

for not more than 30 additional days, and shall notify

the applicant of any such extension.’’; and

(2) in subsection (d), by adding at the end the following

new paragraph:

‘‘(3) PROCESSING PERIOD.— ‘‘(A) IN GENERAL.—The Corporation shall make a determination under paragraph (1)(A) not later than 60 days

after receipt of a completed application that may be

required under this subsection.

‘‘(B) EXTENSION OF TIME PERIOD.—The Corporation may

extend the 60-day period referred to in subparagraph (A)

for not more than 30 additional days, and shall notify

the applicant of any such extension.’’.

CHAPTER 2—ELIMINATING UNNECESSARY

REGULATORY BURDENS

SEC. 2221. SMALL BANK EXAMINATION CYCLE.

Section 10(d) of the Federal Deposit Insurance Act (12 U.S.C.

1820(d)) is amended—

(1) by redesignating the second paragraph designated as

paragraph (8) as paragraph (10), and by inserting that paragraph, as redesignated, immediately after paragraph (9); and

(2) in paragraph (10), as redesignated, by striking ‘‘$175,000,000’’ and inserting ‘‘$250,000,000’’.

SEC. 2222. REQUIRED REVIEW OF REGULATIONS.

(a) IN GENERAL.—Not less frequently than once every 10 years,

the Council and each appropriate Federal banking agency represented on the Council shall conduct a review of all regulations

prescribed by the Council or by any such appropriate Federal banking agency, respectively, in order to identify outdated or otherwise

12 USC 3311.
110 STAT. 3009–415 PUBLIC LAW 104–208—SEPT. 30, 1996

unnecessary regulatory requirements imposed on insured depository

institutions.

(b) PROCESS.—In conducting the review under subsection (a),

the Council or the appropriate Federal banking agency shall—

(1) categorize the regulations described in subsection (a)

by type (such as consumer regulations, safety and soundness

regulations, or such other designations as determined by the

Council, or the appropriate Federal banking agency); and

(2) at regular intervals, provide notice and solicit public

comment on a particular category or categories of regulations,

requesting commentators to identify areas of the regulations

that are outdated, unnecessary, or unduly burdensome.

(c) COMPLETE REVIEW.—The Council or the appropriate Federal

banking agency shall ensure that the notice and comment period

described in subsection (b)(2) is conducted with respect to all regulations described in subsection (a) not less frequently than once

every 10 years.

(d) REGULATORY RESPONSE.—The Council or the appropriate

Federal banking agency shall—

(1) publish in the Federal Register a summary of the comments received under this section, identifying significant issues

raised and providing comment on such issues; and

(2) eliminate unnecessary regulations to the extent that

such action is appropriate.

(e) REPORT TO CONGRESS.—Not later than 30 days after carrying out subsection (d)(1), the Council shall submit to the Congress

a report, which shall include—

(1) a summary of any significant issues raised by public

comments received by the Council and the appropriate Federal

banking agencies under this section and the relative merits

of such issues; and

(2) an analysis of whether the appropriate Federal banking

agency involved is able to address the regulatory burdens associated with such issues by regulation, or whether such burdens

must be addressed by legislative action.

SEC. 2223. REPEAL OF IDENTIFICATION OF NONBANK FINANCIAL

INSTITUTION CUSTOMERS.

Subchapter II of chapter 53 of title 31, United States Code,

is amended—

(1) by striking section 5327;

(2) in the chapter analysis, by striking the item relating

to section 5327; and

(3) in section 5321(a), by striking paragraph (7).

SEC. 2224. REPEAL OF CERTAIN REPORTING REQUIREMENTS.

(a) FDIA.—Section 477 of the Federal Deposit Insurance Corporation Improvement Act of 1991 (12 U.S.C. 251) is repealed.

(b) FIRREA.—Section 918 of the Financial Institutions Reform,

Recovery, and Enforcement Act of 1989 (12 U.S.C. 1833 note) is

repealed.

(c) ILS.—Section 913 of the International Lending Supervision

Act of 1983 (12 U.S.C. 3912) is repealed.

SEC. 2225. INCREASE IN HOME MORTGAGE DISCLOSURE EXEMPTION

THRESHOLD.

(a) IN GENERAL.—Section 309 of the Home Mortgage Disclosure

Act of 1975 (12 U.S.C. 2808) is amended—

12 USC 1833.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–416

(1) by striking ‘‘This title’’ and inserting ‘‘(a) IN GENERAL.—

This title’’;

(2) in the 3d sentence, by inserting ‘‘(as determined without

regard to the adjustment made by subsection (b))’’ before the

period; and

(2) by adding at the end the following new subsection:

‘‘(b) CPI ADJUSTMENTS.—

‘‘(1) IN GENERAL.—Subject to paragraph (2), the dollar

amount applicable with respect to institutions described in

section 303(2)(A) under the 2d sentence of subsection (a) shall

be adjusted annually after December 31, 1996, by the annual

percentage increase in the Consumer Price Index for Urban

Wage Earners and Clerical Workers published by the Bureau

of Labor Statistics.

‘‘(2) 1-TIME ADJUSTMENT FOR PRIOR INFLATION.—The first

adjustment made under paragraph (1) after the date of the

enactment of the Economic Growth and Regulatory Paperwork

Reduction Act of 1996 shall be the percentage by which—

‘‘(A) the Consumer Price Index described in such paragraph for the calendar year 1996, exceeds

‘‘(B) such Consumer Price Index for the calendar year

1975.

‘‘(3) ROUNDING.—The dollar amount applicable under paragraph (1) for any calendar year shall be the amount determined

in accordance with subparagraphs (A) and (B) of paragraph

(2) and rounded to the nearest multiple of $1,000,000.’’.

(b) OPPORTUNITY TO REDUCE COMPLIANCE BURDEN.—Section

304 of the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2803)

is amended by adding at the end the following new subsection:

‘‘(m) OPPORTUNITY TO REDUCE COMPLIANCE BURDEN.—

‘‘(1) IN GENERAL.—

‘‘(A) SATISFACTION OF PUBLIC AVAILABILITY REQUIREMENTS.—A depository institution shall be deemed to have

satisfied the public availability requirements of subsection

(a) if the institution compiles the information required

under that subsection at the home office of the institution

and provides notice at the branch locations specified in

subsection (a) that such information is available from the

home office of the institution upon written request.

‘‘(B) PROVISION OF INFORMATION UPON REQUEST.—Not

later than 15 days after the receipt of a written request

for any information required to be compiled under subsection (a), the home office of the depository institution

receiving the request shall provide the information pertinent to the location of the branch in question to the person

requesting the information.

‘‘(2) FORM OF INFORMATION.—In complying with paragraph

(1), a depository institution shall, in the sole discretion of

the institution, provide the person requesting the information

with—

‘‘(A) a paper copy of the information requested; or

‘‘(B) if acceptable to the person, the information

through a form of electronic medium, such as a computer

disk.’’.
110 STAT. 3009–417 PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 2226. ELIMINATION OF STOCK LOAN REPORTING REQUIREMENT.

Section 7(j) of the Federal Deposit Insurance Act (12 U.S.C.

1817(j)) is amended—

(1) in paragraph (9)(A)—

(A) by striking ‘‘financial institution and any affiliate

of any financial institution’’ and inserting ‘‘foreign bank,

or any affiliate thereof,’’; and

(B) by striking ‘‘by the financial institution and such

institution’s affiliates’’ and inserting ‘‘by the foreign bank

or any affiliate thereof’’;

(2) in paragraph (9)(B)—

(A) by striking ‘‘paragraph—’’ and inserting ‘‘paragraph, the following definitions shall apply:’’;

(B) by striking clause (i) and inserting the following:

‘‘(i) FOREIGN BANK.—The terms ‘foreign bank’ and

‘affiliate’ have the same meanings as in section 1 of

the International Banking Act of 1978.’’; and

(C) in clause (iii), by striking ‘‘financial institution’’

and inserting ‘‘foreign bank or any affiliate thereof’’;

(3) in paragraph (9)(C)—

(A) by striking ‘‘financial institution or any of its affiliates’’ and inserting ‘‘foreign bank or any affiliate thereof’’;

and

(B) by striking ‘‘financial institution or its affiliates’’

and inserting ‘‘foreign bank or any affiliate thereof’’;

(4) in paragraph (9)(D)—

(A) in clause (i)—

(i) by striking ‘‘the financial institution and all

affiliates of the institution’’ and inserting ‘‘the foreign

bank and all affiliates thereof’’; and

(ii) by striking ‘‘financial institution or any such

affiliate’’ and inserting ‘‘foreign bank or affiliate

thereof’’;

(B) in clause (ii), by striking ‘‘financial institution and

any affiliate of such institution’’ and inserting ‘‘foreign bank

and any affiliate thereof’’; and

(C) in clause (iii), by striking ‘‘financial institution’’

and inserting ‘‘foreign bank or any affiliate thereof’’; and

(5) in paragraph (9)(E)—

(A) in clause (i)—

(i) by striking ‘‘a financial institution and the affiliates of such institution’’ and inserting ‘‘a foreign bank

or any affiliate thereof’’; and

(ii) by striking ‘‘institution or affiliate’’ each place

such term appears and inserting ‘‘foreign bank or any

affiliate thereof’’; and

(B) in clause (ii), by striking ‘‘financial institution and

any affiliate of such institution’’ and inserting ‘‘foreign bank

and any affiliate thereof’’.

SEC. 2227. CREDIT AVAILABILITY ASSESSMENT.

(a) STUDY.—

(1) IN GENERAL.—Not later than 12 months after the date

of enactment of this Act, and once every 60 months thereafter,

the Board, in consultation with the Director of the Office of

Thrift Supervision, the Comptroller of the Currency, the Board

of Directors of the Corporation, the Administrator of the

12 USC 252.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–418

National Credit Union Administration, the Administrator of

the Small Business Administration, and the Secretary of Commerce, shall conduct a study and submit a report to the Congress detailing the extent of small business lending by all

creditors.

(2) CONTENTS OF STUDY.—The study required under paragraph (1) shall identify, to the extent practicable, those factors

which provide policymakers with insights into the small business credit market, including—

(A) the demand for small business credit, including

consideration of the impact of economic cycles on the levels

of such demand;

(B) the availability of credit to small businesses;

(C) the range of credit options available to small

businesses, such as those available from insured depository

institutions and other providers of credit;

(D) the types of credit products used to finance small

business operations, including the use of traditional loans,

leases, lines of credit, home equity loans, credit cards,

and other sources of financing;

(E) the credit needs of small businesses, including,

if appropriate, the extent to which such needs differ, based

upon product type, size of business, cash flow requirements,

characteristics of ownership or investors, or other aspects

of such business;

(F) the types of risks to creditors in providing credit

to small businesses; and

(G) such other factors as the Board deems appropriate.

(b) USE OF EXISTING DATA.—The studies required by this section shall not increase the regulatory or paperwork burden on

regulated financial institutions, other sources of small business

credit, or small businesses.

CHAPTER 3—REGULATORY MICROMANAGEMENT

RELIEF

SEC. 2241. NATIONAL BANK DIRECTORS.

Section 5146 of the Revised Statutes of the United States

(12 U.S.C. 72) is amended in the first sentence, by striking ‘‘except’’

and all that follows through the end of the sentence and inserting

the following: ‘‘except that the Comptroller may, in the discretion

of the Comptroller, waive the requirement of residency.’’.

SEC. 2242. PAPERWORK REDUCTION REVIEW.

Section 303(a) of the Riegle Community Development and Regulatory Improvement Act of 1994 (12 U.S.C. 4803(a)) is amended—

(1) by redesignating paragraphs (2) and (3) as paragraphs

(3) and (4), respectively; and

(2) by inserting after paragraph (1) the following new paragraph:

‘‘(2) review the extent to which existing regulations require

insured depository institutions and insured credit unions to

produce unnecessary internal written policies and eliminate

such requirements, where appropriate;’’.
110 STAT. 3009–419 PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 2243. STATE BANK REPRESENTATION ON BOARD OF DIRECTORS

OF THE FDIC.

Section 2(a)(1)(C) of the Federal Deposit Insurance Act (12

U.S.C. 1812(a)(1)(C)) is amended by inserting before the period

‘‘, 1 of whom shall have State bank supervisory experience’’.

SEC. 2244. CONSULTATION AMONG EXAMINERS.

(a) IN GENERAL.—Section 10 of the Federal Deposit Insurance

Act (12 U.S.C. 1820) is amended by adding at the end the following

new subsection:

‘‘(j) CONSULTATION AMONG EXAMINERS.—

‘‘(1) IN GENERAL.—Each appropriate Federal banking

agency shall take such action as may be necessary to ensure

that examiners employed by the agency—

‘‘(A) consult on examination activities with respect to

any depository institution; and

‘‘(B) achieve an agreement and resolve any inconsistencies in the recommendations to be given to such institution as a consequence of any examinations.

‘‘(2) EXAMINER-IN-CHARGE.—Each appropriate Federal

banking agency shall consider appointing an examiner-incharge with respect to a depository institution to ensure consultation on examination activities among all of the examiners

of that agency involved in examinations of the institution.’’.

(b) COORDINATED AND UNIFIED EXAMINATION FLEXIBILITY.—Section 10(d)(6)(B) of the Federal Deposit Insurance Act (12 U.S.C.

1820(d)(6)(B)) is amended by inserting ‘‘or State bank supervisors’’

after ‘‘one of the Federal agencies’’.

Subtitle C—Regulatory Impact on Cost of

Credit and Credit Availability

SEC. 2301. AUDIT COSTS.

(a) AUDITOR ATTESTATIONS.—Section 36 of the Federal Deposit

Insurance Act (12 U.S.C. 1831m) is amended by striking subsection

(e) and inserting the following:

‘‘(e) [Repealed]’’.

(b) INDEPENDENT AUDIT COMMITTEES.—Section 36(g)(1) of the

Federal Deposit Insurance Act (12 U.S.C. 1831m(g)(1)) is amended—

(1) in subparagraph (A), by inserting ‘‘, except as provided

in subparagraph (D)’’ after ‘‘management of the institution’’;

and

(2) by adding at the end the following new subparagraph:

‘‘(D) EXEMPTION AUTHORITY.—

‘‘(i) IN GENERAL.—An appropriate Federal banking

agency may, by order or regulation, permit the

independent audit committee of an insured depository

institution to be made up of less than all, but no

fewer than a majority of, outside directors, if the

agency determines that the institution has encountered

hardships in retaining and recruiting a sufficient number of competent outside directors to serve on the

internal audit committee of the institution.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–420

‘‘(ii) FACTORS TO BE CONSIDERED.—In determining

whether an insured depository institution has encountered hardships referred to in clause (i), the appropriate Federal banking agency shall consider factors

such as the size of the institution, and whether the

institution has made a good faith effort to elect or

name additional competent outside directors to the

board of directors of the institution who may serve

on the internal audit committee.’’.

(c) PUBLIC AVAILABILITY.—Section 36(a)(3) of the Federal

Deposit Insurance Act (12 U.S.C. 1831m(a)(3)) is amended by adding

at the end the following: ‘‘Notwithstanding the preceding sentence,

the Corporation and the appropriate Federal banking agencies may

designate certain information as privileged and confidential and

not available to the public.’’.

SEC. 2302. INCENTIVES FOR SELF-TESTING.

(a) EQUAL CREDIT OPPORTUNITY.— (1) IN GENERAL.—The Equal Credit Opportunity Act (15

U.S.C. 1691 et seq.) is amended by inserting after section

704 the following new section:

‘‘SEC. 704A. INCENTIVES FOR SELF-TESTING AND SELF-CORRECTION.

‘‘(a) PRIVILEGED INFORMATION.— ‘‘(1) CONDITIONS FOR PRIVILEGE.—A report or result of a

self-test (as that term is defined by regulations of the Board)

shall be considered to be privileged under paragraph (2) if

a creditor—

‘‘(A) conducts, or authorizes an independent third party

to conduct, a self-test of any aspect of a credit transaction

by a creditor, in order to determine the level or effectiveness

of compliance with this title by the creditor; and

‘‘(B) has identified any possible violation of this title

by the creditor and has taken, or is taking, appropriate

corrective action to address any such possible violation.

‘‘(2) PRIVILEGED SELF-TEST.—If a creditor meets the conditions specified in subparagraphs (A) and (B) of paragraph (1)

with respect to a self-test described in that paragraph, any

report or results of that self-test—

‘‘(A) shall be privileged; and

‘‘(B) may not be obtained or used by any applicant,

department, or agency in any—

‘‘(i) proceeding or civil action in which one or more

violations of this title are alleged; or

‘‘(ii) examination or investigation relating to

compliance with this title.

‘‘(b) RESULTS OF SELF-TESTING.— ‘‘(1) IN GENERAL.—No provision of this section may be

construed to prevent an applicant, department, or agency from

obtaining or using a report or results of any self-test in any

proceeding or civil action in which a violation of this title

is alleged, or in any examination or investigation of compliance

with this title if—

‘‘(A) the creditor or any person with lawful access to

the report or results—

‘‘(i) voluntarily releases or discloses all, or any

part of, the report or results to the applicant, department, or agency, or to the general public; or

15 USC 1691c–l.
110 STAT. 3009–421 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(ii) refers to or describes the report or results

as a defense to charges of violations of this title against

the creditor to whom the self-test relates; or

‘‘(B) the report or results are sought in conjunction

with an adjudication or admission of a violation of this

title for the sole purpose of determining an appropriate

penalty or remedy.

‘‘(2) DISCLOSURE FOR DETERMINATION OF PENALTY OR REM- EDY.—Any report or results of a self-test that are disclosed

for the purpose specified in paragraph (1)(B)—

‘‘(A) shall be used only for the particular proceeding

in which the adjudication or admission referred to in paragraph (1)(B) is made; and

‘‘(B) may not be used in any other action or proceeding.

‘‘(c) ADJUDICATION.—An applicant, department, or agency that

challenges a privilege asserted under this section may seek a determination of the existence and application of that privilege in—

‘‘(1) a court of competent jurisdiction; or

‘‘(2) an administrative law proceeding with appropriate

jurisdiction.’’.

(2) REGULATIONS.— (A) IN GENERAL.—Not later than 6 months after the

date of enactment of this Act, in consultation with the

Secretary of Housing and Urban Development and the

agencies referred to in section 704 of the Equal Credit

Opportunity Act, and after providing notice and an opportunity for public comment, the Board shall prescribe final

regulations to implement section 704A of the Equal Credit

Opportunity Act, as added by this section.

(B) SELF-TEST.— (i) DEFINITION.—The regulations prescribed under

subparagraph (A) shall include a definition of the term

‘‘self-test’’ for purposes of section 704A of the Equal

Credit Opportunity Act, as added by this section.

(ii) REQUIREMENT FOR SELF-TEST.—The regulations

prescribed under subparagraph (A) shall specify that

a self-test shall be sufficiently extensive to constitute

a determination of the level and effectiveness of compliance by a creditor with the Equal Credit Opportunity

Act.

(iii) SUBSTANTIAL SIMILARITY TO CERTAIN FAIR

HOUSING ACT REGULATIONS.—The regulations prescribed under subparagraph (A) shall be substantially

similar to the regulations prescribed by the Secretary

of Housing and Urban Development to carry out section

814A(d) of the Fair Housing Act, as added by this

section.

(3) CLERICAL AMENDMENT.—The table of sections for title

VII of the Consumer Credit Protection Act is amended by

inserting after the item relating to section 704 the following

new item:

‘‘704A. Incentives for self-testing and self-correction.’’.

(b) FAIR HOUSING.— (1) IN GENERAL.—The Fair Housing Act (42 U.S.C. 3601

et seq.) is amended by inserting after section 814 the following

new section:

15 USC 1691c–l

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–422

‘‘SEC. 814A. INCENTIVES FOR SELF-TESTING AND SELF-CORRECTION.

‘‘(a) PRIVILEGED INFORMATION.— ‘‘(1) CONDITIONS FOR PRIVILEGE.—A report or result of a

self-test (as that term is defined by regulation of the Secretary)

shall be considered to be privileged under paragraph (2) if

any person—

‘‘(A) conducts, or authorizes an independent third party

to conduct, a self-test of any aspect of a residential real

estate related lending transaction of that person, or any

part of that transaction, in order to determine the level

or effectiveness of compliance with this title by that person;

and

‘‘(B) has identified any possible violation of this title

by that person and has taken, or is taking, appropriate

corrective action to address any such possible violation.

‘‘(2) PRIVILEGED SELF-TEST.—If a person meets the conditions specified in subparagraphs (A) and (B) of paragraph (1)

with respect to a self-test described in that paragraph, any

report or results of that self-test—

‘‘(A) shall be privileged; and

‘‘(B) may not be obtained or used by any applicant,

department, or agency in any—

‘‘(i) proceeding or civil action in which one or more

violations of this title are alleged; or

‘‘(ii) examination or investigation relating to

compliance with this title.

‘‘(b) RESULTS OF SELF-TESTING.—

‘‘(1) IN GENERAL.—No provision of this section may be

construed to prevent an aggrieved person, complainant, department, or agency from obtaining or using a report or results

of any self-test in any proceeding or civil action in which

a violation of this title is alleged, or in any examination or

investigation of compliance with this title if—

‘‘(A) the person to whom the self-test relates or any

person with lawful access to the report or the results—

‘‘(i) voluntarily releases or discloses all, or any

part of, the report or results to the aggrieved person,

complainant, department, or agency, or to the general

public; or

‘‘(ii) refers to or describes the report or results

as a defense to charges of violations of this title against

the person to whom the self-test relates; or

‘‘(B) the report or results are sought in conjunction

with an adjudication or admission of a violation of this

title for the sole purpose of determining an appropriate

penalty or remedy.

‘‘(2) DISCLOSURE FOR DETERMINATION OF PENALTY OR REMEDY.—Any report or results of a self-test that are disclosed

for the purpose specified in paragraph (1)(B)—

‘‘(A) shall be used only for the particular proceeding

in which the adjudication or admission referred to in paragraph (1)(B) is made; and

‘‘(B) may not be used in any other action or proceeding.

‘‘(c) ADJUDICATION.—An aggrieved person, complainant, department, or agency that challenges a privilege asserted under this

section may seek a determination of the existence and application

of that privilege in—

42 USC 3614–1.
110 STAT. 3009–423 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(1) a court of competent jurisdiction; or

‘‘(2) an administrative law proceeding with appropriate

jurisdiction.’’.

(2) REGULATIONS.—

(A) IN GENERAL.—Not later than 6 months after the

date of enactment of this Act, in consultation with the

Board and after providing notice and an opportunity for

public comment, the Secretary of Housing and Urban

Development shall prescribe final regulations to implement

section 814A of the Fair Housing Act, as added by this

section.

(B) SELF-TEST.—

(i) DEFINITION.—The regulations prescribed by the

Secretary under subparagraph (A) shall include a definition of the term ‘‘self-test’’ for purposes of section

814A of the Fair Housing Act, as added by this section.

(ii) REQUIREMENT FOR SELF-TEST.—The regulations

prescribed by the Secretary under subparagraph (A)

shall specify that a self-test shall be sufficiently extensive to constitute a determination of the level and

effectiveness of the compliance by a person engaged

in residential real estate related lending activities with

the Fair Housing Act.

(iii) SUBSTANTIAL SIMILARITY TO CERTAIN EQUAL

CREDIT OPPORTUNITY ACT REGULATIONS.—The regulations prescribed under subparagraph (A) shall be

substantially similar to the regulations prescribed by

the Board to carry out section 704A of the Equal Credit

Opportunity Act, as added by this section.

(c) APPLICABILITY.—

(1) IN GENERAL.—Except as provided in paragraph (2), the

privilege provided for in section 704A of the Equal Credit

Opportunity Act or section 814A of the Fair Housing Act (as

those sections are added by this section) shall apply to a selftest (as that term is defined pursuant to the regulations prescribed under subsection (a)(2) or (b)(2) of this section, as appropriate) conducted before, on, or after the effective date of the

regulations prescribed under subsection (a)(2) or (b)(2), as

appropriate.

(2) EXCEPTION.—The privilege referred to in paragraph (1)

does not apply to such a self-test conducted before the effective

date of the regulations prescribed under subsection (a) or (b),

as appropriate, if—

(A) before that effective date, a complaint against the

creditor or person engaged in residential real estate related

lending activities (as the case may be) was—

(i) formally filed in any court of competent jurisdiction; or

(ii) the subject of an ongoing administrative law

proceeding;

(B) in the case of section 704A of the Equal Credit

Opportunity Act, the creditor has waived the privilege

pursuant to subsection (b)(1)(A)(i) of that section; or

(C) in the case of section 814A of the Fair Housing

Act, the person engaged in residential real estate related

lending activities has waived the privilege pursuant to

subsection (b)(1)(A)(i) of that section.

15 USC 1691c–l

note.

42 USC 3614–1

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–424

SEC. 2303. QUALIFIED THRIFT INVESTMENT AMENDMENTS.

(a) CREDIT CARDS.—Section 5(b) of the Home Owners’ Loan

Act (12 U.S.C. 1464(b)) is amended—

(1) by striking paragraph (4); and

(2) by redesignating paragraph (5) as paragraph (4).

(b) LOANS OR INVESTMENTS WITHOUT PERCENTAGE OF ASSETS

LIMITATION.—Section 5(c)(1) of the Home Owners’ Loan Act (12

U.S.C. 1464(c)(1)) is amended by adding at the end the following

new subparagraphs:

‘‘(T) CREDIT CARD LOANS.—Loans made through credit

cards or credit card accounts.

‘‘(U) EDUCATIONAL LOANS.—Loans made for the payment of educational expenses.’’.

(c) COMMERCIAL AND OTHER LOANS.—Section 5(c)(2)(A) of the

Home Owners’ Loan Act (12 U.S.C. 1464(c)(2)(A)) is amended to

read as follows:

‘‘(A) COMMERCIAL AND OTHER LOANS.—Secured or

unsecured loans for commercial, corporate, business, or

agricultural purposes. The aggregate amount of loans made

under this subparagraph may not exceed 20 percent of

the total assets of the Federal savings association, and

amounts in excess of 10 percent of such total assets may

be used under this subparagraph only for small business

loans, as that term is defined by the Director.’’.

(d) LOANS OR INVESTMENTS LIMITED TO 5 PERCENT OF ASSETS.—

Section 5(c)(3) of the Home Owners’ Loan Act (12 U.S.C. 1464(c)(3))

is amended—

(1) by striking subparagraph (A); and

(2) by redesignating subparagraphs (B), (C), and (D) as

subparagraphs (A), (B), and (C), respectively.

(e) QUALIFIED THRIFT LENDER TEST.—Section 10(m)(1) of the

Home Owners’ Loan Act (12 U.S.C. 1467a(m)(1)) is amended—

(1) by redesignating subparagraph (B) as clause (ii);

(2) in subparagraph (A), by striking ‘‘(A) the savings’’ and

inserting ‘‘(B)(i) the savings’’; and

(3) by inserting after ‘‘if—’’ the following new subparagraph:

‘‘(A) the savings association qualifies as a domestic

building and loan association, as such term is defined in

section 7701(a)(19) of the Internal Revenue Code of 1986;

or’’.

(f) BRANCHING.—Section 5(r) of the Home Owners’ Loan Act

(12 U.S.C. 1464(r)) is amended—

(1) in paragraph (1)—

(A) in the first sentence—

(i) by inserting before the period ‘‘, or qualifies

as a qualified thrift lender, as determined under section 10(m) of this Act’’; and

(ii) by striking ‘‘(c)’’ and inserting ‘‘(C)’’; and

(B) in the second sentence, by inserting before the

period ‘‘or as a qualified thrift lender, as determined under

section 10(m) of this Act, as applicable’’; and

(2) in paragraph (2), by striking subparagraph (C) and

inserting the following:

‘‘(C) the law of the State where the branch is located,

or is to be located, would permit establishment of the branch

if the association was a savings association or savings bank
110 STAT. 3009–425 PUBLIC LAW 104–208—SEPT. 30, 1996

chartered by the State in which its home office is located;

or’’.

(g) DEFINITION.—Section 10(m)(4) of the Home Owners’ Loan

Act (12 U.S.C. 1467a(m)(4)) is amended—

(1) by striking ‘‘subsection—’’ and inserting ‘‘subsection,

the following definitions shall apply:’’;

(2) in subparagraph (C)—

(A) in clause (ii), by adding at the end the following

new subclause:

‘‘(VII) Loans for educational purposes, loans

to small businesses, and loans made through credit

cards or credit card accounts.’’; and

(B) in clause (iii), by striking subclause (VI) and inserting the following:

‘‘(VI) Loans for personal, family, or household

purposes (other than loans for personal, family,

or household purposes described in clause

(ii)(VII)).’’; and

(3) by adding at the end the following new subparagraphs:

‘‘(D) CREDIT CARD.—The Director shall issue such regulations as may be necessary to define the term ‘credit

card’.

‘‘(E) SMALL BUSINESS.—The Director shall issue such

regulations as may be necessary to define the term ‘small

business’.’’.

SEC. 2304. LIMITED PURPOSE BANKS.

(a) GROWTH CAP RELIEF.—Section 4(f)(3)(B) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(f)(3)(B)) is amended—

(1) in clause (ii), by adding ‘‘or’’ at the end;

(2) in clause (iii), by striking ‘‘; or’’ at the end and inserting

a period; and

(3) by striking clause (iv).

(b) LIMITED PURPOSE BANK EXCEPTION.—Section 2(c)(2)(F) of

the Bank Holding Company Act of 1956 (12 U.S.C. 1841(c)(2)(F))

is amended by inserting ‘‘, including an institution that accepts

collateral for extensions of credit by holding deposits under

$100,000, and by other means’’ after ‘‘An institution’’.

SEC. 2305. AMENDMENT TO FAIR DEBT COLLECTION PRACTICES ACT.

(a) IN GENERAL.—Section 807(11) of the Fair Debt Collection

Practices Act (15 U.S.C. 1692e(11)) is amended to read as follows:

‘‘(11) The failure to disclose in the initial written communication with the consumer and, in addition, if the initial

communication with the consumer is oral, in that initial oral

communication, that the debt collector is attempting to collect

a debt and that any information obtained will be used for

that purpose, and the failure to disclose in subsequent communications that the communication is from a debt collector, except

that this paragraph shall not apply to a formal pleading made

in connection with a legal action.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall take effect 90 days after the date of enactment of this Act

and shall apply to all communications made after that date of

enactment.

15 USC 1692e

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–426

SEC. 2306. INCREASE IN CERTAIN CREDIT UNION LOAN CEILINGS.

Section 107(5)(A) of the Federal Credit Union Act (12 U.S.C.

1757(5)(A)) is amended—

(1) in clause (iv), by striking ‘‘$10,000’’ and inserting

‘‘$20,000’’; and

(2) in clause (v), by striking ‘‘$10,000’’ and inserting

‘‘$20,000’’.

SEC. 2307. BANK INVESTMENTS IN EDGE ACT AND AGREEMENT CORPORATIONS.

The 10th undesignated paragraph of section 25A of the Federal

Reserve Act (12 U.S.C. 618) is amended by striking the last sentence

and inserting the following: ‘‘Any national bank may invest in

the stock of any corporation organized under this section. The

aggregate amount of stock held by any national bank in all corporations engaged in business of the kind described in this section

or section 25 shall not exceed an amount equal to 10 percent

of the capital and surplus of such bank unless the Board determines

that the investment of an additional amount by the bank would

not be unsafe or unsound and, in any case, shall not exceed an

amount equal to 20 percent of the capital and surplus of such

bank.’’.

Subtitle D—Consumer Credit

CHAPTER 1—CREDIT REPORTING REFORM

SEC. 2401. SHORT TITLE.

This chapter may be cited as the ‘‘Consumer Credit Reporting

Reform Act of 1996’’.

SEC. 2402. DEFINITIONS.

(a) ADVERSE ACTION.—Section 603 of the Fair Credit Reporting

Act (15 U.S.C. 1681a) is amended by adding at the end the following

new subsection:

‘‘(k) ADVERSE ACTION.—

‘‘(1) ACTIONS INCLUDED.—The term ‘adverse action’—

‘‘(A) has the same meaning as in section 701(d)(6)

of the Equal Credit Opportunity Act; and

‘‘(B) means—

‘‘(i) a denial or cancellation of, an increase in any

charge for, or a reduction or other adverse or unfavorable change in the terms of coverage or amount of,

any insurance, existing or applied for, in connection

with the underwriting of insurance;

‘‘(ii) a denial of employment or any other decision

for employment purposes that adversely affects any

current or prospective employee;

‘‘(iii) a denial or cancellation of, an increase in

any charge for, or any other adverse or unfavorable

change in the terms of, any license or benefit described

in section 604(a)(3)(D); and

‘‘(iv) an action taken or determination that is—

‘‘(I) made in connection with an application

that was made by, or a transaction that was initiated by, any consumer, or in connection with a

Consumer Credit

Reporting

Reform Act of

1996.

15 USC 1601

note.
110 STAT. 3009–427 PUBLIC LAW 104–208—SEPT. 30, 1996

review of an account under section 604(a)(3)(F)(ii);

and

‘‘(II) adverse to the interests of the consumer.

‘‘(2) APPLICABLE FINDINGS, DECISIONS, COMMENTARY, AND

ORDERS.—For purposes of any determination of whether an

action is an adverse action under paragraph (1)(A), all appropriate final findings, decisions, commentary, and orders issued

under section 701(d)(6) of the Equal Credit Opportunity Act

by the Board of Governors of the Federal Reserve System

or any court shall apply.’’.

(b) FIRM OFFER OF CREDIT OR INSURANCE.—Section 603 of

the Fair Credit Reporting Act (15 U.S.C. 1681a) (as amended by

subsection (a) of this section) is amended by adding at the end

the following new subsection:

‘‘(l) FIRM OFFER OF CREDIT OR INSURANCE.—The term ‘firm

offer of credit or insurance’ means any offer of credit or insurance

to a consumer that will be honored if the consumer is determined,

based on information in a consumer report on the consumer, to

meet the specific criteria used to select the consumer for the offer,

except that the offer may be further conditioned on one or more

of the following:

‘‘(1) The consumer being determined, based on information

in the consumer’s application for the credit or insurance, to

meet specific criteria bearing on credit worthiness or insurability, as applicable, that are established—

‘‘(A) before selection of the consumer for the offer;

and

‘‘(B) for the purpose of determining whether to extend

credit or insurance pursuant to the offer.

‘‘(2) Verification—

‘‘(A) that the consumer continues to meet the specific

criteria used to select the consumer for the offer, by using

information in a consumer report on the consumer, information in the consumer’s application for the credit or insurance, or other information bearing on the credit worthiness

or insurability of the consumer; or

‘‘(B) of the information in the consumer’s application

for the credit or insurance, to determine that the consumer

meets the specific criteria bearing on credit worthiness

or insurability.

‘‘(3) The consumer furnishing any collateral that is a

requirement for the extension of the credit or insurance that

was—

‘‘(A) established before selection of the consumer for

the offer of credit or insurance; and

‘‘(B) disclosed to the consumer in the offer of credit

or insurance.’’.

(c) CREDIT OR INSURANCE TRANSACTION THAT IS NOT INITIATED

BY THE CONSUMER.—Section 603 of the Fair Credit Reporting Act

(15 U.S.C. 1681a) (as amended by subsection (b) of this section)

is amended by adding at the end the following new subsection:

‘‘(m) CREDIT OR INSURANCE TRANSACTION THAT IS NOT INITIATED BY THE CONSUMER.—The term ‘credit or insurance transaction

that is not initiated by the consumer’ does not include the use

of a consumer report by a person with which the consumer has

an account or insurance policy, for purposes of—

‘‘(1) reviewing the account or insurance policy; or
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–428

‘‘(2) collecting the account.’’.

(d) STATE.—Section 603 of the Fair Credit Reporting Act (15

U.S.C. 1681a) (as amended by subsection (c) of this section) is

amended by adding at the end the following new subsection:

‘‘(n) STATE.—The term ‘State’ means any State, the Commonwealth of Puerto Rico, the District of Columbia, and any territory

or possession of the United States.’’.

(e) DEFINITION OF CONSUMER REPORT.—Section 603(d) of the

Fair Credit Reporting Act (15 U.S.C. 1681a(d)) is amended—

(1) by striking ‘‘(d) The term’’ and inserting the following:

‘‘(d) CONSUMER REPORT.—

‘‘(1) IN GENERAL.—The term’’;

(2) by striking ‘‘for (1) credit’’ and inserting the following:

‘‘for—

‘‘(A) credit’’;

(3) by striking ‘‘purposes, or (2)’’ and all that follows

through ‘‘section 604.’’ and inserting the following: ‘‘purposes;

‘‘(B) employment purposes; or

‘‘(C) any other purpose authorized under section 604.’’;

and

(4) by striking the second sentence and inserting the following:

‘‘(2) EXCLUSIONS.—The term ‘consumer report’ does not

include—

‘‘(A) any—

‘‘(i) report containing information solely as to

transactions or experiences between the consumer and

the person making the report;

‘‘(ii) communication of that information among persons related by common ownership or affiliated by

corporate control; or

‘‘(iii) any communication of other information

among persons related by common ownership or affiliated by corporate control, if it is clearly and conspicuously disclosed to the consumer that the information

may be communicated among such persons and the

consumer is given the opportunity, before the time

that the information is initially communicated, to

direct that such information not be communicated

among such persons;

‘‘(B) any authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit

card or similar device;

‘‘(C) any report in which a person who has been

requested by a third party to make a specific extension

of credit directly or indirectly to a consumer conveys his

or her decision with respect to such request, if the third

party advises the consumer of the name and address of

the person to whom the request was made, and such person

makes the disclosures to the consumer required under section 615; or

‘‘(D) a communication described in subsection (o).’’.

(f) EXCLUSION OF CERTAIN COMMUNICATIONS BY EMPLOYMENT

AGENCIES FROM DEFINITION OF CONSUMER REPORT.—Section 603

of the Fair Credit Reporting Act (15 U.S.C. 1681a) is amended

by adding at the end the following new subsection:
110 STAT. 3009–429 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(o) EXCLUDED COMMUNICATIONS.—A communication is

described in this subsection if it is a communication—

‘‘(1) that, but for subsection (d)(2)(E), would be an investigative consumer report;

‘‘(2) that is made to a prospective employer for the purpose

of—

‘‘(A) procuring an employee for the employer; or

‘‘(B) procuring an opportunity for a natural person

to work for the employer;

‘‘(3) that is made by a person who regularly performs

such procurement;

‘‘(4) that is not used by any person for any purpose other

than a purpose described in subparagraph (A) or (B) of paragraph (2); or

‘‘(5) with respect to which—

‘‘(A) the consumer who is the subject of the communication—

‘‘(i) consents orally or in writing to the nature

and scope of the communication, before the collection

of any information for the purpose of making the

communication;

‘‘(ii) consents orally or in writing to the making

of the communication to a prospective employer, before

the making of the communication; and

‘‘(iii) in the case of consent under clause (i) or

(ii) given orally, is provided written confirmation of

that consent by the person making the communication,

not later than 3 business days after the receipt of

the consent by that person;

‘‘(B) the person who makes the communication does

not, for the purpose of making the communication, make

any inquiry that if made by a prospective employer of

the consumer who is the subject of the communication

would violate any applicable Federal or State equal employment opportunity law or regulation; and

‘‘(C) the person who makes the communication—

‘‘(i) discloses in writing to the consumer who is

the subject of the communication, not later than 5

business days after receiving any request from the

consumer for such disclosure, the nature and substance

of all information in the consumer’s file at the time

of the request, except that the sources of any information that is acquired solely for use in making the

communication and is actually used for no other purpose, need not be disclosed other than under appropriate discovery procedures in any court of competent

jurisdiction in which an action is brought; and

‘‘(ii) notifies the consumer who is the subject of

the communication, in writing, of the consumer’s right

to request the information described in clause (i).’’.

(g) CONSUMER REPORTING AGENCY THAT COMPILES AND MAINTAINS FILES ON A NATIONWIDE BASIS.—Section 603 of the Fair

Credit Reporting Act (15 U.S.C. 1681a) (as amended by subsection

(f) of this section) is amended by adding at the end the following

new subsection:

‘‘(p) CONSUMER REPORTING AGENCY THAT COMPILES AND MAINTAINS FILES ON CONSUMERS ON A NATIONWIDE BASIS.—The term
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–430

‘consumer reporting agency that compiles and maintains files on

consumers on a nationwide basis’ means a consumer reporting

agency that regularly engages in the practice of assembling or

evaluating, and maintaining, for the purpose of furnishing consumer

reports to third parties bearing on a consumer’s credit worthiness,

credit standing, or credit capacity, each of the following regarding

consumers residing nationwide:

‘‘(1) Public record information.

‘‘(2) Credit account information from persons who furnish

that information regularly and in the ordinary course of business.’’.

SEC. 2403. FURNISHING CONSUMER REPORTS; USE FOR EMPLOYMENT

PURPOSES.

(a) FURNISHING CONSUMER REPORTS FOR BUSINESS TRANSACTIONS.—Section 604 of the Fair Credit Reporting Act (15 U.S.C.

1681b) is amended—

(1) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘A consumer

reporting agency’’; and

(2) in subsection (a)(3) (as so designated by paragraph

(1) of this subsection), by striking subparagraph (E) and inserting the following:

‘‘(E) intends to use the information, as a potential

investor or servicer, or current insurer, in connection with

a valuation of, or an assessment of the credit or prepayment

risks associated with, an existing credit obligation; or

‘‘(F) otherwise has a legitimate business need for the

information—

‘‘(i) in connection with a business transaction that

is initiated by the consumer; or

‘‘(ii) to review an account to determine whether

the consumer continues to meet the terms of the

account.’’.

(b) FURNISHING AND USING CONSUMER REPORTS FOR EMPLOYMENT PURPOSES.—Section 604 of the Fair Credit Reporting Act

(15 U.S.C. 1681b) is amended by adding at the end the following

new subsection:

‘‘(b) CONDITIONS FOR FURNISHING AND USING CONSUMER

REPORTS FOR EMPLOYMENT PURPOSES.—

‘‘(1) CERTIFICATION FROM USER.—A consumer reporting

agency may furnish a consumer report for employment purposes

only if—

‘‘(A) the person who obtains such report from the

agency certifies to the agency that—

‘‘(i) the person has complied with paragraph (2)

with respect to the consumer report, and the person

will comply with paragraph (3) with respect to the

consumer report if paragraph (3) becomes applicable;

and

‘‘(ii) information from the consumer report will

not be used in violation of any applicable Federal or

State equal employment opportunity law or regulation;

and

‘‘(B) the consumer reporting agency provides with the

report a summary of the consumer’s rights under this

title, as prescribed by the Federal Trade Commission under

section 609(c)(3).
110 STAT. 3009–431 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(2) DISCLOSURE TO CONSUMER.—A person may not procure

a consumer report, or cause a consumer report to be procured,

for employment purposes with respect to any consumer,

unless—

‘‘(A) a clear and conspicuous disclosure has been made

in writing to the consumer at any time before the report

is procured or caused to be procured, in a document that

consists solely of the disclosure, that a consumer report

may be obtained for employment purposes; and

‘‘(B) the consumer has authorized in writing the

procurement of the report by that person.

‘‘(3) CONDITIONS ON USE FOR ADVERSE ACTIONS.—In using

a consumer report for employment purposes, before taking any

adverse action based in whole or in part on the report, the

person intending to take such adverse action shall provide

to the consumer to whom the report relates—

‘‘(A) a copy of the report; and

‘‘(B) a description in writing of the rights of the

consumer under this title, as prescribed by the Federal

Trade Commission under section 609(c)(3).’’.

SEC. 2404. USE OF CONSUMER REPORTS FOR PRESCREENING;

PROHIBITION ON UNAUTHORIZED OR UNCERTIFIED USE

OF INFORMATION.

(a) IN GENERAL.—Section 604 of the Fair Credit Reporting

Act (15 U.S.C. 1681b) (as amended by section 2403 of this chapter)

is amended—

(1) in subsection (a), by striking ‘‘A consumer reporting

agency’’ and inserting ‘‘Subject to subsection (c), any consumer

reporting agency’’; and

(2) by adding at the end the following new subsections:

‘‘(c) FURNISHING REPORTS IN CONNECTION WITH CREDIT OR

INSURANCE TRANSACTIONS THAT ARE NOT INITIATED BY THE

CONSUMER.—

‘‘(1) IN GENERAL.—A consumer reporting agency may furnish a consumer report relating to any consumer pursuant

to subparagraph (A) or (C) of subsection (a)(3) in connection

with any credit or insurance transaction that is not initiated

by the consumer only if—

‘‘(A) the consumer authorizes the agency to provide

such report to such person; or

‘‘(B)(i) the transaction consists of a firm offer of credit

or insurance;

‘‘(ii) the consumer reporting agency has complied with

subsection (e); and

‘‘(iii) there is not in effect an election by the consumer,

made in accordance with subsection (e), to have the

consumer’s name and address excluded from lists of names

provided by the agency pursuant to this paragraph.

‘‘(2) LIMITS ON INFORMATION RECEIVED UNDER PARAGRAPH

(1)(B).—A person may receive pursuant to paragraph (1)(B)

only—

‘‘(A) the name and address of a consumer;

‘‘(B) an identifier that is not unique to the consumer

and that is used by the person solely for the purpose

of verifying the identity of the consumer; and
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–432

‘‘(C) other information pertaining to a consumer that

does not identify the relationship or experience of the

consumer with respect to a particular creditor or other

entity.

‘‘(3) INFORMATION REGARDING INQUIRIES.—Except as provided in section 609(a)(5), a consumer reporting agency shall

not furnish to any person a record of inquiries in connection

with a credit or insurance transaction that is not initiated

by a consumer.

‘‘(d) RESERVED

‘‘(e) ELECTION OF CONSUMER TO BE EXCLUDED FROM LISTS.—

‘‘(1) IN GENERAL.—A consumer may elect to have the

consumer’s name and address excluded from any list provided

by a consumer reporting agency under subsection (c)(1)(B) in

connection with a credit or insurance transaction that is not

initiated by the consumer, by notifying the agency in accordance

with paragraph (2) that the consumer does not consent to

any use of a consumer report relating to the consumer in

connection with any credit or insurance transaction that is

not initiated by the consumer.

‘‘(2) MANNER OF NOTIFICATION.—A consumer shall notify

a consumer reporting agency under paragraph (1)—

‘‘(A) through the notification system maintained by

the agency under paragraph (5); or

‘‘(B) by submitting to the agency a signed notice of

election form issued by the agency for purposes of this

subparagraph.

‘‘(3) RESPONSE OF AGENCY AFTER NOTIFICATION THROUGH

SYSTEM.—Upon receipt of notification of the election of a

consumer under paragraph (1) through the notification system

maintained by the agency under paragraph (5), a consumer

reporting agency shall—

‘‘(A) inform the consumer that the election is effective

only for the 2-year period following the election if the

consumer does not submit to the agency a signed notice

of election form issued by the agency for purposes of paragraph (2)(B); and

‘‘(B) provide to the consumer a notice of election form,

if requested by the consumer, not later than 5 business

days after receipt of the notification of the election through

the system established under paragraph (5), in the case

of a request made at the time the consumer provides

notification through the system.

‘‘(4) EFFECTIVENESS OF ELECTION.—An election of a

consumer under paragraph (1)—

‘‘(A) shall be effective with respect to a consumer

reporting agency beginning 5 business days after the date

on which the consumer notifies the agency in accordance

with paragraph (2);

‘‘(B) shall be effective with respect to a consumer

reporting agency—

‘‘(i) subject to subparagraph (C), during the 2-year

period beginning 5 business days after the date on

which the consumer notifies the agency of the election,

in the case of an election for which a consumer notifies

the agency only in accordance with paragraph (2)(A);

or
110 STAT. 3009–433 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(ii) until the consumer notifies the agency under

subparagraph (C), in the case of an election for which

a consumer notifies the agency in accordance with

paragraph (2)(B);

‘‘(C) shall not be effective after the date on which

the consumer notifies the agency, through the notification

system established by the agency under paragraph (5),

that the election is no longer effective; and

‘‘(D) shall be effective with respect to each affiliate

of the agency.

‘‘(5) NOTIFICATION SYSTEM.—

‘‘(A) IN GENERAL.—Each consumer reporting agency

that, under subsection (c)(1)(B), furnishes a consumer

report in connection with a credit or insurance transaction

that is not initiated by a consumer, shall—

‘‘(i) establish and maintain a notification system,

including a toll-free telephone number, which permits

any consumer whose consumer report is maintained

by the agency to notify the agency, with appropriate

identification, of the consumer’s election to have the

consumer’s name and address excluded from any such

list of names and addresses provided by the agency

for such a transaction; and

‘‘(ii) publish by not later than 365 days after the

date of enactment of the Consumer Credit Reporting

Reform Act of 1996, and not less than annually thereafter, in a publication of general circulation in the

area served by the agency—

‘‘(I) a notification that information in consumer

files maintained by the agency may be used in

connection with such transactions; and

‘‘(II) the address and toll-free telephone number for consumers to use to notify the agency of

the consumer’s election under clause (i).

‘‘(B) ESTABLISHMENT AND MAINTENANCE AS COMPLIANCE.—Establishment and maintenance of a notification

system (including a toll-free telephone number) and

publication by a consumer reporting agency on the agency’s

own behalf and on behalf of any of its affiliates in accordance with this paragraph is deemed to be compliance with

this paragraph by each of those affiliates.

‘‘(6) NOTIFICATION SYSTEM BY AGENCIES THAT OPERATE

NATIONWIDE.—Each consumer reporting agency that compiles

and maintains files on consumers on a nationwide basis shall

establish and maintain a notification system for purposes of

paragraph (5) jointly with other such consumer reporting agencies.’’.

(b) USE OF INFORMATION OBTAINED FROM REPORTS.—Section

604 of the Fair Credit Reporting Act (15 U.S.C. 1681b) (as amended

by subsection (a) of this section) is amended by adding at the

end the following new subsection:

‘‘(f) CERTAIN USE OR OBTAINING OF INFORMATION PROHIBITED.—

A person shall not use or obtain a consumer report for any purpose

unless—

‘‘(1) the consumer report is obtained for a purpose for

which the consumer report is authorized to be furnished under

this section; and
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–434

‘‘(2) the purpose is certified in accordance with section

607 by a prospective user of the report through a general

or specific certification.’’.

(c) FTC GUIDELINES REGARDING PRESCREENING FOR INSURANCE

TRANSACTIONS.—The Federal Trade Commission may issue such

guidelines as it deems necessary with respect to the use of consumer

reports in connection with insurance transactions that are not initiated by the consumer pursuant to section 604(c) of the Fair Credit

Reporting Act, as added by subsection (a) of this section.

SEC. 2405. CONSUMER CONSENT REQUIRED TO FURNISH CONSUMER

REPORT CONTAINING MEDICAL INFORMATION.

Section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b)

is amended by adding at the end the following new subsection:

‘‘(g) FURNISHING REPORTS CONTAINING MEDICAL INFORMA- TION.—A consumer reporting agency shall not furnish for employment purposes, or in connection with a credit or insurance transaction or a direct marketing transaction, a consumer report that

contains medical information about a consumer, unless the

consumer consents to the furnishing of the report.’’.

SEC. 2406. OBSOLETE INFORMATION AND INFORMATION CONTAINED

IN CONSUMER REPORTS.

(a) AMENDMENT TO LARGE-DOLLAR EXCEPTION.—Section 605

of the Fair Credit Reporting Act (15 U.S.C. 1681c) is amended—

(1) by inserting ‘‘INFORMATION EXCLUDED FROM CONSUMER

REPORTS.—’’ after ‘‘(a)’’;

(2) in subsection (b)—

(A) in paragraph (1), by striking ‘‘$50,000’’ and insert- ing ‘‘$150,000’’; (B) in paragraph (2), by striking ‘‘$50,000’’ and insert- ing ‘‘$150,000’’; and (C) in paragraph (3), by striking ‘‘$20,000’’ and insert- ing ‘‘$75,000’’.

(b) CLARIFICATION OF REPORTING PERIOD.—Section 605 of the

Fair Credit Reporting Act (15 U.S.C. 1681c) (as amended by subsection (a) of this section) is amended by adding at the end the

following new subsection:

‘‘(c) RUNNING OF REPORTING PERIOD.— ‘‘(1) IN GENERAL.—The 7-year period referred to in paragraphs (4) and (6) of subsection (a) shall begin, with respect

to any delinquent account that is placed for collection

(internally or by referral to a third party, whichever is earlier),

charged to profit and loss, or subjected to any similar action,

upon the expiration of the 180-day period beginning on the

date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and

loss, or similar action.

‘‘(2) EFFECTIVE DATE.—Paragraph (1) shall apply only to

items of information added to the file of a consumer on or

after the date that is 455 days after the date of enactment

of the Consumer Credit Reporting Reform Act of 1996.’’.

(c) ADDITIONAL INFORMATION ON BANKRUPTCY FILINGS

REQUIRED.—Section 605 of the Fair Credit Reporting Act (15 U.S.C.

1681c) is amended by adding at the end the following new subsection:

‘‘(d) INFORMATION REQUIRED TO BE DISCLOSED.—Any consumer

reporting agency that furnishes a consumer report that contains

15 USC 1681b

note.
110 STAT. 3009–435 PUBLIC LAW 104–208—SEPT. 30, 1996

information regarding any case involving the consumer that arises

under title 11, United States Code, shall include in the report

an identification of the chapter of such title 11 under which such

case arises if provided by the source of the information. If any

case arising or filed under title 11, United States Code, is withdrawn

by the consumer before a final judgment, the consumer reporting

agency shall include in the report that such case or filing was

withdrawn upon receipt of documentation certifying such withdrawal.’’.

(d) INDICATION OF CLOSURE OF ACCOUNT; INDICATION OF DISPUTE BY CONSUMER.—Section 605 of the Fair Credit Reporting

Act (15 U.S.C. 1681c) is amended by adding at the end the following

new subsections:

‘‘(e) INDICATION OF CLOSURE OF ACCOUNT BY CONSUMER.—

If a consumer reporting agency is notified pursuant to section

623(a)(4) that a credit account of a consumer was voluntarily closed

by the consumer, the agency shall indicate that fact in any consumer

report that includes information related to the account.

‘‘(f) INDICATION OF DISPUTE BY CONSUMER.—If a consumer

reporting agency is notified pursuant to section 623(a)(3) that

information regarding a consumer who was furnished to the agency

is disputed by the consumer, the agency shall indicate that fact

in each consumer report that includes the disputed information.’’.

(e) CONFORMING AMENDMENTS.—

(1) Section 605 of the Fair Credit Reporting Act (15 U.S.C.

1681c) is amended in the section heading, by striking ‘‘OBSOLETE INFORMATION’’ and inserting ‘‘REQUIREMENTS

RELATING TO INFORMATION CONTAINED IN

CONSUMER REPORTS’’.

(2) The table of sections for the Fair Credit Reporting

Act (15 U.S.C. 1681a et seq.) is amended by striking the item

relating to section 605 and inserting the following:

‘‘605. Requirements relating to information contained in consumer reports.’’.

SEC. 2407. COMPLIANCE PROCEDURES.

(a) DISCLOSURE OF CONSUMER REPORTS BY USERS.—Section

607 of the Fair Credit Reporting Act (15 U.S.C. 1681e) is amended

by adding at the end the following new subsection:

‘‘(c) DISCLOSURE OF CONSUMER REPORTS BY USERS ALLOWED.—

A consumer reporting agency may not prohibit a user of a consumer

report furnished by the agency on a consumer from disclosing

the contents of the report to the consumer, if adverse action against

the consumer has been taken by the user based in whole or in

part on the report.’’.

(b) NOTICE TO USERS AND PROVIDERS OF INFORMATION TO

ENSURE COMPLIANCE.—Section 607 of the Fair Credit Reporting

Act (15 U.S.C. 1681e) is amended by adding after subsection (c)

(as added by subsection (a) of this section) the following new subsection:

‘‘(d) NOTICE TO USERS AND FURNISHERS OF INFORMATION.— ‘‘(1) NOTICE REQUIREMENT.—A consumer reporting agency

shall provide to any person—

‘‘(A) who regularly and in the ordinary course of business furnishes information to the agency with respect to

any consumer; or
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–436

‘‘(B) to whom a consumer report is provided by the

agency;

a notice of such person’s responsibilities under this title.

‘‘(2) CONTENT OF NOTICE.—The Federal Trade Commission

shall prescribe the content of notices under paragraph (1),

and a consumer reporting agency shall be in compliance with

this subsection if it provides a notice under paragraph (1)

that is substantially similar to the Federal Trade Commission

prescription under this paragraph.’’.

(c) RECORD OF IDENTITY OF USERS AND PURPOSES CERTIFIED

BY USERS OF REPORTS.—Section 607 of the Fair Credit Reporting

Act (15 U.S.C. 1681e) is amended by adding after subsection (d)

(as added by subsection (b) of this section) the following new subsection:

‘‘(e) PROCUREMENT OF CONSUMER REPORT FOR RESALE.—

‘‘(1) DISCLOSURE.—A person may not procure a consumer

report for purposes of reselling the report (or any information

in the report) unless the person discloses to the consumer

reporting agency that originally furnishes the report—

‘‘(A) the identity of the end-user of the report (or

information); and

‘‘(B) each permissible purpose under section 604 for

which the report is furnished to the end-user of the report

(or information).

‘‘(2) RESPONSIBILITIES OF PROCURERS FOR RESALE.—A person who procures a consumer report for purposes of reselling

the report (or any information in the report) shall—

‘‘(A) establish and comply with reasonable procedures

designed to ensure that the report (or information) is resold

by the person only for a purpose for which the report

may be furnished under section 604, including by requiring

that each person to which the report (or information) is

resold and that resells or provides the report (or information) to any other person—

‘‘(i) identifies each end user of the resold report

(or information);

‘‘(ii) certifies each purpose for which the report

(or information) will be used; and

‘‘(iii) certifies that the report (or information) will

be used for no other purpose; and

‘‘(B) before reselling the report, make reasonable efforts

to verify the identifications and certifications made under

subparagraph (A).’’.

SEC. 2408. CONSUMER DISCLOSURES.

(a) ALL INFORMATION IN CONSUMER’S FILE REQUIRED TO BE

DISCLOSED.—Section 609(a)(1) of the Fair Credit Reporting Act

(15 U.S.C. 1681g(a)(1)) is amended to read as follows:

‘‘(1) All information in the consumer’s file at the time

of the request, except that nothing in this paragraph shall

be construed to require a consumer reporting agency to disclose

to a consumer any information concerning credit scores or any

other risk scores or predictors relating to the consumer.’’.

(b) MORE INFORMATION CONCERNING RECIPIENTS OF REPORTS

REQUIRED.—Section 609(a)(3) of the Fair Credit Reporting Act (15

U.S.C. 1681g(a)) is amended to read as follows:
110 STAT. 3009–437 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(3)(A) Identification of each person (including each enduser identified under section 607(e)(1)) that procured a

consumer report—

‘‘(i) for employment purposes, during the 2-year period

preceding the date on which the request is made; or

‘‘(ii) for any other purpose, during the 1-year period

preceding the date on which the request is made.

‘‘(B) An identification of a person under subparagraph (A)

shall include—

‘‘(i) the name of the person or, if applicable, the trade

name (written in full) under which such person conducts

business; and

‘‘(ii) upon request of the consumer, the address and

telephone number of the person.’’.

(c) INFORMATION REGARDING INQUIRIES.—Section 609(a) of the

Fair Credit Reporting Act (15 U.S.C. 1681g(a)) is amended by

adding at the end the following new paragraph:

‘‘(5) A record of all inquiries received by the agency during

the 1-year period preceding the request that identified the

consumer in connection with a credit or insurance transaction

that was not initiated by the consumer.’’.

(d) SUMMARY OF RIGHTS REQUIRED TO BE INCLUDED WITH

DISCLOSURE.—

(1) IN GENERAL.—Section 609 of the Fair Credit Reporting

Act (15 U.S.C. 1681g) is amended by adding at the end the

following new subsection:

‘‘(c) SUMMARY OF RIGHTS REQUIRED TO BE INCLUDED WITH

DISCLOSURE.—

‘‘(1) SUMMARY OF RIGHTS.—A consumer reporting agency

shall provide to a consumer, with each written disclosure by

the agency to the consumer under this section—

‘‘(A) a written summary of all of the rights that the

consumer has under this title; and

‘‘(B) in the case of a consumer reporting agency that

compiles and maintains files on consumers on a nationwide

basis, a toll-free telephone number established by the

agency, at which personnel are accessible to consumers

during normal business hours.

‘‘(2) SPECIFIC ITEMS REQUIRED TO BE INCLUDED.—The summary of rights required under paragraph (1) shall include—

‘‘(A) a brief description of this title and all rights of

consumers under this title;

‘‘(B) an explanation of how the consumer may exercise

the rights of the consumer under this title;

‘‘(C) a list of all Federal agencies responsible for enforcing any provision of this title and the address and any

appropriate phone number of each such agency, in a form

that will assist the consumer in selecting the appropriate

agency;

‘‘(D) a statement that the consumer may have additional rights under State law and that the consumer may

wish to contact a State or local consumer protection agency

or a State attorney general to learn of those rights; and

‘‘(E) a statement that a consumer reporting agency

is not required to remove accurate derogatory information

from a consumer’s file, unless the information is outdated

under section 605 or cannot be verified.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–438

‘‘(3) FORM OF SUMMARY OF RIGHTS.—For purposes of this

subsection and any disclosure by a consumer reporting agency

required under this title with respect to consumers’ rights,

the Federal Trade Commission (after consultation with each

Federal agency referred to in section 621(b)) shall prescribe

the form and content of any such disclosure of the rights

of consumers required under this title. A consumer reporting

agency shall be in compliance with this subsection if it provides

disclosures under paragraph (1) that are substantially similar

to the Federal Trade Commission prescription under this paragraph.

‘‘(4) EFFECTIVENESS.—No disclosures shall be required

under this subsection until the date on which the Federal

Trade Commission prescribes the form and content of such

disclosures under paragraph (3).’’.

(2) TECHNICAL AMENDMENT.—Section 606(a)(1)(B) of the

Fair Credit Reporting Act (15 U.S.C. 1681d(a)(1)(B)) is amended

by inserting ‘‘and the written summary of the rights of the

consumer prepared pursuant to section 609(c)’’ before the semicolon.

(e) FORM OF DISCLOSURES.—

(1) IN GENERAL.—Subsections (a) and (b) of section 610

of the Fair Credit Reporting Act (15 U.S.C. 1681h) are amended

to read as follows:

‘‘(a) IN GENERAL.—

‘‘(1) PROPER IDENTIFICATION.—A consumer reporting agency

shall require, as a condition of making the disclosures required

under section 609, that the consumer furnish proper identification.

‘‘(2) DISCLOSURE IN WRITING.—Except as provided in subsection (b), the disclosures required to be made under section

609 shall be provided under that section in writing.

‘‘(b) OTHER FORMS OF DISCLOSURE.—

‘‘(1) IN GENERAL.—If authorized by a consumer, a consumer

reporting agency may make the disclosures required under

609—

‘‘(A) other than in writing; and

‘‘(B) in such form as may be—

‘‘(i) specified by the consumer in accordance with

paragraph (2); and

‘‘(ii) available from the agency.

‘‘(2) FORM.—A consumer may specify pursuant to paragraph

(1) that disclosures under section 609 shall be made—

‘‘(A) in person, upon the appearance of the consumer

at the place of business of the consumer reporting agency

where disclosures are regularly provided, during normal

business hours, and on reasonable notice;

‘‘(B) by telephone, if the consumer has made a written

request for disclosure by telephone;

‘‘(C) by electronic means, if available from the agency;

or

‘‘(D) by any other reasonable means that is available

from the agency.’’.

(2) SIMPLIFIED DISCLOSURE.—Not later than 90 days after

the date of enactment of this Act, each consumer reporting

agency shall develop a form on which such consumer reporting

agency shall make the disclosures required under section 609(a)

15 USC 1681g

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110 STAT. 3009–439 PUBLIC LAW 104–208—SEPT. 30, 1996

of the Fair Credit Reporting Act, for the purpose of maximizing

the comprehensibility and standardization of such disclosures.

(3) GOALS.—The Federal Trade Commission shall take

appropriate action to assure that the goals of comprehensibility

and standardization are achieved in accordance with paragraph

(2).

(4) DEFAMATION.—Section 610(e) of the Fair Credit Reporting Act (15 U.S.C. 1681h(e)) is amended by inserting ‘‘or based

on information disclosed by a user of a consumer report to

or for a consumer against whom the user has taken adverse

action, based in whole or in part on the report’’ before ‘‘except’’.

(5) CONFORMING AMENDMENTS.—The Fair Credit Reporting

Act (15 U.S.C. 1681 et seq.) is amended—

(A) in section 609(a), in the matter preceding paragraph (1), by striking ‘‘and proper identification of any

consumer’’ and inserting ‘‘, and subject to section 610(a)(1)’’;

(B) in section 610, in the section heading, by inserting

‘‘AND FORM’’ after ‘‘CONDITIONS’’; and

(C) in the table of sections at the beginning of that

Act, in the item relating to section 610, by inserting ‘‘and

form’’ after ‘‘conditions’’.

SEC. 2409. PROCEDURES IN CASE OF THE DISPUTED ACCURACY OF

ANY INFORMATION IN A CONSUMER’S FILE.

(a) IN GENERAL.—Section 611(a) of the Fair Credit Reporting

Act (15 U.S.C. 1681i(a)) is amended to read as follows:

‘‘(a) REINVESTIGATIONS OF DISPUTED INFORMATION.—

‘‘(1) REINVESTIGATION REQUIRED.—

‘‘(A) IN GENERAL.—If the completeness or accuracy of

any item of information contained in a consumer’s file

at a consumer reporting agency is disputed by the consumer

and the consumer notifies the agency directly of such dispute, the agency shall reinvestigate free of charge and

record the current status of the disputed information, or

delete the item from the file in accordance with paragraph

(5), before the end of the 30-day period beginning on the

date on which the agency receives the notice of the dispute

from the consumer.

‘‘(B) EXTENSION OF PERIOD TO REINVESTIGATE.—Except

as provided in subparagraph (C), the 30-day period

described in subparagraph (A) may be extended for not

more than 15 additional days if the consumer reporting

agency receives information from the consumer during that

30-day period that is relevant to the reinvestigation.

‘‘(C) LIMITATIONS ON EXTENSION OF PERIOD TO REINVESTIGATE.—Subparagraph (B) shall not apply to any reinvestigation in which, during the 30-day period described in

subparagraph (A), the information that is the subject of

the reinvestigation is found to be inaccurate or incomplete

or the consumer reporting agency determines that the

information cannot be verified.

‘‘(2) PROMPT NOTICE OF DISPUTE TO FURNISHER OF INFORMATION.—

‘‘(A) IN GENERAL.—Before the expiration of the 5-business-day period beginning on the date on which a consumer

reporting agency receives notice of a dispute from any

consumer in accordance with paragraph (1), the agency

15 USC 1681h.

15 USC 1681g.

15 USC 1681g

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–440

shall provide notification of the dispute to any person who

provided any item of information in dispute, at the address

and in the manner established with the person. The notice

shall include all relevant information regarding the dispute

that the agency has received from the consumer.

‘‘(B) PROVISION OF OTHER INFORMATION FROM

CONSUMER.—The consumer reporting agency shall promptly

provide to the person who provided the information in

dispute all relevant information regarding the dispute that

is received by the agency from the consumer after the

period referred to in subparagraph (A) and before the end

of the period referred to in paragraph (1)(A).

‘‘(3) DETERMINATION THAT DISPUTE IS FRIVOLOUS OR IRRELEVANT.—

‘‘(A) IN GENERAL.—Notwithstanding paragraph (1), a

consumer reporting agency may terminate a reinvestigation

of information disputed by a consumer under that paragraph if the agency reasonably determines that the dispute

by the consumer is frivolous or irrelevant, including by

reason of a failure by a consumer to provide sufficient

information to investigate the disputed information.

‘‘(B) NOTICE OF DETERMINATION.—Upon making any

determination in accordance with subparagraph (A) that

a dispute is frivolous or irrelevant, a consumer reporting

agency shall notify the consumer of such determination

not later than 5 business days after making such determination, by mail or, if authorized by the consumer for

that purpose, by any other means available to the agency.

‘‘(C) CONTENTS OF NOTICE.—A notice under subparagraph (B) shall include—

‘‘(i) the reasons for the determination under

subparagraph (A); and

‘‘(ii) identification of any information required to

investigate the disputed information, which may consist of a standardized form describing the general

nature of such information.

‘‘(4) CONSIDERATION OF CONSUMER INFORMATION.—In

conducting any reinvestigation under paragraph (1) with

respect to disputed information in the file of any consumer,

the consumer reporting agency shall review and consider all

relevant information submitted by the consumer in the period

described in paragraph (1)(A) with respect to such disputed

information.

‘‘(5) TREATMENT OF INACCURATE OR UNVERIFIABLE INFORMATION.—

‘‘(A) IN GENERAL.—If, after any reinvestigation under

paragraph (1) of any information disputed by a consumer,

an item of the information is found to be inaccurate or

incomplete or cannot be verified, the consumer reporting

agency shall promptly delete that item of information from

the consumer’s file or modify that item of information,

as appropriate, based on the results of the reinvestigation.

‘‘(B) REQUIREMENTS RELATING TO REINSERTION OF PREVIOUSLY DELETED MATERIAL.—

‘‘(i) CERTIFICATION OF ACCURACY OF INFORMATION.—If any information is deleted from a consumer’s

file pursuant to subparagraph (A), the information may
110 STAT. 3009–441 PUBLIC LAW 104–208—SEPT. 30, 1996

not be reinserted in the file by the consumer reporting

agency unless the person who furnishes the information certifies that the information is complete and

accurate.

‘‘(ii) NOTICE TO CONSUMER.—If any information

that has been deleted from a consumer’s file pursuant

to subparagraph (A) is reinserted in the file, the

consumer reporting agency shall notify the consumer

of the reinsertion in writing not later than 5 business

days after the reinsertion or, if authorized by the

consumer for that purpose, by any other means available to the agency.

‘‘(iii) ADDITIONAL INFORMATION.—As part of, or in

addition to, the notice under clause (ii), a consumer

reporting agency shall provide to a consumer in writing

not later than 5 business days after the date of the

reinsertion—

‘‘(I) a statement that the disputed information

has been reinserted;

‘‘(II) the business name and address of any

furnisher of information contacted and the telephone number of such furnisher, if reasonably

available, or of any furnisher of information that

contacted the consumer reporting agency, in

connection with the reinsertion of such information; and

‘‘(III) a notice that the consumer has the right

to add a statement to the consumer’s file disputing

the accuracy or completeness of the disputed

information.

‘‘(C) PROCEDURES TO PREVENT REAPPEARANCE.—A

consumer reporting agency shall maintain reasonable

procedures designed to prevent the reappearance in a

consumer’s file, and in consumer reports on the consumer,

of information that is deleted pursuant to this paragraph

(other than information that is reinserted in accordance

with subparagraph (B)(i)).

‘‘(D) AUTOMATED REINVESTIGATION SYSTEM.—Any

consumer reporting agency that compiles and maintains

files on consumers on a nationwide basis shall implement

an automated system through which furnishers of information to that consumer reporting agency may report the

results of a reinvestigation that finds incomplete or inaccurate information in a consumer’s file to other such

consumer reporting agencies.

‘‘(6) NOTICE OF RESULTS OF REINVESTIGATION.—

‘‘(A) IN GENERAL.—A consumer reporting agency shall

provide written notice to a consumer of the results of

a reinvestigation under this subsection not later than 5

business days after the completion of the reinvestigation,

by mail or, if authorized by the consumer for that purpose,

by other means available to the agency.

‘‘(B) CONTENTS.—As part of, or in addition to, the notice

under subparagraph (A), a consumer reporting agency shall

provide to a consumer in writing before the expiration

of the 5-day period referred to in subparagraph (A)—
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–442

‘‘(i) a statement that the reinvestigation is completed;

‘‘(ii) a consumer report that is based upon the

consumer’s file as that file is revised as a result of

the reinvestigation;

‘‘(iii) a notice that, if requested by the consumer,

a description of the procedure used to determine the

accuracy and completeness of the information shall

be provided to the consumer by the agency, including

the business name and address of any furnisher of

information contacted in connection with such information and the telephone number of such furnisher, if

reasonably available;

‘‘(iv) a notice that the consumer has the right

to add a statement to the consumer’s file disputing

the accuracy or completeness of the information; and

‘‘(v) a notice that the consumer has the right to

request under subsection (d) that the consumer reporting agency furnish notifications under that subsection.

‘‘(7) DESCRIPTION OF REINVESTIGATION PROCEDURE.—A

consumer reporting agency shall provide to a consumer a

description referred to in paragraph (6)(B)(iv) by not later than

15 days after receiving a request from the consumer for that

description.

‘‘(8) EXPEDITED DISPUTE RESOLUTION.—If a dispute regarding an item of information in a consumer’s file at a consumer

reporting agency is resolved in accordance with paragraph

(5)(A) by the deletion of the disputed information by not later

than 3 business days after the date on which the agency

receives notice of the dispute from the consumer in accordance

with paragraph (1)(A), then the agency shall not be required

to comply with paragraphs (2), (6), and (7) with respect to

that dispute if the agency—

‘‘(A) provides prompt notice of the deletion to the

consumer by telephone;

‘‘(B) includes in that notice, or in a written notice

that accompanies a confirmation and consumer report provided in accordance with subparagraph (C), a statement

of the consumer’s right to request under subsection (d)

that the agency furnish notifications under that subsection;

and

‘‘(C) provides written confirmation of the deletion and

a copy of a consumer report on the consumer that is based

on the consumer’s file after the deletion, not later than

5 business days after making the deletion.’’.

(b) CONFORMING AMENDMENT.—Section 611(d) of the Fair

Credit Reporting Act (15 U.S.C. 1681i(d)) is amended by striking

‘‘The consumer reporting agency shall clearly’’ and all that follows

through the end of the subsection.

SEC. 2410. CHARGES FOR CERTAIN DISCLOSURES.

Section 612 of the Fair Credit Reporting Act (15 U.S.C. 1681j)

is amended to read as follows:

‘‘SEC. 612. CHARGES FOR CERTAIN DISCLOSURES.

‘‘(a) REASONABLE CHARGES ALLOWED FOR CERTAIN DISCLOSURES.—
110 STAT. 3009–443 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(1) IN GENERAL.—Except as provided in subsections (b),

(c), and (d), a consumer reporting agency may impose a reasonable charge on a consumer—

‘‘(A) for making a disclosure to the consumer pursuant

to section 609, which charge—

‘‘(i) shall not exceed $8; and

‘‘(ii) shall be indicated to the consumer before making the disclosure; and

‘‘(B) for furnishing, pursuant to section 611(d), following a reinvestigation under section 611(a), a statement,

codification, or summary to a person designated by the

consumer under that section after the 30-day period beginning on the date of notification of the consumer under

paragraph (6) or (8) of section 611(a) with respect to the

reinvestigation, which charge—

‘‘(i) shall not exceed the charge that the agency

would impose on each designated recipient for a

consumer report; and

‘‘(ii) shall be indicated to the consumer before furnishing such information.

‘‘(2) MODIFICATION OF AMOUNT.—The Federal Trade

Commission shall increase the amount referred to in paragraph

(1)(A)(i) on January 1 of each year, based proportionally on

changes in the Consumer Price Index, with fractional changes

rounded to the nearest fifty cents.

‘‘(b) FREE DISCLOSURE AFTER ADVERSE NOTICE TO CONSUMER.—

Each consumer reporting agency that maintains a file on a

consumer shall make all disclosures pursuant to section 609 without

charge to the consumer if, not later than 60 days after receipt

by such consumer of a notification pursuant to section 615, or

of a notification from a debt collection agency affiliated with that

consumer reporting agency stating that the consumer’s credit rating

may be or has been adversely affected, the consumer makes a

request under section 609.

‘‘(c) FREE DISCLOSURE UNDER CERTAIN OTHER CIRCUMSTANCES.—Upon the request of the consumer, a consumer

reporting agency shall make all disclosures pursuant to section

609 once during any 12-month period without charge to that

consumer if the consumer certifies in writing that the consumer—

‘‘(1) is unemployed and intends to apply for employment

in the 60-day period beginning on the date on which the certification is made;

‘‘(2) is a recipient of public welfare assistance; or

‘‘(3) has reason to believe that the file on the consumer

at the agency contains inaccurate information due to fraud.

‘‘(d) OTHER CHARGES PROHIBITED.—A consumer reporting

agency shall not impose any charge on a consumer for providing

any notification required by this title or making any disclosure

required by this title, except as authorized by subsection (a).’’.

SEC. 2411. DUTIES OF USERS OF CONSUMER REPORTS.

(a) DUTIES OF USERS TAKING ADVERSE ACTIONS.—Section 615(a)

of the Fair Credit Reporting Act (15 U.S.C. 1681m(a)) is amended

to read as follows:

‘‘(a) DUTIES OF USERS TAKING ADVERSE ACTIONS ON THE BASIS

OF INFORMATION CONTAINED IN CONSUMER REPORTS.—If any person

takes any adverse action with respect to any consumer that is
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–444

based in whole or in part on any information contained in a

consumer report, the person shall—

‘‘(1) provide oral, written, or electronic notice of the adverse

action to the consumer;

‘‘(2) provide to the consumer orally, in writing, or electronically—

‘‘(A) the name, address, and telephone number of the

consumer reporting agency (including a toll-free telephone

number established by the agency if the agency compiles

and maintains files on consumers on a nationwide basis)

that furnished the report to the person; and

‘‘(B) a statement that the consumer reporting agency

did not make the decision to take the adverse action and

is unable to provide the consumer the specific reasons

why the adverse action was taken; and

‘‘(3) provide to the consumer an oral, written, or electronic

notice of the consumer’s right—

‘‘(A) to obtain, under section 612, a free copy of a

consumer report on the consumer from the consumer

reporting agency referred to in paragraph (2), which notice

shall include an indication of the 60-day period under that

section for obtaining such a copy; and

‘‘(B) to dispute, under section 611, with a consumer

reporting agency the accuracy or completeness of any

information in a consumer report furnished by the agency.’’.

(b) DUTIES OF USERS MAKING CERTAIN CREDIT SOLICITATIONS.—

Section 615 of the Fair Credit Reporting Act (15 U.S.C. 1681m)

is amended by adding at the end the following new subsection:

‘‘(d) DUTIES OF USERS MAKING WRITTEN CREDIT OR INSURANCE

SOLICITATIONS ON THE BASIS OF INFORMATION CONTAINED IN

CONSUMER FILES.—

‘‘(1) IN GENERAL.—Any person who uses a consumer report

on any consumer in connection with any credit or insurance

transaction that is not initiated by the consumer, that is provided to that person under section 604(c)(1)(B), shall provide

with each written solicitation made to the consumer regarding

the transaction a clear and conspicuous statement that—

‘‘(A) information contained in the consumer’s consumer

report was used in connection with the transaction;

‘‘(B) the consumer received the offer of credit or insurance because the consumer satisfied the criteria for credit

worthiness or insurability under which the consumer was

selected for the offer;

‘‘(C) if applicable, the credit or insurance may not

be extended if, after the consumer responds to the offer,

the consumer does not meet the criteria used to select

the consumer for the offer or any applicable criteria bearing

on credit worthiness or insurability or does not furnish

any required collateral;

‘‘(D) the consumer has a right to prohibit information

contained in the consumer’s file with any consumer reporting agency from being used in connection with any credit

or insurance transaction that is not initiated by the

consumer; and

‘‘(E) the consumer may exercise the right referred to

in subparagraph (D) by notifying a notification system

established under section 604(e).
110 STAT. 3009–445 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(2) DISCLOSURE OF ADDRESS AND TELEPHONE NUMBER.—

A statement under paragraph (1) shall include the address

and toll-free telephone number of the appropriate notification

system established under section 604(e).

‘‘(3) MAINTAINING CRITERIA ON FILE.—A person who makes

an offer of credit or insurance to a consumer under a credit

or insurance transaction described in paragraph (1) shall maintain on file the criteria used to select the consumer to receive

the offer, all criteria bearing on credit worthiness or insurability, as applicable, that are the basis for determining whether

or not to extend credit or insurance pursuant to the offer,

and any requirement for the furnishing of collateral as a condition of the extension of credit or insurance, until the expiration

of the 3-year period beginning on the date on which the offer

is made to the consumer.

‘‘(4) AUTHORITY OF FEDERAL AGENCIES REGARDING UNFAIR

OR DECEPTIVE ACTS OR PRACTICES NOT AFFECTED.—This section

is not intended to affect the authority of any Federal or State

agency to enforce a prohibition against unfair or deceptive

acts or practices, including the making of false or misleading

statements in connection with a credit or insurance transaction

that is not initiated by the consumer.’’.

(c) DUTIES OF USERS MAKING OTHER SOLICITATIONS.—Section

615 of the Fair Credit Reporting Act (15 U.S.C. 1681m) is amended

by adding at the end the following new subsection:

‘‘(e)

(d) CONFORMING AMENDMENT.—Section 615(c) of the Fair Credit

Reporting Act (15 U.S.C. 1681m(c)) is amended by striking ‘‘subsections (a) and (b)’’ and inserting ‘‘this section’’.

(e) DUTIES OF PERSON TAKING CERTAIN ACTIONS BASED ON

INFORMATION PROVIDED BY AFFILIATE.—Section 615(b) of the Fair

Credit Reporting Act (15 U.S.C. 1681m(b)) is amended—

(1) by striking ‘‘(b) Whenever credit’’ and inserting the

following:

‘‘(b) ADVERSE ACTION BASED ON INFORMATION OBTAINED FROM

THIRD PARTIES OTHER THAN CONSUMER REPORTING AGENCIES.—

‘‘(1) IN GENERAL.—Whenever credit’’;

(2) by adding at the end the following new paragraph:

‘‘(2) DUTIES OF PERSON TAKING CERTAIN ACTIONS BASED

ON INFORMATION PROVIDED BY AFFILIATE.—

‘‘(A) DUTIES, GENERALLY.—If a person takes an action

described in subparagraph (B) with respect to a consumer,

based in whole or in part on information described in

subparagraph (C), the person shall—

‘‘(i) notify the consumer of the action, including

a statement that the consumer may obtain the information in accordance with clause (ii); and

‘‘(ii) upon a written request from the consumer

received within 60 days after transmittal of the notice

required by clause (i), disclose to the consumer the

nature of the information upon which the action is

based by not later than 30 days after receipt of the

request.

‘‘(B) ACTION DESCRIBED.—An action referred to in

subparagraph (A) is an adverse action described in section
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–446

603(k)(1)(A), taken in connection with a transaction initiated by the consumer, or any adverse action described

in clause (i) or (ii) of section 603(k)(1)(B).

‘‘(C) INFORMATION DESCRIBED.—Information referred to

in subparagraph (A)—

‘‘(i) except as provided in clause (ii), is information

that—

‘‘(I) is furnished to the person taking the action

by a person related by common ownership or affiliated by common corporate control to the person

taking the action; and

‘‘(II) bears on the credit worthiness, credit

standing, credit capacity, character, general reputation, personal characteristics, or mode of living

of the consumer; and

‘‘(ii) does not include—

‘‘(I) information solely as to transactions or

experiences between the consumer and the person

furnishing the information; or

‘‘(II) information in a consumer report.’’.

SEC. 2412. CIVIL LIABILITY.

(a) CIVIL LIABILITY FOR WILLFUL NONCOMPLIANCE.—Section 616

of the Fair Credit Reporting Act (15 U.S.C. 1681n) is amended

by striking ‘‘Any consumer reporting agency or user of information

which’’ and inserting ‘‘(a) IN GENERAL.—Any person who’’.

(b) MINIMUM CIVIL LIABILITY FOR WILLFUL NONCOMPLIANCE.—

Section 616(a)(1) of the Fair Credit Reporting Act (15 U.S.C.

1681n(1)), as so designated by subsection (a) of this section, is

amended to read as follows:

‘‘(1)(A) any actual damages sustained by the consumer

as a result of the failure or damages of not less than $100

and not more than $1,000; or

‘‘(B) in the case of liability of a natural person for obtaining

a consumer report under false pretenses or knowingly without

a permissible purpose, actual damages sustained by the

consumer as a result of the failure or $1,000, whichever is

greater;’’.

(c) CIVIL LIABILITY FOR KNOWING NONCOMPLIANCE.—Section

616 of the Fair Credit Reporting Act (15 U.S.C. 1681n) is amended

by adding at the end the following new subsection:

‘‘(b) CIVIL LIABILITY FOR KNOWING NONCOMPLIANCE.—Any person who obtains a consumer report from a consumer reporting

agency under false pretenses or knowingly without a permissible

purpose shall be liable to the consumer reporting agency for actual

damages sustained by the consumer reporting agency or $1,000,

whichever is greater.’’.

(d) CIVIL LIABILITY FOR NEGLIGENT NONCOMPLIANCE.—Section

617 of the Fair Credit Reporting Act (15 U.S.C. 1681o) is amended

by striking ‘‘Any consumer reporting agency or user of information

which’’ and inserting ‘‘(a) IN GENERAL.—Any person who’’.

(e) ATTORNEY’S FEES.—

(1) WILLFUL NONCOMPLIANCE.—Section 616 of the Fair

Credit Reporting Act (15 U.S.C. 1681n) is amended by adding

at the end the following new subsection:

‘‘(c) ATTORNEY’S FEES.—Upon a finding by the court that an

unsuccessful pleading, motion, or other paper filed in connection
110 STAT. 3009–447 PUBLIC LAW 104–208—SEPT. 30, 1996

with an action under this section was filed in bad faith or for

purposes of harassment, the court shall award to the prevailing

party attorney’s fees reasonable in relation to the work expended

in responding to the pleading, motion, or other paper.’’.

(2) NEGLIGENT NONCOMPLIANCE.—Section 617 of the Fair

Credit Reporting Act (15 U.S.C. 1681o) is amended by adding

at the end the following new subsection:

‘‘(b) ATTORNEY’S FEES.—On a finding by the court that an

unsuccessful pleading, motion, or other paper filed in connection

with an action under this section was filed in bad faith or for

purposes of harassment, the court shall award to the prevailing

party attorney’s fees reasonable in relation to the work expended

in responding to the pleading, motion, or other paper.’’.

SEC. 2413. RESPONSIBILITIES OF PERSONS WHO FURNISH INFORMATION TO CONSUMER REPORTING AGENCIES.

(a) IN GENERAL.—The Fair Credit Reporting Act (15 U.S.C.

1681 et seq.) is amended—

(1) by redesignating section 623 as section 624; and

(2) by inserting after section 622 the following:

‘‘SEC. 623. RESPONSIBILITIES OF FURNISHERS OF INFORMATION TO

CONSUMER REPORTING AGENCIES.

‘‘(a) DUTY OF FURNISHERS OF INFORMATION TO PROVIDE

ACCURATE INFORMATION.—

‘‘(1) PROHIBITION.—

‘‘(A) REPORTING INFORMATION WITH ACTUAL KNOWLEDGE OF ERRORS.—A person shall not furnish any information relating to a consumer to any consumer reporting

agency if the person knows or consciously avoids knowing

that the information is inaccurate.

‘‘(B) REPORTING INFORMATION AFTER NOTICE AND CONFIRMATION OF ERRORS.—A person shall not furnish information relating to a consumer to any consumer reporting

agency if—

‘‘(i) the person has been notified by the consumer,

at the address specified by the person for such notices,

that specific information is inaccurate; and

‘‘(ii) the information is, in fact, inaccurate.

‘‘(C) NO ADDRESS REQUIREMENT.—A person who clearly

and conspicuously specifies to the consumer an address

for notices referred to in subparagraph (B) shall not be

subject to subparagraph (A); however, nothing in subparagraph (B) shall require a person to specify such an address.

‘‘(2) DUTY TO CORRECT AND UPDATE INFORMATION.—A person who—

‘‘(A) regularly and in the ordinary course of business

furnishes information to one or more consumer reporting

agencies about the person’s transactions or experiences

with any consumer; and

‘‘(B) has furnished to a consumer reporting agency

information that the person determines is not complete

or accurate,

shall promptly notify the consumer reporting agency of that

determination and provide to the agency any corrections to

that information, or any additional information, that is necessary to make the information provided by the person to

15 USC 1681s–2.

15 USC 1681t.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–448

the agency complete and accurate, and shall not thereafter

furnish to the agency any of the information that remains

not complete or accurate.

‘‘(3) DUTY TO PROVIDE NOTICE OF DISPUTE.—If the completeness or accuracy of any information furnished by any person

to any consumer reporting agency is disputed to such person

by a consumer, the person may not furnish the information

to any consumer reporting agency without notice that such

information is disputed by the consumer.

‘‘(4) DUTY TO PROVIDE NOTICE OF CLOSED ACCOUNTS.—A

person who regularly and in the ordinary course of business

furnishes information to a consumer reporting agency regarding

a consumer who has a credit account with that person shall

notify the agency of the voluntary closure of the account by

the consumer, in information regularly furnished for the period

in which the account is closed.

‘‘(5) DUTY TO PROVIDE NOTICE OF DELINQUENCY OF

ACCOUNTS.—A person who furnishes information to a consumer

reporting agency regarding a delinquent account being placed

for collection, charged to profit or loss, or subjected to any

similar action shall, not later than 90 days after furnishing

the information, notify the agency of the month and year of

the commencement of the delinquency that immediately preceded the action.

‘‘(b) DUTIES OF FURNISHERS OF INFORMATION UPON NOTICE

OF DISPUTE.—

‘‘(1) IN GENERAL.—After receiving notice pursuant to section

611(a)(2) of a dispute with regard to the completeness or

accuracy of any information provided by a person to a consumer

reporting agency, the person shall—

‘‘(A) conduct an investigation with respect to the disputed information;

‘‘(B) review all relevant information provided by the

consumer reporting agency pursuant to section 611(a)(2);

‘‘(C) report the results of the investigation to the

consumer reporting agency; and

‘‘(D) if the investigation finds that the information

is incomplete or inaccurate, report those results to all other

consumer reporting agencies to which the person furnished

the information and that compile and maintain files on

consumers on a nationwide basis.

‘‘(2) DEADLINE.—A person shall complete all investigations,

reviews, and reports required under paragraph (1) regarding

information provided by the person to a consumer reporting

agency, before the expiration of the period under section

611(a)(1) within which the consumer reporting agency is

required to complete actions required by that section regarding

that information.

‘‘(c) LIMITATION ON LIABILITY.—Sections 616 and 617 do not

apply to any failure to comply with subsection (a), except as provided in section 621(c)(1)(B).

‘‘(d) LIMITATION ON ENFORCEMENT.—Subsection (a) shall be

enforced exclusively under section 621 by the Federal agencies

and officials and the State officials identified in that section.’’.

(b) CONFORMING AMENDMENT.—The table of sections at the

beginning of the Fair Credit Reporting Act (15 U.S.C. 1681a et
110 STAT. 3009–449 PUBLIC LAW 104–208—SEPT. 30, 1996

seq.) is amended by striking the item relating to section 623 and

inserting the following:

‘‘623. Responsibilities of furnishers of information to consumer reporting

agencies.

‘‘624. Relation to State laws.’’.

SEC. 2414. INVESTIGATIVE CONSUMER REPORTS.

Section 606 of the Fair Credit Reporting Act (15 U.S.C. 1681d)

is amended—

(1) in subsection (a)(1), by striking ‘‘or’’ at the end and

inserting ‘‘and’’;

(2) by striking subsection (a)(2) and inserting the following:

‘‘(2) the person certifies or has certified to the consumer

reporting agency that—

‘‘(A) the person has made the disclosures to the

consumer required by paragraph (1); and

‘‘(B) the person will comply with subsection (b).’’;

(3) in subsection (b), by striking ‘‘shall’’ the second place

such term appears; and

(4) by adding at the end the following new subsection:

‘‘(d) PROHIBITIONS.—

‘‘(1) CERTIFICATION.—A consumer reporting agency shall

not prepare or furnish an investigative consumer report unless

the agency has received a certification under subsection (a)(2)

from the person who requested the report.

‘‘(2) INQUIRIES.—A consumer reporting agency shall not

make an inquiry for the purpose of preparing an investigative

consumer report on a consumer for employment purposes if

the making of the inquiry by an employer or prospective

employer of the consumer would violate any applicable Federal

or State equal employment opportunity law or regulation.

‘‘(3) CERTAIN PUBLIC RECORD INFORMATION.—Except as

otherwise provided in section 613, a consumer reporting agency

shall not furnish an investigative consumer report that includes

information that is a matter of public record and that relates

to an arrest, indictment, conviction, civil judicial action, tax

lien, or outstanding judgment, unless the agency has verified

the accuracy of the information during the 30-day period ending

on the date on which the report is furnished.

‘‘(4) CERTAIN ADVERSE INFORMATION.—A consumer reporting agency shall not prepare or furnish an investigative

consumer report on a consumer that contains information that

is adverse to the interest of the consumer and that is obtained

through a personal interview with a neighbor, friend, or associate of the consumer or with another person with whom the

consumer is acquainted or who has knowledge of such item

of information, unless—

‘‘(A) the agency has followed reasonable procedures

to obtain confirmation of the information, from an additional source that has independent and direct knowledge

of the information; or

‘‘(B) the person interviewed is the best possible source

of the information.’’.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–450

SEC. 2415. INCREASED CRIMINAL PENALTIES FOR OBTAINING

INFORMATION UNDER FALSE PRETENSES.

(a) OBTAINING INFORMATION UNDER FALSE PRETENSES.—Section 619 of the Fair Credit Reporting Act (15 U.S.C. 1681q) is

amended by striking ‘‘fined not more than $5,000 or imprisoned

not more than one year, or both’’ and inserting ‘‘fined under title

18, United States Code, imprisoned for not more than 2 years,

or both’’.

(b) UNAUTHORIZED DISCLOSURES BY OFFICERS OR EMPLOYEES.—

Section 620 of the Fair Credit Reporting Act (15 U.S.C. 1681r)

is amended by striking ‘‘fined not more than $5,000 or imprisoned

not more than one year, or both’’ and inserting ‘‘fined under title

18, United States Code, imprisoned for not more than 2 years,

or both’’.

SEC. 2416. ADMINISTRATIVE ENFORCEMENT.

(a) AVAILABLE ENFORCEMENT POWERS.—Section 621(a) of the

Fair Credit Reporting Act (15 U.S.C. 1681s(a)) is amended—

(1) by inserting ‘‘(1)’’ after ‘‘(a)’’;

(2) by adding at the end the following new paragraph:

‘‘(2)(A) In the event of a knowing violation, which constitutes

a pattern or practice of violations of this title, the Commission

may commence a civil action to recover a civil penalty in a district

court of the United States against any person that violates this

title. In such action, such person shall be liable for a civil penalty

of not more than $2,500 per violation.

‘‘(B) In determining the amount of a civil penalty under

subparagraph (A), the court shall take into account the degree

of culpability, any history of prior such conduct, ability to pay,

effect on ability to continue to do business, and such other matters

as justice may require.

‘‘(3) Notwithstanding paragraph (2), a court may not impose

any civil penalty on a person for a violation of section 623(a)(1)

unless the person has been enjoined from committing the violation,

or ordered not to commit the violation, in an action or proceeding

brought by or on behalf of the Federal Trade Commission, and

has violated the injunction or order, and the court may not impose

any civil penalty for any violation occurring before the date of

the violation of the injunction or order.

‘‘(4) Neither the Commission nor any other agency referred

to in subsection (b) may prescribe trade regulation rules or other

regulations with respect to this title.’’.

(b) AGENCIES RESPONSIBLE FOR ENFORCEMENT.—Section 621

of the Fair Credit Reporting Act (15 U.S.C. 1681s) is amended—

(1) in subsection (a), by inserting ‘‘ENFORCEMENT BY FEDERAL TRADE COMMISSION.—’’ before ‘‘Compliance with the

requirements’’;

(2) in subsection (b), by striking the matter preceding paragraph (1) and inserting the following:

‘‘(b) ENFORCEMENT BY OTHER AGENCIES.—Compliance with the

requirements imposed under this title with respect to consumer

reporting agencies, persons who use consumer reports from such

agencies, persons who furnish information to such agencies, and

users of information that are subject to subsection (d) or (e) of

section 615 shall be enforced under—’’; and
110 STAT. 3009–451 PUBLIC LAW 104–208—SEPT. 30, 1996

(3) in subsection (c), by adding at the end the following:

‘‘Notwithstanding the preceding, no agency referred to in subsection (b) may conduct an examination of a bank, savings

association, or credit union regarding compliance with the provisions of this title, except in response to a complaint (or if

the agency otherwise has knowledge) that the bank, savings

association, or credit union has violated a provision of this

title, in which case, the agency may conduct an examination

as necessary to investigate the complaint. If an agency determines during an investigation in response to a complaint that

a violation of this title has occurred, the agency may, during

its next 2 regularly scheduled examinations of the bank, savings

association, or credit union, examine for compliance with this

title.’’.

SEC. 2417. STATE ENFORCEMENT OF FAIR CREDIT REPORTING ACT.

Section 621 of the Fair Credit Reporting Act (15 U.S.C. 1681s)

is amended—

(1) by redesignating subsection (c) as subsection (d); and

(2) by inserting after subsection (b) the following new subsection:

‘‘(c) STATE ACTION FOR VIOLATIONS.—

‘‘(1) AUTHORITY OF STATES.—In addition to such other remedies as are provided under State law, if the chief law enforcement officer of a State, or an official or agency designated

by a State, has reason to believe that any person has violated

or is violating this title, the State—

‘‘(A) may bring an action to enjoin such violation in

any appropriate United States district court or in any

other court of competent jurisdiction;

‘‘(B) subject to paragraph (5), may bring an action

on behalf of the residents of the State to recover—

‘‘(i) damages for which the person is liable to such

residents under sections 616 and 617 as a result of

the violation;

‘‘(ii) in the case of a violation of section 623(a),

damages for which the person would, but for section

623(c), be liable to such residents as a result of the

violation; or

‘‘(iii) damages of not more than $1,000 for each

willful or negligent violation; and

‘‘(C) in the case of any successful action under subparagraph (A) or (B), shall be awarded the costs of the action

and reasonable attorney fees as determined by the court.

‘‘(2) RIGHTS OF FEDERAL REGULATORS.—The State shall

serve prior written notice of any action under paragraph (1)

upon the Federal Trade Commission or the appropriate Federal

regulator determined under subsection (b) and provide the

Commission or appropriate Federal regulator with a copy of

its complaint, except in any case in which such prior notice

is not feasible, in which case the State shall serve such notice

immediately upon instituting such action. The Federal Trade

Commission or appropriate Federal regulator shall have the

right—

‘‘(A) to intervene in the action;

‘‘(B) upon so intervening, to be heard on all matters

arising therein;
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–452

‘‘(C) to remove the action to the appropriate United

States district court; and

‘‘(D) to file petitions for appeal.

‘‘(3) INVESTIGATORY POWERS.—For purposes of bringing any

action under this subsection, nothing in this subsection shall

prevent the chief law enforcement officer, or an official or

agency designated by a State, from exercising the powers conferred on the chief law enforcement officer or such official

by the laws of such State to conduct investigations or to administer oaths or affirmations or to compel the attendance of witnesses or the production of documentary and other evidence.

‘‘(4) LIMITATION ON STATE ACTION WHILE FEDERAL ACTION

PENDING.—If the Federal Trade Commission or the appropriate

Federal regulator has instituted a civil action or an administrative action under section 8 of the Federal Deposit Insurance

Act for a violation of this title, no State may, during the

pendency of such action, bring an action under this section

against any defendant named in the complaint of the Commission or the appropriate Federal regulator for any violation

of this title that is alleged in that complaint.

‘‘(5) LIMITATIONS ON STATE ACTIONS FOR VIOLATION OF SECTION 623(a)(1).—

‘‘(A) VIOLATION OF INJUNCTION REQUIRED.—A State

may not bring an action against a person under paragraph

(1)(B) for a violation of section 623(a)(1), unless—

‘‘(i) the person has been enjoined from committing

the violation, in an action brought by the State under

paragraph (1)(A); and

‘‘(ii) the person has violated the injunction.

‘‘(B) LIMITATION ON DAMAGES RECOVERABLE.—In an

action against a person under paragraph (1)(B) for a violation of section 623(a)(1), a State may not recover any damages incurred before the date of the violation of an injunction on which the action is based.’’.

SEC. 2418. FEDERAL RESERVE BOARD AUTHORITY.

Section 621 of the Fair Credit Reporting Act (15 U.S.C. 1681s)

is amended by adding at the end the following new subsection:

‘‘(e) INTERPRETIVE AUTHORITY.—The Board of Governors of the

Federal Reserve System may issue interpretations of any provision

of this title as such provision may apply to any persons identified

under paragraph (1), (2), and (3) of subsection (b), or to the holding

companies and affiliates of such persons, in consultation with Federal agencies identified in paragraphs (1), (2), and (3) of subsection

(b).’’.

SEC. 2419. PREEMPTION OF STATE LAW.

Section 624 of the Fair Credit Reporting Act (as redesignated

by section 2413(a) of this chapter) is amended—

(1) by striking ‘‘This title’’ and inserting ‘‘(a) IN GENERAL.—

Except as provided in subsections (b) and (c), this title’’; and

(2) by adding at the end the following new subsection:

‘‘(b) GENERAL EXCEPTIONS.—No requirement or prohibition may

be imposed under the laws of any State—

‘‘(1) with respect to any subject matter regulated under—

‘‘(A) subsection (c) or (e) of section 604, relating to

the prescreening of consumer reports;
110 STAT. 3009–453 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(B) section 611, relating to the time by which a

consumer reporting agency must take any action, including

the provision of notification to a consumer or other person,

in any procedure related to the disputed accuracy of

information in a consumer’s file, except that this subparagraph shall not apply to any State law in effect on the

date of enactment of the Consumer Credit Reporting

Reform Act of 1996;

‘‘(C) subsections (a) and (b) of section 615, relating

to the duties of a person who takes any adverse action

with respect to a consumer;

‘‘(D) section 615(d), relating to the duties of persons

who use a consumer report of a consumer in connection

with any credit or insurance transaction that is not initiated by the consumer and that consists of a firm offer

of credit or insurance;

‘‘(E) section 605, relating to information contained in

consumer reports, except that this subparagraph shall not

apply to any State law in effect on the date of enactment

of the Consumer Credit Reporting Reform Act of 1996;

or

‘‘(F) section 623, relating to the responsibilities of persons who furnish information to consumer reporting agencies, except that this paragraph shall not apply—

‘‘(i) with respect to section 54A(a) of chapter 93

of the Massachusetts Annotated Laws (as in effect

on the date of enactment of the Consumer Credit

Reporting Reform Act of 1996); or

‘‘(ii) with respect to section 1785.25(a) of the

California Civil Code (as in effect on the date of enactment of the Consumer Credit Reporting Reform Act

of 1996);

‘‘(2) with respect to the exchange of information among

persons affiliated by common ownership or common corporate

control, except that this paragraph shall not apply with respect

to subsection (a) or (c)(1) of section 2480e of title 9, Vermont

Statutes Annotated (as in effect on the date of enactment

of the Consumer Credit Reporting Reform Act of 1996); or

‘‘(3) with respect to the form and content of any disclosure

required to be made under section 609(c).

‘‘(c) DEFINITION OF FIRM OFFER OF CREDIT OR INSURANCE.—

Notwithstanding any definition of the term ‘firm offer of credit

or insurance’ (or any equivalent term) under the laws of any State,

the definition of that term contained in section 603(l) shall be

construed to apply in the enforcement and interpretation of the

laws of any State governing consumer reports.

‘‘(d) LIMITATIONS.—Subsections (b) and (c)—

‘‘(1) do not affect any settlement, agreement, or consent

judgment between any State Attorney General and any

consumer reporting agency in effect on the date of enactment

of the Consumer Credit Reporting Reform Act of 1996; and

‘‘(2) do not apply to any provision of State law (including

any provision of a State constitution) that—

‘‘(A) is enacted after January 1, 2004;

‘‘(B) states explicitly that the provision is intended

to supplement this title; and
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–454

‘‘(C) gives greater protection to consumers than is provided under this title.’’.

SEC. 2420. EFFECTIVE DATE.

(a) IN GENERAL.—Except as otherwise specifically provided in

this chapter, the amendments made by this chapter shall become

effective 365 days after the date of enactment of this Act.

(b) EARLY COMPLIANCE.—Any person or other entity that is

subject to the requirements of this chapter may, at its option,

comply with any provision of this chapter before the date on which

that provision becomes effective under this chapter, in which case,

each of the corresponding provisions of this chapter shall be fully

applicable to such person or entity.

SEC. 2421. RELATIONSHIP TO OTHER LAW.

Nothing in this chapter or the amendments made by this chapter shall be considered to supersede or otherwise affect section

2721 of title 18, United States Code, with respect to motor vehicle

records for surveys, marketing, or solicitations.

SEC. 2422. FEDERAL RESERVE BOARD STUDY.

(a) STUDY REQUIRED.—The Board of Governors of the Federal

Reserve System, in consultation with the other Federal banking

agencies (as defined in section 3 of the Federal Deposit Insurance

Act) and the Federal Trade Commission, shall conduct a study

of whether organizations which, as of the date of the enactment

of this Act, are not subject to the Fair Credit Reporting Act as

consumer reporting agencies (as defined in section 603 of such

Act) are engaged in the business of making sensitive consumer

identification information, including social security numbers, mothers’ maiden names, prior addresses, and dates of birth, available

to the general public.

(b) DETERMINATION OF POTENTIAL FOR FRAUD.—If the Board

of Governors of the Federal Reserve System determines that

organizations referred to in subsection (a) are engaged in the business of making sensitive consumer identification information available to the general public, the Board shall determine—

(1) whether such activities create undue potential for fraud

and risk of loss to insured depository institutions (as defined

in section 3 of the Federal Deposit Insurance Act); and

(2) if so, whether changes in Federal law are necessary

to address such risks of fraud and loss.

(c) REPORT TO CONGRESS.—Before the end of the 6-month period

beginning on the date of the enactment of this Act, the Board

of Governors of the Federal Reserve System shall submit a report

to the Congress containing—

(1) the findings and conclusion of the Board in connection

with the study required under subsections (a) and (b); and

(2) recommendations for such legislative or administrative

action as the Board determines to be appropriate.

CHAPTER 2—CREDIT REPAIR ORGANIZATIONS

SEC. 2451. REGULATION OF CREDIT REPAIR ORGANIZATIONS.

Title IV of the Consumer Credit Protection Act (Public Law

90–321, 82 Stat. 164) is amended to read as follows:

15 USC 1681a

note.

15 USC 1681a

note.
110 STAT. 3009–455 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘TITLE IV—CREDIT REPAIR

ORGANIZATIONS

‘‘Sec.

‘‘401. Short title.

‘‘402. Findings and purposes.

‘‘403. Definitions.

‘‘404. Prohibited practices.

‘‘405. Disclosures.

‘‘406. Credit repair organizations contracts.

‘‘407. Right to cancel contract.

‘‘408. Noncompliance with this title.

‘‘409. Civil liability.

‘‘410. Administrative enforcement.

‘‘411. Statute of limitations.

‘‘412. Relation to State law.

‘‘413. Effective date.

‘‘SEC. 401. SHORT TITLE.

‘‘This title may be cited as the ‘Credit Repair Organizations

Act’.

‘‘SEC. 402. FINDINGS AND PURPOSES.

‘‘(a) FINDINGS.—The Congress makes the following findings:

‘‘(1) Consumers have a vital interest in establishing and

maintaining their credit worthiness and credit standing in order

to obtain and use credit. As a result, consumers who have

experienced credit problems may seek assistance from credit

repair organizations which offer to improve the credit standing

of such consumers.

‘‘(2) Certain advertising and business practices of some

companies engaged in the business of credit repair services

have worked a financial hardship upon consumers, particularly

those of limited economic means and who are inexperienced

in credit matters.

‘‘(b) PURPOSES.—The purposes of this title are—

‘‘(1) to ensure that prospective buyers of the services of

credit repair organizations are provided with the information

necessary to make an informed decision regarding the purchase

of such services; and

‘‘(2) to protect the public from unfair or deceptive advertising and business practices by credit repair organizations.

‘‘SEC. 403. DEFINITIONS.

‘‘For purposes of this title, the following definitions apply:

‘‘(1) CONSUMER.—The term ‘consumer’ means an individual.

‘‘(2) CONSUMER CREDIT TRANSACTION.—The term ‘consumer

credit transaction’ means any transaction in which credit is

offered or extended to an individual for personal, family, or

household purposes.

‘‘(3) CREDIT REPAIR ORGANIZATION.—The term ‘credit repair

organization’—

15 USC 1679a.

15 USC 1679.

15 USC 1601

note.

Credit Repair

Organizations

Act.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–456

‘‘(A) means any person who uses any instrumentality

of interstate commerce or the mails to sell, provide, or

perform (or represent that such person can or will sell,

provide, or perform) any service, in return for the payment

of money or other valuable consideration, for the express

or implied purpose of—

‘‘(i) improving any consumer’s credit record, credit

history, or credit rating; or

‘‘(ii) providing advice or assistance to any consumer

with regard to any activity or service described in

clause (i); and

‘‘(B) does not include—

‘‘(i) any nonprofit organization which is exempt

from taxation under section 501(c)(3) of the Internal

Revenue Code of 1986;

‘‘(ii) any creditor (as defined in section 103 of the

Truth in Lending Act), with respect to any consumer,

to the extent the creditor is assisting the consumer

to restructure any debt owed by the consumer to the

creditor; or

‘‘(iii) any depository institution (as that term is

defined in section 3 of the Federal Deposit Insurance

Act) or any Federal or State credit union (as those

terms are defined in section 101 of the Federal Credit

Union Act), or any affiliate or subsidiary of such a

depository institution or credit union.

‘‘(4) CREDIT.—The term ‘credit’ has the meaning given to

such term in section 103(e) of this Act.

‘‘SEC. 404. PROHIBITED PRACTICES.

‘‘(a) IN GENERAL.—No person may—

‘‘(1) make any statement, or counsel or advise any consumer

to make any statement, which is untrue or misleading (or

which, upon the exercise of reasonable care, should be known

by the credit repair organization, officer, employee, agent, or

other person to be untrue or misleading) with respect to any

consumer’s credit worthiness, credit standing, or credit capacity

to—

‘‘(A) any consumer reporting agency (as defined in section 603(f) of this Act); or

‘‘(B) any person—

‘‘(i) who has extended credit to the consumer; or

‘‘(ii) to whom the consumer has applied or is applying for an extension of credit;

‘‘(2) make any statement, or counsel or advise any consumer

to make any statement, the intended effect of which is to

alter the consumer’s identification to prevent the display of

the consumer’s credit record, history, or rating for the purpose

of concealing adverse information that is accurate and not

obsolete to—

‘‘(A) any consumer reporting agency;

‘‘(B) any person—

‘‘(i) who has extended credit to the consumer; or

‘‘(ii) to whom the consumer has applied or is applying for an extension of credit;

‘‘(3) make or use any untrue or misleading representation

of the services of the credit repair organization; or

15 USC 1679b.
110 STAT. 3009–457 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(4) engage, directly or indirectly, in any act, practice,

or course of business that constitutes or results in the commission of, or an attempt to commit, a fraud or deception on

any person in connection with the offer or sale of the services

of the credit repair organization.

‘‘(b) PAYMENT IN ADVANCE.—No credit repair organization may

charge or receive any money or other valuable consideration for

the performance of any service which the credit repair organization

has agreed to perform for any consumer before such service is

fully performed.

‘‘SEC. 405. DISCLOSURES.

‘‘(a) DISCLOSURE REQUIRED.—Any credit repair organization

shall provide any consumer with the following written statement

before any contract or agreement between the consumer and the

credit repair organization is executed:

‘‘ ‘Consumer Credit File Rights Under State

and Federal Law

‘‘ ‘You have a right to dispute inaccurate information in your

credit report by contacting the credit bureau directly. However,

neither you nor any ‘‘credit repair’’ company or credit repair

organization has the right to have accurate, current, and verifiable

information removed from your credit report. The credit bureau

must remove accurate, negative information from your report only

if it is over 7 years old. Bankruptcy information can be reported

for 10 years.

‘‘ ‘You have a right to obtain a copy of your credit report from

a credit bureau. You may be charged a reasonable fee. There is

no fee, however, if you have been turned down for credit, employment, insurance, or a rental dwelling because of information in

your credit report within the preceding 60 days. The credit bureau

must provide someone to help you interpret the information in

your credit file. You are entitled to receive a free copy of your

credit report if you are unemployed and intend to apply for employment in the next 60 days, if you are a recipient of public welfare

assistance, or if you have reason to believe that there is inaccurate

information in your credit report due to fraud.

‘‘ ‘You have a right to sue a credit repair organization that

violates the Credit Repair Organization Act. This law prohibits

deceptive practices by credit repair organizations.

‘‘ ‘You have the right to cancel your contract with any credit

repair organization for any reason within 3 business days from

the date you signed it.

‘‘ ‘Credit bureaus are required to follow reasonable procedures

to ensure that the information they report is accurate. However,

mistakes may occur.

‘‘ ‘You may, on your own, notify a credit bureau in writing

that you dispute the accuracy of information in your credit file.

The credit bureau must then reinvestigate and modify or remove

inaccurate or incomplete information. The credit bureau may not

charge any fee for this service. Any pertinent information and

copies of all documents you have concerning an error should be

given to the credit bureau.

15 USC 1679c.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–458

‘‘ ‘If the credit bureau’s reinvestigation does not resolve the

dispute to your satisfaction, you may send a brief statement to

the credit bureau, to be kept in your file, explaining why you

think the record is inaccurate. The credit bureau must include

a summary of your statement about disputed information with

any report it issues about you.

‘‘ ‘The Federal Trade Commission regulates credit bureaus and

credit repair organizations. For more information contact:

‘‘ ‘The Public Reference Branch

‘‘ ‘Federal Trade Commission

‘‘ ‘Washington, D.C. 20580’.

‘‘(b) SEPARATE STATEMENT REQUIREMENT.—The written statement required under this section shall be provided as a document

which is separate from any written contract or other agreement

between the credit repair organization and the consumer or any

other written material provided to the consumer.

‘‘(c) RETENTION OF COMPLIANCE RECORDS.— ‘‘(1) IN GENERAL.—The credit repair organization shall

maintain a copy of the statement signed by the consumer

acknowledging receipt of the statement.

‘‘(2) MAINTENANCE FOR 2 YEARS.—The copy of any consumer’s statement shall be maintained in the organization’s files

for 2 years after the date on which the statement is signed

bythe consumer.

‘‘SEC. 406. CREDIT REPAIR ORGANIZATIONS CONTRACTS.

‘‘(a) WRITTEN CONTRACTS REQUIRED.—No services may be provided by any credit repair organization for any consumer—

‘‘(1) unless a written and dated contract (for the purchase

of such services) which meets the requirements of subsection

(b) has been signed by the consumer; or

‘‘(2) before the end of the 3-business-day period beginning

on the date the contract is signed.

‘‘(b) TERMS AND CONDITIONS OF CONTRACT.—No contract

referred to in subsection (a) meets the requirements of this subsection unless such contract includes (in writing)—

‘‘(1) the terms and conditions of payment, including the

total amount of all payments to be made by the consumer

to the credit repair organization or to any other person;

‘‘(2) a full and detailed description of the services to be

performed by the credit repair organization for the consumer,

including—

‘‘(A) all guarantees of performance; and

‘‘(B) an estimate of—

‘‘(i) the date by which the performance of the services (to be performed by the credit repair organization

or any other person) will be complete; or

‘‘(ii) the length of the period necessary to perform

such services;

‘‘(3) the credit repair organization’s name and principal

business address; and

‘‘(4) a conspicuous statement in bold face type, in immediate

proximity to the space reserved for the consumer’s signature

on the contract, which reads as follows: ‘You may cancel this

15 USC 1679d.
110 STAT. 3009–459 PUBLIC LAW 104–208—SEPT. 30, 1996

contract without penalty or obligation at any time before midnight of the 3rd business day after the date on which you

signed the contract. See the attached notice of cancellation

form for an explanation of this right.’.

‘‘SEC. 407. RIGHT TO CANCEL CONTRACT.

‘‘(a) IN GENERAL.—Any consumer may cancel any contract with

any credit repair organization without penalty or obligation by

notifying the credit repair organization of the consumer’s intention

to do so at any time before midnight of the 3rd business day

which begins after the date on which the contract or agreement

between the consumer and the credit repair organization is executed

or would, but for this subsection, become enforceable against the

parties.

‘‘(b) CANCELLATION FORM AND OTHER INFORMATION.—Each contract shall be accompanied by a form, in duplicate, which has

the heading ‘Notice of Cancellation’ and contains in bold face type

the following statement:

‘‘ ‘You may cancel this contract, without any penalty or

obligation, at any time before midnight of the 3rd day which

begins after the date the contract is signed by you.

‘‘ ‘To cancel this contract, mail or deliver a signed, dated

copy of this cancellation notice, or any other written notice

to [ name of credit repair organization ] at [ address of credit

repair organization ] before midnight on [ date ]

‘‘ ‘I hereby cancel this transaction,

[ date ]

[ purchaser’s signature ].’.

‘‘(c) CONSUMER COPY OF CONTRACT REQUIRED.—Any consumer

who enters into any contract with any credit repair organization

shall be given, by the organization—

‘‘(1) a copy of the completed contract and the disclosure

statement required under section 405; and

‘‘(2) a copy of any other document the credit repair

organization requires the consumer to sign, at the time the

contract or the other document is signed.

‘‘SEC. 408. NONCOMPLIANCE WITH THIS TITLE.

‘‘(a) CONSUMER WAIVERS INVALID.—Any waiver by any

consumer of any protection provided by or any right of the consumer

under this title—

‘‘(1) shall be treated as void; and

‘‘(2) may not be enforced by any Federal or State court

or any other person.

‘‘(b) ATTEMPT TO OBTAIN WAIVER.—Any attempt by any person

to obtain a waiver from any consumer of any protection provided

by or any right of the consumer under this title shall be treated

as a violation of this title.

‘‘(c) CONTRACTS NOT IN COMPLIANCE.—Any contract for services

which does not comply with the applicable provisions of this title—

‘‘(1) shall be treated as void; and

‘‘(2) may not be enforced by any Federal or State court

or any other person.

‘‘SEC. 409. CIVIL LIABILITY.

‘‘(a) LIABILITY ESTABLISHED.—Any person who fails to comply

with any provision of this title with respect to any other person

15 USC 1679g.

15 USC 1679f.

15 USC 1679e.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–460

shall be liable to such person in an amount equal to the sum

of the amounts determined under each of the following paragraphs:

‘‘(1) ACTUAL DAMAGES.—The greater of—

‘‘(A) the amount of any actual damage sustained by

such person as a result of such failure; or

‘‘(B) any amount paid by the person to the credit repair

organization.

‘‘(2) PUNITIVE DAMAGES.—

‘‘(A) INDIVIDUAL ACTIONS.—In the case of any action

by an individual, such additional amount as the court

may allow.

‘‘(B) CLASS ACTIONS.—In the case of a class action,

the sum of—

‘‘(i) the aggregate of the amount which the court

may allow for each named plaintiff; and

‘‘(ii) the aggregate of the amount which the court

may allow for each other class member, without regard

to any minimum individual recovery.

‘‘(3) ATTORNEYS’ FEES.—In the case of any successful action

to enforce any liability under paragraph (1) or (2), the costs

of the action, together with reasonable attorneys’ fees.

‘‘(b) FACTORS TO BE CONSIDERED IN AWARDING PUNITIVE DAMAGES.—In determining the amount of any liability of any credit

repair organization under subsection (a)(2), the court shall consider,

among other relevant factors—

‘‘(1) the frequency and persistence of noncompliance by

the credit repair organization;

‘‘(2) the nature of the noncompliance;

‘‘(3) the extent to which such noncompliance was intentional; and

‘‘(4) in the case of any class action, the number of consumers

adversely affected.

‘‘SEC. 410. ADMINISTRATIVE ENFORCEMENT.

‘‘(a) IN GENERAL.—Compliance with the requirements imposed

under this title with respect to credit repair organizations shall

be enforced under the Federal Trade Commission Act by the Federal

Trade Commission.

‘‘(b) VIOLATIONS OF THIS TITLE TREATED AS VIOLATIONS OF

FEDERAL TRADE COMMISSION ACT.—

‘‘(1) IN GENERAL.—For the purpose of the exercise by the

Federal Trade Commission of the Commission’s functions and

powers under the Federal Trade Commission Act, any violation

of any requirement or prohibition imposed under this title

with respect to credit repair organizations shall constitute an

unfair or deceptive act or practice in commerce in violation

of section 5(a) of the Federal Trade Commission Act.

‘‘(2) ENFORCEMENT AUTHORITY UNDER OTHER LAW.—All

functions and powers of the Federal Trade Commission under

the Federal Trade Commission Act shall be available to the

Commission to enforce compliance with this title by any person

subject to enforcement by the Federal Trade Commission pursuant to this subsection, including the power to enforce the provisions of this title in the same manner as if the violation had

been a violation of any Federal Trade Commission trade regulation rule, without regard to whether the credit repair organization—

15 USC 1679h.
110 STAT. 3009–461 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(A) is engaged in commerce; or

‘‘(B) meets any other jurisdictional tests in the Federal

Trade Commission Act.

‘‘(c) STATE ACTION FOR VIOLATIONS.—

‘‘(1) AUTHORITY OF STATES.—In addition to such other remedies as are provided under State law, whenever the chief

law enforcement officer of a State, or an official or agency

designated by a State, has reason to believe that any person

has violated or is violating this title, the State—

‘‘(A) may bring an action to enjoin such violation;

‘‘(B) may bring an action on behalf of its residents

to recover damages for which the person is liable to such

residents under section 409 as a result of the violation;

and

‘‘(C) in the case of any successful action under subparagraph (A) or (B), shall be awarded the costs of the action

and reasonable attorney fees as determined by the court.

‘‘(2) RIGHTS OF COMMISSION.—

‘‘(A) NOTICE TO COMMISSION.—The State shall serve

prior written notice of any civil action under paragraph

(1) upon the Federal Trade Commission and provide the

Commission with a copy of its complaint, except in any

case where such prior notice is not feasible, in which case

the State shall serve such notice immediately upon instituting such action.

‘‘(B) INTERVENTION.—The Commission shall have the

right—

‘‘(i) to intervene in any action referred to in

subparagraph (A);

‘‘(ii) upon so intervening, to be heard on all matters

arising in the action; and

‘‘(iii) to file petitions for appeal.

‘‘(3) INVESTIGATORY POWERS.—For purposes of bringing any

action under this subsection, nothing in this subsection shall

prevent the chief law enforcement officer, or an official or

agency designated by a State, from exercising the powers conferred on the chief law enforcement officer or such official

by the laws of such State to conduct investigations or to administer oaths or affirmations or to compel the attendance of witnesses or the production of documentary and other evidence.

‘‘(4) LIMITATION.—Whenever the Federal Trade Commission

has instituted a civil action for violation of this title, no State

may, during the pendency of such action, bring an action under

this section against any defendant named in the complaint

of the Commission for any violation of this title that is alleged

in that complaint.

‘‘SEC. 411. STATUTE OF LIMITATIONS.

‘‘Any action to enforce any liability under this title may be

brought before the later of—

‘‘(1) the end of the 5-year period beginning on the date

of the occurrence of the violation involved; or

‘‘(2) in any case in which any credit repair organization

has materially and willfully misrepresented any information

which—

‘‘(A) the credit repair organization is required, by any

provision of this title, to disclose to any consumer; and

15 USC 1679i.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–462

‘‘(B) is material to the establishment of the credit repair

organization’s liability to the consumer under this title,

the end of the 5-year period beginning on the date of the

discovery by the consumer of the misrepresentation.

‘‘SEC. 412. RELATION TO STATE LAW.

‘‘This title shall not annul, alter, affect, or exempt any person

subject to the provisions of this title from complying with any

law of any State except to the extent that such law is inconsistent

with any provision of this title, and then only to the extent of

the inconsistency.

‘‘SEC. 413. EFFECTIVE DATE.

‘‘This title shall apply after the end of the 6-month period

beginning on the date of the enactment of the Credit Repair

Organizations Act, except with respect to contracts entered into

by a credit repair organization before the end of such period.’’.

SEC. 2452. CREDIT WORTHINESS.

It is the sense of the Senate that—

(1) individuals should generally be judged for credit worthiness based on their own credit worthiness and not on the

zip code or neighborhood in which they live; and

(2) the Federal Trade Commission, after consultation with

the appropriate Federal banking agency, should report to the

Committee on Banking, Housing, and Urban Affairs of the

Senate as to whether and how the location of the residence

of an applicant for unsecured credit is considered by many

companies and financial institutions in deciding whether an

applicant should be granted credit.

Subtitle E—Asset Conservation, Lender Liability, and Deposit Insurance Protection

SEC. 2501. SHORT TITLE.

This subtitle may be cited as the ‘‘Asset Conservation, Lender

Liability, and Deposit Insurance Protection Act of 1996’’.

SEC. 2502. CERCLA LENDER AND FIDUCIARY LIABILITY LIMITATIONS

AMENDMENTS.

(a) IN GENERAL.—Section 107 of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42

U.S.C. 9607) is amended by adding at the end the following:

‘‘(n) LIABILITY OF FIDUCIARIES.—

‘‘(1) IN GENERAL.—The liability of a fiduciary under any

provision of this Act for the release or threatened release of

a hazardous substance at, from, or in connection with a vessel

or facility held in a fiduciary capacity shall not exceed the

assets held in the fiduciary capacity.

‘‘(2) EXCLUSION.—Paragraph (1) does not apply to the

extent that a person is liable under this Act independently

of the person’s ownership of a vessel or facility as a fiduciary

or actions taken in a fiduciary capacity.

‘‘(3) LIMITATION.—Paragraphs (1) and (4) do not limit the

liability pertaining to a release or threatened release of a

Asset

Conservation,

Lender Liability,

and Deposit

Insurance

Protection Act of

1996.

42 USC 9601

note.

15 USC 1679

note.

15 USC 1679j.
110 STAT. 3009–463 PUBLIC LAW 104–208—SEPT. 30, 1996

hazardous substance if negligence of a fiduciary causes or

contributes to the release or threatened release.

‘‘(4) SAFE HARBOR.—A fiduciary shall not be liable in its

personal capacity under this Act for—

‘‘(A) undertaking or directing another person to undertake a response action under subsection (d)(1) or under

the direction of an on scene coordinator designated under

the National Contingency Plan;

‘‘(B) undertaking or directing another person to undertake any other lawful means of addressing a hazardous

substance in connection with the vessel or facility;

‘‘(C) terminating the fiduciary relationship;

‘‘(D) including in the terms of the fiduciary agreement

a covenant, warranty, or other term or condition that

relates to compliance with an environmental law, or monitoring, modifying or enforcing the term or condition;

‘‘(E) monitoring or undertaking 1 or more inspections

of the vessel or facility;

‘‘(F) providing financial or other advice or counseling

to other parties to the fiduciary relationship, including

the settlor or beneficiary;

‘‘(G) restructuring, renegotiating, or otherwise altering

the terms and conditions of the fiduciary relationship;

‘‘(H) administering, as a fiduciary, a vessel or facility

that was contaminated before the fiduciary relationship

began; or

‘‘(I) declining to take any of the actions described in

subparagraphs (B) through (H).

‘‘(5) DEFINITIONS.—As used in this Act:

‘‘(A) FIDUCIARY.—The term ‘fiduciary’—

‘‘(i) means a person acting for the benefit of another

party as a bona fide—

‘‘(I) trustee;

‘‘(II) executor;

‘‘(III) administrator;

‘‘(IV) custodian;

‘‘(V) guardian of estates or guardian ad litem;

‘‘(VI) receiver;

‘‘(VII) conservator;

‘‘(VIII) committee of estates of incapacitated

persons;

‘‘(IX) personal representative;

‘‘(X) trustee (including a successor to a trustee)

under an indenture agreement, trust agreement,

lease, or similar financing agreement, for debt

securities, certificates of interest or certificates of

participation in debt securities, or other forms of

indebtedness as to which the trustee is not, in

the capacity of trustee, the lender; or

‘‘(XI) representative in any other capacity that

the Administrator, after providing public notice,

determines to be similar to the capacities described

in subclauses (I) through (X); and

‘‘(ii) does not include—

‘‘(I) a person that is acting as a fiduciary with

respect to a trust or other fiduciary estate that

was organized for the primary purpose of, or is
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–464

engaged in, actively carrying on a trade or business

for profit, unless the trust or other fiduciary estate

was created as part of, or to facilitate, 1 or more

estate plans or because of the incapacity of a natural person; or

‘‘(II) a person that acquires ownership or control of a vessel or facility with the objective purpose

of avoiding liability of the person or of any other

person.

‘‘(B) FIDUCIARY CAPACITY.—The term ‘fiduciary capacity’ means the capacity of a person in holding title to

a vessel or facility, or otherwise having control of or an

interest in the vessel or facility, pursuant to the exercise

of the responsibilities of the person as a fiduciary.

‘‘(6) SAVINGS CLAUSE.—Nothing in this subsection—

‘‘(A) affects the rights or immunities or other defenses

that are available under this Act or other law that is

applicable to a person subject to this subsection; or

‘‘(B) creates any liability for a person or a private

right of action against a fiduciary or any other person.

‘‘(7) NO EFFECT ON CERTAIN PERSONS.—Nothing in this

subsection applies to a person if the person—

‘‘(A)(i) acts in a capacity other than that of a fiduciary

or in a beneficiary capacity; and

‘‘(ii) in that capacity, directly or indirectly benefits

from a trust or fiduciary relationship; or

‘‘(B)(i) is a beneficiary and a fiduciary with respect

to the same fiduciary estate; and

‘‘(ii) as a fiduciary, receives benefits that exceed customary or reasonable compensation, and incidental benefits, permitted under other applicable law.

‘‘(8) LIMITATION.—This subsection does not preclude a claim

under this Act against—

‘‘(A) the assets of the estate or trust administered

by the fiduciary; or

‘‘(B) a nonemployee agent or independent contractor

retained by a fiduciary.’’.

(b) DEFINITION OF OWNER OR OPERATOR.—Section 101(20) of

the Comprehensive Environmental Response, Compensation, and

Liability Act of 1980 (42 U.S.C. 9601(20)) is amended by adding

at the end the following:

‘‘(E) EXCLUSION OF LENDERS NOT PARTICIPANTS IN

MANAGEMENT.—

‘‘(i) INDICIA OF OWNERSHIP TO PROTECT SECURITY.—

The term ‘owner or operator’ does not include a person

that is a lender that, without participating in the

management of a vessel or facility, holds indicia of

ownership primarily to protect the security interest

of the person in the vessel or facility.

‘‘(ii) FORECLOSURE.—The term ‘owner or operator’

does not include a person that is a lender that did

not participate in management of a vessel or facility

prior to foreclosure, notwithstanding that the person—

‘‘(I) forecloses on the vessel or facility; and

‘‘(II) after foreclosure, sells, re-leases (in the

case of a lease finance transaction), or liquidates

the vessel or facility, maintains business activities,
110 STAT. 3009–465 PUBLIC LAW 104–208—SEPT. 30, 1996

winds up operations, undertakes a response action

under section 107(d)(1) or under the direction of

an on-scene coordinator appointed under the

National Contingency Plan, with respect to the

vessel or facility, or takes any other measure to

preserve, protect, or prepare the vessel or facility

prior to sale or disposition,

if the person seeks to sell, re-lease (in the case of

a lease finance transaction), or otherwise divest the

person of the vessel or facility at the earliest practicable, commercially reasonable time, on commercially

reasonable terms, taking into account market conditions and legal and regulatory requirements.

‘‘(F) PARTICIPATION IN MANAGEMENT.—For purposes of

subparagraph (E)—

‘‘(i) the term ‘participate in management’—

‘‘(I) means actually participating in the

management or operational affairs of a vessel or

facility; and

‘‘(II) does not include merely having the capacity to influence, or the unexercised right to control,

vessel or facility operations;

‘‘(ii) a person that is a lender and that holds indicia

of ownership primarily to protect a security interest

in a vessel or facility shall be considered to participate

in management only if, while the borrower is still

in possession of the vessel or facility encumbered by

the security interest, the person—

‘‘(I) exercises decisionmaking control over the

environmental compliance related to the vessel or

facility, such that the person has undertaken

responsibility for the hazardous substance handling or disposal practices related to the vessel

or facility; or

‘‘(II) exercises control at a level comparable

to that of a manager of the vessel or facility, such

that the person has assumed or manifested responsibility—

‘‘(aa) for the overall management of the

vessel or facility encompassing day-to-day

decisionmaking with respect to environmental

compliance; or

‘‘(bb) over all or substantially all of the

operational functions (as distinguished from

financial or administrative functions) of the

vessel or facility other than the function of

environmental compliance;

‘‘(iii) the term ‘participate in management’ does

not include performing an act or failing to act prior

to the time at which a security interest is created

in a vessel or facility; and

‘‘(iv) the term ‘participate in management’ does

not include—

‘‘(I) holding a security interest or abandoning

or releasing a security interest;

‘‘(II) including in the terms of an extension

of credit, or in a contract or security agreement
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–466

relating to the extension, a covenant, warranty,

or other term or condition that relates to environmental compliance;

‘‘(III) monitoring or enforcing the terms and

conditions of the extension of credit or security

interest;

‘‘(IV) monitoring or undertaking 1 or more

inspections of the vessel or facility;

‘‘(V) requiring a response action or other lawful

means of addressing the release or threatened

release of a hazardous substance in connection

with the vessel or facility prior to, during, or on

the expiration of the term of the extension of credit;

‘‘(VI) providing financial or other advice or

counseling in an effort to mitigate, prevent, or

cure default or diminution in the value of the

vessel or facility;

‘‘(VII) restructuring, renegotiating, or otherwise agreeing to alter the terms and conditions

of the extension of credit or security interest,

exercising forbearance;

‘‘(VIII) exercising other remedies that may be

available under applicable law for the breach of

a term or condition of the extension of credit or

security agreement; or

‘‘(IX) conducting a response action under section 107(d) or under the direction of an on-scene

coordinator appointed under the National Contingency Plan,

if the actions do not rise to the level of participating

in management (within the meaning of clauses (i) and

(ii)).

‘‘(G) OTHER TERMS.—As used in this Act:

‘‘(i) EXTENSION OF CREDIT.—The term ‘extension

of credit’ includes a lease finance transaction—

‘‘(I) in which the lessor does not initially select

the leased vessel or facility and does not during

the lease term control the daily operations or

maintenance of the vessel or facility; or

‘‘(II) that conforms with regulations issued by

the appropriate Federal banking agency or the

appropriate State bank supervisor (as those terms

are defined in section 3 of the Federal Deposit

Insurance Act (12 U.S.C. 1813) or with regulations

issued by the National Credit Union Administration Board, as appropriate.

‘‘(ii) FINANCIAL OR ADMINISTRATIVE FUNCTION.—

The term ‘financial or administrative function’ includes

a function such as that of a credit manager, accounts

payable officer, accounts receivable officer, personnel

manager, comptroller, or chief financial officer, or a

similar function.

‘‘(iii) FORECLOSURE; FORECLOSE.—The terms ‘foreclosure’ and ‘foreclose’ mean, respectively, acquiring,

and to acquire, a vessel or facility through—
110 STAT. 3009–467 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(I)(aa) purchase at sale under a judgment

or decree, power of sale, or nonjudicial foreclosure

sale;

‘‘(bb) a deed in lieu of foreclosure, or similar

conveyance from a trustee; or

‘‘(cc) repossession,

if the vessel or facility was security for an extension

of credit previously contracted;

‘‘(II) conveyance pursuant to an extension of

credit previously contracted, including the termination of a lease agreement; or

‘‘(III) any other formal or informal manner

by which the person acquires, for subsequent disposition, title to or possession of a vessel or facility

in order to protect the security interest of the

person.

‘‘(iv) LENDER.—The term ‘lender’ means—

‘‘(I) an insured depository institution (as

defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813));

‘‘(II) an insured credit union (as defined in

section 101 of the Federal Credit Union Act (12

U.S.C. 1752));

‘‘(III) a bank or association chartered under

the Farm Credit Act of 1971 (12 U.S.C. 2001 et

seq.);

‘‘(IV) a leasing or trust company that is an

affiliate of an insured depository institution;

‘‘(V) any person (including a successor or

assignee of any such person) that makes a bona

fide extension of credit to or takes or acquires

a security interest from a nonaffiliated person;

‘‘(VI) the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation, the Federal Agricultural Mortgage Corporation, or any other entity that in a bona fide manner

buys or sells loans or interests in loans;

‘‘(VII) a person that insures or guarantees

against a default in the repayment of an extension

of credit, or acts as a surety with respect to an

extension of credit, to a nonaffiliated person; and

‘‘(VIII) a person that provides title insurance

and that acquires a vessel or facility as a result

of assignment or conveyance in the course of

underwriting claims and claims settlement.

‘‘(v) OPERATIONAL FUNCTION.—The term ‘operational function’ includes a function such as that of

a facility or plant manager, operations manager, chief

operating officer, or chief executive officer.

‘‘(vi) SECURITY INTEREST.—The term ‘security

interest’ includes a right under a mortgage, deed of

trust, assignment, judgment lien, pledge, security

agreement, factoring agreement, or lease and any other

right accruing to a person to secure the repayment

of money, the performance of a duty, or any other

obligation by a nonaffiliated person.’’.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–468

SEC. 2503. CONFORMING AMENDMENT.

Section 9003(h) of the Solid Waste Disposal Act (42 U.S.C.

6991b(h)) is amended by striking paragraph (9) and inserting the

following:

‘‘(9) DEFINITION OF OWNER OR OPERATOR.—

‘‘(A) IN GENERAL.—As used in this subtitle, the terms

‘owner’ and ‘operator’ do not include a person that, without

participating in the management of an underground storage tank and otherwise not engaged in petroleum production, refining, or marketing, holds indicia of ownership

primarily to protect the person’s security interest.

‘‘(B) SECURITY INTEREST HOLDERS.—The provisions

regarding holders of security interests in subparagraphs

(E) through (G) of section 101(20) and the provisions

regarding fiduciaries at section 107(n) of the Comprehensive Environmental Response, Compensation, and Liability

Act of 1980 shall apply in determining a person’s liability

as an owner or operator of an underground storage tank

for the purposes of this subtitle.

‘‘(C) EFFECT ON RULE.—Nothing in subparagraph (B)

shall be construed as modifying or affecting the final rule

issued by the Administrator on September 7, 1995 (60

Fed. Reg. 46,692), or as limiting the authority of the

Administrator to amend the final rule, in accordance with

applicable law. The final rule in effect on the date of

enactment of this subparagraph shall prevail over any

inconsistent provision regarding holders of security

interests in subparagraphs (E) through (G) of section

101(20) or any inconsistent provision regarding fiduciaries

in section 107(n) of the Comprehensive Environmental

Response, Compensation, and Liability Act of 1980. Any

amendment to the final rule shall be consistent with the

provisions regarding holders of security interests in subparagraphs (E) through (G) of section 101(20) and the

provisions regarding fiduciaries in section 107(n) of the

Comprehensive Environmental Response, Compensation,

and Liability Act of 1980. This subparagraph does not

preclude judicial review of any amendment of the final

rule made after the date of enactment of this subparagraph.’’.

SEC. 2504. LENDER LIABILITY RULE.

(a) IN GENERAL.—Effective on the date of enactment of this

Act, the portion of the final rule issued by the Administrator of

the Environmental Protection Agency on April 29, 1992 (57 Fed.

Reg. 18,344), prescribing section 300.1105 of title 40, Code of Federal Regulations, shall be deemed to have been validly issued under

authority of the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 9601 et seq.) and

to have been effective according to the terms of the final rule.

No additional judicial proceedings shall be necessary or may be

held with respect to such portion of the final rule. Any reference

in that portion of the final rule to section 300.1100 of title 40,

Code of Federal Regulations, shall be deemed to be a reference

to the amendments made by this subtitle.

(b) JUDICIAL REVIEW.—Notwithstanding section 113(a) of the

Comprehensive Environmental Response, Compensation, and
110 STAT. 3009–469 PUBLIC LAW 104–208—SEPT. 30, 1996

Liability Act of 1980 (42 U.S.C. 9613(a)), no court shall have jurisdiction to review the portion of the final rule issued by the Administrator of the Environmental Protection Agency on April 29, 1992

(57 Fed. Reg. 18,344) that prescribed section 300.1105 of title 40,

Code of Federal Regulations.

(c) AMENDMENT.—No provision of this section shall be construed

as limiting the authority of the President or a delegee of the

President to amend the portion of the final rule issued by the

Administrator of the Environmental Protection Agency on April

29, 1992 (57 Fed. Reg. 18,344), prescribing section 300.1105 of

title 40, Code of Federal Regulations, consistent with the amendments made by this subtitle and other applicable law.

(d) JUDICIAL REVIEW.—No provision of this section shall be

construed as precluding judicial review of any amendment of section

300.1105 of title 40, Code of Federal Regulations, made after the

date of enactment of this Act.

SEC. 2505. EFFECTIVE DATE.

The amendments made by this subtitle shall be applicable

with respect to any claim that has not been finally adjudicated

as of the date of enactment of this Act.

Subtitle F—Miscellaneous

SEC. 2601. FEDERAL RESERVE BOARD STUDY.

(a) STUDY OF ELECTRONIC STORED VALUE PRODUCTS.— (1) STUDY.—The Board shall conduct a study of electronic

stored value products which evaluates whether provisions of

the Electronic Fund Transfer Act could be applied to such

products without adversely impacting the cost, development,

and operation of such products.

(2) CONSIDERATIONS.—In conducting its study under paragraph (1), the Board shall consider whether alternatives to

regulation under the Electronic Fund Transfer Act, such as

allowing competitive market forces to shape the development

and operation of electronic stored value products, could more

efficiently achieve the objectives embodied in that Act.

(b) REPORT.—The Board shall submit a report of its study

under subsection (a) to the Congress not later than 6 months

after the date of enactment of this Act.

(c) ACTION TO FINALIZE.—The Board shall take no action to

finalize any amendments to regulations under the Electronic Fund

Transfer Act that would regulate electronic stored value products

until the later of—

(1) 3 months after the date on which the report is submitted

to the Congress under subsection (b); or

(2) 9 months after the date of enactment of this Act.

SEC. 2602. TREATMENT OF CLAIMS ARISING FROM BREACH OF CONTRACTS EXECUTED BY THE RECEIVER OR CONSERVATOR.

Section 11(d) of the Federal Deposit Insurance Act (12 U.S.C.

1821(d)) is amended by adding at the end the following new paragraph:

‘‘(20) TREATMENT OF CLAIMS ARISING FROM BREACH OF CONTRACTS EXECUTED BY THE RECEIVER OR CONSERVATOR.—Notwithstanding any other provision of this subsection, any final

42 USC 6991b

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–470

and unappealable judgment for monetary damages entered

against a receiver or conservator for an insured depository

institution for the breach of an agreement executed or approved

by such receiver or conservator after the date of its appointment

shall be paid as an administrative expense of the receiver

or conservator. Nothing in this paragraph shall be construed

to limit the power of a receiver or conservator to exercise

any rights under contract or law, including to terminate, breach,

cancel, or otherwise discontinue such agreement.’’.

SEC. 2603. CRIMINAL SANCTIONS FOR FICTITIOUS FINANCIAL

INSTRUMENTS AND COUNTERFEITING.

(a) INCREASED PENALTIES FOR COUNTERFEITING VIOLATIONS.—

Sections 474 and 474A of title 18, United States Code, are amended

by striking ‘‘class C felony’’ each place that term appears and

inserting ‘‘class B felony’’.

(b) CRIMINAL PENALTY FOR PRODUCTION, SALE, TRANSPORTATION, POSSESSION OF FICTITIOUS FINANCIAL INSTRUMENTS

PURPORTING TO BE THOSE OF THE STATES, OF POLITICAL SUBDIVISIONS, AND OF PRIVATE ORGANIZATIONS.—

(1) IN GENERAL.—Chapter 25 of title 18, United States

Code, is amended by inserting after section 513, the following

new section:

‘‘§ 514. Fictitious obligations

‘‘(a) Whoever, with the intent to defraud—

‘‘(1) draws, prints, processes, produces, publishes, or otherwise makes, or attempts or causes the same, within the United

States;

‘‘(2) passes, utters, presents, offers, brokers, issues, sells,

or attempts or causes the same, or with like intent possesses,

within the United States; or

‘‘(3) utilizes interstate or foreign commerce, including the

use of the mails or wire, radio, or other electronic communication, to transmit, transport, ship, move, transfer, or attempts

or causes the same, to, from, or through the United States,

any false or fictitious instrument, document, or other item appearing, representing, purporting, or contriving through scheme or artifice, to be an actual security or other financial instrument issued

under the authority of the United States, a foreign government,

a State or other political subdivision of the United States, or an

organization, shall be guilty of a class B felony.

‘‘(b) For purposes of this section, any term used in this section

that is defined in section 513(c) has the same meaning given such

term in section 513(c).

‘‘(c) The United States Secret Service, in addition to any other

agency having such authority, shall have authority to investigate

offenses under this section.’’.

(2) TECHNICAL AMENDMENT.—The analysis for chapter 25

of title 18, United States Code, is amended by inserting after

the item relating to section 513 the following:

‘‘514. Fictitious obligations.’’.

SEC. 2604. AMENDMENTS TO THE TRUTH IN SAVINGS ACT.

(a) REPEAL.—Effective as of the end of the 5-year period beginning on the date of the enactment of this Act, section 271 of

the Truth in Savings Act (12 U.S.C. 4310) is repealed.
110 STAT. 3009–471 PUBLIC LAW 104–208—SEPT. 30, 1996

(b) ON-PREMISES DISPLAYS.—Section 263(c) of the Truth in

Savings Act (12 U.S.C. 4302(c)) is amended—

(1) by striking paragraph (2);

(2) by striking ‘‘(1) IN GENERAL.—’’; and

(3) by redesignating subparagraphs (A) and (B) as paragraphs (1) and (2), respectively, and indenting appropriately.

(c) DEPOSITORY INSTITUTION DEFINITION.—Section 274(6) of the

Truth in Savings Act (12 U.S.C. 4313(6)) is amended by inserting

before the period ‘‘, but does not include any nonautomated credit

union that was not required to comply with the requirements of

this title as of the date of enactment of the Economic Growth

and Regulatory Paperwork Reduction Act of 1996, pursuant to

the determination of the National Credit Union Administration

Board’’.

(d) TIME DEPOSITS.—Section 266(a)(3) of the Truth in Savings

Act (12 U.S.C. 4305(a)(3)) is amended by inserting ‘‘has a maturity

of more than 30 days’’ after ‘‘deposit which’’.

SEC. 2605. CONSUMER LEASING ACT AMENDMENTS.

(a) CONGRESSIONAL FINDINGS AND DECLARATION OF PURPOSES.—

(1) FINDINGS.—The Congress finds that—

(A) competition among the various financial institutions and other firms engaged in the business of consumer

leasing is greatest when there is informed use of leasing;

(B) the informed use of leasing results from an awareness of the cost of leasing by consumers; and

(C) there has been a continued trend toward leasing

automobiles and other durable goods for consumer use

as an alternative to installment credit sales and that leasing product advances have occurred such that lessors have

been unable to provide consistent industry-wide disclosures

to fully account for the competitive progress that has

occurred.

(2) PURPOSES.—The purposes of this section are—

(A) to assure a simple, meaningful disclosure of leasing

terms so that the consumer will be able to compare more

readily the various leasing terms available to the consumer

and avoid the uninformed use of leasing, and to protect

the consumer against inaccurate and unfair leasing practices;

(B) to provide for adequate cost disclosures that reflect

the marketplace without impairing competition and the

development of new leasing products; and

(C) to provide the Board with the regulatory authority

to assure a simplified, meaningful definition and disclosure

of the terms of certain leases of personal property for

personal, family, or household purposes so as to—

(i) enable the lessee to compare more readily the

various lease terms available to the lessee;

(ii) enable comparison of lease terms with credit

terms, as appropriate; and

(iii) assure meaningful and accurate disclosures

of lease terms in advertisements.

(b) REGULATIONS.—

15 USC 1667

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–472

(1) IN GENERAL.—Chapter 5 of the Truth in Lending Act

(15 U.S.C. 1667 et seq.) is amended by adding at the end

the following new section:

‘‘SEC. 187. REGULATIONS.

‘‘(a) REGULATIONS AUTHORIZED.—

‘‘(1) IN GENERAL.—The Board shall prescribe regulations

to update and clarify the requirements and definitions

applicable to lease disclosures and contracts, and any other

issues specifically related to consumer leasing, to the extent

that the Board determines such action to be necessary—

‘‘(A) to carry out this chapter;

‘‘(B) to prevent any circumvention of this chapter; or

‘‘(C) to facilitate compliance with the requirements of

the chapter.

‘‘(2) CLASSIFICATIONS, ADJUSTMENTS.—Any regulations prescribed under paragraph (1) may contain classifications and

differentiations, and may provide for adjustments and exceptions for any class of transactions, as the Board considers

appropriate.

‘‘(b) MODEL DISCLOSURE.—

‘‘(1) PUBLICATION.—The Board shall establish and publish

model disclosure forms to facilitate compliance with the disclosure requirements of this chapter and to aid the consumer

in understanding the transaction to which the subject disclosure

form relates.

‘‘(2) USE OF AUTOMATED EQUIPMENT.—In establishing model

forms under this subsection, the Board shall consider the use

by lessors of data processing or similar automated equipment.

‘‘(3) USE OPTIONAL.—A lessor may utilize a model disclosure

form established by the Board under this subsection for purposes of compliance with this chapter, at the discretion of

the lessor.

‘‘(4) EFFECT OF USE.—Any lessor who properly uses the

material aspects of any model disclosure form established by

the Board under this subsection shall be deemed to be in

compliance with the disclosure requirements to which the form

relates.’’.

(2) EFFECTIVE DATE.—

(A) IN GENERAL.—Any regulation of the Board, or any

amendment or interpretation of any regulation of the Board

issued pursuant to section 187 of the Truth in Lending

Act (as added by paragraph (1) of this subsection), shall

become effective on the first October 1 that follows the

date of promulgation of that regulation, amendment, or

interpretation by not less than 6 months.

(B) LONGER PERIOD.—The Board may, at the discretion

of the Board, extend the time period referred to in subparagraph (A) in accordance with subparagraph (C), to permit

lessors to adjust their disclosure forms to accommodate

the requirements of section 127 of the Truth in Lending

Act (as added by paragraph (1) of this subsection).

(C) SHORTER PERIOD.—The Board may shorten the time

period referred to in subparagraph (A), if the Board makes

a specific finding that such action is necessary to comply

with the findings of a court or to prevent an unfair or

deceptive practice.

15 USC 1667f

note.

15 USC 1667f.
110 STAT. 3009–473 PUBLIC LAW 104–208—SEPT. 30, 1996

(D) COMPLIANCE BEFORE EFFECTIVE DATE.—Any lessor

may comply with any means of disclosure provided for

in section 127 of the Truth in Lending Act (as added

by paragraph (1) of this subsection) before the effective

date of such requirement.

(E) DEFINITIONS.—For purposes of this subsection, the

term ‘‘lessor’’ has the same meaning as in section 181

of the Truth in Lending Act.

(3) CLERICAL AMENDMENT.—The table of sections for chapter 5 of title I of the Truth in Lending Act (15 U.S.C. 1601

et seq.) is amended by inserting after the item relating to

section 186 the following new item:

‘‘187. Regulations.’’.

(c) CONSUMER LEASE ADVERTISING.—Section 184 of the Truth

in Lending Act (15 U.S.C. 1667c) is amended—

(1) by striking subsections (a) and (c);

(2) by redesignating subsection (b) as subsection (c); and

(3) by inserting before subsection (c), as so redesignated,

the following:

‘‘(a) IN GENERAL.—If an advertisement for a consumer lease

includes a statement of the amount of any payment or a statement

that any or no initial payment is required, the advertisement shall

clearly and conspicuously state, as applicable—

‘‘(1) the transaction advertised is a lease;

‘‘(2) the total amount of any initial payments required

on or before consummation of the lease or delivery of the

property, whichever is later;

‘‘(3) that a security deposit is required;

‘‘(4) the number, amount, and timing of scheduled payments; and

‘‘(5) with respect to a lease in which the liability of the

consumer at the end of the lease term is based on the anticipated residual value of the property, that an extra charge

may be imposed at the end of the lease term.

‘‘(b) ADVERTISING MEDIUM NOT LIABLE.—No owner or employee

of any entity that serves as a medium in which an advertisement

appears or through which an advertisement is disseminated, shall

be liable under this section.’’.

SEC. 2606. STUDY OF CORPORATE CREDIT UNIONS.

(a) DEFINITIONS.—For purposes of this section, the following

definitions shall apply:

(1) ADMINISTRATION.—The term ‘‘Administration’’ means

the National Credit Union Administration.

(2) BOARD.—The term ‘‘Board’’ means the National Credit

Union Administration Board.

(3) CORPORATE CREDIT UNION.—The term ‘‘corporate credit

union’’ has the meaning given such term by rule or regulation

of the Board.

(4) FUND.—The term ‘‘Fund’’ means the National Credit

Union Share Insurance Fund established under section 203

of the Federal Credit Union Act.

(5) SECRETARY.—The term ‘‘Secretary’’ means the Secretary

of the Treasury.

(b) STUDY.—

12 USC 1752a

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–474

(1) IN GENERAL.—The Secretary, in consultation with the

Board, the Corporation, the Comptroller of the Currency, and

the Administration, shall conduct a study and evaluation of—

(A) the oversight and supervisory practices of the

Administration concerning the Fund, including the treatment of amounts deposited in the Fund pursuant to section

202(c) of the Federal Credit Union Act, including analysis

of—

(i) whether those amounts should be—

(I) refundable; or

(II) treated as expenses; and

(ii) the use of those amounts in determining equity

capital ratios;

(B) the potential for, and potential effects of, administration of the Fund by an entity other than the Administration;

(C) the 10 largest corporate credit unions in the United

States, conducted in cooperation with appropriate employees of other Federal agencies with expertise in the examination of federally insured financial institutions, including—

(i) the investment practices of those credit unions;

and

(ii) the financial stability, financial operations, and

financial controls of those credit unions;

(D) the regulations of the Administration; and

(E) the supervision of corporate credit unions by the

Administration.

(c) REPORT.—Not later than 12 months after the date of enactment of this Act, the Secretary shall submit to the appropriate

committees of the Congress, a report that includes the results

of the study and evaluation conducted under subsection (b), together

with any recommendations that the Secretary considers to be appropriate.

SEC. 2607. REPORT ON THE RECONCILIATION OF DIFFERENCES

BETWEEN REGULATORY ACCOUNTING PRINCIPLES AND

GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.

Not later than 180 days after the date of enactment of this

Act, each appropriate Federal banking agency 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 describing both the actions

that have been taken by the agency and the actions that will

be taken by the agency to eliminate or conform inconsistent or

duplicative accounting and reporting requirements applicable to

reports or statements filed with any such agency by insured depository institutions, as required by section 121 of the Federal Deposit

Insurance Corporation Improvement Act of 1991.

SEC. 2608. STATE-BY-STATE AND METROPOLITAN AREA-BY-METROPOLITAN AREA STUDY OF BANK FEES.

Section 1002(b)(2)(A) of the Financial Institutions Reform,

Recovery, and Enforcement Act of 1989 (12 U.S.C. 1811 note) is

amended to read as follows:

‘‘(A) a description of any discernible trend, in the

Nation as a whole, in each of the 50 States, and in each

consolidated metropolitan statistical area or primary metropolitan statistical area (as defined by the Director of the
110 STAT. 3009–475 PUBLIC LAW 104–208—SEPT. 30, 1996

Office of Management and Budget), in the cost and availability of retail banking services (including fees imposed

for providing such services), that delineates differences

between insured depository institutions on the basis of

both the size of the institution and any engagement of

the institution in multistate activity; and’’.

SEC. 2609. PROSPECTIVE APPLICATION OF GOLD CLAUSES IN CONTRACTS.

Section 5118(d)(2) of title 31, United States Code, is amended

by adding at the end the following: ‘‘This paragraph shall apply

to any obligation issued on or before October 27, 1977, notwithstanding any assignment or novation of such obligation after October

27, 1977, unless all parties to the assignment or novation specifically agree to include a gold clause in the new agreement. Nothing

in the preceding sentence shall be construed to affect the enforceability of a Gold Clause contained in any obligation issued after

October 27, 1977 if the enforceability of that Gold Clause has

been finally adjudicated before the date of enactment of the Economic Growth and Regulatory Paperwork Reduction Act of 1996.’’.

SEC. 2610. QUALIFIED FAMILY PARTNERSHIPS.

Section 2 of the Bank Holding Company Act of 1956 (12 U.S.C.

1841) is amended—

(1) in subsection (b), by inserting ‘‘, and shall not include

a qualified family partnership’’ after ‘‘by any State’’; and

(2) in subsection (o), by adding at the end the following:

‘‘(10) QUALIFIED FAMILY PARTNERSHIP.—The term ‘qualified

family partnership’ means a general or limited partnership

that the Board determines—

‘‘(A) does not directly control any bank, except through

a registered bank holding company;

‘‘(B) does not control more than 1 registered bank

holding company;

‘‘(C) does not engage in any business activity, except

indirectly through ownership of other business entities;

‘‘(D) has no investments other than those permitted

for a bank holding company pursuant to section 4(c);

‘‘(E) is not obligated on any debt, either directly or

as a guarantor;

‘‘(F) has partners, all of whom are either—

‘‘(i) individuals related to each other by blood, marriage (including former marriage), or adoption; or

‘‘(ii) trusts for the primary benefit of individuals

related as described in clause (i); and

‘‘(G) has filed with the Board a statement that

includes—

‘‘(i) the basis for the eligibility of the partnership

under subparagraph (F);

‘‘(ii) a list of the existing activities and investments

of the partnership;

‘‘(iii) a commitment to comply with this paragraph;

‘‘(iv) a commitment to comply with section 7 of

the Federal Deposit Insurance Act with respect to any

acquisition of control of an insured depository institution occurring after date of enactment of this paragraph; and
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–476

‘‘(v) a commitment to be subject, to the same extent

as if the qualified family partnership were a bank

holding company—

‘‘(I) to examination by the Board to assure

compliance with this paragraph; and

‘‘(II) to section 8 of the Federal Deposit Insurance Act.’’.

SEC. 2611. COOPERATIVE EFFORTS BETWEEN DEPOSITORY INSTITUTIONS AND FARMERS AND RANCHERS IN DROUGHTSTRICKEN AREAS.

(a) FINDINGS.—The Congress hereby finds the following:

(1) Severe drought is being experienced in the Plains and

the Southwest portions of our country.

(2) Soil erosion is becoming a critical issue as the dry

season approaches and summer winds may rob these fields

of nutrient-rich topsoil.

(3) Without immediate assistance, ranchers and farmers

would be forced to cull their herds bringing tremendous volatility in the beef market.

(4) The American people will feel the impact of this drought

in their pocketbooks through higher prices for grain products.

(5) The communities in drought-stricken areas are suffering

and borrowers may have difficulty meeting their obligations

to financial institutions.

(6) Congress has already passed the Depository Institutions

Disaster Relief Act of 1992 which allows financial institutions

to make emergency exceptions to the appraisal requirement

in times of national disasters.

(b) SENSE OF THE CONGRESS.—It is the sense of the Congress

that financial institutions and Federal bank regulators should work

cooperatively with farmers and ranchers in communities affected

by drought conditions to allow financial obligations to be met without imposing undue burdens.

SEC. 2612. STREAMLINING PROCESS FOR DETERMINING NEW NONBANKING ACTIVITIES.

Section 4(c)(8) of the Bank Holding Company Act of 1956 (12

U.S.C. 1843(c)(8)) is amended by striking ‘‘and opportunity for hearing’’ and inserting the following: ‘‘(and opportunity for hearing

in the case of an acquisition of a savings association)’’.

SEC. 2613. AUTHORIZING BANK SERVICE COMPANIES TO ORGANIZE

AS LIMITED LIABILITY COMPANIES.

(a) AMENDMENT TO SHORT TITLE.—Section 1 of the Bank Service

Corporation Act (12 U.S.C. 1861(a)) is amended by striking subsection (a) and inserting the following new subsection:

‘‘(a) SHORT TITLE.—This Act may be cited as the ‘Bank Service

Company Act’.’’;

(b) AMENDMENTS TO DEFINITIONS.—Section 1(b) of the Bank

Service Corporation Act (12 U.S.C. 1861(b)) is amended—

(1) by striking paragraph (2) and inserting the following

new paragraph:

‘‘(2) the term ‘bank service company’ means—

‘‘(A) any corporation—

‘‘(i) which is organized to perform services authorized by this Act; and
110 STAT. 3009–477 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(ii) all of the capital stock of which is owned

by 1 or more insured banks; and

‘‘(B) any limited liability company—

‘‘(i) which is organized to perform services authorized by this Act; and

‘‘(ii) all of the members of which are 1 or more

insured banks.’’;

(2) in paragraph (6)—

(A) by striking ‘‘corporation’’ and inserting ‘‘company’’;

and

(B) by striking ‘‘and’’ after the semicolon;

(3) by redesignating paragraph (7) as paragraph (8) and

inserting after paragraph (6) the following new paragraph:

‘‘(7) the term ‘limited liability company’ means any company, partnership, trust, or similar business entity organized

under the law of a State (as defined in section 3 of the Federal

Deposit Insurance Act) which provides that a member or manager of such company is not personally liable for a debt, obligation, or liability of the company solely by reason of being,

or acting as, a member or manager of such company; and’’;

and

(4) in paragraph (8) (as so redesignated)—

(A) by striking ‘‘corporation’’ each place such term

appears and inserting ‘‘company’’; and

(B) by striking ‘‘capital stock’’ and inserting ‘‘equity’’.

(c) AMENDMENTS TO SECTION 2.—Section 2 of the Bank Service

Corporation Act (12 U.S.C. 1862) is amended—

(1) by striking ‘‘corporation’’ and inserting ‘‘company’’;

(2) by striking ‘‘corporations’’ and inserting ‘‘companies’’;

and

(3) in the heading for such section, by striking ‘‘CORPORATION’’ and inserting ‘‘COMPANY’’.

(d) AMENDMENTS TO SECTION 3.—Section 3 of the Bank Service

Corporation Act (12 U.S.C. 1863) is amended—

(1) by striking ‘‘corporation’’ each place such term appears

and inserting ‘‘company’’; and

(2) in the heading for such section, by striking ‘‘CORPORATION’’ and inserting ‘‘COMPANY’’.

(e) AMENDMENTS TO SECTION 4.—Section 4 of the Bank Service

Corporation Act (12 U.S.C. 1864) is amended—

(1) by striking ‘‘corporation’’ each place such term appears

and inserting ‘‘company’’;

(2) in subsection (b), by inserting ‘‘or members’’ after ‘‘shareholders’’ each place such term appears;

(3) in subsections (c) and (d), by inserting ‘‘or member’’

after ‘‘shareholder’’ each place such term appears;

(4) in subsection (e)—

(A) by inserting ‘‘or members’’ after ‘‘national bank

and State bank shareholders’’;

(B) by striking ‘‘its national bank shareholder or shareholders’’ and inserting ‘‘any shareholder or member of the

company which is a national bank’’;

(C) by striking ‘‘its State bank shareholder or shareholders’’ and inserting ‘‘any shareholder or member of the

company which is a State bank’’;

(D) by striking ‘‘such State bank or banks’’ and inserting ‘‘any such State bank’’; and
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–478

(E) by inserting ‘‘or members’’ after ‘‘State bank and

national bank shareholders’’; and

(5) in the heading for such section, by striking ‘‘CORPORA- TION’’ and inserting ‘‘COMPANY’’.

(f) AMENDMENTS TO SECTION 5.—Section 5 of the Bank Service

Corporation Act (12 U.S.C. 1865) is amended—

(1) by striking ‘‘corporation’’ each place such term appears

and inserting ‘‘company’’; and

(2) in the heading for such section, by striking ‘‘CORPORA- TIONS’’ and inserting ‘‘COMPANIES’’.

(g) AMENDMENTS TO SECTION 6.—Section 6 of the Bank Service

Corporation Act (12 U.S.C. 1866) is amended—

(1) by striking ‘‘corporation’’ each place such term appears

and inserting ‘‘company’’;

(2) by inserting ‘‘or is not a member of’’ after ‘‘does not

own stock in’’;

(3) by striking ‘‘the nonstockholding institution’’ and inserting ‘‘such depository institution’’;

(4) by inserting ‘‘or is a member of’’ after ‘‘that owns stock

in’’;

(5) in paragraphs (1) and (2), by inserting ‘‘or nonmember’’

after ‘‘nonstockholding’’; and

(6) in the heading for such section by inserting ‘‘OR NON- MEMBERS’’ after ‘‘NONSTOCKHOLDERS’’.

(h) AMENDMENTS TO SECTION 7.—Section 7 of the Bank Service

Corporation Act (12 U.S.C. 1867) is amended—

(1) by striking ‘‘corporation’’ each place such term appears

and inserting ‘‘company’’;

(2) in subsection (a)—

(A) by inserting ‘‘or principal member’’ after ‘‘principal

shareholder’’; and

(B) by inserting ‘‘or member’’ after ‘‘other shareholder’’;

and

(3) in the heading for such section, by striking ‘‘CORPORA- TIONS’’ and inserting ‘‘COMPANIES’’.

SEC. 2614. RETIREMENT CERTIFICATES OF DEPOSITS.

(a) IN GENERAL.—Section 3(l)(5) of the Federal Deposit Insurance Act (12 U.S.C. 1813(l)(5) is amended—

(1) in subparagraph (A), by striking ‘‘and’’ at the end;

(2) in subparagraph (B), by striking the period at the

end and inserting ‘‘; and’’; and

(3) by adding at the end the following new subparagraph:

‘‘(C) any liability of an insured depository institution

that arises under an annuity contract, the income of which

is tax deferred under section 72 of the Internal Revenue

Code of 1986.’’.

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

(a) shall apply to any liability of an insured depository that arises

under an annuity contract issued on or after the date of enactment

of this Act.

SEC. 2615. PROHIBITIONS ON CERTAIN DEPOSITORY INSTITUTION

ASSOCIATIONS WITH GOVERNMENT-SPONSORED ENTERPRISES.

(a) CREDIT UNIONS.—Section 201 of the Federal Credit Union

Act (12 U.S.C. 1781) is amended by adding at the end the following

new subsection:

12 USC 1813

note.
110 STAT. 3009–479 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(e) PROHIBITION ON CERTAIN ASSOCIATIONS.—

‘‘(1) IN GENERAL.—No insured credit union may be sponsored by or accept financial support, directly or indirectly, from

any Government-sponsored enterprise, if the credit union

includes the customers of the Government-sponsored enterprise

in the field of membership of the credit union.

‘‘(2) ROUTINE BUSINESS FINANCING.—Paragraph (1) shall

not apply with respect to advances or other forms of financial

assistance generally provided by a Government-sponsored

enterprise in the ordinary course of business of the enterprise.

‘‘(3) GOVERNMENT-SPONSORED ENTERPRISE DEFINED.—For

purposes of this subsection, the term ‘Government-sponsored

enterprise’ has the meaning given to such term in section

1404(e)(1)(A) of the Financial Institutions Reform, Recovery,

and Enforcement Act of 1989.

‘‘(4) EMPLOYEE CREDIT UNION.—No provision of this subsection shall be construed as prohibiting any employee of a

Government-sponsored enterprise from becoming a member of

a credit union whose field of membership is the employees

of such enterprise.’’.

(b) BANKS AND SAVINGS ASSOCIATIONS.—Section 18 of the Federal Deposit Insurance Act (12 U.S.C. 1828) is amended by adding

at the end the following new subsection:

‘‘(s) PROHIBITION ON CERTAIN AFFILIATIONS.—

‘‘(1) IN GENERAL.—No depository institution may be an

affiliate of, be sponsored by, or accept financial support, directly

or indirectly, from any Government-sponsored enterprise.

‘‘(2) EXCEPTION FOR MEMBERS OF A FEDERAL HOME LOAN

BANK.—Paragraph (1) shall not apply with respect to the membership of a depository institution in a Federal home loan

bank.

‘‘(3) ROUTINE BUSINESS FINANCING.—Paragraph (1) shall

not apply with respect to advances or other forms of financial

assistance provided by a Government-sponsored enterprise

pursuant to the statutes governing such enterprise.

‘‘(4) GOVERNMENT-SPONSORED ENTERPRISE DEFINED.—For

purposes of this subsection, the term ‘Government-sponsored

enterprise’ has the meaning given to such term in section

1404(e)(1)(A) of the Financial Institutions Reform, Recovery,

and Enforcement Act of 1989.’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply on and after January 1, 1996.

Subtitle G—Deposit Insurance Funds

SEC. 2701. SHORT TITLE.

This subtitle may be cited as the ‘‘Deposit Insurance Funds

Act of 1996’’.

SEC. 2702. SPECIAL ASSESSMENT TO CAPITALIZE SAIF.

(a) IN GENERAL.—Except as provided in subsection (f), the

Board of Directors of the Federal Deposit Insurance Corporation

shall impose a special assessment on the SAIF-assessable deposits

of each insured depository institution in accordance with assessment

regulations of the Corporation at a rate applicable to all such

12 USC 1817

note.

12 USC 1811

note.

Deposit

Insurance Funds

Act of 1996.

12 USC 1781

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–480

institutions that the Board of Directors, in its sole discretion, determines (after taking into account the adjustments described in subsections (g), (h), and (j)) will cause the Savings Association Insurance Fund to achieve the designated reserve ratio on the first

business day of the 1st month beginning after the date of the

enactment of this Act.

(b) FACTORS TO BE CONSIDERED.—In carrying out subsection

(a), the Board of Directors shall base its determination on—

(1) the monthly Savings Association Insurance Fund balance most recently calculated;

(2) data on insured deposits reported in the most recent

reports of condition filed not later than 70 days before the

date of enactment of this Act by insured depository institutions;

and

(3) any other factors that the Board of Directors deems

appropriate.

(c) DATE OF DETERMINATION.—For purposes of subsection (a),

the amount of the SAIF-assessable deposits of an insured depository

institution shall be determined as of March 31, 1995.

(d) DATE PAYMENT DUE.—Except as provided in subsection

(g), the special assessment imposed under this section shall be—

(1) due on the first business day of the 1st month beginning

after the date of the enactment of this Act; and

(2) paid to the Corporation on the later of—

(A) the first business day of the 1st month beginning

after such date of enactment; or

(B) such other date as the Corporation shall prescribe,

but not later than 60 days after the date of enactment

of this Act.

(e) ASSESSMENT DEPOSITED IN SAIF.—Notwithstanding any

other provision of law, the proceeds of the special assessment

imposed under this section shall be deposited in the Savings

Association Insurance Fund.

(f) EXEMPTIONS FOR CERTAIN INSTITUTIONS.—

(1) EXEMPTION FOR WEAK INSTITUTIONS.—The Board of

Directors may, by order, in its sole discretion, exempt any

insured depository institution that the Board of Directors determines to be weak, from paying the special assessment imposed

under this section if the Board of Directors determines that

the exemption would reduce risk to the Savings Association

Insurance Fund.

(2) GUIDELINES REQUIRED.—Not later than 30 days after

the date of enactment of this Act, the Board of Directors shall

prescribe guidelines setting forth the criteria that the Board

of Directors will use in exempting institutions under paragraph

(1). Such guidelines shall be published in the Federal Register.

(3) EXEMPTION FOR CERTAIN NEWLY CHARTERED AND OTHER

DEFINED INSTITUTIONS.—

(A) IN GENERAL.—In addition to the institutions

exempted from paying the special assessment under paragraph (1), the Board of Directors shall exempt any insured

depository institution from payment of the special assessment if the institution—

(i) was in existence on October 1, 1995, and held

no SAIF-assessable deposits before January 1, 1993;

(ii) is a Federal savings bank which—
110 STAT. 3009–481 PUBLIC LAW 104–208—SEPT. 30, 1996

(I) was established de novo in April 1994 in

order to acquire the deposits of a savings association which was in default or in danger of default;

and

(II) received minority interim capital assistance from the Resolution Trust Corporation under

section 21A(w) of the Federal Home Loan Bank

Act in connection with the acquisition of any such

savings association; or

(iii) is a savings association, the deposits of which

are insured by the Savings Association Insurance

Fund, which—

(I) before January 1, 1987, was chartered as

a Federal savings bank insured by the Federal

Savings and Loan Insurance Corporation for the

purpose of acquiring all or substantially all of the

assets and assuming all or substantially all of

the deposit liabilities of a national bank in a transaction consummated after July 1, 1986; and

(II) as of the date of that transaction, had

assets of less than $150,000,000.

(B) DEFINITION.—For purposes of this paragraph, an

institution shall be deemed to have held SAIF-assessable

deposits before January 1, 1993, if—

(i) it directly held SAIF-assessable deposits before

that date; or

(ii) it succeeded to, acquired, purchased, or otherwise holds any SAIF-assessable deposits as of the date

of enactment of this Act that were SAIF-assessable

deposits before January 1, 1993.

(4) EXEMPT INSTITUTIONS REQUIRED TO PAY ASSESSMENTS

AT FORMER RATES.—

(A) PAYMENTS TO SAIF AND DIF.—Any insured depository institution that the Board of Directors exempts under

this subsection from paying the special assessment imposed

under this section shall pay semiannual assessments—

(i) during calendar years 1996, 1997, and 1998,

into the Savings Association Insurance Fund, based

on SAIF-assessable deposits of that institution, at

assessment rates calculated under the schedule in

effect for Savings Association Insurance Fund members

on June 30, 1995; and

(ii) during calendar year 1999—

(I) into the Deposit Insurance Fund, based

on SAIF-assessable deposits of that institution as

of December 31, 1998, at assessment rates calculated under the schedule in effect for Savings

Association Insurance Fund members on June 30,

1995; or

(II) in accordance with clause (i), if the Bank

Insurance Fund and the Savings Association Insurance Fund are not merged into the Deposit Insurance Fund.

(B) OPTIONAL PRO RATA PAYMENT OF SPECIAL ASSESSMENT.—This paragraph shall not apply with respect to

any insured depository institution (or successor insured

depository institution) that has paid, during any calendar
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–482

year from 1997 through 1999, upon such terms as the

Corporation may announce, an amount equal to the product

of—

(i) 16.7 percent of the special assessment that the

institution would have been required to pay under

subsection (a), if the Board of Directors had not

exempted the institution; and

(ii) the number of full semiannual periods remaining between the date of the payment and December

31, 1999.

(g) SPECIAL ELECTION FOR CERTAIN INSTITUTIONS FACING HARDSHIP AS A RESULT OF THE SPECIAL ASSESSMENT.—

(1) ELECTION AUTHORIZED.—If—

(A) an insured depository institution, or any depository

institution holding company which, directly or indirectly,

controls such institution, is subject to terms or covenants

in any debt obligation or preferred stock outstanding on

September 13, 1995; and

(B) the payment of the special assessment under subsection (a) would pose a significant risk of causing such

depository institution or holding company to default or

violate any such term or covenant,

the depository institution may elect, with the approval of the

Corporation, to pay such special assessment in accordance with

paragraphs (2) and (3) in lieu of paying such assessment in

the manner required under subsection (a).

(2) 1ST ASSESSMENT.—An insured depository institution

which makes an election under paragraph (1) shall pay an

assessment in an amount equal to 50 percent of the amount

of the special assessment that would otherwise apply under

subsection (a), by the date on which such special assessment

is payable under subsection (d).

(3) 2D ASSESSMENT.—An insured depository institution

which makes an election under paragraph (1) shall pay a 2d

assessment, by the date established by the Board of Directors

in accordance with paragraph (4), in an amount equal to the

product of 51 percent of the rate determined by the Board

of Directors under subsection (a) for determining the amount

of the special assessment and the SAIF-assessable deposits

of the institution on March 31, 1996, or such other date in

calendar year 1996 as the Board of Directors determines to

be appropriate.

(4) DUE DATE OF 2D ASSESSMENT.—The date established

by the Board of Directors for the payment of the assessment

under paragraph (3) by a depository institution shall be the

earliest practicable date which the Board of Directors determines to be appropriate, which is at least 15 days after the

date used by the Board of Directors under paragraph (3).

(5) SUPPLEMENTAL SPECIAL ASSESSMENT.—An insured

depository institution which makes an election under paragraph

(1) shall pay a supplemental special assessment, at the same

time the payment under paragraph (3) is made, in an amount

equal to the product of—

(A) 50 percent of the rate determined by the Board

of Directors under subsection (a) for determining the

amount of the special assessment; and
110 STAT. 3009–483 PUBLIC LAW 104–208—SEPT. 30, 1996

(B) 95 percent of the amount by which the SAIFassessable deposits used by the Board of Directors for

determining the amount of the 1st assessment under paragraph (2) exceeds, if any, the SAIF-assessable deposits

used by the Board for determining the amount of the

2d assessment under paragraph (3).

(h) ADJUSTMENT OF SPECIAL ASSESSMENT FOR CERTAIN BANK

INSURANCE FUND MEMBER BANKS.—

(1) IN GENERAL.—For purposes of computing the special

assessment imposed under this section with respect to a Bank

Insurance Fund member bank, the amount of any deposits

of any insured depository institution which section 5(d)(3) of

the Federal Deposit Insurance Act treats as insured by the

Savings Association Insurance Fund shall be reduced by 20

percent—

(A) if the adjusted attributable deposit amount of the

Bank Insurance Fund member bank is less than 50 percent

of the total domestic deposits of that member bank as

of June 30, 1995; or

(B) if, as of June 30, 1995, the Bank Insurance Fund

member—

(i) had an adjusted attributable deposit amount

equal to less than 75 percent of the total assessable

deposits of that member bank;

(ii) had total assessable deposits greater than

$5,000,000,000; and

(iii) was owned or controlled by a bank holding

company that owned or controlled insured depository

institutions having an aggregate amount of deposits

insured or treated as insured by the Bank Insurance

Fund greater than the aggregate amount of deposits

insured or treated as insured by the Savings Association Insurance Fund.

(2) ADJUSTED ATTRIBUTABLE DEPOSIT AMOUNT.—For purposes of this subsection, the ‘‘adjusted attributable deposit

amount’’ shall be determined in accordance with section

5(d)(3)(C) of the Federal Deposit Insurance Act.

(i) ADJUSTMENT TO THE ADJUSTED ATTRIBUTABLE DEPOSIT

AMOUNT FOR CERTAIN BANK INSURANCE FUND MEMBER BANKS.—

Section 5(d)(3) of the Federal Deposit Insurance Act (12 U.S.C.

1815(d)(3)) is amended—

(1) in subparagraph (C), by striking ‘‘The adjusted attributable deposit amount’’ and inserting ‘‘Except as provided in

subparagraph (K), the adjusted attributable deposit amount’’;

and

(2) by adding at the end the following new subparagraph:

‘‘(K) ADJUSTMENT OF ADJUSTED ATTRIBUTABLE DEPOSIT

AMOUNT.—The amount determined under subparagraph

(C)(i) for deposits acquired by March 31, 1995, shall be

reduced by 20 percent for purposes of computing the

adjusted attributable deposit amount for the payment of

any assessment for any semiannual period that begins

after the date of the enactment of the Deposit Insurance

Funds Act of 1996 (other than the special assessment

imposed under section 2702(a) of such Act), for a Bank

Insurance Fund member bank that, as of June 30, 1995—
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–484

‘‘(i) had an adjusted attributable deposit amount

that was less than 50 percent of the total deposits

of that member bank; or

‘‘(ii)(I) had an adjusted attributable deposit amount

equal to less than 75 percent of the total assessable

deposits of that member bank;

‘‘(II) had total assessable deposits greater than

$5,000,000,000; and

‘‘(III) was owned or controlled by a bank holding

company that owned or controlled insured depository

institutions having an aggregate amount of deposits

insured or treated as insured by the Bank Insurance

Fund greater than the aggregate amount of deposits

insured or treated as insured by the Savings Association Insurance Fund.’’.

(j) ADJUSTMENT OF SPECIAL ASSESSMENT FOR CERTAIN SAVINGS

ASSOCIATIONS.—

(1) SPECIAL ASSESSMENT REDUCTION.—For purposes of

computing the special assessment imposed under this section,

in the case of any converted association, the amount of any

deposits of such association which were insured by the Savings

Association Insurance Fund as of March 31, 1995, shall be

reduced by 20 percent.

(2) CONVERTED ASSOCIATION.—For purposes of this subsection, the term ‘‘converted association’’ means—

(A) any Federal savings association—

(i) that is a member of the Savings Association

Insurance Fund and that has deposits subject to assessment by that fund which did not exceed $4,000,000,000,

as of March 31, 1995; and

(ii) that had been, or is a successor by merger,

acquisition, or otherwise to an institution that had

been, a State savings bank, the deposits of which were

insured by the Federal Deposit Insurance Corporation

before August 9, 1989, that converted to a Federal

savings association pursuant to section 5(i) of the Home

Owners’ Loan Act before January 1, 1985;

(B) a State depository institution that is a member

of the Savings Association Insurance Fund that had been

a State savings bank before October 15, 1982, and was

a Federal savings association on August 9, 1989;

(C) an insured bank that—

(i) was established de novo in order to acquire

the deposits of a savings association in default or in

danger of default;

(ii) did not open for business before acquiring the

deposits of such savings association; and

(iii) was a Savings Association Insurance Fund

member before the date of enactment of this Act; and

(D) an insured bank that—

(i) resulted from a savings association before

December 19, 1991, in accordance with section

5(d)(2)(G) of the Federal Deposit Insurance Act; and

(ii) had an increase in its capital in conjunction

with the conversion in an amount equal to more than

75 percent of the capital of the institution on the

day before the date of the conversion.
110 STAT. 3009–485 PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 2703. FINANCING CORPORATION FUNDING.

(a) IN GENERAL.—Section 21 of the Federal Home Loan Bank

Act (12 U.S.C. 1441) is amended—

(1) in subsection (f)(2)—

(A) in the matter immediately preceding subparagraph

(A)—

(i) by striking ‘‘To the extent the amounts available

pursuant to paragraph (1) are insufficient to cover

the amount of interest payments, issuance costs, and

custodial fees,’’ and inserting ‘‘In addition to the

amounts obtained pursuant to paragraph (1),’’;

(ii) by striking ‘‘Savings Association Insurance

Fund member’’ and inserting ‘‘insured depository

institution’’; and

(iii) by striking ‘‘members’’ and inserting ‘‘institutions’’; and

(B) by striking ‘‘, except that—’’ and all that follows

through the end of the paragraph and inserting ‘‘, except

that—

‘‘(A) the assessments imposed on insured depository

institutions with respect to any BIF-assessable deposit

shall be assessed at a rate equal to 1⁄5 of the rate of

the assessments imposed on insured depository institutions

with respect to any SAIF-assessable deposit; and

‘‘(B) no limitation under clause (i) or (iii) of section

7(b)(2)(A) of the Federal Deposit Insurance Act shall apply

for purposes of this paragraph.’’; and

(2) in subsection (k)—

(A) by striking ‘‘section—’’ and inserting ‘‘section, the

following definitions shall apply:’’;

(B) by striking paragraph (1);

(C) by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively; and

(D) by adding at the end the following new paragraphs:

‘‘(3) INSURED DEPOSITORY INSTITUTION.—The term ‘insured

depository institution’ has the same meaning as in section

3 of the Federal Deposit Insurance Act

‘‘(4) DEPOSIT TERMS.—

‘‘(A) BIF-ASSESSABLE DEPOSITS.—The term ‘BIF-assessable deposit’ means a deposit that is subject to assessment

for purposes of the Bank Insurance Fund under the Federal

Deposit Insurance Act (including a deposit that is treated

as a deposit insured by the Bank Insurance Fund under

section 5(d)(3) of the Federal Deposit Insurance Act).

‘‘(B) SAIF-ASSESSABLE DEPOSIT.—The term ‘SAIFassessable deposit’ has the meaning given to such term

in section 2710 of the Deposit Insurance Funds Act of

1996.’’.

(b) CONFORMING AMENDMENT.—Section 7(b)(2) of the Federal

Deposit Insurance Act (12 U.S.C. 1817(b)(2)) is amended by striking

subparagraph (D).

(c) EFFECTIVE DATE.—

(1) IN GENERAL.—Subsections (a) and (c) and the amendments made by such subsections shall apply with respect to

semiannual periods which begin after December 31, 1996.

(2) TERMINATION OF CERTAIN ASSESSMENT RATES.—

Subparagraph (A) of section 21(f)(2) of the Federal Home Loan

12 USC 1441

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–486

Bank Act (as amended by subsection (a)) shall not apply after

the earlier of—

(A) December 31, 1999; or

(B) the date as of which the last savings association

ceases to exist.

(d) PROHIBITION ON DEPOSIT SHIFTING.—

(1) IN GENERAL.—Effective as of the date of the enactment

of this Act and ending on the date provided in subsection

(c)(2) of this section, the Comptroller of the Currency, the

Board of Directors of the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System,

and the Director of the Office of Thrift Supervision shall take

appropriate actions, including enforcement actions, denial of

applications, or imposition of entrance and exit fees as if such

transactions qualified as conversion transactions pursuant to

section 5(d) of the Federal Deposit Insurance Act, to prevent

insured depository institutions and depository institution holding companies from facilitating or encouraging the shifting

of deposits from SAIF-assessable deposits to BIF-assessable

deposits (as defined in section 21(k) of the Federal Home Loan

Bank Act) for the purpose of evading the assessments imposed

on insured depository institutions with respect to SAIF-assessable deposits under section 7(b) of the Federal Deposit Insurance Act and section 21(f)(2) of the Federal Home Loan Bank

Act.

(2) REGULATIONS.—The Board of Directors of the Federal

Deposit Insurance Corporation may issue regulations, including

regulations defining terms used in paragraph (1), to prevent

the shifting of deposits described in such paragraph.

(3) RULE OF CONSTRUCTION.—No provision of this subsection shall be construed as prohibiting conduct or activity

of any insured depository institution which—

(A) is undertaken in the ordinary course of business

of such depository institution; and

(B) is not directed towards the depositors of an insured

depository institution affiliate (as defined in section 2(k)

of the Bank Holding Company Act of 1956) of such depository institution.

SEC. 2704. MERGER OF BIF AND SAIF.

(a) IN GENERAL.—

(1) MERGER.—The Bank Insurance Fund and the Savings

Association Insurance Fund shall be merged into the Deposit

Insurance Fund established by section 11(a)(4) of the Federal

Deposit Insurance Act, as amended by this section.

(2) DISPOSITION OF ASSETS AND LIABILITIES.—All assets and

liabilities of the Bank Insurance Fund and the Savings Association Insurance Fund shall be transferred to the Deposit Insurance Fund.

(3) NO SEPARATE EXISTENCE.—The separate existence of

the Bank Insurance Fund and the Savings Association Insurance Fund shall cease.

(b) SPECIAL RESERVE OF THE DEPOSIT INSURANCE FUND.—

(1) IN GENERAL.—Immediately before the merger of the

Bank Insurance Fund and the Savings Association Insurance

Fund, if the reserve ratio of the Savings Association Insurance

Fund exceeds the designated reserve ratio, the amount by which

12 USC 1821

note.

12 USC 1821

note.

12 USC 1441

note.
110 STAT. 3009–487 PUBLIC LAW 104–208—SEPT. 30, 1996

that reserve ratio exceeds the designated reserve ratio shall

be placed in the Special Reserve of the Deposit Insurance

Fund, established under section 11(a)(5) of the Federal Deposit

Insurance Act, as amended by this section.

(2) DEFINITION.—For purposes of this subsection, the term

‘‘reserve ratio’’ means the ratio of the net worth of the Savings

Association Insurance Fund to the aggregate estimated amount

of deposits insured by the Savings Association Insurance Fund.

(c) EFFECTIVE DATE.—This section and the amendments made

by this section shall become effective on January 1, 1999, if no

insured depository institution is a savings association on that date.

(d) TECHNICAL AND CONFORMING AMENDMENTS.—

(1) DEPOSIT INSURANCE FUND.—Section 11(a)(4) of the Federal Deposit Insurance Act (12 U.S.C. 1821(a)(4)) is amended—

(A) by redesignating subparagraph (B) as subparagraph (C);

(B) by striking subparagraph (A) and inserting the

following:

‘‘(A) ESTABLISHMENT.—There is established the Deposit

Insurance Fund, which the Corporation shall—

‘‘(i) maintain and administer;

‘‘(ii) use to carry out its insurance purposes in

the manner provided by this subsection; and

‘‘(iii) invest in accordance with section 13(a).

‘‘(B) USES.—The Deposit Insurance Fund shall be available to the Corporation for use with respect to Deposit

Insurance Fund members.’’; and

(C) by striking ‘‘(4) GENERAL PROVISIONS RELATING TO

FUNDS.—’’ and inserting the following:

‘‘(4) ESTABLISHMENT OF THE DEPOSIT INSURANCE FUND.—

’’.

(2) OTHER REFERENCES.—Section 11(a)(4)(C) of the Federal

Deposit Insurance Act (12 U.S.C. 1821(a)(4)(C), as redesignated

by paragraph (1) of this subsection) is amended by striking

‘‘Bank Insurance Fund and the Savings Association Insurance

Fund’’ and inserting ‘‘Deposit Insurance Fund’’.

(3) DEPOSITS INTO FUND.—Section 11(a)(4) of the Federal

Deposit Insurance Act (12 U.S.C. 1821(a)(4)) is amended by

adding at the end the following new subparagraph:

‘‘(D) DEPOSITS.—All amounts assessed against insured

depository institutions by the Corporation shall be deposited in the Deposit Insurance Fund.’’.

(4) SPECIAL RESERVE OF DEPOSITS.—Section 11(a)(5) of the

Federal Deposit Insurance Act (12 U.S.C. 1821(a)(5)) is amended to read as follows:

‘‘(5) SPECIAL RESERVE OF DEPOSIT INSURANCE FUND.—

‘‘(A) ESTABLISHMENT.—

‘‘(i) IN GENERAL.—There is established a Special

Reserve of the Deposit Insurance Fund, which shall

be administered by the Corporation and shall be

invested in accordance with section 13(a).

‘‘(ii) LIMITATION.—The Corporation shall not provide any assessment credit, refund, or other payment

from any amount in the Special Reserve.

‘‘(B) EMERGENCY USE OF SPECIAL RESERVE.—Notwithstanding subparagraph (A)(ii), the Corporation may, in its

sole discretion, transfer amounts from the Special Reserve

12 USC 1821

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–488

to the Deposit Insurance Fund, for the purposes set forth

in paragraph (4), only if—

‘‘(i) the reserve ratio of the Deposit Insurance Fund

is less than 50 percent of the designated reserve ratio;

and

‘‘(ii) the Corporation expects the reserve ratio of

the Deposit Insurance Fund to remain at less than

50 percent of the designated reserve ratio for each

of the next 4 calendar quarters.

‘‘(C) EXCLUSION OF SPECIAL RESERVE IN CALCULATING

RESERVE RATIO.—Notwithstanding any other provision of

law, any amounts in the Special Reserve shall be excluded

in calculating the reserve ratio of the Deposit Insurance

Fund under section 7.’’.

(5) FEDERAL HOME LOAN BANK ACT.—Section 21B(f)(2)(C)(ii)

of the Federal Home Loan Bank Act (12 U.S.C.

1441b(f)(2)(C)(ii)) is amended—

(A) in subclause (I), by striking ‘‘to Savings Associations Insurance Fund members’’ and inserting ‘‘to insured

depository institutions, and their successors, which were

Savings Association Insurance Fund members on September 1, 1995’’; and

(B) in subclause (II), by striking ‘‘to Savings Associations Insurance Fund members’’ and inserting ‘‘to insured

depository institutions, and their successors, which were

Savings Association Insurance Fund members on September 1, 1995’’.

(6) REPEALS.—

(A) SECTION 3.—Section 3(y) of the Federal Deposit

Insurance Act (12 U.S.C. 1813(y)) is amended to read as

follows:

‘‘(y) DEFINITIONS RELATING TO THE DEPOSIT INSURANCE FUND.—

‘‘(1) DEPOSIT INSURANCE FUND.—The term ‘Deposit Insurance Fund’ means the fund established under section 11(a)(4).

‘‘(2) RESERVE RATIO.—The term ‘reserve ratio’ means the

ratio of the net worth of the Deposit Insurance Fund to aggregate estimated insured deposits held in all insured depository

institutions.

‘‘(3) DESIGNATED RESERVE RATIO.—The designated reserve

ratio of the Deposit Insurance Fund for each year shall be—

‘‘(A) 1.25 percent of estimated insured deposits; or

‘‘(B) a higher percentage of estimated insured deposits

that the Board of Directors determines to be justified for

that year by circumstances raising a significant risk of

substantial future losses to the fund.’’

(B) SECTION 7.—Section 7 of the Federal Deposit Insurance Act (12 U.S.C. 1817) is amended—

(i) by striking subsection (l);

(ii) by redesignating subsections (m) and (n) as

subsections (l) and (m), respectively;

(iii) in subsection (b)(2), by striking subparagraphs

(B) and (F), and by redesignating subparagraphs (C),

(E), (G), and (H) as subparagraphs (B) through (E),

respectively.

(C) SECTION 11.—Section 11(a) of the Federal Deposit

Insurance Act (12 U.S.C. 1821(a)) is amended—

(i) by striking paragraphs (6) and (7); and
110 STAT. 3009–489 PUBLIC LAW 104–208—SEPT. 30, 1996

(ii) by redesignating paragraph (8) as paragraph

(6).

(7) SECTION 5136 OF THE REVISED STATUTES.—The paragraph designated the ‘‘Eleventh’’ of section 5136 of the Revised

Statutes of the United States (12 U.S.C. 24) is amended in

the 5th sentence, by striking ‘‘affected deposit insurance fund’’

and inserting ‘‘Deposit Insurance Fund’’.

(8) INVESTMENTS PROMOTING PUBLIC WELFARE; LIMITATIONS

ON AGGREGATE INVESTMENTS.—The 23d undesignated paragraph of section 9 of the Federal Reserve Act (12 U.S.C. 338a)

is amended in the 4th sentence, by striking ‘‘affected deposit

insurance fund’’ and inserting ‘‘Deposit Insurance Fund’’.

(9) ADVANCES TO CRITICALLY UNDERCAPITALIZED DEPOSITORY INSTITUTIONS.—Section 10B(b)(3)(A)(ii) of the Federal

Reserve Act (12 U.S.C. 347b(b)(3)(A)(ii)) is amended by striking

‘‘any deposit insurance fund in’’ and inserting ‘‘the Deposit

Insurance Fund of’’.

(10) AMENDMENTS TO THE BALANCED BUDGET AND EMERGENCY DEFICIT CONTROL ACT OF 1985.—Section 255(g)(1)(A) of

the Balanced Budget and Emergency Deficit Control Act of

1985 (2 U.S.C. 905(g)(1)(A)) is amended—

(A) by striking ‘‘Bank Insurance Fund’’ and inserting

‘‘Deposit Insurance Fund’’; and

(B) by striking ‘‘Federal Deposit Insurance Corporation,

Savings Association Insurance Fund;’’.

(11) FURTHER AMENDMENTS TO THE FEDERAL HOME LOAN

BANK ACT.—The Federal Home Loan Bank Act (12 U.S.C. 1421

et seq.) is amended—

(A) in section 11(k) (12 U.S.C. 1431(k))—

(i) in the subsection heading, by striking ‘‘SAIF’’

and inserting ‘‘THE DEPOSIT INSURANCE FUND’’; and

(ii) by striking ‘‘Savings Association Insurance

Fund’’ each place such term appears and inserting

‘‘Deposit Insurance Fund’’;

(B) in section 21A(b)(4)(B) (12 U.S.C. 1441a(b)(4)(B)),

by striking ‘‘affected deposit insurance fund’’ and inserting

‘‘Deposit Insurance Fund’’;

(C) in section 21A(b)(6)(B) (12 U.S.C. 1441a(b)(6)(B))—

(i) in the subparagraph heading, by striking ‘‘SAIFINSURED BANKS’’ and inserting ‘‘CHARTER CONVERSIONS’’; and

(ii) by striking ‘‘Savings Association Insurance

Fund member’’ and inserting ‘‘savings association’’;

(D) in section 21A(b)(10)(A)(iv)(II) (12 U.S.C.

1441a(b)(10)(A)(iv)(II)), by striking ‘‘Savings Association

Insurance Fund’’ and inserting ‘‘Deposit Insurance Fund’’;

(E) in section 21B(e) (12 U.S.C. 1441b(e))—

(i) in paragraph (5), by inserting ‘‘as of the date

of funding’’ after ‘‘Savings Association Insurance Fund

members’’ each place such term appears;

(ii) by striking paragraph (7); and

(iii) by redesignating paragraph (8) as paragraph

(7); and

(F) in section 21B(k) (12 U.S.C. 1441b(k))—

(i) by striking paragraph (8); and

(ii) by redesignating paragraphs (9) and (10) as

paragraphs (8) and (9), respectively.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–490

(12) AMENDMENTS TO THE HOME OWNERS’ LOAN ACT.—The

Home Owners’ Loan Act (12 U.S.C. 1461 et seq.) is amended—

(A) in section 5—

(i) in subsection (c)(5)(A), by striking ‘‘that is a

member of the Bank Insurance Fund’’;

(ii) in subsection (c)(6), by striking ‘‘As used in

this subsection—’’ and inserting ‘‘For purposes of this

subsection, the following definitions shall apply:’’;

(iii) in subsection (o)(1), by striking ‘‘that is a Bank

Insurance Fund member’’;

(iv) in subsection (o)(2)(A), by striking ‘‘a Bank

Insurance Fund member until such time as it changes

its status to a Savings Association Insurance Fund

member’’ and inserting ‘‘insured by the Deposit Insurance Fund’’;

(v) in subsection (t)(5)(D)(iii)(II), by striking

‘‘affected deposit insurance fund’’ and inserting

‘‘Deposit Insurance Fund’’;

(vi) in subsection (t)(7)(C)(i)(I), by striking ‘‘affected

deposit insurance fund’’ and inserting ‘‘Deposit Insurance Fund’’; and

(vii) in subsection (v)(2)(A)(i), by striking ‘‘, the

Savings Association Insurance Fund’’ and inserting ‘‘or

the Deposit Insurance Fund’’; and

(B) in section 10—

(i) in subsection (e)(1)(A)(iii)(VII), by adding ‘‘or’’

at the end;

(ii) in subsection (e)(1)(A)(iv), by adding ‘‘and’’ at

the end;

(iii) in subsection (e)(1)(B), by striking ‘‘Savings

Association Insurance Fund or Bank Insurance Fund’’

and inserting ‘‘Deposit Insurance Fund’’;

(iv) in subsection (e)(2), by striking ‘‘Savings

Association Insurance Fund or the Bank Insurance

Fund’’ and inserting ‘‘Deposit Insurance Fund’’; and

(v) in subsection (m)(3), by striking subparagraph

(E), and by redesignating subparagraphs (F), (G), and

(H) as subparagraphs (E), (F), and (G), respectively.

(13) AMENDMENTS TO THE NATIONAL HOUSING ACT.—The

National Housing Act (12 U.S.C. 1701 et seq.) is amended—

(A) in section 317(b)(1)(B) (12 U.S.C. 1723i(b)(1)(B)),

by striking ‘‘Bank Insurance Fund for banks or through

the Savings Association Insurance Fund for savings

associations’’ and inserting ‘‘Deposit Insurance Fund’’; and

(B) in section 526(b)(1)(B)(ii) (12 U.S.C. 1735f–

14(b)(1)(B)(ii)), by striking ‘‘Bank Insurance Fund for banks

and through the Savings Association Insurance Fund for

savings associations’’ and inserting ‘‘Deposit Insurance

Fund’’.

(14) FURTHER AMENDMENTS TO THE FEDERAL DEPOSIT

INSURANCE ACT.—The Federal Deposit Insurance Act (12 U.S.C.

1811 et seq.) is amended—

(A) in section 3(a)(1) (12 U.S.C. 1813(a)(1)), by striking

subparagraph (B) and inserting the following:

‘‘(B) includes any former savings association.’’;

12 USC 1467a.

12 USC 1464.
110 STAT. 3009–491 PUBLIC LAW 104–208—SEPT. 30, 1996

(B) in section 5(b)(5) (12 U.S.C. 1815(b)(5)), by striking

‘‘the Bank Insurance Fund or the Savings Association

Insurance Fund;’’ and inserting ‘‘Deposit Insurance Fund,’’;

(C) in section 5(d) (12 U.S.C. 1815(d)), by striking

paragraphs (2) and (3);

(D) in section 5(d)(1) (12 U.S.C. 1815(d)(1))—

(i) in subparagraph (A), by striking ‘‘reserve ratios

in the Bank Insurance Fund and the Savings Association Insurance Fund’’ and inserting ‘‘the reserve ratio

of the Deposit Insurance Fund’’;

(ii) by striking subparagraph (B) and inserting

the following:

‘‘(2) FEE CREDITED TO THE DEPOSIT INSURANCE FUND.—

The fee paid by the depository institution under paragraph

(1) shall be credited to the Deposit Insurance Fund.’’;

(iii) by striking ‘‘(1) UNINSURED INSTITUTIONS.—

’’; and

(iv) by redesignating subparagraphs (A) and (C)

as paragraphs (1) and (3), respectively, and moving

the margins 2 ems to the left;

(E) in section 5(e) (12 U.S.C. 1815(e))—

(i) in paragraph (5)(A), by striking ‘‘Bank Insurance Fund or the Savings Association Insurance Fund’’

and inserting ‘‘Deposit Insurance Fund’’;

(ii) by striking paragraph (6); and

(iii) by redesignating paragraphs (7), (8), and (9)

as paragraphs (6), (7), and (8), respectively;

(F) in section 6(5) (12 U.S.C. 1816(5)), by striking

‘‘Bank Insurance Fund or the Savings Association Insurance Fund’’ and inserting ‘‘Deposit Insurance Fund’’;

(G) in section 7(b) (12 U.S.C. 1817(b))—

(i) in paragraph (1)(D), by striking ‘‘each deposit

insurance fund’’ and inserting ‘‘the Deposit Insurance

Fund’’;

(ii) in clauses (i)(I) and (iv) of paragraph (2)(A),

by striking ‘‘each deposit insurance fund’’ each place

such term appears and inserting ‘‘the Deposit Insurance Fund’’;

(iii) in paragraph (2)(A)(iii), by striking ‘‘a deposit

insurance fund’’ and inserting ‘‘the Deposit Insurance

Fund’’;

(iv) by striking clause (iv) of paragraph (2)(A);

(v) in paragraph (2)(C) (as redesignated by paragraph (6)(B) of this subsection)—

(I) by striking ‘‘any deposit insurance fund’’

and inserting ‘‘the Deposit Insurance Fund’’; and

(II) by striking ‘‘that fund’’ each place such

term appears and inserting ‘‘the Deposit Insurance

Fund’’;

(vi) in paragraph (2)(D) (as redesignated by paragraph (6)(B) of this subsection)—

(I) in the subparagraph heading, by striking

‘‘FUNDS ACHIEVE’’ and inserting ‘‘FUND ACHIEVES’’;

and

(II) by striking ‘‘a deposit insurance fund’’ and

inserting ‘‘the Deposit Insurance Fund’’;

(vii) in paragraph (3)—
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–492

(I) in the paragraph heading, by striking ‘‘FUNDS’’ and inserting ‘‘FUND’’;

(II) by striking ‘‘members of that fund’’ where

such term appears in the portion of subparagraph

(A) which precedes clause (i) of such subparagraph

and inserting ‘‘insured depository institutions’’;

(III) by striking ‘‘that fund’’ each place such

term appears (other than in connection with term

amended in subclause (II) of this clause) and

inserting ‘‘the Deposit Insurance Fund’’;

(IV) in subparagraph (A), by striking ‘‘Except

as provided in paragraph (2)(F), if’’ and inserting

‘‘If’’;

(V) in subparagraph (A), by striking ‘‘any

deposit insurance fund’’ and inserting ‘‘the Deposit

Insurance Fund’’; and

(VI) by striking subparagraphs (C) and (D)

and inserting the following:

‘‘(C) AMENDING SCHEDULE.—The Corporation may, by

regulation, amend a schedule prescribed under subparagraph (B).’’; and

(viii) in paragraph (6)—

(I) by striking ‘‘any such assessment’’ and

inserting ‘‘any such assessment is necessary’’;

(II) by striking ‘‘(A) is necessary—’’;

(III) by striking subparagraph (B);

(IV) by redesignating clauses (i), (ii), and (iii)

as subparagraphs (A), (B), and (C), respectively,

and moving the margins 2 ems to the left; and

(V) in subparagraph (C) (as redesignated), by

striking ‘‘; and’’ and inserting a period;

(H) in section 11(f)(1) (12 U.S.C. 1821(f)(1)), by striking

‘‘, except that—’’ and all that follows through the end

of the paragraph and inserting a period;

(I) in section 11(i)(3) (12 U.S.C. 1821(i)(3))—

(i) by striking subparagraph (B);

(ii) by redesignating subparagraph (C) as subparagraph (B); and

(iii) in subparagraph (B) (as redesignated), by

striking ‘‘subparagraphs (A) and (B)’’ and inserting

‘‘subparagraph (A)’’;

(J) in section 11A(a) (12 U.S.C. 1821a(a))—

(i) in paragraph (2), by striking ‘‘LIABILITIES.—

’’ and all that follows through ‘‘Except’’ and inserting

‘‘LIABILITIES.—Except’’;

(ii) by striking paragraph (2)(B); and

(iii) in paragraph (3), by striking ‘‘the Bank Insurance Fund, the Savings Association Insurance Fund,’’

and inserting ‘‘the Deposit Insurance Fund’’;

(K) in section 11A(b) (12 U.S.C. 1821a(b)), by striking

paragraph (4);

(L) in section 11A(f) (12 U.S.C. 1821a(f)), by striking

‘‘Savings Association Insurance Fund’’ and inserting

‘‘Deposit Insurance Fund’’;

(M) in section 13 (12 U.S.C. 1823)—

(i) in subsection (a)(1), by striking ‘‘Bank Insurance

Fund, the Savings Association Insurance Fund,’’ and
110 STAT. 3009–493 PUBLIC LAW 104–208—SEPT. 30, 1996

inserting ‘‘Deposit Insurance Fund, the Special Reserve

of the Deposit Insurance Fund,’’;

(ii) in subsection (c)(4)(E)—

(I) in the subparagraph heading, by striking

‘‘FUNDS’’ and inserting ‘‘FUND’’; and

(II) in clause (i), by striking ‘‘any insurance

fund’’ and inserting ‘‘the Deposit Insurance Fund’’;

(iii) in subsection (c)(4)(G)(ii)—

(I) by striking ‘‘appropriate insurance fund’’

and inserting ‘‘Deposit Insurance Fund’’;

(II) by striking ‘‘the members of the insurance

fund (of which such institution is a member)’’ and

inserting ‘‘insured depository institutions’’;

(III) by striking ‘‘each member’s’’ and inserting

‘‘each insured depository institution’s’’; and

(IV) by striking ‘‘the member’s’’ each place

such term appears and inserting ‘‘the institution’s’’;

(iv) in subsection (c), by striking paragraph (11);

(v) in subsection (h), by striking ‘‘Bank Insurance

Fund’’ and inserting ‘‘Deposit Insurance Fund’’;

(vi) in subsection (k)(4)(B)(i), by striking ‘‘Savings

Association Insurance Fund’’ and inserting ‘‘Deposit

Insurance Fund’’; and

(vii) in subsection (k)(5)(A), by striking ‘‘Savings

Association Insurance Fund’’ and inserting ‘‘Deposit

Insurance Fund’’;

(N) in section 14(a) (12 U.S.C. 1824(a)) in the 5th

sentence—

(i) by striking ‘‘Bank Insurance Fund or the Savings Association Insurance Fund’’ and inserting

‘‘Deposit Insurance Fund’’; and

(ii) by striking ‘‘each such fund’’ and inserting ‘‘the

Deposit Insurance Fund’’;

(O) in section 14(b) (12 U.S.C. 1824(b)), by striking

‘‘Bank Insurance Fund or Savings Association Insurance

Fund’’ and inserting ‘‘Deposit Insurance Fund’’;

(P) in section 14(c) (12 U.S.C. 1824(c)), by striking

paragraph (3);

(Q) in section 14(d) (12 U.S.C. 1824(d))—

(i) by striking ‘‘BIF’’ each place such term appears

and inserting ‘‘DIF’’; and

(ii) by striking ‘‘Bank Insurance Fund’’ each place

such term appears and inserting ‘‘Deposit Insurance

Fund’’;

(R) in section 15(c)(5) (12 U.S.C. 1825(c)(5))—

(i) by striking ‘‘the Bank Insurance Fund or Savings Association Insurance Fund, respectively’’ each

place such term appears and inserting ‘‘the Deposit

Insurance Fund’’; and

(ii) in subparagraph (B), by striking ‘‘the Bank

Insurance Fund or the Savings Association Insurance

Fund, respectively’’ and inserting ‘‘the Deposit Insurance Fund’’;

(S) in section 17(a) (12 U.S.C. 1827(a))—

(i) in the subsection heading, by striking ‘‘BIF,

SAIF,’’ and inserting ‘‘THE DEPOSIT INSURANCE FUND’’;

and
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–494

(ii) in paragraph (1), by striking ‘‘the Bank Insurance Fund, the Savings Association Insurance Fund,’’

each place such term appears and inserting ‘‘the

Deposit Insurance Fund’’;

(T) in section 17(d) (12 U.S.C. 1827(d)), by striking

‘‘the Bank Insurance Fund, the Savings Association Insurance Fund,’’ each place such term appears and inserting

‘‘the Deposit Insurance Fund’’;

(U) in section 18(m)(3) (12 U.S.C. 1828(m)(3))—

(i) by striking ‘‘Savings Association Insurance

Fund’’ each place such term appears and inserting

‘‘Deposit Insurance Fund’’; and

(ii) in subparagraph (C), by striking ‘‘or the Bank

Insurance Fund’’;

(V) in section 18(p) (12 U.S.C. 1828(p)), by striking

‘‘deposit insurance funds’’ and inserting ‘‘Deposit Insurance

Fund’’;

(W) in section 24 (12 U.S.C. 1831a) in subsections

(a)(1) and (d)(1)(A), by striking ‘‘appropriate deposit insurance fund’’ each place such term appears and inserting

‘‘Deposit Insurance Fund’’;

(X) in section 28 (12 U.S.C. 1831e), by striking ‘‘affected

deposit insurance fund’’ each place such term appears and

inserting ‘‘Deposit Insurance Fund’’;

(Y) by striking section 31 (12 U.S.C. 1831h);

(Z) in section 36(i)(3) (12 U.S.C. 1831m(i)(3)) by striking

‘‘affected deposit insurance fund’’ and inserting ‘‘Deposit

Insurance Fund’’;

(AA) in section 38(a) (12 U.S.C. 1831o(a)) in the subsection heading, by striking ‘‘FUNDS’’ and inserting ‘‘FUND’’;

(BB) in section 38(k) (12 U.S.C. 1831o(k))—

(i) in paragraph (1), by striking ‘‘a deposit insurance fund’’ and inserting ‘‘the Deposit Insurance Fund’’;

and

(ii) in paragraph (2)(A)—

(I) by striking ‘‘A deposit insurance fund’’ and

inserting ‘‘The Deposit Insurance Fund’’; and

(II) by striking ‘‘the deposit insurance fund’s

outlays’’ and inserting ‘‘the outlays of the Deposit

Insurance Fund’’; and

(CC) in section 38(o) (12 U.S.C. 1831o(o))—

(i) by striking ‘‘ASSOCIATIONS.—’’ and all that follows through ‘‘Subsections (e)(2)’’ and inserting

‘‘ASSOCIATIONS.—Subsections (e)(2)’’;

(ii) by redesignating subparagraphs (A), (B), and

(C) as paragraphs (1), (2), and (3), respectively, and

moving the margins 2 ems to the left; and

(iii) in paragraph (1) (as redesignated), by

redesignating clauses (i) and (ii) as subparagraphs (A)

and (B), respectively, and moving the margins 2 ems

to the left.

(15) AMENDMENTS TO THE FINANCIAL INSTITUTIONS REFORM,

RECOVERY, AND ENFORCEMENT ACT OF 1989.—The Financial

Institutions Reform, Recovery, and Enforcement Act is amended—

(A) in section 951(b)(3)(B) (12 U.S.C. 1833a(b)(3)(B)),

by striking ‘‘Bank Insurance Fund, the Savings Association
110 STAT. 3009–495 PUBLIC LAW 104–208—SEPT. 30, 1996

Insurance Fund,’’ and inserting ‘‘Deposit Insurance Fund’’;

and

(B) in section 1112(c)(1)(B) (12 U.S.C. 3341(c)(1)(B)),

by striking ‘‘Bank Insurance Fund, the Savings Association

Insurance Fund,’’ and inserting ‘‘Deposit Insurance Fund’’.

(16) AMENDMENT TO THE BANK ENTERPRISE ACT OF 1991.—

Section 232(a)(1) of the Bank Enterprise Act of 1991 (12 U.S.C.

1834(a)(1)) is amended by striking ‘‘section 7(b)(2)(H)’’ and

inserting ‘‘section 7(b)(2)(G)’’.

(17) AMENDMENT TO THE BANK HOLDING COMPANY ACT OF

1956.—Section 2(j)(2) of the Bank Holding Company Act of

1956 (12 U.S.C. 1841(j)(2)) is amended by striking ‘‘Savings

Association Insurance Fund’’ and inserting ‘‘Deposit Insurance

Fund’’.

SEC. 2705. CREATION OF SAIF SPECIAL RESERVE.

Section 11(a)(6) of the Federal Deposit Insurance Act (12 U.S.C.

1821(a)(6)) is amended by adding at the end the following new

subparagraph:

‘‘(L) ESTABLISHMENT OF SAIF SPECIAL RESERVE.—

‘‘(i) ESTABLISHMENT.—If, on January 1, 1999, the

reserve ratio of the Savings Association Insurance Fund

exceeds the designated reserve ratio, there is established

a Special Reserve of the Savings Association Insurance

Fund, which shall be administered by the Corporation and

shall be invested in accordance with section 13(a).

‘‘(ii) AMOUNTS IN SPECIAL RESERVE.—If, on January

1, 1999, the reserve ratio of the Savings Association Insurance Fund exceeds the designated reserve ratio, the amount

by which the reserve ratio exceeds the designated reserve

ratio shall be placed in the Special Reserve of the Savings

Association Insurance Fund established by clause (i).

‘‘(iii) LIMITATION.—The Corporation shall not provide

any assessment credit, refund, or other payment from any

amount in the Special Reserve of the Savings Association

Insurance Fund.

‘‘(iv) EMERGENCY USE OF SPECIAL RESERVE.—Notwithstanding clause (iii), the Corporation may, in its sole discretion, transfer amounts from the Special Reserve of the

Savings Association Insurance Fund to the Savings Association Insurance Fund for the purposes set forth in paragraph

(4), only if—

‘‘(I) the reserve ratio of the Savings Association

Insurance Fund is less than 50 percent of the designated reserve ratio; and

‘‘(II) the Corporation expects the reserve ratio of

the Savings Association Insurance Fund to remain at

less than 50 percent of the designated reserve ratio

for each of the next 4 calendar quarters.

‘‘(v) EXCLUSION OF SPECIAL RESERVE IN CALCULATING

RESERVE RATIO.—Notwithstanding any other provision of

law, any amounts in the Special Reserve of the Savings

Association Insurance Fund shall be excluded in calculating

the reserve ratio of the Savings Association Insurance

Fund.’’.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–496

SEC. 2706. REFUND OF AMOUNTS IN DEPOSIT INSURANCE FUND IN

EXCESS OF DESIGNATED RESERVE AMOUNT.

Subsection (e) of section 7 of the Federal Deposit Insurance

Act (12 U.S.C. 1817(e)) is amended to read as follows:

‘‘(e) REFUNDS.—

‘‘(1) OVERPAYMENTS.—In the case of any payment of an

assessment by an insured depository institution in excess of

the amount due to the Corporation, the Corporation may—

‘‘(A) refund the amount of the excess payment to the

insured depository institution; or

‘‘(B) credit such excess amount toward the payment

of subsequent semiannual assessments until such credit

is exhausted.

‘‘(2) BALANCE IN INSURANCE FUND IN EXCESS OF DESIGNATED

RESERVE.—

‘‘(A) IN GENERAL.—Subject to subparagraphs (B) and

(C), if, as of the end of any semiannual assessment period

beginning after the date of the enactment of the Deposit

Insurance Funds Act of 1996, the amount of the actual

reserves in—

‘‘(i) the Bank Insurance Fund (until the merger

of such fund into the Deposit Insurance Fund pursuant

to section 2704 of the Deposit Insurance Funds Act

of 1996); or

‘‘(ii) the Deposit Insurance Fund (after the

establishment of such fund),

exceeds the balance required to meet the designated reserve

ratio applicable with respect to such fund, such excess

amount shall be refunded to insured depository institutions

by the Corporation on such basis as the Board of Directors

determines to be appropriate, taking into account the factors considered under the risk-based assessment system.

‘‘(B) REFUND NOT TO EXCEED PREVIOUS SEMIANNUAL

ASSESSMENT.—The amount of any refund under this paragraph to any member of a deposit insurance fund for any

semiannual assessment period may not exceed the total

amount of assessments paid by such member to the insurance fund with respect to such period.

‘‘(C) REFUND LIMITATION FOR CERTAIN INSTITUTIONS.—

No refund may be made under this paragraph with respect

to the amount of any assessment paid for any semiannual

assessment period by any insured depository institution

described in clause (v) of subsection (b)(2)(A).’’.

SEC. 2707. ASSESSMENT RATES FOR SAIF MEMBERS MAY NOT BE LESS

THAN ASSESSMENT RATES FOR BIF MEMBERS.

Section 7(b)(2)(C) of the Federal Deposit Insurance Act (12

U.S.C. 1817(b)(2)(E), as redesignated by section 2704(d)(6) of this

subtitle) is amended—

(1) by striking ‘‘and’’ at the end of clause (i);

(2) by striking the period at the end of clause (ii) and

inserting ‘‘; and’’; and

(3) by adding at the end the following new clause:

‘‘(iii) notwithstanding any other provision of this

subsection, during the period beginning on the date

of enactment of the Deposit Insurance Funds Act of
110 STAT. 3009–497 PUBLIC LAW 104–208—SEPT. 30, 1996

1996, and ending on December 31, 1998, the assessment rate for a Savings Association Insurance Fund

member may not be less than the assessment rate

for a Bank Insurance Fund member that poses a comparable risk to the deposit insurance fund.’’.

SEC. 2708. ASSESSMENTS AUTHORIZED ONLY IF NEEDED TO MAINTAIN

THE RESERVE RATIO OF A DEPOSIT INSURANCE FUND.

(a) IN GENERAL.—Section 7(b)(2)(A)(i) of the Federal Deposit

Insurance Act (12 U.S.C. 1817(b)(2)(A)(i)) is amended in the matter

preceding subclause (I) by inserting ‘‘when necessary, and only

to the extent necessary’’ after ‘‘insured depository institutions’’.

(b) LIMITATION ON ASSESSMENT.—Section 7(b)(2)(A)(iii) of the

Federal Deposit Insurance Act (12 U.S.C. 1817(b)(2)(A)(iii)) is

amended to read as follows:

‘‘(iii) LIMITATION ON ASSESSMENT.—Except as provided in clause (v), the Board of Directors shall not

set semiannual assessments with respect to a deposit

insurance fund in excess of the amount needed—

‘‘(I) to maintain the reserve ratio of the fund

at the designated reserve ratio; or

‘‘(II) if the reserve ratio is less than the designated reserve ratio, to increase the reserve ratio

to the designated reserve ratio.’’.

(c) EXCEPTION TO LIMITATION ON ASSESSMENTS.—Section

7(b)(2)(A) of the Federal Deposit Insurance Act (12 U.S.C.

1817(b)(2)(A)) is amended by adding at the end the following new

clause:

‘‘(v) EXCEPTION TO LIMITATION ON ASSESSMENTS.—

The Board of Directors may set semiannual assessments in excess of the amount permitted under clauses

(i) and (iii) with respect to insured depository institutions that exhibit financial, operational, or compliance

weaknesses ranging from moderately severe to unsatisfactory, or are not well capitalized, as that term is

defined in section 38.’’.

SEC. 2709. TREASURY STUDY OF COMMON DEPOSITORY INSTITUTION

CHARTER.

(a) STUDY REQUIRED.—The Secretary of the Treasury shall

conduct a study of all issues which the Secretary considers to

be relevant with respect to the development of a common charter

for all insured depository institutions (as defined in section 3 of

the Federal Deposit Insurance Act) and the abolition of separate

and distinct charters between banks and savings associations.

(b) REPORT TO THE CONGRESS.—

(1) IN GENERAL.—The Secretary of the Treasury shall submit a report to the Congress on or before March 31, 1997,

containing the findings and conclusions of the Secretary in

connection with the study conducted pursuant to subsection

(a).

(2) DETAILED ANALYSIS AND RECOMMENDATIONS.—The

report under paragraph (1) shall include—

(A) a detailed analysis of each issue the Secretary

considered relevant to the subject of the study;
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–498

(B) recommendations of the Secretary with regard to

the establishment of a common charter for insured depository institutions (as defined in section 3 of the Federal

Deposit Insurance Act); and

(C) such recommendations for legislative and administrative action as the Secretary determines to be appropriate

to implement the recommendations of the Secretary under

subparagraph (B).

SEC. 2710. DEFINITIONS.

For purposes of this subtitle, the following definitions shall

apply:

(1) BANK INSURANCE FUND.—The term ‘‘Bank Insurance

Fund’’ means the fund established pursuant to section

(11)(a)(5)(A) of the Federal Deposit Insurance Act, as that section existed on the day before the date of enactment of this

Act.

(2) BIF MEMBER, SAIF MEMBER.—The terms ‘‘Bank Insurance Fund member’’ and ‘‘Savings Association Insurance Fund

member’’ have the same meanings as in section 7(l) of the

Federal Deposit Insurance Act.

(3) VARIOUS BANKING TERMS.—The terms ‘‘bank’’, ‘‘Board

of Directors’’, ‘‘Corporation’’, ‘‘deposit’’, ‘‘insured depository

institution’’, ‘‘Federal savings association’’, ‘‘savings association’’, ‘‘State savings bank’’, and ‘‘State depository institution’’

have the same meanings as in section 3 of the Federal Deposit

Insurance Act.

(4) DEPOSIT INSURANCE FUND.—The term ‘‘Deposit Insurance Fund’’ means the fund established under section 11(a)(4)

of the Federal Deposit Insurance Act (as amended by section

2704(d) of this subtitle).

(5) DEPOSITORY INSTITUTION HOLDING COMPANY.—The term

‘‘depository institution holding company’’ has the same meaning

as in section 3 of the Federal Deposit Insurance Act.

(6) DESIGNATED RESERVE RATIO.—The term ‘‘designated

reserve ratio’’ has the same meaning as in section 7(b)(2)(A)(iv)

of the Federal Deposit Insurance Act.

(7) SAIF.—The term ‘‘Savings Association Insurance Fund’’

means the fund established pursuant to section 11(a)(6)(A)

of the Federal Deposit Insurance Act, as that section existed

on the day before the date of enactment of this Act.

(8) SAIF-ASSESSABLE DEPOSIT.—The term ‘‘SAIF-assessable

deposit’’—

(A) means a deposit that is subject to assessment for

purposes of the Savings Association Insurance Fund under

the Federal Deposit Insurance Act (including a deposit

that is treated as insured by the Savings Association Insurance Fund under section 5(d)(3) of the Federal Deposit

Insurance Act); and

(B) includes any deposit described in subparagraph

(A) which is assumed after March 31, 1995, if the insured

depository institution, the deposits of which are assumed,

is not an insured depository institution when the special

assessment is imposed under section 2702(a).

SEC. 2711. DEDUCTION FOR SPECIAL ASSESSMENTS.

For purposes of subtitle A of the Internal Revenue Code of

1986—

26 USC 162 note.

12 USC 1821

note.
110 STAT. 3009–499 PUBLIC LAW 104–208—SEPT. 30, 1996

(1) the amount allowed as a deduction under section 162

of such Code for a taxable year shall include any amount

paid during such year by reason of an assessment under section

2702 of this subtitle, and

(2) section 172(f) of such Code shall not apply to any

deduction described in paragraph (1).

TITLE III—SPECTRUM ALLOCATION

PROVISIONS

SEC. 3001. COMPETITIVE BIDDING FOR SPECTRUM.

(a) COMMISSION OBLIGATION TO MAKE ADDITIONAL SPECTRUM

AVAILABLE.—The Federal Communications Commission shall—

(1) reallocate the use of frequencies at 2305–2320 megahertz and 2345–2360 megahertz to wireless services that are

consistent with international agreements concerning spectrum

allocations; and

(2) assign the use of such frequencies by competitive bidding pursuant to section 309(j) of the Communications Act

of 1934 (47 U.S.C. 309(j)).

(b) ADDITIONAL REQUIREMENTS.—In making the bands of frequencies described in subsection (a) available for competitive bidding, the Commission shall—

(1) seek to promote the most efficient use of the spectrum;

and

(2) take into account the needs of public safety radio services.

(c) EXPEDITED PROCEDURES.—The Commission shall commence

the competitive bidding for the assignment of the frequencies

described in subsection (a)(1) no later than April 15, 1997. The

rules governing such frequencies shall be effective immediately

upon publication in the Federal Register notwithstanding section

553(d), 801(a)(3), and 806(a) of title 5, United States Code. Chapter

6 of such title, and sections 3507 and 3512 of title 44, United

States Code, shall not apply to the rules and competitive bidding

procedures governing such frequencies. Notwithstanding section

309(b) of the Communications Act of 1934 (47 U.S.C. 309(b)), no

application for an instrument of authorization for such frequencies

shall be granted by the Commission earlier than 7 days following

issuance of public notice by the Commission of the acceptance

for filing of such application or of any substantial amendment

thereto. Notwithstanding section 309(d)(1) of such Act (47 U.S.C.

309(d)(1)), the Commission may specify a period (no less than

5 days following issuance of such public notice) for the filing of

petitions to deny any application for an instrument of authorization

for such frequencies.

(d) DEADLINE FOR COLLECTION.—The Commission shall conduct

the competitive bidding under subsection (a)(2) in a manner that

ensures that all proceeds of the bidding are deposited in accordance

with section 309(j)(8) of the Communications Act of 1934 not later

September 30, 1997.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–500

TITLE IV—ADJUSTMENT OF PAYGO

BALANCES

SEC. 4001. ADJUSTMENT OF PAYGO BALANCES.

For purposes of section 252 of the Balanced Budget and Emergency Deficit Control Act of 1985, on the calendar day after the

Director of the Office of Management and Budget issues the final

sequestration report for fiscal year 1997, the Director and the

Director of the Congressional Budget Office shall change the balances (as computed pursuant to section 252(b) of that Act) of direct

spending and receipts legislation—

(1) for fiscal year 1997 to zero if such balance for the

fiscal year is not an increase in the deficit.

TITLE V—ADDITIONAL

APPROPRIATIONS

CHAPTER 1

DEPARTMENT OF AGRICULTURE, RURAL DEVELOPMENT,

FOOD AND DRUG ADMINISTRATION, AND RELATED

AGENCIES

DEPARTMENT OF AGRICULTURE

COOPERATIVE STATE RESEARCH, EDUCATION, AND EXTENSION SERVICE

EXTENSION ACTIVITIES

For an additional amount for payments for cooperative extension work by the colleges receiving the benefits of the second Morrill

Act (7 U.S.C. 321–326, 328) and Tuskegee University, $753,000.

NATURAL RESOURCES CONSERVATION SERVICE

WATERSHED AND FLOOD PREVENTION OPERATIONS

For an additional amount to repair damages to the waterways

and watersheds resulting from the effects of Hurricanes Fran and

Hortense and other natural disasters, $63,000,000, to remain available until expended: Provided, That the entire amount is designated

by Congress as an emergency requirement pursuant to section

251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

FARM SERVICE AGENCY

EMERGENCY CONSERVATION PROGRAM

For an additional amount for emergency expenses resulting

from the effects of Hurricanes Fran and Hortense and other natural

disasters, $25,000,000, to remain available until expended: Provided, That the entire amount is designated by Congress as an

emergency requirement pursuant to section 251(b)(2)(D)(i) of the

Balanced Budget and Emergency Deficit Control Act of 1985, as

amended.
110 STAT. 3009–501 PUBLIC LAW 104–208—SEPT. 30, 1996

CHAPTER 2

DISTRICT OF COLUMBIA

EDUCATION FACILITIES IMPROVEMENT IN THE DISTRICT OF COLUMBIA

(BY TRANSFER)

SEC. 5201. The District of Columbia Financial Responsibility

and Management Assistance Authority (referred to in this section

as the ‘‘Authority’’) shall have the authority to contract with a

private entity (or entities) to carry out a program of school facility

repair of public schools and public charter schools located in public

school facilities in the District of Columbia, in consultation with

the General Services Administration: Provided, That an amount estimated to be $40,700,000 is hereby transferred and otherwise

made available to the Authority until expended for contracting

as provided under this section, to be derived from transfers and

reallocations as follows: (1) funds made available under the heading

‘‘PUBLIC EDUCATION SYSTEM’’ in Public Law 104–194 for school

repairs in a restricted line item; (2) all capital financing authority

made available for public school capital improvements in Public

Law 104–194; and (3) all capital financing authority made available

for public school capital improvements which are or remain available from Public Law 104–134 or any previous appropriations Act

for the District of Columbia: Provided further, That the General

Services Administration, in consultation with the District of Columbia Public Schools and the District of Columbia Council and subject

to the approval of the Authority and the Committees on Appropriations of the Senate and the House of Representatives, shall provide

program management services to assist in the short-term management of the repairs and capital improvements: Provided further,

That contracting authorized under this section shall be conducted

in accordance with Federal procurement rules and regulations and

guidelines or such guidelines as prescribed by the Authority.

SPECIAL RULES REGARDING GENERAL OBLIGATION BOND ACT

SEC. 5202. WAIVER OF CONGRESSIONAL REVIEW.—Notwithstanding section 602(c)(1) of the District of Columbia Self-Government

and Governmental Reorganization Act (sec. 1–233(c)(1), D.C. Code),

the General Obligation Bond Act of 1996 (D.C. Bill 11–840), if

enacted by the Council of the District of Columbia, shall take

effect on the date of the enactment of such Act or the date of

the enactment of this Act, whichever is later.

AMENDMENTS TO FINANCIAL RESPONSIBILITY AND MANAGEMENT

ASSISTANCE ACT

SEC. 5203. (a) CALCULATION OF 7-DAY REVIEW PERIOD FOR

COUNCIL ACTS.—Section 203(a)(5) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995 (sec.

47–392.3(a)(5), D.C. Code) is amended—

(1) by inserting ‘‘(excluding Saturdays, Sundays, and legal

holidays)’’ after ‘‘7-day period’’ the first place it appears; and

(2) by striking ‘‘the date the Council submits the Act to

the Authority’’ and inserting ‘‘the first day (excluding Saturdays, Sundays, and legal holidays) after the Authority receives

the Act from the Council’’.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–502

(b) SPECIFICATION OF PENALTY FOR PROHIBITED ACTS.—Section

103(i)(1) of such Act (sec. 47–391.3(i)(1), D.C. Code) is amended

by striking the period at the end and inserting the following: ‘‘,

and shall be fined not more than $1,000, imprisoned for not more

than 1 year, or both.’’.

(c) WAIVER OF PRIVACY ACT REQUIREMENTS FOR OBTAINING

OFFICIAL DATA.—Section 103(c)(1) of such Act (sec. 47–391.3(c)(1),

D.C. Code) is amended by striking ‘‘Act) and 552b’’ and inserting

‘‘Act), 552a (the Privacy Act of 1974), and 552b’’.

(d) PERMITTING AUTHORITY REVIEW OF RULEMAKING.—Section

203(b) of such Act (sec. 47–392.3(b), D.C. Code) is amended by

adding at the end the following new paragraph:

‘‘(5) APPLICATION TO RULES AND REGULATIONS.—The provisions of this subsection shall apply with respect to a rule

or regulation issued or proposed to be issued by the Mayor

(or the head of any department or agency of the District government) in the same manner as such provisions apply to a contract or lease.’’.

(e) DEPOSIT OF ALL DISTRICT BORROWING WITH AUTHORITY.—

(1) IN GENERAL.—Section 204 of such Act (sec. 47–392.4,

D.C. Code) is amended—

(A) by redesignating subsections (d) and (e) as subsections (e) and (f); and

(B) by inserting after subsection (c) the following new

subsection:

‘‘(d) DEPOSIT OF BORROWED FUNDS WITH AUTHORITY.—If the

District government borrows funds during a control year, the funds

shall be deposited into an escrow account held by the Authority,

to be allocated by the Authority to the Mayor at such intervals

and in accordance with such terms and conditions as it considers

appropriate, consistent with the financial plan and budget for the

year and with any other withholding of funds by the Authority

pursuant to this Act.’’.

(2) CONFORMING AMENDMENTS.—(A) Section 204(e) of such

Act, as redesignated by paragraph (1)(A), is amended by inserting after ‘‘(b)(1)’’ the following: ‘‘or the escrow account described

in subsection (d)’’.

(B) Section 206(d)(1) of such Act is amended by striking

‘‘204(b)’’ and inserting ‘‘204(b), section 204(d),’’.

(f) GRANTING AUTHORITY POWER TO ISSUE GENERAL ORDERS.—

Section 207 of such Act (sec. 47–392.7, D.C Code) is amended

by adding at the end the following new subsection:

‘‘(d) ADDITIONAL POWER TO ISSUE ORDERS, RULES, AND REGULATIONS.—

‘‘(1) IN GENERAL.—In addition to the authority described

in subsection (c), the Authority may at any time issue such

orders, rules, or regulations as it considers appropriate to carry

out the purposes of this Act and the amendments made by

this Act, to the extent that the issuance of such an order,

rule, or regulation is within the authority of the Mayor or

the head of any department or agency of the District government, and any such order, rule, or regulation shall be legally

binding to the same extent as if issued by the Mayor or the

head of any such department or agency.

‘‘(2) NOTIFICATION.—Upon issuing an order, rule, or regulation pursuant to this subsection, the Authority shall notify

the Mayor, the Council, the President, and Congress.
110 STAT. 3009–503 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(3) NO JUDICIAL REVIEW OF DECISION TO ISSUE ORDER.—

The decision by the Authority to issue an order, rule, or regulation pursuant to this subsection shall be final and shall not

be subject to judicial review.’’.

PROHIBITING FUNDING FOR TERMINATED EMPLOYEES OR

CONTRACTORS

SEC. 5204. (a) IN GENERAL.—Except as provided in subsection

(b), none of the funds made available to the District of Columbia

during any fiscal year (beginning with fiscal year 1996) may be

used to pay the salary or wages of any individual whose employment

by the District government is no longer required as determined

by the District of Columbia Financial Responsibility and Management Assistance Authority, or to pay any expenses associated with

a contractor or consultant of the District government whose contract

or arrangement with the District government is no longer required

as determined by the Authority.

(b) EXCEPTION FOR PAYMENTS FOR SERVICES ALREADY PROVIDED.—Funds made available to the District of Columbia may

be used to pay an individual for employment already performed

at the time of the Authority’s determination, or to pay a contractor

or consultant for services already provided at the time of the

Authority’s determination, to the extent permitted by the District

of Columbia Financial Responsibility and Management Assistance

Authority.

(c) DISTRICT GOVERNMENT DEFINED.—In this section, the term

‘‘District government’’ has the meaning given such term in section

305(5) of the District of Columbia Financial Responsibility and

Management Assistance Act of 1995.

AMENDMENTS TO DISTRICT OF COLUMBIA SCHOOL REFORM

ACT OF 1995.

SEC. 5205. (a) PROCESS FOR FILING CHARTER PETITIONS.—Section 2201 of the District of Columbia School Reform Act of 1995

(Public Law 104–134; 110 Stat. 1321–115) is amended by adding

at the end the following:

‘‘(d) LIMITATIONS ON FILING.—

‘‘(1) MULTIPLE CHARTERING AUTHORITIES.—An eligible

applicant may not file the same petition to establish a public

charter school with more than 1 eligible chartering authority

during a calendar year.

‘‘(2) MULTIPLE PETITIONS.—An eligible applicant may not

file more than 1 petition to establish a public charter school

during a calendar year.’’.

(b) CONTENTS OF PETITION.—Section 2202(6)(B) of the District

of Columbia School Reform Act of 1995 (110 Stat. 1321–116) is

amended to read as follows:

‘‘(B) either—

‘‘(i)(I) an identification of a facility for the school,

including a description of the site where the school

will be located, any buildings on the site, and any

buildings proposed to be constructed on the site, and

(II) information demonstrating that the eligible

applicant has acquired title to, or otherwise secured

the use of, the facility; or
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–504

‘‘(ii) a timetable by which an identification

described in clause (i)(I) will be made, and the information described in clause (i)(II) will be submitted, to

the eligible chartering authority;’’.

(c) PROCESS FOR APPROVING OR DENYING PUBLIC CHARTER

SCHOOL PETITIONS.—Section 2203 of the District of Columbia School

Reform Act of 1995 (110 Stat. 1321–118) is amended—

(1) by amending subsection (d) to read as follows:

‘‘(d) APPROVAL.—

‘‘(1) IN GENERAL.—Subject to subsection (i) and paragraph

(2), an eligible chartering authority shall approve a petition

to establish a public charter school, if—

‘‘(A) the eligible chartering authority determines that

the petition satisfies the requirements of this subtitle;

‘‘(B) the eligible applicant who filed the petition agrees

to satisfy any condition or requirement, consistent with

this subtitle and other applicable law, that is set forth

in writing by the eligible chartering authority as an amendment to the petition;

‘‘(C) the eligible chartering authority determines that

the public charter school has the ability to meet the educational objectives outlined in the petition; and

‘‘(D) the approval will not cause the eligible chartering

authority to exceed a limit under subsection (i).

‘‘(2) CONDITIONAL APPROVAL.—

‘‘(A) IN GENERAL.—In the case of a petition that does

not contain the identification and information required

under section 2202(6)(B)(i), but does contain the timetable

required under section 2202(6)(B)(ii), an eligible chartering

authority may only approve the petition on a conditional

basis, subject to the eligible applicant’s submitting the

identification and information described in section

2202(6)(B)(i) in accordance with such timetable, or any

other timetable specified in writing by the eligible chartering authority in an amendment to the petition.

‘‘(B) EFFECT OF CONDITIONAL APPROVAL.—For purposes

of subsections (e), (h), (i), and (j), a petition conditionally

approved under this paragraph shall be treated the same

as a petition approved under paragraph (1), except that

on the date that such a conditionally approved petition

ceases to be conditionally approved because the eligible

applicant has not timely submitted the identification and

information described in section 2202(6)(B)(i), the approval

of the petition shall cease to be counted for purposes of

subsection (i).’’;

(2) in subsection (h), by striking ‘‘(d)(2),’’ each place such

term appears and inserting ‘‘(d),’’;

(3) by amending subsection (i) to read as follows:

‘‘(i) NUMBER OF PETITIONS.—

‘‘(1) FIRST YEAR.—During calendar year 1996, not more

than 10 petitions to establish public charter schools may be

approved under this subtitle.

‘‘(2) SUBSEQUENT YEARS.—

‘‘(A) IN GENERAL.—Subject to subparagraph (B), during

calendar year 1997, and during each subsequent calendar

year, each eligible chartering authority shall not approve

more than 10 petitions to establish a public charter school
110 STAT. 3009–505 PUBLIC LAW 104–208—SEPT. 30, 1996

under this subtitle. Any such petition shall be approved

during the period that begins on January 1 and ends on

April 1.

‘‘(B) EXCEPTION.—If, by April 1 of any calendar year

after 1996, an eligible chartering authority has approved

fewer than 10 petitions during such calendar year, any

other eligible chartering authority may approve more than

10 petitions during such calendar year, but only if—

‘‘(i) the eligible chartering authority completes the

approval of any such additional petition before June

1 of the year; and

‘‘(ii) the approval of any such additional petition

will not cause the total number of petitions approved

by all eligible chartering authorities during the calendar year to exceed 20.’’; and

(4) by amending subsection (j) to read as follows:

‘‘(j) AUTHORITY OF ELIGIBLE CHARTERING AUTHORITY.—

‘‘(1) IN GENERAL.—Except as provided in paragraph (2),

and except for officers or employees of the eligible chartering

authority with which a petition to establish a public charter

school is filed, no governmental entity, elected official, or

employee of the District of Columbia shall make, participate

in making, or intervene in the making of, the decision to

approve or deny such a petition.

‘‘(2) AVAILABILITY OF REVIEW.—A decision by an eligible

chartering authority to deny a petition to establish a public

charter school shall be subject to judicial review by an appropriate court of the District of Columbia.’’.

(d) DISTRICT OF COLUMBIA PUBLIC SCHOOL SERVICES TO PUBLIC

CHARTER SCHOOLS.—Section 2209 of the District of Columbia School

Reform Act of 1995 (110 Stat. 1321–125) is amended—

(1) by inserting ‘‘(a) IN GENERAL.—’’ before ‘‘The Superintendent’’; and

(2) by adding at the end the following:

‘‘(b) PREFERENCE IN LEASING OR PURCHASING PUBLIC SCHOOL

FACILITIES.—

‘‘(1) FORMER PUBLIC SCHOOL PROPERTY.—

‘‘(A) IN GENERAL.—Notwithstanding any other provision of law relating to the disposition of a facility or property described in subparagraph (B), the Mayor and the

District of Columbia Government shall give preference to

an eligible applicant whose petition to establish a public

charter school has been conditionally approved under section 2203(d)(2), or a Board of Trustees, with respect to

the purchase or lease of a facility or property described

in subparagraph (B), provided that doing so will not result

in a significant loss of revenue that might be obtained

from other dispositions or uses of the facility or property.

‘‘(B) PROPERTY DESCRIBED.—A facility or property

referred to in subparagraph (A) is a facility, or real property—

‘‘(i) that formerly was under the jurisdiction of

the Board of Education;

‘‘(ii) that the Board of Education has determined

is no longer needed for purposes of operating a District

of Columbia public school; and
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–506

‘‘(iii) with respect to which the Board of Education

has transferred jurisdiction to the Mayor.

‘‘(2) CURRENT PUBLIC SCHOOL PROPERTY.—

‘‘(A) IN GENERAL.—Notwithstanding any other provision of law relating to the disposition of a facility or property described in subparagraph (B), the Mayor and the

District of Columbia Government shall give preference to

an eligible applicant whose petition to establish a public

charter school has been conditionally approved under section 2203(d)(2), or a Board of Trustees, in leasing, or otherwise contracting for the use of, a facility or property

described in subparagraph (B).

‘‘(B) PROPERTY DESCRIBED.—A facility or property

referred to in subparagraph (A) is a facility, real property,

or a designated area of a facility or real property, that—

‘‘(i) is under the jurisdiction of the Board of Education; and

‘‘(ii) is available for use because the Board of Education is not using, for educational, administrative,

or other purposes, the facility, real property, or designated area.’’.

(e) CHARTER RENEWAL.—Section 2212 of the District of Columbia School Reform Act of 1995 (110 Stat. 1321–129) is amended—

(1) by amending subsection (a) to read as follows:

‘‘(a) TERMS.—

‘‘(1) INITIAL TERM.—A charter granted to a public charter

school shall remain in force for a 15-year period.

‘‘(2) RENEWALS.—A charter may be renewed for an unlimited number of times, each time for a 15-year period.

‘‘(3) REVIEW.—An eligible chartering authority that grants

or renews a charter pursuant to paragraph (1) or (2) shall

review the charter—

‘‘(A) at least once every 5 years to determine whether

the charter should be revoked for the reasons described

in subsection (a)(1)(A) or (b) of section 2213 in accordance

with the procedures for such revocation established under

section 2213(c); and

‘‘(B) once every 5 years, beginning on the date that

is 5 years after the date on which the charter is granted

or renewed, to determine whether the charter should be

revoked for the reasons described in section 2213(a)(1)(B)

in accordance with the procedures for such revocation

established under section 2213(c).’’; and

(2) by amending subsection (d)(6) to read as follows:

‘‘(6) JUDICIAL REVIEW.—A decision by an eligible chartering

authority to deny an application to renew a charter shall be

subject to judicial review by an appropriate court of the District

of Columbia.’’.

(f) CHARTER REVOCATION.—Section 2213(a) of the District of

Columbia School Reform Act of 1995 (110 Stat. 1321–130) is amended to read as follows:

‘‘(a) CHARTER OR LAW VIOLATIONS; FAILURE TO MEET GOALS.—

‘‘(1) IN GENERAL.—Subject to paragraph (2), an eligible

chartering authority that has granted a charter to a public

charter school may revoke the charter if the eligible chartering

authority determines that the school—
110 STAT. 3009–507 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(A) committed a violation of applicable laws or a material violation of the conditions, terms, standards, or procedures set forth in the charter, including violations relating

to the education of children with disabilities; or

‘‘(B) failed to meet the goals and student academic

achievement expectations set forth in the charter.

‘‘(2) SPECIAL RULE.—An eligible chartering authority may

not revoke a charter under paragraph (1)(B), except pursuant

to a determination made through a review conducted under

section 2212(a)(3)(B).’’.

(g) PUBLIC CHARTER SCHOOL BOARD.—Paragraphs (3) and (4)

of section 2214(a) of the District of Columbia School Reform Act

of 1995 (110 Stat. 1321–132) are amended to read as follows:

‘‘(3) VACANCIES.—

‘‘(A) OTHER THAN FROM EXPIRATION OF TERM.—Where

a vacancy occurs in the membership of the Board for reasons other than the expiration of the term of a member

of the Board, the Secretary of Education, not later than

30 days after the vacancy occurs, shall present to the

Mayor a list of 3 people the Secretary determines are

qualified to serve on the Board. The Mayor, in consultation

with the District of Columbia Council, shall appoint 1

person from the list to serve on the Board. The Secretary

shall recommend, and the Mayor shall appoint, such member of the Board taking into consideration the criteria

described in paragraph (2). Any member appointed to fill

a vacancy occurring prior to the expiration of the term

of a predecessor shall be appointed only for the remainder

of the term.

‘‘(B) EXPIRATION OF TERM.—Not later than the date

that is 60 days before the expiration of the term of a

member of the Board, the Secretary of Education shall

present to the Mayor, with respect to each such impending

vacancy, a list of 3 people the Secretary determines are

qualified to serve on the Board. The Mayor, in consultation

with the District of Columbia Council, shall appoint 1

person from each such list to serve on the Board. The

Secretary shall recommend, and the Mayor shall appoint,

any member of the Board taking into consideration the

criteria described in paragraph (2).

‘‘(4) TIME LIMIT FOR APPOINTMENTS.—If, at any time, the

Mayor does not appoint members to the Board sufficient to

bring the Board’s membership to 7 within 30 days after receiving a recommendation from the Secretary of Education under

paragraph (2) or (3), the Secretary, not later than 10 days

after the final date for such mayoral appointment, shall make

such appointments as are necessary to bring the membership

of the Board to 7.’’.

(h) TECHNICAL AMENDMENT.—Section 2561(b) of the District

of Columbia School Reform Act of 1995 (Public Law 104–134),

as amended by section 148 of the District of Columbia Appropriations Act, 1997 (Public Law 104–194), is amended to read as follows:

‘‘(b) LIMITATION.—A waiver under subsection (a) shall not apply

to the Davis-Bacon Act (40 U.S.C. 276a et seq.) or Executive Order

11246 or other civil rights standards.’’.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–508

DISPOSITION OF CERTAIN SCHOOL PROPERTY BY AUTHORITY

SEC. 5206. (a) IN GENERAL.—Subtitle C of title II of the District

of Columbia Financial Responsibility and Management Assistance

Act of 1995 is amended by adding at the end the following new

section:

‘‘SEC. 225. DISPOSITION OF CERTAIN SCHOOL PROPERTY.

‘‘(a) POWER TO DISPOSE.—Notwithstanding any other provision

of law relating to the disposition of a facility or property described

in subsection (d), the Authority may dispose (by sale, lease, or

otherwise) of any facility or property described in subsection (d).

‘‘(b) PREFERENCE FOR PUBLIC CHARTER SCHOOLS.—In disposing

of a facility or property under this section, the Authority shall

give preference to an eligible applicant (as defined in section 2002

of the District of Columbia School Reform Act of 1995) whose

petition to establish a public charter school has been conditionally

approved under section 2203(d)(2) of such Act, or a Board of Trustees (as defined in section 2002 of such Act) of such a public charter

school, if doing so will not result in a significant loss of revenue

that might be obtained from other dispositions or uses of the facility

or property.

‘‘(c) USE OF PROCEEDS FROM DISPOSITION FOR SCHOOL REPAIR

AND MAINTENANCE.—

‘‘(1) IN GENERAL.—The Authority shall deposit any proceeds

of the disposition of a facility or property under this section

in the Board of Education Real Property Maintenance and

Improvement Fund (as established by the Real Property Disposal Act of 1990), to be used for the construction, maintenance,

improvement, rehabilitation, or repair of buildings and grounds

which are used for educational purposes for public and public

charter school students in the District of Columbia.

‘‘(2) CONSULTATION.—In disposing of a facility or property

under this section, the Authority shall consult with the Superintendent of Schools of the District of Columbia, the Mayor,

the Council, the Administrator of General Services, and education and community leaders involved in planning for an

agency or authority that will design and administer a comprehensive long-term program for repair and improvement of

District of Columbia public school facilities (as described in

section 2552(a) of the District of Columbia School Reform Act

of 1995).

‘‘(3) LEGAL EFFECT OF SALE.—The Authority may dispose

of a facility or property under this section by executing a

proper deed and any other legal instrument for conveyance

of title to the facility or property, and such deed shall convey

good and valid title to the purchaser of the facility or property.

‘‘(d) FACILITY OR PROPERTY DESCRIBED.—A facility or property

described in this subsection is a facility or property which is

described in section 2209(b)(1)(B) of the District of Columbia School

Reform Act of 1995 and with respect to which the Authority has

made the following determinations:

‘‘(1) The property is no longer needed for purposes of operating a District of Columbia public school (as defined in section

2002 of the District of Columbia School Reform Act of 1995).

‘‘(2) The disposition of the property is in the best interests

of education in the District of Columbia.
110 STAT. 3009–509 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(3) The Mayor (or any other department or agency of

the District government) has failed to make substantial

progress toward disposing the property during the 90-day period

which begins on the date the Board of Education transfers

jurisdiction over the property to the Mayor (or, in the case

of property which is described in section 2209(b)(1)(B) of such

Act as of the date of the enactment of this section, during

the 90-day period which begins on the date of the enactment

of this section).’’.

(b) CONTROL OVER BOARD OF EDUCATION REAL PROPERTY

MAINTENANCE AND IMPROVEMENT FUND.—

(1) IN GENERAL.—Section 2(b) of the Board of Education

Real Property Disposal Act of 1990 (sec. 9–402(b), D.C. Code)

is amended—

(A) by amending the second sentence to read as follows:

‘‘Subject to paragraph (6), the District of Columbia Financial Responsibility and Management Assistance Authority

shall administer the Fund and receive all payments into

the Fund that are required by law.’’; and

(B) by adding at the end the following new paragraph:

‘‘(6) Upon the establishment of an agency or authority within

the District of Columbia government to administer a public schools

facilities revitalization plan pursuant to section 2552(a)(2) of the

District of Columbia School Reform Act of 1995, such agency or

authority shall administer the Fund and receive all payments into

the Fund that are required by law.’’.

(2) CONFORMING AMENDMENTS.—Section 2(b) of the Board

of Education Real Property Disposal Act of 1990 (sec. 9–402(b),

D.C. Code) is amended—

(A) in the third sentence of paragraph (1), by striking

‘‘; provided that the Board’’ and all that follows and inserting a period; and

(B) by striking paragraph (5).

(c) CLERICAL AMENDMENT.—The table of contents of subtitle

C of title II of the District of Columbia Financial Responsibility

and Management Assistance Act of 1995 is amended by adding

at the end the following new item:

‘‘Sec. 225. Disposition of certain school property.’’.

CHAPTER 3

ENERGY AND WATER DEVELOPMENT

DEPARTMENT OF DEFENSE—CIVIL

DEPARTMENT OF THE ARMY

CORPS OF ENGINEERS—CIVIL

OPERATION AND MAINTENANCE, GENERAL

For an additional amount for ‘‘Operation and Maintenance,

General’’ for emergency expenses resulting from Hurricane Fran

and other natural disasters of 1996, $19,000,000, to remain available until expended: Provided: That such amount is designated

by Congress as an emergency requirement pursuant to section
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–510

251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

GENERAL PROVISION

SEC. 5301. None of the funds appropriated in the Energy and

Water Development Appropriations Act, 1997 may be made available to the Tennessee Valley Authority if the Tennessee Valley

Authority is imposing a performance deposit in connection with

residential shoreline alteration permits.

CHAPTER 4

LEGISLATIVE BRANCH

HOUSE OF REPRESENTATIVES

SALARIES AND EXPENSES

(RESCISSION)

Immediately upon enactment of this Act, of the funds appropriated in the Legislative Branch Appropriations Act, 1996, for

the House of Representatives under the heading ‘‘SALARIES AND

EXPENSES’’, there is rescinded $500,000, specified for the following

heading and account:

(1) ‘‘ALLOWANCES AND EXPENSES’’, $500,000, as follows: (A) ‘‘Government contributions to employees’ life insurance fund, retirement funds, Social Security fund, Medicare

fund, health benefits fund, and worker’s and unemployment

compensation.’’

JOINT ITEMS

CAPITOL POLICE BOARD

CAPITOL POLICE

SALARIES

(RESCISSION)

Immediately upon enactment of this Act, of the funds appropriated under this heading in Public Law 104–53, $3,000,000 are

rescinded.

GENERAL EXPENSES

For an additional amount for the Capitol Police Board for

necessary expenses for the design and installation of security systems for the Capitol buildings and grounds, $3,250,000, which shall

remain available until expended.
110 STAT. 3009–511 PUBLIC LAW 104–208—SEPT. 30, 1996

ARCHITECT OF THE CAPITOL

CAPITOL BUILDINGS AND GROUNDS

CAPITOL BUILDINGS

For an additional amount for ‘‘Capitol Buildings and Grounds,

Capitol Buildings’’, $250,000, to remain available until expended,

for architectural and engineering services related to the design

and installation of security systems for Capitol buildings and

grounds.

SENATE OFFICE BUILDINGS

Of the funds appropriated under the heading, ‘‘ARCHITECT

OF THE CAPITOL, Capitol Buildings and Grounds, Senate office

buildings’’ in Public Law 104–53, $650,000 shall remain available

until September 30, 1997 for furniture, furnishings, and equipment

for the Senate employees’ child care center.

GENERAL PROVISIONS

CONGRESSIONAL AWARD ACT AMENDMENTS OF 1996

SEC. 5401. (a) EXTENSION OF REQUIREMENTS REGARDING FINANCIAL OPERATIONS OF CONGRESSIONAL AWARD PROGRAM; NONCOMPLIANCE WITH REQUIREMENTS.—Section 5(c)(2)(A) of the Congressional

Award Act (2 U.S.C. 804(c)(2)(A)) is amended by striking ‘‘and

1994’’ and inserting ‘‘1994, 1995, 1996, 1997, and 1998’’.

(b) TERMINATION.—Section 9 of the Congressional Award Act

(2 U.S.C. 808) is amended by striking ‘‘October 1, 1995’’ and inserting ‘‘October 1, 1999’’.

(c) SAVINGS PROVISIONS.—During the period of October 1, 1995,

through the date of the enactment of this section, all actions and

functions of the Congressional Award Board under the Congressional Award Act shall have the same effect as though no lapse

or termination of the Congressional Award Board ever occurred.

BILL EMERSON HALL IN THE HOUSE OF REPRESENTATIVES PAGE

SCHOOL

SEC. 5402. The Founders Hall instructional area in the House

of Representatives Page School, located in the Thomas Jefferson

Building of the Library of Congress, shall be known and designated

as ‘‘Bill Emerson Hall’’.

CHAPTER 5

DEPARTMENT OF TRANSPORTATION

FEDERAL AVIATION ADMINISTRATION

OPERATIONS

(AIRPORT AND AIRWAY TRUST FUND)

For additional operating expenses of the Federal Aviation

Administration for airport security activities, $57,900,000, to be

derived from the Airport and Airway Trust Fund and to remain

available until September 30, 1998: Provided, That of the funds

2 USC 141 note.

2 USC 808 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–512

provided, $8,900,000 shall be for establishment of additional explosive detection K–9 teams at airports; $5,500,000 shall be for airport

vulnerability assessments; $18,000,000 shall be for the hire of additional aviation security personnel: and $25,500,000 shall be for

the hire of additional aviation safety inspectors and contract

weather observers, air traffic controller training, and implementation of recommendations of the Federal Aviation Administration’s

‘‘Ninety Day Safety Review’’, dated September 16, 1996: Provided

further, That such amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

FACILITIES AND EQUIPMENT

(AIRPORT AND AIRWAY TRUST FUND)

For additional necessary expenses for ‘‘Facilities and Equipment’’, $147,700,000, to be derived from the Airport and Airway

Trust Fund and to remain available until September 30, 1999:

Provided, That of the funds provided, $144,200,000 shall only be

for non-competitive contracts or cooperative agreements with air

carriers and airport authorities, which provide for the Federal Aviation Administration to purchase and assist in installation of

advanced security equipment for the use of such entities and

$3,500,000 shall be for accelerated development and deployment

of the Online Aviation Safety Information System: Provided further,

That such amount is designated by Congress as an emergency

requirement pursuant to section 251(b)(2)(D)(i) of the Balanced

Budget and Emergency Deficit Control Act of 1985, as amended.

RESEARCH, ENGINEERING, AND DEVELOPMENT

(AIRPORT AND AIRWAY TRUST FUND)

For an additional amount for ‘‘Research, Engineering, and

Development’’, $21,000,000, to be derived from the Airport and

Airway Trust Fund and to remain available until September 30,

1999: Provided, That the funds provided shall only be for aviation

security research and operational testing of document trace scanners and explosive detection portals for airport passengers: Provided

further, That such amount is designated by Congress as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

GRANTS-IN-AID FOR AIRPORTS

(AIRPORT AND AIRWAY TRUST FUND)

(RESCISSION OF CONTRACT AUTHORIZATION)

Of the available contract authority balances under this heading,

$50,000,000 are rescinded.
110 STAT. 3009–513 PUBLIC LAW 104–208—SEPT. 30, 1996

FEDERAL HIGHWAY ADMINISTRATION

HIGHWAY-RELATED SAFETY GRANTS

(HIGHWAY TRUST FUND)

(RESCISSION OF CONTRACT AUTHORIZATION)

Of the available contract authority balances under this heading,

$9,100,000 are rescinded.

FEDERAL-AID HIGHWAYS

(HIGHWAY TRUST FUND)

For an additional amount for ‘‘Emergency Relief Program’’ for

emergency expenses resulting from Hurricanes Fran and Hortense

and for other disasters, as authorized by 23 U.S.C. 125, $82,000,000,

to be derived from the Highway Trust Fund and to remain available

until expended: Provided, That the entire amount is designated

by Congress as an emergency requirement pursuant to section

251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

MOTOR CARRIER SAFETY GRANTS

(HIGHWAY TRUST FUND)

(RESCISSION OF CONTRACT AUTHORIZATION)

Of the available contract authority balances under this heading,

$12,300,000 are rescinded.

NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION

HIGHWAY TRAFFIC SAFETY GRANTS

(HIGHWAY TRUST FUND)

(RESCISSION OF CONTRACT AUTHORIZATION)

Of the available contract authority balances under this heading,

$11,800,000 are rescinded.

FEDERAL RAILROAD ADMINISTRATION

NORTHEAST CORRIDOR IMPROVEMENT PROGRAM

For additional necessary expenses related to Northeast Corridor

improvements authorized by title VII of the Railroad Revitalization

and Regulatory Reform Act of 1976, as amended (45 U.S.C. 851

et seq.) and 49 U.S.C. 24909, $60,000,000, to remain available

until September 30, 1999.

DIRECT LOAN FINANCING PROGRAM

Notwithstanding any other provision of law, $58,680,000, for

direct loans not to exceed $400,000,000 consistent with the purposes

of section 505 of the Railroad Revitalization and Regulatory Reform

Act of 1976 (45 U.S.C. 825) as in effect on September 30, 1988,

to the Alameda Corridor Transportation Authority to continue the
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–514

Alameda Corridor Project, including replacement of at-grade rail

lines with a below-grade corridor and widening of the adjacent

major highway: Provided, That loans not to exceed the following

amounts shall be made on or after the first day of the fiscal

year indicated:

Fiscal year 1997 ..................................................................................... $140,000,000

Fiscal year 1998 ..................................................................................... $140,000,000

Fiscal year 1999 ..................................................................................... $120,000,000

Provided further, That any loan authorized under this section shall

be structured with a maximum 30-year repayment after completion

of construction at an annual interest rate of not to exceed the

30-year United States Treasury rate and on such terms and conditions as deemed appropriate by the Secretary of Transportation:

Provided further, That specific provisions of section 505 (a), (b)

and (d) through (h) shall not apply: Provided further, That the

Alameda Corridor Transportation Authority shall be deemed to

be a financially responsible person for purposes of section 505

of the Act.

GRANTS TO THE NATIONAL RAILROAD PASSENGER CORPORATION

For additional expenses necessary for ‘‘Grants to the National

Railroad Passenger Corporation’’, $22,500,000 for operating losses,

to remain available until September 30, 1997: Provided, That

amounts made available shall only be used to continue service

on routes the National Railroad Passenger Corporation currently

plans to terminate.

RESEARCH AND SPECIAL PROGRAMS ADMINISTRATION

RESEARCH AND SPECIAL PROGRAMS

For additional expenses necessary for ‘‘Research and Special

Programs’’ to conduct vulnerability and threat assessments of the

nation’s transportation system, $3,000,000, to remain available until

September 30, 1999: Provided, That the entire amount is designated

by Congress as an emergency requirement pursuant to section

251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

NATIONAL TRANSPORTATION SAFETY BOARD

SALARIES AND EXPENSES

For an additional amount for ‘‘Salaries and Expenses’’,

$6,000,000, to reimburse other federal agencies for previously

incurred costs of recovering wreckage from TWA flight 800, and

for other costs related to the TWA 800 accident investigation: Provided, That the entire amount is designated by Congress as an

emergency requirement pursuant to section 251(b)(2)(D)(i) of the

Balanced Budget and Emergency Deficit Control Act of 1985, as

amended.

EMERGENCY FUND

For necessary expenses of the National Transportation Safety

Board for accident investigations, including hire of passenger motor

vehicles and aircraft; services as authorized by 5 U.S.C. 3109,
110 STAT. 3009–515 PUBLIC LAW 104–208—SEPT. 30, 1996

but at rates for individuals not to exceed the per diem rate equivalent to the rate for a GS–18; uniforms, or allowances therefor,

as authorized by law (5 U.S.C. 5901–5902), $1,000,000: Provided,

That the entire amount is designated by Congress as an emergency

requirement pursuant to section 251(b)(2)(D)(i) of the Balanced

Budget and Emergency Deficit Control Act of 1985, as amended.

GENERAL PROVISIONS

SEC. 5501. In fiscal year 1997, the Administrator of the Federal

Aviation Administration may establish at individual airports such

consortia of government and aviation industry representatives as

the Administrator may designate to provide advice on matters

related to aviation security and safety: Provided, That such consortia shall not be considered Federal advisory committees.

SEC. 5502. In cases where an emergency ocean condition causes

erosion of a bank protecting a scenic highway or byway, fiscal

year 1996 or fiscal year 1997 Federal Highway Administration

Emergency Relief funds can be used to halt the erosion and stabilize

the bank if such action is necessary to protect the highway from

imminent failure and is less expensive than highway relocation.

SEC. 5503. Of the funds deducted under 23 U.S.C. subsection

104(a) for fiscal year 1997, $30,000,000 shall be available for allocation to States authorized by section 1069(y) of Public Law 102–

240.

SEC. 5504. CONVEYANCE OF PROPERTY IN TRAVERSE CITY,

MICHIGAN. (a) AUTHORITY TO CONVEY.—The Secretary of Transportation (or any other official having control over the property

described in subsection (b)) shall expeditiously convey to the Traverse City Area Public School District in Traverse City, Michigan,

without consideration, all right, title, and interest of the United

States in and to the property identified, described, and determined

by the Secretary under subsection (b), subject to all easements

and other interests in the property held by any other person.

(b) IDENTIFICATION OF PROPERTY.—The Secretary shall identify,

describe, and determine the property to be conveyed pursuant to

this section.

(c) REVERSIONARY INTEREST.—In addition to any term or condition established pursuant to subsection (a) or (d), any conveyance

of property described in subsection (b) shall be subject to the condition that all right, title, and interest in and to the property so

conveyed shall immediately revert to the United States if the property, or any part thereof, ceases to be used by the Traverse City

Area Public School District.

(d) TERMS OF CONVEYANCE.—The conveyance of property under

this section shall be subject to such conditions as the Secretary

considers to be necessary to assure that—

(1) the pump room located on the property shall continue

to be operated and maintained by the United States for as

long as it is needed for this purpose;

(2) the United States shall have an easement of access

to the property for the purpose of operating and maintaining

the pump room; and

(3) the United States shall have the right, at any time,

to enter the property without notice for the purpose of operating

and maintaining the pump room.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–516

SEC. 5505. AUTHORITY TO CONVEY WHITEFISH POINT LIGHT

STATION LAND.

(a) AUTHORITY TO CONVEY.—

(1) IN GENERAL.—Except as otherwise provided in this section, the Secretary of the Interior (in this section referred

to as the ‘‘Secretary’’) may convey, by an appropriate means

of conveyance, all right, title, and interest of the United States

in 1 of the 3 parcels comprising the land on which the United

States Coast Guard Whitefish Point Light Station is situated

(in this section referred to as the ‘‘Property’’), to each of the

Great Lakes Shipwreck Historical Society, located in Sault

Ste. Marie, Michigan, the United States Fish and Wildlife Service, and the Michigan Audubon Society (each of which is

referred to in this section as a ‘‘recipient’’), subject to all easements, conditions, reservations, exceptions, and restrictions contained in prior conveyances of record.

(2) LIMITATION.—Notwithstanding paragraph (1), the Secretary shall retain for the United States all right, title, and

interest in—

(A) any historical artifact, including any lens or lantern, and

(B) the light, antennas, sound signal, towers, associated

lighthouse equipment, and any electronic navigation equipment, which are active aids to navigation,

which is located on the Property, or which relates to the Property.

(3) IDENTIFICATION OF THE PROPERTY.—The Secretary may

identify, describe, and determine the parcels to be conveyed

pursuant to this section.

(4) RIGHTS OF ACCESS.—If necessary to ensure access to

a public roadway for a parcel conveyed under this section,

the Secretary shall convey with the parcel an appropriate

appurtenant easement over another parcel conveyed under this

section.

(5) EASEMENT FOR PUBLIC ALONG SHORELINE.—In each

conveyance under this section of property located on the shoreline of Lake Superior, the Secretary shall retain for the public,

for public walkway purposes, a right-of-way along the shoreline

that extends 30 feet inland from the mean high water line.

(b) TERMS AND CONDITIONS.—

(1) IN GENERAL.—Any conveyance pursuant to subsection

(a) shall be made—

(A) without payment of consideration; and

(B) subject to such terms and conditions as the Secretary considers appropriate.

(2) MAINTENANCE OF NAVIGATION FUNCTIONS.—The Secretary shall ensure that any conveyance pursuant to this section

is subject to such conditions as the Secretary considers to

be necessary to assure that—

(A) the light, antennas, sound signal, towers, and associated lighthouse equipment, and any electronic navigation

equipment, which are located on the Property and which

are active aids to navigation shall continue to be operated

and maintained by the United States for as long as they

are needed for this purpose;
110 STAT. 3009–517 PUBLIC LAW 104–208—SEPT. 30, 1996

(B) the recipients may not interfere or allow interference in any manner with such aids to navigation without

express written permission from the United States;

(C) there is reserved to the United States the right

to relocate, replace, or add any aids to navigation, or make

any changes on any portion of the Property as may be

necessary for navigation purposes;

(D) the United States shall have the right, at any

time, to enter the Property without notice for the purpose

of maintaining aids to navigation;

(E) the United States shall have—

(i) an easement of access to and across the Property

for the purpose of maintaining the aids to navigation

and associated equipment in use on the Property; and

(ii) an easement for an arc of visibility; and

(F) the United States shall not be responsible for the

cost and expense of maintenance, repair, and upkeep of

the Property.

(3) MAINTENANCE OBLIGATION.—The recipients shall not

have any obligation to maintain any active aid to navigation

equipment on any parcel conveyed pursuant to this section.

(c) PROPERTY TO BE MAINTAINED IN ACCORDANCE WITH CERTAIN LAWS.—Each recipient shall maintain the parcel conveyed

to the recipient pursuant to subsection (a) in accordance with the

provisions of the National Historic Preservation Act (16 U.S.C.

470 et seq.), and other applicable laws.

(d) MAINTENANCE STANDARD.—Each recipient shall maintain

the parcel conveyed to the recipient pursuant to subsection (a),

at its own cost and expense, in a proper, substantial, and

workmanlike manner, including the easements of access, the easement for an arc of visibility, the nuisance easement, and the underground easement.

(e) SHARED USE AND OCCUPANCY AGREEMENT.—The Secretary

shall require, as a condition of each conveyance of property under

this section, that all of the recipients have entered into the same

agreement governing the shared use and occupancy of the existing

Whitefish Point Light Station facilities. The agreement shall be

drafted by the recipients and shall include—

(1) terms governing building occupancy and access of recipient staff and public visitors to public restrooms, the auditorium,

and the parking lot; and

(2) terms requiring that each recipient shall be responsible

for paying a pro rata share of the costs of operating and

maintaining the existing Whitefish Point Light Station facilities, that is based on the level of use and occupancy of the

facilities by the recipient.

(f) LIMITATIONS ON DEVELOPMENT AND IMPAIRING USES.—It

shall be a term of each conveyance under this section that—

(1) no development of new facilities or expansion of existing

facilities or infrastructure on property conveyed under this

section may occur, except for purposes of implementing the

Whitefish Point Comprehensive Plan of October 1992 or for

a gift shop, unless—

(A) each of the recipients consents to the development

or expansion in writing;
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–518

(B) there has been a reasonable opportunity for public

comment on the development or expansion, and full consideration has been given to such public comment as is provided; and

(C) the development or expansion is consistent with

preservation of the Property in its predominantly natural,

scenic, historic, and forested condition; and

(2) any use of the Property or any structure located on

the property which may impair or interfere with the conservation values of the Property is expressly prohibited.

(g) REVISIONARY INTEREST.—

(1) IN GENERAL.—All right, title, and interests in and to

property and interests conveyed under this section shall revert

to the United States and thereafter be administered by the

Secretary of Interior acting through the Director of the United

States Fish and Wildlife Service, if—

(A) in the case of such property and interests conveyed

to the Great Lakes Shipwreck Historical Society, the property or interests cease to be used for the purpose of historical interpretation;

(B) in the case of such property and interests conveyed

to the Michigan Audubon Society, the property or interests

cease to be used for the purpose of environmental protection, research, and interpretation; or

(C) in the case any property and interests conveyed

to a recipient referred to in subparagraph (A) or (B)—

(i) there is any violation of any term or condition

of the conveyance to that recipient; or

(ii) the recipient has ceased to exist.

(2) AUTHORITY TO ENFORCE REVERSIONARY INTEREST.—The

Secretary of the Interior, acting through the Director of the

United States Fish and Wildlife Service, shall have the authority—

(A) to determine for the United States Government

whether any act or omission of a recipient results in a

reversion of property and interests under paragraph (1);

and

(B) to initiate a civil action to enforce that reversion,

after notifying the recipient of the intent of the Secretary

of the Interior to initiate that action.

(3) MAINTENANCE OF NAVIGATION FUNCTIONS.—In the event

of a reversion of property under this subsection, the Secretary

of the Interior shall administer the property subject to any

conditions the Secretary of Transportation considers to be necessary to maintain the navigation functions.

SEC. 5506. CONVEYANCE OF LIGHTHOUSES.

(a) AUTHORITY TO CONVEY.—

(1) IN GENERAL.—The Secretary of Transportation or the

Secretary of the Interior, as appropriate, shall convey, by an

appropriate means of conveyance, all right, title, and interest

of the United States in and to each of the following properties:

(A) Saint Helena Island Light Station, located in MacKinac County, Moran Township, Michigan, to the Great

Lakes Lighthouse Keepers Association.

(B) Presque Isle Light Station, located in Presque Isle

Township, Michigan, to Presque Isle Township, Presque

Isle County, Michigan.
110 STAT. 3009–519 PUBLIC LAW 104–208—SEPT. 30, 1996

(2) IDENTIFICATION OF PROPERTY.—The Secretary may identify, describe, and determine the property to be conveyed under

this subsection.

(3) EXCEPTION.—The Secretary may not convey any historical artifact, including any lens or lantern, located on the property at or before the time of the conveyance.

(b) TERMS OF CONVEYANCE.—

(1) IN GENERAL.—The conveyance of property under this

section shall be made—

(A) without payment of consideration; and

(B) subject to the conditions required by this section

and other terms and conditions the Secretary may consider

appropriate.

(2) REVERSIONARY INTEREST.—In addition to any term or

condition established under this section, the conveyance of property under this subsection shall be subject to the condition

that all right, title, and interest in the property shall immediately revert to the United States if—

(A) the property, or any part of the property—

(i) ceases to be used as a nonprofit center for

the interpretation and preservation of maritime history;

(ii) ceases to be maintained in a manner that

ensures its present or future use as a Coast Guard

aid to navigation; or

(iii) ceases to be maintained in a manner consistent

with the provisions of the National Historic Preservation Act of 1966 (16 U.S.C. 470 et seq.); or

(B) at least 30 days before that reversion, the Secretary

of Transportation provides written notice to the owner that

the property is needed for national security purposes.

(3) MAINTENANCE OF NAVIGATION FUNCTIONS.—A conveyance of property under this section shall be made subject to

the conditions that the Secretary of Transportation considers

to be necessary to assure that—

(A) the lights, antennas, sound signal, electronic

navigation equipment, and associated lighthouse equipment located on the property conveyed, which are active

aids to navigation, shall continue to be operated and maintained by the United States for as long as they are needed

for this purpose;

(B) the owner of the property may not interfere or

allow interference in any manner with aids to navigation

without express written permission from the Secretary of

Transportation;

(C) there is reserved to the United States the right

to relocate, replace or add any aid to navigation or make

any changes to the property as may be necessary for

navigational purposes;

(D) the United States shall have the right, at any

time, to enter the property without notice for the purpose

of maintaining aids to navigation; and

(E) the United States shall have an easement of access

to and across the property for the purpose of maintaining

the aids to navigation in use on the property.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–520

(4) OBLIGATION LIMITATION.—The owner of property conveyed under this section is not required to maintain any active

aid to navigation equipment on the property.

(5) PROPERTY TO BE MAINTAINED IN ACCORDANCE WITH CERTAIN LAWS.—The owner of property conveyed under this section

shall maintain the property in accordance with the National

Historic Preservation Act of 1966 (16 U.S.C. 470 et seq.) and

other applicable laws.

(c) MAINTENANCE STANDARD.—The owner of any property conveyed under this section, at its own cost and expense, shall maintain

the property in a proper, substantial, and workmanlike manner.

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

(1) the term ‘‘owner’’ means the person identified in subsection a(1)(A) and (B), and includes any successor of assign

of that person.

(2) The term ‘‘Presque Isle Light Station’’ includes the

light tower, attached dwelling, detached dwelling, 3-car garage,

and any other improvements on that parcel of land.

CHAPTER 6

DEPARTMENT OF THE TREASURY

COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS

COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS FUND PROGRAM

ACCOUNT

For an additional amount for ‘‘Community Development Financial Institutions Fund Program Account’’ for grants, loans, and

technical assistance to qualifying community development lenders,

$5,000,000, to remain available until September 30, 1998, of which

$850,000 may be used for the cost of direct loans: Provided, That

the cost of direct loans, including the cost of modifying such loans,

shall be as defined in section 502 of the Congressional Budget

Act of 1974.

ENVIRONMENTAL PROTECTION AGENCY

SCIENCE AND TECHNOLOGY

For an additional amount for ‘‘Science and Technology’’,

$10,000,000, to remain available until September 30, 1998, to conduct health effects research to carry out the purposes of the Safe

Drinking Water Act Amendments of 1996, Public Law 104–182.

ENVIRONMENTAL PROGRAMS AND MANAGEMENT

For an additional amount for ‘‘Environmental Programs and

Management’’, $42,221,000, to remain available until September

30, 1998, of which $30,000,000 is to carry out the purposes of

the Safe Drinking Water Act Amendments of 1996, Public Law

104–182, and the purposes of the Food Quality Protection Act

of 1996, Public Law 104–170, and of which $10,221,000 is for

pesticide residue data collection for use in risk assessment activities.
110 STAT. 3009–521 PUBLIC LAW 104–208—SEPT. 30, 1996

STATE AND TRIBAL ASSISTANCE GRANTS

For an additional amount for ‘‘State and Tribal Assistance

Grants’’, $35,000,000, to remain available until expended, for a

grant to the City of Boston, Massachusetts, subject to an appropriate

cost share as determined by the Administrator, for the construction

of wastewater treatment facilities.

FEDERAL EMERGENCY MANAGEMENT AGENCY

SALARIES AND EXPENSES

For an additional amount for ‘‘Salaries and Expenses’’ to

increase Federal, State, and local preparedness for mitigating and

responding to the consequences of terrorism, $3,000,000.

EMERGENCY MANAGEMENT PLANNING AND ASSISTANCE

For an additional amount for ‘‘Emergency Management Planning and Assistance’’ to increase Federal, State, and local preparedness for mitigating and responding to the consequences of terrorism,

$12,000,000.

NATIONAL FLOOD INSURANCE FUND

Section 1309(a)(2) of the National Flood Insurance Act (42

U.S.C. 4016(a)(2)), is amended by striking ‘‘$1,000,000,000’’ and

inserting in lieu thereof ‘‘$1,500,000,000 through September 30,

1997, and $1,000,000,000 thereafter’’.

DEPARTMENT OF HEALTH AND HUMAN SERVICES

OFFICE OF CONSUMER AFFAIRS

For necessary expenses of the Office of Consumer Affairs,

including services authorized by 5 U.S.C. 3109, but at rates for

individuals not to exceed the per diem rate equivalent to the rate

for GS–18, $1,500,000: Provided, That none of the funds provided

under this heading may be made available for any other activities

within the Department of Health and Human Services.

NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

SCIENCE, AERONAUTICS AND TECHNOLOGY

For an additional amount for ‘‘Science, Aeronautics and Technology’’, $5,000,000, to remain available until September 30, 1998.

CHAPTER 7

INTERNATIONAL SECURITY ASSISTANCE

NONPROLIFERATION, ANTI-TERRORISM, DEMINING AND RELATED

PROGRAMS

For an additional amount for nonproliferation, anti-terrorism

and related programs and activities, $18,000,000, to carry out the

provisions of chapter 8 of part II of the Foreign Assistance Act

of 1961 for anti-terrorism assistance.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–522

FOREIGN MILITARY FINANCING PROGRAM

For an additional amount for grants to enable the President

to carry out the provisions of section 23 of the Arms Export Control

Act, $60,000,000.

PEACEKEEPING OPERATIONS

For necessary expenses to carry out the provisions of section

551 of the Foreign Assistance Act of 1961, $65,000,000: Provided,

That none of the funds appropriated under this paragraph shall

be obligated or expended except as provided through the regular

notification procedures of the Committees on Appropriations.

CHAPTER 8

GENERAL PROVISIONS

SEC. 5801. Of the amounts made available in Title IV of the

Department of Defense Appropriations Act, 1997, under the heading

‘‘Research, Development, Test and Evaluation, Defense-Wide’’,

$56,232,000 shall be made available only for the Corps Surfaceto-Air Missile (CORPS SAM) program.

SEC. 5802. There is hereby established on the books of the

Treasury an account, ‘‘Support for International Sporting Competitions, Defense’’ (hereinafter referred to in this section as the

‘‘Account’’) to be available until expended for logistical and security

support for international sporting competitions (other than pay

and non-travel-related allowances of members of the Armed Forces

of the United States, except for members of the reserve components

thereof called or ordered to active duty in connection with providing

such support): Provided, That there shall be credited to the Account:

(a) unobligated balances of the funds appropriated in Public Laws

103–335 and 104–61 under the headings ‘‘Summer Olympics’’; (b)

any reimbursements received by the Department of Defense in

connection with support to the 1993 World University Games; the

1994 World Cup Games; and the 1996 Games of the XXVI Olympiad

held in Atlanta, Georgia; (c) any reimbursements received by the

Department of Defense after the date of enactment of this Act

for logistical and security support provided to international sporting

competitions; and (d) amounts specifically appropriated to the

Account, all to remain available until expended: Provided further,

That none of the funds made available to the Account may be

obligated until 45 days after the congressional defense committees

have been notified in writing by the Secretary of Defense as to

the purpose for which these funds will be obligated.

SEC. 5803. In addition to the amounts made available in Title

IV of the Department of Defense Appropriations Act, 1997, under

the heading ‘‘Research, Development, Test and Evaluation, DefenseWide’’, $100,000,000 is hereby appropriated and made available

only for the Dual-Use Applications Program.

10 USC 2012

note.
110 STAT. 3009–523 PUBLIC LAW 104–208—SEPT. 30, 1996

DIVISION B—OREGON RESOURCE

CONSERVATION ACT OF 1996

SECTION 1. SHORT TITLE.

This Act may be cited as the ‘‘Oregon Resource Conservation

Act of 1996’’.

TITLE I—OPAL CREEK WILDERNESS

AND SCENIC RECREATION AREA

SEC. 101. SHORT TITLE.

This title may be cited as the ‘‘Opal Creek Wilderness and

Opal Creek Scenic Recreation Area Act of 1996’’.

SEC. 102. DEFINITIONS.

In this title:

(1) BULL OF THE WOODS WILDERNESS.—The term ‘‘Bull of

the Woods Wilderness’’ means the land designated as wilderness by section 3(4) of the Oregon Wilderness Act of 1984

(Public Law 98–328; 16 U.S.C. 1132 note).

(2) OPAL CREEK WILDERNESS.—The term ‘‘Opal Creek

Wilderness’’ means certain land in the Willamette National

Forest in the State of Oregon comprising approximately 12,800

acres, as generally depicted on the map entitled ‘‘Proposed

Opal Creek Wilderness and Scenic Recreation Area’’, dated

July 1996.

(3) SCENIC RECREATION AREA.—The term ‘‘Scenic Recreation

Area’’ means the Opal Creek Scenic Recreation Area, comprising approximately 13,000 acres, as generally depicted on the

map entitled ‘‘Proposed Opal Creek Wilderness and Scenic

Recreation Area’’, dated July 1996 and established under section 104(a)(3) of this title.

(4) SECRETARY.—The term ‘‘Secretary’’ means the Secretary

of Agriculture.

SEC. 103. PURPOSES.

The purposes of this title are:

(1) to establish a wilderness and scenic recreation area

to protect and provide for the enhancement of the natural,

scenic, recreational, historic, and cultural resources of the area

in the vicinity of Opal Creek;

(2) to protect and support the economy of the communities

in the Santiam Canyon; and

(3) to provide increased protection for an important drinking water source for communities served by the north Santiam

River.

SEC. 104. ESTABLISHMENT OF OPAL CREEK WILDERNESS AND SCENIC

RECREATION AREA.

(a) ESTABLISHMENT.—On a determination by the Secretary

under subsection (b)—

(1) the Opal Creek Wilderness, as depicted on the map

described in section 102(2), is hereby designated as wilderness,

subject to the provisions of the Wilderness Act of 1964, shall

16 USC 1132

note.

Opal Creek

Wilderness and

Opal Creek

Scenic Recreation

Area Act of 1996.

16 USC 545b

note.

Oregon Resource

Conservation Act

of 1996.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–524

become a component of the National Wilderness System, and

shall be known as the Opal Creek Wilderness;

(2) the part of the Bull of the Woods Wilderness that

is located in the Willamette National Forest shall be incorporated into the Opal Creek Wildnerness; and

(3) the Secretary shall establish the Opal Creek Scenic

Recreation Area in the Willamette National Forest in the State

of Oregon, comprising approximately 13,000 acres, as generally

depicted on the map described in section 102(3).

(b) CONDITIONS.—The designations in subsection (a) shall not

take effect unless the Secretary makes a determination, not later

than 2 years after the date of enactment of this title, that the

following conditions have been met:

(1) the following have been donated to the United States

in an acceptable condition and without encumbrances—

(A) all right, title, and interest in the following patented parcels of land—

(i) Santiam number 1, mineral survey number 992,

as described in patent number 39–92–0002, dated

December 11, 1991;

(ii) Ruth Quartz Mine number 2, mineral survey

number 994, as described in patent number 39–91–

0012, dated February 12, 1991;

(iii) Morning Star Lode, mineral survey number

993, as described in patent number 36–91–0011, dated

February 12, 1991;

(B) all right, title, and interest held by any entity

other than the Times Mirror Land and Timber Company,

its successors and assigns, in and to lands located in section

18, township 8 south, range 5 east, Marion County, Oregon,

Eureka numbers 6, 7, 8, and 13 mining claims; and

(C) an easement across the Hewitt, Starvation, and

Poor Boy Mill Sites, mineral survey number 990, as

described in patent number 36–91–0017, dated May 9,

1991. In the sole discretion of the Secretary, such easement

may be limited to administrative use if an alternative

access route, adequate and appropriate for public use, is

provided.

(2) a binding agreement has been executed by the Secretary

and the owners of record as of March 29, 1996, of the following

interests, specifying the terms and conditions for the disposition

of such interests to the United States Government—

(A) the lode mining claims known as Princess Lode,

Black Prince Lode, and King number 4 Lode, embracing

portions of sections 29 and 32, township 8 south, range

5 east, Willamette Meridian, Marion County, Oregon, the

claims being more particularly described in the field notes

and depicted on the plat of mineral survey number 887,

Oregon; and

(B) Ruth Quartz Mine number 1, mineral survey number 994, as described in patent number 39–91–0012, dated

February 12, 1991.

(c) ADDITIONS TO THE WILDERNESS AND SCENIC RECREATION

AREAS.—

(1) Lands or interests in lands conveyed to the United

States under this section shall be included in and become
110 STAT. 3009–525 PUBLIC LAW 104–208—SEPT. 30, 1996

part of, as appropriate, Opal Creek Wilderness or the Opal

Creek Scenic Recreation Area.

(2) On acquiring all or substantially all of the land located

in section 36, township 8 south, range 4 east, of the Willamette

Meridian, Marion County, Oregon, commonly known as the

Rosboro section, by exchange, purchase from a willing seller,

or by donation, the Secretary shall expand the boundary of

the Scenic Recreation Area to include such land.

(3) On acquiring all or substantially all of the land located

in section 18, township 8 south, range 5 east, Marion County,

Oregon, commonly known as the Times Mirror property, by

exchange, purchase from a willing seller, or by donation, such

land shall be included in and become a part of the Opal Creek

Wilderness.

SEC. 105. ADMINISTRATION OF THE SCENIC RECREATION AREA.

(a) IN GENERAL.—The Secretary shall administer the Scenic

Recreation Area in accordance with this title and the laws (including

regulations) applicable to the National Forest System.

(b) OPAL CREEK MANAGEMENT PLAN.—

(1) IN GENERAL.—Not later than 2 years after the date

of establishment of the Scenic Recreation Area, the Secretary,

in consultation with the advisory committee established under

section 106(a), shall prepare a comprehensive Opal Creek

Management Plan (Management Plan) for the Scenic Recreation

Area.

(2) INCORPORATION IN LAND AND RESOURCE MANAGEMENT

PLAN.—Upon its completion, the Opal Creek Management Plan

shall become part of the land and resource management plan

for the Willamette National Forest and supersede any conflicting provision in such land and resource management plan.

Nothing in this paragraph shall be construed to supersede

the requirements of the Endangered Species Act or the National

Forest Management Act or regulations promulgated under those

Acts, or any other law.

(3) REQUIREMENTS.—The Opal Creek Management Plan

shall provide for a broad range of land uses, including—

(A) recreation;

(B) harvesting of nontraditional forest products, such

as gathering mushrooms and material to make baskets;

and

(C) educational and research opportunities.

(4) PLAN AMENDMENTS.—The Secretary may amend the

Opal Creek Management Plan as the Secretary may determine

to be necessary, consistent with the procedures and purposes

of this title.

(c) RECREATION.—

(1) RECOGNITION.—Congress recognizes recreation as an

appropriate use of the Scenic Recreation Area.

(2) MINIMUM LEVELS.—The management plan shall permit

recreation activities at not less than the levels in existence

on the date of enactment of this title.

(3) HIGHER LEVELS.—The management plan may provide

for levels of recreation use higher than the levels in existence

on the date of enactment of this title if such uses are consistent

with the protection of the resource values of Scenic Recreation

Area.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–526

(4) The management plan may include public trail access

through section 28, township 8 south, range 5 east, Willamette

Meridian, to Battle Axe Creek, Opal Pool and other areas

in the Opal Creek Wilderness and the Opal Creek Scenic Recreation Area.

(d) TRANSPORTATION PLANNING.—

(1) IN GENERAL.—Except as provided in this subparagraph,

motorized vehicles shall not be permitted in the Scenic Recreation Area. To maintain reasonable motorized and other access

to recreation sites and facilities in existence on the date of

enactment of this title, the Secretary shall prepare a transportation plan for the Scenic Recreation Area that:

(A) evaluates the road network within the Scenic Recreation Area to determine which roads should be retained

and which roads should be closed;

(B) provides guidelines for transportation and access

consistent with this title;

(C) considers the access needs of persons with disabilities in preparing the transportation plan for the Scenic

Recreation Area;

(D) allows forest road 2209 beyond the gate to the

Scenic Recreation Area, as depicted on the map described

in 102(2), to be used by motorized vehicles only for administrative purposes and for access by private inholders, subject

to such terms and conditions as the Secretary may determine to be necessary; and

(E) restricts construction on or improvements to forest

road 2209 beyond the gate to the Scenic Recreation Area

to maintaining the character of the road as it existed

upon the date of enactment of this title, which shall not

include paving or widening. In order to comply with subsection 107(b) of this title, the Secretary may make

improvements to forest road 2209 and its bridge structures

consistent with the character of the road as it existed

on the date of enactment of this title.

(e) HUNTING AND FISHING.—

(1) IN GENERAL.—Subject to applicable Federal and State

law, the Secretary shall permit hunting and fishing in the

Scenic Recreation Area.

(2) LIMITATION.—The Secretary may designate zones in

which, and establish periods when, no hunting or fishing shall

be permitted for reasons of public safety, administration, or

public use and enjoyment of the Scenic Recreation Area.

(3) CONSULTATION.—Except during an emergency, as determined by the Secretary, the Secretary shall consult with the

Oregon State Department of Fish and Wildlife before issuing

any regulation under this subsection.

(f) TIMBER CUTTING.—

(1) IN GENERAL.—Subject to paragraph (2), the Secretary

shall prohibit the cutting and/or selling of trees in the Scenic

Recreation Area.

(2) PERMITTED CUTTING.—

(A) IN GENERAL.—Subject to subparagraph (B), the Secretary may allow the cutting of trees in the Scenic Recreation Area only—

(i) for public safety, such as to control the continued spread of a forest fire in the Scenic Recreation
110 STAT. 3009–527 PUBLIC LAW 104–208—SEPT. 30, 1996

Area or on land adjacent to the Scenic Recreation

Area;

(ii) for activities related to administration of the

Scenic Recreation Area, consistent with the Opal Creek

Management Plan; or

(iii) for removal of hazard trees along trails and

roadways.

(B) SALVAGE SALES.—The Secretary may not allow a

salvage sale in the Scenic Recreation Area.

(g) WITHDRAWAL.—

(1) Subject to valid existing rights, all lands in the Scenic

Recreation Area are withdrawn from—

(i) any form of entry, appropriation, or disposal under

the public land laws;

(ii) location, entry, and patent under the mining laws;

and

(iii) disposition under the mineral and geothermal leasing laws.

(h) BORNITE PROJECT.—

(1) Nothing in this title shall be construed to interfere

with or approve any exploration, mining, or mining-related

activity in the Bornite Project Area, depicted on the map

described in subsection 102(3), conducted in accordance with

applicable laws.

(2) Nothing in this title shall be construed to interfere

with the ability of the Secretary to approve and issue, or

deny, special use permits in connection with exploration, mining, and mining-related activities in the Bornite Project Area.

(3) Motorized vehicles, roads, structures, and utilities

(including but not limited to power lines and water lines) may

be allowed inside the Scenic Recreation Area to serve the activities conducted on land within the Bornite Project.

(4) After the date of enactment of this title, no patent

or claim shall be issued for any mining claim under the general

mining laws located within the Bornite Project Area.

(i) WATER IMPOUNDMENTS.—Notwithstanding the Federal

Power Act (16 U.S.C. 791a et seq.), the Federal Energy Regulatory

Commission may not license the construction of any dam, water

conduit, reservoir, powerhouse, transmission line, or other project

work in the Scenic Recreation Area, except as may be necessary

to comply with the provisions of subsection 105(h) with regard

to the Bornite Project.

(j) CULTURAL AND HISTORIC RESOURCE INVENTORY.—

(1) IN GENERAL.—Not later than 1 year after the date

of establishment of the Scenic Recreation Area, the Secretary

shall review and revise the inventory of the cultural and historic

resources on the public land in the Scenic Recreation Area

developed pursuant to the Oregon Wilderness Act of 1984 (Public Law 98–328; 16 U.S.C. 1132).

(2) INTERPRETATION.—Interpretive activities shall be developed under the management plan in consultation with State

and local historic preservation organizations and shall include

a balanced and factual interpretation of the cultural, ecological,

and industrial history of forestry and mining in the Scenic

Recreation Area.

(k) PARTICIPATION.—So that the knowledge, expertise, and

views of all agencies and groups may contribute affirmatively to
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–528

the most sensitive present and future use of the Scenic Recreation

Area and its various subareas for the benefit of the public:

(1) ADVISORY COUNCIL.—The Secretary shall consult on

a periodic and regular basis with the advisory council established under section 106 with respect to matters relating to

management of the Scenic Recreation Area.

(2) PUBLIC PARTICIPATION.—The Secretary shall seek the

views of private groups, individuals, and the public concerning

the Scenic Recreation Area.

(3) OTHER AGENCIES.—The Secretary shall seek the views

and assistance of, and cooperate with, any other Federal, State,

or local agency with any responsibility for the zoning, planning,

or natural resources of the Scenic Recreation Area.

(4) NONPROFIT AGENCIES AND ORGANIZATIONS.—The Secretary shall seek the views of any nonprofit agency or organization that may contribute information or expertise about the

resources and the management of the Scenic Recreation Area.

SEC. 106. ADVISORY COUNCIL.

(a) ESTABLISHMENT.—Not later than 90 days after the establishment of the Scenic Recreation Area, the Secretary shall establish

an advisory council for the Scenic Recreation Area.

(b) MEMBERSHIP.—The advisory council shall consist of not

more than 13 members, of whom—

(1) 1 member shall represent Marion County, Oregon, and

shall be designated by the governing body of the county;

(2) 1 member shall represent the State of Oregon and

shall be designated by the Governor of Oregon; and

(3) 1 member shall represent the city of Salem, and shall

be designated by the mayor of Salem, Oregon;

(4) 1 member from a city within a 25-mile radius of the

Opal Creek Scenic Recreation Area, to be designated by the

Governor of the State of Oregon from a list of candidates

provided by the mayors of the cities located within a 25-mile

radius of the Opal Creek Scenic Recreation Area; and

(5) not more than 9 members shall be appointed by the

Secretary from among persons who, individually or through

association with a national or local organization, have an

interest in the administration of the Scenic Recreation Area,

including, but not limited to, representatives of the timber

industry, environmental organizations, the mining industry,

inholders in the Opal Creek Wilderness and Scenic Recreation

Area, economic development interests and Indian Tribes.

(c) STAGGERED TERMS.—Members of the advisory council shall

serve for staggered terms of three years.

(d) CHAIRMAN.—The Secretary shall designate one member of

the advisory council as chairman.

(e) VACANCIES.—The Secretary shall fill a vacancy on the

advisory council in the same manner as the original appointment.

(f) COMPENSATION.—Members of the advisory council shall

receive no compensation for service on the advisory council.

SEC. 107. GENERAL PROVISIONS.

(a) LAND ACQUISITION.—

(1) IN GENERAL.—Subject to the other provisions of this

title the Secretary may acquire any lands or interests in land

in the Scenic Recreation Area or the Opal Creek Wilderness
110 STAT. 3009–529 PUBLIC LAW 104–208—SEPT. 30, 1996

that the Secretary determines are needed to carry out this

title.

(2) PUBLIC LAND.—Any lands or interests in land owned

by a State or a political subdivision of a State may be acquired

only by donation or exchange.

(3) CONDEMNATION.—Within the boundaries of the Opal

Creek Wilderness or the Scenic Recreation Area, the Secretary

may not acquire any privately owned land or interest in land

without the consent of the owner unless the Secretary finds

that—

(A) the nature of land use has changed significantly,

or the landowner has demonstrated intent to change the

land use significantly, from the use that existed on the

date of the enactment of this title; and

(B) acquisition by the Secretary of the land or interest

in land is essential to ensure use of the land or interest

in land in accordance with the purposes of this title or

the management plan prepared under section 105(b).

(4) Nothing in this title shall be construed to enhance

or diminish the condemnation authority available to the Secretary outside the boundaries of the Opal Creek Wilderness

or the Scenic Recreation Area.

(b) ENVIRONMENTAL RESPONSE ACTIONS AND COST RECOVERY.—

(1) RESPONSE ACTIONS.—Nothing in this title shall limit

the authority of the Secretary or a responsible party to conduct

an environmental response action in the Scenic Recreation Area

in connection with the release, threatened release, or cleanup

of a hazardous substance, pollutant, or contaminant, including

a response action conducted under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42

U.S.C. 9601 et seq.).

(2) LIABILITY.—Nothing in this title shall limit the authority of the Secretary or a responsible party to recover costs

related to the release, threatened release, or cleanup of any

hazardous substance or pollutant or contaminant in the Scenic

Recreation Area.

(c) MAPS AND DESCRIPTION.—

(1) IN GENERAL.—As soon as practicable after the date

of enactment of this title, the Secretary shall file a map and

a boundary description for the Opal Creek Wilderness and

for the Scenic Recreation Area with the Committee on

Resources of the House of Representatives and the Committee

on Energy and Natural Resources of the Senate.

(2) FORCE AND EFFECT.—The boundary description and map

shall have the same force and effect as if the description and

map were included in this title, except that the Secretary

may correct clerical and typographical errors in the boundary

description and map.

(3) AVAILABILITY.—The map and boundary description shall

be on file and available for public inspection in the Office

of the Chief of the Forest Service, Department of Agriculture.

(d) Nothing in this title shall interfere with any activity for

which a special use permit has been issued, has not been revoked,

and has not expired, before the date of enactment of this title,

subject to the terms of the permit.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–530

SEC. 108. ROSBORO LAND EXCHANGE.

(a) AUTHORIZATION.—Notwithstanding any other law, if the

Rosboro Lumber Company (referred to in this section as ‘‘Rosboro’’)

offers and conveys marketable title to the United States to the

land described in subsection (b), the Secretary of Agriculture shall

convey all right, title and interest held by the United States to

sufficient lands described in subsection (c) to Rosboro, in the order

in which they appear in subsection (c), as necessary to satisfy

the equal value requirements of subsection (d).

(b) LAND TO BE OFFERED BY ROSBORO.—The land referred to

in subsection (a) as the land to be offered by Rosboro shall comprise

Section 36, Township 8 South, range 4 east, Willamette Meridian.

(c) LAND TO BE CONVEYED BY THE UNITED STATES.—The land

referred to in subsection (a) as the land to be conveyed by the

United States shall comprise sufficient land from the following

prioritized list to be of equal value under subparagraph (d):

(1) Section 5, Township 17 South, Range 4 East, Lot 7

(37.63 acres).

(2) Section 2, Township 17 South, Range 4 East, Lot 3

(29.28 acres).

(3) Section 13, Township 17 South, Range 4 East, S1⁄2

SE1⁄4 (80 acres).

(4) Section 2, Township 17 South, Range 4 East, SW1⁄4

SW1⁄4 (40 acres).

(5) Section 2, Township 17 South, Range 4 East, NW1⁄4

SE1⁄4 (40 acres).

(6) Section 8, Township 17 South, Range 4 East, SE1⁄4

SW1⁄4 (40 acres).

(7) Section 11, Township 17 South, Range 4 East, W1⁄2

NW1⁄4 (80 acres).

(d) EQUAL VALUE.—The land and interests in land exchanged

under this section shall be of equal market value as determined

by nationally recognized appraisal standards, including, to the

extent appropriate, the Uniform Standards for Federal Land

Acquisition, the Uniform Standards of Professional Appraisal Practice, or shall be equalized by way of payment of cash pursuant

to the provisions of section 206(d) of the Federal Land Policy and

Management Act of 1976 (43 U.S.C. 1716(d)), and other applicable

law. The appraisal shall consider access costs for the parcels

involved.

(e) TIMETABLE.— (1) The exchange directed by this section shall be consummated not later than 120 days after the date Rosboro

offers and conveys the property described in subsection (b)

to the United States.

(2) The authority provided by this section shall lapse if

Rosboro fails to offer the land described in subsection (b) within

two years after the date of enactment of this title.

(f) Rosboro shall have the right to challenge in United States

District Court for the District of Oregon a determination of marketability under subsection (a) and a determination of value for the

lands described in subsections (b) and (c) by the Secretary of Agriculture. The Court shall have the authority to order the Secretary

to complete the transaction contemplated in this Section.

(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized

to be appropriated such sums as are necessary to carry out this

section.
110 STAT. 3009–531 PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 109. DESIGNATION OF ELKHORN CREEK AS A WILD AND SCENIC

RIVER.

Section 3(a) of the Wild and Scenic Rivers Act (16 U.S.C.

1274(a)) is amended by adding at the end the following:

‘‘( ) (A) ELKHORN CREEK.—The 6.4 mile segment traversing

federally administered lands from that point along the Willamette

National Forest boundary on the common section line between

Sections 12 and 13, Township 9 South, Range 4 East, Willamette

Meridian, to that point where the segment leaves federal ownership

along the Bureau of Land Management boundary in Section 1,

Township 9 South, Range 3 East, Willamette Meridian, in the

following classes:

‘‘(i) a 5.8-mile wild river area, extending from that point

along the Willamette National Forest boundary on the common

section line between Sections 12 and 13, Township 9 South,

Range 4 East, Willamette Meridian, to its confluence with

Buck Creek in Section 1, Township 9 South, Range 3 East,

Willamette Meridian, to be administered as agreed on by the

Secretaries of Agriculture and the Interior, or as directed by

the President; and

‘‘(ii) a 0.6-mile scenic river area, extending from the confluence with Buck Creek in Section 1, Township 9 South, Range

3 East, Willamette Meridian, to that point where the segment

leaves federal ownership along the Bureau of Land Management boundary in Section 1, Township 9 South, Range 3 East,

Willamette Meridian, to be administered by the Secretary of

Interior, or as directed by the President.

‘‘(B) Notwithstanding section 3(b) of this Act, the lateral boundaries of both the wild river area and the scenic

river area along Elkhorn Creek shall include an average

of not more than 640 acres per mile measured from the

ordinary high water mark on both sides of the river.’’

SEC. 110. ECONOMIC DEVELOPMENT.

(a) ECONOMIC DEVELOPMENT PLAN.—As a condition for receiving funding under subsection (b) of this section, the State of Oregon,

in consultation with Marion County and the Secretary of Agriculture, shall develop a plan for economic development projects

for which grants under this section may be used in a manner

consistent with this title and to benefit local communities in the

vicinity of the Opal Creek area. Such plan shall be based on an

economic opportunity study and other appropriate information.

(b) FUNDS PROVIDED TO THE STATES FOR GRANTS.—Upon

completion of the Opal Creek Management Plan, and receipt of

the plan referred to in subsection (a) of this section, the Secretary

shall provide, subject to appropriations, $15,000,000, to the State

of Oregon. Such funds shall be used to make grants or loans

for economic development projects that further the purposes of

this title and benefit the local communities in the vicinity of Opal

Creek.

(c) REPORT.—The State of Oregon shall—

(1) prepare and provide the Secretary and Congress with

an annual report on the use of the funds made available under

this section;

(2) make available to the Secretary and to Congress, upon

request, all accounts, financial records, and other information
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–532

related to grants and loans made available pursuant to this

section; and

(3) as loans are repaid, make additional grants and loans

with the money made available for obligation by such repayments.

TITLE II—UPPER KLAMATH BASIN

SEC. 201. UPPER KLAMATH BASIN ECOLOGICAL RESTORATION

PROJECTS.

(a) DEFINITIONS.—In this section:

(1) ECOSYSTEM RESTORATION OFFICE.—The term ‘‘Ecosystem Restoration Office’’ means the Klamath Basin Ecosystem Restoration Office operated cooperatively by the United

States Fish and Wildlife Service, Bureau of Reclamation,

Bureau of Land Management, and Forest Service.

(2) WORKING GROUP.—The term ‘‘Working Group’’ means

the Upper Klamath Basin Working Group, established before

the date of enactment of this title, consisting of members nominated by their represented groups, including:

(A) 3 tribal members;

(B) 1 representative of the city of Klamath Falls,

Oregon;

(C) 1 representative of Klamath County, Oregon;

(D) 1 representative of institutions of higher education

in the Upper Klamath Basin;

(E) 4 representatives of the environmental community,

including at least one such representative from the State

of California with interests in the Klamath Basin National

Wildlife Refuge Complex;

(F) 4 representatives of local businesses and industries,

including at least one representative of the wood products

industry and one representative of the ocean commercial

fishing industry and/or the recreational fishing industry

based in either Oregon or California;

(G) 4 representatives of the ranching and farming

community, including representatives of Federal lease-land

farmers and ranchers and of private land farmers and

ranchers in the Upper Klamath Basin;

(H) 2 representatives from State of Oregon agencies

with authority and responsibility in the Klamath River

Basin, including one from the Oregon Department of Fish

and Wildlife and one from the Oregon Water Resources

Department;

(I) 4 representatives from the local community;

(J) 1 representative each from the following Federal

resource management agencies in the Upper Klamath

Basin: Fish and Wildlife Service, Bureau of Reclamation,

Bureau of Land Management, Bureau of Indian Affairs,

Forest Service, Natural Resources Conservation Service,

National Marine Fisheries Service and Ecosystem Restoration Office; and

(K) 1 representative of the Klamath County Soil and

Water Conservation District.

(3) SECRETARY.—The term ‘‘Secretary’’ means the Secretary

of the Interior.
110 STAT. 3009–533 PUBLIC LAW 104–208—SEPT. 30, 1996

(4) TASK FORCE.—The term ‘‘Task Force’’ means the Klamath River Basin Fisheries Task Force as established by the

Klamath River Basin Fishery Resource Restoration Act (Public

Law 99–552, 16 U.S.C. 460ss–3, et. seq.).

(5) COMPACT COMMISSION.—The term ‘‘Compact Commission’’ means the Klamath River Basin Compact Commission

created pursuant to the Klamath River Compact Act of 1954.

(6) CONSENSUS.—The term ‘‘consensus’’ means a unanimous

agreement by the Working Group members present and consisting of at least a quorum at a regularly scheduled business

meeting.

(7) QUORUM.—The term ‘‘quorum’’ means one more than

half of those qualified Working Group members appointed and

eligible to serve.

(8) TRINITY TASK FORCE.—The term ‘‘Trinity Task Force’’

means the Trinity River Restoration Task Force created by

Public Law 98–541, as amended by Public Law 104–143.

(b) IN GENERAL.—

(1) The Working Group through the Ecosystem Restoration

Office, with technical assistance from the Secretary, will propose ecological restoration projects, economic development and

stability projects, and projects designed to reduce the impacts

of drought conditions to be undertaken in the Upper Klamath

Basin based on a consensus of the Working Group membership.

(2) The Secretary shall pay, to the greatest extent feasible,

up to 50 percent of the cost of performing any project approved

by the Secretary or his designee, up to a total amount of

$1,000,000 during each of fiscal years 1997 through 2001.

(3) Funds made available under this title through the

Department of the Interior or the Department of Agriculture

shall be distributed through the Ecosystem Restoration Office.

(4) The Ecosystem Restoration Office may utilize not more

than 15 percent of all Federal funds administered under this

section for administrative costs relating to the implementation

of this title.

(5) All funding recommendations developed by the Working

Group shall be based on a consensus of Working Group members.

(c) COORDINATION.—

(1) The Secretary shall formulate a cooperative agreement

among the Working Group, the Task Force, the Trinity Task

Force and the Compact Commission for the purposes of ensuring that projects proposed and funded through the Working

Group are consistent with other basin-wide fish and wildlife

restoration and conservation plans, including but not limited

to plans developed by the Task Force and the Compact Commission.

(2) To the greatest extent practicable, the Working Group

shall provide notice to, and accept input from, two members

each of the Task Force, the Trinity Task Force, and the Compact

Commission, so appointed by those entities, for the express

purpose of facilitating better communication and coordination

regarding additional basin-wide fish and wildlife and ecosystem

restoration and planning efforts. The roles and relationships

of the entities involved shall be clarified in the cooperative

agreement.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–534

(d) PUBLIC MEETINGS.—The Working Group shall conduct all

meetings subject to applicable open meeting and public participation

laws. The chartering requirements of 5 U.S.C. App 2 ss 1–15

are hereby deemed to have been met by this section.

(e) TERMS AND VACANCIES.—Working Group members shall

serve for 3-year terms, beginning on the date of enactment of

this title. Vacancies which occur for any reason after the date

of enactment of this title shall be filled by direct appointment

of the governor of the State of Oregon, in consultation with the

Secretary of the Interior and the Secretary of Agriculture, in accordance with nominations from the appropriate groups, interests, and

government agencies outlined in subsection (a)(2).

(f) RIGHTS, DUTIES AND AUTHORITIES UNAFFECTED.—The Working Group will supplement, rather than replace, existing efforts

to manage the natural resources of the Klamath Basin. Nothing

in this title affects any legal right, duty or authority of any person

or agency, including any member of the working group.

(g) AUTHORIZATION OF APPROPRIATIONS.—There are authorized

to be appropriated to carry out this title $1,000,000 for each of

fiscal years 1997 through 2002.

TITLE III—DESCHUTES BASIN

SEC. 301. DESCHUTES BASIN ECOSYSTEM RESTORATION PROJECTS.

(a) DEFINITIONS.—In this section:

(1) WORKING GROUP.—The term ‘‘Working Group’’ means

the Deschutes River Basin Working Group established before

the date of enactment of this title, consisting of members nominated by their represented groups, including:

(A) 5 representatives of private interests including one

each from hydroelectric production, livestock grazing, timber, land development, and recreation/tourism;

(B) 4 representatives of private interests including two

each from irrigated agriculture and the environmental

community;

(C) 2 representatives from the Confederated Tribes

of the Warm Springs Reservation of Oregon;

(D) 2 representatives from Federal agencies with

authority and responsibility in the Deschutes River Basin,

including one from the Department of the Interior and

one from the Agriculture Department;

(E) 2 representatives from the State of Oregon agencies

with authority and responsibility in the Deschutes River

Basin, including one from the Oregon Department of Fish

and Wildlife and one from the Oregon Water Resources

Department; and

(F) 4 representatives from county or city governments

within the Deschutes River Basin county and/or city

governments.

(2) SECRETARY.—The term ‘‘Secretary’’ means the Secretary

of the Interior.

(3) FEDERAL AGENCIES.—The term ‘‘Federal agencies’’

means agencies and departments of the United States, including, but not limited to, the Bureau of Reclamation, Bureau

of Indian Affairs, Bureau of Land Management, Fish and Wildlife Service, Forest Service, Natural Resources Conservation
110 STAT. 3009–535 PUBLIC LAW 104–208—SEPT. 30, 1996

Service, Farm Services Agency, the National Marine Fisheries

Service, and the Bonneville Power Administration.

(4) CONSENSUS.—The term ‘‘consensus’’ means a unanimous

agreement by the Working Group members present and constituting at least a quorum at a regularly scheduled business

meeting.

(5) QUORUM.—The term ‘‘quorum’’ means one more than

half of those qualified Working Group members appointed and

eligible to serve.

(b) IN GENERAL.—

(1) The Working Group will propose ecological restoration

projects on both Federal and non-Federal lands and waters

to be undertaken in the Deschutes River Basin based on a

consensus of the Working Group, provided that such projects,

when involving Federal land or funds, shall be proposed to

the Bureau of Reclamation in the Department of the Interior

and any other Federal agency with affected land or funds.

(2) The Working Group will accept donations, grants or

other funds and place such funds received into a trust fund,

to be expended on ecological restoration projects which, when

involving Federal land or funds, are approved by the affected

Federal agency.

(3) The Bureau of Reclamation shall pay from funds authorized under subsection (h) of this title up to 50 percent of

the cost of performing any project proposed by the Working

Group and approved by the Secretary, up to a total amount

of $1,000,000 during each of the fiscal years 1997 through

2001.

(4) Non-Federal contributions to project costs for purposes

of computing the Federal matching share under paragraph

(3) of this subsection may include in-kind contributions.

(5) Funds authorized in subsection (h) of this title shall

be maintained in and distributed by the Bureau of Reclamation

in the Department of the Interior. The Bureau of Reclamation

shall not expend more than 5 percent of amounts appropriated

pursuant to subsection (h) for Federal administration of such

appropriations pursuant to this title.

(6) The Bureau of Reclamation is authorized to provide

by grant to the Working Group not more than 5 percent of

funds appropriated pursuant to subsection (h) of this title for

not more than 50 percent of administrative costs relating to

the implementation of this title.

(7) The Federal agencies with authority and responsibility

in the Deschutes River Basin shall provide technical assistance

to the Working Group and shall designate representatives to

serve as members of the Working Group.

(8) All funding recommendations developed by the Working

Group shall be based on a consensus of the Working Group

members.

(c) PUBLIC NOTICE AND PARTICIPATION.—The Working Group

shall conduct all meetings subject to applicable open meeting and

public participation laws. The chartering requirements of 5 U.S.C.

App 2 ss 1–15 are hereby deemed to have been met by this section.

(d) PRIORITIES.—The Working Group shall give priority to voluntary market-based economic incentives for ecosystem restoration

including, but not limited to, water leases and purchases; land

leases and purchases; tradable discharge permits; and acquisition
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–536

of timber, grazing, and land development rights to implement plans,

programs, measures, and projects.

(e) TERMS AND VACANCIES.—Members of the Working Group

representing governmental agencies or entities shall be named by

the represented government agency. Members of the Working Group

representing private interests shall be named in accordance with

the articles of incorporation and bylaws of the Working Group.

Representatives from Federal agencies will serve for terms of 3

years. Vacancies which occur for any reason after the date of

enactment of this title shall be filled in accordance with this title.

(f) ADDITIONAL PROJECTS.—Where existing authority and appropriations permit, Federal agencies may contribute to the

implementation of projects recommended by the Working Group

and approved by the Secretary.

(g) RIGHTS, DUTIES AND AUTHORITIES UNAFFECTED.—The Working Group will supplement, rather than replace, existing efforts

to manage the natural resources of the Deschutes Basin. Nothing

in this title affects any legal right, duty or authority of any person

or agency, including any member of the working group.

(h) AUTHORIZATION OF APPROPRIATIONS.—There are authorized

to be appropriated to carry out this title $1,000,000 for each of

fiscal years 1997 through 2001.

TITLE IV—MOUNT HOOD CORRIDOR

SEC. 401. LAND EXCHANGE.

(a) AUTHORIZATION.—Notwithstanding any other law, if Longview Fibre Company (referred to in this section as ‘‘Longview’’)

offers and conveys title that is acceptable to the United States

to some or all of the land described in subsection (b), the Secretary

of the Interior (referred to in this section as the ‘‘Secretary’’) shall

convey to Longview title to some or all of the land described in

subsection (c), as necessary to satisfy the requirements of subsection

(d).

(b) LAND TO BE OFFERED BY LONGVIEW.—The land referred

to in subsection (a) as the land to be offered by Longview are

those lands depicted on the map entitled ‘‘Mt. Hood Corridor Land

Exchange Map’’, dated July 18, 1996.

(c) LAND TO BE CONVEYED BY THE SECRETARY.—The land

referred to in subsection (a) as the land to be conveyed by the

Secretary are those lands depicted on the map entitled ‘‘Mt. Hood

Corridor Land Exchange Map’’, dated July 18, 1996.

(d) EQUAL VALUE.—The land and interests in land exchanged

under this section shall be of equal market value as determined

by nationally recognized appraisal standards, including, to the

extent appropriate, the Uniform Standards for Federal Land

Acquisition, the Uniform Standards of Professional Appraisal Practice, or shall be equalized by way of payment of cash pursuant

to the provisions of section 206(d) of the Federal Land Policy and

Management Act of 1976 (43 U.S.C. 1716(d)), and other applicable

law.

(e) REDESIGNATION OF LAND TO MAINTAIN REVENUE FLOW.—

So as to maintain the current flow of revenue from land subject

to the Act entitled ‘‘An Act relating to the revested Oregon and

California Railroad and reconveyed Coos Bay Wagon Road grant

land situated in the State of Oregon’’, approved August 28, 1937
110 STAT. 3009–537 PUBLIC LAW 104–208—SEPT. 30, 1996

(43 U.S.C. 1181a et seq.), the Secretary may redesignate public

domain land located in and west of Range 9 East, Willamette

Meridian, Oregon, as land subject to that Act.

(f) TIMETABLE.—The exchange directed by this section shall

be consummated not later than 1 year after the date of enactment

of this title.

(g) WITHDRAWAL OF LANDS.—All lands managed by the Department of the Interior, Bureau of Land Management, located in

Townships 2 and 3 South, Ranges 6 and 7 East, Willamette Meridian, which can be seen from the right-of-way of U.S. Highway

26 (in this section, such lands are referred to as the ‘‘Mt. Hood

Corridor Lands’’), shall be managed primarily for the protection

or enhancement of scenic qualities. Management prescriptions for

other resource values associated with these lands shall be planned

and conducted for purposes other than timber harvest, so as not

to impair the scenic qualities of the area.

(h) TIMBER CUTTING.—Timber cutting may be conducted on

Mt. Hood Corridor Lands following a resource-damaging catastrophic event. Such cutting may only be conducted to achieve

the following resource management objectives, in compliance with

the current land use plans—

(1) to maintain safe conditions for the visiting public;

(2) to control the continued spread of forest fire;

(3) for activities related to administration of the Mt. Hood

Corridor Lands; or

(4) for removal of hazard trees along trails and roadways.

(i) ROAD CLOSURE.—The forest road gate located on Forest

Service Road 2503, located in T. 2 S., R. 6 E., sec. 14, shall

remain closed and locked to protect resources and prevent illegal

dumping and vandalism. Access to this road shall be limited to—

(1) Federal and State officers and employees acting in

an official capacity;

(2) employees and contractors conducting authorized activities associated with the telecommunication sites located in T.

2 S., R. 6 E., sec. 14; and

(3) the general public for recreational purposes, except

that all motorized vehicles will be prohibited.

(j) NEPA EXEMPTION.—The National Environmental Policy Act

of 1969 (P.L. 91–190) shall not apply to this section for one year

after the date of enactment of this title.

(k) AUTHORIZATION OF APPROPRIATIONS.—There are authorized

to be appropriated such sums as are necessary to carry out this

section.

TITLE V—COQUILLE TRIBAL FOREST

SEC. 501. CREATION OF THE COQUILLE FOREST.

(a) The Coquille Restoration Act (P.L. 101–42) is amended

by inserting at the end of section 5 the following:

‘‘(d) CREATION OF THE COQUILLE FOREST.— ‘‘(1) DEFINITIONS.—In this subsection:

‘‘(A) the term ‘Coquille Forest’ means certain lands

in Coos County, Oregon, comprising approximately 5,400

acres, as generally depicted on the map entitled ‘Coquille

Forest Proposal’, dated July 8, 1996.

25 USC 715c.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–538

‘‘(B) the term ‘Secretary’ means the Secretary of the

Interior.

‘‘(C) the term ‘the Tribe’ means the Coquille Tribe

of Coos County, Oregon.

‘‘(2) MAP.—The map described in subparagraph (d)(1)(A),

and such additional legal descriptions which are applicable,

shall be placed on file at the local District Office of the Bureau

of Land Management, the Agency Office of the Bureau of Indian

Affairs, and with the Senate Committee on Energy and Natural

Resources and the House Committee on Resources.

‘‘(3) INTERIM PERIOD.—From the date of enactment of this

subsection until two years after the date of enactment of this

subsection, the Bureau of Land Management shall:

‘‘(A) retain Federal jurisdiction for the management

of lands designated under this subsection as the Coquille

Forest and continue to distribute revenues from such lands

in a manner consistent with existing law; and,

‘‘(B) prior to advertising, offering or awarding any timber sale contract on lands designated under this subsection

as the Coquille Forest, obtain the approval of the Assistant

Secretary for Indian Affairs, acting on behalf of and in

consultation with the Tribe.

(4) TRANSITION PLANNING AND DESIGNATION.—

‘‘(A) During the two year interim period provided for

in paragraph (3), the Assistant Secretary for Indian Affairs,

acting on behalf of and in consultation with the Tribe,

is authorized to initiate development of a forest management plan for the Coquille Forest. The Secretary, acting

through the Director of the Bureau of Land Management,

shall cooperate and assist in the development of such plan

and in the transition of forestry management operations

for the Coquille Forest to the Assistant Secretary for Indian

Affairs.

‘‘(B) Two years after the date of enactment of this

subsection, the Secretary shall take the lands identified

under subparagraph (d)(1)(A) into trust, and shall hold

such lands in trust, in perpetuity, for the Coquille Tribe.

Such lands shall be thereafter designated as the Coquille

Forest.

‘‘(C) So as to maintain the current flow of revenue

from land subject to the Act entitled ‘An Act relating to

the revested Oregon and California Railroad and reconveyed Coos Bay Wagon Road grant land situated in the

State of Oregon’ (the O&C Act), approved August 28, 1937

(43 U.S.C. 1181a et seq.), the Secretary shall redesignate,

from public domain lands within the tribe’s service area,

as defined in this Act, certain lands to be subject to the

O&C Act. Lands redesignated under this subparagraph

shall not exceed lands sufficient to constitute equivalent

timber value as compared to lands constituting the Coquille

Forest.

‘‘(5) MANAGEMENT.—The Secretary of Interior, acting

through the Assistant Secretary for Indian Affairs, shall manage the Coquille Forest under applicable State and Federal

forestry and environmental protection laws, and subject to critical habitat designations under the Endangered Species Act,

and subject to the standards and guidelines of Federal forest
110 STAT. 3009–539 PUBLIC LAW 104–208—SEPT. 30, 1996

plans on adjacent or nearby Federal lands, now and in the

future. The Secretary shall otherwise manage the Coquille Forest in accordance with the laws pertaining to the management

of Indian Trust lands and shall distribute revenues in accord

with Public Law 101–630, 25 U.S.C. 3107.

‘‘(A) Unprocessed logs harvested from the Coquille Forest shall be subject to the same Federal statutory restrictions on export to foreign Nations that apply to unprocessed

logs harvested from Federal lands.

‘‘(B) Notwithstanding any other provision of law, all

sales of timber from land subject to this subsection shall

be advertised, offered and awarded according to competitive

bidding practices, with sales being awarded to the highest

responsible bidder.

‘‘(6) INDIAN SELF DETERMINATION ACT AGREEMENT.—No

sooner than two years after the date of enactment of this

subsection, the Secretary may, upon a satisfactory showing

of management competence and pursuant to the Indian SelfDetermination Act (25 U.S.C. 450 et seq.), enter into a binding

Indian self-determination agreement (agreement) with the

Coquille Indian Tribe. Such agreement may provide for the

tribe to carry out all or a portion of the forest management

for the Coquille Forest.

‘‘(A) Prior to entering such an agreement, and as a

condition of maintaining such an agreement, the Secretary

must find that the Coquille Tribe has entered into a binding

memorandum of agreement (MOA) with the State of

Oregon, as required under paragraph 7.

‘‘(B) The authority of the Secretary to rescind the

Indian self-determination agreement shall not be encumbered.

‘‘(i) The Secretary shall rescind the agreement

upon a demonstration that the tribe and the State

of Oregon are no longer engaged in a memorandum

of agreement as required under paragraph 7.

‘‘(ii) The Secretary may rescind the agreement on

a showing that the Tribe has managed the Coquille

Forest in a manner inconsistent with this subsection,

or the Tribe is no longer managing, or capable of

managing, the Coquille Forest in a manner consistent

with this subsection.

‘‘(7) MEMORANDUM OF AGREEMENT.—The Coquille Tribe

shall enter into a memorandum of agreement (MOA) with the

State of Oregon relating to the establishment and management

of the Coquille Forest. The MOA shall include, but not be

limited to, the terms and conditions for managing the Coquille

Forest in a manner consistent with paragraph (5) of this subsection, preserving public access, advancing jointly-held

resource management goals, achieving tribal restoration objectives and establishing a coordinated management framework.

Further, provisions set forth in the MOA shall be consistent

with federal trust responsibility requirements applicable to

Indian trust lands and paragraph (5) of this subsection.

‘‘(8) PUBLIC ACCESS.—The Coquille Forest shall remain

open to public access for purposes of hunting, fishing, recreation

and transportation, except when closure is required by state

or federal law, or when the Coquille Indian Tribe and the
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–540

State of Oregon agree in writing that restrictions on access

are necessary or appropriate to prevent harm to natural

resources, cultural resources or environmental quality; Provided, That the State of Oregon’s agreement shall not be

required when immediate action is necessary to protect

archaeological resources.

‘‘(9) JURISDICTION.—

‘‘(A) The United States District Court for the District

of Oregon shall have jurisdiction over actions against the

Secretary arising out of claims that this subsection has

been violated. Consistent with existing precedents on

standing to sue, any affected citizen may bring suit against

the Secretary for violations of this subsection, except that

suit may not be brought against the Secretary for claims

that the MOA has been violated. The Court has the authority to hold unlawful and set aside actions pursuant to

this subsection that are arbitrary and capricious, an abuse

of discretion, or otherwise an abuse of law.

‘‘(B) The United States District Court for the District

of Oregon shall have jurisdiction over actions between the

State of Oregon and the Tribe arising out of claims of

breach of the MOA.

‘‘(C) Unless otherwise provided for by law, remedies

available under this subsection shall be limited to equitable

relief and shall not include damages.

‘‘(10) STATE REGULATORY AND CIVIL JURISDICTION.—In addition to the jurisdiction described in paragraph 7 of this subsection, the State of Oregon may exercise exclusive regulatory

civil jurisdiction, including but not limited to adoption and

enforcement of administrative rules and orders, over the following subjects:

‘‘(A) management, allocation and administration of fish

and wildlife resources, including but not limited to

establishment and enforcement of hunting and fishing seasons, bag limits, limits on equipment and methods, issuance

of permits and licenses, and approval or disapproval of

hatcheries, game farms, and other breeding facilities; Provided, That nothing herein shall be construed to permit

the State of Oregon to manage fish or wildlife habitat

on Coquille Forest lands;

‘‘(B) allocation and administration of water rights,

appropriation of water and use of water;

‘‘(C) regulation of boating activities, including equipment and registration requirements, and protection of the

public’s right to use the waterways for purposes of boating

or other navigation;

‘‘(D) fills and removals from waters of the State, as

defined in Oregon law;

‘‘(E) protection and management of the State’s proprietary interests in the beds and banks of navigable waterways;

‘‘(F) regulation of mining, mine reclamation activities,

and exploration and drilling for oil and gas deposits;

‘‘(G) regulation of water quality, air quality (including

smoke management), solid and hazardous waste, and

remediation of releases of hazardous substances;
110 STAT. 3009–541 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(H) regulation of the use of herbicides and pesticides;

and

‘‘(I) enforcement of public health and safety standards,

including standards for the protection of workers, well

construction and codes governing the construction of

bridges, buildings, and other structures.

‘‘(11) SAVINGS CLAUSE, STATE AUTHORITY.— ‘‘(A) Nothing in this subsection shall be construed to

grant tribal authority over private or State-owned lands.

‘‘(B) To the extend that the State of Oregon is regulating the foregoing areas pursuant to a delegated Federal

authority or a Federal program, nothing in this subsection

shall be construed to enlarge or diminish the State’s authority under such law.

‘‘(C) Where both the State of Oregon and the United

States are regulating, nothing herein shall be construed

to alter their respective authorities.

‘‘(D) To the extent that Federal law authorizes the

Coquille Indian Tribe to assume regulatory authority over

an area, nothing herein shall be construed to enlarge or

diminish the tribe’s authority to do so under such law.

‘‘(E) Unless and except to the extent that the tribe

has assumed jurisdiction over the Coquille Forest pursuant

to Federal law, or otherwise with the consent of the State,

the State of Oregon shall have jurisdiction and authority

to enforce its laws addressing the subjects listed in subparagraph 10 of this subsection on the Coquille Forest against

the Coquille Indian Tribe, its members and all other persons and entities, in the same manner and with the same

remedies and protections and appeal rights as otherwise

provided by general Oregon law. Where the State of Oregon

and Coquille Indian Tribe agree regarding the exercise

of tribal civil regulatory jurisdiction over activities on the

Coquille Forest lands, the tribe may exercise such jurisdiction as its agreed upon.

‘‘(12) In the event of a conflict between Federal and State

law under this subsection, Federal law shall control.’’

TITLE VI—BULL RUN WATERSHED

PROTECTION

SEC. 601. The first sentence of section 2(a) of Public Law

95–200 is amended after ‘‘referred to in this subsection (a)’’ by

striking ‘‘2(b)’’ and inserting in lieu thereof ‘‘2(c)’’.

SEC. 602. The first sentence of section 2(b) of Public Law

95–200 is amended after ‘‘the policy set forth in subsection (a)’’

by inserting ‘‘and (b)’’.

SEC. 603. Section 2(b) of Public Law 95–200 is redesigned

as ‘‘2(c)’’.

SEC. 604 (a) Public Law 95–200 is amended by adding a new

subsection 2(b) immediately after subsection 2(a), as follows:

‘‘(b) TIMBER CUTTING.—

(1) IN GENERAL.—Subject to paragraph (2), the Secretary

of Agriculture shall prohibit the cutting of trees in that part

of the unit consisting of the hydrographic boundary of the

Bull Run River Drainage, including certain lands within the

16 USC 482b

note.

16 USC 482b

note.

16 USC 482b

note.

16 USC 482b

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–542

unit and located below the headworks of the city of Portland,

Oregon’s water storage and delivery project, and as depicted

in a map dated July 22, 1996 and entitled ‘‘Bull Run River

Drainage’’.

(2) PERMITTED CUTTING.—

(A) IN GENERAL.—Subject to subparagraph (B), the Secretary of Agriculture shall prohibit the cutting of trees

in the area described in paragraph (1).

(B) PERMITTED CUTTING.—Subject to subparagraph (C),

the Secretary may only allow the cutting of trees in the

area described in paragraph (1)—

(i) for the protection or enhancement of water quality in the area described in paragraph (1); or

(ii) for the protection, enhancement, or maintenance of water quantity available from the area

described in paragraph (1); or

(iii) for the construction, expansion, protection or

maintenance of municipal water supply facilities; or

(iv) for the construction, expansion, protection or

maintenance of facilities for the transmission of energy

through and over the unit or previously authorized

hydroelectric facilities or hydroelectric projects associated with municipal water supply facilities.

(C) SALVAGE SALES.—The Secretary of Agriculture may

not authorize a salvage sale in the area described in paragraph (1).’’

(b) Redesignate subsequent subsections of Public Law 95–200

accordingly.

SEC. 605. REPORT TO CONGRESS.

(a) The Secretary of Agriculture shall, in consultation with

the city of Portland and other affected parties, undertake a study

of that part of the Little Sandy Watershed that is within the

unit (hereinafter referred to as the ‘‘study area’’), as depicted on

the map described in section 604 of this title.

(b) The study referred to in (a) shall determine—

(1) the impact of management activities within the study

area on the quality of drinking water provided to the Portland

Metropolitan area;

(2) the identify and location of certain ecological features

within the study area, including late successional forest

characteristics, aquatic and terrestrial wildlife habitat, significant hydrological values, or other outstanding natural features;

and

(3) the location and extent of any significant cultural or

other values within the study area.

(c) The study referred to in subsection (a) shall include both

legislative and regulatory recommendations to Congress on the

future management of the study area. In formulating such recommendations, the Secretary shall consult with the city of Portland

and other affected parties.

(d) To the greatest extent possible, the Secretary shall use

existing data and processes to carry out this study and report.

(e) The study referred to in subsection (a) shall be submitted

to the Senate Committees on Energy and Natural Resources and

16 USC 482b

note.
110 STAT. 3009–543 PUBLIC LAW 104–208—SEPT. 30, 1996

Agriculture and the House Committees on Resources and Agriculture not later than one year from the date of enactment of

this section.

(f) The Secretary is prohibited from advertising, offering or

awarding any timber sale within the study area for a period of

two years after the date of enactment of this section.

(g) Nothing in this section shall in any way affect any State

or Federal law governing appropriation, use of or Federal right

to water on or flowing through National Forest System lands.

Nothing in this section is intended to influence the relative strength

of competing claims to the waters of the Little Sandy River. Nothing

in this section shall be construed to expand or diminish Federal,

State, or local jurisdiction, responsibility, interests, or rights in

water resources development or control, including rights in and

current uses of water resources in the unit.

SEC. 606. Lands within the Bull Run Management Unit, as

defined in Public Law 95–200, but not contained within the Bull

Run River Drainage, as defined by this title and as depicted on

the map dated July 1996 described in Section 604 of this title,

shall continue to be managed in accordance with Public Law 95–

200.

TITLE VII—OREGON ISLANDS

WILDERNESS, ADDITIONS

SEC. 701. OREGON ISLANDS WILDERNESS, ADDITIONS.

(a) In furtherance of the purposes of the Wilderness Act of

1964, certain lands within the boundaries of the Oregon Islands

National Wildlife Refuge, Oregon, comprising approximately ninetyfive acres and as generally depicted on a map entitled ‘‘Oregon

Island Wilderness Additions—Proposed’’ dated August 1996, are

hereby designated as wilderness. The map shall be on file and

available for public inspection in the offices of the Fish and Wildlife

Service, Department of the Interior.

(b) All other federally owned named, unnamed, surveyed and

unsurveyed rocks, reefs, islets and islands lying within three

goegraphic miles off the coast of Oregon and above mean high

tide, not currently designated as wilderness and also within the

Oregon Islands National Wildlife Refuge boundaries under the

administration of the United States Fish and Wildlife Service,

Department of the Interior, as designated by Executive Order 7035,

Proclamation 2416, Public Land Orders 4395, 4475 and 6287, and

Public Laws 91–504 and 95–450, are hereby designated as wilderness.

(c) All federally owned named, unnamed, surveyed and

unsurveyed rocks, reefs, islets and islands lying within three

geographic miles off the coast of Oregon and above mean high

tide, and presently under the jurisdiction of the Bureau of Land

Management, except Chiefs Island, are hereby designated as wilderness, shall become part of the Oregon Islands National Wildlife

Refuge and the Oregon Island Wilderness and shall be under the

jurisdiction of the United States Fish and Wildlife Service, Department of the Interior.

(d) As soon as practicable after this title takes effect, a map

of the wilderness area and a description of its boundaries shall

be filed with the Senate Committee on Energy and Natural

16 USC 1132

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–544

Resources and the House Committee on Resources, and such map

shall have the same force and effect as if included in this title:

Provided, however, That correcting clerical and typographical errors

in the map and land descriptions may be made.

(e) Public Land Order 6287 of June 16, 1982, which withdrew

certain rocks, reefs, islets and islands lying within three geographical miles off the coast of Oregon and above mean high tide, including

the ninety-five acres described in subsection (a), as an addition

to the Oregon Islands National Wildlife Refuge is hereby made

permanent.

TITLE VIII—UMPQUA RIVER LAND

EXCHANGE STUDY

SEC. 801. UMPQUA RIVER LAND EXCHANGE STUDY: POLICY AND DIRECTION.

(a) IN GENERAL.—The Secretaries of the Interior and Agriculture (Secretaries) are hereby authorized and directed to consult,

coordinate, and cooperate with the Umpqua Land Exchange Project

(ULEP), affected units and agencies of State and local government,

and, as appropriate, the World Forestry Center and National Fish

and Wildlife Foundation, to assist ULEP’s ongoing efforts in studying and analyzing land exchange opportunities in the Umpqua

River Basin and to provide scientific, technical, research, mapping

and other assistance and information to such entities. Such consultation, coordination, and cooperation shall at a minimum include,

but not be limited to:

(1) working with ULEP to develop or assemble comprehensive scientific and other information (including comprehensive

and integrated mapping) concerning the Umpqua River Basin’s

resources of forest, plants, wildlife, fisheries (anadromous and

other), recreational opportunities, wetlands, riparian habitat,

and other physical or natural resources;

(2) working with ULEP to identify general or specific areas

within the basin where land exchanges could promote consolidation of forestland ownership for long-term, sustained timber

production; protection and restoration of habitat for plants,

fish, and wildlife (including any federally listed threatened

or endangered species); protection of drinking water supplies;

recovery of threatened and endangered species; protection and

restoration of wetlands, riparian lands, and other environmentally sensitive areas; consolidation of land ownership for

improved public access and a broad array of recreational uses;

and consolidation of land ownership to achieve management

efficiency and reduced costs of administration; and

(3) developing a joint report for submission to the Congress

which discusses land exchange opportunities in the basin and

outlines either a specific land exchange proposal or proposals

which may merit consideration by the Secretaries or the Congress, or ideas and recommendations for new authorizations,

direction, or changes in existing law or policy to expedite and

facilitate the consummation of beneficial land exchanges in

the basin via administrative means.

(b) MATTERS FOR SPECIFIC STUDY.—In analyzing land exchange

opportunities with ULEP, the Secretaries shall give priority to

assisting ULEP’s ongoing efforts in:
110 STAT. 3009–545 PUBLIC LAW 104–208—SEPT. 30, 1996

(1) studying, identifying, and mapping areas where the

consolidation of land ownership via land exchanges could promote the goals of long term species and watershed protection

and utilization, including but not limited to the goals of the

Endangered Species Act of 1973 more effectively than current

land ownership patterns and whether any changes in law or

policy applicable to such lands after consummation of an

exchange would be advisable or necessary to achieve such goals;

(2) studying, identifying and mapping areas where land

exchanges might be utilized to better satisfy the goals of

sustainable timber harvest, including studying whether changes

in existing law or policy applicable to such lands after consummation of an exchange would be advisable or necessary

to achieve such goals;

(3) identifying issues and studying options and alternatives,

including possible changes in existing law or policy, to insure

that combined post-exchange revenues to units of local government from State and local property, severance, and other taxes

or levies and shared Federal land receipts will approximate

pre-exchange revenues;

(4) identifying issues and studying whether possible

changes in law, special appraisal instruction, or changes in

certain Federal appraisal procedures might be advisable or

necessary to facilitate the appraisal of potential exchange lands

which may have special characteristics or restrictions affecting

land values;

(5) identifying issues and studying options and alternatives,

including changes in existing laws or policy, for achieving land

exchanges without reducing the net supply of timber available

to small businesses;

(6) identifying, mapping, and recommending potential

changes in land use plans, land classifications, or other actions

which might be advisable or necessary to expedite, facilitate

or consummate land exchanges in certain areas;

(7) analyzing potential sources for new or enhanced Federal, State, or other funding to promote improved resource

protection, species recovery, and management in the basin;

and

(8) identifying and analyzing whether increased efficiency

and better land and resource management could occur through

either consolidation of Federal forest management under one

agency or exchange lands between the Forest Service and the

Bureau of Land Management.

SEC. 802. REPORT TO CONGRESS.

No later than February 1, 1998, ULEP and the Secretaries

shall submit a joint report to the Committee on Resources of the

United States House of Representatives and to the Committee

on Energy and Natural Resources of the United States Senate

concerning their studies, findings, recommendations, mapping and

other activities conducted pursuant to this title.

SEC. 803. AUTHORIZATION OF APPROPRIATIONS.

In furtherance of the purposes of this title, there is hereby

authorized to be appropriated the sum of $2 million, to remain

available until expended.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–546

DIVISION C—ILLEGAL IMMIGRATION

REFORM AND IMMIGRANT RESPONSIBILITY ACT OF 1996

SEC. 1. SHORT TITLE OF DIVISION; AMENDMENTS TO IMMIGRATION

AND NATIONALITY ACT; APPLICATION OF DEFINITIONS

OF SUCH ACT; TABLE OF CONTENTS OF DIVISION; SEVERABILITY.

(a) SHORT TITLE.—This division may be cited as the ‘‘Illegal

Immigration Reform and Immigrant Responsibility Act of 1996’’.

(b) AMENDMENTS TO IMMIGRATION AND NATIONALITY ACT.—

Except as otherwise specifically provided—

(1) whenever in this division an amendment or repeal

is expressed as the amendment or repeal of a section or other

provision, the reference shall be considered to be made to

that section or provision in the Immigration and Nationality

Act; and

(2) amendments to a section or other provision are to

such section or other provision before any amendment made

to such section or other provision elsewhere in this division.

(c) APPLICATION OF CERTAIN DEFINITIONS.—Except as otherwise

specifically provided in this division, for purposes of titles I and

VI of this division, the terms ‘‘alien’’, ‘‘Attorney General’’, ‘‘border

crossing identification card’’, ‘‘entry’’, ‘‘immigrant’’, ‘‘immigrant

visa’’, ‘‘lawfully admitted for permanent residence’’, ‘‘national’’,

‘‘naturalization’’, ‘‘refugee’’, ‘‘State’’, and ‘‘United States’’ shall have

the meaning given such terms in section 101(a) of the Immigration

and Nationality Act.

(d) TABLE OF CONTENTS OF DIVISION.—The table of contents

of this division is as follows:

Sec. 1. Short title of division; amendments to Immigration and Nationality

Act; application of definitions of such Act; table of contents

of division; severability.

TITLE I—IMPROVEMENTS TO BORDER CONTROL, FACILITATION OF LEGAL ENTRY, AND INTERIOR ENFORCEMENT

Subtitle A—Improved Enforcement at the Border

Sec. 101. Border patrol agents and support personnel.

Sec. 102. Improvement of barriers at border.

Sec. 103. Improved border equipment and technology.

Sec. 104. Improvement in border crossing identification card.

Sec. 105. Civil penalties for illegal entry.

Sec. 106. Hiring and training standards.

Sec. 107. Report on border strategy.

Sec. 108. Criminal penalties for high speed flights from immigration checkpoints.

Sec. 109. Joint study of automated data collection.

Sec. 110. Automated entry-exit control system.

Sec. 111. Submission of final plan on realignment of border patrol positions

8 USC 1101 note.

8 USC 1101 note.

8 USC 1101 note.

Illegal

Immigration

Reform and

Immigrant

Responsibility

Act of 1996.
110 STAT. 3009–547 PUBLIC LAW 104–208—SEPT. 30, 1996

from interior stations.

Sec. 112. Nationwide fingerprinting of apprehended aliens.

Subtitle B—Facilitation of Legal Entry

Sec. 121. Land border inspectors.

Sec. 122. Land border inspection and automated permit pilot projects.

Sec. 123. Preinspection at foreign airports.

Sec. 124. Training of airline personnel in detection of fraudulent documents.

Sec. 125. Preclearance authority.

Subtitle C—Interior Enforcement

Sec. 131. Authorization of appropriations for increase in number of certain

investigators.

Sec. 132. Authorization of appropriations for increase in number of investigators of visa overstayers.

Sec. 133. Acceptance of State services to carry out immigration enforcement.

Sec. 134. Minimum State INS presence.

TITLE II—ENHANCED ENFORCEMENT AND PENALTIES

AGAINST ALIEN SMUGGLING; DOCUMENT FRAUD

Subtitle A—Enhanced Enforcement and Penalties Against Alien

Smuggling

Sec. 201. Wiretap authority for investigations of alien smuggling or document fraud.

Sec. 202. Racketeering offenses relating to alien smuggling.

Sec. 203. Increased criminal penalties for alien smuggling.

Sec. 204. Increased number of assistant United States Attorneys.

Sec. 205. Undercover investigation authority.

Subtitle B—Deterrence of Document Fraud

Sec. 211. Increased criminal penalties for fraudulent use of governmentissued documents.

Sec. 212. New document fraud offenses; new civil penalties for document

fraud.

Sec. 213. New criminal penalty for failure to disclose role as preparer

of false application for immigration benefits.

Sec. 214. Criminal penalty for knowingly presenting document which fails

to contain reasonable basis in law or fact.

Sec. 215. Criminal penalty for false claim to citizenship.

Sec. 216. Criminal penalty for voting by aliens in Federal election.

Sec. 217. Criminal forfeiture for passport and visa related offenses.

Sec. 218. Penalties for involuntary servitude.

Sec. 219. Admissibility of videotaped witness testimony.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–548

Sec. 220. Subpoena authority in document fraud enforcement.

TITLE III—INSPECTION, APPREHENSION, DETENTION, ADJUDICATION, AND REMOVAL OF INADMISSIBLE AND DEPORTABLE ALIENS

Subtitle A—Revision of Procedures for Removal of Aliens

Sec. 301. Treating persons present in the United States without authorization as not admitted.

Sec. 302. Inspection of aliens; expedited removal of inadmissible arriving

aliens; referral for hearing (revised section 235).

Sec. 303. Apprehension and detention of aliens not lawfully in the United

States (revised section 236).

Sec. 304. Removal proceedings; cancellation of removal and adjustment

of status; voluntary departure (revised and new sections 239

to 240C).

Sec. 305. Detention and removal of aliens ordered removed (new section

241).

Sec. 306. Appeals from orders of removal (new section 242).

Sec. 307. Penalties relating to removal (revised section 243).

Sec. 308. Redesignation and reorganization of other provisions; additional

conforming amendments.

Sec. 309. Effective dates; transition.

Subtitle B—Criminal Alien Provisions

Sec. 321. Amended definition of aggravated felony.

Sec. 322. Definition of conviction and term of imprisonment.

Sec. 323. Authorizing registration of aliens on criminal probation or criminal parole.

Sec. 324. Penalty for reentry of deported aliens.

Sec. 325. Change in filing requirement.

Sec. 326. Criminal alien identification system.

Sec. 327. Appropriations for criminal alien tracking center.

Sec. 328. Provisions relating to State criminal alien assistance program.

Sec. 329. Demonstration project for identification of illegal aliens in incarceration facility of Anaheim, California.

Sec. 330. Prisoner transfer treaties.

Sec. 331. Prisoner transfer treaties study.

Sec. 332. Annual report on criminal aliens.

Sec. 333. Penalties for conspiring with or assisting an alien to commit

an offense under the Controlled Substances Import and Export

Act.

Sec. 334. Enhanced penalties for failure to depart, illegal reentry, and passport and visa fraud.

Subtitle C—Revision of Grounds for Exclusion and Deportation

Sec. 341. Proof of vaccination requirement for immigrants.
110 STAT. 3009–549 PUBLIC LAW 104–208—SEPT. 30, 1996

Sec. 342. Incitement of terrorist activity and provision of false documentation to terrorists as a basis for exclusion from the United States.

Sec. 343. Certification requirements for foreign health-care workers.

Sec. 344. Removal of aliens falsely claiming United States citizenship.

Sec. 345. Waiver of exclusion and deportation ground for certain section

274C violators.

Sec. 346. Inadmissibility of certain student visa abusers.

Sec. 347. Removal of aliens who have unlawfully voted.

Sec. 348. Waivers for immigrants convicted of crimes.

Sec. 349. Waiver of misrepresentation ground of inadmissibility for certain

alien.

Sec. 350. Offenses of domestic violence and stalking as ground for deportation.

Sec. 351. Clarification of date as of which relationship required for waiver

from exclusion or deportation for smuggling.

Sec. 352. Exclusion of former citizens who renounced citizenship to avoid

United States taxation.

Sec. 353. References to changes elsewhere in division.

Subtitle D—Changes in Removal of Alien Terrorist Provisions

Sec. 354. Treatment of classified information.

Sec. 355. Exclusion of representatives of terrorist organizations.

Sec. 356. Standard for judicial review of terrorist organization designations.

Sec. 357. Removal of ancillary relief for voluntary departure.

Sec. 358. Effective date.

Subtitle E—Transportation of Aliens

Sec. 361. Definition of stowaway.

Sec. 362. Transportation contracts.

Subtitle F—Additional Provisions

Sec. 371. Immigration judges and compensation.

Sec. 372. Delegation of immigration enforcement authority.

Sec. 373. Powers and duties of the Attorney General and the Commissioner.

Sec. 374. Judicial deportation.

Sec. 375. Limitation on adjustment of status.

Sec. 376. Treatment of certain fees.

Sec. 377. Limitation on legalization litigation.

Sec. 378. Rescission of lawful permanent resident status.

Sec. 379. Administrative review of orders.

Sec. 380. Civil penalties for failure to depart.

Sec. 381. Clarification of district court jurisdiction.

Sec. 382. Application of additional civil penalties to enforcement.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–550

Sec. 383. Exclusion of certain aliens from family unity program.

Sec. 384. Penalties for disclosure of information.

Sec. 385. Authorization of additional funds for removal of aliens.

Sec. 386. Increase in INS detention facilities; report on detention space.

Sec. 387. Pilot program on use of closed military bases for the detention

of inadmissible or deportable aliens.

Sec. 388. Report on interior repatriation program.

TITLE IV—ENFORCEMENT OF RESTRICTIONS AGAINST

EMPLOYMENT

Subtitle A—Pilot Programs for Employment Eligibility

Confirmation

Sec. 401. Establishment of programs.

Sec. 402. Voluntary election to participate in a pilot program.

Sec. 403. Procedures for participants in pilot programs.

Sec. 404. Employment eligibility confirmation system.

Sec. 405. Reports.

Subtitle B—Other Provisions Relating to Employer Sanctions

Sec. 411. Limiting liability for certain technical violations of paperwork

requirements.

Sec. 412. Paperwork and other changes in the employer sanctions program.

Sec. 413. Report on additional authority or resources needed for enforcement of employer sanctions provisions.

Sec. 414. Reports on earnings of aliens not authorized to work.

Sec. 415. Authorizing maintenance of certain information on aliens.

Sec. 416. Subpoena authority.

Subtitle C—Unfair Immigration-Related Employment Practices

Sec. 421. Treatment of certain documentary practices as unfair immigration-related employment practices.

TITLE V—RESTRICTIONS ON BENEFITS FOR ALIENS

Subtitle A—Eligibility of Aliens for Public Assistance and Benefits

Sec. 501. Exception to ineligibility for public benefits for certain battered

aliens.

Sec. 502. Pilot programs on limiting issuance of driver’s licenses to illegal

aliens.

Sec. 503. Ineligibility of aliens not lawfully present for Social Security

benefits.

Sec. 504. Procedures for requiring proof of citizenship for Federal public

benefits.

Sec. 505. Limitation on eligibility for preferential treatment of aliens not

lawfully present on basis of residence for higher education benefits.
110 STAT. 3009–551 PUBLIC LAW 104–208—SEPT. 30, 1996

Sec. 506. Study and report on alien student eligibility for postsecondary

Federal student financial assistance.

Sec. 507. Verification of immigration status for purposes of Social Security

and higher educational assistance.

Sec. 508. No verification requirement for nonprofit charitable organizations.

Sec. 509. GAO study of provision of means-tested public benefits to aliens

who are not qualified aliens on behalf of eligible individuals.

Sec. 510. Transition for aliens currently receiving benefits under the Food

Stamp program.

Subtitle B—Public Charge Exclusion

Sec. 531. Ground for exclusion.

Subtitle C—Affidavits of Support

Sec. 551. Requirements for sponsor’s affidavit of support.

Sec. 552. Indigence and battered spouse and child exceptions to Federal

attribution of income rule.

Sec. 553. Authority of States and political subdivisions of States to limit

assistance to aliens and to distinguish among classes of aliens

in providing general cash public assistance.

Subtitle D—Miscellaneous Provisions

Sec. 561. Increased maximum criminal penalties for forging or counterfeiting seal of a Federal department or agency to facilitate benefit

fraud by an unlawful alien.

Sec. 562. Treatment of expenses subject to emergency medical services

exception.

Sec. 563. Reimbursement of States and localities for emergency ambulance

services.

Sec. 564. Pilot programs to require bonding.

Sec. 565. Reports.

Subtitle E—Housing Assistance

Sec. 571. Short title.

Sec. 572. Prorating of financial assistance.

Sec. 573. Actions in cases of termination of financial assistance.

Sec. 574. Verification of immigration status and eligibility for financial

assistance.

Sec. 575. Prohibition of sanctions against entities making financial assistance eligibility determinations.

Sec. 576. Eligibility for public and assisted housing.

Sec. 577. Regulations.

Subtitle F—General Provisions

Sec. 591. Effective dates.

Sec. 592. Not applicable to foreign assistance.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–552

Sec. 593. Notification.

Sec. 594. Definitions.

TITLE VI—MISCELLANEOUS PROVISIONS

Subtitle A—Refugees, Parole, and Asylum

Sec. 601. Persecution for resistance to coercive population control methods.

Sec. 602. Limitation on use of parole.

Sec. 603. Treatment of long-term parolees in applying worldwide numerical

limitations.

Sec. 604. Asylum reform.

Sec. 605. Increase in asylum officers.

Sec. 606. Conditional repeal of Cuban Adjustment Act.

Subtitle B—Miscellaneous Amendments to the Immigration and

Nationality Act

Sec. 621. Alien witness cooperation.

Sec. 622. Waiver of foreign country residence requirement with respect

to international medical graduates.

Sec. 623. Use of legalization and special agricultural worker information.

Sec. 624. Continued validity of labor certifications and classification petitions for professional athletes.

Sec. 625. Foreign students.

Sec. 626. Services to family members of certain officers and agents killed

in the line of duty.

Subtitle C—Provisions Relating to Visa Processing and Consular

Efficiency

Sec. 631. Validity of period of visas.

Sec. 632. Elimination of consulate shopping for visa overstays.

Sec. 633. Authority to determine visa processing procedures.

Sec. 634. Changes regarding visa application process.

Sec. 635. Visa waiver program.

Sec. 636. Fee for diversity immigrant lottery.

Sec. 637. Eligibility for visas for certain Polish applicants for the 1995

diversity immigrant program.

Subtitle D—Other Provisions

Sec. 641. Program to collect information relating to nonimmigrant foreign

students.

Sec. 642. Communication between government agencies and the Immigration and Naturalization Service.

Sec. 643. Regulations regarding habitual residence.

Sec. 644. Information regarding female genital mutilation.

Sec. 645. Criminalization of female genital mutilation.
110 STAT. 3009–553 PUBLIC LAW 104–208—SEPT. 30, 1996

Sec. 646. Adjustment of status for certain Polish and Hungarian parolees.

Sec. 647. Support of demonstration projects.

Sec. 648. Sense of Congress regarding American-made products; requirements regarding notice.

Sec. 649. Vessel movement controls during immigration emergency.

Sec. 650. Review of practices of testing entities.

Sec. 651. Designation of a United States customs administrative building.

Sec. 652. Mail-order bride business.

Sec. 653. Review and report on H–2A nonimmigrant workers program.

Sec. 654. Report on allegations of harassment by Canadian customs agents.

Sec. 655. Sense of Congress on discriminatory application of New Brunswick provincial sales tax.

Sec. 656. Improvements in identification-related documents.

Sec. 657. Development of prototype of counterfeit-resistant Social Security

card.

Sec. 658. Border Patrol Museum.

Sec. 659. Sense of the Congress regarding the mission of the Immigration

and Naturalization Service.

Sec. 660. Authority for National Guard to assist in transportation of certain

aliens.

Subtitle E—Technical Corrections

Sec. 671. Miscellaneous technical corrections.

(e) SEVERABILITY.—If any provision of this division or the

application of such provision to any person or circumstances is

held to be unconstitutional, the remainder of this division and

the application of the provisions of this division to any person

or circumstance shall not be affected thereby.

TITLE I—IMPROVEMENTS TO BORDER

CONTROL, FACILITATION OF LEGAL

ENTRY, AND INTERIOR ENFORCEMENT

Subtitle A—Improved Enforcement at the

Border

SEC. 101. BORDER PATROL AGENTS AND SUPPORT PERSONNEL.

(a) INCREASED NUMBER OF BORDER PATROL AGENTS.—The

Attorney General in each of fiscal years 1997, 1998, 1999, 2000,

and 2001 shall increase by not less than 1,000 the number of

positions for full-time, active-duty border patrol agents within the

Immigration and Naturalization Service above the number of such

positions for which funds were allotted for the preceding fiscal

year.

(b) INCREASE IN BORDER PATROL SUPPORT PERSONNEL.—The

Attorney General, in each of fiscal years 1997, 1998, 1999, 2000,

8 USC 1101 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–554

and 2001, may increase by 300 the number of positions for personnel

in support of border patrol agents above the number of such positions for which funds were allotted for the preceding fiscal year.

(c) DEPLOYMENT OF BORDER PATROL AGENTS.—The Attorney

General shall, to the maximum extent practicable, ensure that

additional border patrol agents shall be deployed among Immigration and Naturalization Service sectors along the border in proportion to the level of illegal crossing of the borders of the United

States measured in each sector during the preceding fiscal year

and reasonably anticipated in the next fiscal year.

(d) FORWARD DEPLOYMENT.—

(1) IN GENERAL.—The Attorney General shall forward

deploy existing border patrol agents in those areas of the border

identified as areas of high illegal entry into the United States

in order to provide a uniform and visible deterrent to illegal

entry on a continuing basis. The previous sentence shall not

apply to border patrol agents located at checkpoints.

(2) PRESERVATION OF LAW ENFORCEMENT FUNCTIONS AND

CAPABILITIES IN INTERIOR STATES.—The Attorney General shall,

when deploying border patrol personnel from interior stations

to border stations, coordinate with, and act in conjunction with,

State and local law enforcement agencies to ensure that such

deployment does not degrade or compromise the law enforcement capabilities and functions currently performed at interior

border patrol stations.

(3) REPORT.—Not later than 6 months after the date of

the enactment of this Act, the Attorney General shall submit

to the Committees on the Judiciary of the House of Representatives and of the Senate a report on—

(A) the progress and effectiveness of the forward

deployment under paragraph (1); and

(B) the measures taken to comply with paragraph (2).

SEC. 102. IMPROVEMENT OF BARRIERS AT BORDER.

(a) IN GENERAL.—The Attorney General, in consultation with

the Commissioner of Immigration and Naturalization, shall take

such actions as may be necessary to install additional physical

barriers and roads (including the removal of obstacles to detection

of illegal entrants) in the vicinity of the United States border

to deter illegal crossings in areas of high illegal entry into the

United States.

(b) CONSTRUCTION OF FENCING AND ROAD IMPROVEMENTS IN

THE BORDER AREA NEAR SAN DIEGO, CALIFORNIA.—

(1) IN GENERAL.—In carrying out subsection (a), the Attorney General shall provide for the construction along the 14

miles of the international land border of the United States,

starting at the Pacific Ocean and extending eastward, of second

and third fences, in addition to the existing reinforced fence,

and for roads between the fences.

(2) PROMPT ACQUISITION OF NECESSARY EASEMENTS.—The

Attorney General, acting under the authority conferred in section 103(b) of the Immigration and Nationality Act (as inserted

by subsection (d)), shall promptly acquire such easements as

may be necessary to carry out this subsection and shall commence construction of fences immediately following such

acquisition (or conclusion of portions thereof).

8 USC 1103 note.
110 STAT. 3009–555 PUBLIC LAW 104–208—SEPT. 30, 1996

(3) SAFETY FEATURES.—The Attorney General, while constructing the additional fencing under this subsection, shall

incorporate such safety features into the design of the fence

system as are necessary to ensure the well-being of border

patrol agents deployed within or in near proximity to the system.

(4) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to carry out this subsection not to

exceed $12,000,000. Amounts appropriated under this paragraph are authorized to remain available until expended.

(c) WAIVER.—The provisions of the Endangered Species Act

of 1973 and the National Environmental Policy Act of 1969 are

waived to the extent the Attorney General determines necessary

to ensure expeditious construction of the barriers and roads under

this section.

(d) LAND ACQUISITION AUTHORITY.— (1) IN GENERAL.—Section 103 (8 U.S.C. 1103) is amended—

(A) by redesignating subsections (b), (c), and (d) as

subsections (c), (d), and (e), respectively; and

(B) by inserting after subsection (a) the following:

‘‘(b)(1) The Attorney General may contract for or buy any

interest in land, including temporary use rights, adjacent to or

in the vicinity of an international land border when the Attorney

General deems the land essential to control and guard the boundaries and borders of the United States against any violation of

this Act.

‘‘(2) The Attorney General may contract for or buy any interest

in land identified pursuant to paragraph (1) as soon as the lawful

owner of that interest fixes a price for it and the Attorney General

considers that price to be reasonable.

‘‘(3) When the Attorney General and the lawful owner of an

interest identified pursuant to paragraph (1) are unable to agree

upon a reasonable price, the Attorney General may commence condemnation proceedings pursuant to the Act of August 1, 1888 (Chapter 728; 25 Stat. 357).

‘‘(4) The Attorney General may accept for the United States

a gift of any interest in land identified pursuant to paragraph

(1).’’.

(2) CONFORMING AMENDMENT.—Section 103(e) (as so

redesignated by paragraph (1)(A)) is amended by striking ‘‘subsection (c)’’ and inserting ‘‘subsection (d)’’.

SEC. 103. IMPROVED BORDER EQUIPMENT AND TECHNOLOGY.

The Attorney General is authorized to acquire and use, for

the purpose of detection, interdiction, and reduction of illegal

immigration into the United States, any Federal equipment (including fixed wing aircraft, helicopters, four-wheel drive vehicles,

sedans, night vision goggles, night vision scopes, and sensor units)

determined available for transfer by any other agency of the Federal

Government upon request of the Attorney General.

SEC. 104. IMPROVEMENT IN BORDER CROSSING IDENTIFICATION

CARD.

(a) IN GENERAL.—Section 101(a)(6) (8 U.S.C. 1101(a)(6)) is

amended by adding at the end the following: ‘‘Such regulations

shall provide that (A) each such document include a biometric

identifier (such as the fingerprint or handprint of the alien) that

is machine readable and (B) an alien presenting a border crossing

8 USC 1103 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–556

identification card is not permitted to cross over the border into

the United States unless the biometric identifier contained on the

card matches the appropriate biometric characteristic of the alien.’’.

(b) EFFECTIVE DATES.—

(1) CLAUSE A.—Clause (A) of the sentence added by the

amendment made by subsection (a) shall apply to documents

issued on or after 18 months after the date of the enactment

of this Act.

(2) CLAUSE B.—Clause (B) of such sentence shall apply

to cards presented on or after 3 years after the date of the

enactment of this Act.

SEC. 105. CIVIL PENALTIES FOR ILLEGAL ENTRY.

(a) IN GENERAL.—Section 275 (8 U.S.C. 1325) is amended—

(1) by redesignating subsections (b) and (c) as subsections

(c) and (d), respectively; and

(2) by inserting after subsection (a) the following:

‘‘(b) Any alien who is apprehended while entering (or attempting

to enter) the United States at a time or place other than as designated by immigration officers shall be subject to a civil penalty

of—

‘‘(1) at least $50 and not more than $250 for each such

entry (or attempted entry); or

‘‘(2) twice the amount specified in paragraph (1) in the

case of an alien who has been previously subject to a civil

penalty under this subsection.

Civil penalties under this subsection are in addition to, and not

in lieu of, any criminal or other civil penalties that may be

imposed.’’.

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

(a) shall apply to illegal entries or attempts to enter occurring

on or after the first day of the sixth month beginning after the

date of the enactment of this Act.

SEC. 106. HIRING AND TRAINING STANDARDS.

(a) REVIEW OF HIRING STANDARDS.—Not later than 60 days

after the date of the enactment of this Act, the Attorney General

shall complete a review of all prescreening and hiring standards

used by the Commissioner of Immigration and Naturalization, and,

where necessary, revise such standards to ensure that they are

consistent with relevant standards of professionalism.

(b) CERTIFICATION.—At the conclusion of each of fiscal years

1997, 1998, 1999, 2000, and 2001, the Attorney General shall certify

in writing to the Committees on the Judiciary of the House of

Representatives and of the Senate that all personnel hired by

the Commissioner of Immigration and Naturalization for such fiscal

year were hired pursuant to the appropriate standards, as revised

under subsection (a).

(c) REVIEW OF TRAINING STANDARDS.—

(1) REVIEW.—Not later than 180 days after the date of

the enactment of this Act, the Attorney General shall complete

a review of the sufficiency of all training standards used by

the Commissioner of Immigration and Naturalization.

(2) REPORT.—

(A) IN GENERAL.—Not later than 90 days after the

completion of the review under paragraph (1), the Attorney

General shall submit a report to the Committees on the

8 USC 1103 note.

8 USC 1325 note.

8 USC 1101 note.
110 STAT. 3009–557 PUBLIC LAW 104–208—SEPT. 30, 1996

Judiciary of the House of Representatives and of the Senate

on the results of the review, including—

(i) a description of the status of efforts to update

and improve training throughout the Immigration and

Naturalization Service; and

(ii) an estimate of when such efforts are expected

to be completed.

(B) AREAS REQUIRING FUTURE REVIEW.—The report

shall disclose those areas of training that the Attorney

General determines require further review in the future.

SEC. 107. REPORT ON BORDER STRATEGY.

(a) EVALUATION OF STRATEGY.—The Comptroller General of

the United States shall track, monitor, and evaluate the Attorney

General’s strategy to deter illegal entry in the United States to

determine the efficacy of such strategy.

(b) COOPERATION.—The Attorney General, the Secretary of

State, and the Secretary of Defense shall cooperate with the

Comptroller General of the United States in carrying out subsection

(a).

(c) REPORT.—Not later than one year after the date of the

enactment of this Act, and every year thereafter for the succeeding

5 years, the Comptroller General of the United States shall submit

a report to the Committees on the Judiciary of the House of Representatives and of the Senate on the results of the activities

undertaken under subsection (a) during the previous year. Each

such report shall include an analysis of the degree to which the

Attorney General’s strategy has been effective in reducing illegal

entry. Each such report shall include a collection and systematic

analysis of data, including workload indicators, related to activities

to deter illegal entry and recommendations to improve and increase

border security at the border and ports of entry.

SEC. 108. CRIMINAL PENALTIES FOR HIGH SPEED FLIGHTS FROM

IMMIGRATION CHECKPOINTS.

(a) FINDINGS.—The Congress finds as follows:

(1) Immigration checkpoints are an important component

of the national strategy to prevent illegal immigration.

(2) Individuals fleeing immigration checkpoints and leading

law enforcement officials on high speed vehicle chases endanger

law enforcement officers, innocent bystanders, and the fleeing

individuals themselves.

(3) The pursuit of suspects fleeing immigration checkpoints

is complicated by overlapping jurisdiction among Federal, State,

and local law enforcement officers.

(b) HIGH SPEED FLIGHT FROM IMMIGRATION CHECKPOINTS.—

(1) IN GENERAL.—Chapter 35 of title 18, United States

Code, is amended by adding at the end the following:

‘‘§ 758. High speed flight from immigration checkpoint

‘‘Whoever flees or evades a checkpoint operated by the Immigration and Naturalization Service, or any other Federal law enforcement agency, in a motor vehicle and flees Federal, State, or local

law enforcement agents in excess of the legal speed limit shall

be fined under this title, imprisoned not more than five years,

or both.’’.

18 USC 758 note.

8 USC 1103 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–558

(2) CLERICAL AMENDMENT.—The table of sections at the

beginning of such chapter is amended by inserting after the

item relating to section 757 the following:

‘‘758. High speed flight from immigration checkpoint.’’.

(c) GROUNDS FOR DEPORTATION.—Section 241(a)(2)(A) (8 U.S.C.

1251(a)(2)(A)) is amended—

(1) by redesignating clause (iv) as clause (v);

(2) by inserting after clause (iii) the following:

‘‘(iv) HIGH SPEED FLIGHT.—Any alien who is convicted of a violation of section 758 of title 18, United

States Code, (relating to high speed flight from an

immigration checkpoint) is deportable.’’; and

(3) in clause (v) (as so redesignated by paragraph (1)),

by striking ‘‘and (iii)’’ and inserting ‘‘(iii), and (iv)’’.

SEC. 109. JOINT STUDY OF AUTOMATED DATA COLLECTION.

(a) STUDY.—The Attorney General, together with the Secretary

of State, the Secretary of Agriculture, the Secretary of the Treasury,

and appropriate representatives of the air transport industry, shall

jointly undertake a study to develop a plan for making the transition

to automated data collection at ports of entry.

(b) REPORT.—Nine months after the date of the enactment

of this Act, the Attorney General shall submit a report to the

Committees on the Judiciary of the Senate and the House of Representatives on the outcome of the joint initiative under subsection

(a), noting specific areas of agreement and disagreement, and recommending further steps to be taken, including any suggestions

for legislation.

SEC. 110. AUTOMATED ENTRY-EXIT CONTROL SYSTEM.

(a) SYSTEM.—Not later than 2 years after the date of the

enactment of this Act, the Attorney General shall develop an automated entry and exit control system that will—

(1) collect a record of departure for every alien departing

the United States and match the records of departure with

the record of the alien’s arrival in the United States; and

(2) enable the Attorney General to identify, through online searching procedures, lawfully admitted nonimmigrants

who remain in the United States beyond the period authorized

by the Attorney General.

(b) REPORT.—

(1) DEADLINE.—Not later than December 31 of each year

following the development of the system under subsection (a),

the Attorney General shall submit an annual report to the

Committees on the Judiciary of the House of Representatives

and of the Senate on such system.

(2) INFORMATION.—The report shall include the following

information:

(A) The number of departure records collected, with

an accounting by country of nationality of the departing

alien.

(B) The number of departure records that were successfully matched to records of the alien’s prior arrival in

the United States, with an accounting by the alien’s country

of nationality and by the alien’s classification as an

immigrant or nonimmigrant.

8 USC 1221 note.
110 STAT. 3009–559 PUBLIC LAW 104–208—SEPT. 30, 1996

(C) The number of aliens who arrived as nonimmigrants, or as a visitor under the visa waiver program

under section 217 of the Immigration and Nationality Act,

for whom no matching departure record has been obtained

through the system or through other means as of the

end of the alien’s authorized period of stay, with an

accounting by the alien’s country of nationality and date

of arrival in the United States.

(c) USE OF INFORMATION ON OVERSTAYS.—Information regarding aliens who have remained in the United Staty beyond their

authorized period of stay identified through the system shall be

integrated into appropriate data bases of the Immigration and

Naturalization Service and the Department of State, including those

used at ports of entry and at consular offices.

SEC. 111. SUBMISSION OF FINAL PLAN ON REALIGNMENT OF BORDER

PATROL POSITIONS FROM INTERIOR STATIONS.

Not later than November 30, 1996, the Attorney General shall

submit to the Committees on the Judiciary of the House of Representatives and of the Senate a final plan regarding the redeployment of border patrol personnel from interior locations to the front

lines of the border. The final plan shall be consistent with the

following:

(1) The preliminary plan regarding such redeployment

submitted by the Attorney General on May 17, 1996, to the

Committee on Appropriations of the House of Representatives

and the Committee on Appropriations of the Senate.

(2) The direction regarding such redeployment provided

in the joint explanatory statement of the committee of conference in the conference report to accompany the Omnibus

Consolidated Rescissions and Appropriations Act of 1996 (Public

Law 104-134).

SEC. 112. NATIONWIDE FINGERPRINTING OF APPREHENDED ALIENS.

There are authorized to be appropriated such additional sums

as may be necessary to ensure that the ‘‘IDENT’’ program (operated

by the Immigration and Naturalization Service) is expanded to

apply to illegal or criminal aliens apprehended nationwide.

Subtitle B—Facilitation of Legal Entry

SEC. 121. LAND BORDER INSPECTORS.

In order to eliminate undue delay in the thorough inspection

of persons and vehicles lawfully attempting to enter the United

States, the Attorney General and the Secretary of the Treasury

each shall increase, by approximately equal numbers in each of

fiscal years 1997 and 1998, the number of full-time land border

inspectors assigned to active duty by the Immigration and Naturalization Service and the United States Customs Service to a

level adequate to assure full staffing during peak crossing hours

of all border crossing lanes currently in use, under construction,

or whose construction has been authorized by the Congress, except

such low-use lanes as the Attorney General may designate.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–560

SEC. 122. LAND BORDER INSPECTION AND AUTOMATED PERMIT PILOT

PROJECTS.

(a) EXTENSION OF LAND BORDER INSPECTION PROJECT AUTHOR- ITY; ESTABLISHMENT OF AUTOMATED PERMIT PILOT PROJECTS.—Section 286(q) is amended—

(1) by striking the matter preceding paragraph (2) and

inserting the following:

‘‘(q) LAND BORDER INSPECTION FEE ACCOUNT.—(1)(A)(i) Notwithstanding any other provision of law, the Attorney General

is authorized to establish, by regulation, not more than 6 projects

under which a fee may be charged and collected for inspection

services provided at one or more land border points of entry. Such

projects may include the establishment of commuter lanes to be

made available to qualified United States citizens and aliens, as

determined by the Attorney General.

‘‘(ii) The program authorized in this subparagraph shall terminate on September 30, 2000, unless further authorized by an Act

of Congress.

‘‘(iii) This subparagraph shall take effect, with respect to any

project described in clause (1) that was not authorized to be commenced before the date of the enactment of the Illegal Immigration

Reform and Immigrant Responsibility Act of 1996, 30 days after

submission of a written plan by the Attorney General detailing

the proposed implementation of such project.

‘‘(iv) The Attorney General shall prepare and submit on a

quarterly basis, until September 30, 2000, a status report on each

land border inspection project implemented under this subparagraph.

‘‘(B) The Attorney General, in consultation with the Secretary

of the Treasury, may conduct pilot projects to demonstrate the

use of designated ports of entry after working hours through the

use of card reading machines or other appropriate technology.’’;

and

(2) by striking paragraph (5).

(b) CONFORMING AMENDMENT.—The Departments of Commerce,

Justice, and State, the Judiciary, and Related Agencies Appropriation Act, 1994 (Public Law 103–121, 107 Stat. 1161) is amended

by striking the fourth proviso under the heading ‘‘Immigration

and Naturalization Service, Salaries and Expenses’’.

SEC. 123. PREINSPECTION AT FOREIGN AIRPORTS.

(a) IN GENERAL.—The Immigration and Nationality Act is

amended by inserting after section 235 the following:

‘‘PREINSPECTION AT FOREIGN AIRPORTS

‘‘SEC. 235A. (a) ESTABLISHMENT OF PREINSPECTION STATIONS.— ‘‘(1) NEW STATIONS.—Subject to paragraph (5), not later

than October 31, 1998, the Attorney General, in consultation

with the Secretary of State, shall establish and maintain

preinspection stations in at least 5 of the foreign airports that

are among the 10 foreign airports which the Attorney General

identifies as serving as last points of departure for the greatest

numbers of inadmissible alien passengers who arrive from

abroad by air at ports of entry within the United States. Such

preinspection stations shall be in addition to any preinspection

stations established prior to the date of the enactment of such

Act.

8 USC 1225a.

8 USC 1356 note.

8 USC 1356.
110 STAT. 3009–561 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(2) REPORT.—Not later than October 31, 1998, the Attorney General shall report to the Committees on the Judiciary

of the House of Representatives and of the Senate on the

implementation of paragraph (1).

‘‘(3) DATA COLLECTION.—Not later than November 1, 1997,

and each subsequent November 1, the Attorney General shall

compile data identifying—

‘‘(A) the foreign airports which served as last points

of departure for aliens who arrived by air at United States

ports of entry without valid documentation during the

preceding fiscal years;

‘‘(B) the number and nationality of such aliens arriving

from each such foreign airport; and

‘‘(C) the primary routes such aliens followed from their

country of origin to the United States.

‘‘(4) ADDITIONAL STATIONS.—Subject to paragraph (5), not

later than October 31, 2000, the Attorney General, in consultation with the Secretary of State, shall establish preinspection

stations in at least 5 additional foreign airports which the

Attorney General, in consultation with the Secretary of State,

determines, based on the data compiled under paragraph (3)

and such other information as may be available, would most

effectively reduce the number of aliens who arrive from abroad

by air at points of entry within the United States who are

inadmissible to the United States. Such preinspection stations

shall be in addition to those established prior to the date

of the enactment of such Act or pursuant to paragraph (1).

‘‘(5) CONDITIONS.—Prior to the establishment of a

preinspection station, the Attorney General, in consultation

with the Secretary of State, shall ensure that—

‘‘(A) employees of the United States stationed at the

preinspection station and their accompanying family members will receive appropriate protection;

‘‘(B) such employees and their families will not be

subject to unreasonable risks to their welfare and safety;

and

‘‘(C) the country in which the preinspection station

is to be established maintains practices and procedures

with respect to asylum seekers and refugees in accordance

with the Convention Relating to the Status of Refugees

(done at Geneva, July 28, 1951), or the Protocol Relating

to the Status of Refugees (done at New York, January

31, 1967), or that an alien in the country otherwise has

recourse to avenues of protection from return to persecution.

‘‘(b) ESTABLISHMENT OF CARRIER CONSULTANT PROGRAM.—The

Attorney General shall assign additional immigration officers to

assist air carriers in the detection of fraudulent documents at

foreign airports which, based on the records maintained pursuant

to subsection (a)(3), served as a point of departure for a significant

number of arrivals at United States ports of entry without valid

documentation, but where no preinspection station exists.’’.

(b) CLERICAL AMENDMENT.—The table of contents is amended

by inserting after the item relating to section 235 the following:

‘‘Sec. 235A. Preinspection at foreign airports.’’.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–562

SEC. 124. TRAINING OF AIRLINE PERSONNEL IN DETECTION OF

FRAUDULENT DOCUMENTS.

(a) USE OF FUNDS.—

(1) IN GENERAL.—Section 286(h)(2)(A) (8 U.S.C.

1356(h)(2)(A)) is amended—

(A) in clause (iv), by inserting ‘‘, including training

of, and technical assistance to, commercial airline personnel

regarding such detection’’ after ‘‘United States’’; and

(B) by adding at the end the following:

‘‘The Attorney General shall provide for expenditures for training

and assistance described in clause (iv) in an amount, for any fiscal

year, not less than 5 percent of the total of the expenses incurred

that are described in the previous sentence.’’.

(2) APPLICABILITY.—The amendments made by paragraph

(1) shall apply to expenses incurred during or after fiscal year

1997.

(b) COMPLIANCE WITH DETECTION REGULATIONS.—

(1) IN GENERAL.—Section 212(f) (8 U.S.C. 1182(f)) is amended by adding at the end the following: ‘‘Whenever the Attorney

General finds that a commercial airline has failed to comply

with regulations of the Attorney General relating to requirements of airlines for the detection of fraudulent documents

used by passengers traveling to the United States (including

the training of personnel in such detection), the Attorney General may suspend the entry of some or all aliens transported

to the United States by such airline.’’.

(2) DEADLINE.—The Attorney General shall first issue, in

proposed form, regulations referred to in the second sentence

of section 212(f) of the Immigration and Nationality Act, as

added by the amendment made by paragraph (1), not later

than 90 days after the date of the enactment of this Act.

SEC. 125. PRECLEARANCE AUTHORITY.

Section 103(a) of the Immigration and Nationality Act (8 U.S.C.

1103(a)) is amended by adding at the end the following:

‘‘After consultation with the Secretary of State, the Attorney General may authorize officers of a foreign country to be stationed

at preclearance facilities in the United States for the purpose of

ensuring that persons traveling from or through the United States

to that foreign country comply with that country’s immigration

and related laws. Those officers may exercise such authority and

perform such duties as United States immigration officers are

authorized to exercise and perform in that foreign country under

reciprocal agreement, and they shall enjoy such reasonable privileges and immunities necessary for the performance of their duties

as the government of their country extends to United States

immigration officers.’’.

Subtitle C—Interior Enforcement

SEC. 131. AUTHORIZATION OF APPROPRIATIONS FOR INCREASE IN

NUMBER OF CERTAIN INVESTIGATORS.

(a) AUTHORIZATION.—There are authorized to be appropriated

such funds as may be necessary to enable the Commissioner of

Immigration and Naturalization to increase the number of investigators and support personnel to investigate potential violations

8 USC 1182 note.

8 USC 1356 note.
110 STAT. 3009–563 PUBLIC LAW 104–208—SEPT. 30, 1996

of sections 274 and 274A of the Immigration and Nationality Act

by a number equivalent to 300 full-time active-duty investigators

in each of fiscal years 1997, 1998, and 1999.

(b) ALLOCATION OF INVESTIGATORS.—At least one-half of the

investigators hired with funds made available under subsection

(a) shall be assigned to investigate potential violations of section

274A of the Immigration and Nationality Act.

(c) LIMITATION ON OVERTIME.—None of the funds made available under subsection (a) shall be available for administrative

expenses to pay any employee overtime pay in an amount in excess

of $25,000 for any fiscal year.

SEC. 132. AUTHORIZATION OF APPROPRIATIONS FOR INCREASE IN

NUMBER OF INVESTIGATORS OF VISA OVERSTAYERS.

There are authorized to be appropriated such funds as may

be necessary to enable the Commissioner of Immigration and Naturalization to increase the number of investigators and support

personnel to investigate visa overstayers by a number equivalent

to 300 full-time active-duty investigators in fiscal year 1997.

SEC. 133. ACCEPTANCE OF STATE SERVICES TO CARRY OUT IMMIGRATION ENFORCEMENT.

Section 287 (8 U.S.C. 1357) is amended by adding at the end

the following:

‘‘(g)(1) Notwithstanding section 1342 of title 31, United States

Code, the Attorney General may enter into a written agreement

with a State, or any political subdivision of a State, pursuant

to which an officer or employee of the State or subdivision, who

is determined by the Attorney General to be qualified to perform

a function of an immigration officer in relation to the investigation,

apprehension, or detention of aliens in the United States (including

the transportation of such aliens across State lines to detention

centers), may carry out such function at the expense of the State

or political subdivision and to the extent consistent with State

and local law.

‘‘(2) An agreement under this subsection shall require that

an officer or employee of a State or political subdivision of a State

performing a function under the agreement shall have knowledge

of, and adhere to, Federal law relating to the function, and shall

contain a written certification that the officers or employees

performing the function under the agreement have received adequate training regarding the enforcement of relevant Federal

immigration laws.

‘‘(3) In performing a function under this subsection, an officer

or employee of a State or political subdivision of a State shall

be subject to the direction and supervision of the Attorney General.

‘‘(4) In performing a function under this subsection, an officer

or employee of a State or political subdivision of a State may

use Federal property or facilities, as provided in a written agreement between the Attorney General and the State or subdivision.

‘‘(5) With respect to each officer or employee of a State or

political subdivision who is authorized to perform a function under

this subsection, the specific powers and duties that may be, or

are required to be, exercised or performed by the individual, the

duration of the authority of the individual, and the position of

the agency of the Attorney General who is required to supervise

and direct the individual, shall be set forth in a written agreement

between the Attorney General and the State or political subdivision.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–564

‘‘(6) The Attorney General may not accept a service under

this subsection if the service will be used to displace any Federal

employee.

‘‘(7) Except as provided in paragraph (8), an officer or employee

of a State or political subdivision of a State performing functions

under this subsection shall not be treated as a Federal employee

for any purpose other than for purposes of chapter 81 of title

5, United States Code, (relating to compensation for injury) and

sections 2671 through 2680 of title 28, United States Code (relating

to tort claims).

‘‘(8) An officer or employee of a State or political subdivision

of a State acting under color of authority under this subsection,

or any agreement entered into under this subsection, shall be

considered to be acting under color of Federal authority for purposes

of determining the liability, and immunity from suit, of the officer

or employee in a civil action brought under Federal or State law.

‘‘(9) Nothing in this subsection shall be construed to require

any State or political subdivision of a State to enter into an agreement with the Attorney General under this subsection.

‘‘(10) Nothing in this subsection shall be construed to require

an agreement under this subsection in order for any officer or

employee of a State or political subdivision of a State—

‘‘(A) to communicate with the Attorney General regarding

the immigration status of any individual, including reporting

knowledge that a particular alien is not lawfully present in

the United States; or

‘‘(B) otherwise to cooperate with the Attorney General in

the identification, apprehension, detention, or removal of aliens

not lawfully present in the United States.’’.

SEC. 134. MINIMUM STATE INS PRESENCE.

(a) IN GENERAL.—Section 103 (8 U.S.C. 1103), as amended

by section 102(e) of this division, is further amended by adding

at the end the following:

‘‘(f) The Attorney General shall allocate to each State not fewer

than 10 full-time active duty agents of the Immigration and Naturalization Service to carry out the functions of the Service, in

order to ensure the effective enforcement of this Act.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall take effect 90 days after the date of the enactment of this

Act.

TITLE II—ENHANCED ENFORCEMENT

AND PENALTIES AGAINST ALIEN

SMUGGLING; DOCUMENT FRAUD

Subtitle A—Enhanced Enforcement and

Penalties Against Alien Smuggling

SEC. 201. WIRETAP AUTHORITY FOR INVESTIGATIONS OF ALIEN SMUGGLING OR DOCUMENT FRAUD.

Section 2516(1) of title 18, United States Code, is amended—

(1) in paragraph (c), by striking ‘‘or section 1992 (relating

to wrecking trains)’’ and inserting ‘‘section 1992 (relating to

8 USC 1103 note.
110 STAT. 3009–565 PUBLIC LAW 104–208—SEPT. 30, 1996

wrecking trains), a felony violation of section 1028 (relating

to production of false identification documentation), section

1425 (relating to the procurement of citizenship or nationalization unlawfully), section 1426 (relating to the reproduction of

naturalization or citizenship papers), section 1427 (relating to

the sale of naturalization or citizenship papers), section 1541

(relating to passport issuance without authority), section 1542

(relating to false statements in passport applications), section

1543 (relating to forgery or false use of passports), section

1544 (relating to misuse of passports), or section 1546 (relating

to fraud and misuse of visas, permits, and other documents)’’;

(2) by striking ‘‘or’’ at the end of paragraph (l);

(3) by redesignating paragraphs (m), (n), and (o) as paragraphs (n), (o), and (p), respectively; and

(4) by inserting after paragraph (l) the following new paragraph:

‘‘(m) a violation of section 274, 277, or 278 of the Immigration and Nationality Act (8 U.S.C. 1324, 1327, or 1328) (relating

to the smuggling of aliens);’’.

SEC. 202. RACKETEERING OFFENSES RELATING TO ALIEN SMUGGLING.

Section 1961(1) of title 18, United States Code, as amended

by section 433 of Public Law 104–132, is amended—

(1) by striking ‘‘if the act indictable under section 1028

was committed for the purpose of financial gain’’;

(2) by inserting ‘‘section 1425 (relating to the procurement

of citizenship or nationalization unlawfully), section 1426 (relating to the reproduction of naturalization or citizenship papers),

section 1427 (relating to the sale of naturalization or citizenship

papers),’’ after ‘‘section 1344 (relating to financial institution

fraud),’’;

(3) by striking ‘‘if the act indictable under section 1542

was committed for the purpose of financial gain’’;

(4) by striking ‘‘if the act indictable under section 1543

was committed for the purpose of financial gain’’;

(5) by striking ‘‘if the act indictable under section 1544

was committed for the purpose of financial gain’’; and

(6) by striking ‘‘if the act indictable under section 1546

was committed for the purpose of financial gain’’.

SEC. 203. INCREASED CRIMINAL PENALTIES FOR ALIEN SMUGGLING.

(a) COMMERCIAL ADVANTAGE.—Section 274(a)(1)(B)(i) (8 U.S.C.

1324(a)(1)(B)(i)) is amended by inserting ‘‘or in the case of a violation of subparagraph (A)(ii), (iii), or (iv) in which the offense was

done for the purpose of commercial advantage or private financial

gain’’ after ‘‘subparagraph (A)(i)’’.

(b) ADDITIONAL OFFENSES.—Section 274(a) (8 U.S.C. 1324(a))

is amended—

(1) in paragraph (1)(A)—

(A) by striking ‘‘or’’ at the end of clause (iii);

(B) by striking the comma at the end of clause (iv)

and inserting ‘‘; or’’; and

(C) by adding at the end the following new clause:

‘‘(v)(I) engages in any conspiracy to commit any of the

preceding acts, or

‘‘(II) aids or abets the commission of any of the preceding

acts,’’;

(2) in paragraph (1)(B)—
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–566

(A) in clause (i), by inserting ‘‘or (v)(I)’’ after ‘‘(A)(i)’’;

(B) in clause (ii), by striking ‘‘or (iv)’’ and inserting

‘‘(iv), or (v)(II)’’;

(C) in clause (iii), by striking ‘‘or (iv)’’ and inserting

‘‘(iv), or (v)’’; and

(D) in clause (iv), by striking ‘‘or (iv)’’ and inserting

‘‘(iv), or (v)’’;

(3) in paragraph (2)(B), by striking ‘‘be fined’’ and all that

follows and inserting the following: ‘‘be fined under title 18,

United States Code, and shall be imprisoned, in the case of

a first or second violation of subparagraph (B)(iii), not more

than 10 years, in the case of a first or second violation of

subparagraph (B)(i) or (B)(ii), not less than 3 nor more than

10 years, and for any other violation, not less than 5 nor

more than 15 years.’’; and

(4) by adding at the end the following new paragraph:

‘‘(3)(A) Any person who, during any 12-month period, knowingly

hires for employment at least 10 individuals with actual knowledge

that the individuals are aliens described in subparagraph (B) shall

be fined under title 18, United States Code, or imprisoned for

not more than 5 years, or both.

‘‘(B) An alien described in this subparagraph is an alien who—

‘‘(i) is an unauthorized alien (as defined in section

274A(h)(3)), and

‘‘(ii) has been brought into the United States in violation

of this subsection.’’.

(c) SMUGGLING OF ALIENS WHO WILL COMMIT CRIMES.—Clause

(i) of section 274(a)(2)(B) (8 U.S.C. 1324(a)(2)(B)) is amended to

read as follows:

‘‘(i) an offense committed with the intent or with reason

to believe that the alien unlawfully brought into the United

States will commit an offense against the United States

or any State punishable by imprisonment for more than

1 year,’’.

(d) APPLYING CERTAIN PENALTIES ON A PER ALIEN BASIS.—

Section 274(a)(2) (8 U.S.C. 1324(a)(2)) is amended by striking ‘‘for

each transaction constituting a violation of this paragraph, regardless of the number of aliens involved’’ and inserting ‘‘for each

alien in respect to whom a violation of this paragraph occurs’’.

(e) SENTENCING GUIDELINES.—

(1) IN GENERAL.—Pursuant to its authority under section

994(p) of title 28, United States Code, the United States

Sentencing Commission shall promulgate sentencing guidelines

or amend existing sentencing guidelines for offenders convicted

of offenses related to smuggling, transporting, harboring, or

inducing aliens in violation of section 274(a) (1)(A) or (2) of

the Immigration and Nationality Act (8 U.S.C. 1324(a)(1)(A),

(2)(B)) in accordance with this subsection.

(2) REQUIREMENTS.—In carrying out this subsection, the

Commission shall, with respect to the offenses described in

paragraph (1)—

(A) increase the base offense level for such offenses

at least 3 offense levels above the applicable level in effect

on the date of the enactment of this Act;

(B) review the sentencing enhancement for the number

of aliens involved (U.S.S.G. 2L1.1(b)(2)), and increase the

sentencing enhancement by at least 50 percent above the

28 USC 994 note.
110 STAT. 3009–567 PUBLIC LAW 104–208—SEPT. 30, 1996

applicable enhancement in effect on the date of the enactment of this Act;

(C) impose an appropriate sentencing enhancement

upon an offender with 1 prior felony conviction arising

out of a separate and prior prosecution for an offense

that involved the same or similar underlying conduct as

the current offense, to be applied in addition to any sentencing enhancement that would otherwise apply pursuant to

the calculation of the defendant’s criminal history category;

(D) impose an additional appropriate sentencing

enhancement upon an offender with 2 or more prior felony

convictions arising out of separate and prior prosecutions

for offenses that involved the same or similar underling

conduct as the current offense, to be applied in addition

to any sentencing enhancement that would otherwise apply

pursuant to the calculation of the defendant’s criminal

history category;

(E) impose an appropriate sentencing enhancement on

a defendant who, in the course of committing an offense

described in this subsection—

(i) murders or otherwise causes death, bodily

injury, or serious bodily injury to an individual;

(ii) uses or brandishes a firearm or other dangerous

weapon; or

(iii) engages in conduct that consciously or recklessly places another in serious danger of death or

serious bodily injury;

(F) consider whether a downward adjustment is appropriate if the offense is a first offense and involves the

smuggling only of the alien’s spouse or child; and

(G) consider whether any other aggravating or mitigating circumstances warrant upward or downward sentencing

adjustments.

(3) EMERGENCY AUTHORITY TO SENTENCING COMMISSION.— The Commission shall promulgate the guidelines or amendments provided for under this subsection as soon as practicable

in accordance with the procedure set forth in section 21(a)

of the Sentencing Act of 1987, as though the authority under

that Act had not expired.

(f) EFFECTIVE DATE.—This section and the amendments made

by this section shall apply with respect to offenses occurring on

or after the date of the enactment of this Act.

SEC. 204. INCREASED NUMBER OF ASSISTANT UNITED STATES ATTORNEYS.

(a) IN GENERAL.—The number of Assistant United States Attorneys employed by the Department of Justice for the fiscal year

1997 shall be increased by at least 25 above the number of Assistant

United States Attorneys that were authorized to be employed as

of September 30, 1996.

(b) ASSIGNMENT.—Individuals employed to fill the additional

positions described in subsection (a) shall prosecute persons who

bring into the United States or harbor illegal aliens or violate

other criminal statutes involving illegal aliens.

SEC. 205. UNDERCOVER INVESTIGATION AUTHORITY.

(a) IN GENERAL.—Title II is amended by adding at the end

the following new section:

8 USC 1324 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–568

‘‘UNDERCOVER INVESTIGATION AUTHORITY

‘‘SEC. 294. (a) IN GENERAL.—With respect to any undercover

investigative operation of the Service which is necessary for the

detection and prosecution of crimes against the United States—

‘‘(1) sums appropriated for the Service may be used for

leasing space within the United States and the territories and

possessions of the United States without regard to the following

provisions of law:

‘‘(A) section 3679(a) of the Revised Statutes (31 U.S.C.

1341),

‘‘(B) section 3732(a) of the Revised Statutes (41 U.S.C.

11(a)),

‘‘(C) section 305 of the Act of June 30, 1949 (63 Stat.

396; 41 U.S.C. 255),

‘‘(D) the third undesignated paragraph under the heading ‘Miscellaneous’ of the Act of March 3, 1877 (19 Stat.

370; 40 U.S.C. 34),

‘‘(E) section 3648 of the Revised Statutes (31 U.S.C.

3324),

‘‘(F) section 3741 of the Revised Statutes (41 U.S.C.

22), and

‘‘(G) subsections (a) and (c) of section 304 of the Federal

Property and Administrative Services Act of 1949 (63 Stat.

395; 41 U.S.C. 254 (a) and (c));

‘‘(2) sums appropriated for the Service may be used to

establish or to acquire proprietary corporations or business

entities as part of an undercover operation, and to operate

such corporations or business entities on a commercial basis,

without regard to the provisions of section 304 of the Government Corporation Control Act (31 U.S.C. 9102);

‘‘(3) sums appropriated for the Service, and the proceeds

from the undercover operation, may be deposited in banks

or other financial institutions without regard to the provisions

of section 648 of title 18, United States Code, and of section

3639 of the Revised Statutes (31 U.S.C. 3302); and

‘‘(4) the proceeds from the undercover operation may be

used to offset necessary and reasonable expenses incurred in

such operation without regard to the provisions of section 3617

of the Revised Statutes (31 U.S.C. 3302).

The authority set forth in this subsection may be exercised only

upon written certification of the Commissioner, in consultation with

the Deputy Attorney General, that any action authorized by paragraph (1), (2), (3), or (4) is necessary for the conduct of the undercover operation.

‘‘(b) DISPOSITION OF PROCEEDS NO LONGER REQUIRED.—As soon

as practicable after the proceeds from an undercover investigative

operation, carried out under paragraphs (3) and (4) of subsection

(a), are no longer necessary for the conduct of the operation, the

proceeds or the balance of the proceeds remaining at the time

shall be deposited into the Treasury of the United States as miscellaneous receipts.

‘‘(c) DISPOSITION OF CERTAIN CORPORATIONS AND BUSINESS

ENTITIES.—If a corporation or business entity established or

acquired as part of an undercover operation under paragraph (2)

of subsection (a) with a net value of over $50,000 is to be liquidated,

sold, or otherwise disposed of, the Service, as much in advance

8 USC 1363a.
110 STAT. 3009–569 PUBLIC LAW 104–208—SEPT. 30, 1996

as the Commissioner or Commissioner’s designee determines practicable, shall report the circumstances to the Attorney General,

the Director of the Office of Management and Budget, and the

Comptroller General. The proceeds of the liquidation, sale, or other

disposition, after obligations are met, shall be deposited in the

Treasury of the United States as miscellaneous receipts.

‘‘(d) FINANCIAL AUDITS.—The Service shall conduct detailed

financial audits of closed undercover operations on a quarterly

basis and shall report the results of the audits in writing to the

Deputy Attorney General.’’.

(b) CLERICAL AMENDMENT.—The table of contents is amended

by inserting after the item relating to section 293 the following:

‘‘Sec. 294. Undercover investigation authority.’’.

Subtitle B—Deterrence of Document Fraud

SEC. 211. INCREASED CRIMINAL PENALTIES FOR FRAUDULENT USE

OF GOVERNMENT-ISSUED DOCUMENTS.

(a) FRAUD AND MISUSE OF GOVERNMENT-ISSUED IDENTIFICATION

DOCUMENTS.—(1) Section 1028(b) of title 18, United States Code,

is amended—

(A) in paragraph (1), by inserting ‘‘except as provided in

paragraphs (3) and (4),’’ after ‘‘(1)’’ and by striking ‘‘five years’’

and inserting ‘‘15 years’’;

(B) in paragraph (2), by inserting ‘‘except as provided in

paragraphs (3) and (4),’’ after ‘‘(2)’’ and by striking ‘‘and’’ at

the end;

(C) by redesignating paragraph (3) as paragraph (5); and

(D) by inserting after paragraph (2) the following new

paragraphs:

‘‘(3) a fine under this title or imprisonment for not more

than 20 years, or both, if the offense is committed to facilitate

a drug trafficking crime (as defined in section 929(a)(2) of

this title);

‘‘(4) a fine under this title or imprisonment for not more

than 25 years, or both, if the offense is committed to facilitate

an act of international terrorism (as defined in section 2331(1)

of this title); and’’.

(2) Sections 1425 through 1427, sections 1541 through 1544,

and section 1546(a) of title 18, United States Code, are each amended by striking ‘‘imprisoned not more’’ and all that follows through

‘‘years’’ each place it appears and inserting the following: ‘‘imprisoned not more than 25 years (if the offense was committed to

facilitate an act of international terrorism (as defined in section

2331 of this title)), 20 years (if the offense was committed to

facilitate a drug trafficking crime (as defined in section 929(a)

of this title)), 10 years (in the case of the first or second such

offense, if the offense was not committed to facility such an act

of international terrorism or a drug trafficking crime), or 15 years

(in the case of any other offense)’’.

(b) CHANGES TO THE SENTENCING LEVELS.—

(1) IN GENERAL.—Pursuant to the Commission’s authority

under section 994(p) of title 28, United States Code, the United

States Sentencing Commission shall promulgate sentencing

guidelines or amend existing sentencing guidelines for offenders

28 USC 994 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–570

convicted of violating, or conspiring to violate, sections

1028(b)(1), 1425 through 1427, 1541 through 1544, and 1546(a)

of title 18, United States Code, in accordance with this subsection.

(2) REQUIREMENTS.—In carrying out this subsection, the

Commission shall, with respect to the offenses referred to in

paragraph (1)—

(A) increase the base offense level for such offenses

at least 2 offense levels above the level in effect on the

date of the enactment of this Act;

(B) review the sentencing enhancement for number

of documents or passports involved (U.S.S.G. 2L2.1(b)(2)),

and increase the upward adjustment by at least 50 percent

above the applicable enhancement in effect on the date

of the enactment of this Act;

(C) impose an appropriate sentencing enhancement

upon an offender with 1 prior felony conviction arising

out of a separate and prior prosecution for an offense

that involved the same or similar underlying conduct as

the current offense, to be applied in addition to any sentencing enhancement that would otherwise apply pursuant to

the calculation of the defendant’s criminal history category;

(D) impose an additional appropriate sentencing

enhancement upon an offender with 2 or more prior felony

convictions arising out of separate and prior prosecutions

for offenses that involved the same or similar underlying

conduct as the current offense, to be applied in addition

to any sentencing enhancement that would otherwise apply

pursuant to the calculation of the defendant’s criminal

history category; and

(E) consider whether any other aggravating or mitigating circumstances warrant upward or downward sentencing

adjustments.

(3) EMERGENCY AUTHORITY TO SENTENCING COMMISSION.—

The Commission shall promulgate the guidelines or amendments provided for under this subsection as soon as practicable

in accordance with the procedure set forth in section 21(a)

of the Sentencing Act of 1987, as though the authority under

that Act had not expired.

(c) EFFECTIVE DATE.—This section and the amendments made

by this section shall apply with respect to offenses occurring on

or after the date of the enactment of this Act.

SEC. 212. NEW DOCUMENT FRAUD OFFENSES; NEW CIVIL PENALTIES

FOR DOCUMENT FRAUD.

(a) ACTIVITIES PROHIBITED.—Section 274C(a) (8 U.S.C. 1324c(a))

is amended—

(1) in paragraph (1), by inserting before the comma at

the end the following: ‘‘or to obtain a benefit under this Act’’;

(2) in paragraph (2), by inserting before the comma at

the end the following: ‘‘or to obtain a benefit under this Act’’;

(3) in paragraph (3)—

(A) by inserting ‘‘or with respect to’’ after ‘‘issued to’’;

(B) by adding before the comma at the end the following: ‘‘or obtaining a benefit under this Act’’; and

(C) by striking ‘‘or’’ at the end;

(4) in paragraph (4)—

18 USC 1028

note.
110 STAT. 3009–571 PUBLIC LAW 104–208—SEPT. 30, 1996

(A) by inserting ‘‘or with respect to’’ after ‘‘issued to’’;

(B) by adding before the period at the end the following:

‘‘or obtaining a benefit under this Act’’; and

(C) by striking the period at the end and inserting

‘‘, or’’; and

(5) by adding at the end the following new paragraphs:

‘‘(5) to prepare, file, or assist another in preparing or filing,

any application for benefits under this Act, or any document

required under this Act, or any document submitted in connection with such application or document, with knowledge or

in reckless disregard of the fact that such application or document was falsely made or, in whole or in part, does not relate

to the person on whose behalf it was or is being submitted,

or

‘‘(6)(A) to present before boarding a common carrier for

the purpose of coming to the United States a document which

relates to the alien’s eligibility to enter the United States,

and (B) to fail to present such document to an immigration

officer upon arrival at a United States port of entry.’’.

(b) DEFINITION OF FALSELY MAKE.—Section 274C (8 U.S.C.

1324c), as amended by section 213 of this division, is further amended by adding at the end the following new subsection:

‘‘(f) FALSELY MAKE.—For purposes of this section, the term

‘falsely make’ means to prepare or provide an application or document, with knowledge or in reckless disregard of the fact that

the application or document contains a false, fictitious, or fraudulent

statement or material representation, or has no basis in law or

fact, or otherwise fails to state a fact which is material to the

purpose for which it was submitted.’’.

(c) CONFORMING AMENDMENT.—Section 274C(d)(3) (8 U.S.C.

1324c(d)(3)) is amended by striking ‘‘each document used, accepted,

or created and each instance of use, acceptance, or creation’’ each

place it appears and inserting ‘‘each document that is the subject

of a violation under subsection (a)’’.

(d) WAIVER BY ATTORNEY GENERAL.—Section 274C(d) (8 U.S.C.

1324c(d)) is amended by adding at the end the following new

paragraph:

‘‘(7) WAIVER BY ATTORNEY GENERAL.—The Attorney General

may waive the penalties imposed by this section with respect

to an alien who knowingly violates subsection (a)(6) if the

alien is granted asylum under section 208 or withholding of

deportation under section 243(h).’’.

(e) EFFECTIVE DATE.—Section 274C(f) of the Immigration and

Nationality Act, as added by subsection (b), applies to the preparation of applications before, on, or after the date of the enactment

of this Act.

SEC. 213. NEW CRIMINAL PENALTIES FOR FAILURE TO DISCLOSE ROLE

AS PREPARER OF FALSE APPLICATION FOR IMMIGRATION BENEFITS.

Section 274C (8 U.S.C. 1324c) is amended by adding at the

end the following new subsection:

‘‘(e) CRIMINAL PENALTIES FOR FAILURE TO DISCLOSE ROLE AS

DOCUMENT PREPARER.—(1) Whoever, in any matter within the jurisdiction of the Service, knowingly and willfully fails to disclose,

conceals, or covers up the fact that they have, on behalf of any

person and for a fee or other remuneration, prepared or assisted

8 USC 1324c

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–572

in preparing an application which was falsely made (as defined

in subsection (f)) for immigration benefits, shall be fined in accordance with title 18, United States Code, imprisoned for not more

than 5 years, or both, and prohibited from preparing or assisting

in preparing, whether or not for a fee or other remuneration,

any other such application.

‘‘(2) Whoever, having been convicted of a violation of paragraph

(1), knowingly and willfully prepares or assists in preparing an

application for immigration benefits pursuant to this Act, or the

regulations promulgated thereunder, whether or not for a fee or

other remuneration and regardless of whether in any matter within

the jurisdiction of the Service, shall be fined in accordance with

title 18, United States Code, imprisoned for not more than 15

years, or both, and prohibited from preparing or assisting in preparing any other such application.’’.

SEC. 214. CRIMINAL PENALTY FOR KNOWINGLY PRESENTING DOCUMENT WHICH FAILS TO CONTAIN REASONABLE BASIS IN

LAW OR FACT.

The fourth paragraph of section 1546(a) of title 18, United

States Code, is amended by striking ‘‘containing any such false

statement’’ and inserting ‘‘which contains any such false statement

or which fails to contain any reasonable basis in law or fact’’.

SEC. 215. CRIMINAL PENALTY FOR FALSE CLAIM TO CITIZENSHIP.

Section 1015 of title 18, United States Code, is amended—

(1) by striking the dash at the end of paragraph (d) and

inserting ‘‘; or’’, and

(2) by inserting after paragraph (d) the following:

‘‘(e) Whoever knowingly makes any false statement or claim

that he is, or at any time has been, a citizen or national of the

United States, with the intent to obtain on behalf of himself, or

any other person, any Federal or State benefit or service, or to

engage unlawfully in employment in the United States; or

‘‘(f) Whoever knowingly makes any false statement or claim

that he is a citizen of the United States in order to register to

vote or to vote in any Federal, State, or local election (including

an initiative, recall, or referendum)—’’.

SEC. 216. CRIMINAL PENALTY FOR VOTING BY ALIENS IN FEDERAL

ELECTION.

(a) IN GENERAL.—Title 18, United States Code, is amended

by inserting after section 610 the following:

‘‘§ 611. Voting by aliens

‘‘(a) It shall be unlawful for any alien to vote in any election

held solely or in part for the purpose of electing a candidate for

the office of President, Vice President, Presidential elector, Member

of the Senate, Member of the House of Representatives, Delegate

from the District of Columbia, or Resident Commissioner, unless—

‘‘(1) the election is held partly for some other purpose;

‘‘(2) aliens are authorized to vote for such other purpose

under a State constitution or statute or a local ordinance;

and

‘‘(3) voting for such other purpose is conducted independently of voting for a candidate for such Federal offices, in

such a manner that an alien has the opportunity to vote for
110 STAT. 3009–573 PUBLIC LAW 104–208—SEPT. 30, 1996

such other purpose, but not an opportunity to vote for a candidate for any one or more of such Federal offices.

‘‘(b) Any person who violates this section shall be fined under

this title, imprisoned not more than one year, or both.’’.

(b) CLERICAL AMENDMENT.—The table of sections at the beginning of chapter 29 of title 18, United States Code, is amended

by inserting after the item relating to section 610 the following

new item:

‘‘611. Voting by aliens.’’.

SEC. 217. CRIMINAL FORFEITURE FOR PASSPORT AND VISA RELATED

OFFENSES.

Section 982(a) of title 18, United States Code, is amended

by inserting after paragraph (5) the following new paragraph:

‘‘(6)(A) The court, in imposing sentence on a person convicted

of a violation of, or conspiracy to violate, section 1425, 1426, 1427,

1541, 1542, 1543, 1544, or 1546 of this title, or a violation of,

or conspiracy to violate, section 1028 of this title if committed

in connection with passport or visa issuance or use, shall order

that the person forfeit to the United States, regardless of any

provision of State law—

‘‘(i) any conveyance, including any vessel, vehicle, or aircraft used in the commission of a violation of, or a conspiracy

to violate, subsection (a); and

‘‘(ii) any property real or personal—

‘‘(I) that constitutes, or is derived from or is traceable

to the proceeds obtained directly or indirectly from the

commission of a violation of, or a conspiracy to violate,

subsection (a), section 274A(a)(1) or 274A(a)(2) of the

Immigration and Nationality Act, or section 1028, 1425,

1426, 1427, 1541, 1542, 1543, 1544, or 1546 of this title;

or

‘‘(II) that is used to facilitate, or is intended to be

used to facilitate, the commission of a violation of, or a

conspiracy to violate, subsection (a), section 274A(a)(1) or

274A(a)(2) of the Immigration and Nationality Act, or section 1028, 1425, 1426, 1427, 1541, 1542, 1543, 1544, or

1546 of this title.

The court, in imposing sentence on such person, shall order that

the person forfeit to the United States all property described in

this subparagraph.

‘‘(B) The criminal forfeiture of property under subparagraph

(A), including any seizure and disposition of the property and any

related administrative or judicial proceeding, shall be governed

by the provisions of section 413 of the Comprehensive Drug Abuse

Prevention and Control Act of 1970 (21 U.S.C. 853), other than

subsections (a) and (d) of such section 413.’’.

SEC. 218. CRIMINAL PENALTIES FOR INVOLUNTARY SERVITUDE.

(a) AMENDMENTS TO TITLE 18.—Sections 1581, 1583, 1584, and

1588 of title 18, United States Code, are amended by striking

‘‘five’’ each place it appears and inserting ‘‘10’’.

(b) REVIEW OF SENTENCING GUIDELINES.—The United States

Sentencing Commission shall ascertain whether there exists an

unwarranted disparity—

28 USC 994 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–574

(1) between the sentences for peonage, involuntary servitude, and slave trade offenses, and the sentences for kidnapping offenses in effect on the date of the enactment of this

Act; and

(2) between the sentences for peonage, involuntary servitude, and slave trade offenses, and the sentences for alien

smuggling offenses in effect on the date of the enactment of

this Act and after the amendment made by subsection (a).

(c) AMENDMENT OF SENTENCING GUIDELINES.—

(1) IN GENERAL.—Pursuant to its authority under section

994(p) of title 28, United States Code, the United States

Sentencing Commission shall review its guidelines on sentencing for peonage, involuntary servitude, and slave trade offenses

under sections 1581 through 1588 of title 18, United States

Code, and shall amend such guidelines as necessary to—

(A) reduce or eliminate any unwarranted disparity

found under subsection (b) that exists between the sentences for peonage, involuntary servitude, and slave trade

offenses, and the sentences for kidnapping offenses and

alien smuggling offenses;

(B) ensure that the applicable guidelines for defendants

convicted of peonage, involuntary servitude, and slave trade

offenses are sufficiently stringent to deter such offenses

and adequately reflect the heinous nature of such offenses;

and

(C) ensure that the guidelines reflect the general appropriateness of enhanced sentences for defendants whose

peonage, involuntary servitude, or slave trade offenses

involve—

(i) a large number of victims;

(ii) the use or threatened use of a dangerous

weapon; or

(iii) a prolonged period of peonage or involuntary

servitude.

(2) EMERGENCY AUTHORITY TO SENTENCING COMMISSION.—

The Commission shall promulgate the guidelines or amendments provided for under this subsection as soon as practicable

in accordance with the procedure set forth in section 21(a)

of the Sentencing Act of 1987, as though the authority under

that Act had not expired.

(d) EFFECTIVE DATE.—This section and the amendments made

by this section shall apply with respect to offenses occurring on

or after the date of the enactment of this Act.

SEC. 219. ADMISSIBILITY OF VIDEOTAPED WITNESS TESTIMONY.

Section 274 (8 U.S.C. 1324) is amended by adding at the end

thereof the following new subsection:

‘‘(d) Notwithstanding any provision of the Federal Rules of

Evidence, the videotaped (or otherwise audiovisually preserved)

deposition of a witness to a violation of subsection (a) who has

been deported or otherwise expelled from the United States, or

is otherwise unable to testify, may be admitted into evidence in

an action brought for that violation if the witness was available

for cross examination and the deposition otherwise complies with

the Federal Rules of Evidence.’’.

18 USC 1581

note.
110 STAT. 3009–575 PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 220. SUBPOENA AUTHORITY IN DOCUMENT FRAUD ENFORCEMENT.

Section 274C(d)(1) (8 U.S.C. 1324c(d)(1)) is amended—

(1) by striking ‘‘and’’ at the end of subparagraph (A);

(2) by striking the period at the end of subparagraph (B)

and inserting ‘‘, and’’; and

(3) by inserting after subparagraph (B) the following:

‘‘(C) immigration officers designated by the Commissioner may compel by subpoena the attendance of witnesses

and the production of evidence at any designated place

prior to the filing of a complaint in a case under paragraph

(2).’’.

TITLE III—INSPECTION, APPREHENSION, DETENTION, ADJUDICATION,

AND REMOVAL OF INADMISSIBLE AND

DEPORTABLE ALIENS

Subtitle A—Revision of Procedures for

Removal of Aliens

SEC. 301. TREATING PERSONS PRESENT IN THE UNITED STATES WITHOUT AUTHORIZATION AS NOT ADMITTED.

(a) ‘‘ADMISSION’’ DEFINED.—Paragraph (13) of section 101(a)

(8 U.S.C. 1101(a)) is amended to read as follows:

‘‘(13)(A) The terms ‘admission’ and ‘admitted’ mean, with

respect to an alien, the lawful entry of the alien into the United

States after inspection and authorization by an immigration officer.

‘‘(B) An alien who is paroled under section 212(d)(5) or permitted to land temporarily as an alien crewman shall not be considered to have been admitted.

‘‘(C) An alien lawfully admitted for permanent residence in

the United States shall not be regarded as seeking an admission

into the United States for purposes of the immigration laws unless

the alien—

‘‘(i) has abandoned or relinquished that status,

‘‘(ii) has been absent from the United States for a continuous period in excess of 180 days,

‘‘(iii) has engaged in illegal activity after having departed

the United States,

‘‘(iv) has departed from the United States while under

legal process seeking removal of the alien from the United

States, including removal proceedings under this Act and extradition proceedings,

‘‘(v) has committed an offense identified in section 212(a)(2),

unless since such offense the alien has been granted relief

under section 212(h) or 240A(a), or

‘‘(vi) is attempting to enter at a time or place other than

as designated by immigration officers or has not been admitted

to the United States after inspection and authorization by

an immigration officer.’’.

(b) INADMISSIBILITY OF ALIENS PREVIOUSLY REMOVED AND

UNLAWFULLY PRESENT.—
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–576

(1) IN GENERAL.—Section 212(a) (8 U.S.C. 1182(a)) is

amended by redesignating paragraph (9) as paragraph (10)

and by inserting after paragraph (8) the following new paragraph:

‘‘(9) ALIENS PREVIOUSLY REMOVED.—

‘‘(A) CERTAIN ALIENS PREVIOUSLY REMOVED.—

‘‘(i) ARRIVING ALIENS.—Any alien who has been

ordered removed under section 235(b)(1) or at the end

of proceedings under section 240 initiated upon the

alien’s arrival in the United States and who again

seeks admission within 5 years of the date of such

removal (or within 20 years in the case of a second

or subsequent removal or at any time in the case

of an alien convicted of an aggravated felony) is

inadmissible.

‘‘(ii) OTHER ALIENS.—Any alien not described in

clause (i) who—

‘‘(I) has been ordered removed under section

240 or any other provision of law, or

‘‘(II) departed the United States while an order

of removal was outstanding,

and who seeks admission within 10 years of the date

of such alien’s departure or removal (or within 20

years of such date in the case of a second or subsequent

removal or at any time in the case of an alien convicted

of an aggravated felony) is inadmissible.

‘‘(iii) EXCEPTION.—Clauses (i) and (ii) shall not

apply to an alien seeking admission within a period

if, prior to the date of the alien’s reembarkation at

a place outside the United States or attempt to be

admitted from foreign contiguous territory, the Attorney General has consented to the alien’s reapplying

for admission.

‘‘(B) ALIENS UNLAWFULLY PRESENT.—

‘‘(i) IN GENERAL.—Any alien (other than an alien

lawfully admitted for permanent residence) who—

‘‘(I) was unlawfully present in the United

States for a period of more than 180 days but

less than 1 year, voluntarily departed the United

States (whether or not pursuant to section 244(e))

prior to the commencement of proceedings under

section 235(b)(1) or section 240, and again seeks

admission within 3 years of the date of such alien’s

departure or removal, or

‘‘(II) has been unlawfully present in the United

States for one year or more, and who again seeks

admission within 10 years of the date of such

alien’s departure or removal from the United

States,

is inadmissible.

‘‘(ii) CONSTRUCTION OF UNLAWFUL PRESENCE.—For

purposes of this paragraph, an alien is deemed to

be unlawfully present in the United States if the alien

is present in the United States after the expiration

of the period of stay authorized by the Attorney General or is present in the United States without being

admitted or paroled.
110 STAT. 3009–577 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(iii) EXCEPTIONS.—

‘‘(I) MINORS.—No period of time in which an

alien is under 18 years of age shall be taken into

account in determining the period of unlawful presence in the United States under clause (i).

‘‘(II) ASYLEES.—No period of time in which

an alien has a bona fide application for asylum

pending under section 208 shall be taken into

account in determining the period of unlawful presence in the United States under clause (i) unless

the alien during such period was employed without

authorization in the United States.

‘‘(III) FAMILY UNITY.—No period of time in

which the alien is a beneficiary of family unity

protection pursuant to section 301 of the Immigration Act of 1990 shall be taken into account in

determining the period of unlawful presence in

the United States under clause (i).

‘‘(IV) BATTERED WOMEN AND CHILDREN.—

Clause (i) shall not apply to an alien who would

be described in paragraph (6)(A)(ii) if ‘violation

of the terms of the alien’s nonimmigrant visa’ were

substituted for ‘unlawful entry into the United

States’ in subclause (III) of that paragraph.

‘‘(iv) TOLLING FOR GOOD CAUSE.—In the case of

an alien who—

‘‘(I) has been lawfully admitted or paroled into

the United States,

‘‘(II) has filed a nonfrivolous application for

a change or extension of status before the date

of expiration of the period of stay authorized by

the Attorney General, and

‘‘(III) has not been employed without

authorization in the United States before or during

the pendency of such application,

the calculation of the period of time specified in clause

(i)(I) shall be tolled during the pendency of such

application, but not to exceed 120 days.

‘‘(v) WAIVER.—The Attorney General has sole

discretion to waive clause (i) in the case of an

immigrant who is the spouse or son or daughter of

a United States citizen or of an alien lawfully admitted

for permanent residence, if it is established to the

satisfaction of the Attorney General that the refusal

of admission to such immigrant alien would result

in extreme hardship to the citizen or lawfully resident

spouse or parent of such alien. No court shall have

jurisdiction to review a decision or action by the Attorney General regarding a waiver under this clause.

‘‘(C) ALIENS UNLAWFULLY PRESENT AFTER PREVIOUS

IMMIGRATION VIOLATIONS.—

‘‘(i) IN GENERAL.—Any alien who—

‘‘(I) has been unlawfully present in the United

States for an aggregate period of more than 1

year, or
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–578

‘‘(II) has been ordered removed under section

235(b)(1), section 240, or any other provision of

law,

and who enters or attempts to reenter the United

States without being admitted is inadmissible.

‘‘(ii) EXCEPTION.—Clause (i) shall not apply to an

alien seeking admission more than 10 years after the

date of the alien’s last departure from the United

States if, prior to the alien’s reembarkation at a place

outside the United States or attempt to be readmitted

from a foreign contiguous territory, the Attorney General has consented to the alien’s reapplying for admission.’’.

(2) LIMITATION ON CHANGE OF STATUS.—Section 248 (8

U.S.C. 1258) is amended by inserting ‘‘and who is not inadmissible under section 212(a)(9)(B)(i) (or whose inadmissibility

under such section is waived under section 212(a)(9)(B)(v))’’

after ‘‘maintain that status’’.

(3) TREATMENT OF UNLAWFUL PRESENCE BEFORE EFFECTIVE

DATE.—In applying section 212(a)(9)(B) of the Immigration and

Nationality Act, as inserted by paragraph (1), no period before

the title III–A effective date shall be included in a period

of unlawful presence in the United States.

(c) REVISION TO GROUND OF INADMISSIBILITY FOR ILLEGAL

ENTRANTS AND IMMIGRATION VIOLATORS.—

(1) IN GENERAL.—Subparagraphs (A) and (B) of section

212(a)(6) (8 U.S.C. 1182(a)(6)) are amended to read as follows:

‘‘(A) ALIENS PRESENT WITHOUT ADMISSION OR PAROLE.—

‘‘(i) IN GENERAL.—An alien present in the United

States without being admitted or paroled, or who

arrives in the United States at any time or place

other than as designated by the Attorney General,

is inadmissible.

‘‘(ii) EXCEPTION FOR CERTAIN BATTERED WOMEN

AND CHILDREN.—Clause (i) shall not apply to an alien

who demonstrates that—

‘‘(I) the alien qualifies for immigrant status

under subparagraph (A)(iii), (A)(iv), (B)(ii), or

(B)(iii) of section 204(a)(1),

‘‘(II)(a) the alien has been battered or subjected to extreme cruelty by a spouse or parent,

or by a member of the spouse’s or parent’s family

residing in the same household as the alien and

the spouse or parent consented or acquiesced to

such battery or cruelty, or (b) the alien’s child

has been battered or subjected to extreme cruelty

by a spouse or parent of the alien (without the

active participation of the alien in the battery or

cruelty) or by a member of the spouse’s or parent’s

family residing in the same household as the alien

when the spouse or parent consented to or

acquiesced in such battery or cruelty and the alien

did not actively participate in such battery or cruelty, and

8 USC 1182 note.
110 STAT. 3009–579 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(III) there was a substantial connection

between the battery or cruelty described in subclause (I) or (II) and the alien’s unlawful entry

into the United States.

‘‘(B) FAILURE TO ATTEND REMOVAL PROCEEDING.—Any

alien who without reasonable cause fails or refuses to

attend or remain in attendance at a proceeding to determine the alien’s inadmissibility or deportability and who

seeks admission to the United States within 5 years of

such alien’s subsequent departure or removal is inadmissible. ’’.

(2) TRANSITION FOR BATTERED SPOUSE OR CHILD PROVI- SION.—The requirements of subclauses (II) and (III) of section

212(a)(6)(A)(ii) of the Immigration and Nationality Act, as

inserted by paragraph (1), shall not apply to an alien who

demonstrates that the alien first arrived in the United States

before the title III–A effective date (described in section 309(a)

of this division).

(d) ADJUSTMENT IN GROUNDS FOR DEPORTATION.—Section 241

(8 U.S.C. 1251), before redesignation as section 237 by section

305(a)(2) of this division, is amended—

(1) in the matter before paragraph (1) of subsection (a),

by striking ‘‘in the United States’’ and inserting ‘‘in and admitted to the United States’’;

(2) in subsection (a)(1), by striking ‘‘EXCLUDABLE’’ each

place it appears and inserting ‘‘INADMISSIBLE’’;

(3) in subsection (a)(1)(A), by striking ‘‘excludable’’ and

inserting ‘‘inadmissible’’; and

(4) by amending subparagraph (B) of subsection (a)(1) to

read as follows:

‘‘(B) PRESENT IN VIOLATION OF LAW.—Any alien who

is present in the United States in violation of this Act

or any other law of the United States is deportable.

SEC. 302. INSPECTION OF ALIENS; EXPEDITED REMOVAL OF INADMISSIBLE ARRIVING ALIENS; REFERRAL FOR HEARING

(REVISED SECTION 235).

(a) IN GENERAL.—Section 235 (8 U.S.C. 1225) is amended to

read as follows:

‘‘INSPECTION BY IMMIGRATION OFFICERS; EXPEDITED REMOVAL OF

INADMISSIBLE ARRIVING ALIENS; REFERRAL FOR HEARING

‘‘SEC. 235. (a) INSPECTION.— ‘‘(1) ALIENS TREATED AS APPLICANTS FOR ADMISSION.—An

alien present in the United States who has not been admitted

or who arrives in the United States (whether or not at a

designated port of arrival and including an alien who is brought

to the United States after having been interdicted in international or United States waters) shall be deemed for purposes

of this Act an applicant for admission.

‘‘(2) STOWAWAYS.—An arriving alien who is a stowaway

is not eligible to apply for admission or to be admitted and

shall be ordered removed upon inspection by an immigration

officer. Upon such inspection if the alien indicates an intention

to apply for asylum under section 208 or a fear of persecution,

the officer shall refer the alien for an interview under subsection (b)(1)(B). A stowaway may apply for asylum only if

8 USC 1182 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–580

the stowaway is found to have a credible fear of persecution

under subsection (b)(1)(B). In no case may a stowaway be

considered an applicant for admission or eligible for a hearing

under section 240.

‘‘(3) INSPECTION.—All aliens (including alien crewmen) who

are applicants for admission or otherwise seeking admission

or readmission to or transit through the United States shall

be inspected by immigration officers.

‘‘(4) WITHDRAWAL OF APPLICATION FOR ADMISSION.—An

alien applying for admission may, in the discretion of the Attorney General and at any time, be permitted to withdraw the

application for admission and depart immediately from the

United States.

‘‘(5) STATEMENTS.—An applicant for admission may be

required to state under oath any information sought by an

immigration officer regarding the purposes and intentions of

the applicant in seeking admission to the United States, including the applicant’s intended length of stay and whether the

applicant intends to remain permanently or become a United

States citizen, and whether the applicant is inadmissible.

‘‘(b) INSPECTION OF APPLICANTS FOR ADMISSION.—

‘‘(1) INSPECTION OF ALIENS ARRIVING IN THE UNITED STATES

AND CERTAIN OTHER ALIENS WHO HAVE NOT BEEN ADMITTED

OR PAROLED.—

‘‘(A) SCREENING.—

‘‘(i) IN GENERAL.—If an immigration officer determines that an alien (other than an alien described

in subparagraph (F)) who is arriving in the United

States or is described in clause (iii) is inadmissible

under section 212(a)(6)(C) or 212(a)(7), the officer shall

order the alien removed from the United States without

further hearing or review unless the alien indicates

either an intention to apply for asylum under section

208 or a fear of persecution.

‘‘(ii) CLAIMS FOR ASYLUM.—If an immigration officer determines that an alien (other than an alien

described in subparagraph (F)) who is arriving in the

United States or is described in clause (iii) is inadmissible under section 212(a)(6)(C) or 212(a)(7) and the

alien indicates either an intention to apply for asylum

under section 208 or a fear of persecution, the officer

shall refer the alien for an interview by an asylum

officer under subparagraph (B).

‘‘(iii) APPLICATION TO CERTAIN OTHER ALIENS.—

‘‘(I) IN GENERAL.—The Attorney General may

apply clauses (i) and (ii) of this subparagraph to

any or all aliens described in subclause (II) as

designated by the Attorney General. Such designation shall be in the sole and unreviewable discretion of the Attorney General and may be modified

at any time.

‘‘(II) ALIENS DESCRIBED.—An alien described

in this clause is an alien who is not described

in subparagraph (F), who has not been admitted

or paroled into the United States, and who has

not affirmatively shown, to the satisfaction of an
110 STAT. 3009–581 PUBLIC LAW 104–208—SEPT. 30, 1996

immigration officer, that the alien has been physically present in the United States continuously

for the 2-year period immediately prior to the date

of the determination of inadmissibility under this

subparagraph.

‘‘(B) ASYLUM INTERVIEWS.—

‘‘(i) CONDUCT BY ASYLUM OFFICERS.—An asylum

officer shall conduct interviews of aliens referred under

subparagraph (A)(ii), either at a port of entry or at

such other place designated by the Attorney General.

‘‘(ii) REFERRAL OF CERTAIN ALIENS.—If the officer

determines at the time of the interview that an alien

has a credible fear of persecution (within the meaning

of clause (v)), the alien shall be detained for further

consideration of the application for asylum.

‘‘(iii) REMOVAL WITHOUT FURTHER REVIEW IF NO

CREDIBLE FEAR OF PERSECUTION.—

‘‘(I) IN GENERAL.—Subject to subclause (III),

if the officer determines that an alien does not

have a credible fear of persecution, the officer shall

order the alien removed from the United States

without further hearing or review.

‘‘(II) RECORD OF DETERMINATION.—The officer

shall prepare a written record of a determination

under subclause (I). Such record shall include a

summary of the material facts as stated by the

applicant, such additional facts (if any) relied upon

by the officer, and the officer’s analysis of why,

in the light of such facts, the alien has not established a credible fear of persecution. A copy of

the officer’s interview notes shall be attached to

the written summary.

‘‘(III) REVIEW OF DETERMINATION.—The Attorney General shall provide by regulation and upon

the alien’s request for prompt review by an

immigration judge of a determination under subclause (I) that the alien does not have a credible

fear of persecution. Such review shall include an

opportunity for the alien to be heard and questioned by the immigration judge, either in person

or by telephonic or video connection. Review shall

be concluded as expeditiously as possible, to the

maximum extent practicable within 24 hours, but

in no case later than 7 days after the date of

the determination under subclause (I).

‘‘(IV) MANDATORY DETENTION.—Any alien subject to the procedures under this clause shall be

detained pending a final determination of credible

fear of persecution and, if found not to have such

a fear, until removed.

‘‘(iv) INFORMATION ABOUT INTERVIEWS.—The Attorney General shall provide information concerning the

asylum interview described in this subparagraph to

aliens who may be eligible. An alien who is eligible

for such interview may consult with a person or persons of the alien’s choosing prior to the interview or

any review thereof, according to regulations prescribed
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–582

by the Attorney General. Such consultation shall be

at no expense to the Government and shall not

unreasonably delay the process.

‘‘(v) CREDIBLE FEAR OF PERSECUTION DEFINED.—

For purposes of this subparagraph, the term ‘credible

fear of persecution’ means that there is a significant

possibility, taking into account the credibility of the

statements made by the alien in support of the alien’s

claim and such other facts as are known to the officer,

that the alien could establish eligibility for asylum

under section 208.

‘‘(C) LIMITATION ON ADMINISTRATIVE REVIEW.—Except

as provided in subparagraph (B)(iii)(III), a removal order

entered in accordance with subparagraph (A)(i) or (B)(iii)(I)

is not subject to administrative appeal, except that the

Attorney General shall provide by regulation for prompt

review of such an order under subparagraph (A)(i) against

an alien who claims under oath, or as permitted under

penalty of perjury under section 1746 of title 28, United

States Code, after having been warned of the penalties

for falsely making such claim under such conditions, to

have been lawfully admitted for permanent residence, to

have been admitted as a refugee under section 207, or

to have been granted asylum under section 208.

‘‘(D) LIMIT ON COLLATERAL ATTACKS.—In any action

brought against an alien under section 275(a) or section

276, the court shall not have jurisdiction to hear any claim

attacking the validity of an order of removal entered under

subparagraph (A)(i) or (B)(iii).

‘‘(E) ASYLUM OFFICER DEFINED.—As used in this paragraph, the term ‘asylum officer’ means an immigration

officer who—

‘‘(i) has had professional training in country conditions, asylum law, and interview techniques comparable to that provided to full-time adjudicators of

applications under section 208, and

‘‘(ii) is supervised by an officer who meets the

condition described in clause (i) and has had substantial experience adjudicating asylum applications.

‘‘(F) EXCEPTION.—Subparagraph (A) shall not apply to

an alien who is a native or citizen of a country in the

Western Hemisphere with whose government the United

States does not have full diplomatic relations and who

arrives by aircraft at a port of entry.

‘‘(2) INSPECTION OF OTHER ALIENS.—

‘‘(A) IN GENERAL.—Subject to subparagraphs (B) and

(C), in the case of an alien who is an applicant for admission, if the examining immigration officer determines that

an alien seeking admission is not clearly and beyond a

doubt entitled to be admitted, the alien shall be detained

for a proceeding under section 240.

‘‘(B) EXCEPTION.—Subparagraph (A) shall not apply

to an alien—

‘‘(i) who is a crewman,

‘‘(ii) to whom paragraph (1) applies, or

‘‘(iii) who is a stowaway.
110 STAT. 3009–583 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(C) TREATMENT OF ALIENS ARRIVING FROM CONTIGUOUS

TERRITORY.—In the case of an alien described in subparagraph (A) who is arriving on land (whether or not at

a designated port of arrival) from a foreign territory contiguous to the United States, the Attorney General may return

the alien to that territory pending a proceeding under

section 240.

‘‘(3) CHALLENGE OF DECISION.—The decision of the examining immigration officer, if favorable to the admission of any

alien, shall be subject to challenge by any other immigration

officer and such challenge shall operate to take the alien whose

privilege to be admitted is so challenged, before an immigration

judge for a proceeding under section 240.

‘‘(c) REMOVAL OF ALIENS INADMISSIBLE ON SECURITY AND

RELATED GROUNDS.—

‘‘(1) REMOVAL WITHOUT FURTHER HEARING.—If an immigration officer or an immigration judge suspects that an arriving

alien may be inadmissible under subparagraph (A) (other than

clause (ii)), (B), or (C) of section 212(a)(3), the officer or judge

shall—

‘‘(A) order the alien removed, subject to review under

paragraph (2);

‘‘(B) report the order of removal to the Attorney General; and

‘‘(C) not conduct any further inquiry or hearing until

ordered by the Attorney General.

‘‘(2) REVIEW OF ORDER.—(A) The Attorney General shall

review orders issued under paragraph (1).

‘‘(B) If the Attorney General—

‘‘(i) is satisfied on the basis of confidential information

that the alien is inadmissible under subparagraph (A)

(other than clause (ii)), (B), or (C) of section 212(a)(3),

and

‘‘(ii) after consulting with appropriate security agencies

of the United States Government, concludes that disclosure

of the information would be prejudicial to the public

interest, safety, or security,

the Attorney General may order the alien removed without

further inquiry or hearing by an immigration judge.

‘‘(C) If the Attorney General does not order the removal

of the alien under subparagraph (B), the Attorney General

shall specify the further inquiry or hearing that shall be conducted in the case.

‘‘(3) SUBMISSION OF STATEMENT AND INFORMATION.—The

alien or the alien’s representative may submit a written statement and additional information for consideration by the Attorney General.

‘‘(d) AUTHORITY RELATING TO INSPECTIONS.—

‘‘(1) AUTHORITY TO SEARCH CONVEYANCES.—Immigration

officers are authorized to board and search any vessel, aircraft,

railway car, or other conveyance or vehicle in which they believe

aliens are being brought into the United States.

‘‘(2) AUTHORITY TO ORDER DETENTION AND DELIVERY OF

ARRIVING ALIENS.—Immigration officers are authorized to order

an owner, agent, master, commanding officer, person in charge,

purser, or consignee of a vessel or aircraft bringing an alien

(except an alien crewmember) to the United States—
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–584

‘‘(A) to detain the alien on the vessel or at the airport

of arrival, and

‘‘(B) to deliver the alien to an immigration officer for

inspection or to a medical officer for examination.

‘‘(3) ADMINISTRATION OF OATH AND CONSIDERATION OF EVIDENCE.—The Attorney General and any immigration officer

shall have power to administer oaths and to take and consider

evidence of or from any person touching the privilege of any

alien or person he believes or suspects to be an alien to enter,

reenter, transit through, or reside in the United States or

concerning any matter which is material and relevant to the

enforcement of this Act and the administration of the Service.

‘‘(4) SUBPOENA AUTHORITY.—(A) The Attorney General and

any immigration officer shall have power to require by subpoena

the attendance and testimony of witnesses before immigration

officers and the production of books, papers, and documents

relating to the privilege of any person to enter, reenter, reside

in, or pass through the United States or concerning any matter

which is material and relevant to the enforcement of this Act

and the administration of the Service, and to that end may

invoke the aid of any court of the United States.

‘‘(B) Any United States district court within the jurisdiction

of which investigations or inquiries are being conducted by

an immigration officer may, in the event of neglect or refusal

to respond to a subpoena issued under this paragraph or refusal

to testify before an immigration officer, issue an order requiring

such persons to appear before an immigration officer, produce

books, papers, and documents if demanded, and testify, and

any failure to obey such order of the court may be punished

by the court as a contempt thereof.’’.

(b) GAO STUDY ON OPERATION OF EXPEDITED REMOVAL PROCEDURES.—

(1) STUDY.—The Comptroller General shall conduct a study

on the implementation of the expedited removal procedures

under section 235(b)(1) of the Immigration and Nationality

Act, as amended by subsection (a). The study shall examine—

(A) the effectiveness of such procedures in deterring

illegal entry,

(B) the detention and adjudication resources saved as

a result of the procedures,

(C) the administrative and other costs expended to

comply with the provision,

(D) the effectiveness of such procedures in processing

asylum claims by undocumented aliens who assert a fear

of persecution, including the accuracy of credible fear determinations, and

(E) the cooperation of other countries and air carriers

in accepting and returning aliens removed under such

procedures.

(2) REPORT.—By not later than 18 months after the date

of the enactment of this Act, the Comptroller General shall

submit to the Committees on the Judiciary of the House of

Representatives and the Senate a report on the study conducted

under paragraph (1).

8 USC 1225 note.
110 STAT. 3009–585 PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 303. APPREHENSION AND DETENTION OF ALIENS (REVISED SECTION 236).

(a) IN GENERAL.—Section 236 (8 U.S.C. 1226) is amended to

read as follows:

‘‘APPREHENSION AND DETENTION OF ALIENS

‘‘SEC. 236. (a) ARREST, DETENTION, AND RELEASE.—On a warrant issued by the Attorney General, an alien may be arrested

and detained pending a decision on whether the alien is to be

removed from the United States. Except as provided in subsection

(c) and pending such decision, the Attorney General—

‘‘(1) may continue to detain the arrested alien; and

‘‘(2) may release the alien on—

‘‘(A) bond of at least $1,500 with security approved

by, and containing conditions prescribed by, the Attorney

General; or

‘‘(B) conditional parole; but

‘‘(3) may not provide the alien with work authorization

(including an ‘employment authorized’ endorsement or other

appropriate work permit), unless the alien is lawfully admitted

for permanent residence or otherwise would (without regard

to removal proceedings) be provided such authorization.

‘‘(b) REVOCATION OF BOND OR PAROLE.—The Attorney General

at any time may revoke a bond or parole authorized under subsection (a), rearrest the alien under the original warrant, and

detain the alien.

‘‘(c) DETENTION OF CRIMINAL ALIENS.—

‘‘(1) CUSTODY.—The Attorney General shall take into custody any alien who—

‘‘(A) is inadmissible by reason of having committed

any offense covered in section 212(a)(2),

‘‘(B) is deportable by reason of having committed any

offense covered in section 237(a)(2)(A)(ii), (A)(iii), (B), (C),

or (D),

‘‘(C) is deportable under section 237(a)(2)(A)(i) on the

basis of an offense for which the alien has been sentence

to a term of imprisonment of at least 1 year, or

‘‘(D) is inadmissible under section 212(a)(3)(B) or

deportable under section 237(a)(4)(B),

when the alien is released, without regard to whether the

alien is released on parole, supervised release, or probation,

and without regard to whether the alien may be arrested or

imprisoned again for the same offense.

‘‘(2) RELEASE.—The Attorney General may release an alien

described in paragraph (1) only if the Attorney General decides

pursuant to section 3521 of title 18, United States Code, that

release of the alien from custody is necessary to provide protection to a witness, a potential witness, a person cooperating

with an investigation into major criminal activity, or an immediate family member or close associate of a witness, potential

witness, or person cooperating with such an investigation, and

the alien satisfies the Attorney General that the alien will

not pose a danger to the safety of other persons or of property

and is likely to appear for any scheduled proceeding. A decision

relating to such release shall take place in accordance with
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–586

a procedure that considers the severity of the offense committed

by the alien.

‘‘(d) IDENTIFICATION OF CRIMINAL ALIENS.—(1) The Attorney

General shall devise and implement a system—

‘‘(A) to make available, daily (on a 24-hour basis), to Federal, State, and local authorities the investigative resources

of the Service to determine whether individuals arrested by

such authorities for aggravated felonies are aliens;

‘‘(B) to designate and train officers and employees of the

Service to serve as a liaison to Federal, State, and local law

enforcement and correctional agencies and courts with respect

to the arrest, conviction, and release of any alien charged

with an aggravated felony; and

‘‘(C) which uses computer resources to maintain a current

record of aliens who have been convicted of an aggravated

felony, and indicates those who have been removed.

‘‘(2) The record under paragraph (1)(C) shall be made available—

‘‘(A) to inspectors at ports of entry and to border patrol

agents at sector headquarters for purposes of immediate identification of any alien who was previously ordered removed and

is seeking to reenter the United States, and

‘‘(B) to officials of the Department of State for use in

its automated visa lookout system.

‘‘(3) Upon the request of the governor or chief executive officer

of any State, the Service shall provide assistance to State courts

in the identification of aliens unlawfully present in the United

States pending criminal prosecution.

‘‘(e) JUDICIAL REVIEW.—The Attorney General’s discretionary

judgment regarding the application of this section shall not be

subject to review. No court may set aside any action or decision

by the Attorney General under this section regarding the detention

or release of any alien or the grant, revocation, or denial of bond

or parole.’’.

(b) EFFECTIVE DATE.—

(1) IN GENERAL.—The amendment made by subsection (a)

shall become effective on the title III–A effective date.

(2) NOTIFICATION REGARDING CUSTODY.—If the Attorney

General, not later than 10 days after the date of the enactment

of this Act, notifies in writing the Committees on the Judiciary

of the House of Representatives and the Senate that there

is insufficient detention space and Immigration and Naturalization Service personnel available to carry out section 236(c)

of the Immigration and Nationality Act, as amended by subsection (a), or the amendments made by section 440(c) of Public

Law 104–132, the provisions in paragraph (3) shall be in effect

for a 1-year period beginning on the date of such notification,

instead of such section or such amendments. The Attorney

General may extend such 1-year period for an additional year

if the Attorney General provides the same notice not later

than 10 days before the end of the first 1-year period. After

the end of such 1-year or 2-year periods, the provisions of

such section 236(c) shall apply to individuals released after

such periods.

(3) TRANSITION PERIOD CUSTODY RULES.—

8 USC 1226 note.
110 STAT. 3009–587 PUBLIC LAW 104–208—SEPT. 30, 1996

(A) IN GENERAL.—During the period in which this paragraph is in effect pursuant to paragraph (2), the Attorney

General shall take into custody any alien who—

(i) has been convicted of an aggravated felony (as

defined under section 101(a)(43) of the Immigration

and Nationality Act, as amended by section 321 of

this division),

(ii) is inadmissible by reason of having committed

any offense covered in section 212(a)(2) of such Act,

(iii) is deportable by reason of having committed

any offense covered in section 241(a)(2)(A)(ii), (A)(iii),

(B), (C), or (D) of such Act (before redesignation under

this subtitle), or

(iv) is inadmissible under section 212(a)(3)(B) of

such Act or deportable under section 241(a)(4)(B) of

such Act (before redesignation under this subtitle),

when the alien is released, without regard to whether

the alien is released on parole, supervised release, or probation, and without regard to whether the alien may be

arrested or imprisoned again for the same offense.

(B) RELEASE.—The Attorney General may release the

alien only if the alien is an alien described in subparagraph

(A)(ii) or (A)(iii) and—

(i) the alien was lawfully admitted to the United

States and satisfies the Attorney General that the

alien will not pose a danger to the safety of other

persons or of property and is likely to appear for any

scheduled proceeding, or

(ii) the alien was not lawfully admitted to the

United States, cannot be removed because the designated country of removal will not accept the alien,

and satisfies the Attorney General that the alien will

not pose a danger to the safety of other persons or

of property and is likely to appear for any scheduled

proceeding.

SEC. 304. REMOVAL PROCEEDINGS; CANCELLATION OF REMOVAL AND

ADJUSTMENT OF STATUS; VOLUNTARY DEPARTURE

(REVISED AND NEW SECTIONS 239 TO 240C).

(a) IN GENERAL.—Chapter 4 of title II is amended—

(1) by redesignating section 239 (8 U.S.C. 1229) as section

234 and by moving such section to immediately follow section

233;

(2) by redesignating section 240 (8 U.S.C. 1230) as section

240C; and

(3) by inserting after section 238 the following new sections:

‘‘INITIATION OF REMOVAL PROCEEDINGS

‘‘SEC. 239. (a) NOTICE TO APPEAR.—

‘‘(1) IN GENERAL.—In removal proceedings under section

240, written notice (in this section referred to as a ‘notice

to appear’) shall be given in person to the alien (or, if personal

service is not practicable, through service by mail to the alien

or to the alien’s counsel of record, if any) specifying the following:

‘‘(A) The nature of the proceedings against the alien.

8 USC 1229.

8 USC 1224.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–588

‘‘(B) The legal authority under which the proceedings

are conducted.

‘‘(C) The acts or conduct alleged to be in violation

of law.

‘‘(D) The charges against the alien and the statutory

provisions alleged to have been violated.

‘‘(E) The alien may be represented by counsel and

the alien will be provided (i) a period of time to secure

counsel under subsection (b)(1) and (ii) a current list of

counsel prepared under subsection (b)(2).

‘‘(F)(i) The requirement that the alien must immediately provide (or have provided) the Attorney General

with a written record of an address and telephone number

(if any) at which the alien may be contacted respecting

proceedings under section 240.

‘‘(ii) The requirement that the alien must provide the

Attorney General immediately with a written record of

any change of the alien’s address or telephone number.

‘‘(iii) The consequences under section 240(b)(5) of failure to provide address and telephone information pursuant

to this subparagraph.

‘‘(G)(i) The time and place at which the proceedings

will be held.

‘‘(ii) The consequences under section 240(b)(5) of the

failure, except under exceptional circumstances, to appear

at such proceedings.

‘‘(2) NOTICE OF CHANGE IN TIME OR PLACE OF PROCEEDINGS.—

‘‘(A) IN GENERAL.—In removal proceedings under section 240, in the case of any change or postponement in

the time and place of such proceedings, subject to subparagraph (B) a written notice shall be given in person to

the alien (or, if personal service is not practicable, through

service by mail to the alien or to the alien’s counsel of

record, if any) specifying—

‘‘(i) the new time or place of the proceedings, and

‘‘(ii) the consequences under section 240(b)(5) of

failing, except under exceptional circumstances, to

attend such proceedings.

‘‘(B) EXCEPTION.—In the case of an alien not in detention, a written notice shall not be required under this

paragraph if the alien has failed to provide the address

required under paragraph (1)(F).

‘‘(3) CENTRAL ADDRESS FILES.—The Attorney General shall

create a system to record and preserve on a timely basis notices

of addresses and telephone numbers (and changes) provided

under paragraph (1)(F).

‘‘(b) SECURING OF COUNSEL.—

‘‘(1) IN GENERAL.—In order that an alien be permitted

the opportunity to secure counsel before the first hearing date

in proceedings under section 240, the hearing date shall not

be scheduled earlier than 10 days after the service of the

notice to appear, unless the alien requests in writing an earlier

hearing date.

‘‘(2) CURRENT LISTS OF COUNSEL.—The Attorney General

shall provide for lists (updated not less often than quarterly)

of persons who have indicated their availability to represent
110 STAT. 3009–589 PUBLIC LAW 104–208—SEPT. 30, 1996

pro bono aliens in proceedings under section 240. Such lists

shall be provided under subsection (a)(1)(E) and otherwise made

generally available.

‘‘(3) RULE OF CONSTRUCTION.—Nothing in this subsection

may be construed to prevent the Attorney General from

proceeding against an alien pursuant to section 240 if the

time period described in paragraph (1) has elapsed and the

alien has failed to secure counsel.

‘‘(c) SERVICE BY MAIL.—Service by mail under this section shall

be sufficient if there is proof of attempted delivery to the last

address provided by the alien in accordance with subsection

(a)(1)(F).

‘‘(d) PROMPT INITIATION OF REMOVAL.—(1) In the case of an

alien who is convicted of an offense which makes the alien deportable, the Attorney General shall begin any removal proceeding

as expeditiously as possible after the date of the conviction.

‘‘(2) Nothing in this subsection shall be construed to create

any substantive or procedural right or benefit that is legally enforceable by any party against the United States or its agencies or

officers or any other person.

‘‘REMOVAL PROCEEDINGS

‘‘SEC. 240. (a) PROCEEDING.— ‘‘(1) IN GENERAL.—An immigration judge shall conduct

proceedings for deciding the inadmissibility or deportability

of an alien.

‘‘(2) CHARGES.—An alien placed in proceedings under this

section may be charged with any applicable ground of inadmissibility under section 212(a) or any applicable ground of deportability under section 237(a).

‘‘(3) EXCLUSIVE PROCEDURES.—Unless otherwise specified

in this Act, a proceeding under this section shall be the sole

and exclusive procedure for determining whether an alien may

be admitted to the United States or, if the alien has been

so admitted, removed from the United States. Nothing in this

section shall affect proceedings conducted pursuant to section

238.

‘‘(b) CONDUCT OF PROCEEDING.— ‘‘(1) AUTHORITY OF IMMIGRATION JUDGE.—The immigration

judge shall administer oaths, receive evidence, and interrogate,

examine, and cross-examine the alien and any witnesses. The

immigration judge may issue subpoenas for the attendance

of witnesses and presentation of evidence. The immigration

judge shall have authority (under regulations prescribed by

the Attorney General) to sanction by civil money penalty any

action (or inaction) in contempt of the judge’s proper exercise

of authority under this Act.

‘‘(2) FORM OF PROCEEDING.— ‘‘(A) IN GENERAL.—The proceeding may take place—

‘‘(i) in person,

‘‘(ii) where agreed to by the parties, in the absence

of the alien,

‘‘(iii) through video conference, or

‘‘(iv) subject to subparagraph (B), through telephone conference.

‘‘(B) CONSENT REQUIRED IN CERTAIN CASES.—An evidentiary hearing on the merits may only be conducted

8 USC 1229a.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–590

through a telephone conference with the consent of the

alien involved after the alien has been advised of the right

to proceed in person or through video conference.

‘‘(3) PRESENCE OF ALIEN.—If it is impracticable by reason

of an alien’s mental incompetency for the alien to be present

at the proceeding, the Attorney General shall prescribe safeguards to protect the rights and privileges of the alien.

‘‘(4) ALIENS RIGHTS IN PROCEEDING.—In proceedings under

this section, under regulations of the Attorney General—

‘‘(A) the alien shall have the privilege of being represented, at no expense to the Government, by counsel

of the alien’s choosing who is authorized to practice in

such proceedings,

‘‘(B) the alien shall have a reasonable opportunity to

examine the evidence against the alien, to present evidence

on the alien’s own behalf, and to cross-examine witnesses

presented by the Government but these rights shall not

entitle the alien to examine such national security information as the Government may proffer in opposition to the

alien’s admission to the United States or to an application

by the alien for discretionary relief under this Act, and

‘‘(C) a complete record shall be kept of all testimony

and evidence produced at the proceeding.

‘‘(5) CONSEQUENCES OF FAILURE TO APPEAR.—

‘‘(A) IN GENERAL.—Any alien who, after written notice

required under paragraph (1) or (2) of section 239(a) has

been provided to the alien or the alien’s counsel of record,

does not attend a proceeding under this section, shall be

ordered removed in absentia if the Service establishes by

clear, unequivocal, and convincing evidence that the written notice was so provided and that the alien is removable

(as defined in subsection (e)(2)). The written notice by

the Attorney General shall be considered sufficient for purposes of this subparagraph if provided at the most recent

address provided under section 239(a)(1)(F).

‘‘(B) NO NOTICE IF FAILURE TO PROVIDE ADDRESS

INFORMATION.—No written notice shall be required under

subparagraph (A) if the alien has failed to provide the

address required under section 239(a)(1)(F).

‘‘(C) RESCISSION OF ORDER.—Such an order may be

rescinded only—

‘‘(i) upon a motion to reopen filed within 180 days

after the date of the order of removal if the alien

demonstrates that the failure to appear was because

of exceptional circumstances (as defined in subsection

(e)(1)), or

‘‘(ii) upon a motion to reopen filed at any time

if the alien demonstrates that the alien did not receive

notice in accordance with paragraph (1) or (2) of section

239(a) or the alien demonstrates that the alien was

in Federal or State custody and the failure to appear

was through no fault of the alien.

The filing of the motion to reopen described in clause

(i) or (ii) shall stay the removal of the alien pending disposition of the motion by the immigration judge.

‘‘(D) EFFECT ON JUDICIAL REVIEW.—Any petition for

review under section 242 of an order entered in absentia
110 STAT. 3009–591 PUBLIC LAW 104–208—SEPT. 30, 1996

under this paragraph shall (except in cases described in

section 242(b)(5)) be confined to (i) the validity of the notice

provided to the alien, (ii) the reasons for the alien’s not

attending the proceeding, and (iii) whether or not the alien

is removable.

‘‘(E) ADDITIONAL APPLICATION TO CERTAIN ALIENS IN

CONTIGUOUS TERRITORY.—The preceding provisions of this

paragraph shall apply to all aliens placed in proceedings

under this section, including any alien who remains in

a contiguous foreign territory pursuant to section

235(b)(2)(C).

‘‘(6) TREATMENT OF FRIVOLOUS BEHAVIOR.—The Attorney

General shall, by regulation—

‘‘(A) define in a proceeding before an immigration judge

or before an appellate administrative body under this title,

frivolous behavior for which attorneys may be sanctioned,

‘‘(B) specify the circumstances under which an administrative appeal of a decision or ruling will be considered

frivolous and will be summarily dismissed, and

‘‘(C) impose appropriate sanctions (which may include

suspension and disbarment) in the case of frivolous behavior.

Nothing in this paragraph shall be construed as limiting the authority of the Attorney General to take actions with respect to inappropriate behavior.

‘‘(7) LIMITATION ON DISCRETIONARY RELIEF FOR FAILURE

TO APPEAR.—Any alien against whom a final order of removal

is entered in absentia under this subsection and who, at the

time of the notice described in paragraph (1) or (2) of section

239(a), was provided oral notice, either in the alien’s native

language or in another language the alien understands, of

the time and place of the proceedings and of the consequences

under this paragraph of failing, other than because of exceptional circumstances (as defined in subsection (e)(1)) to attend

a proceeding under this section, shall not be eligible for relief

under section 240A, 240B, 245, 248, or 249 for a period of

10 years after the date of the entry of the final order of

removal.

‘‘(c) DECISION AND BURDEN OF PROOF.—

‘‘(1) DECISION.—

‘‘(A) IN GENERAL.—At the conclusion of the proceeding

the immigration judge shall decide whether an alien is

removable from the United States. The determination of

the immigration judge shall be based only on the evidence

produced at the hearing.

‘‘(B) CERTAIN MEDICAL DECISIONS.—If a medical officer

or civil surgeon or board of medical officers has certified

under section 232(b) that an alien has a disease, illness,

or addiction which would make the alien inadmissible

under paragraph (1) of section 212(a), the decision of the

immigration judge shall be based solely upon such certification.

‘‘(2) BURDEN ON ALIEN.—In the proceeding the alien has

the burden of establishing—

‘‘(A) if the alien is an applicant for admission, that

the alien is clearly and beyond doubt entitled to be admitted

and is not inadmissible under section 212; or
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–592

‘‘(B) by clear and convincing evidence, that the alien

is lawfully present in the United States pursuant to a

prior admission.

In meeting the burden of proof under subparagraph (B), the

alien shall have access to the alien’s visa or other entry document, if any, and any other records and documents, not considered by the Attorney General to be confidential, pertaining

to the alien’s admission or presence in the United States.

‘‘(3) BURDEN ON SERVICE IN CASES OF DEPORTABLE ALIENS.—

‘‘(A) IN GENERAL.—In the proceeding the Service has

the burden of establishing by clear and convincing evidence

that, in the case of an alien who has been admitted to

the United States, the alien is deportable. No decision

on deportability shall be valid unless it is based upon

reasonable, substantial, and probative evidence.

‘‘(B) PROOF OF CONVICTIONS.—In any proceeding under

this Act, any of the following documents or records (or

a certified copy of such an official document or record)

shall constitute proof of a criminal conviction:

‘‘(i) An official record of judgment and conviction.

‘‘(ii) An official record of plea, verdict, and sentence.

‘‘(iii) A docket entry from court records that

indicates the existence of the conviction.

‘‘(iv) Official minutes of a court proceeding or a

transcript of a court hearing in which the court takes

notice of the existence of the conviction.

‘‘(v) An abstract of a record of conviction prepared

by the court in which the conviction was entered, or

by a State official associated with the State’s repository

of criminal justice records, that indicates the charge

or section of law violated, the disposition of the case,

the existence and date of conviction, and the sentence.

‘‘(vi) Any document or record prepared by, or under

the direction of, the court in which the conviction was

entered that indicates the existence of a conviction.

‘‘(vii) Any document or record attesting to the

conviction that is maintained by an official of a State

or Federal penal institution, which is the basis for

that institution’s authority to assume custody of the

individual named in the record.

‘‘(C) ELECTRONIC RECORDS.—In any proceeding under

this Act, any record of conviction or abstract that has

been submitted by electronic means to the Service from

a State or court shall be admissible as evidence to prove

a criminal conviction if it is—

‘‘(i) certified by a State official associated with

the State’s repository of criminal justice records as

an official record from its repository or by a court

official from the court in which the conviction was

entered as an official record from its repository, and

‘‘(ii) certified in writing by a Service official as

having been received electronically from the State’s

record repository or the court’s record repository.

A certification under clause (i) may be by means of a

computer-generated signature and statement of authenticity.
110 STAT. 3009–593 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(4) NOTICE.—If the immigration judge decides that the

alien is removable and orders the alien to be removed, the

judge shall inform the alien of the right to appeal that decision

and of the consequences for failure to depart under the order

of removal, including civil and criminal penalties.

‘‘(5) MOTIONS TO RECONSIDER.—

‘‘(A) IN GENERAL.—The alien may file one motion to

reconsider a decision that the alien is removable from

the United States.

‘‘(B) DEADLINE.—The motion must be filed within 30

days of the date of entry of a final administrative order

of removal.

‘‘(C) CONTENTS.—The motion shall specify the errors

of law or fact in the previous order and shall be supported

by pertinent authority.

‘‘(6) MOTIONS TO REOPEN.—

‘‘(A) IN GENERAL.—An alien may file one motion to

reopen proceedings under this section.

‘‘(B) CONTENTS.—The motion to reopen shall state the

new facts that will be proven at a hearing to be held

if the motion is granted, and shall be supported by affidavits or other evidentiary material.

‘‘(C) DEADLINE.—

‘‘(i) IN GENERAL.—Except as provided in this

subparagraph, the motion to reopen shall be filed

within 90 days of the date of entry of a final administrative order of removal.

‘‘(ii) ASYLUM.—There is no time limit on the filing

of a motion to reopen if the basis of the motion is

to apply for relief under sections 208 or 241(b)(3) and

is based on changed country conditions arising in the

country of nationality or the country to which removal

has been ordered, if such evidence is material and

was not available and would not have been discovered

or presented at the previous proceeding.

‘‘(iii) FAILURE TO APPEAR.—The filing of a motion

to reopen an order entered pursuant to subsection (b)(5)

is subject to the deadline specified in subparagraph

(C) of such subsection.

‘‘(d) STIPULATED REMOVAL.—The Attorney General shall provide

by regulation for the entry by an immigration judge of an order

of removal stipulated to by the alien (or the alien’s representative)

and the Service. A stipulated order shall constitute a conclusive

determination of the alien’s removability from the United States.

‘‘(e) DEFINITIONS.—In this section and section 240A:

‘‘(1) EXCEPTIONAL CIRCUMSTANCES.—The term ‘exceptional

circumstances’ refers to exceptional circumstances (such as serious illness of the alien or serious illness or death of the spouse,

child, or parent of the alien, but not including less compelling

circumstances) beyond the control of the alien.

‘‘(2) REMOVABLE.—The term ‘removable’ means—

‘‘(A) in the case of an alien not admitted to the United

States, that the alien is inadmissible under section 212,

or

‘‘(B) in the case of an alien admitted to the United

States, that the alien is deportable under section 237.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–594

‘‘CANCELLATION OF REMOVAL; ADJUSTMENT OF STATUS

‘‘SEC. 240A. (a) CANCELLATION OF REMOVAL FOR CERTAIN

PERMANENT RESIDENTS.—The Attorney General may cancel removal

in the case of an alien who is inadmissible or deportable from

the United States if the alien—

‘‘(1) has been an alien lawfully admitted for permanent

residence for not less than 5 years,

‘‘(2) has resided in the United States continuously for 7

years after having been admitted in any status, and

‘‘(3) has not been convicted of any aggravated felony.

‘‘(b) CANCELLATION OF REMOVAL AND ADJUSTMENT OF STATUS

FOR CERTAIN NONPERMANENT RESIDENTS.—

‘‘(1) IN GENERAL.—The Attorney General may cancel

removal in the case of an alien who is inadmissible or deportable from the United States if the alien—

‘‘(A) has been physically present in the United States

for a continuous period of not less than 10 years immediately preceding the date of such application;

‘‘(B) has been a person of good moral character during

such period;

‘‘(C) has not been convicted of an offense under section

212(a)(2), 237(a)(2), or 237(a)(3); and

‘‘(D) establishes that removal would result in exceptional and extremely unusual hardship to the alien’s

spouse, parent, or child, who is a citizen of the United

States or an alien lawfully admitted for permanent residence.

‘‘(2) SPECIAL RULE FOR BATTERED SPOUSE OR CHILD.—The

Attorney General may cancel removal in the case of an alien

who is inadmissible or deportable from the United States if

the alien demonstrates that—

‘‘(A) the alien has been battered or subjected to extreme

cruelty in the United States by a spouse or parent who

is a United States citizen or lawful permanent resident

(or is the parent of a child of a United States citizen

or lawful permanent resident and the child has been battered or subjected to extreme cruelty in the United States

by such citizen or permanent resident parent);

‘‘(B) the alien has been physically present in the United

States for a continuous period of not less than 3 years

immediately preceding the date of such application;

‘‘(C) the alien has been a person of good moral character during such period;

‘‘(D) the alien is not inadmissible under paragraph

(2) or (3) of section 212(a), is not deportable under paragraph (1)(G) or (2) through (4) of section 237(a), and has

not been convicted of an aggravated felony; and

‘‘(E) the removal would result in extreme hardship

to the alien, the alien’s child, or (in the case of an alien

who is a child) to the alien’s parent.

In acting on applications under this paragraph, the Attorney

General shall consider any credible evidence relevant to the

application. The determination of what evidence is credible

and the weight to be given that evidence shall be within the

sole discretion of the Attorney General.

8 USC 1229b.
110 STAT. 3009–595 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(3) ADJUSTMENT OF STATUS.—The Attorney General may

adjust to the status of an alien lawfully admitted for permanent

residence any alien who the Attorney General determines meets

the requirements of paragraph (1) or (2). The number of adjustments under this paragraph shall not exceed 4,000 for any

fiscal year. The Attorney General shall record the alien’s lawful

admission for permanent residence as of the date the Attorney

General’s cancellation of removal under paragraph (1) or (2)

or determination under this paragraph.

‘‘(c) ALIENS INELIGIBLE FOR RELIEF.—The provisions of subsections (a) and (b)(1) shall not apply to any of the following aliens:

‘‘(1) An alien who entered the United States as a crewman

subsequent to June 30, 1964.

‘‘(2) An alien who was admitted to the United States as

a nonimmigrant exchange alien as defined in section

101(a)(15)(J), or has acquired the status of such a nonimmigrant

exchange alien after admission, in order to receive graduate

medical education or training, regardless of whether or not

the alien is subject to or has fulfilled the two-year foreign

residence requirement of section 212(e).

‘‘(3) An alien who—

‘‘(A) was admitted to the United States as a nonimmigrant exchange alien as defined in section

101(a)(15)(J) or has acquired the status of such a nonimmigrant exchange alien after admission other than to

receive graduate medical education or training,

‘‘(B) is subject to the two-year foreign residence requirement of section 212(e), and

‘‘(C) has not fulfilled that requirement or received a

waiver thereof.

‘‘(4) An alien who is inadmissible under section 212(a)(3)

or deportable under section 237(a)(4).

‘‘(5) An alien who is described in section 241(b)(3)(B)(i).

‘‘(6) An alien whose removal has previously been cancelled

under this section or whose deportation was suspended under

section 244(a) or who has been granted relief under section

212(c), as such sections were in effect before the date of the

enactment of the Illegal Immigration Reform and Immigrant

Responsibility Act of 1996.

‘‘(d) SPECIAL RULES RELATING TO CONTINUOUS RESIDENCE OR

PHYSICAL PRESENCE.—

‘‘(1) TERMINATION OF CONTINUOUS PERIOD.—For purposes

of this section, any period of continuous residence or continuous

physical presence in the United States shall be deemed to

end when the alien is served a notice to appear under section

239(a) or when the alien has committed an offense referred

to in section 212(a)(2) that renders the alien inadmissible to

the United States under section 212(a)(2) or removable from

the United States under section 237(a)(2) or 237(a)(4), whichever is earliest.

‘‘(2) TREATMENT OF CERTAIN BREAKS IN PRESENCE.—An

alien shall be considered to have failed to maintain continuous

physical presence in the United States under subsections (b)(1)

and (b)(2) if the alien has departed from the United States

for any period in excess of 90 days or for any periods in

the aggregate exceeding 180 days.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–596

‘‘(3) CONTINUITY NOT REQUIRED BECAUSE OF HONORABLE

SERVICE IN ARMED FORCES AND PRESENCE UPON ENTRY INTO

SERVICE.—The requirements of continuous residence or continuous physical presence in the United States under subsections

(a) and (b) shall not apply to an alien who—

‘‘(A) has served for a minimum period of 24 months

in an active-duty status in the Armed Forces of the United

States and, if separated from such service, was separated

under honorable conditions, and

‘‘(B) at the time of the alien’s enlistment or induction

was in the United States.

‘‘(e) ANNUAL LIMITATION.—The Attorney General may not cancel the removal and adjust the status under this section, nor suspend the deportation and adjust the status under section 244(a)

(as in effect before the enactment of the Illegal Immigration Reform

and Immigrant Responsibility Act of 1996), of a total of more

than 4,000 aliens in any fiscal year. The previous sentence shall

apply regardless of when an alien applied for such cancellation

and adjustment and whether such an alien had previously applied

for suspension of deportation under such section 244(a).

‘‘VOLUNTARY DEPARTURE

‘‘SEC. 240B. (a) CERTAIN CONDITIONS.— ‘‘(1) IN GENERAL.—The Attorney General may permit an

alien voluntarily to depart the United States at the alien’s

own expense under this subsection, in lieu of being subject

to proceedings under section 240 or prior to the completion

of such proceedings, if the alien is not deportable under section

237(a)(2)(A)(iii) or section 237(a)(4)(B).

‘‘(2) PERIOD.—Permission to depart voluntarily under this

subsection shall not be valid for a period exceeding 120 days.

‘‘(3) BOND.—The Attorney General may require an alien

permitted to depart voluntarily under this subsection to post

a voluntary departure bond, to be surrendered upon proof that

the alien has departed the United States within the time specified.

‘‘(4) TREATMENT OF ALIENS ARRIVING IN THE UNITED

STATES.—In the case of an alien who is arriving in the United

States and with respect to whom proceedings under section

240 are (or would otherwise be) initiated at the time of such

alien’s arrival, paragraph (1) shall not apply. Nothing in this

paragraph shall be construed as preventing such an alien from

withdrawing the application for admission in accordance with

section 235(a)(4).

‘‘(b) AT CONCLUSION OF PROCEEDINGS.— ‘‘(1) IN GENERAL.—The Attorney General may permit an

alien voluntarily to depart the United States at the alien’s

own expense if, at the conclusion of a proceeding under section

240, the immigration judge enters an order granting voluntary

departure in lieu of removal and finds that—

‘‘(A) the alien has been physically present in the United

States for a period of at least one year immediately preceding the date the notice to appear was served under section

239(a);

‘‘(B) the alien is, and has been, a person of good moral

character for at least 5 years immediately preceding the

alien’s application for voluntary departure;

8 USC 1229c.
110 STAT. 3009–597 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(C) the alien is not deportable under section

237(a)(2)(A)(iii) or section 237(a)(4); and

‘‘(D) the alien has established by clear and convincing

evidence that the alien has the means to depart the United

States and intends to do so.

‘‘(2) PERIOD.—Permission to depart voluntarily under this

subsection shall not be valid for a period exceeding 60 days.

‘‘(3) BOND.—An alien permitted to depart voluntarily under

this subsection shall be required to post a voluntary departure

bond, in an amount necessary to ensure that the alien will

depart, to be surrendered upon proof that the alien has departed

the United States within the time specified.

‘‘(c) ALIENS NOT ELIGIBLE.—The Attorney General shall not

permit an alien to depart voluntarily under this section if the

alien was previously permitted to so depart after having been

found inadmissible under section 212(a)(6)(A).

‘‘(d) CIVIL PENALTY FOR FAILURE TO DEPART.—If an alien is

permitted to depart voluntarily under this section and fails voluntarily to depart the United States within the time period specified,

the alien shall be subject to a civil penalty of not less than $1,000

and not more than $5,000, and be ineligible for a period of 10

years for any further relief under this section and sections 240A,

245, 248, and 249. The order permitting the alien to depart voluntarily shall inform the alien of the penalties under this subsection.

‘‘(e) ADDITIONAL CONDITIONS.—The Attorney General may by

regulation limit eligibility for voluntary departure under this section

for any class or classes of aliens. No court may review any regulation

issued under this subsection.

‘‘(f) JUDICIAL REVIEW.—No court shall have jurisdiction over

an appeal from denial of a request for an order of voluntary departure under subsection (b), nor shall any court order a stay of

an alien’s removal pending consideration of any claim with respect

to voluntary departure.’’.

(b) REPEAL OF SECTION 212(c).—Section 212(c) (8 U.S.C. 1182(c))

is repealed.

(c) STREAMLINING REMOVAL OF CRIMINAL ALIENS.—

(1) IN GENERAL.—Section 242A(b)(4) (8 U.S.C. 1252a(b)(4)),

as amended by section 442(a) of Public Law 104–132 and before

redesignation by section 308(b)(5) of this division, is amended—

(A) by striking subparagraph (D);

(B) by amending subparagraph (E) to read as follows:

‘‘(D) a determination is made for the record that the

individual upon whom the notice for the proceeding under

this section is served (either in person or by mail) is,

in fact, the alien named in such notice;’’; and

(C) by redesignating subparagraphs (F) and (G) as

subparagraph (E) and (F), respectively.

(2) EFFECTIVE DATE.—The amendments made by paragraph

(1) shall be effective as if included in the enactment of section

442(a) of Public Law 104–132.

SEC. 305. DETENTION AND REMOVAL OF ALIENS ORDERED REMOVED

(NEW SECTION 241).

(a) IN GENERAL.—Title II is further amended—

(1) by striking section 237 (8 U.S.C. 1227),

8 USC 1252a

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–598

(2) by redesignating section 241 (8 U.S.C. 1251) as section

237 and by moving such section to immediately follow section

236, and

(3) by inserting after section 240C (as redesignated by

section 304(a)(2)) of this division the following new section:

‘‘DETENTION AND REMOVAL OF ALIENS ORDERED REMOVED

‘‘SEC. 241. (a) DETENTION, RELEASE, AND REMOVAL OF ALIENS

ORDERED REMOVED.— ‘‘(1) REMOVAL PERIOD.— ‘‘(A) IN GENERAL.—Except as otherwise provided in

this section, when an alien is ordered removed, the Attorney General shall remove the alien from the United States

within a period of 90 days (in this section referred to

as the ‘removal period’).

‘‘(B) BEGINNING OF PERIOD.—The removal period begins

on the latest of the following:

‘‘(i) The date the order of removal becomes

administratively final.

‘‘(ii) If the removal order is judicially reviewed

and if a court orders a stay of the removal of the

alien, the date of the court’s final order.

‘‘(iii) If the alien is detained or confined (except

under an immigration process), the date the alien is

released from detention or confinement.

‘‘(C) SUSPENSION OF PERIOD.—The removal period shall

be extended beyond a period of 90 days and the alien

may remain in detention during such extended period if

the alien fails or refuses to make timely application in

good faith for travel or other documents necessary to the

alien’s departure or conspires or acts to prevent the alien’s

removal subject to an order of removal.

‘‘(2) DETENTION.—During the removal period, the Attorney

General shall detain the alien. Under no circumstance during

the removal period shall the Attorney General release an alien

who has been found inadmissible under section 212(a)(2) or

212(a)(3)(B) or deportable under section 237(a)(2) or

237(a)(4)(B).

‘‘(3) SUPERVISION AFTER 90-DAY PERIOD.—If the alien does

not leave or is not removed within the removal period, the

alien, pending removal, shall be subject to supervision under

regulations prescribed by the Attorney General. The regulations

shall include provisions requiring the alien—

‘‘(A) to appear before an immigration officer periodically for identification;

‘‘(B) to submit, if necessary, to a medical and psychiatric examination at the expense of the United States

Government;

‘‘(C) to give information under oath about the alien’s

nationality, circumstances, habits, associations, and activities, and other information the Attorney General considers

appropriate; and

‘‘(D) to obey reasonable written restrictions on the

alien’s conduct or activities that the Attorney General prescribes for the alien.

‘‘(4) ALIENS IMPRISONED, ARRESTED, OR ON PAROLE, SUPERVISED RELEASE, OR PROBATION.—

8 USC 1231.

8 USC 1227.
110 STAT. 3009–599 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(A) IN GENERAL.—Except as provided in section 343(a)

of the Public Health Service Act (42 U.S.C. 259(a)) and

paragraph (2), the Attorney General may not remove an

alien who is sentenced to imprisonment until the alien

is released from imprisonment. Parole, supervised release,

probation, or possibility of arrest or further imprisonment

is not a reason to defer removal.

‘‘(B) EXCEPTION FOR REMOVAL OF NONVIOLENT OFFENDERS PRIOR TO COMPLETION OF SENTENCE OF IMPRISONMENT.—The Attorney General is authorized to remove an

alien in accordance with applicable procedures under this

Act before the alien has completed a sentence of imprisonment—

‘‘(i) in the case of an alien in the custody of the

Attorney General, if the Attorney General determines

that (I) the alien is confined pursuant to a final conviction for a nonviolent offense (other than an offense

related to smuggling or harboring of aliens or an

offense described in section 101(a)(43)(B), (C), (E), (I),

or (L) and (II) the removal of the alien is appropriate

and in the best interest of the United States; or

‘‘(ii) in the case of an alien in the custody of a

State (or a political subdivision of a State), if the

chief State official exercising authority with respect

to the incarceration of the alien determines that (I)

the alien is confined pursuant to a final conviction

for a nonviolent offense (other than an offense

described in section 101(a)(43)(C) or (E)), (II) the

removal is appropriate and in the best interest of the

State, and (III) submits a written request to the Attorney General that such alien be so removed.

‘‘(C) NOTICE.—Any alien removed pursuant to this

paragraph shall be notified of the penalties under the laws

of the United States relating to the reentry of deported

aliens, particularly the expanded penalties for aliens

removed under subparagraph (B).

‘‘(D) NO PRIVATE RIGHT.—No cause or claim may be

asserted under this paragraph against any official of the

United States or of any State to compel the release,

removal, or consideration for release or removal of any

alien.

‘‘(5) REINSTATEMENT OF REMOVAL ORDERS AGAINST ALIENS

ILLEGALLY REENTERING.—If the Attorney General finds that

an alien has reentered the United States illegally after having

been removed or having departed voluntarily, under an order

of removal, the prior order of removal is reinstated from its

original date and is not subject to being reopened or reviewed,

the alien is not eligible and may not apply for any relief

under this Act, and the alien shall be removed under the

prior order at any time after the reentry.

‘‘(6) INADMISSIBLE OR CRIMINAL ALIENS.—An alien ordered

removed who is inadmissible under section 212, removable

under section 237(a)(1)(C), 237(a)(2), or 237(a)(4) or who has

been determined by the Attorney General to be a risk to the

community or unlikely to comply with the order of removal,

may be detained beyond the removal period and, if released,

shall be subject to the terms of supervision in paragraph (3).
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–600

‘‘(7) EMPLOYMENT AUTHORIZATION.—No alien ordered

removed shall be eligible to receive authorization to be

employed in the United States unless the Attorney General

makes a specific finding that—

‘‘(A) the alien cannot be removed due to the refusal

of all countries designated by the alien or under this section

to receive the alien, or

‘‘(B) the removal of the alien is otherwise impracticable

or contrary to the public interest.

‘‘(b) COUNTRIES TO WHICH ALIENS MAY BE REMOVED.—

‘‘(1) ALIENS ARRIVING AT THE UNITED STATES.—Subject to

paragraph (3)—

‘‘(A) IN GENERAL.—Except as provided by subparagraphs (B) and (C), an alien who arrives at the United

States and with respect to whom proceedings under section

240 were initiated at the time of such alien’s arrival shall

be removed to the country in which the alien boarded

the vessel or aircraft on which the alien arrived in the

United States.

‘‘(B) TRAVEL FROM CONTIGUOUS TERRITORY.—If the

alien boarded the vessel or aircraft on which the alien

arrived in the United States in a foreign territory contiguous to the United States, an island adjacent to the United

States, or an island adjacent to a foreign territory contiguous to the United States, and the alien is not a native,

citizen, subject, or national of, or does not reside in, the

territory or island, removal shall be to the country in

which the alien boarded the vessel that transported the

alien to the territory or island.

‘‘(C) ALTERNATIVE COUNTRIES.—If the government of

the country designated in subparagraph (A) or (B) is unwilling to accept the alien into that country’s territory, removal

shall be to any of the following countries, as directed by

the Attorney General:

‘‘(i) The country of which the alien is a citizen,

subject, or national.

‘‘(ii) The country in which the alien was born.

‘‘(iii) The country in which the alien has a residence.

‘‘(iv) A country with a government that will accept

the alien into the country’s territory if removal to

each country described in a previous clause of this

subparagraph is impracticable, inadvisable, or impossible.

‘‘(2) OTHER ALIENS.—Subject to paragraph (3)—

‘‘(A) SELECTION OF COUNTRY BY ALIEN.—Except as

otherwise provided in this paragraph—

‘‘(i) any alien not described in paragraph (1) who

has been ordered removed may designate one country

to which the alien wants to be removed, and

‘‘(ii) the Attorney General shall remove the alien

to the country the alien so designates.

‘‘(B) LIMITATION ON DESIGNATION.—An alien may designate under subparagraph (A)(i) a foreign territory contiguous to the United States, an adjacent island, or an island

adjacent to a foreign territory contiguous to the United

States as the place to which the alien is to be removed
110 STAT. 3009–601 PUBLIC LAW 104–208—SEPT. 30, 1996

only if the alien is a native, citizen, subject, or national

of, or has resided in, that designated territory or island.

‘‘(C) DISREGARDING DESIGNATION.—The Attorney General may disregard a designation under subparagraph (A)(i)

if—

‘‘(i) the alien fails to designate a country promptly;

‘‘(ii) the government of the country does not inform

the Attorney General finally, within 30 days after the

date the Attorney General first inquires, whether the

government will accept the alien into the country;

‘‘(iii) the government of the country is not willing

to accept the alien into the country; or

‘‘(iv) the Attorney General decides that removing

the alien to the country is prejudicial to the United

States.

‘‘(D) ALTERNATIVE COUNTRY.—If an alien is not

removed to a country designated under subparagraph (A)(i),

the Attorney General shall remove the alien to a country

of which the alien is a subject, national, or citizen unless

the government of the country—

‘‘(i) does not inform the Attorney General or the

alien finally, within 30 days after the date the Attorney

General first inquires or within another period of time

the Attorney General decides is reasonable, whether

the government will accept the alien into the country;

or

‘‘(ii) is not willing to accept the alien into the

country.

‘‘(E) ADDITIONAL REMOVAL COUNTRIES.—If an alien is

not removed to a country under the previous subparagraphs

of this paragraph, the Attorney General shall remove the

alien to any of the following countries:

‘‘(i) The country from which the alien was admitted

to the United States.

‘‘(ii) The country in which is located the foreign

port from which the alien left for the United States

or for a foreign territory contiguous to the United

States.

‘‘(iii) A country in which the alien resided before

the alien entered the country from which the alien

entered the United States.

‘‘(iv) The country in which the alien was born.

‘‘(v) The country that had sovereignty over the

alien’s birthplace when the alien was born.

‘‘(vi) The country in which the alien’s birthplace

is located when the alien is ordered removed.

‘‘(vii) If impracticable, inadvisable, or impossible

to remove the alien to each country described in a

previous clause of this subparagraph, another country

whose government will accept the alien into that country.

‘‘(F) REMOVAL COUNTRY WHEN UNITED STATES IS AT

WAR.—When the United States is at war and the Attorney

General decides that it is impracticable, inadvisable,

inconvenient, or impossible to remove an alien under this

subsection because of the war, the Attorney General may

remove the alien—
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–602

‘‘(i) to the country that is host to a government

in exile of the country of which the alien is a citizen

or subject if the government of the host country will

permit the alien’s entry; or

‘‘(ii) if the recognized government of the country

of which the alien is a citizen or subject is not in

exile, to a country, or a political or territorial subdivision of a country, that is very near the country of

which the alien is a citizen or subject, or, with the

consent of the government of the country of which

the alien is a citizen or subject, to another country.

‘‘(3) RESTRICTION ON REMOVAL TO A COUNTRY WHERE ALIEN’S

LIFE OR FREEDOM WOULD BE THREATENED.—

‘‘(A) IN GENERAL.—Notwithstanding paragraphs (1) and

(2), the Attorney General may not remove an alien to

a country if the Attorney General decides that the alien’s

life or freedom would be threatened in that country because

of the alien’s race, religion, nationality, membership in

a particular social group, or political opinion.

‘‘(B) EXCEPTION.—Subparagraph (A) does not apply to

an alien deportable under section 237(a)(4)(D) or if the

Attorney General decides that—

‘‘(i) the alien ordered, incited, assisted, or otherwise

participated in the persecution of an individual because

of the individual’s race, religion, nationality, membership in a particular social group, or political opinion;

‘‘(ii) the alien, having been convicted by a final

judgment of a particularly serious crime is a danger

to the community of the United States;

‘‘(iii) there are serious reasons to believe that the

alien committed a serious nonpolitical crime outside

the United States before the alien arrived in the United

States; or

‘‘(iv) there are reasonable grounds to believe that

the alien is a danger to the security of the United

States.

For purposes of clause (ii), an alien who has been convicted

of an aggravated felony (or felonies) for which the alien

has been sentenced to an aggregate term of imprisonment

of at least 5 years shall be considered to have committed

a particularly serious crime. The previous sentence shall

not preclude the Attorney General from determining that,

notwithstanding the length of sentence imposed, an alien

has been convicted of a particularly serious crime. For

purposes of clause (iv), an alien who is described in section

237(a)(4)(B) shall be considered to be an alien with respect

to whom there are reasonable grounds for regarding as

a danger to the security of the United States.

‘‘(c) REMOVAL OF ALIENS ARRIVING AT PORT OF ENTRY.—

‘‘(1) VESSELS AND AIRCRAFT.—An alien arriving at a port

of entry of the United States who is ordered removed either

without a hearing under section 235(b)(1) or 235(c) or pursuant

to proceedings under section 240 initiated at the time of such

alien’s arrival shall be removed immediately on a vessel or

aircraft owned by the owner of the vessel or aircraft on which

the alien arrived in the United States, unless—
110 STAT. 3009–603 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(A) it is impracticable to remove the alien on one

of those vessels or aircraft within a reasonable time, or

‘‘(B) the alien is a stowaway—

‘‘(i) who has been ordered removed in accordance

with section 235(a)(1),

‘‘(ii) who has requested asylum, and

‘‘(iii) whose application has not been adjudicated

or whose asylum application has been denied but who

has not exhausted all appeal rights.

‘‘(2) STAY OF REMOVAL.—

‘‘(A) IN GENERAL.—The Attorney General may stay the

removal of an alien under this subsection if the Attorney

General decides that—

‘‘(i) immediate removal is not practicable or proper;

or

‘‘(ii) the alien is needed to testify in the prosecution

of a person for a violation of a law of the United

States or of any State.

‘‘(B) PAYMENT OF DETENTION COSTS.—During the period

an alien is detained because of a stay of removal under

subparagraph (A)(ii), the Attorney General may pay from

the appropriation ‘Immigration and Naturalization Service—Salaries and Expenses’—

‘‘(i) the cost of maintenance of the alien; and

‘‘(ii) a witness fee of $1 a day.

‘‘(C) RELEASE DURING STAY.—The Attorney General

may release an alien whose removal is stayed under

subparagraph (A)(ii) on—

‘‘(i) the alien’s filing a bond of at least $500 with

security approved by the Attorney General;

‘‘(ii) condition that the alien appear when required

as a witness and for removal; and

‘‘(iii) other conditions the Attorney General may

prescribe.

‘‘(3) COSTS OF DETENTION AND MAINTENANCE PENDING

REMOVAL.—

‘‘(A) IN GENERAL.—Except as provided in subparagraph

(B) and subsection (d), an owner of a vessel or aircraft

bringing an alien to the United States shall pay the costs

of detaining and maintaining the alien—

‘‘(i) while the alien is detained under subsection

(d)(1), and

‘‘(ii) in the case of an alien who is a stowaway,

while the alien is being detained pursuant to—

‘‘(I) subsection (d)(2)(A) or (d)(2)(B)(i),

‘‘(II) subsection (d)(2)(B)(ii) or (iii) for the

period of time reasonably necessary for the owner

to arrange for repatriation or removal of the stowaway, including obtaining necessary travel documents, but not to extend beyond the date on which

it is ascertained that such travel documents cannot

be obtained from the country to which the stowaway is to be returned, or

‘‘(III) section 235(b)(1)(B)(ii), for a period not

to exceed 15 days (excluding Saturdays, Sundays,

and holidays) commencing on the first such day

which begins on the earlier of 72 hours after the
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–604

time of the initial presentation of the stowaway

for inspection or at the time the stowaway is determined to have a credible fear of persecution.

‘‘(B) NONAPPLICATION.—Subparagraph (A) shall not

apply if—

‘‘(i) the alien is a crewmember;

‘‘(ii) the alien has an immigrant visa;

‘‘(iii) the alien has a nonimmigrant visa or other

documentation authorizing the alien to apply for temporary admission to the United States and applies

for admission not later than 120 days after the date

the visa or documentation was issued;

‘‘(iv) the alien has a reentry permit and applies

for admission not later than 120 days after the date

of the alien’s last inspection and admission;

‘‘(v)(I) the alien has a nonimmigrant visa or other

documentation authorizing the alien to apply for temporary admission to the United States or a reentry

permit;

‘‘(II) the alien applies for admission more than

120 days after the date the visa or documentation

was issued or after the date of the last inspection

and admission under the reentry permit; and

‘‘(III) the owner of the vessel or aircraft satisfies

the Attorney General that the existence of the condition

relating to inadmissibility could not have been discovered by exercising reasonable care before the alien

boarded the vessel or aircraft; or

‘‘(vi) the individual claims to be a national of the

United States and has a United States passport.

‘‘(d) REQUIREMENTS OF PERSONS PROVIDING TRANSPORTATION.—

‘‘(1) REMOVAL AT TIME OF ARRIVAL.—An owner, agent, master, commanding officer, person in charge, purser, or consignee

of a vessel or aircraft bringing an alien (except an alien crewmember) to the United States shall—

‘‘(A) receive an alien back on the vessel or aircraft

or another vessel or aircraft owned or operated by the

same interests if the alien is ordered removed under this

part; and

‘‘(B) take the alien to the foreign country to which

the alien is ordered removed.

‘‘(2) ALIEN STOWAWAYS.—An owner, agent, master,

commanding officer, charterer, or consignee of a vessel or aircraft arriving in the United States with an alien stowaway—

‘‘(A) shall detain the alien on board the vessel or aircraft, or at such place as the Attorney General shall designate, until completion of the inspection of the alien by

an immigration officer;

‘‘(B) may not permit the stowaway to land in the United

States, except pursuant to regulations of the Attorney General temporarily—

‘‘(i) for medical treatment,

‘‘(ii) for detention of the stowaway by the Attorney

General, or

‘‘(iii) for departure or removal of the stowaway;

and
110 STAT. 3009–605 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(C) if ordered by an immigration officer, shall remove

the stowaway on the vessel or aircraft or on another vessel

or aircraft.

The Attorney General shall grant a timely request to remove

the stowaway under subparagraph (C) on a vessel or aircraft

other than that on which the stowaway arrived if the requester

has obtained any travel documents necessary for departure

or repatriation of the stowaway and removal of the stowaway

will not be unreasonably delayed.

‘‘(3) REMOVAL UPON ORDER.—An owner, agent, master,

commanding officer, person in charge, purser, or consignee

of a vessel, aircraft, or other transportation line shall comply

with an order of the Attorney General to take on board, guard

safely, and transport to the destination specified any alien

ordered to be removed under this Act.

‘‘(e) PAYMENT OF EXPENSES OF REMOVAL.—

‘‘(1) COSTS OF REMOVAL AT TIME OF ARRIVAL.—In the case

of an alien who is a stowaway or who is ordered removed

either without a hearing under section 235(a)(1) or 235(c) or

pursuant to proceedings under section 240 initiated at the

time of such alien’s arrival, the owner of the vessel or aircraft

(if any) on which the alien arrived in the United States shall

pay the transportation cost of removing the alien. If removal

is on a vessel or aircraft not owned by the owner of the vessel

or aircraft on which the alien arrived in the United States,

the Attorney General may—

‘‘(A) pay the cost from the appropriation ‘Immigration

and Naturalization Service—Salaries and Expenses’; and

‘‘(B) recover the amount of the cost in a civil action

from the owner, agent, or consignee of the vessel or aircraft

(if any) on which the alien arrived in the United States.

‘‘(2) COSTS OF REMOVAL TO PORT OF REMOVAL FOR ALIENS

ADMITTED OR PERMITTED TO LAND.— In the case of an alien

who has been admitted or permitted to land and is ordered

removed, the cost (if any) of removal of the alien to the port

of removal shall be at the expense of the appropriation for

the enforcement of this Act.

‘‘(3) COSTS OF REMOVAL FROM PORT OF REMOVAL FOR ALIENS

ADMITTED OR PERMITTED TO LAND.—

‘‘(A) THROUGH APPROPRIATION.—Except as provided in

subparagraph (B), in the case of an alien who has been

admitted or permitted to land and is ordered removed,

the cost (if any) of removal of the alien from the port

of removal shall be at the expense of the appropriation

for the enforcement of this Act.

‘‘(B) THROUGH OWNER.—

‘‘(i) IN GENERAL.—In the case of an alien described

in clause (ii), the cost of removal of the alien from

the port of removal may be charged to any owner

of the vessel, aircraft, or other transportation line by

which the alien came to the United States.

‘‘(ii) ALIENS DESCRIBED.—An alien described in this

clause is an alien who—

‘‘(I) is admitted to the United States (other

than lawfully admitted for permanent residence)

and is ordered removed within 5 years of the date
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–606

of admission based on a ground that existed before

or at the time of admission, or

‘‘(II) is an alien crewman permitted to land

temporarily under section 252 and is ordered

removed within 5 years of the date of landing.

‘‘(C) COSTS OF REMOVAL OF CERTAIN ALIENS GRANTED

VOLUNTARY DEPARTURE.—In the case of an alien who has

been granted voluntary departure under section 240B and

who is financially unable to depart at the alien’s own

expense and whose removal the Attorney General deems

to be in the best interest of the United States, the expense

of such removal may be paid from the appropriation for

the enforcement of this Act.

‘‘(f) ALIENS REQUIRING PERSONAL CARE DURING REMOVAL.—

‘‘(1) IN GENERAL.—If the Attorney General believes that

an alien being removed requires personal care because of the

alien’s mental or physical condition, the Attorney General may

employ a suitable person for that purpose who shall accompany

and care for the alien until the alien arrives at the final

destination.

‘‘(2) COSTS.—The costs of providing the service described

in paragraph (1) shall be defrayed in the same manner as

the expense of removing the accompanied alien is defrayed

under this section.

‘‘(g) PLACES OF DETENTION.—

‘‘(1) IN GENERAL.—The Attorney General shall arrange for

appropriate places of detention for aliens detained pending

removal or a decision on removal. When United States Government facilities are unavailable or facilities adapted or suitably

located for detention are unavailable for rental, the Attorney

General may expend from the appropriation ‘Immigration and

Naturalization Service—Salaries and Expenses’, without regard

to section 3709 of the Revised Statutes (41 U.S.C. 5), amounts

necessary to acquire land and to acquire, build, remodel, repair,

and operate facilities (including living quarters for immigration

officers if not otherwise available) necessary for detention.

‘‘(2) DETENTION FACILITIES OF THE IMMIGRATION AND NATURALIZATION SERVICE.—Prior to initiating any project for the

construction of any new detention facility for the Service, the

Commissioner shall consider the availability for purchase or

lease of any existing prison, jail, detention center, or other

comparable facility suitable for such use.

‘‘(h) STATUTORY CONSTRUCTION.—Nothing in this section shall

be construed to create any substantive or procedural right or benefit

that is legally enforceable by any party against the United States

or its agencies or officers or any other person.’’.

(b) REENTRY OF ALIEN REMOVED PRIOR TO COMPLETION OF

TERM OF IMPRISONMENT.—Section 276(b) (8 U.S.C. 1326(b)), as

amended by section 321(b) of this division, is amended—

(1) by striking ‘‘or’’ at the end of paragraph (2),

(2) by adding ‘‘or’’ at the end of paragraph (3), and

(3) by inserting after paragraph (3) the following new paragraph:

‘‘(4) who was removed from the United States pursuant

to section 241(a)(4)(B) who thereafter, without the permission

of the Attorney General, enters, attempts to enter, or is at

any time found in, the United States (unless the Attorney
110 STAT. 3009–607 PUBLIC LAW 104–208—SEPT. 30, 1996

General has expressly consented to such alien’s reentry) shall

be fined under title 18, United States Code, imprisoned for

not more than 10 years, or both.

(c) MISCELLANEOUS CONFORMING AMENDMENT.—Section

212(a)(4) (8 U.S.C. 1182(a)(4)), as amended by section 621(a) of

this division, is amended by striking ‘‘241(a)(5)(B)’’ each place it

appears and inserting ‘‘237(a)(5)(B)’’.

SEC. 306. APPEALS FROM ORDERS OF REMOVAL (NEW SECTION 242).

(a) IN GENERAL.—Section 242 (8 U.S.C. 1252) is amended—

(1) by redesignating subsection (j) as subsection (i) and

by moving such subsection and adding it at the end of section

241, as inserted by section 305(a)(3) of this division; and

(2) by amending the remainder of section 242 to read

as follows:

‘‘JUDICIAL REVIEW OF ORDERS OF REMOVAL

‘‘SEC. 242. (a) APPLICABLE PROVISIONS.— ‘‘(1) GENERAL ORDERS OF REMOVAL.—Judicial review of a

final order of removal (other than an order of removal without

a hearing pursuant to section 235(b)(1)) is governed only by

chapter 158 of title 28 of the United States Code, except as

provided in subsection (b) and except that the court may not

order the taking of additional evidence under section 2347(c)

of such title.

‘‘(2) MATTERS NOT SUBJECT TO JUDICIAL REVIEW.— ‘‘(A) REVIEW RELATING TO SECTION 235(b)(1).—Notwithstanding any other provision of law, no court shall have

jurisdiction to review—

‘‘(i) except as provided in subsection (e), any

individual determination or to entertain any other

cause or claim arising from or relating to the

implementation or operation of an order of removal

pursuant to section 235(b)(1),

‘‘(ii) except as provided in subsection (e), a decision

by the Attorney General to invoke the provisions of

such section,

‘‘(iii) the application of such section to individual

aliens, including the determination made under section

235(b)(1)(B), or

‘‘(iv) except as provided in subsection (e), procedures and policies adopted by the Attorney General

to implement the provisions of section 235(b)(1).

‘‘(B) DENIALS OF DISCRETIONARY RELIEF.—Notwithstanding any other provision of law, no court shall have

jurisdiction to review—

‘‘(i) any judgment regarding the granting of relief

under section 212(h), 212(i), 240A, 240B, or 245, or

‘‘(ii) any other decision or action of the Attorney

General the authority for which is specified under this

title to be in the discretion of the Attorney General,

other than the granting of relief under section 208(a).

‘‘(C) ORDERS AGAINST CRIMINAL ALIENS.—Notwithstanding any other provision of law, no court shall have

jurisdiction to review any final order of removal against

an alien who is removable by reason of having committed

a criminal offense covered in section 212(a)(2) or

8 USC 1231.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–608

237(a)(2)(A)(iii), (B), (C), or (D), or any offense covered

by section 237(a)(2)(A)(ii) for which both predicate offenses

are, without regard to their date of commission, otherwise

covered by section 237(a)(2)(A)(i).

‘‘(3) TREATMENT OF CERTAIN DECISIONS.—No alien shall

have a right to appeal from a decision of an immigration

judge which is based solely on a certification described in section 240(c)(1)(B).

‘‘(b) REQUIREMENTS FOR REVIEW OF ORDERS OF REMOVAL.—

With respect to review of an order of removal under subsection

(a)(1), the following requirements apply:

‘‘(1) DEADLINE.—The petition for review must be filed not

later than 30 days after the date of the final order of removal.

‘‘(2) VENUE AND FORMS.—The petition for review shall be

filed with the court of appeals for the judicial circuit in which

the immigration judge completed the proceedings. The record

and briefs do not have to be printed. The court of appeals

shall review the proceeding on a typewritten record and on

typewritten briefs.

‘‘(3) SERVICE.—

‘‘(A) IN GENERAL.—The respondent is the Attorney General. The petition shall be served on the Attorney General

and on the officer or employee of the Service in charge

of the Service district in which the final order of removal

under section 240 was entered.

‘‘(B) STAY OF ORDER.—Service of the petition on the

officer or employee does not stay the removal of an alien

pending the court’s decision on the petition, unless the

court orders otherwise.

‘‘(C) ALIEN’S BRIEF.—The alien shall serve and file a

brief in connection with a petition for judicial review not

later than 40 days after the date on which the administrative record is available, and may serve and file a reply

brief not later than 14 days after service of the brief of

the Attorney General, and the court may not extend these

deadlines except upon motion for good cause shown. If

an alien fails to file a brief within the time provided in

this paragraph, the court shall dismiss the appeal unless

a manifest injustice would result.

‘‘(4) SCOPE AND STANDARD FOR REVIEW.—Except as provided

in paragraph (5)(B)—

‘‘(A) the court of appeals shall decide the petition only

on the administrative record on which the order of removal

is based,

‘‘(B) the administrative findings of fact are conclusive

unless any reasonable adjudicator would be compelled to

conclude to the contrary,

‘‘(C) a decision that an alien is not eligible for admission to the United States is conclusive unless manifestly

contrary to law, and

‘‘(D) the Attorney General’s discretionary judgment

whether to grant relief under section 208(a) shall be conclusive unless manifestly contrary to the law and an abuse

of discretion.

‘‘(5) TREATMENT OF NATIONALITY CLAIMS.—

‘‘(A) COURT DETERMINATION IF NO ISSUE OF FACT.—

If the petitioner claims to be a national of the United
110 STAT. 3009–609 PUBLIC LAW 104–208—SEPT. 30, 1996

States and the court of appeals finds from the pleadings

and affidavits that no genuine issue of material fact about

the petitioner’s nationality is presented, the court shall

decide the nationality claim.

‘‘(B) TRANSFER IF ISSUE OF FACT.—If the petitioner

claims to be a national of the United States and the court

of appeals finds that a genuine issue of material fact about

the petitioner’s nationality is presented, the court shall

transfer the proceeding to the district court of the United

States for the judicial district in which the petitioner

resides for a new hearing on the nationality claim and

a decision on that claim as if an action had been brought

in the district court under section 2201 of title 28, United

States Code.

‘‘(C) LIMITATION ON DETERMINATION.—The petitioner

may have such nationality claim decided only as provided

in this paragraph.

‘‘(6) CONSOLIDATION WITH REVIEW OF MOTIONS TO REOPEN

OR RECONSIDER.—When a petitioner seeks review of an order

under this section, any review sought of a motion to reopen

or reconsider the order shall be consolidated with the review

of the order.

‘‘(7) CHALLENGE TO VALIDITY OF ORDERS IN CERTAIN CRIMINAL PROCEEDINGS.—

‘‘(A) IN GENERAL.—If the validity of an order of removal

has not been judicially decided, a defendant in a criminal

proceeding charged with violating section 243(a) may challenge the validity of the order in the criminal proceeding

only by filing a separate motion before trial. The district

court, without a jury, shall decide the motion before trial.

‘‘(B) CLAIMS OF UNITED STATES NATIONALITY.—If the

defendant claims in the motion to be a national of the

United States and the district court finds that—

‘‘(i) no genuine issue of material fact about the

defendant’s nationality is presented, the court shall

decide the motion only on the administrative record

on which the removal order is based and the administrative findings of fact are conclusive if supported by

reasonable, substantial, and probative evidence on the

record considered as a whole; or

‘‘(ii) a genuine issue of material fact about the

defendant’s nationality is presented, the court shall

hold a new hearing on the nationality claim and decide

that claim as if an action had been brought under

section 2201 of title 28, United States Code.

The defendant may have such nationality claim decided

only as provided in this subparagraph.

‘‘(C) CONSEQUENCE OF INVALIDATION.—If the district

court rules that the removal order is invalid, the court

shall dismiss the indictment for violation of section 243(a).

The United States Government may appeal the dismissal

to the court of appeals for the appropriate circuit within

30 days after the date of the dismissal.

‘‘(D) LIMITATION ON FILING PETITIONS FOR REVIEW.—

The defendant in a criminal proceeding under section

243(a) may not file a petition for review under subsection

(a) during the criminal proceeding.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–610

‘‘(8) CONSTRUCTION.—This subsection—

‘‘(A) does not prevent the Attorney General, after a

final order of removal has been issued, from detaining

the alien under section 241(a);

‘‘(B) does not relieve the alien from complying with

section 241(a)(4) and section 243(g); and

‘‘(C) does not require the Attorney General to defer

removal of the alien.

‘‘(9) CONSOLIDATION OF QUESTIONS FOR JUDICIAL REVIEW.—

Judicial review of all questions of law and fact, including

interpretation and application of constitutional and statutory

provisions, arising from any action taken or proceeding brought

to remove an alien from the United States under this title

shall be available only in judicial review of a final order under

this section.

‘‘(c) REQUIREMENTS FOR PETITION.—A petition for review or

for habeas corpus of an order of removal—

‘‘(1) shall attach a copy of such order, and

‘‘(2) shall state whether a court has upheld the validity

of the order, and, if so, shall state the name of the court,

the date of the court’s ruling, and the kind of proceeding.

‘‘(d) REVIEW OF FINAL ORDERS.—A court may review a final

order of removal only if—

‘‘(1) the alien has exhausted all administrative remedies

available to the alien as of right, and

‘‘(2) another court has not decided the validity of the order,

unless the reviewing court finds that the petition presents

grounds that could not have been presented in the prior judicial

proceeding or that the remedy provided by the prior proceeding

was inadequate or ineffective to test the validity of the order.

‘‘(e) JUDICIAL REVIEW OF ORDERS UNDER SECTION 235(b)(1).—

‘‘(1) LIMITATIONS ON RELIEF.—Without regard to the nature

of the action or claim and without regard to the identity of

the party or parties bringing the action, no court may—

‘‘(A) enter declaratory, injunctive, or other equitable

relief in any action pertaining to an order to exclude an

alien in accordance with section 235(b)(1) except as specifically authorized in a subsequent paragraph of this subsection, or

‘‘(B) certify a class under Rule 23 of the Federal Rules

of Civil Procedure in any action for which judicial review

is authorized under a subsequent paragraph of this subsection.

‘‘(2) HABEAS CORPUS PROCEEDINGS.—Judicial review of any

determination made under section 235(b)(1) is available in

habeas corpus proceedings, but shall be limited to determinations of—

‘‘(A) whether the petitioner is an alien,

‘‘(B) whether the petitioner was ordered removed under

such section, and

‘‘(C) whether the petitioner can prove by a preponderance of the evidence that the petitioner is an alien lawfully

admitted for permanent residence, has been admitted as

a refugee under section 207, or has been granted asylum

under section 208, such status not having been terminated,

and is entitled to such further inquiry as prescribed by

the Attorney General pursuant to section 235(b)(1)(C).
110 STAT. 3009–611 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(3) CHALLENGES ON VALIDITY OF THE SYSTEM.— ‘‘(A) IN GENERAL.—Judicial review of determinations

under section 235(b) and its implementation is available

in an action instituted in the United States District Court

for the District of Columbia, but shall be limited to determinations of—

‘‘(i) whether such section, or any regulation issued

to implement such section, is constitutional; or

‘‘(ii) whether such a regulation, or a written policy

directive, written policy guideline, or written procedure

issued by or under the authority of the Attorney General to implement such section, is not consistent with

applicable provisions of this title or is otherwise in

violation of law.

‘‘(B) DEADLINES FOR BRINGING ACTIONS.—Any action

instituted under this paragraph must be filed no later

than 60 days after the date the challenged section, regulation, directive, guideline, or procedure described in clause

(i) or (ii) of subparagraph (A) is first implemented.

‘‘(C) NOTICE OF APPEAL.—A notice of appeal of an order

issued by the District Court under this paragraph may

be filed not later than 30 days after the date of issuance

of such order.

‘‘(D) EXPEDITIOUS CONSIDERATION OF CASES.—It shall

be the duty of the District Court, the Court of Appeals,

and the Supreme Court of the United States to advance

on the docket and to expedite to the greatest possible

extent the disposition of any case considered under this

paragraph.

‘‘(4) DECISION.—In any case where the court determines

that the petitioner—

‘‘(A) is an alien who was not ordered removed under

section 235(b)(1), or

‘‘(B) has demonstrated by a preponderance of the evidence that the alien is an alien lawfully admitted for

permanent residence, has been admitted as a refugee under

section 207, or has been granted asylum under section

208, the court may order no remedy or relief other than

to require that the petitioner be provided a hearing in

accordance with section 240. Any alien who is provided

a hearing under section 240 pursuant to this paragraph

may thereafter obtain judicial review of any resulting final

order of removal pursuant to subsection (a)(1).

‘‘(5) SCOPE OF INQUIRY.—In determining whether an alien

has been ordered removed under section 235(b)(1), the court’s

inquiry shall be limited to whether such an order in fact was

issued and whether it relates to the petitioner. There shall

be no review of whether the alien is actually inadmissible

or entitled to any relief from removal.

‘‘(f) LIMIT ON INJUNCTIVE RELIEF.—

‘‘(1) IN GENERAL.—Regardless of the nature of the action

or claim or of the identity of the party or parties bringing

the action, no court (other than the Supreme Court) shall

have jurisdiction or authority to enjoin or restrain the operation

of the provisions of chapter 4 of title II, as amended by the

Illegal Immigration Reform and Immigrant Responsibility Act

of 1996, other than with respect to the application of such
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–612

provisions to an individual alien against whom proceedings

under such chapter have been initiated.

‘‘(2) PARTICULAR CASES.—Notwithstanding any other provision of law, no court shall enjoin the removal of any alien

pursuant to a final order under this section unless the alien

shows by clear and convincing evidence that the entry or execution of such order is prohibited as a matter of law.

‘‘(g) EXCLUSIVE JURISDICTION.—Except as provided in this section and notwithstanding any other provision of law, no court

shall have jurisdiction to hear any cause or claim by or on behalf

of any alien arising from the decision or action by the Attorney

General to commence proceedings, adjudicate cases, or execute

removal orders against any alien under this Act.’’.

(b) REPEAL OF SECTION 106.—Section 106 (8 U.S.C. 1105a)

is repealed.

(c) EFFECTIVE DATE.—

(1) IN GENERAL.—Subject to paragraph (2), the amendments

made by subsections (a) and (b) shall apply to all final orders

of deportation or removal and motions to reopen filed on or

after the date of the enactment of this Act and subsection

(g) of section 242 of the Immigration and Nationality Act (as

added by subsection (a)), shall apply without limitation to

claims arising from all past, pending, or future exclusion, deportation, or removal proceedings under such Act.

(2) LIMITATION.—Paragraph (1) shall not be considered to

invalidate or to require the reconsideration of any judgment

or order entered under section 106 of the Immigration and

Nationality Act, as amended by section 440 of Public Law

104–132.

(d) TECHNICAL AMENDMENT.—Effective as if included in the

enactment of the Antiterrorism and Effective Death Penalty Act

of 1996 (Public Law 104–132), subsections (a), (c), (d), (g), and

(h) of section 440 of such Act are amended by striking ‘‘any offense

covered by section 241(a)(2)(A)(ii) for which both predicate offenses

are covered by section 241(a)(2)(A)(i)’’ and inserting ‘‘any offense

covered by section 241(a)(2)(A)(ii) for which both predicate offenses

are, without regard to the date of their commission, otherwise

covered by section 241(a)(2)(A)(i)’’.

SEC. 307. PENALTIES RELATING TO REMOVAL (REVISED SECTION 243).

(a) IN GENERAL.—Section 243 (8 U.S.C. 1253) is amended to

read as follows:

‘‘PENALTIES RELATED TO REMOVAL

‘‘SEC. 243. (a) PENALTY FOR FAILURE TO DEPART.—

‘‘(1) IN GENERAL.—Any alien against whom a final order

of removal is outstanding by reason of being a member of

any of the classes described in section 237(a), who—

‘‘(A) willfully fails or refuses to depart from the United

States within a period of 90 days from the date of the

final order of removal under administrative processes, or

if judicial review is had, then from the date of the final

order of the court,

‘‘(B) willfully fails or refuses to make timely application

in good faith for travel or other documents necessary to

the alien’s departure,

8 USC 1105a,

1182, 1252,

1252a.

8 USC 1252 note.
110 STAT. 3009–613 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(C) connives or conspires, or takes any other action,

designed to prevent or hamper or with the purpose of

preventing or hampering the alien’s departure pursuant

to such, or

‘‘(D) willfully fails or refuses to present himself or

herself for removal at the time and place required by

the Attorney General pursuant to such order,

shall be fined under title 18, United States Code, or imprisoned

not more than four years (or 10 years if the alien is a member

of any of the classes described in paragraph (1)(E), (2), (3),

or (4) of section 237(a)), or both.

‘‘(2) EXCEPTION.—It is not a violation of paragraph (1)

to take any proper steps for the purpose of securing cancellation

of or exemption from such order of removal or for the purpose

of securing the alien’s release from incarceration or custody.

‘‘(3) SUSPENSION.—The court may for good cause suspend

the sentence of an alien under this subsection and order the

alien’s release under such conditions as the court may prescribe.

In determining whether good cause has been shown to justify

releasing the alien, the court shall take into account such

factors as—

‘‘(A) the age, health, and period of detention of the

alien;

‘‘(B) the effect of the alien’s release upon the national

security and public peace or safety;

‘‘(C) the likelihood of the alien’s resuming or following

a course of conduct which made or would make the alien

deportable;

‘‘(D) the character of the efforts made by such alien

himself and by representatives of the country or countries

to which the alien’s removal is directed to expedite the

alien’s departure from the United States;

‘‘(E) the reason for the inability of the Government

of the United States to secure passports, other travel documents, or removal facilities from the country or countries

to which the alien has been ordered removed; and

‘‘(F) the eligibility of the alien for discretionary relief

under the immigration laws.

‘‘(b) WILLFUL FAILURE TO COMPLY WITH TERMS OF RELEASE

UNDER SUPERVISION.—An alien who shall willfully fail to comply

with regulations or requirements issued pursuant to section

241(a)(3) or knowingly give false information in response to an

inquiry under such section shall be fined not more than $1,000

or imprisoned for not more than one year, or both.

‘‘(c) PENALTIES RELATING TO VESSELS AND AIRCRAFT.—

‘‘(1) CIVIL PENALTIES.—

‘‘(A) FAILURE TO CARRY OUT CERTAIN ORDERS.—If the

Attorney General is satisfied that a person has violated

subsection (d) or (e) of section 241, the person shall pay

to the Commissioner the sum of $2,000 for each violation.

‘‘(B) FAILURE TO REMOVE ALIEN STOWAWAYS.—If the

Attorney General is satisfied that a person has failed to

remove an alien stowaway as required under section

241(d)(2), the person shall pay to the Commissioner the

sum of $5,000 for each alien stowaway not removed.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–614

‘‘(C) NO COMPROMISE.—The Attorney General may not

compromise the amount of such penalty under this paragraph.

‘‘(2) CLEARING VESSELS AND AIRCRAFT.—

‘‘(A) CLEARANCE BEFORE DECISION ON LIABILITY.—A

vessel or aircraft may be granted clearance before a decision

on liability is made under paragraph (1) only if a bond

approved by the Attorney General or an amount sufficient

to pay the civil penalty is deposited with the Commissioner.

‘‘(B) PROHIBITION ON CLEARANCE WHILE PENALTY

UNPAID.—A vessel or aircraft may not be granted clearance

if a civil penalty imposed under paragraph (1) is not paid.

‘‘(d) DISCONTINUING GRANTING VISAS TO NATIONALS OF COUNTRY DENYING OR DELAYING ACCEPTING ALIEN.—On being notified

by the Attorney General that the government of a foreign country

denies or unreasonably delays accepting an alien who is a citizen,

subject, national, or resident of that country after the Attorney

General asks whether the government will accept the alien under

this section, the Secretary of State shall order consular officers

in that foreign country to discontinue granting immigrant visas

or nonimmigrant visas, or both, to citizens, subjects, nationals,

and residents of that country until the Attorney General notifies

the Secretary that the country has accepted the alien.’’.

SEC. 308. REDESIGNATION AND REORGANIZATION OF OTHER PROVISIONS; ADDITIONAL CONFORMING AMENDMENTS.

(a) CONFORMING AMENDMENT TO TABLE OF CONTENTS; OVERVIEW OF REORGANIZED CHAPTERS.—The table of contents, as amended by sections 123(b) and 671(e)(1) of this division, is amended—

(1) by striking the item relating to section 106, and

(2) by striking the item relating to chapter 4 of title II

and all that follows through the item relating to section 244A

and inserting the following:

‘‘CHAPTER 4—INSPECTION, APPREHENSION, EXAMINATION, EXCLUSION, AND REMOVAL

‘‘Sec. 231. Lists of alien and citizen passengers arriving or departing;

record of resident aliens and citizens leaving permanently for

foreign country.

‘‘Sec. 232. Detention of aliens for physical and mental examination.

‘‘Sec. 233. Entry through or from foreign territory and adjacent islands;

landing stations.

‘‘Sec. 234. Designation of ports of entry for aliens arriving by civil aircraft.

‘‘Sec. 235. Inspection by immigration officers; expedited removal of

inadmissible arriving aliens; referral for hearing.

‘‘Sec. 235A. Preinspection at foreign airports.

‘‘Sec. 236. Apprehension and detention of aliens not lawfully in the United

States.

‘‘Sec. 237. General classes of deportable aliens.

‘‘Sec. 238. Expedited removal of aliens convicted of committing aggravated

felonies.

‘‘Sec. 239. Initiation of removal proceedings.

‘‘Sec. 240. Removal proceedings.
110 STAT. 3009–615 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘Sec. 240A. Cancellation of removal; adjustment of status.

‘‘Sec. 240B. Voluntary departure.

‘‘Sec. 240C. Records of admission.

‘‘Sec. 241. Detention and removal of aliens ordered removed.

‘‘Sec. 242. Judicial review of orders of removal.

‘‘Sec. 243. Penalties relating to removal.

‘‘Sec. 244. Temporary protected status.

‘‘CHAPTER 5—ADJUSTMENT AND CHANGE OF STATUS’’.

(b) REORGANIZATION OF OTHER PROVISIONS.—Chapters 4 and

5 of title II are amended as follows:

(1) AMENDING CHAPTER HEADING.—Amend the heading for

chapter 4 of title II to read as follows:

‘‘CHAPTER 4—INSPECTION, APPREHENSION, EXAMINATION, EXCLUSION, AND REMOVAL’’.

(2) REDESIGNATING SECTION 232 AS SECTION 232(a).—Amend

section 232 (8 U.S.C. 1222)—

(A) by inserting ‘‘(a) DETENTION OF ALIENS.—’’ after

‘‘SEC. 232.’’, and

(B) by amending the section heading to read as follows:

‘‘DETENTION OF ALIENS FOR PHYSICAL AND MENTAL EXAMINATION’’.

(3) REDESIGNATING SECTION 234 AS SECTION 232(b).—Amend

section 234 (8 U.S.C. 1224)—

(A) by striking the heading,

(B) by striking ‘‘SEC. 234.’’ and inserting the following:

‘‘(b) PHYSICAL AND MENTAL EXAMINATION.—’’, and

(C) by moving such provision to the end of section

232.

(4) REDESIGNATING SECTION 238 AS SECTION 233.—Redesignate section 238 (8 U.S.C. 1228) as section 233 and move

the section to immediately follow section 232.

(5) REDESIGNATING SECTION 242A AS SECTION 238.—Redesignate section 242A as section 238, strike ‘‘DEPORTATION’’ in its

heading and insert ‘‘REMOVAL’’, and move the section to immediately follow section 237 (as redesignated by section 305(a)(2)).

(6) STRIKING SECTION 242B.—Strike section 242B (8 U.S.C.

1252b).

(7) STRIKING SECTION 244 AND REDESIGNATING SECTION 244A

AS SECTION 244.—Strike section 244 (8 U.S.C. 1254) and redesignate section 244A as section 244.

(8) AMENDING CHAPTER HEADING.—Amend the heading for

chapter 5 of title II to read as follows:

‘‘CHAPTER 5—ADJUSTMENT AND CHANGE OF STATUS’’.

(c) ADDITIONAL CONFORMING AMENDMENTS.— (1) EXPEDITED PROCEDURES FOR AGGRAVATED FELONS

(FORMER SECTION 242A).—Section 238 (which, previous to

redesignation under section 308(b)(5) of this division, was section 242A) is amended—

(A) in subsection (a)(1), by striking ‘‘section 242’’ and

inserting ‘‘section 240’’;

8 USC 1254a.

8 USC 1228.

8 USC 1223.

8 USC 1222.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–616

(B) in subsection (a)(2), by striking ‘‘section 242(a)(2)’’

and inserting ‘‘section 236(c)’’; and

(C) in subsection (b)(1), by striking ‘‘section

241(a)(2)(A)(iii)’’ and inserting ‘‘section 237(a)(2)(A)(iii)’’.

(2) TREATMENT OF CERTAIN HELPLESS ALIENS.—

(A) CERTIFICATION OF HELPLESS ALIENS.—Section 232

(8 U.S.C. 1222), as amended by section 308(b)(2) of this

division, is further amended by adding at the end the

following new subsection:

‘‘(c) CERTIFICATION OF CERTAIN HELPLESS ALIENS.—If an

examining medical officer determines that an alien arriving in

the United States is inadmissible, is helpless from sickness, mental

or physical disability, or infancy, and is accompanied by another

alien whose protection or guardianship may be required, the officer

may certify such fact for purposes of applying section 212(a)(10)(B)

with respect to the other alien.’’.

(B) GROUND OF INADMISSIBILITY FOR PROTECTION AND

GUARDIANSHIP OF ALIENS DENIED ADMISSION FOR HEALTH

OR INFANCY.—Subparagraph (B) of section 212(a)(10) (8

U.S.C. 1182(a)(10)), as redesignated by section 301(a)(1)

of this division, is amended to read as follows:

‘‘(B) GUARDIAN REQUIRED TO ACCOMPANY HELPLESS

ALIEN.—Any alien—

‘‘(i) who is accompanying another alien who is

inadmissible and who is certified to be helpless from

sickness, mental or physical disability, or infancy

pursuant to section 232(c), and

‘‘(ii) whose protection or guardianship is determined to be required by the alien described in clause

(i),

is inadmissible.’’.

(3) CONTINGENT CONSIDERATION IN RELATION TO REMOVAL

OF ALIENS.—Section 273(a) (8 U.S.C. 1323(a)) is amended—

(A) by inserting ‘‘(1)’’ after ‘‘(a)’’, and

(B) by adding at the end the following new paragraph:

‘‘(2) It is unlawful for an owner, agent, master, commanding

officer, person in charge, purser, or consignee of a vessel or aircraft

who is bringing an alien (except an alien crewmember) to the

United States to take any consideration to be kept or returned

contingent on whether an alien is admitted to, or ordered removed

from, the United States.’’.

(4) CLARIFICATION.—(A) Section 238(a)(1), which, previous

to redesignation under section 308(b)(5) of this division, was

section 242A(a)(1), is amended by adding at the end the following: ‘‘Nothing in this section shall be construed to create any

substantive or procedural right or benefit that is legally enforceable by any party against the United States or its agencies

or officers or any other person.’’.

(B) Section 225 of the Immigration and Nationality Technical Corrections Act of 1994 (Public Law 103–416) is amended

by striking ‘‘and nothing in’’ and all that follows up to ‘‘shall’’.

(d) ADDITIONAL CONFORMING AMENDMENTS RELATING TO

EXCLUSION AND INADMISSIBILITY.—

(1) SECTION 212.—Section 212 (8 U.S.C. 1182(a)) is amended—

(A) in the heading, by striking ‘‘EXCLUDED FROM’’ and

inserting ‘‘INELIGIBLE FOR’’;

8 USC 1101 note.

8 USC 1228.
110 STAT. 3009–617 PUBLIC LAW 104–208—SEPT. 30, 1996

(B) in the matter in subsection (a) before paragraph

(1), by striking all that follows ‘‘(a)’’ and inserting the

following: ‘‘CLASSES OF ALIENS INELIGIBLE FOR VISAS OR

ADMISSION.—Except as otherwise provided in this Act,

aliens who are inadmissible under the following paragraphs

are ineligible to receive visas and ineligible to be admitted

to the United States:’’;

(C) in subsection (a), by striking ‘‘is excludable’’ and

inserting ‘‘is inadmissible’’ each place it appears;

(D) in subsections (a)(5)(C) (before redesignation by

section 343(c)(1) of this division), (d)(1), and (k), by striking

‘‘exclusion’’ and inserting ‘‘inadmissibility’’;

(E) in subsections (b), (d)(3), (h)(1)(A)(i), and (k), by

striking ‘‘excludable’’ each place it appears and inserting

‘‘inadmissible’’;

(F) in subsection (b)(2), by striking ‘‘or ineligible for

entry’’;

(G) in subsection (d)(7), by striking ‘‘excluded from’’

and inserting ‘‘denied’’; and

(H) in subsection (h)(1)(B), by striking ‘‘exclusion’’ and

inserting ‘‘denial of admission’’.

(2) SECTION 241.—Section 241 (8 U.S.C. 1251), before

redesignation as section 237 by section 305(a)(2) of this division,

is amended—

(A) in subsection (a)(1)(H), by striking ‘‘excludable’’

and inserting ‘‘inadmissible’’;

(B) in subsection (a)(4)(C)(ii), by striking ‘‘excludability’’

and inserting ‘‘inadmissibility’’;

(C) in subsection (c), by striking ‘‘exclusion’’ and inserting ‘‘inadmissibility’’; and

(D) effective upon enactment of this Act, by striking

subsection (d), as added by section 414(a) of the

Antiterrorism and Effective Death Penalty Act of 1996

(P.L. 104–132).

(3) OTHER GENERAL REFERENCES.—The following provisions

are amended by striking ‘‘excludability’’ and ‘‘excludable’’ each

place each appears and inserting ‘‘inadmissibility’’ and

‘‘inadmissible’’, respectively:

(A) Sections 101(f)(3), 213, 234 (before redesignation

by section 308(b) of this division), 241(a)(1) (before

redesignation by section 305(a)(2) of this division), 272(a),

277, 286(h)(2)(A)(v), and 286(h)(2)(A)(vi).

(B) Section 601(c) of the Immigration Act of 1990.

(C) Section 128 of the Foreign Relations Authorization

Act, Fiscal Years 1992 and 1993 (Public Law 102–138).

(D) Section 1073 of the National Defense Authorization

Act for Fiscal Year 1995 (Public Law 103–337).

(E) Section 221 of the Immigration and Nationality

Technical Corrections Act of 1994 (Public Law 103–416).

(4) RELATED TERMS.—

(A) Section 101(a)(17) (8 U.S.C. 1101(a)(17)) is amended

by striking ‘‘or expulsion’’ and inserting ‘‘expulsion, or

removal’’.

(B) Section 102 (8 U.S.C. 1102) is amended by striking

‘‘exclusion or deportation’’ and inserting ‘‘removal’’.

8 USC 1101 note.

8 USC 1182 note.

8 USC 1182 note.

8 USC 1101,

1183, 1224, 1251,

1322, 1327, 1356.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–618

(C) Section 103(c)(2) (8 U.S.C. 1103(c)(2)) is amended

by striking ‘‘been excluded or deported’’ and inserting ‘‘not

been admitted or have been removed’’.

(D) Section 206 (8 U.S.C. 1156) is amended by striking

‘‘excluded from admission to the United States and

deported’’ and inserting ‘‘denied admission to the United

States and removed’’.

(E) Section 216(f) (8 U.S.C. 1186a) is amended by striking ‘‘exclusion’’ and inserting ‘‘inadmissibility’’.

(F) Section 217 (8 U.S.C. 1187) is amended by striking

‘‘excluded from admission’’ and inserting ‘‘denied admission

at the time of arrival’’ each place it appears.

(G) Section 221(f) (8 U.S.C. 1201) is amended by striking ‘‘exclude’’ and inserting ‘‘deny admission to’’.

(H) Section 232(a) (8 U.S.C. 1222(a)), as redesignated

by subsection (b)(2), is amended by striking ‘‘excluded by’’

and ‘‘the excluded classes’’ and inserting ‘‘inadmissible

under’’ and ‘‘inadmissible classes’’, respectively.

(I)(i) Section 272 (8 U.S.C. 1322) is amended—

(I) by striking ‘‘EXCLUSION’’ in the heading and

inserting ‘‘DENIAL OF ADMISSION’’,

(II) in subsection (a), by striking ‘‘excluding condition’’ and inserting ‘‘condition causing inadmissibility’’,

and

(III) in subsection (c), by striking ‘‘excluding’’.

(ii) The item in the table of contents relating to such

section is amended by striking ‘‘exclusion’’ and inserting

‘‘denial of admission’’.

(J) Section 276(a) (8 U.S.C. 1326(a)) is amended—

(i) in paragraph (1), as amended by section 324(a)

of this division—

(I) by striking ‘‘arrested and deported, has

been excluded and deported,’’ and inserting ‘‘denied

admission, excluded, deported, or removed’’, and

(II) by striking ‘‘exclusion or deportation’’ and

inserting ‘‘exclusion, deportation, or removal’’; and

(ii) in paragraph (2)(B), by striking ‘‘excluded and

deported’’ and inserting ‘‘denied admission and

removed’’.

(K) Section 286(h)(2)(A)(vi) (8 U.S.C. 1356(h)(2)(A)(vi))

is amended by striking ‘‘exclusion’’ each place it appears

and inserting ‘‘removal’’.

(L) Section 287 (8 U.S.C. 1357) is amended—

(i) in subsection (a), by striking ‘‘or expulsion’’

each place it appears and inserting ‘‘expulsion, or

removal’’, and

(ii) in subsection (c), by striking ‘‘exclusion from’’

and inserting ‘‘denial of admission to’’.

(M) Section 290(a) (8 U.S.C. 1360(a)) is amended by

striking ‘‘admitted to the United States, or excluded therefrom’’ each place it appears and inserting ‘‘admitted or

denied admission to the United States’’.

(N) Section 291 (8 U.S.C. 1361) is amended by striking

‘‘subject to exclusion’’ and inserting ‘‘inadmissible’’ each

place it appears.
110 STAT. 3009–619 PUBLIC LAW 104–208—SEPT. 30, 1996

(O) Section 292 (8 U.S.C. 1362) is amended by striking

‘‘exclusion or deportation’’ each place it appears and inserting ‘‘removal’’.

(P) Section 360 (8 U.S.C. 1503) is amended—

(i) in subsection (a), by striking ‘‘exclusion’’ each

place it appears and inserting ‘‘removal’’, and

(ii) in subsection (c), by striking ‘‘excluded from’’

and inserting ‘‘denied’’.

(Q) Section 507(b)(2)(D) (8 U.S.C. 1537(b)(2)(D)) is

amended by striking ‘‘exclusion because such alien is

excludable’’ and inserting ‘‘removal because such alien is

inadmissible’’.

(R) Section 301(a)(1) of the Immigration Act of 1990

is amended by striking ‘‘exclusion’’ and inserting ‘‘inadmissibility’’.

(S) Section 401(c) of the Refugee Act of 1980 is amended by striking ‘‘deportation or exclusion’’ and inserting

‘‘removal’’.

(T) Section 501(e)(2) of the Refugee Education Assistance Act of 1980 (Public Law 96–422) is amended—

(i) by striking ‘‘exclusion or deportation’’ each place

it appears and inserting ‘‘removal’’, and

(ii) by striking ‘‘deportation or exclusion’’ each

place it appears and inserting ‘‘removal’’.

(U) Section 4113(c) of title 18, United States Code,

is amended by striking ‘‘exclusion and deportation’’ and

inserting ‘‘removal’’.

(5) REPEAL OF SUPERSEDED PROVISION.—Effective as of the

date of the enactment of the Antiterrorism and Effective Death

Penalty Act of 1996, section 422 of such Act is repealed and

the Immigration and Nationality Act shall be applied as if

such section had not been enacted.

(e) REVISION OF TERMINOLOGY RELATING TO DEPORTATION.—

(1) Each of the following is amended by striking ‘‘deportation’’ each place it appears and inserting ‘‘removal’’:

(A) Subparagraphs (A)(iii)(II), (A)(iv)(II), and (B)(iii)(II)

of section 204(a)(1) (8 U.S.C. 1154(a)(1)).

(B) Section 212(d)(1) (8 U.S.C. 1182(d)(1)).

(C) Section 212(d)(11) (8 U.S.C. 1182(d)(11)).

(D) Section 214(k)(4)(C) (8 U.S.C. 1184(k)(4)(C)), as

redesignated by section 671(a)(3)(A) of this division.

(E) Section 241(a)(1)(H) (8 U.S.C. 1251(a)(1)(H)), before

redesignation as section 237 by section 305(a)(2) of this

division.

(F) Section 242A (8 U.S.C. 1252a), before redesignation

as section 238 by subsection (b)(5).

(G) Subsections (a)(3) and (b)(5)(B) of section 244A

(8 U.S.C. 1254a), before redesignation as section 244 by

subsection (b)(7).

(H) Section 246(a) (8 U.S.C. 1256(a)).

(I) Section 254 (8 U.S.C. 1284).

(J) Section 263(a)(4) (8 U.S.C. 1303(a)(4)).

(K) Section 276(b) (8 U.S.C. 1326(b)).

(L) Section 286(h)(2)(A)(v) (8 U.S.C. 1356(h)(2)(A)(v)).

(M) Section 287(g) (8 U.S.C. 1357(g)) (as added by

section 122 of this division).

(N) Section 291 (8 U.S.C. 1361).

8 USC 1225,

1225 note, 1227.

8 USC 1522 note.

8 USC 1522 note.

8 USC 1255a

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–620

(O) Section 318 (8 U.S.C. 1429).

(P) Section 130005(a) of the Violent Crime Control

and Law Enforcement Act of 1994 (Public Law 103–322).

(Q) Section 4113(b) of title 18, United States Code.

(2) Each of the following is amended by striking ‘‘deported’’

each place it appears and inserting ‘‘removed’’:

(A) Section 212(d)(7) (8 U.S.C. 1182(d)(7)).

(B) Section 214(d) (8 U.S.C. 1184(d)).

(C) Section 241(a) (8 U.S.C. 1251(a)), before redesignation as section 237 by section 305(a)(2) of this division.

(D) Section 242A(c)(2)(D)(iv) (8 U.S.C.

1252a(c)(2)(D)(iv)), as amended by section 671(b)(13) of this

division but before redesignation as section 238 by subsection (b)(5).

(E) Section 252(b) (8 U.S.C. 1282(b)).

(F) Section 254 (8 U.S.C. 1284).

(G) Subsections (b) and (c) of section 266 (8 U.S.C.

1306).

(H) Section 301(a)(1) of the Immigration Act of 1990.

(I) Section 4113 of title 18, United States Code.

(3) Section 101(g) (8 U.S.C. 1101(g)) is amended by inserting ‘‘or removed’’ after ‘‘deported’’ each place it appears.

(4) Section 103(c)(2) (8 U.S.C. 1103(c)(2)) is amended by

striking ‘‘suspension of deportation’’ and inserting ‘‘cancellation

of removal’’.

(5) Section 201(b)(1)(D) (8 U.S.C. 1151(b)(1)(D)) is amended

by striking ‘‘deportation is suspended’’ and inserting ‘‘removal

is canceled’’.

(6) Section 212(l)(2)(B) (8 U.S.C. 1182(l)(2)(B)) is amended

by striking ‘‘deportation against’’ and inserting ‘‘removal of’’.

(7) Subsections (b)(2), (c)(2)(B), (c)(3)(D), (c)(4)(A), and

(d)(2)(C) of section 216 (8 U.S.C. 1186a) are each amended

by striking ‘‘DEPORTATION’’, ‘‘deportation’’, ‘‘deport’’, and

‘‘deported’’ each place each appears and inserting ‘‘REMOVAL’’,

‘‘removal’’, ‘‘remove’’, and ‘‘removed’’, respectively.

(8) Subsections (b)(2), (c)(2)(B), (c)(3)(D), and (d)(2)(C) of

section 216A (8 U.S.C. 1186b) are each amended by striking

‘‘DEPORTATION’’, ‘‘deportation’’, ‘‘deport’’, and ‘‘deported’’ and

inserting ‘‘REMOVAL’’, ‘‘removal’’, ‘‘remove’’, and ‘‘removed’’,

respectively.

(9) Section 217(b)(2) (8 U.S.C. 1187(b)(2)) is amended by

striking ‘‘deportation against’’ and inserting ‘‘removal of’’.

(10) Section 242A (8 U.S.C. 1252a), before redesignation

as section 238 by subsection (b)(6), is amended, in the headings

to various subdivisions, by striking ‘‘DEPORTATION’’ and ‘‘DEPORTATION’’ and inserting ‘‘REMOVAL’’ and ‘‘REMOVAL’’, respectively.

(11) Section 244A(a)(1)(A) (8 U.S.C. 1254a(a)(1)(A)), before

redesignation as section 244 by subsection (b)(8), is amended—

(A) in subsection (a)(1)(A), by striking ‘‘deport’’ and

inserting ‘‘remove’’, and

(B) in subsection (e), by striking ‘‘SUSPENSION OF

DEPORTATION’’ and inserting ‘‘CANCELLATION OF REMOVAL’’.

(12) Section 254 (8 U.S.C. 1284) is amended by striking

‘‘deport’’ each place it appears and inserting ‘‘remove’’.

(13) Section 273(d) (8 U.S.C. 1323(d)) is repealed.

(14)(A) Section 276 (8 U.S.C. 1326) is amended by striking

‘‘DEPORTED’’ and inserting ‘‘REMOVED’’.

8 USC 1225a

note.

8 USC 1158 note.
110 STAT. 3009–621 PUBLIC LAW 104–208—SEPT. 30, 1996

(B) The item in the table of contents relating to such

section is amended by striking ‘‘deported’’ and inserting

‘‘removed’’.

(15) Section 318 (8 U.S.C. 1429) is amended by striking

‘‘suspending’’ and inserting ‘‘canceling’’.

(16) Section 301(a) of the Immigration Act of 1990 is

amended by striking ‘‘DEPORTATION’’ and inserting ‘‘REMOVAL’’.

(17) The heading of section 130005 of the Violent Crime

Control and Law Enforcement Act of 1994 (Public Law 103–

322) is amended by striking ‘‘DEPORTATION’’ and inserting

‘‘REMOVAL’’.

(18) Section 9 of the Peace Corps Act (22 U.S.C. 2508)

is amended by striking ‘‘deported’’ and all that follows through

‘‘Deportation’’ and inserting ‘‘removed pursuant to chapter 4

of title II of the Immigration and Nationality Act’’.

(19) Section 8(c) of the Foreign Agents Registration Act

(22 U.S.C. 618(c)) is amended by striking ‘‘deportation’’ and

all that follows and inserting ‘‘removal pursuant to chapter

4 of title II of the Immigration and Nationality Act.’’.

(f) REVISION OF REFERENCES TO ENTRY.—

(1) The following provisions are amended by striking

‘‘entry’’ and inserting ‘‘admission’’ each place it appears:

(A) Section 101(a)(15)(K) (8 U.S.C. 1101(a)(15)(K)).

(B) Section 101(a)(30) (8 U.S.C. 1101(a)(30)).

(C) Section 212(a)(2)(D) (8 U.S.C. 1182(a)(2)(D)).

(D) Section 212(a)(6)(C)(i) (8 U.S.C. 1182(a)(6)(C)(i)).

(E) Section 212(h)(1)(A)(i) (8 U.S.C. 1182(h)(1)(A)(i)).

(F) Section 212(j)(1)(D) (8 U.S.C. 1182(j)(1)(D)).

(G) Section 214(c)(2)(A) (8 U.S.C. 1184(c)(2)(A)).

(H) Section 214(d) (8 U.S.C. 1184(d)).

(I) Section 216(b)(1)(A)(i) (8 U.S.C. 1186a(b)(1)(A)(i)).

(J) Section 216(d)(1)(A)(i)(III) (8 U.S.C.

1186a(d)(1)(A)(i)(III)).

(K) Subsection (b) of section 240 (8 U.S.C. 1230), before

redesignation as section 240C by section 304(a)(2) of this

division.

(L) Subsection (a)(1)(G) of section 241 (8 U.S.C. 1251),

before redesignation as section 237 by section 305(a)(2)

of this division.

(M) Subsection (a)(1)(H) of section 241 (8 U.S.C. 1251),

before redesignation as section 237 by section 305(a)(2)

of this division, other than the last time it appears.

(N) Paragraphs (2) and (4) of subsection (a) of section

241 (8 U.S.C. 1251), before redesignation as section 237

by section 305(a)(2) of this division.

(O) Section 245(e)(3) (8 U.S.C. 1255(e)(3)).

(P) Section 247(a) (8 U.S.C. 1257(a)).

(Q) Section 601(c)(2) of the Immigration Act of 1990.

(2) The following provisions are amended by striking

‘‘enter’’ and inserting ‘‘be admitted’’:

(A) Section 204(e) (8 U.S.C. 1154(e)).

(B) Section 221(h) (8 U.S.C. 1201(h)).

(C) Section 245(e)(2) (8 U.S.C. 1255(e)(2)).

(3) The following provisions are amended by striking

‘‘enters’’ and inserting ‘‘is admitted to’’:

(A) Section 212(j)(1)(D)(ii) (8 U.S.C. 1154(e)).

(B) Section 214(c)(5)(B) (8 U.S.C. 1184(c)(5)(B)).

8 USC 1182.

8 USC 1182 note.

8 USC 1158 note.

8 USC 1255a

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–622

(4) Subsection (a) of section 238 (8 U.S.C. 1228), before

redesignation as section 233 by section 308(b)(4) of this division,

is amended by striking ‘‘entry and inspection’’ and inserting

‘‘inspection and admission’’.

(5) Subsection (a)(1)(H)(ii) of section 241 (8 U.S.C. 1251),

before redesignation as section 237 by section 305(a)(2) of this

division, is amended by striking ‘‘at entry’’.

(6) Section 7 of the Central Intelligence Agency Act of

1949 (50 U.S.C. 403h) is amended by striking ‘‘that the entry’’,

‘‘given entry into’’, and ‘‘entering’’ and inserting ‘‘that the admission’’, ‘‘admitted to’’, and ‘‘admitted to’’.

(7) Section 4 of the Atomic Weapons and Special Nuclear

Materials Rewards Act (50 U.S.C. 47c) is amended by striking

‘‘entry’’ and inserting ‘‘admission’’.

(g) CONFORMING REFERENCES TO REORGANIZED SECTIONS.—

(1) REFERENCES TO SECTIONS 232, 234, 238, 239, 240, 241,

242A, AND 244A.—Any reference in law in effect on the day

before the date of the enactment of this Act to section 232,

234, 238, 239, 240, 241, 242A, or 244A of the Immigration

and Nationality Act (or a subdivision of such section) is deemed,

as of the title III–A effective date, to refer to section 232(a),

232(b), 233, 234, 234A, 237, 238, or 244 of such Act (or the

corresponding subdivision of such section), as redesignated by

this subtitle. Any reference in law to section 241 (or a subdivision of such section) of the Immigration and Nationality Act

in an amendment made by a subsequent subtitle of this title

is deemed a reference (as of the title III–A effective date)

to section 237 (or the corresponding subdivision of such section),

as redesignated by this subtitle.

(2) REFERENCES TO SECTION 106.—

(A) Sections 242A(b)(3) and 242A(c)(3)(A)(ii) (8 U.S.C.

1252a(b)(3), 1252a(c)(3)(A)(ii)), as amended by section

671(b)(13) of this division but before redesignation as section 238 by subsection (b)(5), are each amended by striking

‘‘106’’ and inserting ‘‘242’’.

(B) Sections 210(e)(3)(A) and 245A(f)(4)(A) (8 U.S.C.

1160(e)(3)(A), 1255a(f)(4)(A)) are amended by inserting ‘‘(as

in effect before October 1, 1996)’’ after ‘‘106’’.

(C) Section 242A(c)(3)(A)(iii) (8 U.S.C.

1252a(c)(3)(A)(iii)), as amended by section 671(b)(13) of this

division but before redesignation as section 238 by subsection (b)(5), is amended by striking ‘‘106(a)(1)’’ and inserting ‘‘242(b)(1)’’.

(3) REFERENCES TO SECTION 236.—

(A) Sections 205 and 209(a)(1) (8 U.S.C. 1155,

1159(a)(1)) are each amended by striking ‘‘236’’ and inserting ‘‘240’’.

(B) Section 4113(c) of title 18, United States Code,

is amended by striking ‘‘1226 of title 8, United States

Code’’ and inserting ‘‘240 of the Immigration and Nationality Act’’.

(4) REFERENCES TO SECTION 237.—

(A) Section 209(a)(1) (8 U.S.C. 1159(a)(1)) is amended

by striking ‘‘237’’ and inserting ‘‘241’’.

(B) Section 212(d)(7) (8 U.S.C. 1182(d)(7)) is amended

by striking ‘‘237(a)’’ and inserting ‘‘241(c)’’.

8 USC 1182,

1221, 1224 note,

1252a, 1254a

note, 1255a note,

1321, 1356, 1364,

1531; 42 USC

402.
110 STAT. 3009–623 PUBLIC LAW 104–208—SEPT. 30, 1996

(C) Section 280(a) (8 U.S.C. 1330(a)) is amended by

striking ‘‘237, 239, 243’’ and inserting ‘‘234, 243(c)(2)’’.

(5) REFERENCES TO SECTION 242.— (A)(i) Sections 214(d), 252(b), and 287(f)(1) (8 U.S.C.

1184(d), 1282(b), 1357(f)(1)) are each amended by striking

‘‘242’’ and inserting ‘‘240’’.

(ii) Subsection (c)(4) of section 242A (8 U.S.C. 1252a),

as amended by section 671(b)(13) of this division but before

redesignation as section 238 by subsection (b)(5), are each

amended by striking ‘‘242’’ and inserting ‘‘240’’.

(iii) Section 245A(a)(1)(B) (8 U.S.C. 1255a(a)(1)(B)) is

amended by inserting ‘‘(as in effect before October 1, 1996)’’

after ‘‘242’’.

(iv) Section 4113 of title 18, United States Code, is

amended—

(I) in subsection (a), by striking ‘‘section 1252(b)

or section 1254(e) of title 8, United States Code,’’ and

inserting ‘‘section 240B of the Immigration and

Nationality Act’’; and

(II) in subsection (b), by striking ‘‘section 1252

of title 8, United States Code,’’ and inserting ‘‘section

240 of the Immigration and Nationality Act’’.

(B) Section 130002(a) of Public Law 103–322, as

amended by section 345 of this division, is amended by

striking ‘‘242(a)(3)(A)’’ and inserting ‘‘236(d)’’.

(C) Section 242A(b)(1) (8 U.S.C. 1252a(b)(1)), before

redesignation as section 238 by section 308(b)(5) of this

division, is amended by striking ‘‘242(b)’’ and inserting

‘‘240’’.

(D) Section 242A(c)(2)(D)(ii) (8 U.S.C.

1252a(c)(2)(D)(ii)), as amended by section 671(b)(13) of this

division but before redesignation as section 238 by subsection (b)(5), is amended by striking ‘‘242(b)’’ and inserting

‘‘240’’.

(E) Section 1821(e) of title 28, United States Code,

is amended by striking ‘‘242(b)’’ and inserting ‘‘240’’.

(F) Section 130007(a) of Public Law 103–322 is amended by striking ‘‘242(i)’’ and inserting ‘‘239(d)’’.

(G) Section 20301(c) of Public Law 103–322 is amended

by striking ‘‘242(j)(5)’’ and ‘‘242(j)’’ and inserting ‘‘241(h)(5)’’

and ‘‘241(h)’’, respectively.

(6) REFERENCES TO SECTION 242B.—

(A) Section 303(d)(2) of the Immigration Act of 1990

is amended by striking ‘‘242B’’ and inserting ‘‘240(b)(5)’’.

(B) Section 545(g)(1)(B) of the Immigration Act of 1990

is amended by striking ‘‘242B(a)(4)’’ and inserting

‘‘239(a)(4)’’.

(7) REFERENCES TO SECTION 243.—

(A) Section 214(d) (8 U.S.C. 1184(d)) is amended by

striking ‘‘243’’ and inserting ‘‘241’’.

(B) Section 504(k)(2) (8 U.S.C. 1534(k)(2)) is amended

by striking ‘‘withholding of deportation under section

243(h)’’ and inserting ‘‘by withholding of removal under

section 241(b)(3)’’.

(C)(i) Section 315(c) of the Immigration Reform and

Control Act of 1986 is amended by striking ‘‘243(g)’’ and

‘‘1253(g)’’and inserting ‘‘243(d)’’ and ‘‘1253(d)’’ respectively.

8 USC 1253 note.

8 USC 1254b

note.

8 USC 1254a

note.

8 USC 1252 note.

8 USC 1252 note.

8 USC 1252 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–624

(ii) Section 702(b) of the Departments of Commerce,

Justice, and State, the Judiciary, and Related Agencies

Appropriations Act, 1988 is amended by striking ‘‘243(g)’’

and inserting ‘‘243(d)’’.

(iii) Section 903(b) of Public Law 100–204 is amended

by striking ‘‘243(g)’’ and inserting ‘‘243(d)’’.

(D)(i) Section 6(f)(2)(F) of the Food Stamp Act of 1977

(7 U.S.C. 2015(f)(2)(F)) is amended by striking ‘‘243(h)’’

and inserting ‘‘241(b)(3)’’.

(ii) Section 214(a)(5) of the Housing and Community

Development Act of 1980 (42 U.S.C. 1436a(a)(5)) is amended by striking ‘‘243(h)’’ and inserting ‘‘241(b)(3)’’.

(E)(i) Subsection (c)(2)(B)(ii) of section 244A (8 U.S.C.

1254a), before redesignated as section 244 by section

308(b)(7), is amended by striking ‘‘243(h)(2)’’ and inserting

‘‘208(b)(2)(A)’’.

(ii) Section 301(e)(2) of the Immigration Act of 1990

is amended by striking ‘‘243(h)(2)’’ and inserting

‘‘208(b)(2)(A)’’.

(F) Section 316(f) (8 U.S.C. 1427(f)) is amended by

striking ‘‘subparagraphs (A) through (D) of paragraph

243(h)(2)’’ and inserting ‘‘clauses (i) through (v) of section

208(b)(2)(A)’’.

(8) REFERENCES TO SECTION 244.—

(A)(i) Section 201(b)(1)(D) (8 U.S.C. 1151(b)(1)(D)) and

subsection (e) of section 244A (8 U.S.C. 1254a), before

redesignation as section 244 by section 308(b)(7) of this

division, are each amended by striking ‘‘244(a)’’ and inserting ‘‘240A(a)’’.

(ii) Section 304(c)(1)(B) of the Miscellaneous and Technical Immigration and Naturalization Amendments of 1991

(Public Law 102–232) is amended by striking ‘‘244(a)’’ and

inserting ‘‘240A(a)’’.

(B) Section 504(k)(3) (8 U.S.C. 1534(k)(3)) is amended

by striking ‘‘suspension of deportation under subsection

(a) or (e) of section 244’’ and inserting ‘‘cancellation of

removal under section 240A’’.

(C) Section 304(c)(1)(B) of the Miscellaneous and Technical Immigration and Naturalization Amendments of 1991

(Public Law 102–232) is amended by striking ‘‘244(b)(2)’’

and inserting ‘‘240A(b)(2)’’.

(D) Section 364(a)(2) of this division is amended by

striking ‘‘244(a)(3)’’ and inserting ‘‘240A(a)(3)’’.

(E) Section 431(c)(1)(B)(iii) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, as

added by section 501 of this division, is amended by striking

‘‘suspension of deportation and adjustment of status pursuant to section 244(a)(3) of such Act’’ and inserting ‘‘cancellation of removal under section 240A of such Act’’.

(9) REFERENCES TO CHAPTER 5.—

(A) Sections 266(b), 266(c), and 291 (8 U.S.C. 1306(b),

1306(c), 1361) are each amended by striking ‘‘chapter 5’’

and inserting ‘‘chapter 4’’.

(B) Section 6(b) of the Act of August 1, 1956 (50 U.S.C.

855(b)) is amended by striking ‘‘chapter 5, title II, of the

8 USC 1641.

8 USC 1367.

8 USC 1254a

note.

8 USC 1254a

note.

8 USC 1255a

note.

8 USC 1201 note.

8 USC 1201 note.
110 STAT. 3009–625 PUBLIC LAW 104–208—SEPT. 30, 1996

Immigration and Nationality Act (66 Stat. 163)’’ and inserting ‘‘chapter 4 of title II of the Immigration and Nationality

Act’’.

(10) MISCELLANEOUS CROSS-REFERENCE CORRECTIONS FOR

NEWLY ADDED PROVISIONS.—

(A) Section 212(h), as amended by section 301(h) of

this division, is amended by striking ‘‘section 212(c)’’ and

inserting ‘‘paragraphs (1) and (2) of section 240A(a)’’.

(B) Section 245(c)(6), as amended by section 332(d)

of this division, is amended by striking ‘‘241(a)(4)(B)’’ and

inserting ‘‘237(a)(4)(B)’’.

(C) Section 249(d), as amended by section 332(e) of

this division, is amended by striking ‘‘241(a)(4)(B)’’ and

inserting ‘‘237(a)(4)(B)’’.

(D) Section 274C(d)(7), as added by section 212(d) of

this division, is amended by striking ‘‘withholding of deportation under section 243(h)’’ and inserting ‘‘withholding

of removal under section 241(b)(3)’’.

(E) Section 3563(b)(21) of title 18, United States Code,

as inserted by section 374(b) of this division, is amended

by striking ‘‘242A(d)(5)’’ and inserting ‘‘238(d)(5)’’.

(F) Section 130007(a) of the Violent Crime Control

and Law Enforcement Act of 1994 (Public Law 103–322),

as amended by section 671(a)(6) of this division, is amended

by striking ‘‘242A(a)(3)’’ and inserting ‘‘238(a)(3)’’.

(G) Section 386(b) of this division is amended by striking ‘‘excludable’’ and ‘‘EXCLUDABLE’’ and inserting ‘‘inadmissible’’ and ‘‘INADMISSIBLE’’, respectively, each place each

appears.

(H) Subsections (a), (c), (d), (g), and (h) of section

440 of the Antiterrorism and Effective Death Penalty Act

of 1996 (Public Law 104–132), as amended by section 306(d)

of this division, are amended by striking ‘‘241(a)(2)(A)(ii)’’

and ‘‘241(a)(2)(A)(i)’’ and inserting ‘‘237(a)(2)(A)(ii)’’ and

‘‘237(a)(2)(A)(i)’’, respectively.

SEC. 309. EFFECTIVE DATES; TRANSITION.

(a) IN GENERAL.—Except as provided in this section and sections 303(b)(2), 306(c), 308(d)(2)(D), or 308(d)(5) of this division,

this subtitle and the amendments made by this subtitle shall take

effect on the first day of the first month beginning more than

180 days after the date of the enactment of this Act (in this

title referred to as the ‘‘title III–A effective date’’).

(b) PROMULGATION OF REGULATIONS.—The Attorney General

shall first promulgate regulations to carry out this subtitle by

not later than 30 days before the title III–A effective date.

(c) TRANSITION FOR ALIENS IN PROCEEDINGS.—

(1) GENERAL RULE THAT NEW RULES DO NOT APPLY.—Subject

to the succeeding provisions of this subsection, in the case

of an alien who is in exclusion or deportation proceedings

as of the title III–A effective date—

(A) the amendments made by this subtitle shall not

apply, and

(B) the proceedings (including judicial review thereof)

shall continue to be conducted without regard to such

amendments.

8 USC 1101 note.

8 USC 1105a,

1182, 1252,

1252a.

8 USC 1368.

8 USC 1252 note.

8 USC 1324c.

8 USC 1259.

8 USC 1255.

8 USC 1182.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–626

(2) ATTORNEY GENERAL OPTION TO ELECT TO APPLY NEW

PROCEDURES.—In a case described in paragraph (1) in which

an evidentiary hearing under section 236 or 242 and 242B

of the Immigration and Nationality Act has not commenced

as of the title III–A effective date, the Attorney General may

elect to proceed under chapter 4 of title II of such Act (as

amended by this subtitle). The Attorney General shall provide

notice of such election to the alien involved not later than

30 days before the date any evidentiary hearing is commenced.

If the Attorney General makes such election, the notice of

hearing provided to the alien under section 235 or 242(a) of

such Act shall be valid as if provided under section 239 of

such Act (as amended by this subtitle) to confer jurisdiction

on the immigration judge.

(3) ATTORNEY GENERAL OPTION TO TERMINATE AND REINITIATE PROCEEDINGS.—In the case described in paragraph (1),

the Attorney General may elect to terminate proceedings in

which there has not been a final administrative decision and

to reinitiate proceedings under chapter 4 of title II the Immigration and Nationality Act (as amended by this subtitle). Any

determination in the terminated proceeding shall not be binding

in the reinitiated proceeding.

(4) TRANSITIONAL CHANGES IN JUDICIAL REVIEW.—In the

case described in paragraph (1) in which a final order of exclusion or deportation is entered more than 30 days after the

date of the enactment of this Act, notwithstanding any provision

of section 106 of the Immigration and Nationality Act (as in

effect as of the date of the enactment of this Act) to the

contrary—

(A) in the case of judicial review of a final order of

exclusion, subsection (b) of such section shall not apply

and the action for judicial review shall be governed by

the provisions of subsections (a) and (c) of such in the

same manner as they apply to judicial review of orders

of deportation;

(B) a court may not order the taking of additional

evidence under section 2347(c) of title 28, United States

Code;

(C) the petition for judicial review must be filed not

later than 30 days after the date of the final order of

exclusion or deportation;

(D) the petition for review shall be filed with the court

of appeals for the judicial circuit in which the administrative proceedings before the special inquiry officer or

immigration judge were completed;

(E) there shall be no appeal of any discretionary decision under section 212(c), 212(h), 212(i), 244, or 245 of

the Immigration and Nationality Act (as in effect as of

the date of the enactment of this Act);

(F) service of the petition for review shall not stay

the deportation of an alien pending the court’s decision

on the petition, unless the court orders otherwise; and

(G) there shall be no appeal permitted in the case

of an alien who is inadmissible or deportable by reason

of having committed a criminal offense covered in section

212(a)(2) or section 241(a)(2)(A)(iii), (B), (C), or (D) of the

Immigration and Nationality Act (as in effect as of the
110 STAT. 3009–627 PUBLIC LAW 104–208—SEPT. 30, 1996

date of the enactment of this Act), or any offense covered

by section 241(a)(2)(A)(ii) of such Act (as in effect on such

date) for which both predicate offenses are, without regard

to their date of commission, otherwise covered by section

241(a)(2)(A)(i) of such Act (as so in effect).

(5) TRANSITIONAL RULE WITH REGARD TO SUSPENSION OF

DEPORTATION.—Paragraphs (1) and (2) of section 240A(d) of

the Immigration and Nationality Act (relating to continuous

residence or physical presence) shall apply to notices to appear

issued before, on, or after the date of the enactment of this

Act.

(6) TRANSITION FOR CERTAIN FAMILY UNITY ALIENS.—The

Attorney General may waive the application of section 212(a)(9)

of the Immigration and Nationality Act, as inserted by section

301(b)(1) of this division, in the case of an alien who is provided

benefits under the provisions of section 301 of the Immigration

Act of 1990 (relating to family unity).

(7) LIMITATION ON SUSPENSION OF DEPORTATION.—The

Attorney General may not suspend the deportation and adjust

the status under section 244 of the Immigration and Nationality

Act of more than 4,000 aliens in any fiscal year (beginning

after the date of the enactment of this Act). The previous

sentence shall apply regardless of when an alien applied for

such suspension and adjustment.

(d) TRANSITIONAL REFERENCES.—For purposes of carrying out

the Immigration and Nationality Act, as amended by this subtitle—

(1) any reference in section 212(a)(1)(A) of such Act to

the term ‘‘inadmissible’’ is deemed to include a reference to

the term ‘‘excludable’’, and

(2) any reference in law to an order of removal shall be

deemed to include a reference to an order of exclusion and

deportation or an order of deportation.

(e) TRANSITION.—No period of time before the date of the enactment of this Act shall be included in the period of 1 year described

in section 212(a)(6)(B)(i) of the Immigration and Nationality Act

(as amended by section 301(c) of this division).

Subtitle B—Criminal Alien Provisions

SEC. 321. AMENDED DEFINITION OF AGGRAVATED FELONY.

(a) IN GENERAL.—Section 101(a)(43) (8 U.S.C. 1101(a)(43)), as

amended by section 441(e) of the Antiterrorism and Effective Death

Penalty Act of 1996 (P.L. 104–132), is amended—

(1) in subparagraph (A), by inserting ‘‘, rape, or sexual

abuse of a minor’’ after ‘‘murder’’;

(2) in subparagraph (D), by striking ‘‘$100,000’’ and inserting ‘‘$10,000’’;

(3) in subparagraphs (F), (G), (N), and (P), by striking

‘‘is at least 5 years’’ each place it appears and inserting ‘‘at

least one year’’;

(4) in subparagraph (J), by striking ‘‘sentence of 5 years’

imprisonment’’ and inserting ‘‘sentence of one year imprisonment’’;

(5) in subparagraph (K)(ii), by inserting ‘‘if committed’’

before ‘‘for commercial advantage’’;

(6) in subparagraph (L)—
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–628

(A) by striking ‘‘or’’ at the end of clause (i),

(B) by inserting ‘‘or’’ at the end of clause (ii), and

(C) by adding at the end the following new clause:

‘‘(iii) section 601 of the National Security Act of

1947 (relating to protecting the identity of undercover

agents);’’;

(7) in subparagraph (M), by striking ‘‘$200,000’’ each place

it appears and inserting ‘‘$10,000’’;

(8) in subparagraph (N), by striking ‘‘for which the term’’

and all that follows and inserting the following: ‘‘, except in

the case of a first offense for which the alien has affirmatively

shown that the alien committed the offense for the purpose

of assisting, abetting, or aiding only the alien’s spouse, child,

or parent (and no other individual) to violate a provision of

this Act’’;

(9) in subparagraph (P), by striking ‘‘18 months’’ and inserting ‘‘12 months, except in the case of a first offense for which

the alien has affirmatively shown that the alien committed

the offense for the purpose of assisting, abetting, or aiding

only the alien’s spouse, child, or parent (and no other individual)

to violate a provision of this Act’’;

(10) in subparagraph (R), by striking ‘‘for which a sentence

of 5 years’ imprisonment or more may be imposed’’ and inserting

‘‘for which the term of imprisonment is at least one year’’;

and

(11) in subparagraph (S), by striking ‘‘for which a sentence

of 5 years’ imprisonment or more may be imposed’’ and inserting

‘‘for which the term of imprisonment is at least one year’’.

(b) EFFECTIVE DATE OF DEFINITION.—Section 101(a)(43) (8

U.S.C. 1101(a)(43)) is amended by adding at the end the following

new sentence: ‘‘Notwithstanding any other provision of law (including any effective date), the term applies regardless of whether

the conviction was entered before, on, or after the date of enactment

of this paragraph.’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply to actions taken on or after the date of the enactment

of this Act, regardless of when the conviction occurred, and shall

apply under section 276(b) of the Immigration and Nationality

Act only to violations of section 276(a) of such Act occurring on

or after such date.

SEC. 322. DEFINITION OF CONVICTION AND TERM OF IMPRISONMENT.

(a) DEFINITION.—

(1) IN GENERAL.—Section 101(a) (8 U.S.C. 1101(a)) is

amended by adding at the end the following new paragraph:

‘‘(48)(A) The term ‘conviction’ means, with respect to an alien,

a formal judgment of guilt of the alien entered by a court or,

if adjudication of guilt has been withheld, where—

‘‘(i) a judge or jury has found the alien guilty or the alien

has entered a plea of guilty or nolo contendere or has admitted

sufficient facts to warrant a finding of guilt, and

‘‘(ii) the judge has ordered some form of punishment, penalty, or restraint on the alien’s liberty to be imposed.

‘‘(B) Any reference to a term of imprisonment or a sentence

with respect to an offense is deemed to include the period of incarceration or confinement ordered by a court of law regardless of

8 USC 1101 note.
110 STAT. 3009–629 PUBLIC LAW 104–208—SEPT. 30, 1996

any suspension of the imposition or execution of that imprisonment

or sentence in whole or in part.’’.

(2) CONFORMING AMENDMENTS.— (A) Section 101(a)(43) (8 U.S.C. 1101(a)(43)) is amended

by striking ‘‘imposed (regardless of any suspension of

imprisonment)’’ each place it appears in subparagraphs

(F), (G), (N), and (P).

(B) Section 212(a)(2)(B) (8 U.S.C. 1182(a)(2)(B)) is

amended by striking ‘‘actually imposed’’.

(b) REFERENCE TO PROOF PROVISIONS.—For provisions relating

to proof of convictions, see subparagraphs (B) and (C) of section

240(c)(3) of the Immigration and Nationality Act, as inserted by

section 304(a)(3) of this division.

(c) EFFECTIVE DATE.—The amendments made by subsection

(a) shall apply to convictions and sentences entered before, on,

or after the date of the enactment of this Act. Subparagraphs

(B) and (C) of section 240(c)(3) of the Immigration and Nationality

Act, as inserted by section 304(a)(3) of this division, shall apply

to proving such convictions.

SEC. 323. AUTHORIZING REGISTRATION OF ALIENS ON CRIMINAL

PROBATION OR CRIMINAL PAROLE.

Section 263(a) (8 U.S.C. 1303(a)) is amended by striking ‘‘and

(5)’’ and inserting ‘‘(5) aliens who are or have been on criminal

probation or criminal parole within the United States, and (6)’’.

SEC. 324. PENALTY FOR REENTRY OF DEPORTED ALIENS.

(a) IN GENERAL.—Section 276(a)(1) (8 U.S.C. 1326(a)(1)) is

amended to read as follows:

‘‘(1) has been arrested and deported, has been excluded

and deported, or has departed the United States while an

order of exclusion or deportation is outstanding, and thereafter’’.

(b) TREATMENT OF STIPULATIONS.—The last sentence of section

276(b) (8 U.S.C. 1326(b)) is amended by inserting ‘‘(or not during)’’

after ‘‘during’’.

(c) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply to departures that occurred before, on, or after the

date of the enactment of this Act, but only with respect to entries

(and attempted entries) occurring on or after such date.

SEC. 325. CHANGE IN FILING REQUIREMENT.

Section 2424 of title 18, United States Code, is amended—

(1) in the first undesignated paragraph of subsection (a)—

(A) by striking ‘‘alien’’ each place it appears;

(B) by inserting after ‘‘individual’’ the first place it

appears the following: ‘‘, knowing or in reckless disregard

of the fact that the individual is an alien’’; and

(C) by striking ‘‘within three years after that individual

has entered the United States from any country, party

to the arrangement adopted July 25, 1902, for the suppression of the white-slave traffic’’;

(2) in the second undesignated paragraph of subsection

(a)—

(A) by striking ‘‘thirty’’ and inserting ‘‘five business’’;

and

(B) by striking ‘‘within three years after that individual

has entered the United States from any country, party

8 USC 1326 note.

8 USC 1101 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–630

to the said arrangement for the suppression of the whiteslave traffic,’’; and

(3) in the text following the third undesignated paragraph

of subsection (a), by striking ‘‘two’’ and inserting ‘‘10’’.

SEC. 326. CRIMINAL ALIEN IDENTIFICATION SYSTEM.

Subsection (a) of section 130002 of the Violent Crime Control

and Law Enforcement Act of 1994 (Public Law 103–322), as amended by section 432 of Public Law 104–132, is amended to read

as follows:

‘‘(a) OPERATION AND PURPOSE.—The Commissioner of Immigration and Naturalization shall, under the authority of section

242(a)(3)(A) of the Immigration and Nationality Act operate a criminal alien identification system. The criminal alien identification

system shall be used to assist Federal, State, and local law enforcement agencies in identifying and locating aliens who may be subject

to removal by reason of their conviction of aggravated felonies,

subject to prosecution under section 275 of such Act, not lawfully

present in the United States, or otherwise removable. Such system

shall include providing for recording of fingerprint records of aliens

who have been previously arrested and removed into appropriate

automated fingerprint identification systems.’’.

SEC. 327. APPROPRIATIONS FOR CRIMINAL ALIEN TRACKING CENTER.

Section 130002(b) of the Violent Crime Control and Law

Enforcement Act of 1994 (8 U.S.C. 1252 note) is amended—

(1) by inserting ‘‘and’’ after ‘‘1996;’’, and

(2) by striking paragraph (2) and all that follows through

the period at the end and inserting the following: ‘‘(2) $5,000,000 for each of fiscal years 1997 through 2001.’’.

SEC. 328. PROVISIONS RELATING TO STATE CRIMINAL ALIEN ASSISTANCE PROGRAM.

(a) MODIFICATION OF AUTHORITY.—

(1) IN GENERAL.—Section 241(i), as redesignated by section

306(a)(1) of this division, is amended—

(A) in paragraph (3)(A), by striking ‘‘felony and sentenced to a term of imprisonment’’ and inserting ‘‘felony

or two or more misdemeanors’’, and

(B) by adding at the end the following new paragraph:

‘‘(6) To the extent of available appropriations, funds otherwise made available under this section with respect to a State

(or political subdivision, including a municipality) for incarceration of an undocumented criminal alien may, at the discretion

of the recipient of the funds, be used for the costs of imprisonment of such alien in a State, local, or municipal prison or

jail.’’.

(2) EFFECTIVE DATE.—The amendment made by paragraph

(1) shall apply beginning with fiscal year 1997.

(b) SENSE OF THE CONGRESS WITH RESPECT TO PROGRAM.—

(1) FINDINGS.—The Congress finds as follows:

(A) Of the $130,000,000 appropriated in fiscal year

1995 for the State Criminal Alien Assistance Program,

the Department of Justice disbursed the first $43,000,000

to States on October 6, 1994, 32 days before the 1994

general election, and then failed to disburse the remaining

$87,000,000 until January 31, 1996, 123 days after the

end of fiscal year 1995.

8 USC 1231 note.

8 USC 1231.

8 USC 1252 note.
110 STAT. 3009–631 PUBLIC LAW 104–208—SEPT. 30, 1996

(B) While H.R. 2880, the continuing appropriation

measure funding certain operations of the Federal Government from January 26, 1996 to March 15, 1996, included

$66,000,000 to reimburse States for the cost of incarcerating documented illegal immigrant felons, the Department

of Justice failed to disburse any of the funds to the States

during the period of the continuing appropriation.

(2) SENSE OF THE CONGRESS.—It is the sense of the Congress that—

(A) the Department of Justice was disturbingly slow

in disbursing fiscal year 1995 funds under the State Criminal Alien Assistance Program to States after the initial

grants were released just prior to the 1994 election; and

(B) the Attorney General should make it a high priority

to expedite the disbursement of Federal funds intended

to reimburse States for the cost of incarcerating illegal

immigrants, aiming for all State Criminal Alien Assistance

Program funds to be disbursed during the fiscal year for

which they are appropriated.

SEC. 329. DEMONSTRATION PROJECT FOR IDENTIFICATION OF

ILLEGAL ALIENS IN INCARCERATION FACILITY OF ANAHEIM, CALIFORNIA.

(a) AUTHORITY.—The Attorney General shall conduct a project

demonstrating the feasibility of identifying, from among the individuals who are incarcerated in local governmental prison facilities

prior to arraignment on criminal charges, those individuals who

are aliens unlawfully present in the United States.

(b) DESCRIPTION OF PROJECT.—The project authorized by subsection (a) shall include—

(1) the detail to incarceration facilities within the city

of Anaheim, California and the county of Ventura, California,

of an employee of the Immigration and Naturalization Service

who has expertise in the identification of aliens unlawfully

in the United States, and

(2) provision of funds sufficient to provide for—

(A) access for such employee to records of the Service

necessary to identify such aliens, and

(B) in the case of an individual identified as such

an alien, pre-arraignment reporting to the court regarding

the Service’s intention to remove the alien from the United

States.

(c) TERMINATION.—The authority under this section shall cease

to be effective 6 months after the date of the enactment of this

Act.

SEC. 330. PRISONER TRANSFER TREATIES.

(a) NEGOTIATIONS WITH OTHER COUNTRIES.—(1) Congress

advises the President to begin to negotiate and renegotiate, not

later than 90 days after the date of enactment of this Act, bilateral

prisoner transfer treaties, providing for the incarceration, in the

country of the alien’s nationality, of any alien who—

(A) is a national of a country that is party to such a

treaty; and

(B) has been convicted of a criminal offense under Federal

or State law and who—

(i) is not in lawful immigration status in the United

States, or

18 USC 4100

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–632

(ii) on the basis of conviction for a criminal offense

under Federal or State law, or on any other basis, is

subject to deportation or removal under the Immigration

and Nationality Act,

for the duration of the prison term to which the alien was sentenced

for the offense referred to in subparagraph (B). Any such agreement

may provide for the release of such alien pursuant to parole procedures of that country.

(2) In entering into negotiations under paragraph (1), the President may consider providing for appropriate compensation, subject

to the availability of appropriations, in cases where the United

States is able to independently verify the adequacy of the sites

where aliens will be imprisoned and the length of time the alien

is actually incarcerated in the foreign country under such a treaty.

(b) SENSE OF CONGRESS.—It is the sense of the Congress that—

(1) the focus of negotiations for such agreements should

be—

(A) to expedite the transfer of aliens unlawfully in

the United States who are (or are about to be) incarcerated

in United States prisons,

(B) to ensure that a transferred prisoner serves the

balance of the sentence imposed by the United States

courts,

(C) to eliminate any requirement of prisoner consent

to such a transfer, and

(D) to allow the Federal Government or the States

to keep their original prison sentences in force so that

transferred prisoners who return to the United States prior

to the completion of their original United States sentences

can be returned to custody for the balance of their prisons

sentences;

(2) the Secretary of State should give priority to concluding

an agreement with any country for which the President determines that the number of aliens described in subsection (a)

who are nationals of that country in the United States represents a significant percentage of all such aliens in the United

States; and

(3) no new treaty providing for the transfer of aliens from

Federal, State, or local incarceration facilities to a foreign incarceration facility should permit the alien to refuse the transfer.

(c) PRISONER CONSENT.—Notwithstanding any other provision

of law, except as required by treaty, the transfer of an alien from

a Federal, State, or local incarceration facility under an agreement

of the type referred to in subsection (a) shall not require consent

of the alien.

(d) ANNUAL REPORT.—Not later than 90 days after the date

of the enactment of this Act, and annually thereafter, the Attorney

General shall submit a report to the Committees on the Judiciary

of the House of Representatives and of the Senate stating whether

each prisoner transfer treaty to which the United States is a party

has been effective in the preceding 12 months in bringing about

the return of deportable incarcerated aliens to the country of which

they are nationals and in ensuring that they serve the balance

of their sentences.

(e) TRAINING FOREIGN LAW ENFORCEMENT PERSONNEL.—(1)

Subject to paragraph (2), the President shall direct the Border

Patrol Academy and the Customs Service Academy to enroll for
110 STAT. 3009–633 PUBLIC LAW 104–208—SEPT. 30, 1996

training an appropriate number of foreign law enforcement personnel, and shall make appointments of foreign law enforcement

personnel to such academies, as necessary to further the following

United States law enforcement goals:

(A) Preventing of drug smuggling and other cross-border

criminal activity.

(B) Preventing illegal immigration.

(C) Preventing the illegal entry of goods into the United

States (including goods the sale of which is illegal in the United

States, the entry of which would cause a quota to be exceeded,

or the appropriate duty or tariff for which has not been paid).

(2) The appointments described in paragraph (1) shall be made

only to the extent there is capacity in such academies beyond

what is required to train United States citizens needed in the

Border Patrol and Customs Service, and only of personnel from

a country with which the prisoner transfer treaty has been stated

to be effective in the most recent report referred to in subsection

(d).

(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized

to be appropriated such sums as may be necessary to carry out

this section.

SEC. 331. PRISONER TRANSFER TREATIES STUDY.

(a) REPORT TO CONGRESS.—Not later than 180 days after the

date of the enactment of this Act, the Secretary of State and

the Attorney General shall submit to the Committees on the

Judiciary of the House of Representatives and of the Senate a

report that describes the use and effectiveness of the prisoner

transfer treaties with the three countries with the greatest number

of their nationals incarcerated in the United States in removing

from the United States such incarcerated nationals.

(b) USE OF TREATY.—The report under subsection (a) shall

include—

(1) the number of aliens convicted of a criminal offense

in the United States since November 30, 1977, who would

have been or are eligible for transfer pursuant to the treaties;

(2) the number of aliens described in paragraph (1) who

have been transferred pursuant to the treaties;

(3) the number of aliens described in paragraph (2) who

have been incarcerated in full compliance with the treaties;

(4) the number of aliens who are incarcerated in a penal

institution in the United States who are eligible for transfer

pursuant to the treaties; and

(5) the number of aliens described in paragraph (4) who

are incarcerated in Federal, State, and local penal institutions

in the United States.

(c) RECOMMENDATIONS.—The report under subsection (a) shall

include the recommendations of the Secretary of State and the

Attorney General to increase the effectiveness and use of, and

full compliance with, the treaties. In considering the recommendations under this subsection, the Secretary and the Attorney General

shall consult with such State and local officials in areas disproportionately impacted by aliens convicted of criminal offenses as the

Secretary and the Attorney General consider appropriate. Such

recommendations shall address—
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–634

(1) changes in Federal laws, regulations, and policies affecting the identification, prosecution, and deportation of aliens

who have committed criminal offenses in the United States;

(2) changes in State and local laws, regulations, and policies

affecting the identification, prosecution, and deportation of

aliens who have committed a criminal offense in the United

States;

(3) changes in the treaties that may be necessary to

increase the number of aliens convicted of criminal offenses

who may be transferred pursuant to the treaties;

(4) methods for preventing the unlawful reentry into the

United States of aliens who have been convicted of criminal

offenses in the United States and transferred pursuant to the

treaties;

(5) any recommendations by appropriate officials of the

appropriate government agencies of such countries regarding

programs to achieve the goals of, and ensure full compliance

with, the treaties;

(6) whether the recommendations under this subsection

require the renegotiation of the treaties; and

(7) the additional funds required to implement each recommendation under this subsection.

SEC. 332. ANNUAL REPORT ON CRIMINAL ALIENS.

Not later than 12 months after the date of the enactment

of this Act, and annually thereafter, the Attorney General shall

submit to the Committees on the Judiciary of the House of Representatives and of the Senate a report detailing—

(1) the number of illegal aliens incarcerated in Federal

and State prisons for having committed felonies, stating the

number incarcerated for each type of offense;

(2) the number of illegal aliens convicted of felonies in

any Federal or State court, but not sentenced to incarceration,

in the year before the report was submitted, stating the number

convicted for each type of offense;

(3) programs and plans underway in the Department of

Justice to ensure the prompt removal from the United States

of criminal aliens subject to removal; and

(4) methods for identifying and preventing the unlawful

reentry of aliens who have been convicted of criminal offenses

in the United States and removed from the United States.

SEC. 333. PENALTIES FOR CONSPIRING WITH OR ASSISTING AN ALIEN

TO COMMIT AN OFFENSE UNDER THE CONTROLLED SUBSTANCES IMPORT AND EXPORT ACT.

(a) REVIEW OF GUIDELINES.—Not later than 6 months after

the date of the enactment of this Act, the United States Sentencing

Commission shall conduct a review of the guidelines applicable

to an offender who conspires with, or aids or abets, a person

who is not a citizen or national of the United States in committing

any offense under section 1010 of the Controlled Substance Import

and Export Act (21 U.S.C. 960).

(b) REVISION OF GUIDELINES.—Following such review, pursuant

to section 994(p) of title 28, United States Code, the Commission

shall promulgate sentencing guidelines or amend existing sentencing guidelines to ensure an appropriately stringent sentence for

such offenders.

28 USC 994 note.

8 USC 1366.
110 STAT. 3009–635 PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 334. ENHANCED PENALTIES FOR FAILURE TO DEPART, ILLEGAL

REENTRY, AND PASSPORT AND VISA FRAUD.

(a) FAILING TO DEPART.—The United States Sentencing

Commission shall promptly promulgate, pursuant to section 994

of title 28, United States Code, amendments to the sentencing

guidelines to make appropriate increases in the base offense level

for offenses under section 242(e) and 276(b) of the Immigration

and Nationality Act (8 U.S.C. 1252(e) and 1326(b)) to reflect the

amendments made by section 130001 of the Violent Crime Control

and Law Enforcement Act of 1994.

(b) PASSPORT AND VISA OFFENSES.—The United States Sentencing Commission shall promptly promulgate, pursuant to section

994 of title 28, United States Code, amendments to the sentencing

guidelines to make appropriate increases in the base offense level

for offenses under chapter 75 of title 18, United States Code to

reflect the amendments made by section 130009 of the Violent

Crime Control and Law Enforcement Act of 1994.

Subtitle C—Revision of Grounds for

Exclusion and Deportation

SEC. 341. PROOF OF VACCINATION REQUIREMENT FOR IMMIGRANTS.

(a) IN GENERAL.—Section 212(a)(1)(A) (8 U.S.C. 1182(a)(1)(A))

is amended—

(1) by redesignating clauses (ii) and (iii) as clauses (iii)

and (iv), respectively, and

(2) by inserting after clause (i) the following new clause:

‘‘(ii) who seeks admission as an immigrant, or who

seeks adjustment of status to the status of an alien

lawfully admitted for permanent residence, and who

has failed to present documentation of having received

vaccination against vaccine-preventable diseases,

which shall include at least the following diseases:

mumps, measles, rubella, polio, tetanus and diphtheria

toxoids, pertussis, influenza type B and hepatitis B,

and any other vaccinations against vaccine-preventable

diseases recommended by the Advisory Committee for

Immunization Practices,’’.

(b) WAIVER.—Section 212(g) (8 U.S.C. 1182(g)) is amended by

striking ‘‘, or’’ at the end of paragraph (1) and all that follows

and inserting a semicolon and the following:

‘‘in accordance with such terms, conditions, and controls, if

any, including the giving of bond, as the Attorney General,

in the discretion of the Attorney General after consultation

with the Secretary of Health and Human Services, may by

regulation prescribe;

‘‘(2) subsection (a)(1)(A)(ii) in the case of any alien—

‘‘(A) who receives vaccination against the vaccinepreventable disease or diseases for which the alien has

failed to present documentation of previous vaccination,

‘‘(B) for whom a civil surgeon, medical officer, or panel

physician (as those terms are defined by section 34.2 of

title 42 of the Code of Federal Regulations) certifies, according to such regulations as the Secretary of Health and

28 USC 994 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–636

Human Services may prescribe, that such vaccination

would not be medically appropriate, or

‘‘(C) under such circumstances as the Attorney General

provides by regulation, with respect to whom the requirement of such a vaccination would be contrary to the alien’s

religious beliefs or moral convictions; or

‘‘(3) subsection (a)(1)(A)(iii) in the case of any alien, in

accordance with such terms, conditions, and controls, if any,

including the giving of bond, as the Attorney General, in the

discretion of the Attorney General after consultation with the

Secretary of Health and Human Services, may by regulation

prescribe.’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply with respect to applications for immigrant visas or

for adjustment of status filed after September 30, 1996.

SEC. 342. INCITEMENT OF TERRORIST ACTIVITY AND PROVISION OF

FALSE DOCUMENTATION TO TERRORISTS AS A BASIS

FOR EXCLUSION FROM THE UNITED STATES.

(a) IN GENERAL.—Section 212(a)(3)(B) (8 U.S.C. 1182(a)(3)(B))

is amended—

(1) by redesignating subclauses (III) and (IV) of clause

(i) as subclauses (IV) and (V), respectively;

(2) by inserting after subclause (II) of clause (i) the following new subclause:

‘‘(III) has, under circumstances indicating an

intention to cause death or serious bodily harm,

incited terrorist activity,’’; and

(3) in clause (iii)(III), by inserting ‘‘documentation or’’ before

‘‘identification’’;

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

(a) shall take effect on the date of the enactment of this Act

and shall apply to incitement regardless of when it occurs.

SEC. 343. CERTIFICATION REQUIREMENTS FOR FOREIGN HEALTHCARE WORKERS.

Section 212(a)(5) (8 U.S.C. 1182(a)(5)) is amended—

(1) by redesignating subparagraph (C) as subparagraph

(D), and

(2) by inserting after subparagraph (B) the following new

subparagraph:

‘‘(C) UNCERTIFIED FOREIGN HEALTH-CARE WORKERS.— Any alien who seeks to enter the United States for the

purpose of performing labor as a health-care worker, other

than a physician, is excludable unless the alien presents

to the consular officer, or, in the case of an adjustment

of status, the Attorney General, a certificate from the

Commission on Graduates of Foreign Nursing Schools, or

a certificate from an equivalent independent credentialing

organization approved by the Attorney General in consultation with the Secretary of Health and Human Services,

verifying that—

‘‘(i) the alien’s education, training, license, and

experience—

‘‘(I) meet all applicable statutory and regulatory requirements for entry into the United

States under the classification specified in the

application;

8 USC 1182 note.

8 USC 1182 note.
110 STAT. 3009–637 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(II) are comparable with that required for

an American health-care worker of the same type;

and

‘‘(III) are authentic and, in the case of a

license, unencumbered;

‘‘(ii) the alien has the level of competence in oral

and written English considered by the Secretary of

Health and Human Services, in consultation with the

Secretary of Education, to be appropriate for health

care work of the kind in which the alien will be

engaged, as shown by an appropriate score on one

or more nationally recognized, commercially available,

standardized assessments of the applicant’s ability to

speak and write; and

‘‘(iii) if a majority of States licensing the profession

in which the alien intends to work recognize a test

predicting the success on the profession’s licensing or

certification examination, the alien has passed such

a test or has passed such an examination.

For purposes of clause (ii), determination of the standardized tests required and of the minimum scores that are

appropriate are within the sole discretion of the Secretary

of Health and Human Services and are not subject to

further administrative or judicial review.’’.

SEC. 344. REMOVAL OF ALIENS FALSELY CLAIMING UNITED STATES

CITIZENSHIP.

(a) EXCLUSION OF ALIENS WHO HAVE FALSELY CLAIMED UNITED

STATES CITIZENSHIP.—Section 212(a)(6)(C) (8 U.S.C. 1182(a)(6)(C))

is amended—

(1) by redesignating clause (ii) as clause (iii), and

(2) by inserting after clause (i) the following new clause:

‘‘(ii) FALSELY CLAIMING CITIZENSHIP.—Any alien

who falsely represents, or has falsely represented, himself or herself to be a citizen of the United States

for any purpose or benefit under this Act (including

section 274A) or any other Federal or State law is

excludable.’’.

(b) DEPORTATION OF ALIENS WHO HAVE FALSELY CLAIMED

UNITED STATES CITIZENSHIP.—Section 241(a)(3) (8 U.S.C.

1251(a)(3)) is amended by adding at the end the following new

subparagraph:

‘‘(D) FALSELY CLAIMING CITIZENSHIP.—Any alien who

falsely represents, or has falsely represented, himself to

be a citizen of the United States for any purpose or benefit

under this Act (including section 274A) or any Federal

or State law is deportable.’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply to representations made on or after the date of the

enactment of this Act.

SEC. 345. WAIVER OF EXCLUSION AND DEPORTATION GROUND FOR

CERTAIN SECTION 274C VIOLATORS.

(a) EXCLUSION GROUNDS.—Section 212 (8 U.S.C. 1182) is

amended—

(1) by amending subparagraph (F) of subsection (a)(6) to

read as follows:

‘‘(F) SUBJECT OF CIVIL PENALTY.—

8 USC 1182 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–638

‘‘(i) IN GENERAL.—An alien who is the subject of

a final order for violation of section 274C is inadmissible.

‘‘(ii) WAIVER AUTHORIZED.—For provision authorizing waiver of clause (i), see subsection (d)(12).’’; and

(2) by adding at the end of subsection (d) the following

new paragraph:

‘‘(12) The Attorney General may, in the discretion of the Attorney General for humanitarian purposes or to assure family unity,

waive application of clause (i) of subsection (a)(6)(F)—

‘‘(A) in the case of an alien lawfully admitted for permanent

residence who temporarily proceeded abroad voluntarily and

not under an order of deportation or removal and who is otherwise admissible to the United States as a returning resident

under section 211(b), and

‘‘(B) in the case of an alien seeking admission or adjustment

of status under section 201(b)(2)(A) or under section 203(a),

if no previous civil money penalty was imposed against the alien

under section 274C and the offense was committed solely to assist,

aid, or support the alien’s spouse or child (and not another individual). No court shall have jurisdiction to review a decision of the

Attorney General to grant or deny a waiver under this paragraph.’’.

(b) GROUND OF DEPORTATION.—Subparagraph (C) of section

241(a)(3) (8 U.S.C. 1251(a)(3)), before redesignation by section

305(a)(2) of this division, is amended to read as follows:

‘‘(C) DOCUMENT FRAUD.—

‘‘(i) IN GENERAL.—An alien who is the subject of

a final order for violation of section 274C is deportable.

‘‘(ii) WAIVER AUTHORIZED.—The Attorney General

may waive clause (i) in the case of an alien lawfully

admitted for permanent residence if no previous civil

money penalty was imposed against the alien under

section 274C and the offense was incurred solely to

assist, aid, or support the alien’s spouse or child (and

no other individual). No court shall have jurisdiction

to review a decision of the Attorney General to grant

or deny a waiver under this clause.’’.

SEC. 346. INADMISSIBILITY OF CERTAIN STUDENT VISA ABUSERS.

(a) IN GENERAL.—Section 212(a)(6) (8 U.S.C. 1182(a)(6)) is

amended by adding at the end the following new subparagraph:

‘‘(G) STUDENT VISA ABUSERS.—An alien who obtains

the status of a nonimmigrant under section 101(a)(15)(F)(i)

and who violates a term or condition of such status under

section 214(l) is excludable until the alien has been outside

the United States for a continuous period of 5 years after

the date of the violation.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply to aliens who obtain the status of a nonimmigrant

under section 101(a)(15)(F) of the Immigration and Nationality

Act after the end of the 60-day period beginning on the date of

the enactment of this Act, including aliens whose status as such

a nonimmigrant is extended after the end of such period.

SEC. 347. REMOVAL OF ALIENS WHO HAVE UNLAWFULLY VOTED.

(a) EXCLUSION OF ALIENS WHO HAVE UNLAWFULLY VOTED.—

Section 212(a)(10) (8 U.S.C. 1182(a)(10)), as redesignated by section

8 USC 1182 note.
110 STAT. 3009–639 PUBLIC LAW 104–208—SEPT. 30, 1996

301(b) of this division, is amended by adding at the end the following

new subparagraph:

‘‘(D) UNLAWFUL VOTERS.—Any alien who has voted in

violation of any Federal, State, or local constitutional provision, statute, ordinance, or regulation is excludable.’’.

(b) DEPORTATION OF ALIENS WHO HAVE UNLAWFULLY VOTED.—

Section 241(a) (8 U.S.C. 1251(a)), before redesignation by section

305(a)(2) of this division, is amended by adding at the end the

following new paragraph:

‘‘(6) UNLAWFUL VOTERS.—Any alien who has voted in violation of any Federal, State, or local constitutional provision,

statute, ordinance, or regulation is deportable.’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply to voting occurring before, on, or after the date of

the enactment of this Act.

SEC. 348. WAIVERS FOR IMMIGRANTS CONVICTED OF CRIMES.

(a) IN GENERAL.—Section 212(h) (8 U.S.C. 1182(h)) is amended

by adding at the end the following: ‘‘No waiver shall be granted

under this subsection in the case of an alien who has previously

been admitted to the United States as an alien lawfully admitted

for permanent residence if either since the date of such admission

the alien has been convicted of an aggravated felony or the alien

has not lawfully resided continuously in the United States for

a period of not less than 7 years immediately preceding the date

of initiation of proceedings to remove the alien from the United

States. No court shall have jurisdiction to review a decision of

the Attorney General to grant or deny a waiver under this subsection.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall be effective on the date of the enactment of this Act and

shall apply in the case of any alien who is in exclusion or deportation

proceedings as of such date unless a final administrative order

in such proceedings has been entered as of such date.

SEC. 349. WAIVER OF MISREPRESENTATION GROUND OF INADMISSIBILITY FOR CERTAIN ALIEN.

Subsection (i) of section 212 (8 U.S.C. 1182) is amended to

read as follows:

‘‘(i)(1) The Attorney General may, in the discretion of the Attorney General, waive the application of clause (i) of subsection

(a)(6)(C) in the case of an immigrant who is the spouse, son,

or daughter of a United States citizen or of an alien lawfully

admitted for permanent residence if it is established to the satisfaction of the Attorney General that the refusal of admission to the

United States of such immigrant alien would result in extreme

hardship to the citizen or lawfully resident spouse or parent of

such an alien.

‘‘(2) No court shall have jurisdiction to review a decision or

action of the Attorney General regarding a waiver under paragraph

(1).’’.

SEC. 350. OFFENSES OF DOMESTIC VIOLENCE AND STALKING AS

GROUND FOR DEPORTATION.

(a) IN GENERAL.—Section 241(a)(2) (8 U.S.C. 1251(a)(2)) is

amended by adding at the end the following:

8 USC 1182 note.

8 USC 1182 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–640

‘‘(E) CRIMES OF DOMESTIC VIOLENCE, STALKING, OR VIOLATION OF PROTECTION ORDER, CRIMES AGAINST CHILDREN

AND .—

‘‘(i) DOMESTIC VIOLENCE, STALKING, AND CHILD

ABUSE.—Any alien who at any time after entry is convicted of a crime of domestic violence, a crime of stalking, or a crime of child abuse, child neglect, or child

abandonment is deportable. For purposes of this clause,

the term ‘crime of domestic violence’ means any crime

of violence (as defined in section 16 of title 18, United

States Code) against a person committed by a current

or former spouse of the person, by an individual with

whom the person shares a child in common, by an

individual who is cohabiting with or has cohabited

with the person as a spouse, by an individual similarly

situated to a spouse of the person under the domestic

or family violence laws of the jurisdiction where the

offense occurs, or by any other individual against a

person who is protected from that individual’s acts

under the domestic or family violence laws of the

United States or any State, Indian tribal government,

or unit of local government.

‘‘(ii) VIOLATORS OF PROTECTION ORDERS.—Any alien

who at any time after entry is enjoined under a protection order issued by a court and whom the court determines has engaged in conduct that violates the portion

of a protection order that involves protection against

credible threats of violence, repeated harassment, or

bodily injury to the person or persons for whom the

protection order was issued is deportable. For purposes

of this clause, the term ‘protection order’ means any

injunction issued for the purpose of preventing violent

or threatening acts of domestic violence, including temporary or final orders issued by civil or criminal courts

(other than support or child custody orders or provisions) whether obtained by filing an independent action

or as a pendente lite order in another proceeding.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply to convictions, or violations of court orders, occurring

after the date of the enactment of this Act.

SEC. 351. CLARIFICATION OF DATE AS OF WHICH RELATIONSHIP

REQUIRED FOR WAIVER FROM EXCLUSION OR DEPORTATION FOR SMUGGLING.

(a) EXCLUSION.—Section 212(d)(11) (8 U.S.C. 1182(d)(11)) is

amended by inserting ‘‘an individual who at the time of such action

was’’ after ‘‘aided only’’.

(b) DEPORTATION.—Section 241(a)(1)(E)(iii) (8 U.S.C.

1251(a)(1)(E)(iii)) is amended by inserting ‘‘an individual who at

the time of the offense was’’ after ‘‘aided only’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply to applications for waivers filed before, on, or after

the date of the enactment of this Act, but shall not apply to

such an application for which a final determination has been made

as of the date of the enactment of this Act.

8 USC 1182 note.

8 USC 1227 note.
110 STAT. 3009–641 PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 352. EXCLUSION OF FORMER CITIZENS WHO RENOUNCED CITIZENSHIP TO AVOID UNITED STATES TAXATION.

(a) IN GENERAL.—Section 212(a)(10) (8 U.S.C. 1182(a)(10)), as

redesignated by section 301(b) of this division and as amended

by section 347(a) of this division, is amended by adding at the

end the following:

‘‘(E) FORMER CITIZENS WHO RENOUNCED CITIZENSHIP

TO AVOID TAXATION.—Any alien who is a former citizen

of the United States who officially renounces United States

citizenship and who is determined by the Attorney General

to have renounced United States citizenship for the purpose

of avoiding taxation by the United States is excludable.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply to individuals who renounce United States citizenship

on and after the date of the enactment of this Act.

SEC. 353. REFERENCES TO CHANGES ELSEWHERE IN DIVISION.

(a) DEPORTATION FOR HIGH SPEED FLIGHT.—For provision making high speed flight from an immigration checkpoint subject to

deportation, see section 108(c) of this division.

(b) INADMISSIBILITY OF ALIENS PREVIOUSLY REMOVED AND

UNLAWFULLY PRESENT.—For provision making aliens previously

removed and unlawfully present in the United States inadmissible,

see section 301(b) of this division.

(c) INADMISSIBILITY OF ILLEGAL ENTRANTS.—For provision revising the ground of inadmissibility for illegal entrants and immigration violators, see section 301(c) of this division.

(d) DEPORTATION FOR VISA VIOLATORS.—For provision revising

the ground of deportation for illegal entrants, see section 301(d)

of this division.

(e) LABOR CERTIFICATIONS FOR PROFESSIONAL ATHLETES.—For

provision providing for continued validity of labor certifications

and classification petitions for professional athletes, see section

624 of this division.

Subtitle D—Changes in Removal of Alien

Terrorist Provisions

SEC. 354. TREATMENT OF CLASSIFIED INFORMATION.

(a) LIMITATION ON PROVISION OF SUMMARIES; USE OF SPECIAL

ATTORNEYS IN CHALLENGES TO CLASSIFIED INFORMATION.—

(1) NO PROVISION OF SUMMARY IN CERTAIN CASES.—Section

504(e)(3)(D) (8 U.S.C. 1534(e)(3)(D)) is amended—

(A) in clause (ii), by inserting before the period at

the end the following: ‘‘unless the judge makes the findings

under clause (iii)’’, and

(B) by adding at the end the following new clause:

‘‘(iii) FINDINGS.—The findings described in this

clause are, with respect to an alien, that—

‘‘(I) the continued presence of the alien in the

United States would likely cause serious and irreparable harm to the national security or death or

serious bodily injury to any person, and

‘‘(II) the provision of the summary would likely

cause serious and irreparable harm to the national

8 USC 1182 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–642

security or death or serious bodily injury to any

person.’’.

(2) SPECIAL CHALLENGE PROCEDURES.—Section 504(e)(3) (8

U.S.C. 1534(e)(3)) is amended by adding at the end the following

new subparagraphs:

‘‘(E) CONTINUATION OF HEARING WITHOUT SUMMARY.—

If a judge makes the findings described in subparagraph

(D)(iii)—

‘‘(i) if the alien involved is an alien lawfully admitted for permanent residence, the procedures described

in subparagraph (F) shall apply; and

‘‘(ii) in all cases the special removal hearing shall

continue, the Department of Justice shall cause to

be delivered to the alien a statement that no summary

is possible, and the classified information submitted

in camera and ex parte may be used pursuant to

this paragraph.

‘‘(F) SPECIAL PROCEDURES FOR ACCESS AND CHALLENGES

TO CLASSIFIED INFORMATION BY SPECIAL ATTORNEYS IN CASE

OF LAWFUL PERMANENT ALIENS.—

‘‘(i) IN GENERAL.—The procedures described in this

subparagraph are that the judge (under rules of the

removal court) shall designate a special attorney to

assist the alien—

‘‘(I) by reviewing in camera the classified

information on behalf of the alien, and

‘‘(II) by challenging through an in camera

proceeding the veracity of the evidence contained

in the classified information.

‘‘(ii) RESTRICTIONS ON DISCLOSURE.—A special

attorney receiving classified information under clause

(i)—

‘‘(I) shall not disclose the information to the

alien or to any other attorney representing the

alien, and

‘‘(II) who discloses such information in violation of subclause (I) shall be subject to a fine

under title 18, United States Code, imprisoned

for not less than 10 years nor more than 25 years,

or both.’’.

(3) APPEALS.—Section 505(c) (8 U.S.C. 1535(c)) is amended—

(A) in paragraph (1), by striking ‘‘The decision’’ and

inserting ‘‘Subject to paragraph (2), the decision’’;

(B) in paragraph (3)(D), by inserting before the period

at the end the following: ‘‘, except that in the case of

a review under paragraph (2) in which an alien lawfully

admitted for permanent residence was denied a written

summary of classified information under section 504(c)(3),

the Court of Appeals shall review questions of fact de

novo’’;

(C) by redesignating paragraphs (2) and (3) as paragraphs (3) and (4), respectively; and

(D) by inserting after paragraph (1) the following new

paragraph:

‘‘(2) AUTOMATIC APPEALS IN CASES OF PERMANENT RESIDENT

ALIENS IN WHICH NO SUMMARY PROVIDED.—
110 STAT. 3009–643 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(A) IN GENERAL.—Unless the alien waives the right

to a review under this paragraph, in any case involving

an alien lawfully admitted for permanent residence who

is denied a written summary of classified information under

section 504(e)(3) and with respect to which the procedures

described in section 504(e)(3)(F) apply, any order issued

by the judge shall be reviewed by the Court of Appeals

for the District of Columbia Circuit.

‘‘(B) USE OF SPECIAL ATTORNEY.—With respect to any

issue relating to classified information that arises in such

review, the alien shall be represented only by the special

attorney designated under section 504(e)(3)(F)(i) on behalf

of the alien.’’.

(4) ESTABLISHMENT OF PANEL OF SPECIAL ATTORNEYS.—

Section 502 (8 U.S.C. 1532) is amended by adding at the end

the following new subsection:

‘‘(e) ESTABLISHMENT OF PANEL OF SPECIAL ATTORNEYS.—The

removal court shall provide for the designation of a panel of attorneys each of whom—

‘‘(1) has a security clearance which affords the attorney

access to classified information, and

‘‘(2) has agreed to represent permanent resident aliens

with respect to classified information under section 504(e)(3)

in accordance with (and subject to the penalties under) this

title.’’.

(5) DEFINITION OF SPECIAL ATTORNEY.—Section 501 (8

U.S.C. 1531) is amended—

(A) by striking ‘‘and’’ at the end of paragraph (5),

(B) by striking the period at the end of paragraph

(6) and inserting ‘‘; and’’, and

(C) by adding at the end the following new paragraph:

‘‘(7) the term ‘special attorney’ means an attorney who

is on the panel established under section 502(e).’’.

(b) OTHER PROVISIONS RELATING TO CLASSIFIED INFORMATION.—

(1) INTRODUCTION OF CLASSIFIED INFORMATION.—Section

504(e) (8 U.S.C. 1534(e)) is amended—

(A) in paragraph (1)—

(i) by inserting after ‘‘(A)’’ the following: ‘‘the

Government is authorized to use in a removal proceedings the fruits of electronic surveillance and

unconsented physical searches authorized under the

Foreign Intelligence Surveillance Act of 1978 (50 U.S.C.

1801 et seq.) without regard to subsections (c), (e),

(f), (g), and (h) of section 106 of that Act and’’, and

(ii) by striking ‘‘the Foreign Intelligence Surveillance Act of 1978 (50 U.S.C. 1801 et seq.)’’ and inserting

‘‘such Act’’; and

(B) by striking the period at the end of paragraph

(3)(A) and inserting the following: ‘‘and neither the alien

nor the public shall be informed of such evidence or its

sources other than through reference to the summary provided pursuant to this paragraph. Notwithstanding the

previous sentence, the Department of Justice may, in its

discretion and, in the case of classified information, after

coordination with the originating agency, elect to introduce

such evidence in open session.’’.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–644

(2) MAINTENANCE OF CONFIDENTIALITY OF CLASSIFIED

INFORMATION IN ARGUMENTS.—Section 504(f) (8 U.S.C. 1534(f))

is amended by adding at the end the following: ‘‘The judge

may allow any part of the argument that refers to evidence

received in camera and ex parte to be heard in camera and

ex parte.’’.

(3) MAINTENANCE OF CONFIDENTIALITY OF CLASSIFIED

INFORMATION IN ORDERS.—Section 504(j) (8 U.S.C. 1534(j)) is

amended by adding at the end the following: ‘‘Any portion

of the order that would reveal the substance or source of

information received in camera and ex parte pursuant to subsection (e) shall not be made available to the alien or the

public.’’.

SEC. 355. EXCLUSION OF REPRESENTATIVES OF TERRORISTS

ORGANIZATIONS.

Section 212(a)(3)(B)(i)(IV) (8 U.S.C. 1182(a)(3)(B)(i)(VI)), as

inserted by section 411(1)(C) of Public Law 104–132, is amended

by inserting ‘‘which the alien knows or should have known is

a terrorist organization’’ after ‘‘219,’’.

SEC. 356. STANDARD FOR JUDICIAL REVIEW OF TERRORIST ORGANIZATION DESIGNATIONS.

Section 219(b)(3) (8 U.S.C. 1189(b)(3)), as added by section

302(a) of Public Law 104–132, is amended—

(1) by striking ‘‘or’’ at the end of subparagraph (B),

(2) by striking the period at the end of subparagraph (C)

and inserting a semicolon, and

(3) by adding at the end the following:

‘‘(D) lacking substantial support in the administrative

record taken as a whole or in classified information submitted to the court under paragraph (2), or

‘‘(E) not in accord with the procedures required by

law.’’.

SEC. 357. REMOVAL OF ANCILLARY RELIEF FOR VOLUNTARY DEPARTURE.

Section 504(k) (8 U.S.C. 1534(k)) is amended—

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

(5) and (6), and

(2) by inserting after paragraph (3) the following new paragraph:

‘‘(4) voluntary departure under section 244(e);’’.

SEC. 358. EFFECTIVE DATE.

The amendments made by this subtitle shall be effective as

if included in the enactment of subtitle A of title IV of the

Antiterrorism and Effective Death Penalty Act of 1996 (Public Law

104–132).

Subtitle E—Transportation of Aliens

SEC. 361. DEFINITION OF STOWAWAY.

(a) STOWAWAY DEFINED.—Section 101(a) (8 U.S.C. 1101(a)),

as amended by section 322(a)(1) of this division, is amended by

adding at the end the following new paragraph:

8 USC 1182 note.
110 STAT. 3009–645 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(49) The term ‘stowaway’ means any alien who obtains

transportation without the consent of the owner, charterer, master

or person in command of any vessel or aircraft through concealment

aboard such vessel or aircraft. A passenger who boards with a

valid ticket is not to be considered a stowaway.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall take effect on the date of the enactment of this Act.

SEC. 362. TRANSPORTATION CONTRACTS.

(a) COVERAGE OF NONCONTIGUOUS TERRITORY.—Section 238 (8

U.S.C. 1228), before redesignation as section 233 under section

308(b)(4) of this division, is amended—

(1) in the heading, by striking ‘‘CONTIGUOUS’’, and

(2) by striking ‘‘contiguous’’ each place it appears in subsections (a), (b), and (d).

(b) COVERAGE OF RAILROAD TRAIN.—Subsection (d) of such section is further amended by inserting ‘‘or railroad train’’ after ‘‘aircraft’’.

Subtitle F—Additional Provisions

SEC. 371. IMMIGRATION JUDGES AND COMPENSATION.

(a) DEFINITION OF TERM.—Paragraph (4) of section 101(b) (8

U.S.C. 1101(b)) is amended to read as follows:

‘‘(4) The term ‘immigration judge’ means an attorney whom

the Attorney General appoints as an administrative judge within

the Executive Office for Immigration Review, qualified to conduct

specified classes of proceedings, including a hearing under section

240. An immigration judge shall be subject to such supervision

and shall perform such duties as the Attorney General shall prescribe, but shall not be employed by the Immigration and Naturalization Service.’’.

(b) SUBSTITUTION FOR TERM ‘‘SPECIAL INQUIRY OFFICER’’.—The

Immigration and Nationality Act is amended by striking ‘‘a special

inquiry officer’’, ‘‘A special inquiry officer’’, ‘‘special inquiry officer’’,

and ‘‘special inquiry officers’’ and inserting ‘‘an immigration judge’’,

‘‘An immigration judge’’, ‘‘immigration judge’’, and ‘‘immigration

judges’’, respectively, each place it appears in the following sections:

(1) Section 106(a)(2) (8 U.S.C. 1105a(a)(2)), before its repeal

by section 306(c) of this division.

(2) Section 209(a)(2) (8 U.S.C. 1159(a)(2)).

(3) Section 234 (8 U.S.C. 1224), before redesignation by

section 308(b) of this division.

(4) Section 235 (8 U.S.C. 1225), before amendment by section 302(a) of this division.

(5) Section 236 (8 U.S.C. 1226), before amendment by section 303 of this division.

(6) Section 242(b) (8 U.S.C. 1252(b)), before amendment

by section 306(a)(2) of this division.

(7) Section 242B(d)(1) (8 U.S.C. 1252b(d)(1)), before repeal

by section 306(b)(6) of this division.

(8) Section 273(d) (8 U.S.C. 1323(d)), before its repeal by

section 308(e)(13) of this division.

(9) Section 292 (8 U.S.C. 1362).

8 USC 1103 note. (c) COMPENSATION FOR IMMIGRATION JUDGES.—

8 USC 1101 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–646

(1) IN GENERAL.—There shall be four levels of pay for

immigration judges, under the Immigration Judge Schedule

(designated as IJ–1, 2, 3, and 4, respectively), and each such

judge shall be paid at one of those levels, in accordance with

the provisions of this subsection.

(2) RATES OF PAY.—

(A) The rates of basic pay for the levels established

under paragraph (1) shall be as follows:

IJ–1 ..................................................... 70% of the next to highest rate of basic

pay for the Senior Executive Service

IJ–2 ..................................................... 80% of the next to highest rate of basic

pay for the Senior Executive Service

IJ–3 ..................................................... 90% of the next to highest rate of basic

pay for the Senior Executive Service

IJ–4 ..................................................... 92% of the next to highest rate of basic

pay for the Senior Executive Service.

(B) Locality pay, where applicable, shall be calculated

into the basic pay for immigration judges.

(3) APPOINTMENT.—

(A) Upon appointment, an immigration judge shall be

paid at IJ–1, and shall be advanced to IJ–2 upon completion

of 104 weeks of service, to IJ–3 upon completion of 104

weeks of service in the next lower rate, and to IJ–4 upon

completion of 52 weeks of service in the next lower rate.

(B) Notwithstanding subparagraph (A), the Attorney

General may provide for appointment of an immigration

judge at an advanced rate under such circumstances as

the Attorney General may determine appropriate.

(4) TRANSITION.—Immigration judges serving as of the

effective date shall be paid at the rate that corresponds to

the amount of time, as provided under paragraph (3)(A), that

they have served as an immigration judge, and in no case

shall be paid less after the effective date than the rate of

pay prior to the effective date.

(d) EFFECTIVE DATES.—

(1) Subsections (a) and (b) shall take effect on the date

of the enactment of this Act.

(2) Subsection (c) shall take effect 90 days after the date

of the enactment of this Act.

SEC. 372. DELEGATION OF IMMIGRATION ENFORCEMENT AUTHORITY.

Section 103(a) (8 U.S.C. 1103(a)) is amended—

(1) inserting ‘‘(1)’’ after ‘‘(a)’’,

(2) by designating each sentence (after the first sentence)

as a separate paragraph with appropriate consecutive numbering and initial indentation,

(3) by adding at the end the following new paragraph:

‘‘(8) In the event the Attorney General determines that an

actual or imminent mass influx of aliens arriving off the coast

of the United States, or near a land border, presents urgent circumstances requiring an immediate Federal response, the Attorney

General may authorize any State or local law enforcement officer,

with the consent of the head of the department, agency, or establishment under whose jurisdiction the individual is serving, to perform

or exercise any of the powers, privileges, or duties conferred or

imposed by this Act or regulations issued thereunder upon officers

or employees of the Service.’’.

8 USC 1103 note.

8 USC 1101 note.
110 STAT. 3009–647 PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 373. POWERS AND DUTIES OF THE ATTORNEY GENERAL AND

THE COMMISSIONER.

Section 103 (8 U.S.C. 1103) is amended—

(1) by adding at the end of subsection (a) the following

new paragraph:

‘‘(9) The Attorney General, in support of persons in administrative detention in non-Federal institutions, is authorized—

‘‘(A) to make payments from funds appropriated for the

administration and enforcement of the laws relating to

immigration, naturalization, and alien registration for necessary clothing, medical care, necessary guard hire, and the

housing, care, and security of persons detained by the Service

pursuant to Federal law under an agreement with a State

or political subdivision of a State; and

‘‘(B) to enter into a cooperative agreement with any State,

territory, or political subdivision thereof, for the necessary

construction, physical renovation, acquisition of equipment,

supplies or materials required to establish acceptable conditions

of confinement and detention services in any State or unit

of local government which agrees to provide guaranteed bed

space for persons detained by the Service.’’; and

(2) by adding at the end of subsection (c), as redesignated

by section 102(d)(1) of this division, the following: ‘‘The Commissioner may enter into cooperative agreements with State and

local law enforcement agencies for the purpose of assisting

in the enforcement of the immigration laws.’’.

SEC. 374. JUDICIAL DEPORTATION.

(a) IN GENERAL.—Section 242A(d) (8 U.S.C. 1252a(d)), as added

by section 224(a) of Immigration and Nationality Technical Corrections Act of 1994 and before redesignation by section 308(b)(5)

of this division, is amended—

(1) in paragraph (1), by striking ‘‘whose criminal conviction

causes such alien to be deportable under section 241(a)(2)(A)’’

and inserting ‘‘who is deportable’’;

(2) in paragraph (4), by striking ‘‘without a decision on

the merits’’; and

(3) by adding at the end the following new paragraph:

‘‘(5) STIPULATED JUDICIAL ORDER OF DEPORTATION.—The

United States Attorney, with the concurrence of the Commissioner, may, pursuant to Federal Rule of Criminal Procedure

11, enter into a plea agreement which calls for the alien,

who is deportable under this Act, to waive the right to notice

and a hearing under this section, and stipulate to the entry

of a judicial order of deportation from the United States as

a condition of the plea agreement or as a condition of probation

or supervised release, or both. The United States district court,

in both felony and misdemeanor cases, and a United States

magistrate judge in misdemeanor cases, may accept such a

stipulation and shall have jurisdiction to enter a judicial order

of deportation pursuant to the terms of such stipulation.’’.

(b) DEPORTATION AS A CONDITION OF PROBATION.—Section

3563(b) of title 18, United States Code, is amended—

(1) by striking ‘‘or’’ at the end of paragraph (20);

(2) by redesignating paragraph (21) as paragraph (22);

and
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–648

(3) by inserting after paragraph (20) the following new

paragraph:

‘‘(21) be ordered deported by a United States district court,

or United States magistrate judge, pursuant to a stipulation

entered into by the defendant and the United States under

section 242A(d)(5) of the Immigration and Nationality Act,

except that, in the absence of a stipulation, the United States

district court or a United States magistrate judge, may order

deportation as a condition of probation, if, after notice and

hearing pursuant to such section, the Attorney General demonstrates by clear and convincing evidence that the alien is

deportable; or’’.

(c) EFFECTIVE DATE.—The amendment made by subsection

(a)(2) shall be effective as if included in the enactment of section

224(a) of the Immigration and Nationality Technical Corrections

Act of 1994.

SEC. 375. LIMITATION ON ADJUSTMENT OF STATUS.

Section 245(c) (8 U.S.C. 1255(c)) is amended—

(1) by striking ‘‘or (6)’’ and inserting ‘‘(6)’’; and

(2) by inserting before the period at the end the following:

‘‘; (7) any alien who seeks adjustment of status to that of

an immigrant under section 203(b) and is not in a lawful

nonimmigrant status; or (8) any alien who was employed while

the alien was an unauthorized alien, as defined in section

274A(h)(3), or who has otherwise violated the terms of a nonimmigrant visa’’.

SEC. 376. TREATMENT OF CERTAIN FEES.

(a) INCREASE IN FEE.—Section 245(i) (8 U.S.C. 1255(i)), as added

by section 506(b) of Public Law 103–317, is amended—

(1) in paragraph (1), by striking ‘‘five times the fee required

for the processing of applications under this section’’ and inserting ‘‘$1,000’’; and

(2) by amending paragraph (3) to read as follows:

‘‘(3)(A) The portion of each application fee (not to exceed $200)

that the Attorney General determines is required to process an

application under this section and is remitted to the Attorney

General pursuant to paragraphs (1) and (2) of this subsection shall

be disposed of by the Attorney General as provided in subsections

(m), (n), and (o) of section 286.

‘‘(B) Any remaining portion of such fees remitted under such

paragraphs shall be deposited by the Attorney General into the

Immigration Detention Account established under section 286(s).’’.

(b) IMMIGRATION DETENTION ACCOUNT.—Section 286 (8 U.S.C.

1356) is amended by adding at the end the following new subsection:

‘‘(s) IMMIGRATION DETENTION ACCOUNT.—(1) There is established in the general fund of the Treasury a separate account

which shall be known as the ‘Immigration Detention Account’.

Notwithstanding any other section of this title, there shall be deposited as offsetting receipts into the Immigration Detention Account

amounts described in section 245(i)(3)(B) to remain available until

expended.

‘‘(2)(A) The Secretary of the Treasury shall refund out of the

Immigration Detention Account to any appropriation the amount

paid out of such appropriation for expenses incurred by the Attorney

General for the detention of aliens under sections 236(c) and 241(a).

8 USC 1228 note.
110 STAT. 3009–649 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(B) The amounts which are required to be refunded under

subparagraph (A) shall be refunded at least quarterly on the basis

of estimates made by the Attorney General of the expenses referred

to in subparagraph (A). Proper adjustments shall be made in the

amounts subsequently refunded under subparagraph (A) to the

extent prior estimates were in excess of, or less than, the amount

required to be refunded under subparagraph (A).

‘‘(C) The amounts required to be refunded from the Immigration

Detention Account for fiscal year 1997 and thereafter shall be

refunded in accordance with estimates made in the budget request

of the Attorney General for those fiscal years. Any proposed changes

in the amounts designated in such budget requests shall only be

made after notification to the Committees on Appropriations of

the House of Representatives and the Senate in accordance with

section 605 of Public Law 104–134.

‘‘(D) The Attorney General shall prepare and submit annually

to the Congress statements of financial condition of the Immigration

Detention Account, including beginning account balance, revenues,

withdrawals, and ending account balance and projection for the

ensuing fiscal year.’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply to applications made on or after the end of the 90-

day period beginning on the date of the enactment of this Act.

SEC. 377. LIMITATION ON LEGALIZATION LITIGATION.

(a) LIMITATION ON COURT JURISDICTION.—Section 245A(f)(4) (8

U.S.C. 1255a(f)(4)) is amended by adding at the end the following

new subparagraph:

‘‘(C) JURISDICTION OF COURTS.—Notwithstanding any

other provision of law, no court shall have jurisdiction

of any cause of action or claim by or on behalf of any

person asserting an interest under this section unless such

person in fact filed an application under this section within

the period specified by subsection (a)(1), or attempted to

file a complete application and application fee with an

authorized legalization officer of the Service but had the

application and fee refused by that officer.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall be effective as if included in the enactment of the Immigration

Reform and Control Act of 1986.

SEC. 378. RESCISSION OF LAWFUL PERMANENT RESIDENT STATUS.

(a) IN GENERAL.—Section 246(a) (8 U.S.C. 1256(a)) is amended

by adding at the end the following sentence: ‘‘Nothing in this

subsection shall require the Attorney General to rescind the alien’s

status prior to commencement of procedures to remove the alien

under section 240, and an order of removal issued by an immigration judge shall be sufficient to rescind the alien’s status.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall take effect on the title III–A effective date (as defined in

section 309(a) of this division).

SEC. 379. ADMINISTRATIVE REVIEW OF ORDERS.

(a) IN GENERAL.—Sections 274A(e)(7) and 274C(d)(4) (8 U.S.C.

1324a(e)(7), 1324c(d)(4)) are each amended—

(1) by striking ‘‘unless, within 30 days, the Attorney General modifies or vacates the decision and order’’ and inserting

‘‘unless either (A) within 30 days, an official delegated by

8 USC 1256 note.

8 USC 1255a

note.

8 USC 1255 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–650

regulation to exercise review authority over the decision and

order modifies or vacates the decision and order, or (B) within

30 days of the date of such a modification or vacation (or

within 60 days of the date of decision and order of an administrative law judge if not so modified or vacated) the decision

and order is referred to the Attorney General pursuant to

regulations’’; and

(2) by striking ‘‘a final order’’ and inserting ‘‘the final

agency decision and order’’.

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

(a) shall apply to orders issued on or after the date of the enactment

of this Act.

SEC. 380. CIVIL PENALTIES FOR FAILURE TO DEPART.

(a) IN GENERAL.—The Immigration and Nationality Act is

amended by inserting after section 274C the following new section:

‘‘CIVIL PENALTIES FOR FAILURE TO DEPART

‘‘SEC. 274D. (a) IN GENERAL.—Any alien subject to a final

order of removal who—

‘‘(1) willfully fails or refuses to—

‘‘(A) depart from the United States pursuant to the

order,

‘‘(B) make timely application in good faith for travel

or other documents necessary for departure, or

‘‘(C) present for removal at the time and place required

by the Attorney General; or

‘‘(2) conspires to or takes any action designed to prevent

or hamper the alien’s departure pursuant to the order,

shall pay a civil penalty of not more than $500 to the Commissioner

for each day the alien is in violation of this section.

‘‘(b) CONSTRUCTION.—Nothing in this section shall be construed

to diminish or qualify any penalties to which an alien may be

subject for activities proscribed by section 243(a) or any other

section of this Act.’’.

(b) CLERICAL AMENDMENT.—The table of contents is amended

by inserting after the item relating to section 274C the following

new item:

‘‘Sec. 274D. Civil penalties for failure to depart.’’.

(c) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply to actions occurring on or after the title III–A effective

date (as defined in section 309(a) of this division).

SEC. 381. CLARIFICATION OF DISTRICT COURT JURISDICTION.

(a) IN GENERAL.—Section 279 (8 U.S.C. 1329) is amended—

(1) by amending the first sentence to read as follows: ‘‘The

district courts of the United States shall have jurisdiction of

all causes, civil and criminal, brought by the United States

that arise under the provisions of this title.’’, and

(2) by adding at the end the following new sentence: ‘‘Nothing in this section shall be construed as providing jurisdiction

for suits against the United States or its agencies or officers.’’.

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

(a) shall apply to actions filed after the date of the enactment

of this Act.

8 USC 1329 note.

8 USC 1324d

note.

8 USC 1324d.

8 USC 1324a

note.
110 STAT. 3009–651 PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 382. APPLICATION OF ADDITIONAL CIVIL PENALTIES TO

ENFORCEMENT.

(a) IN GENERAL.—Subsection (b) of section 280 (8 U.S.C. 1330)

is amended to read as follows:

‘‘(b)(1) There is established in the general fund of the Treasury

a separate account which shall be known as the ‘Immigration

Enforcement Account’. Notwithstanding any other section of this

title, there shall be deposited as offsetting receipts into the Immigration Enforcement Account amounts described in paragraph (2) to

remain available until expended.

‘‘(2) The amounts described in this paragraph are the following:

‘‘(A) The increase in penalties collected resulting from the

amendments made by sections 203(b) and 543(a) of the

Immigration Act of 1990.

‘‘(B) Civil penalties collected under sections 240B(d), 274C,

274D, and 275(b).

‘‘(3)(A) The Secretary of the Treasury shall refund out of the

Immigration Enforcement Account to any appropriation the amount

paid out of such appropriation for expenses incurred by the Attorney

General for activities that enhance enforcement of provisions of

this title. Such activities include—

‘‘(i) the identification, investigation, apprehension, detention, and removal of criminal aliens;

‘‘(ii) the maintenance and updating of a system to identify

and track criminal aliens, deportable aliens, inadmissible

aliens, and aliens illegally entering the United States; and

‘‘(iii) for the repair, maintenance, or construction on the

United States border, in areas experiencing high levels of

apprehensions of illegal aliens, of structures to deter illegal

entry into the United States.

‘‘(B) The amounts which are required to be refunded under

subparagraph (A) shall be refunded at least quarterly on the basis

of estimates made by the Attorney General of the expenses referred

to in subparagraph (A). Proper adjustments shall be made in the

amounts subsequently refunded under subparagraph (A) to the

extent prior estimates were in excess of, or less than, the amount

required to be refunded under subparagraph (A).

‘‘(C) The amounts required to be refunded from the Immigration

Enforcement Account for fiscal year 1996 and thereafter shall be

refunded in accordance with estimates made in the budget request

of the Attorney General for those fiscal years. Any proposed changes

in the amounts designated in such budget requests shall only be

made after notification to the Committees on Appropriations of

the House of Representatives and the Senate in accordance with

section 605 of Public Law 104–134.

‘‘(D) The Attorney General shall prepare and submit annually

to the Congress statements of financial condition of the Immigration

Enforcement Account, including beginning account balance, revenues, withdrawals, and ending account balance and projection for

the ensuing fiscal year.’’.

(b) IMMIGRATION USER FEE ACCOUNT.—Section 286(h)(1)(B) (8

U.S.C. 1356(h)(1)(B)) is amended by striking ‘‘271’’ and inserting

‘‘243(c), 271,’’.

(c) EFFECTIVE DATE.—The amendments made by this section

shall apply to fines and penalties collected on or after the date

of the enactment of this Act.

8 USC 1330 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–652

SEC. 383. EXCLUSION OF CERTAIN ALIENS FROM FAMILY UNITY PROGRAM.

(a) IN GENERAL.—Section 301(e) of the Immigration Act of

1990 (8 U.S.C. 1255a note) is amended—

(1) by striking ‘‘or’’ at the end of paragraph (1),

(2) by striking the period at the end of paragraph (2)

and inserting ‘‘, or’’, and

(3) by adding at the end the following new paragraph:

‘‘(3) has committed an act of juvenile delinquency which

if committed by an adult would be classified as—

‘‘(A) a felony crime of violence that has an element

the use or attempted use of physical force against another

individual, or

‘‘(B) a felony offense that by its nature involves a

substantial risk that physical force against another individual may be used in the course of committing the offense.’’.

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

(a) shall apply to benefits granted or extended after the date of

the enactment of this Act.

SEC. 384. PENALTIES FOR DISCLOSURE OF INFORMATION.

(a) IN GENERAL.—Except as provided in subsection (b), in no

case may the Attorney General, or any other official or employee

of the Department of Justice (including any bureau or agency of

such Department)—

(1) make an adverse determination of admissibility or

deportability of an alien under the Immigration and Nationality

Act using information furnished solely by—

(A) a spouse or parent who has battered the alien

or subjected the alien to extreme cruelty,

(B) a member of the spouse’s or parent’s family residing

in the same household as the alien who has battered the

alien or subjected the alien to extreme cruelty when the

spouse or parent consented to or acquiesced in such battery

or cruelty,

(C) a spouse or parent who has battered the alien’s

child or subjected the alien’s child to extreme cruelty (without the active participation of the alien in the battery

or extreme cruelty), or

(D) a member of the spouse’s or parent’s family residing

in the same household as the alien who has battered the

alien’s child or subjected the alien’s child to extreme cruelty

when the spouse or parent consented to or acquiesced in

such battery or cruelty and the alien did not actively

participate in such battery or cruelty,

unless the alien has been convicted of a crime or crimes listed

in section 241(a)(2) of the Immigration and Nationality Act;

or

(2) permit use by or disclosure to anyone (other than a

sworn officer or employee of the Department, or bureau or

agency thereof, for legitimate Department, bureau, or agency

purposes) of any information which relates to an alien who

is the beneficiary of an application for relief under clause (iii)

or (iv) of section 204(a)(1)(A), clause (ii) or (iii) of section

204(a)(1)(B), section 216(c)(4)(C), or section 244(a)(3) of such

Act as an alien (or the parent of a child) who has been battered

or subjected to extreme cruelty.

8 USC 1367.

8 USC 1255a

note.
110 STAT. 3009–653 PUBLIC LAW 104–208—SEPT. 30, 1996

The limitation under paragraph (2) ends when the application for

relief is denied and all opportunities for appeal of the denial have

been exhausted.

(b) EXCEPTIONS.— (1) The Attorney General may provide, in the Attorney

General’s discretion, for the disclosure of information in the

same manner and circumstances as census information may

be disclosed by the Secretary of Commerce under section 8

of title 13, United States Code.

(2) The Attorney General may provide in the discretion

of the Attorney General for the disclosure of information to

law enforcement officials to be used solely for a legitimate

law enforcement purpose.

(3) Subsection (a) shall not be construed as preventing

disclosure of information in connection with judicial review

of a determination in a manner that protects the confidentiality

of such information.

(4) Subsection (a)(2) shall not apply if all the battered

individuals in the case are adults and they have all waived

the restrictions of such subsection.

(c) PENALTIES FOR VIOLATIONS.—Anyone who willfully uses,

publishes, or permits information to be disclosed in violation of

this section shall be subject to appropriate disciplinary action and

subject to a civil money penalty of not more than $5,000 for each

such violation.

(d) CONFORMING AMENDMENTS TO OTHER DISCLOSURE RESTRIC- TIONS.—(1) IN GENERAL.—The last sentence of section 210(b)(6)

and the second sentence of section 245A(c)(5) (8 U.S.C.

1255a(c)(5)) are each amended to read as follows: ‘‘Anyone

who uses, publishes, or permits information to be examined

in violation of this paragraph shall be subject to appropriate

disciplinary action and subject to a civil money penalty of

not more than $5,000 for each violation.’’.

(2) EFFECTIVE DATE.—The amendments made by this subsection shall apply to offenses occurring on or after the date

of the enactment of this Act.

SEC. 385. AUTHORIZATION OF ADDITIONAL FUNDS FOR REMOVAL OF

ALIENS.

In addition to the amounts otherwise authorized to be appropriated for each fiscal year beginning with fiscal year 1996, there

are authorized to be appropriated to the Attorney General

$150,000,000 for costs associated with the removal of inadmissible

or deportable aliens, including costs of detention of such aliens

pending their removal, the hiring of more investigators, and the

hiring of more detention and deportation officers.

SEC. 386. INCREASE IN INS DETENTION FACILITIES; REPORT ON

DETENTION SPACE.

(a) INCREASE IN DETENTION FACILITIES.—Subject to the availability of appropriations, the Attorney General shall provide for

an increase in the detention facilities of the Immigration and Naturalization Service to at least 9,000 beds before the end of fiscal

year 1997.

(b) REPORT ON DETENTION SPACE.—

(1) IN GENERAL.—Not later than 6 months after the date

of the enactment of this Act, and every 6 months thereafter,

8 USC 1368.

8 USC 1160 note.

8 USC 1160.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–654

the Attorney General shall submit a report to the Committees

on the Judiciary of the House of Representatives and of the

Senate estimating the amount of detention space that will

be required, during the fiscal year in which the report is submitted and the succeeding fiscal year, to detain—

(A) all aliens subject to detention under section 236(c)

of the Immigration and Nationality Act (as amended by

section 303 of this title) and section 241(a) of the Immigration and Nationality Act (as inserted by section 305(a)(3)

of this title);

(B) all excludable or deportable aliens subject to

proceedings under section 238 of the Immigration and

Nationality Act (as redesignated by section 308(b)(5) of

this title) or section 235(b)(2)(A) or 240 of the Immigration

and Nationality Act; and

(C) other excludable or deportable aliens in accordance

with the priorities established by the Attorney General.

(2) ESTIMATE OF NUMBER OF ALIENS RELEASED INTO THE

COMMUNITY.—

(A) CRIMINAL ALIENS.—

(i) IN GENERAL.—The first report submitted under

paragraph (1) shall include an estimate of the number

of criminal aliens who, in each of the 3 fiscal years

concluded prior to the date of the report—

(I) were released from detention facilities of

the Immigration and Naturalization Service

(whether operated directly by the Service or

through contract with other persons or agencies);

or

(II) were not taken into custody or detention

by the Service upon completion of their incarceration.

(ii) ALIENS CONVICTED OF AGGRAVATED FELONIES.—

The estimate under clause (i) shall estimate separately,

with respect to each year described in such clause,

the number of criminal aliens described in such clause

who were convicted of an aggravated felony.

(B) ALL EXCLUDABLE OR DEPORTABLE ALIENS.—The first

report submitted under paragraph (1) shall also estimate

the number of excludable or deportable aliens who were

released into the community due to a lack of detention

facilities in each of the 3 fiscal years concluded prior to

the date of the report notwithstanding circumstances that

the Attorney General believed justified detention (for example, a significant probability that the released alien would

not appear, as agreed, at subsequent exclusion or deportation proceedings).

(C) SUBSEQUENT REPORTS.—Each report under paragraph (1) following the first such report shall include the

estimates under subparagraphs (A) and (B), made with

respect to the 6-month period immediately preceding the

date of the submission of the report.
110 STAT. 3009–655 PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 387. PILOT PROGRAM ON USE OF CLOSED MILITARY BASES FOR

THE DETENTION OF INADMISSIBLE OR DEPORTABLE

ALIENS.

(a) ESTABLISHMENT.—The Attorney General and the Secretary

of Defense shall establish one or more pilot programs for up to

2 years each to determine the feasibility of the use of military

bases, available because of actions under a base closure law, as

detention centers by the Immigration and Naturalization Service.

In selecting real property at a military base for use as a detention

center under the pilot program, the Attorney General and the

Secretary shall consult with the redevelopment authority established for the military base and give substantial deference to the

redevelopment plan prepared for the military base.

(b) REPORT.—Not later than 30 months after the date of the

enactment of this Act, the Attorney General, together with the

Secretary of Defense, shall submit a report to the Committees

on the Judiciary of the House of Representatives and of the Senate,

and the Committees on Armed Services of the House of Representatives and of the Senate, on the feasibility of using military bases

closed under a base closure law as detention centers by the

Immigration and Naturalization Service.

(c) DEFINITION.—For purposes of this section, the term ‘‘base

closure law’’ means each of the following:

(1) The Defense Base Closure and Realignment Act of

1990 (part A of title XXIX of Public Law 101–510; 10 U.S.C.

2687 note).

(2) Title II of the Defense Authorization Amendments and

Base Closure and Realignment Act (Public Law 100–526; 10

U.S.C. 2687 note).

(3) Section 2687 of title 10, United States Code.

(4) Any other similar law enacted after the date of the

enactment of this Act.

SEC. 388. REPORT ON INTERIOR REPATRIATION PROGRAM.

Not later than 30 months after the date of the enactment

of this Act, the Attorney General, in consultation with the Secretary

of State, shall submit a report to the Committees on the Judiciary

of the House of Representatives and of the Senate on the operation

of the program of interior repatriation developed under section

437 of the Antiterrorism and Effective Death Penalty Act of 1996

(Public Law 104–132).

TITLE IV—ENFORCEMENT OF

RESTRICTIONS AGAINST EMPLOYMENT

Subtitle A—Pilot Programs for

Employment Eligibility Confirmation

SEC. 401. ESTABLISHMENT OF PROGRAMS.

(a) IN GENERAL.—The Attorney General shall conduct 3 pilot

programs of employment eligibility confirmation under this subtitle.

(b) IMPLEMENTATION DEADLINE; TERMINATION.—The Attorney

General shall implement the pilot programs in a manner that

permits persons and other entities to have elections under section

402 of this division made and in effect no later than 1 year after

8 USC 1324a

note.

8 USC 1231 note.

8 USC 1231 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–656

the date of the enactment of this Act. Unless the Congress otherwise

provides, the Attorney General shall terminate a pilot program

at the end of the 4-year period beginning on the first day the

pilot program is in effect.

(c) SCOPE OF OPERATION OF PILOT PROGRAMS.—The Attorney

General shall provide for the operation—

(1) of the basic pilot program (described in section 403(a)

of this division) in, at a minimum, 5 of the 7 States with

the highest estimated population of aliens who are not lawfully

present in the United States;

(2) of the citizen attestation pilot program (described in

section 403(b) of this division) in at least 5 States (or, if fewer,

all of the States) that meet the condition described in section

403(b)(2)(A) of this division; and

(3) of the machine-readable-document pilot program

(described in section 403(c) of this division) in at least 5 States

(or, if fewer, all of the States) that meet the condition described

in section 403(c)(2) of this division.

(d) REFERENCES IN SUBTITLE.—In this subtitle—

(1) PILOT PROGRAM REFERENCES.—The terms ‘‘program’’ or

‘‘pilot program’’ refer to any of the 3 pilot programs provided

for under this subtitle.

(2) CONFIRMATION SYSTEM.—The term ‘‘confirmation system’’ means the confirmation system established under section

404 of this division.

(3) REFERENCES TO SECTION 274A.—Any reference in this

subtitle to section 274A (or a subdivision of such section) is

deemed a reference to such section (or subdivision thereof)

of the Immigration and Nationality Act.

(4) I–9 OR SIMILAR FORM.—The term ‘‘I–9 or similar form’’

means the form used for purposes of section 274A(b)(1)(A) or

such other form as the Attorney General determines to be

appropriate.

(5) LIMITED APPLICATION TO RECRUITERS AND REFERRERS.—

Any reference to recruitment or referral (or a recruiter or

referrer) in relation to employment is deemed a reference only

to such recruitment or referral (or recruiter or referrer) that

is subject to section 274A(a)(1)(B)(ii).

(6) UNITED STATES CITIZENSHIP.—The term ‘‘United States

citizenship’’ includes United States nationality.

(7) STATE.—The term ‘‘State’’ has the meaning given such

term in section 101(a)(36) of the Immigration and Nationality

Act.

SEC. 402. VOLUNTARY ELECTION TO PARTICIPATE IN A PILOT PROGRAM.

(a) VOLUNTARY ELECTION.—Subject to subsection (c)(3)(B), any

person or other entity that conducts any hiring (or recruitment

or referral) in a State in which a pilot program is operating may

elect to participate in that pilot program. Except as specifically

provided in subsection (e), the Attorney General may not require

any person or other entity to participate in a pilot program.

(b) BENEFIT OF REBUTTABLE PRESUMPTION.—

(1) IN GENERAL.—If a person or other entity is participating

in a pilot program and obtains confirmation of identity and

employment eligibility in compliance with the terms and conditions of the program with respect to the hiring (or recruitment
110 STAT. 3009–657 PUBLIC LAW 104–208—SEPT. 30, 1996

or referral) of an individual for employment in the United

States, the person or entity has established a rebuttable

presumption that the person or entity has not violated section

274A(a)(1)(A) with respect to such hiring (or such recruitment

or referral).

(2) CONSTRUCTION.—Paragraph (1) shall not be construed

as preventing a person or other entity that has an election

in effect under subsection (a) from establishing an affirmative

defense under section 274A(a)(3) if the person or entity complies

with the requirements of section 274A(a)(1)(B) but fails to

obtain confirmation under paragraph (1).

(c) GENERAL TERMS OF ELECTIONS.—

(1) IN GENERAL.—An election under subsection (a) shall

be in such form and manner, under such terms and conditions,

and shall take effect, as the Attorney General shall specify.

The Attorney General may not impose any fee as a condition

of making an election or participating in a pilot program.

(2) SCOPE OF ELECTION.—

(A) IN GENERAL.—Subject to paragraph (3), any electing

person or other entity may provide that the election under

subsection (a) shall apply (during the period in which the

election is in effect)—

(i) to all its hiring (and all recruitment or referral)

in the State (or States) in which the pilot program

is operating, or

(ii) to its hiring (or recruitment or referral) in

one or more pilot program States or one or more places

of hiring (or recruitment or referral, as the case may

be) in the pilot program States.

(B) APPLICATION OF PROGRAMS IN NON-PILOT PROGRAM

STATES.—In addition, the Attorney General may permit

a person or entity electing—

(i) the basic pilot program (described in section

403(a) of this division) to provide that the election

applies to its hiring (or recruitment or referral) in

one or more States or places of hiring (or recruitment

or referral) in which the pilot program is not otherwise

operating, or

(ii) the citizen attestation pilot program (described

in 403(b) of this division) or the machine-readabledocument pilot program (described in section 403(c)

of this division) to provide that the election applies

to its hiring (or recruitment or referral) in one or

more States or places of hiring (or recruitment or referral) in which the pilot program is not otherwise operating but only if such States meet the requirements

of 403(b)(2)(A) and 403(c)(2) of this division, respectively.

(3) ACCEPTANCE AND REJECTION OF ELECTIONS.—

(A) IN GENERAL.—Except as provided in subparagraph

(B), the Attorney General shall accept all elections made

under subsection (a).

(B) REJECTION OF ELECTIONS.—The Attorney General

may reject an election by a person or other entity under

this section or limit its applicability to certain States or

places of hiring (or recruitment or referral) if the Attorney

General has determined that there are insufficient
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–658

resources to provide appropriate services under a pilot

program for the person’s or entity’s hiring (or recruitment

or referral) in any or all States or places of hiring.

(4) TERMINATION OF ELECTIONS.—The Attorney General

may terminate an election by a person or other entity under

this section because the person or entity has substantially

failed to comply with its obligations under the pilot program.

A person or other entity may terminate an election in such

form and manner as the Attorney General shall specify.

(d) CONSULTATION, EDUCATION, AND PUBLICITY.—

(1) CONSULTATION.—The Attorney General shall closely

consult with representatives of employers (and recruiters and

referrers) in the development and implementation of the pilot

programs, including the education of employers (and recruiters

and referrers) about such programs.

(2) PUBLICITY.—The Attorney General shall widely publicize the election process and pilot programs, including the

voluntary nature of the pilot programs and the advantages

to employers (and recruiters and referrers) of making an election under this section.

(3) ASSISTANCE THROUGH DISTRICT OFFICES.—The Attorney

General shall designate one or more individuals in each District

office of the Immigration and Naturalization Service for a Service District in which a pilot program is being implemented—

(A) to inform persons and other entities that seek

information about pilot programs of the voluntary nature

of such programs, and

(B) to assist persons and other entities in electing

and participating in any pilot programs in effect in the

District, in complying with the requirements of section

274A, and in facilitating confirmation of the identity and

employment eligibility of individuals consistent with such

section.

(e) SELECT ENTITIES REQUIRED TO PARTICIPATE IN A PILOT

PROGRAM.—

(1) FEDERAL GOVERNMENT.—

(A) EXECUTIVE DEPARTMENTS.—

(i) IN GENERAL.—Each Department of the Federal

Government shall elect to participate in a pilot program and shall comply with the terms and conditions

of such an election.

(ii) ELECTION.—Subject to clause (iii), the Secretary

of each such Department—

(I) shall elect the pilot program (or programs)

in which the Department shall participate, and

(II) may limit the election to hiring occurring

in certain States (or geographic areas) covered by

the program (or programs) and in specified divisions within the Department, so long as all hiring

by such divisions and in such locations is covered.

(iii) ROLE OF ATTORNEY GENERAL.—The Attorney

General shall assist and coordinate elections under

this subparagraph in such manner as assures that—

(I) a significant portion of the total hiring

within each Department within States covered by

a pilot program is covered under such a program,

and
110 STAT. 3009–659 PUBLIC LAW 104–208—SEPT. 30, 1996

(II) there is significant participation by the

Federal Executive branch in each of the pilot programs.

(B) LEGISLATIVE BRANCH.—Each Member of Congress,

each officer of Congress, and the head of each agency

of the legislative branch, that conducts hiring in a State

in which a pilot program is operating shall elect to participate in a pilot program, may specify which pilot program

or programs (if there is more than one) in which the Member, officer, or agency will participate, and shall comply

with the terms and conditions of such an election.

(2) APPLICATION TO CERTAIN VIOLATORS.—An order under

section 274A(e)(4) or section 274B(g) of the Immigration and

Nationality Act may require the subject of the order to participate in, and comply with the terms of, a pilot program with

respect to the subject’s hiring (or recruitment or referral) of

individuals in a State covered by such a program.

(3) CONSEQUENCE OF FAILURE TO PARTICIPATE.—If a person

or other entity is required under this subsection to participate

in a pilot program and fails to comply with the requirements

of such program with respect to an individual—

(A) such failure shall be treated as a violation of section

274A(a)(1)(B) with respect to that individual, and

(B) a rebuttable presumption is created that the person

or entity has violated section 274A(a)(1)(A).

Subparagraph (B) shall not apply in any prosecution under

section 274A(f)(1).

(f) CONSTRUCTION.—This subtitle shall not affect the authority

of the Attorney General under any other law (including section

274A(d)(4)) to conduct demonstration projects in relation to section

274A.

SEC. 403. PROCEDURES FOR PARTICIPANTS IN PILOT PROGRAMS.

(a) BASIC PILOT PROGRAM.—A person or other entity that elects

to participate in the basic pilot program described in this subsection

agrees to conform to the following procedures in the case of the

hiring (or recruitment or referral) for employment in the United

States of each individual covered by the election:

(1) PROVISION OF ADDITIONAL INFORMATION.—The person

or entity shall obtain from the individual (and the individual

shall provide) and shall record on the I–9 or similar form—

(A) the individual’s social security account number,

if the individual has been issued such a number, and

(B) if the individual does not attest to United States

citizenship under section 274A(b)(2), such identification or

authorization number established by the Immigration and

Naturalization Service for the alien as the Attorney General

shall specify,

and shall retain the original form and make it available for

inspection for the period and in the manner required of I–

9 forms under section 274A(b)(3).

(2) PRESENTATION OF DOCUMENTATION.—

(A) IN GENERAL.—The person or other entity, and the

individual whose identity and employment eligibility are

being confirmed, shall, subject to subparagraph (B), fulfill

the requirements of section 274A(b) with the following

modifications:
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–660

(i) A document referred to in section

274A(b)(1)(B)(ii) (as redesignated by section 412(a) of

this division) must be designated by the Attorney General as suitable for the purpose of identification in

a pilot program.

(ii) A document referred to in section 274A(b)(1)(D)

must contain a photograph of the individual.

(iii) The person or other entity has complied with

the requirements of section 274A(b)(1) with respect

to examination of a document if the document reasonably appears on its face to be genuine and it reasonably

appears to pertain to the individual whose identity

and work eligibility is being confirmed.

(B) LIMITATION OF REQUIREMENT TO EXAMINE DOCU- MENTATION.—If the Attorney General finds that a pilot

program would reliably determine with respect to an

individual whether—

(i) the person with the identity claimed by the

individual is authorized to work in the United States,

and

(ii) the individual is claiming the identity of

another person,

if a person or entity could fulfill the requirement to examine

documentation contained in subparagraph (A) of section

274A(b)(1) by examining a document specified in either

subparagraph (B) or (D) of such section, the Attorney General may provide that, for purposes of such requirement,

only such a document need be examined. In such case,

any reference in section 274A(b)(1)(A) to a verification that

an individual is not an unauthorized alien shall be deemed

to be a verification of the individual’s identity.

(3) SEEKING CONFIRMATION.—

(A) IN GENERAL.—The person or other entity shall

make an inquiry, as provided in section 404(a)(1) of this

division, using the confirmation system to seek confirmation of the identity and employment eligibility of an individual, by not later than the end of 3 working days (as

specified by the Attorney General) after the date of the

hiring (or recruitment or referral, as the case may be).

(B) EXTENSION OF TIME PERIOD.—If the person or other

entity in good faith attempts to make an inquiry during

such 3 working days and the confirmation system has

registered that not all inquiries were received during such

time, the person or entity can make an inquiry in the

first subsequent working day in which the confirmation

system registers that it has received all inquiries. If the

confirmation system cannot receive inquiries at all times

during a day, the person or entity merely has to assert

that the entity attempted to make the inquiry on that

day for the previous sentence to apply to such an inquiry,

and does not have to provide any additional proof concerning such inquiry.

(4) CONFIRMATION OR NONCONFIRMATION.— (A) CONFIRMATION UPON INITIAL INQUIRY.—If the person or other entity receives an appropriate confirmation

of an individual’s identity and work eligibility under the

confirmation system within the time period specified under
110 STAT. 3009–661 PUBLIC LAW 104–208—SEPT. 30, 1996

section 404(b) of this division, the person or entity shall

record on the I–9 or similar form an appropriate code

that is provided under the system and that indicates a

final confirmation of such identity and work eligibility of

the individual.

(B) NONCONFIRMATION UPON INITIAL INQUIRY AND

SECONDARY VERIFICATION.—

(i) NONCONFIRMATION.—If the person or other

entity receives a tentative nonconfirmation of an

individual’s identity or work eligibility under the confirmation system within the time period specified under

404(b) of this division, the person or entity shall so

inform the individual for whom the confirmation is

sought.

(ii) NO CONTEST.—If the individual does not contest

the nonconfirmation within the time period specified

in section 404(c) of this division, the nonconfirmation

shall be considered final. The person or entity shall

then record on the I–9 or similar form an appropriate

code which has been provided under the system to

indicate a tentative nonconfirmation.

(iii) CONTEST.—If the individual does contest the

nonconfirmation, the individual shall utilize the process for secondary verification provided under section

404(c) of this division. The nonconfirmation will remain

tentative until a final confirmation or nonconfirmation

is provided by the confirmation system within the time

period specified in such section. In no case shall an

employer terminate employment of an individual

because of a failure of the individual to have identity

and work eligibility confirmed under this section until

a nonconfirmation becomes final. Nothing in this clause

shall apply to a termination of employment for any

reason other than because of such a failure.

(iv) RECORDING OF CONCLUSION ON FORM.—If a

final confirmation or nonconfirmation is provided by

the confirmation system under section 404(c) of this

division regarding an individual, the person or entity

shall record on the I–9 or similar form an appropriate

code that is provided under the system and that

indicates a confirmation or nonconfirmation of identity

and work eligibility of the individual.

(C) CONSEQUENCES OF NONCONFIRMATION.—

(i) TERMINATION OR NOTIFICATION OF CONTINUED

EMPLOYMENT.—If the person or other entity has

received a final nonconfirmation regarding an individual under subparagraph (B), the person or entity may

terminate employment (or recruitment or referral) of

the individual. If the person or entity does not terminate employment (or recruitment or referral) of the

individual, the person or entity shall notify the Attorney General of such fact through the confirmation system or in such other manner as the Attorney General

may specify.

(ii) FAILURE TO NOTIFY.—If the person or entity

fails to provide notice with respect to an individual

as required under clause (i), the failure is deemed
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–662

to constitute a violation of section 274A(a)(1)(B) with

respect to that individual and the applicable civil monetary penalty under section 274A(e)(5) shall be (notwithstanding the amounts specified in such section) no

less than $500 and no more than $1,000 for each

individual with respect to whom such violation

occurred.

(iii) CONTINUED EMPLOYMENT AFTER FINAL NONCONFIRMATION.—If the person or other entity continues

to employ (or to recruit or refer) an individual after

receiving final nonconfirmation, a rebuttable presumption is created that the person or entity has violated

section 274A(a)(1)(A). The previous sentence shall not

apply in any prosecution under section 274A(f)(1).

(b) CITIZEN ATTESTATION PILOT PROGRAM.—

(1) IN GENERAL.—Except as provided in paragraphs (3)

through (5), the procedures applicable under the citizen attestation pilot program under this subsection shall be the same

procedures as those under the basic pilot program under subsection (a).

(2) RESTRICTIONS.—

(A) STATE DOCUMENT REQUIREMENT TO PARTICIPATE IN

PILOT PROGRAM.—The Attorney General may not provide

for the operation of the citizen attestation pilot program

in a State unless each driver’s license or similar identification document described in section 274A(b)(1)(D)(i) issued

by the State—

(i) contains a photograph of the individual

involved, and

(ii) has been determined by the Attorney General

to have security features, and to have been issued

through application and issuance procedures, which

make such document sufficiently resistant to counterfeiting, tampering, and fraudulent use that it is a

reliable means of identification for purposes of this

section.

(B) AUTHORIZATION TO LIMIT EMPLOYER PARTICIPATION.—The Attorney General may restrict the number of

persons or other entities that may elect to participate in

the citizen attestation pilot program under this subsection

as the Attorney General determines to be necessary to

produce a representative sample of employers and to reduce

the potential impact of fraud.

(3) NO CONFIRMATION REQUIRED FOR CERTAIN INDIVIDUALS

ATTESTING TO U.S. CITIZENSHIP.—In the case of a person or

other entity hiring (or recruiting or referring) an individual

under the citizen attestation pilot program, if the individual

attests to United States citizenship (under penalty of perjury

on an I–9 or similar form which form states on its face the

criminal and other penalties provided under law for a false

representation of United States citizenship)—

(A) the person or entity may fulfill the requirement

to examine documentation contained in subparagraph (A)

of section 274A(b)(1) by examining a document specified

in either subparagraph (B)(i) or (D) of such section; and

(B) the person or other entity is not required to comply

with respect to such individual with the procedures
110 STAT. 3009–663 PUBLIC LAW 104–208—SEPT. 30, 1996

described in paragraphs (3) and (4) of subsection (a), but

only if the person or entity retains the form and makes

it available for inspection in the same manner as in the

case of an I–9 form under section 274A(b)(3).

(4) WAIVER OF DOCUMENT PRESENTATION REQUIREMENT IN

CERTAIN CASES.—

(A) IN GENERAL.—In the case of a person or entity

that elects, in a manner specified by the Attorney General

consistent with subparagraph (B), to participate in the

pilot program under this paragraph, if an individual being

hired (or recruited or referred) attests (in the manner

described in paragraph (3)) to United States citizenship

and the person or entity retains the form on which the

attestation is made and makes it available for inspection

in the same manner as in the case of an I–9 form under

section 274A(b)(3), the person or entity is not required

to comply with the procedures described in section 274A(b).

(B) RESTRICTION.—The Attorney General shall restrict

the election under this paragraph to no more than 1,000

employers and, to the extent practicable, shall select among

employers seeking to make such election in a manner that

provides for such an election by a representative sample

of employers.

(5) NONREVIEWABLE DETERMINATIONS.—The determinations

of the Attorney General under paragraphs (2) and (4) are

within the discretion of the Attorney General and are not

subject to judicial or administrative review.

(c) MACHINE-READABLE-DOCUMENT PILOT PROGRAM.—

(1) IN GENERAL.—Except as provided in paragraph (3), the

procedures applicable under the machine-readable-document

pilot program under this subsection shall be the same procedures as those under the basic pilot program under subsection

(a).

(2) STATE DOCUMENT REQUIREMENT TO PARTICIPATE IN PILOT

PROGRAM.—The Attorney General may not provide for the operation of the machine-readable-document pilot program in a

State unless driver’s licenses and similar identification documents described in section 274A(b)(1)(D)(i) issued by the State

include a machine-readable social security account number.

(3) USE OF MACHINE-READABLE DOCUMENTS.—If the individual whose identity and employment eligibility must be confirmed presents to the person or entity hiring (or recruiting

or referring) the individual a license or other document

described in paragraph (2) that includes a machine-readable

social security account number, the person or entity must make

an inquiry through the confirmation system by using a

machine-readable feature of such document. If the individual

does not attest to United States citizenship under section

274A(b)(2), the individual’s identification or authorization number described in subsection (a)(1)(B) shall be provided as part

of the inquiry.

(d) PROTECTION FROM LIABILITY FOR ACTIONS TAKEN ON THE

BASIS OF INFORMATION PROVIDED BY THE CONFIRMATION SYSTEM.—

No person or entity participating in a pilot program shall be civilly

or criminally liable under any law for any action taken in good

faith reliance on information provided through the confirmation

system.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–664

SEC. 404. EMPLOYMENT ELIGIBILITY CONFIRMATION SYSTEM.

(a) IN GENERAL.—The Attorney General shall establish a pilot

program confirmation system through which the Attorney General

(or a designee of the Attorney General, which may be a nongovernmental entity)—

(1) responds to inquiries made by electing persons and

other entities (including those made by the transmittal of data

from machine-readable documents under the machine-readable

pilot program) at any time through a toll-free telephone line

or other toll-free electronic media concerning an individual’s

identity and whether the individual is authorized to be

employed, and

(2) maintains records of the inquiries that were made,

of confirmations provided (or not provided), and of the codes

provided to inquirers as evidence of their compliance with their

obligations under the pilot programs.

To the extent practicable, the Attorney General shall seek to establish such a system using one or more nongovernmental entities.

(b) INITIAL RESPONSE.—The confirmation system shall provide

confirmation or a tentative nonconfirmation of an individual’s identity and employment eligibility within 3 working days of the initial

inquiry. If providing confirmation or tentative nonconfirmation, the

confirmation system shall provide an appropriate code indicating

such confirmation or such nonconfirmation.

(c) SECONDARY VERIFICATION PROCESS IN CASE OF TENTATIVE

NONCONFIRMATION.—In cases of tentative nonconfirmation, the

Attorney General shall specify, in consultation with the Commissioner of Social Security and the Commissioner of the Immigration

and Naturalization Service, an available secondary verification process to confirm the validity of information provided and to provide

a final confirmation or nonconfirmation within 10 working days

after the date of the tentative nonconfirmation. When final confirmation or nonconfirmation is provided, the confirmation system

shall provide an appropriate code indicating such confirmation or

nonconfirmation.

(d) DESIGN AND OPERATION OF SYSTEM.—The confirmation system shall be designed and operated—

(1) to maximize its reliability and ease of use by persons

and other entities making elections under section 402(a) of

this division consistent with insulating and protecting the privacy and security of the underlying information;

(2) to respond to all inquiries made by such persons and

entities on whether individuals are authorized to be employed

and to register all times when such inquiries are not received;

(3) with appropriate administrative, technical, and physical

safeguards to prevent unauthorized disclosure of personal

information; and

(4) to have reasonable safeguards against the system’s

resulting in unlawful discriminatory practices based on national

origin or citizenship status, including—

(A) the selective or unauthorized use of the system

to verify eligibility;

(B) the use of the system prior to an offer of employment; or

(C) the exclusion of certain individuals from consideration for employment as a result of a perceived likelihood
110 STAT. 3009–665 PUBLIC LAW 104–208—SEPT. 30, 1996

that additional verification will be required, beyond what

is required for most job applicants.

(e) RESPONSIBILITIES OF THE COMMISSIONER OF SOCIAL SECU- RITY.—As part of the confirmation system, the Commissioner of

Social Security, in consultation with the entity responsible for

administration of the system, shall establish a reliable, secure

method, which, within the time periods specified under subsections

(b) and (c), compares the name and social security account number

provided in an inquiry against such information maintained by

the Commissioner in order to confirm (or not confirm) the validity

of the information provided regarding an individual whose identity

and employment eligibility must be confirmed, the correspondence

of the name and number, and whether the individual has presented

a social security account number that is not valid for employment.

The Commissioner shall not disclose or release social security

information (other than such confirmation or nonconfirmation).

(f) RESPONSIBILITIES OF THE COMMISSIONER OF THE IMMIGRATION AND NATURALIZATION SERVICE.—As part of the confirmation

system, the Commissioner of the Immigration and Naturalization

Service, in consultation with the entity responsible for administration of the system, shall establish a reliable, secure method, which,

within the time periods specified under subsections (b) and (c),

compares the name and alien identification or authorization number

described in section 403(a)(1)(B) of this division which are provided

in an inquiry against such information maintained by the Commissioner in order to confirm (or not confirm) the validity of the

information provided, the correspondence of the name and number,

and whether the alien is authorized to be employed in the United

States.

(g) UPDATING INFORMATION.—The Commissioners of Social

Security and the Immigration and Naturalization Service shall

update their information in a manner that promotes the maximum

accuracy and shall provide a process for the prompt correction

of erroneous information, including instances in which it is brought

to their attention in the secondary verification process described

in subsection (c).

(h) LIMITATION ON USE OF THE CONFIRMATION SYSTEM AND

ANY RELATED SYSTEMS.—

(1) IN GENERAL.—Notwithstanding any other provision of

law, nothing in this subtitle shall be construed to permit or

allow any department, bureau, or other agency of the United

States Government to utilize any information, data base, or

other records assembled under this subtitle for any other purpose other than as provided for under a pilot program.

(2) NO NATIONAL IDENTIFICATION CARD.—Nothing in this

subtitle shall be construed to authorize, directly or indirectly,

the issuance or use of national identification cards or the

establishment of a national identification card.

SEC. 405. REPORTS.

The Attorney General shall submit to the Committees on the

Judiciary of the House of Representatives and of the Senate reports

on the pilot programs within 3 months after the end of the third

and fourth years in which the programs are in effect. Such reports

shall—

(1) assess the degree of fraudulent attesting of United

States citizenship,
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–666

(2) include recommendations on whether or not the pilot

programs should be continued or modified, and

(3) assess the benefits of the pilot programs to employers

and the degree to which they assist in the enforcement of

section 274A.

Subtitle B—Other Provisions Relating to

Employer Sanctions

SEC. 411. LIMITING LIABILITY FOR CERTAIN TECHNICAL VIOLATIONS

OF PAPERWORK REQUIREMENTS.

(a) IN GENERAL.—Section 274A(b) (8 U.S.C. 1324a(b)) is amended by adding at the end the following new paragraph:

‘‘(6) GOOD FAITH COMPLIANCE.— ‘‘(A) IN GENERAL.—Except as provided in subparagraphs (B) and (C), a person or entity is considered to

have complied with a requirement of this subsection notwithstanding a technical or procedural failure to meet such

requirement if there was a good faith attempt to comply

with the requirement.

‘‘(B) EXCEPTION IF FAILURE TO CORRECT AFTER

NOTICE.—Subparagraph (A) shall not apply if—

‘‘(i) the Service (or another enforcement agency)

has explained to the person or entity the basis for

the failure,

‘‘(ii) the person or entity has been provided a period

of not less than 10 business days (beginning after

the date of the explanation) within which to correct

the failure, and

‘‘(iii) the person or entity has not corrected the

failure voluntarily within such period.

‘‘(C) EXCEPTION FOR PATTERN OR PRACTICE VIOLA- TORS.—Subparagraph (A) shall not apply to a person or

entity that has or is engaging in a pattern or practice

of violations of subsection (a)(1)(A) or (a)(2).’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply to failures occurring on or after the date of the enactment of this Act.

SEC. 412. PAPERWORK AND OTHER CHANGES IN THE EMPLOYER SANCTIONS PROGRAM.

(a) REDUCING THE NUMBER OF DOCUMENTS ACCEPTED FOR

EMPLOYMENT VERIFICATION.—Section 274A(b)(1) (8 U.S.C.

1324a(b)(1)) is amended—

(1) in subparagraph (B)—

(A) by striking clauses (ii) through (iv),

(B) in clause (v), by striking ‘‘or other alien registration

card, if the card’’ and inserting ‘‘, alien registration card,

or other document designated by the Attorney General,

if the document’’ and redesignating such clause as clause

(ii), and

(C) in clause (ii), as so redesignated—

(i) in subclause (I), by striking ‘‘or’’ before ‘‘such

other personal identifying information’’ and inserting

‘‘and’’,

(ii) by striking ‘‘and’’ at the end of subclause (I),

8 USC 1324a

note.
110 STAT. 3009–667 PUBLIC LAW 104–208—SEPT. 30, 1996

(iii) by striking the period at the end of subclause

(II) and inserting ‘‘, and’’, and

(iv) by adding at the end the following new subclause:

‘‘(III) contains security features to make it

resistant to tampering, counterfeiting, and fraudulent use.’’;

(2) in subparagraph (C)—

(A) by adding ‘‘or’’ at the end of clause (i),

(B) by striking clause (ii), and

(C) by redesignating clause (iii) as clause (ii); and

(3) by adding at the end the following new subparagraph:

‘‘(E) AUTHORITY TO PROHIBIT USE OF CERTAIN DOCUMENTS.—If the Attorney General finds, by regulation, that

any document described in subparagraph (B), (C), or (D)

as establishing employment authorization or identity does

not reliably establish such authorization or identity or is

being used fraudulently to an unacceptable degree, the

Attorney General may prohibit or place conditions on its

use for purposes of this subsection.’’.

(b) REDUCTION OF PAPERWORK FOR CERTAIN EMPLOYEES.—Section 274A(a) (8 U.S.C. 1324a(a)) is amended by adding at the

end the following new paragraph:

‘‘(6) TREATMENT OF DOCUMENTATION FOR CERTAIN EMPLOYEES.—

‘‘(A) IN GENERAL.—For purposes of this section, if—

‘‘(i) an individual is a member of a collectivebargaining unit and is employed, under a collective

bargaining agreement entered into between one or

more employee organizations and an association of two

or more employers, by an employer that is a member

of such association, and

‘‘(ii) within the period specified in subparagraph

(B), another employer that is a member of the association (or an agent of such association on behalf of the

employer) has complied with the requirements of subsection (b) with respect to the employment of the

individual,

the subsequent employer shall be deemed to have complied

with the requirements of subsection (b) with respect to

the hiring of the employee and shall not be liable for

civil penalties described in subsection (e)(5).

‘‘(B) PERIOD.—The period described in this subparagraph is 3 years, or, if less, the period of time that the

individual is authorized to be employed in the United

States.

‘‘(C) LIABILITY.—

‘‘(i) IN GENERAL.—If any employer that is a member

of an association hires for employment in the United

States an individual and relies upon the provisions

of subparagraph (A) to comply with the requirements

of subsection (b) and the individual is an alien not

authorized to work in the United States, then for the

purposes of paragraph (1)(A), subject to clause (ii),

the employer shall be presumed to have known at

the time of hiring or afterward that the individual
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–668

was an alien not authorized to work in the United

States.

‘‘(ii) REBUTTAL OF PRESUMPTION.—The presumption established by clause (i) may be rebutted by the

employer only through the presentation of clear and

convincing evidence that the employer did not know

(and could not reasonably have known) that the

individual at the time of hiring or afterward was an

alien not authorized to work in the United States.

‘‘(iii) EXCEPTION.—Clause (i) shall not apply in any

prosecution under subsection (f)(1).’’.

(c) ELIMINATION OF DATED PROVISIONS.—Section 274A (8 U.S.C.

1324a) is amended by striking subsections (i) through (n).

(d) CLARIFICATION OF APPLICATION TO FEDERAL GOVERNMENT.—

Section 274A(a) (8 U.S.C. 1324a(a)), as amended by subsection

(b), is amended by adding at the end the following new paragraph:

‘‘(7) APPLICATION TO FEDERAL GOVERNMENT.—For purposes

of this section, the term ‘entity’ includes an entity in any

branch of the Federal Government.’’.

(e) EFFECTIVE DATES.—

(1) The amendments made by subsection (a) shall apply

with respect to hiring (or recruitment or referral) occurring

on or after such date (not later than 12 months after the

date of the enactment of this Act) as the Attorney General

shall designate.

(2) The amendment made by subsection (b) shall apply

to individuals hired on or after 60 days after the date of

the enactment of this Act.

(3) The amendment made by subsection (c) shall take effect

on the date of the enactment of this Act.

(4) The amendment made by subsection (d) applies to hiring

occurring before, on, or after the date of the enactment of

this Act, but no penalty shall be imposed under subsection

(e) or (f) of section 274A of the Immigration and Nationality

Act for such hiring occurring before such date.

SEC. 413. REPORT ON ADDITIONAL AUTHORITY OR RESOURCES

NEEDED FOR ENFORCEMENT OF EMPLOYER SANCTIONS

PROVISIONS.

(a) IN GENERAL.—Not later than 1 year after the date of the

enactment of this Act, the Attorney General shall submit to the

Committees on the Judiciary of the House of Representatives and

of the Senate a report on any additional authority or resources

needed—

(1) by the Immigration and Naturalization Service in order

to enforce section 274A of the Immigration and Nationality

Act, or

(2) by Federal agencies in order to carry out the Executive

Order of February 13, 1996 (entitled ‘‘Economy and Efficiency

in Government Procurement Through Compliance with Certain

Immigration and Naturalization Act Provisions’’) and to expand

the restrictions in such order to cover agricultural subsidies,

grants, job training programs, and other Federally subsidized

assistance programs.

(b) REFERENCE TO INCREASED AUTHORIZATION OF APPROPRIATIONS.—For provision increasing the authorization of appropriations

8 USC 1324a

note.

8 USC 1324a

note.
110 STAT. 3009–669 PUBLIC LAW 104–208—SEPT. 30, 1996

for investigators for violations of sections 274 and 274A of the

Immigration and Nationality Act, see section 131 of this division.

SEC. 414. REPORTS ON EARNINGS OF ALIENS NOT AUTHORIZED TO

WORK.

(a) IN GENERAL.—Subsection (c) of section 290 (8 U.S.C. 1360)

is amended to read as follows:

‘‘(c)(1) Not later than 3 months after the end of each fiscal

year (beginning with fiscal year 1996), the Commissioner of Social

Security shall report to the Committees on the Judiciary of the

House of Representatives and the Senate on the aggregate quantity

of social security account numbers issued to aliens not authorized

to be employed, with respect to which, in such fiscal year, earnings

were reported to the Social Security Administration.

‘‘(2) If earnings are reported on or after January 1, 1997,

to the Social Security Administration on a social security account

number issued to an alien not authorized to work in the United

States, the Commissioner of Social Security shall provide the Attorney General with information regarding the name and address

of the alien, the name and address of the person reporting the

earnings, and the amount of the earnings. The information shall

be provided in an electronic form agreed upon by the Commissioner

and the Attorney General.’’.

(b) REPORT ON FRAUDULENT USE OF SOCIAL SECURITY ACCOUNT

NUMBERS.—The Commissioner of Social Security shall transmit

to the Attorney General, by not later than 1 year after the date

of the enactment of this Act, a report on the extent to which

social security account numbers and cards are used by aliens for

fraudulent purposes.

SEC. 415. AUTHORIZING MAINTENANCE OF CERTAIN INFORMATION

ON ALIENS.

Section 264 (8 U.S.C. 1304) is amended by adding at the end

the following new subsection:

‘‘(f) Notwithstanding any other provision of law, the Attorney

General is authorized to require any alien to provide the alien’s

social security account number for purposes of inclusion in any

record of the alien maintained by the Attorney General or the

Service.’’.

SEC. 416. SUBPOENA AUTHORITY.

Section 274A(e)(2) (8 U.S.C. 1324a(e)(2)) is amended—

(1) by striking ‘‘and’’ at the end of subparagraph (A);

(2) by striking the period at the end of subparagraph (B)

and inserting ‘‘, and’’; and

(3) by inserting after subparagraph (B) the following:

‘‘(C) immigration officers designated by the Commissioner may compel by subpoena the attendance of witnesses

and the production of evidence at any designated place

prior to the filing of a complaint in a case under paragraph

(2).’’.

8 USC 1360 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–670

Subtitle C—Unfair Immigration-Related

Employment Practices

SEC. 421. TREATMENT OF CERTAIN DOCUMENTARY PRACTICES AS

UNFAIR IMMIGRATION-RELATED EMPLOYMENT PRACTICES.

(a) IN GENERAL.—Section 274B(a)(6) (8 U.S.C. 1324b(a)(6)) is

amended—

(1) by striking ‘‘For purposes of paragraph (1), a’’ and

inserting ‘‘A’’; and

(2) by striking ‘‘relating to the hiring of individuals’’ and

inserting the following: ‘‘if made for the purpose or with the

intent of discriminating against an individual in violation of

paragraph (1)’’.

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

(a) shall apply to requests made on or after the date of the enactment of this Act.

TITLE V—RESTRICTIONS ON BENEFITS

FOR ALIENS

Subtitle A—Eligibility of Aliens for Public

Assistance and Benefits

SEC. 501. EXCEPTION TO INELIGIBILITY FOR PUBLIC BENEFITS FOR

CERTAIN BATTERED ALIENS.

Section 431 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1641) is amended by

adding at the end the following new subsection:

‘‘(c) TREATMENT OF CERTAIN BATTERED ALIENS AS QUALIFIED

ALIENS.—For purposes of this title, the term ‘qualified alien’

includes—

‘‘(1) an alien who—

‘‘(A) has been battered or subjected to extreme cruelty

in the United States by a spouse or a parent, or by a

member of the spouse or parent’s family residing in the

same household as the alien and the spouse or parent

consented to, or acquiesced in, such battery or cruelty,

but only if (in the opinion of the Attorney General, which

opinion is not subject to review by any court) there is

a substantial connection between such battery or cruelty

and the need for the benefits to be provided; and

‘‘(B) has been approved or has a petition pending which

sets forth a prima facie case for—

‘‘(i) status as a spouse or a child of a United

States citizen pursuant to clause (ii), (iii), or (iv) of

section 204(a)(1)(A) of the Immigration and Nationality

Act,

‘‘(ii) classification pursuant to clause (ii) or (iii)

of section 204(a)(1)(B) of the Act,

‘‘(iii) suspension of deportation and adjustment of

status pursuant to section 244(a)(3) of such Act, or

8 USC 1324b

note.
110 STAT. 3009–671 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(iv) status as a spouse or child of a United States

citizen pursuant to clause (i) of section 204(a)(1)(A)

of such Act, or classification pursuant to clause (i)

of section 204(a)(1)(B) of such Act; or

‘‘(2) an alien—

‘‘(A) whose child has been battered or subjected to

extreme cruelty in the United States by a spouse or a

parent of the alien (without the active participation of

the alien in the battery or cruelty), or by a member of

the spouse or parent’s family residing in the same household as the alien and the spouse or parent consented or

acquiesced to such battery or cruelty, and the alien did

not actively participate in such battery or cruelty, but

only if (in the opinion of the Attorney General, which

opinion is not subject to review by any court) there is

a substantial connection between such battery or cruelty

and the need for the benefits to be provided; and

‘‘(B) who meets the requirement of clause (ii) of

subparagraph (A).

This subsection shall not apply to an alien during any period

in which the individual responsible for such battery or cruelty

resides in the same household or family eligibility unit as the

individual subjected to such battery or cruelty.’’.

SEC. 502. PILOT PROGRAMS ON LIMITING ISSUANCE OF DRIVER’S

LICENSES TO ILLEGAL ALIENS.

(a) IN GENERAL.—Pursuant to guidelines prescribed by the

Attorney General not later than 6 months after the date of the

enactment of this Act, all States may conduct pilot programs within

their State to determine the viability, advisability, and costeffectiveness of the State’s denying driver’s licenses to aliens who

are not lawfully present in the United States. Under a pilot program

a State may deny a driver’s license to aliens who are not lawfully

present in the United States. Such program shall be conducted

in cooperation with relevant State and local authorities.

(b) REPORT.—Not later than 3 years after the date of the

enactment of this Act, the Attorney General shall submit a report

to the Judiciary Committees of the House of Representatives and

of the Senate on the results of the pilot programs conducted under

subsection (a).

SEC. 503. INELIGIBILITY OF ALIENS NOT LAWFULLY PRESENT FOR

SOCIAL SECURITY BENEFITS.

(a) IN GENERAL.—Section 202 of the Social Security Act (42

U.S.C. 402) is amended by adding at the end the following new

subsection:

‘‘Limitation on Payments to Aliens

‘‘(y) Notwithstanding any other provision of law, no monthly

benefit under this title shall be payable to any alien in the United

States for any month during which such alien is not lawfully

present in the United States as determined by the Attorney General.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply with respect to benefits for which applications are

filed on or after the first day of the first month that begins at

least 60 days after the date of the enactment of this Act.

42 USC 402 note.

8 USC 1621 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–672

SEC. 504. PROCEDURES FOR REQUIRING PROOF OF CITIZENSHIP FOR

FEDERAL PUBLIC BENEFITS.

Section 432(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1642) is amended—

(1) by inserting ‘‘(1)’’ after the dash, and

(2) by adding at the end the following:

‘‘(2) Not later than 18 months after the date of the enactment

of this Act, the Attorney General, in consultation with the Secretary

of Health and Human Services, shall also establish procedures

for a person applying for a Federal public benefit (as defined in

section 401(c)) to provide proof of citizenship in a fair and nondiscriminatory manner.’’.

SEC. 505. LIMITATION ON ELIGIBILITY FOR PREFERENTIAL TREATMENT OF ALIENS NOT LAWFULLY PRESENT ON BASIS

OF RESIDENCE FOR HIGHER EDUCATION BENEFITS.

(a) IN GENERAL.—Notwithstanding any other provision of law,

an alien who is not lawfully present in the United States shall

not be eligible on the basis of residence within a State (or a

political subdivision) for any postsecondary education benefit unless

a citizen or national of the United States is eligible for such a

benefit (in no less an amount, duration, and scope) without regard

to whether the citizen or national is such a resident.

(b) EFFECTIVE DATE.—This section shall apply to benefits provided on or after July 1, 1998.

SEC. 506. STUDY AND REPORT ON ALIEN STUDENT ELIGIBILITY FOR

POSTSECONDARY FEDERAL STUDENT FINANCIAL ASSISTANCE.

(a) GAO STUDY AND REPORT.—

(1) STUDY.—The Comptroller General shall conduct a study

to determine the extent to which aliens who are not lawfully

admitted for permanent residence are receiving postsecondary

Federal student financial assistance.

(2) REPORT.—Not later than 1 year after the date of the

enactment of this Act, the Comptroller General shall submit

a report to the appropriate committees of the Congress on

the study conducted under paragraph (1).

(b) REPORT ON COMPUTER MATCHING PROGRAM.—

(1) IN GENERAL.—Not later than one year after the date

of the enactment of this Act, the Secretary of Education and

the Commissioner of Social Security shall jointly submit to

the appropriate committees of the Congress a report on the

computer matching program of the Department of Education

under section 484(p) of the Higher Education Act of 1965.

(2) REPORT ELEMENTS.—The report under paragraph (1)

shall include the following:

(A) An assessment by the Secretary and the Commissioner of the effectiveness of the computer matching program, and a justification for such assessment.

(B) The ratio of successful matches under the program

to inaccurate matches.

(C) Such other information as the Secretary and the

Commissioner jointly consider appropriate.

(c) APPROPRIATE COMMITTEES OF THE CONGRESS.—For purposes

of this section the term ‘‘appropriate committees of the Congress’’

means the Committee on Economic and Educational Opportunities

8 USC 1611 note.

8 USC 1623.
110 STAT. 3009–673 PUBLIC LAW 104–208—SEPT. 30, 1996

and the Committee on the Judiciary of the House of Representatives

and the Committee on Labor and Human Resources and the

Committee on the Judiciary of the Senate.

SEC. 507. VERIFICATION OF IMMIGRATION STATUS FOR PURPOSES

OF SOCIAL SECURITY AND HIGHER EDUCATIONAL

ASSISTANCE.

(a) SOCIAL SECURITY ACT STATE INCOME AND ELIGIBILITY VERIFICATION SYSTEMS.—Section 1137(d)(4)(B)(i)) of the Social Security

Act (42 U.S.C. 1320b–7(d)(4)(B)(i)) is amended to read as follows:

‘‘(i) the State shall transmit to the Immigration

and Naturalization Service either photostatic or other

similar copies of such documents, or information from

such documents, as specified by the Immigration and

Naturalization Service, for official verification,’’.

(b) ELIGIBILITY FOR ASSISTANCE UNDER HIGHER EDUCATION

ACT OF 1965.—Section 484(g)(4)(B)(i) of the Higher Education Act

of 1965 (20 U.S.C. 1091(g)(4)(B)(i)) is amended to read as follows:

‘‘(i) the institution shall transmit to the Immigration and Naturalization Service either photostatic or

other similar copies of such documents, or information

from such documents, as specified by the Immigration

and Naturalization Service, for official verification,’’.

SEC. 508. NO VERIFICATION REQUIREMENT FOR NONPROFIT CHARITABLE ORGANIZATIONS.

Section 432 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1642) is amended by

adding at the end the following new subsection:

‘‘(d) NO VERIFICATION REQUIREMENT FOR NONPROFIT CHARITABLE ORGANIZATIONS.—Subject to subsection (a), a nonprofit charitable organization, in providing any Federal public benefit (as

defined in section 401(c)) or any State or local public benefit (as

defined in section 411(c)), is not required under this title to determine, verify, or otherwise require proof of eligibility of any applicant

for such benefits.’’.

SEC. 509. GAO STUDY OF PROVISION OF MEANS-TESTED PUBLIC BENEFITS TO ALIENS WHO ARE NOT QUALIFIED ALIENS ON

BEHALF OF ELIGIBLE INDIVIDUALS.

Not later than 180 days after the date of the enactment of

this Act, the Comptroller General shall submit to the Committees

on the Judiciary of the House of Representatives and of the Senate

and to the Inspector General of the Department of Justice a report

on the extent to which means-tested public benefits are being paid

or provided to aliens who are not qualified aliens (as defined in

section 431(b) of the Personal Responsibility and Work Opportunity

Reconciliation Act of 1996) in order to provide such benefits to

individuals who are United States citizens or qualified aliens (as

so defined). Such report shall address the locations in which such

benefits are provided and the incidence of fraud or misrepresentation in connection with the provision of such benefits.

SEC. 510. TRANSITION FOR ALIENS CURRENTLY RECEIVING BENEFITS

UNDER THE FOOD STAMP PROGRAM.

Effective as if included in the enactment of the Personal

Responsibility and Work Opportunity Reconciliation Act of 1996,
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–674

subclause (I) of section 402(a)(2)(D)(ii) (8 U.S.C. 1612(a)(2)(D)(ii))

is amended to read as follows:

‘‘(I) IN GENERAL.—With respect to the specified

Federal program described in paragraph (3)(B),

ineligibility under paragraph (1) shall not apply

until April 1, 1997, to an alien who received benefits under such program on the date of enactment

of this Act, unless such alien is determined to

be ineligible to receive such benefits under the

Food Stamp Act of 1977. The State agency shall

recertify the eligibility of all such aliens during

the period beginning April 1, 1997, and ending

August 22, 1997.’’.

Subtitle B—Public Charge Exclusion

SEC. 531. GROUND FOR EXCLUSION.

(a) IN GENERAL.—Paragraph (4) of section 212(a) (8 U.S.C.

1182(a)) is amended to read as follows:

‘‘(4) PUBLIC CHARGE.—

‘‘(A) IN GENERAL.—Any alien who, in the opinion of

the consular officer at the time of application for a visa,

or in the opinion of the Attorney General at the time

of application for admission or adjustment of status, is

likely at any time to become a public charge is excludable.

‘‘(B) FACTORS TO BE TAKEN INTO ACCOUNT.—(i) In determining whether an alien is excludable under this paragraph, the consular officer or the Attorney General shall

at a minimum consider the alien’s—

‘‘(I) age;

‘‘(II) health;

‘‘(III) family status;

‘‘(IV) assets, resources, and financial status; and

‘‘(V) education and skills.

‘‘(ii) In addition to the factors under clause (i), the

consular officer or the Attorney General may also consider

any affidavit of support under section 213A for purposes

of exclusion under this paragraph.

‘‘(C) FAMILY-SPONSORED IMMIGRANTS.—Any alien who

seeks admission or adjustment of status under a visa number issued under section 201(b)(2) or 203(a) is excludable

under this paragraph unless—

‘‘(i) the alien has obtained—

‘‘(I) status as a spouse or a child of a United

States citizen pursuant to clause (ii), (iii), or (iv)

of section 204(a)(1)(A), or

‘‘(II) classification pursuant to clause (ii) or

(iii) of section 204(a)(1)(B); or

‘‘(ii) the person petitioning for the alien’s admission

(including any additional sponsor required under section 213A(f)) has executed an affidavit of support

described in section 213A with respect to such alien.

‘‘(D) CERTAIN EMPLOYMENT-BASED IMMIGRANTS.—Any

alien who seeks admission or adjustment of status under

a visa number issued under section 203(b) by virtue of

a classification petition filed by a relative of the alien
110 STAT. 3009–675 PUBLIC LAW 104–208—SEPT. 30, 1996

(or by an entity in which such relative has a significant

ownership interest) is excludable under this paragraph

unless such relative has executed an affidavit of support

described in section 213A with respect to such alien.’’.

(b) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply to applications submitted on or after such date, not

earlier than 30 days and not later than 60 days after the date

the Attorney General promulgates under section 551(c)(2) of this

division a standard form for an affidavit of support, as the Attorney

General shall specify, but subparagraphs (C) and (D) of section

212(a)(4) of the Immigration and Nationality Act, as so amended,

shall not apply to applications with respect to which an official

interview with an immigration officer was conducted before such

effective date.

Subtitle C—Affidavits of Support

SEC. 551. REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF SUPPORT.

(a) IN GENERAL.—Section 213A (8 U.S.C. 1183a), as inserted

by section 423(a) of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, is amended to read as follows:

‘‘REQUIREMENTS FOR SPONSOR’S AFFIDAVIT OF SUPPORT

‘‘SEC. 213A. (a) ENFORCEABILITY.— ‘‘(1) TERMS OF AFFIDAVIT.—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 by

a sponsor of the alien as a contract—

‘‘(A) in which the sponsor agrees to provide support

to maintain the sponsored alien at an annual income that

is not less than 125 percent of the Federal poverty line

during the period in which the affidavit is enforceable;

‘‘(B) that is legally enforceable against the sponsor

by the sponsored alien, the Federal Government, any State

(or any political subdivision of such State), or by any other

entity that provides any means-tested public benefit (as

defined in subsection (e)), consistent with the provisions

of this section; and

‘‘(C) in which the sponsor agrees to submit to the

jurisdiction of any Federal or State court for the purpose

of actions brought under subsection (b)(2).

‘‘(2) PERIOD OF ENFORCEABILITY.—An affidavit of support

shall be enforceable with respect to benefits provided for an

alien before the date the alien is naturalized as a citizen

of the United States, or, if earlier, the termination date provided

under paragraph (3).

‘‘(3) TERMINATION OF PERIOD OF ENFORCEABILITY UPON

COMPLETION OF REQUIRED PERIOD OF EMPLOYMENT, ETC.— ‘‘(A) IN GENERAL.—An affidavit of support is not

enforceable after such time as the alien (i) has worked

40 qualifying quarters of coverage as defined under title

II of the Social Security Act or can be credited with such

qualifying quarters as provided under subparagraph (B),

and (ii) in the case of any such qualifying quarter creditable

for any period beginning after December 31, 1996, did

8 USC 1182 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–676

not receive any Federal means-tested public benefit (as

provided under section 403 of the Personal Responsibility

and Work Opportunity Reconciliation Act of 1996) during

any such period.

‘‘(B) QUALIFYING QUARTERS.—For purposes of this section, in determining the number of qualifying quarters

of coverage under title II of the Social Security Act an

alien shall be credited with—

‘‘(i) all of the qualifying quarters of coverage as

defined under title II of the Social Security Act worked

by a parent of such alien while the alien was under

age 18, and

‘‘(ii) all of the qualifying quarters worked by a

spouse of such alien during their marriage and the

alien remains married to such spouse or such spouse

is deceased.

No such qualifying quarter of coverage that is creditable

under title II of the Social Security Act for any period

beginning after December 31, 1996, may be credited to

an alien under clause (i) or (ii) if the parent or spouse

(as the case may be) of such alien received any Federal

means-tested public benefit (as provided under section 403

of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996) during the period for which such

qualifying quarter of coverage is so credited.

‘‘(C) PROVISION OF INFORMATION TO SAVE SYSTEM.—

The Attorney General shall ensure that appropriate

information regarding the application of this paragraph

is provided to the system for alien verification of eligibility

(SAVE) described in section 1137(d)(3) of the Social Security Act.

‘‘(b) REIMBURSEMENT OF GOVERNMENT EXPENSES.—

‘‘(1) REQUEST FOR REIMBURSEMENT.—

‘‘(A) REQUIREMENT.—Upon notification that a sponsored alien has received any means-tested public benefit,

the appropriate nongovernmental entity which provided

such benefit or the appropriate entity of the Federal

Government, a State, or any political subdivision of a State

shall request reimbursement by the sponsor in an amount

which is equal to the unreimbursed costs of such benefit.

‘‘(B) REGULATIONS.—The Attorney General, in consultation with the heads of other appropriate Federal agencies,

shall prescribe such regulations as may be necessary to

carry out subparagraph (A).

‘‘(2) ACTIONS TO COMPEL REIMBURSEMENT.—

‘‘(A) IN CASE OF NONRESPONSE.—If within 45 days after

a request for reimbursement under paragraph (1)(A), the

appropriate entity has not received a response from the

sponsor indicating a willingness to commence payment an

action may be brought against the sponsor pursuant to

the affidavit of support.

‘‘(B) IN CASE OF FAILURE TO PAY.—If the sponsor fails

to abide by the repayment terms established by the appropriate entity, the entity may bring an action against the

sponsor pursuant to the affidavit of support.

‘‘(C) LIMITATION ON ACTIONS.—No cause of action may

be brought under this paragraph later than 10 years after
110 STAT. 3009–677 PUBLIC LAW 104–208—SEPT. 30, 1996

the date on which the sponsored alien last received any

means-tested public benefit to which the affidavit of support applies.

‘‘(3) USE OF COLLECTION AGENCIES.—If the appropriate

entity under paragraph (1)(A) requests reimbursement from

the sponsor or brings an action against the sponsor pursuant

to the affidavit of support, the appropriate entity may appoint

or hire an individual or other person to act on behalf of such

entity acting under the authority of law for purposes of collecting any amounts owed.

‘‘(c) REMEDIES.—Remedies available to enforce an affidavit of

support under this section include any or all of the remedies

described in section 3201, 3203, 3204, or 3205 of title 28, United

States Code, as well as an order for specific performance and

payment of legal fees and other costs of collection, and include

corresponding remedies available under State law. A Federal agency

may seek to collect amounts owed under this section in accordance

with the provisions of subchapter II of chapter 37 of title 31,

United States Code.

‘‘(d) NOTIFICATION OF CHANGE OF ADDRESS.—

‘‘(1) GENERAL REQUIREMENT.—The sponsor shall notify the

Attorney General and the State in which the sponsored alien

is currently a resident within 30 days of any change of address

of the sponsor during the period in which an affidavit of support

is enforceable.

‘‘(2) PENALTY.—Any person subject to the requirement of

paragraph (1) who fails to satisfy such requirement shall, after

notice and opportunity to be heard, 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 means-tested public benefits (other than benefits described in section 401(b),

403(c)(2), or 411(b) of the Personal Responsibility and Work

Opportunity Reconciliation Act of 1996) not less than

$2,000 or more than $5,000.

The Attorney General shall enforce this paragraph under appropriate regulations.

‘‘(e) JURISDICTION.—An action to enforce an affidavit of support

executed under subsection (a) may be brought against the sponsor

in any appropriate court—

‘‘(1) by a sponsored alien, with respect to financial support;

or

‘‘(2) by the appropriate entity of the Federal Government,

a State or any political subdivision of a State, or by any other

nongovernmental entity under subsection (b)(2), with respect

to reimbursement.

‘‘(f) SPONSOR DEFINED.—

‘‘(1) IN GENERAL.—For purposes of this section the term

‘sponsor’ in relation to a sponsored alien means an individual

who executes an affidavit of support with respect to the sponsored alien and 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 at least 18 years of age;
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–678

‘‘(C) is domiciled in any of the several States of the

United States, the District of Columbia, or any territory

or possession of the United States;

‘‘(D) is petitioning for the admission of the alien under

section 204; and

‘‘(E) demonstrates (as provided in paragraph (6)) the

means to maintain an annual income equal to at least

125 percent of the Federal poverty line.

‘‘(2) INCOME REQUIREMENT CASE.—Such term also includes

an individual who does not meet the requirement of paragraph

(1)(E) but accepts joint and several liability together with an

individual under paragraph (5).

‘‘(3) ACTIVE DUTY ARMED SERVICES CASE.—Such term also

includes an individual who does not meet the requirement

of paragraph (1)(E) but is on active duty (other than active

duty for training) in the Armed Forces of the United States,

is petitioning for the admission of the alien under section

204 as the spouse or child of the individual, and demonstrates

(as provided in paragraph (6)) the means to maintain an annual

income equal to at least 100 percent of the Federal poverty

line.

‘‘(4) CERTAIN EMPLOYMENT-BASED IMMIGRANTS CASE.—Such

term also includes an individual—

‘‘(A) who does not meet the requirement of paragraph

(1)(D), but is the relative of the sponsored alien who filed

a classification petition for the sponsored alien as an

employment-based immigrant under section 203(b) or who

has a significant ownership interest in the entity that

filed such a petition; and

‘‘(B)(i) who demonstrates (as provided under paragraph

(6)) the means to maintain an annual income equal to

at least 125 percent of the Federal poverty line, or

‘‘(ii) does not meet the requirement of paragraph (1)(E)

but accepts joint and several liability together with an

individual under paragraph (5).

‘‘(5) NON-PETITIONING CASE.—Such term also includes an

individual who does not meet the requirement of paragraph

(1)(D) but who accepts joint and several liability with a petitioning sponsor under paragraph (2) or relative of an employmentbased immigrant under paragraph (4) and who demonstrates

(as provided under paragraph (6)) the means to maintain an

annual income equal to at least 125 percent of the Federal

poverty line.

‘‘(6) DEMONSTRATION OF MEANS TO MAINTAIN INCOME.—

‘‘(A) IN GENERAL.—

‘‘(i) METHOD OF DEMONSTRATION.—For purposes of

this section, a demonstration of the means to maintain

income shall include provision of a certified copy of

the individual’s Federal income tax return for the

individual’s 3 most recent taxable years and a written

statement, executed under oath or as permitted under

penalty of perjury under section 1746 of title 28, United

States Code, that the copies are certified copies of

such returns.

‘‘(ii) FLEXIBILITY.—For purposes of this section,

aliens may demonstrate the means to maintain income
110 STAT. 3009–679 PUBLIC LAW 104–208—SEPT. 30, 1996

through demonstration of significant assets of the sponsored alien or of the sponsor, if such assets are available for the support of the sponsored alien.

‘‘(iii) PERCENT OF POVERTY.—For purposes of this

section, a reference to an annual income equal to at

least a particular percentage of the Federal poverty

line means an annual income equal to at least such

percentage of the Federal poverty line for a family

unit of a size equal to the number of members of

the sponsor’s household (including family and non-family dependents) plus the total number of other dependents and aliens sponsored by that sponsor.

‘‘(B) LIMITATION.—The Secretary of State, or the Attorney General in the case of adjustment of status, may provide that the demonstration under subparagraph (A)

applies only to the most recent taxable year.

‘‘(h) FEDERAL POVERTY LINE DEFINED.—For purposes of this

section, the term ‘Federal poverty line’ means the level of income

equal to the official poverty line (as defined by the Director of

the Office of Management and Budget, as revised annually by

the Secretary of Health and Human Services, in accordance with

section 673(2) of the Omnibus Budget Reconciliation Act of 1981

(42 U.S.C. 9902)) that is applicable to a family of the size involved.

‘‘(i) SPONSOR’S SOCIAL SECURITY ACCOUNT NUMBER REQUIRED

TO BE PROVIDED.—(1) An affidavit of support shall include the

social security account number of each sponsor.

‘‘(2) The Attorney General shall develop an automated system

to maintain the social security account number data provided under

paragraph (1).

‘‘(3) The Attorney General shall submit an annual report to

the Committees on the Judiciary of the House of Representatives

and the Senate setting forth—

‘‘(A) for the most recent fiscal year for which data are

available the number of sponsors under this section and the

number of sponsors in compliance with the financial obligations

of this section; and

‘‘(B) a comparison of such numbers with the numbers of

such sponsors for the preceding fiscal year.’’.

(b) CONFORMING AMENDMENTS.—

(1) Section 421(a)(1) and section 422(a)(1) of the Personal

Responsibility and Work Opportunity Reconciliation Act of 1996

(8 U.S.C. 1631(a)(1), 1632(a)(1)) are each amended by inserting

‘‘and as amended by section 551(a) of the Illegal Immigration

Reform and Immigrant Responsibility Act of 1996’’ after ‘‘section

423’’.

(2) Section 423 of such Act (8 U.S.C. 1138a note) is amended

by striking subsection (c).

(c) EFFECTIVE DATE; PROMULGATION OF FORM.—

(1) IN GENERAL.—The amendments made by 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 paragraph (2).

(2) PROMULGATION OF FORM.—Not later than 90 days after

the date of the enactment of this Act, the Attorney General,

in consultation with the heads of other appropriate agencies,

8 USC 1183a

note.

8 USC 1183a

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–680

shall promulgate a standard form for an affidavit of support

consistent with the provisions of section 213A of the Immigration and Nationality Act, as amended by subsection (a).

SEC. 552. INDIGENCE AND BATTERED SPOUSE AND CHILD EXCEPTIONS

TO FEDERAL ATTRIBUTION OF INCOME RULE.

Section 421 of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 (8 U.S.C. 1631) is amended by

adding at the end the following new subsection:

‘‘(e) INDIGENCE EXCEPTION.—

‘‘(1) IN GENERAL.—For an alien for whom an affidavit of

support under section 213A of the Immigration and Nationality

Act has been executed, if a determination described in paragraph (2) is made, the amount of income and resources of

the sponsor or the sponsor’s spouse which shall be attributed

to the sponsored alien shall not exceed the amount actually

provided for a period beginning on the date of such determination and ending 12 months after such date.

‘‘(2) DETERMINATION DESCRIBED.—A determination

described in this paragraph is a determination by an agency

that a sponsored alien would, in the absence of the assistance

provided by the agency, be unable to obtain food and shelter,

taking into account the alien’s own income, plus any cash,

food, housing, or other assistance provided by other individuals,

including the sponsor. The agency shall notify the Attorney

General of each such determination, including the names of

the sponsor and the sponsored alien involved.

‘‘(f) SPECIAL RULE FOR BATTERED SPOUSE AND CHILD.—

‘‘(1) IN GENERAL.—Subject to paragraph (2) and notwithstanding any other provision of this section, subsection (a)

shall not apply to benefits—

‘‘(A) during a 12 month period if the alien demonstrates

that (i) the alien has been battered or subjected to extreme

cruelty in the United States by a spouse or a parent,

or by a member of the spouse or parent’s family residing

in the same household as the alien and the spouse or

parent consented to or acquiesced to such battery or cruelty,

or (ii) the alien’s child has been battered or subjected

to extreme cruelty in the United States by the spouse

or parent of the alien (without the active participation

of the alien in the battery or cruelty), or by a member

of the spouse’s or parent’s family residing in the same

household as the alien when the spouse or parent consented

or acquiesced to and the alien did not actively participate

in such battery or cruelty, and the battery or cruelty

described in clause (i) or (ii) (in the opinion of the agency

providing such public benefits, which opinion is not subject

to review by any court) has a substantial connection to

the need for the public benefits applied for; and

‘‘(B) after a 12 month period (regarding the batterer’s

income and resources only) if the alien demonstrates that

such battery or cruelty under subparagraph (A) has been

recognized in an order of a judge or administrative law

judge or a prior determination of the Immigration and

Naturalization Service, and that such battery or cruelty

(in the opinion of the agency providing such public benefits,
110 STAT. 3009–681 PUBLIC LAW 104–208—SEPT. 30, 1996

which opinion is not subject to review by any court) has

a substantial connection to the need for the benefits.

‘‘(2) LIMITATION.—The exception under paragraph (1) shall

not apply to benefits for an alien during any period in which

the individual responsible for such battery or cruelty resides

in the same household or family eligibility unit as the individual

who was subjected to such battery or cruelty.’’.

SEC. 553. AUTHORITY OF STATES AND POLITICAL SUBDIVISIONS OF

STATES TO LIMIT ASSISTANCE TO ALIENS AND TO

DISTINGUISH AMONG CLASSES OF ALIENS IN PROVIDING

GENERAL CASH PUBLIC ASSISTANCE.

(a) IN GENERAL.—Subject to subsection (b) and notwithstanding

any other provision of law, a State or political subdivision of a

State is authorized to prohibit or otherwise limit or restrict the

eligibility of aliens or classes of aliens for programs of general

cash public assistance furnished under the law of the State or

a political subdivision of a State.

(b) LIMITATION.—The authority provided for under subsection

(a) may be exercised only to the extent that any prohibitions,

limitations, or restrictions imposed by a State or political subdivision of a State are not more restrictive than the prohibitions,

limitations, or restrictions imposed under comparable Federal programs. For purposes of this section, attribution to an alien of

a sponsor’s income and resources (as described in section 421 of

the Personal Responsibility and Work Opportunity Reconciliation

Act of 1996 (8 U.S.C. 1631)) for purposes of determining eligibility

for, and the amount of, benefits shall be considered less restrictive

than a prohibition of eligibility for such benefits.

Subtitle D—Miscellaneous Provisions

SEC. 561. INCREASED MAXIMUM CRIMINAL PENALTIES FOR FORGING

OR COUNTERFEITING SEAL OF A FEDERAL DEPARTMENT

OR AGENCY TO FACILITATE BENEFIT FRAUD BY AN

UNLAWFUL ALIEN.

Section 506 of title 18, United States Code, is amended to

read as follows:

‘‘§ 506. Seals of departments or agencies

‘‘(a) Whoever—

‘‘(1) falsely makes, forges, counterfeits, mutilates, or alters

the seal of any department or agency of the United States,

or any facsimile thereof;

‘‘(2) knowingly uses, affixes, or impresses any such fraudulently made, forged, counterfeited, mutilated, or altered seal

or facsimile thereof to or upon any certificate, instrument,

commission, document, or paper of any description; or

‘‘(3) with fraudulent intent, possesses, sells, offers for sale,

furnishes, offers to furnish, gives away, offers to give away,

transports, offers to transport, imports, or offers to import

any such seal or facsimile thereof, knowing the same to have

been so falsely made, forged, counterfeited, mutilated, or

altered,

shall be fined under this title, or imprisoned not more than 5

years, or both.

8 USC 1624.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–682

‘‘(b) Notwithstanding subsection (a) or any other provision of

law, if a forged, counterfeited, mutilated, or altered seal of a department or agency of the United States, or any facsimile thereof,

is—

‘‘(1) so forged, counterfeited, mutilated, or altered;

‘‘(2) used, affixed, or impressed to or upon any certificate,

instrument, commission, document, or paper of any description;

or

‘‘(3) with fraudulent intent, possessed, sold, offered for sale,

furnished, offered to furnish, given away, offered to give away,

transported, offered to transport, imported, or offered to import,

with the intent or effect of facilitating an alien’s application for,

or receipt of, a Federal benefit to which the alien is not entitled,

the penalties which may be imposed for each offense under subsection (a) shall be two times the maximum fine, and 3 times

the maximum term of imprisonment, or both, that would otherwise

be imposed for an offense under subsection (a).

‘‘(c) For purposes of this section—

‘‘(1) the term ‘Federal benefit’ means—

‘‘(A) the issuance of any grant, contract, loan, professional license, or commercial license provided by any agency

of the United States or by appropriated funds of the United

States; and

‘‘(B) any retirement, welfare, Social Security, health

(including treatment of an emergency medical condition

in accordance with section 1903(v) of the Social Security

Act (19 U.S.C. 1396b(v))), disability, veterans, public housing, education, food stamps, or unemployment benefit, or

any similar benefit for which payments or assistance are

provided by an agency of the United States or by appropriated funds of the United States; and

‘‘(2) each instance of forgery, counterfeiting, mutilation,

or alteration shall constitute a separate offense under this

section.’’.

SEC. 562. TREATMENT OF EXPENSES SUBJECT TO EMERGENCY MEDICAL SERVICES EXCEPTION.

(a) IN GENERAL.—Subject to such amounts as are provided

in advance in appropriation Acts, each State or political subdivision

of a State that provides medical assistance for care and treatment

of an emergency medical condition (as defined in subsection (d))

through a public hospital or other public facility (including a nonprofit hospital that is eligible for an additional payment adjustment

under section 1886 of the Social Security Act) or through contract

with another hospital or facility to an individual who is an alien

not lawfully present in the United States is eligible for payment

from the Federal Government of its costs of providing such services,

but only to the extent that such costs are not otherwise reimbursed

through any other Federal program and cannot be recovered from

the alien or another person.

(b) CONFIRMATION OF IMMIGRATION STATUS REQUIRED.—No payment shall be made under this section with respect to services

furnished to an individual unless the immigration status of the

individual has been verified through appropriate procedures established by the Secretary of Health and Human Services and the

Attorney General.

8 USC 1369.
110 STAT. 3009–683 PUBLIC LAW 104–208—SEPT. 30, 1996

(c) ADMINISTRATION.—This section shall be administered by

the Attorney General, in consultation with the Secretary of Health

and Human Services.

(d) EMERGENCY MEDICAL CONDITION DEFINED.—For purposes

of this section, the term ‘‘emergency medical condition’’ means a

medical condition (including emergency labor and delivery) manifesting itself by acute symptoms of sufficient severity (including

severe pain) such that the absence of immediate medical attention

could reasonably be expected to result in—

(1) placing the patient’s health in serious jeopardy,

(2) serious impairment to bodily functions, or

(3) serious dysfunction of any bodily organ or part.

(e) EFFECTIVE DATE.—Subsection (a) shall apply to medical

assistance for care and treatment of an emergency medical condition

furnished on or after January 1, 1997.

SEC. 563. REIMBURSEMENT OF STATES AND LOCALITIES FOR EMERGENCY AMBULANCE SERVICES.

Subject to the availability of appropriations, the Attorney General shall fully reimburse States and political subdivisions of States

for costs incurred by such a State or subdivision for emergency

ambulance services provided to any alien who—

(1) is injured while crossing a land or sea border of the

United States without inspection or at any time or place other

than as designated by the Attorney General; and

(2) is under the custody of the State or subdivision pursuant

to a transfer, request, or other action by a Federal authority.

SEC. 564. PILOT PROGRAMS TO REQUIRE BONDING.

(a) IN GENERAL.—

(1) The Attorney General of the United States shall establish a pilot program in 5 district offices of the Immigration

and Naturalization Service to require aliens to post a bond

in addition to the affidavit requirements under section 213A

of the Immigration and Nationality Act and the deeming

requirements under section 421 of the Personal Responsibility

and Work Opportunity Reconciliation Act of 1996 (8 U.S.C.

1631). Any pilot program established pursuant to this subsection shall require an alien to post a bond in an amount

sufficient to cover the cost of benefits described in section

213A(d)(2)(B) of the Immigration and Nationality Act (as

amended by section 551(a) of this division) for the alien and

the alien’s dependents and shall remain in effect until the

departure, naturalization, or death of the alien.

(2) Suit on any such bonds may be brought under the

terms and conditions set forth in section 213A of the Immigration and Nationality Act.

(b) REGULATIONS.—Not later than 180 days after the date of

the enactment of this Act, the Attorney General shall issue regulations for establishing the pilot programs, including—

(1) criteria and procedures for—

(A) certifying bonding companies for participation in

the program, and

(B) debarment of any such company that fails to pay

a bond, and

(2) criteria for setting the amount of the bond to assure

that the bond is in an amount that is not less than the cost

8 USC 1183a

note.

8 USC 1370.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–684

of providing benefits under the programs described in subsection (a)(1) for the alien and the alien’s dependents for 6

months.

(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized

to be appropriated such sums as may be necessary to carry out

this section.

(d) ANNUAL REPORTING REQUIREMENT.—Beginning 9 months

after the date of implementation of the pilot program, the Attorney

General shall submit annually to the Committees on the Judiciary

of the House of Representatives and the Senate a report on the

effectiveness of the program. The Attorney General shall submit

a final evaluation of the program not later than 1 year after termination.

(e) SUNSET.—The pilot program under this section shall terminate after 3 years of operation.

(f) BONDS IN ADDITION TO SPONSORSHIP AND DEEMING REQUIRE- MENTS.—Section 213 (8 U.S.C. 1183) is amended by inserting ‘‘(subject to the affidavit of support requirement and attribution of sponsor’s income and resources under section 213A)’’ after ‘‘in the discretion of the Attorney General’’.

SEC. 565. REPORTS.

Not later than 180 days after the end of each fiscal year,

the Attorney General shall submit a report to the Inspector General

of the Department of Justice and the Committees on the Judiciary

of the House of Representatives and of the Senate describing the

following:

(1) PUBLIC CHARGE DEPORTATIONS.—The number of aliens

deported on public charge grounds under section 241(a)(5) of

the Immigration and Nationality Act during the previous fiscal

year.

(2) INDIGENT SPONSORS.—The number of determinations

made under section 421(e) of the Personal Responsibility and

Work Opportunity Reconciliation Act of 1996 (as added by

section 552 of this division) during the previous fiscal year.

(3) REIMBURSEMENT ACTIONS.—The number of actions

brought, and the amount of each action, for reimbursement

under section 213A of the Immigration and Nationality Act

(including private collections) for the costs of providing public

benefits.

Subtitle E—Housing Assistance

SEC. 571. SHORT TITLE.

This subtitle may be cited as the ‘‘Use of Assisted Housing

by Aliens Act of 1996’’.

SEC. 572. PRORATING OF FINANCIAL ASSISTANCE.

Section 214(b) of the Housing and Community Development

Act of 1980 (42 U.S.C. 1436a(b)) is amended—

(1) by inserting ‘‘(1)’’ after ‘‘(b)’’; and

(2) by adding at the end the following new paragraph:

‘‘(2) If the eligibility for financial assistance of at least one

member of a family has been affirmatively established under the

program of financial assistance and under this section, and the

ineligibility of one or more family members has not been affirmatively established under this section, any financial assistance made

Use of Assisted

Housing by

Aliens Act of

1996.

42 USC 1436a

note.

8 USC 1371.
110 STAT. 3009–685 PUBLIC LAW 104–208—SEPT. 30, 1996

available to that family by the Secretary of Housing and Urban

Development shall be prorated, based on the number of individuals

in the family for whom eligibility has been affirmatively established

under the program of financial assistance and under this section,

as compared with the total number of individuals who are members

of the family.’’.

SEC. 573. ACTIONS IN CASES OF TERMINATION OF FINANCIAL ASSISTANCE.

Section 214(c)(1) of the Housing and Community Development

Act of 1980 (42 U.S.C. 1436a(c)(1)) is amended—

(1) in the matter preceding subparagraph (A), by striking

‘‘may, in its discretion,’’ and inserting ‘‘shall’’;

(2) in subparagraph (A), by adding at the end the following:

‘‘Financial assistance continued under this subparagraph for

a family may be provided only on a prorated basis, under

which the amount of financial assistance is based on the

percentage of the total number of members of the family that

are eligible for that assistance under the program of financial

assistance and under this section.’’; and

(3) in subparagraph (B)—

(A) by striking ‘‘3 years’’ and inserting ‘‘18-months’’;

(B) by inserting ‘‘(i)’’ after ‘‘(B)’’;

(C) by striking ‘‘Any deferral’’ and inserting the following:

‘‘(ii) Except as provided in clause (iii), any deferral’’;

and

(D) by adding at the end the following new clauses:

‘‘(iii) The time period described in clause (ii) shall

not apply in the case of a refugee under section 207 of

the Immigration and Nationality Act or an individual seeking asylum under section 208 of that Act.’’.

SEC. 574. VERIFICATION OF IMMIGRATION STATUS AND ELIGIBILITY

FOR FINANCIAL ASSISTANCE.

Section 214(d) of the Housing and Community Development

Act of 1980 (42 U.S.C. 1436a(d)) is amended—

(1) in the matter preceding paragraph (1), by inserting

‘‘or to be’’ after ‘‘being’’;

(2) in paragraph (1)(A), by adding at the end the following:

‘‘If the declaration states that the individual is not a citizen

or national of the United States and that the individual is

younger than 62 years of age, the declaration shall be verified

by the Immigration and Naturalization Service. If the declaration states that the individual is a citizen or national of the

United States, the Secretary of Housing and Urban Development, or the agency administering assistance covered by this

section, may request verification of the declaration by requiring

presentation of documentation that the Secretary considers

appropriate, including a United States passport, resident alien

card, alien registration card, social security card, or other documentation.’’;

(3) in paragraph (2)—

(A) in the matter preceding subparagraph (A), by striking ‘‘on the date of the enactment of the Housing and

Community Development Act of 1987’’ and inserting ‘‘on

the date of enactment of the Use of Assisted Housing
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–686

by Aliens Act of 1996 or applying for financial assistance

on or after that date’’; and

(B) by adding at the end the following:

‘‘In the case of an individual applying for financial assistance on

or after the date of enactment of the Use of Assisted Housing

by Aliens Act of 1996, the Secretary may not provide any such

assistance for the benefit of that individual before documentation

is presented and verified under paragraph (3) or (4).’’;

(4) in paragraph (4)—

(A) in the matter preceding subparagraph (A), by striking ‘‘on the date of the enactment of the Housing and

Community Development Act of 1987’’ and inserting ‘‘on

the date of enactment of the Use of Assisted Housing

by Aliens Act of 1996 or applying for financial assistance

on or after that date’’;

(B) in subparagraph (A)—

(i) in clause (i)—

(I) by inserting ‘‘, not to exceed 30 days,’’ after

‘‘reasonable opportunity’’; and

(II) by striking ‘‘and’’ at the end; and

(ii) by striking clause (ii) and inserting the following:

‘‘(ii) in the case of any individual receiving assistance on the date of enactment of the Use of Assisted

Housing by Aliens Act of 1996, may not delay, deny,

reduce, or terminate the eligibility of that individual

for financial assistance on the basis of the immigration

status of that individual until the expiration of that

30-day period; and

‘‘(iii) in the case of any individual applying for

financial assistance on or after the date of enactment

of the Use of Assisted Housing by Aliens Act of 1996,

may not deny the application for such assistance on

the basis of the immigration status of that individual

until the expiration of that 30-day period; and’’; and

(C) in subparagraph (B), by striking clause (ii) and

inserting the following:

‘‘(ii) pending such verification or appeal, the Secretary may not—

‘‘(I) in the case of any individual receiving

assistance on the date of enactment of the Use

of Assisted Housing by Aliens Act of 1996, delay,

deny, reduce, or terminate the eligibility of that

individual for financial assistance on the basis of

the immigration status of that individual; and

‘‘(II) in the case of any individual applying

for financial assistance on or after the date of

enactment of the Use of Assisted Housing by Aliens

Act of 1996, deny the application for such assistance on the basis of the immigration status of

that individual; and’’;

(5) in paragraph (5), by striking ‘‘status—’’ and all that

follows through the end of the paragraph and inserting the

following: ‘‘status, the Secretary shall—

‘‘(A) deny the application of that individual for financial

assistance or terminate the eligibility of that individual

for financial assistance, as applicable;
110 STAT. 3009–687 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(B) provide that the individual may request a fair

hearing during the 30-day period beginning upon receipt

of the notice under subparagraph (C); and

‘‘(C) provide to the individual written notice of the

determination under this paragraph, the right to a fair

hearing process, and the time limitation for requesting

a hearing under subparagraph (C).’’; and

(6) by striking paragraph (6) and inserting the following:

‘‘(6) The Secretary shall terminate the eligibility for financial assistance of an individual and the members of the household of the individual, for a period of not less than 24 months,

upon determining that such individual has knowingly permitted

another individual who is not eligible for such assistance to

reside in the public or assisted housing unit of the individual.

This provision shall not apply to a family if the ineligibility

of the ineligible individual at issue was considered in calculating any proration of assistance provided for the family.’’.

SEC. 575. PROHIBITION OF SANCTIONS AGAINST ENTITIES MAKING

FINANCIAL ASSISTANCE ELIGIBILITY DETERMINATIONS.

Section 214(e) of the Housing and Community Development

Act of 1980 (42 U.S.C. 1436a(e)) is amended—

(1) in paragraph (2), by adding ‘‘or’’ at the end;

(2) in paragraph (3), by adding at the end the following:

‘‘the response from the Immigration and Naturalization Service

to the appeal of that individual.’’; and

(3) by striking paragraph (4).

SEC. 576. ELIGIBILITY FOR PUBLIC AND ASSISTED HOUSING.

Section 214 of the Housing and Community Development Act

of 1980 (42 U.S.C. 1436a) is amended by adding at the end the

following new subsection:

‘‘(h) VERIFICATION OF ELIGIBILITY.—

‘‘(1) IN GENERAL.—Except in the case of an election under

paragraph (2)(A), no individual or family applying for financial

assistance may receive such financial assistance prior to the

affirmative establishment and verification of eligibility of at

least the individual or one family member under this section

by the Secretary or other appropriate entity.

‘‘(2) RULES APPLICABLE TO PUBLIC HOUSING AGENCIES.—

A public housing agency (as that term is defined in section

3 of the United States Housing Act of 1937)—

‘‘(A) may elect not to comply with this section; and

‘‘(B) in complying with this section—

‘‘(i) may initiate procedures to affirmatively establish or verify the eligibility of an individual or family

under this section at any time at which the public

housing agency determines that such eligibility is in

question, regardless of whether or not that individual

or family is at or near the top of the waiting list

of the public housing agency;

‘‘(ii) may affirmatively establish or verify the eligibility of an individual or family under this section

in accordance with the procedures set forth in section

274A(b)(1) of the Immigration and Nationality Act;

and
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–688

‘‘(iii) shall have access to any relevant information

contained in the SAVE system (or any successor thereto) that relates to any individual or family applying

for financial assistance.

‘‘(3) ELIGIBILITY OF FAMILIES.—For purposes of this subsection, with respect to a family, the term ‘eligibility’ means

the eligibility of each family member.’’.

SEC. 577. REGULATIONS.

(a) ISSUANCE.—Not later than the 60 days after the date of

enactment of this Act, the Secretary of Housing and Urban Development shall issue any regulations necessary to implement the amendments made by this part. Such regulations shall be issued in the

form of an interim final rule, which shall take effect upon issuance

and shall not be subject to the provisions of section 533 of title

5, United States Code, regarding notice or opportunity for comment.

(b) FAILURE TO ISSUE.—If the Secretary fails to issue the regulations required under subsection (a) before the date specified in

that subsection, the regulations relating to restrictions on assistance

to noncitizens, contained in the final rule issued by the Secretary

of Housing and Urban Development in RIN–2501–AA63 (Docket

No. R–95–1409; FR–2383–F–050), published in the Federal Register

on March 20, 1995 (Vol. 60, No. 53; pp. 14824–14861), shall not

apply after that date.

Subtitle F—General Provisions

SEC. 591. EFFECTIVE DATES.

Except as provided in this title, this title and the amendments

made by this title shall take effect on the date of the enactment

of this Act.

SEC. 592. NOT APPLICABLE TO FOREIGN ASSISTANCE.

This title does not apply to any Federal, State, or local governmental program, assistance, or benefits provided to an alien under

any program of foreign assistance as determined by the Secretary

of State in consultation with the Attorney General.

SEC. 593. NOTIFICATION.

(a) IN GENERAL.—Each agency of the Federal Government or

a State or political subdivision that administers a program affected

by the provisions of this title, shall, directly or through the States,

provide general notification to the public and to program recipients

of the changes regarding eligibility for any such program pursuant

to this title.

(b) FAILURE TO GIVE NOTICE.—Nothing in this section shall

be construed to require or authorize continuation of eligibility if

the notice under this section is not provided.

SEC. 594. DEFINITIONS.

Except as otherwise provided in this title, for purposes of this

title—

(1) the terms ‘‘alien’’, ‘‘Attorney General’’, ‘‘national’’, ‘‘naturalization’’, ‘‘State’’, and ‘‘United States’’ shall have the meaning

given such terms in section 101(a) of the Immigration and

Nationality Act; and

8 USC 1101 note.

42 USC 1436a

note.
110 STAT. 3009–689 PUBLIC LAW 104–208—SEPT. 30, 1996

(2) the term ‘‘child’’ shall have the meaning given such

term in section 101(c) of the Immigration and Nationality Act.

TITLE VI—MISCELLANEOUS

PROVISIONS

Subtitle A—Refugees, Parole, and Asylum

SEC. 601. PERSECUTION FOR RESISTANCE TO COERCIVE POPULATION

CONTROL METHODS.

(a) DEFINITION OF REFUGEE.—

(1) Section 101(a)(42) (8 U.S.C. 1101(a)(42)) is amended

by adding at the end the following: ‘‘For purposes of determinations under this Act, a person who has been forced to abort

a pregnancy or to undergo involuntary sterilization, or who

has been persecuted for failure or refusal to undergo such

a procedure or for other resistance to a coercive population

control program, shall be deemed to have been persecuted

on account of political opinion, and a person who has a well

founded fear that he or she will be forced to undergo such

a procedure or subject to persecution for such failure, refusal,

or resistance shall be deemed to have a well founded fear

of persecution on account of political opinion.’’.

(2) Not later than 90 days after the end of each fiscal

year, the Attorney General shall submit a report to the Committee on the Judiciary of the House of Representatives and the

Committee on the Judiciary of the Senate describing the number and countries of origin of aliens granted refugee status

or asylum under determinations pursuant to the amendment

made by paragraph (1). Each such report shall also contain

projections regarding the number and countries of origin of

aliens that are likely to be granted refugee status or asylum

for the subsequent 2 fiscal years.

(b) NUMERICAL LIMITATION.—Section 207(a) (8 U.S.C. 1157(a))

is amended by adding at the end the following new paragraph:

‘‘(5) For any fiscal year, not more than a total of 1,000 refugees

may be admitted under this subsection or granted asylum under

section 208 pursuant to a determination under the third sentence

of section 101(a)(42) (relating to persecution for resistance to coercive population control methods).’’.

SEC. 602. LIMITATION ON USE OF PAROLE

(a) PAROLE AUTHORITY.—Section 212(d)(5)(A) (8 U.S.C.

1182(d)(5)) is amended by striking ‘‘for emergent reasons or for

reasons deemed strictly in the public interest’’ and inserting ‘‘only

on a case-by-case basis for urgent humanitarian reasons or significant public benefit’’.

(b) REPORT TO CONGRESS.—Not later than 90 days after the

end of each fiscal year, the Attorney General shall submit a report

to the Committee on the Judiciary of the House of Representatives

and the Committee on the Judiciary of the Senate describing the

number and categories of aliens paroled into the United States

under section 212(d)(5) of the Immigration and Nationality Act.

Each such report shall provide the total number of aliens paroled

into and residing in the United States and shall contain information

8 USC 1182 note.

8 USC 1101 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–690

and data for each country of origin concerning the number and

categories of aliens paroled, the duration of parole, the current

status of aliens paroled, and the number and categories of aliens

returned to the custody from which they were paroled during the

preceding fiscal year.

SEC. 603. TREATMENT OF LONG-TERM PAROLEES IN APPLYING

WORLDWIDE NUMERICAL LIMITATIONS.

Section 201(c) (8 U.S.C. 1151(c)) is amended—

(1) by amending paragraph (1)(A)(ii) to read as follows:

‘‘(ii) the sum of the number computed under paragraph

(2) and the number computed under paragraph (4), plus’’; and

(2) by adding at the end the following new paragraphs:

‘‘(4) The number computed under this paragraph for a fiscal

year (beginning with fiscal year 1999) is the number of aliens

who were paroled into the United States under section 212(d)(5)

in the second preceding fiscal year—

‘‘(A) who did not depart from the United States (without

advance parole) within 365 days; and

‘‘(B) who (i) did not acquire the status of aliens lawfully

admitted to the United States for permanent residence in the

two preceding fiscal years, or (ii) acquired such status in such

years under a provision of law (other than section 201(b))

which exempts such adjustment from the numerical limitation

on the worldwide level of immigration under this section.

‘‘(5) If any alien described in paragraph (4) (other than an

alien described in paragraph (4)(B)(ii)) is subsequently admitted

as an alien lawfully admitted for permanent residence, such alien

shall not again be considered for purposes of paragraph (1).’’.

SEC. 604. ASYLUM REFORM.

(a) ASYLUM REFORM.—Section 208 (8 U.S.C. 1158) is amended

to read as follows:

‘‘ASYLUM

‘‘SEC. 208. (a) AUTHORITY TO APPLY FOR ASYLUM.—

‘‘(1) IN GENERAL.—Any alien who is physically present in

the United States or who arrives in the United States (whether

or not at a designated port of arrival and including an alien

who is brought to the United States after having been interdicted in international or United States waters), irrespective

of such alien’s status, may apply for asylum in accordance

with this section or, where applicable, section 235(b).

‘‘(2) EXCEPTIONS.—

‘‘(A) SAFE THIRD COUNTRY.—Paragraph (1) shall not

apply to an alien if the Attorney General determines that

the alien may be removed, pursuant to a bilateral or multilateral agreement, to a country (other than the country

of the alien’s nationality or, in the case of an alien having

no nationality, the country of the alien’s last habitual residence) in which the alien’s life or freedom would not be

threatened on account of race, religion, nationality, membership in a particular social group, or political opinion,

and where the alien would have access to a full and fair

procedure for determining a claim to asylum or equivalent

temporary protection, unless the Attorney General finds
110 STAT. 3009–691 PUBLIC LAW 104–208—SEPT. 30, 1996

that it is in the public interest for the alien to receive

asylum in the United States.

‘‘(B) TIME LIMIT.—Subject to subparagraph (D), paragraph (1) shall not apply to an alien unless the alien

demonstrates by clear and convincing evidence that the

application has been filed within 1 year after the date

of the alien’s arrival in the United States.

‘‘(C) PREVIOUS ASYLUM APPLICATIONS.—Subject to

subparagraph (D), paragraph (1) shall not apply to an

alien if the alien has previously applied for asylum and

had such application denied.

‘‘(D) CHANGED CIRCUMSTANCES.—An application for

asylum of an alien may be considered, notwithstanding

subparagraphs (B) and (C), if the alien demonstrates to

the satisfaction of the Attorney General either the existence

of changed circumstances which materially affect the

applicant’s eligibility for asylum or extraordinary circumstances relating to the delay in filing an application

within the period specified in subparagraph (B).

‘‘(3) LIMITATION ON JUDICIAL REVIEW.—No court shall have

jurisdiction to review any determination of the Attorney General under paragraph (2).

‘‘(b) CONDITIONS FOR GRANTING ASYLUM.—

‘‘(1) IN GENERAL.—The Attorney General may grant asylum

to an alien who has applied for asylum in accordance with

the requirements and procedures established by the Attorney

General under this section if the Attorney General determines

that such alien is a refugee within the meaning of section

101(a)(42)(A).

‘‘(2) EXCEPTIONS.—

‘‘(A) IN GENERAL.—Paragraph (1) shall not apply to

an alien if the Attorney General determines that—

‘‘(i) the alien ordered, incited, assisted, or otherwise

participated in the persecution of any person on

account of race, religion, nationality, membership in

a particular social group, or political opinion;

‘‘(ii) the alien, having been convicted by a final

judgment of a particularly serious crime, constitutes

a danger to the community of the United States;

‘‘(iii) there are serious reasons for believing that

the alien has committed a serious nonpolitical crime

outside the United States prior to the arrival of the

alien in the United States;

‘‘(iv) there are reasonable grounds for regarding

the alien as a danger to the security of the United

States;

‘‘(v) the alien is inadmissible under subclause (I),

(II), (III), or (IV) of section 212(a)(3)(B)(i) or removable

under section 237(a)(4)(B) (relating to terrorist activity), unless, in the case only of an alien inadmissible

under subclause (IV) of section 212(a)(3)(B)(i), the

Attorney General determines, in the Attorney General’s

discretion, that there are not reasonable grounds for

regarding the alien as a danger to the security of

the United States; or

‘‘(vi) the alien was firmly resettled in another country prior to arriving in the United States.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–692

‘‘(B) SPECIAL RULES.— ‘‘(i) CONVICTION OF AGGRAVATED FELONY.—For purposes of clause (ii) of subparagraph (A), an alien who

has been convicted of an aggravated felony shall be

considered to have been convicted of a particularly

serious crime.

‘‘(ii) OFFENSES.—The Attorney General may designate by regulation offenses that will be considered

to be a crime described in clause (ii) or (iii) of subparagraph (A).

‘‘(C) ADDITIONAL LIMITATIONS.—The Attorney General

may by regulation establish additional limitations and

conditions, consistent with this section, under which an

alien shall be ineligible for asylum under paragraph (1).

‘‘(D) NO JUDICIAL REVIEW.—There shall be no judicial

review of a determination of the Attorney General under

subparagraph (A)(v).

‘‘(3) TREATMENT OF SPOUSE AND CHILDREN.—A spouse or

child (as defined in section 101(b)(1)(A), (B), (C), (D), or (E))

of an alien who is granted asylum under this subsection may,

if not otherwise eligible for asylum under this section, be

granted the same status as the alien if accompanying, or following to join, such alien.

‘‘(c) ASYLUM STATUS.—

‘‘(1) IN GENERAL.—In the case of an alien granted asylum

under subsection (b), the Attorney General—

‘‘(A) shall not remove or return the alien to the alien’s

country of nationality or, in the case of a person having

no nationality, the country of the alien’s last habitual residence;

‘‘(B) shall authorize the alien to engage in employment

in the United States and provide the alien with appropriate

endorsement of that authorization; and

‘‘(C) may allow the alien to travel abroad with the

prior consent of the Attorney General.

‘‘(2) TERMINATION OF ASYLUM.—Asylum granted under subsection (b) does not convey a right to remain permanently

in the United States, and may be terminated if the Attorney

General determines that—

‘‘(A) the alien no longer meets the conditions described

in subsection (b)(1) owing to a fundamental change in

circumstances;

‘‘(B) the alien meets a condition described in subsection

(b)(2);

‘‘(C) the alien may be removed, pursuant to a bilateral

or multilateral agreement, to a country (other than the

country of the alien’s nationality or, in the case of an

alien having no nationality, the country of the alien’s last

habitual residence) in which the alien’s life or freedom

would not be threatened on account of race, religion,

nationality, membership in a particular social group, or

political opinion, and where the alien is eligible to receive

asylum or equivalent temporary protection;

‘‘(D) the alien has voluntarily availed himself or herself

of the protection of the alien’s country of nationality or,

in the case of an alien having no nationality, the alien’s

country of last habitual residence, by returning to such
110 STAT. 3009–693 PUBLIC LAW 104–208—SEPT. 30, 1996

country with permanent resident status or the reasonable

possibility of obtaining such status with the same rights

and obligations pertaining to other permanent residents

of that country; or

‘‘(E) the alien has acquired a new nationality and enjoys

the protection of the country of his or her new nationality.

‘‘(3) REMOVAL WHEN ASYLUM IS TERMINATED.—An alien

described in paragraph (2) is subject to any applicable grounds

of inadmissibility or deportability under section 212(a) and

237(a), and the alien’s removal or return shall be directed

by the Attorney General in accordance with sections 240 and

241.

‘‘(d) ASYLUM PROCEDURE.—

‘‘(1) APPLICATIONS.—The Attorney General shall establish a

procedure for the consideration of asylum applications filed

under subsection (a). The Attorney General may require

applicants to submit fingerprints and a photograph at such

time and in such manner to be determined by regulation by

the Attorney General.

‘‘(2) EMPLOYMENT.—An applicant for asylum is not entitled

to employment authorization, but such authorization may be

provided under regulation by the Attorney General. An

applicant who is not otherwise eligible for employment

authorization shall not be granted such authorization prior

to 180 days after the date of filing of the application for asylum.

‘‘(3) FEES.—The Attorney General may impose fees for the

consideration of an application for asylum, for employment

authorization under this section, and for adjustment of status

under section 209(b). Such fees shall not exceed the Attorney

General’s costs in adjudicating the applications. The Attorney

General may provide for the assessment and payment of such

fees over a period of time or by installments. Nothing in this

paragraph shall be construed to require the Attorney General

to charge fees for adjudication services provided to asylum

applicants, or to limit the authority of the Attorney General

to set adjudication and naturalization fees in accordance with

section 286(m).

‘‘(4) NOTICE OF PRIVILEGE OF COUNSEL AND CONSEQUENCES

OF FRIVOLOUS APPLICATION.—At the time of filing an application

for asylum, the Attorney General shall—

‘‘(A) advise the alien of the privilege of being represented

by counsel and of the consequences, under paragraph (6),

of knowingly filing a frivolous application for asylum; and

‘‘(B) provide the alien a list of persons (updated not

less often than quarterly) who have indicated their availability to represent aliens in asylum proceedings on a pro

bono basis.

‘‘(5) CONSIDERATION OF ASYLUM APPLICATIONS.—

‘‘(A) PROCEDURES.—The procedure established under

paragraph (1) shall provide that—

‘‘(i) asylum cannot be granted until the identity

of the applicant has been checked against all appropriate records or databases maintained by the Attorney

General and by the Secretary of State, including the

Automated Visa Lookout System, to determine any

grounds on which the alien may be inadmissible to
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–694

or deportable from the United States, or ineligible to

apply for or be granted asylum;

‘‘(ii) in the absence of exceptional circumstances, the

initial interview or hearing on the asylum application

shall commence not later than 45 days after the date

an application is filed;

‘‘(iii) in the absence of exceptional circumstances,

final administrative adjudication of the asylum application, not including administrative appeal, shall be completed within 180 days after the date an application

is filed;

‘‘(iv) any administrative appeal shall be filed within

30 days of a decision granting or denying asylum,

or within 30 days of the completion of removal proceedings before an immigration judge under section 240,

whichever is later; and

‘‘(v) in the case of an applicant for asylum who

fails without prior authorization or in the absence of

exceptional circumstances to appear for an interview

or hearing, including a hearing under section 240, the

application may be dismissed or the applicant may

be otherwise sanctioned for such failure.

‘‘(B) ADDITIONAL REGULATORY CONDITIONS.—The Attorney General may provide by regulation for any other conditions or limitations on the consideration of an application

for asylum not inconsistent with this Act.

‘‘(6) FRIVOLOUS APPLICATIONS.—If the Attorney General determines that an alien has knowingly made a frivolous application

for asylum and the alien has received the notice under paragraph (4)(A), the alien shall be permanently ineligible for any

benefits under this Act, effective as of the date of a final

determination on such application.

‘‘(7) NO PRIVATE RIGHT OF ACTION.—Nothing in this subsection

shall be construed to create any substantive or procedural

right or benefit that is legally enforceable by any party against

the United States or its agencies or officers or any other person.’’.

(b) CONFORMING AND CLERICAL AMENDMENTS.—

(1) The item in the table of contents relating to section

208 is amended to read as follows:

‘‘Sec. 208. Asylum.’’.

(2) Section 104(d)(1)(A) of the Immigration Act of 1990 (Public

Law 101–649) is amended by striking ‘‘208(b)’’ and inserting

‘‘208’’.

(c) EFFECTIVE DATE.—The amendment made by subsection (a)

shall apply to applications for asylum filed on or after the first

day of the first month beginning more than 180 days after the

date of the enactment of this Act.

SEC. 605. INCREASE IN ASYLUM OFFICERS.

Subject to the availability of appropriations, the Attorney General shall provide for an increase in the number of asylum officers

to at least 600 asylum officers by fiscal year 1997.

8 USC 1158 note.

8 USC 1159 note.
110 STAT. 3009–695 PUBLIC LAW 104–208—SEPT. 30, 1996

SEC. 606. CONDITIONAL REPEAL OF CUBAN ADJUSTMENT ACT.

(a) IN GENERAL.—Public Law 89–732 is repealed effective only

upon a determination by the President under section 203(c)(3) of

the Cuban Liberty and Democratic Solidarity (LIBERTAD) Act of

1996 (Public Law 104–114) that a democratically elected government in Cuba is in power.

(b) LIMITATION.—Subsection (a) shall not apply to aliens for

whom an application for adjustment of status is pending on such

effective date.

Subtitle B—Miscellaneous Amendments to

the Immigration and Nationality Act

SEC. 621. ALIEN WITNESS COOPERATION.

Section 214(j)(1) (8 U.S.C. 1184(j)(1)) (as added by section

130003(b)(2) of the Violent Crime Control and Law Enforcement

Act of 1994 (Public Law 103–322; 108 Stat. 2025)) (relating to

numerical limitations on the number of aliens who may be provided

a visa as nonimmigrants under section 101(a)(15)(S) of the Immigration and Nationality Act) is amended—

(1) by striking ‘‘100.’’ and inserting ‘‘200.’’; and

(2) by striking ‘‘25.’’ and inserting ‘‘50.’’.

SEC. 622. WAIVER OF FOREIGN COUNTRY RESIDENCE REQUIREMENT

WITH RESPECT TO INTERNATIONAL MEDICAL GRADUATES.

(a) EXTENSION OF WAIVER PROGRAM.—Section 220(c) of the

Immigration and Nationality Technical Corrections Act of 1994

(8 U.S.C. 1182 note) is amended by striking ‘‘1996.’’ and inserting

‘‘2002.’’.

(b) CONDITIONS ON FEDERALLY REQUESTED WAIVERS.—Section

212(e) (8 U.S.C. 1182(e)) is amended by inserting after ‘‘except

that in the case of a waiver requested by a State Department

of Public Health, or its equivalent’’ the following: ‘‘, or in the

case of a waiver requested by an interested United States Government agency on behalf of an alien described in clause (iii),’’.

(c) RESTRICTIONS ON FEDERALLY REQUESTED WAIVERS.—Section

214(k) (8 U.S.C. 1184(k)) (as added by section 220(b) of the Immigration and Nationality Technical Corrections Act of 1994 (Public Law

103–416; 108 Stat. 4319)) is amended to read as follows:

‘‘(k)(1) In the case of a request by an interested State agency,

or by an interested Federal agency, for a waiver of the 2-year

foreign residence requirement under section 212(e) on behalf of

an alien described in clause (iii) of such section, the Attorney

General shall not grant such waiver unless—

‘‘(A) in the case of an alien who is otherwise contractually

obligated to return to a foreign country, the government of

such country furnishes the Director of the United States

Information Agency with a statement in writing that it has

no objection to such waiver;

‘‘(B) in the case of a request by an interested State agency,

the grant of such waiver would not cause the number of waivers

allotted for that State for that fiscal year to exceed 20;

‘‘(C) in the case of a request by an interested Federal agency

or by an interested State agency—

8 USC 1255 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–696

‘‘(i) the alien demonstrates a bona fide offer of full-time

employment at a health facility or health care organization,

which employment has been determined by the Attorney

General to be in the public interest; and

‘‘(ii) the alien agrees to begin employment with the health

facility or health care organization within 90 days of receiving such waiver, and agrees to continue to work for a

total of not less than 3 years (unless the Attorney General

determines that extenuating circumstances exist, such as

closure of the facility or hardship to the alien, which would

justify a lesser period of employment at such health facility

or health care organization, in which case the alien must

demonstrate another bona fide offer of employment at a

health facility or health care organization for the remainder

of such 3-year period); and

‘‘(D) in the case of a request by an interested Federal agency

(other than a request by an interested Federal agency to employ

the alien full-time in medical research or training) or by an

interested State agency, the alien agrees to practice medicine

in accordance with paragraph (2) for a total of not less than

3 years only in the geographic area or areas which are designated by the Secretary of Health and Human Services as

having a shortage of health care professionals.

‘‘(2)(A) Notwithstanding section 248(2), the Attorney General

may change the status of an alien who qualifies under this

subsection and section 212(e) to that of an alien described

in section 101(a)(15)(H)(i)(b).

‘‘(B) No person who has obtained a change of status under

subparagraph (A) and who has failed to fulfill the terms of

the contract with the health facility or health care organization

named in the waiver application shall be eligible to apply

for an immigrant visa, for permanent residence, or for any

other change of nonimmigrant status, until it is established

that such person has resided and been physically present in

the country of his nationality or his last residence for an aggregate of at least 2 years following departure from the United

States.

‘‘(3) Notwithstanding any other provision of this subsection,

the 2-year foreign residence requirement under section 212(e)

shall apply with respect to an alien described in clause (iii)

of such section, who has not otherwise been accorded status

under section 101(a)(27)(H), if—

‘‘(A) at any time the alien ceases to comply with any

agreement entered into under subparagraph (C) or (D)

of paragraph (1); or

‘‘(B) the alien’s employment ceases to benefit the public

interest at any time during the 3-year period described

in paragraph (1)(C).’’.

SEC. 623. USE OF LEGALIZATION AND SPECIAL AGRICULTURAL

WORKER INFORMATION.

(a) CONFIDENTIALITY OF INFORMATION.—Section 245A(c)(5) (8

U.S.C. 1255a(c)(5)) is amended to read as follows:

‘‘(5) CONFIDENTIALITY OF INFORMATION.—

‘‘(A) IN GENERAL.—Except as provided in this paragraph, neither the Attorney General, nor any other official
110 STAT. 3009–697 PUBLIC LAW 104–208—SEPT. 30, 1996

or employee of the Department of Justice, or bureau or

agency thereof, may—

‘‘(i) use the information furnished by the applicant

pursuant to an application filed under this section

for any purpose other than to make a determination

on the application, for enforcement of paragraph (6),

or for the preparation of reports to Congress under

section 404 of the Immigration Reform and Control

Act of 1986;

‘‘(ii) make any publication whereby the information

furnished by any particular applicant can be identified;

or

‘‘(iii) permit anyone other than the sworn officers

and employees of the Department or bureau or agency

or, with respect to applications filed with a designated

entity, that designated entity, to examine individual

applications.

‘‘(B) REQUIRED DISCLOSURES.—The Attorney General

shall provide the information furnished under this section,

and any other information derived from such furnished

information, to a duly recognized law enforcement entity

in connection with a criminal investigation or prosecution,

when such information is requested in writing by such

entity, or to an official coroner for purposes of affirmatively

identifying a deceased individual (whether or not such

individual is deceased as a result of a crime).

‘‘(C) AUTHORIZED DISCLOSURES.—The Attorney General

may provide, in the Attorney General’s discretion, for the

furnishing of information furnished under this section in

the same manner and circumstances as census information

may be disclosed by the Secretary of Commerce under

section 8 of title 13, United States Code.

‘‘(D) CONSTRUCTION.—

‘‘(i) IN GENERAL.—Nothing in this paragraph shall

be construed to limit the use, or release, for immigration enforcement purposes or law enforcement purposes

of information contained in files or records of the Service pertaining to an application filed under this section,

other than information furnished by an applicant

pursuant to the application, or any other information

derived from the application, that is not available from

any other source.

‘‘(ii) CRIMINAL CONVICTIONS.—Information concerning whether the applicant has at any time been convicted of a crime may be used or released for immigration enforcement or law enforcement purposes.

‘‘(E) CRIME.—Whoever knowingly uses, publishes, or

permits information to be examined in violation of this

paragraph shall be fined not more than $10,000.’’.

(b) SPECIAL AGRICULTURAL WORKERS.—Section 210(b)(6) (8

U.S.C. 1160(b)(6)) is amended to read as follows:

‘‘(6) CONFIDENTIALITY OF INFORMATION.—

‘‘(A) IN GENERAL.—Except as provided in this paragraph, neither the Attorney General, nor any other official

or employee of the Department of Justice, or bureau or

agency thereof, may—
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–698

‘‘(i) use the information furnished by the applicant

pursuant to an application filed under this section

for any purpose other than to make a determination

on the application, including a determination under

subsection (a)(3)(B), or for enforcement of paragraph

(7);

‘‘(ii) make any publication whereby the information

furnished by any particular individual can be identified; or

‘‘(iii) permit anyone other than the sworn officers

and employees of the Department or bureau or agency

or, with respect to applications filed with a designated

entity, that designated entity, to examine individual

applications.

‘‘(B) REQUIRED DISCLOSURES.—The Attorney General

shall provide information furnished under this section, and

any other information derived from such furnished information, to a duly recognized law enforcement entity in connection with a criminal investigation or prosecution, when

such information is requested in writing by such entity,

or to an official coroner for purposes of affirmatively identifying a deceased individual (whether or not such individual

is deceased as a result of a crime).

‘‘(C) CONSTRUCTION.—

‘‘(i) IN GENERAL.—Nothing in this paragraph shall

be construed to limit the use, or release, for immigration enforcement purposes or law enforcement purposes

of information contained in files or records of the Service pertaining to an application filed under this section,

other than information furnished by an applicant

pursuant to the application, or any other information

derived from the application, that is not available from

any other source.

‘‘(ii) CRIMINAL CONVICTIONS.—Information concerning whether the applicant has at any time been convicted of a crime may be used or released for immigration enforcement or law enforcement purposes.

‘‘(D) CRIME.—Whoever knowingly uses, publishes, or

permits information to be examined in violation of this

paragraph shall be fined not more than $10,000.’’.

SEC. 624. CONTINUED VALIDITY OF LABOR CERTIFICATIONS AND

CLASSIFICATION PETITIONS FOR PROFESSIONAL ATHLETES.

(a) LABOR CERTIFICATION.—Section 212(a)(5)(A) (8 U.S.C.

1182(a)(5)(A)) is amended by adding at the end the following:

‘‘(iii) PROFESSIONAL ATHLETES.—

‘‘(I) IN GENERAL.—A certification made under

clause (i) with respect to a professional athlete

shall remain valid with respect to the athlete after

the athlete changes employer, if the new employer

is a team in the same sport as the team which

employed the athlete when the athlete first applied

for the certification.

‘‘(II) DEFINITION.—For purposes of subclause

(I), the term ‘professional athlete’ means an

individual who is employed as an athlete by—
110 STAT. 3009–699 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(aa) a team that is a member of an

association of 6 or more professional sports

teams whose total combined revenues exceed

$10,000,000 per year, if the association governs the conduct of its members and regulates

the contests and exhibitions in which its member teams regularly engage; or

‘‘(bb) any minor league team that is affiliated with such an association.’’.

(b) CLASSIFICATION PETITIONS.—Section 204 (8 U.S.C. 1154)

is amended by adding at the end the following:

‘‘(i) PROFESSIONAL ATHLETES.—

‘‘(1) IN GENERAL.—A petition under subsection (a)(4)(D)

for classification of a professional athlete shall remain valid

for the athlete after the athlete changes employers, if the

new employer is a team in the same sport as the team which

was the employer who filed the petition.

‘‘(2) DEFINITION.—For purposes of paragraph (1), the term

‘professional athlete’ means an individual who is employed

as an athlete by—

‘‘(A) a team that is a member of an association of

6 or more professional sports teams whose total combined

revenues exceed $10,000,000 per year, if the association

governs the conduct of its members and regulates the contests and exhibitions in which its member teams regularly

engage; or

‘‘(B) any minor league team that is affiliated with

such an association.’’.

SEC. 625. FOREIGN STUDENTS.

(a) LIMITATIONS.—

(1) IN GENERAL.—Section 214 (8 U.S.C. 1184) is amended

by adding at the end the following new subsection:

‘‘(l)(1) An alien may not be accorded status as a nonimmigrant

under section 101(a)(15)(F)(i) in order to pursue a course of study—

‘‘(A) at a public elementary school or in a publicly funded

adult education program; or

‘‘(B) at a public secondary school unless—

‘‘(i) the aggregate period of such status at such a school

does not exceed 12 months with respect to any alien, and

(ii) the alien demonstrates that the alien has reimbursed

the local educational agency that administers the school

for the full, unsubsidized per capita cost of providing education at such school for the period of the alien’s attendance.

‘‘(2) An alien who obtains the status of a nonimmigrant under

section 101(a)(15)(F)(i) in order to pursue a course of study at

a private elementary or secondary school or in a language training

program that is not publicly funded shall be considered to have

violated such status, and the alien’s visa under section 101(a)(15)(F)

shall be void, if the alien terminates or abandons such course

of study at such a school and undertakes a course of study at

a public elementary school, in a publicly funded adult education

program, in a publicly funded adult education language training

program, or at a public secondary school (unless the requirements

of paragraph (1)(B) are met).’’.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–700

(2) CONFORMING AMENDMENT.—Section 101(a)(15)(F) (8

U.S.C. 1101(a)(15)(F)) is amended by inserting ‘‘consistent with

section 214(l)’’ after ‘‘such a course of study’’.

(b) REFERENCE TO NEW GROUND OF EXCLUSION FOR STUDENT

VISA ABUSERS.—For addition of ground of inadmissibility for certain

nonimmigrant student abusers, see section 347 of this division.

(c) EFFECTIVE DATE.—The amendments made by subsection

(a) shall apply to individuals who obtain the status of a nonimmigrant under section 101(a)(15)(F) of the Immigration and

Nationality Act after the end of the 60-day period beginning on

the date of the enactment of this Act, including aliens whose status

as such a nonimmigrant is extended after the end of such period.

SEC. 626. SERVICES TO FAMILY MEMBERS OF CERTAIN OFFICERS AND

AGENTS KILLED IN THE LINE OF DUTY.

(a) IN GENERAL.—Title II, as amended by section 205(a) of

this division, is amended by adding at the end the following new

section:

‘‘TRANSPORTATION OF REMAINS OF IMMIGRATION OFFICERS AND

BORDER PATROL AGENTS KILLED IN THE LINE OF DUTY

‘‘SEC. 295. (a) IN GENERAL.—To the extent provided in appropriation Acts, when an immigration officer or border patrol agent

is killed in the line of duty, the Attorney General may pay from

appropriations available for the activity in which the officer or

agent was engaged—

‘‘(1) the actual and necessary expenses of transportation

of the remains of the officer or agent to a place of burial

located in any State, American Samoa, the Commonwealth

of the Northern Mariana Islands, the Republic of the Marshall

Islands, the Federated States of Micronesia, or the Republic

of Palau;

‘‘(2) travel expenses, including per diem in lieu of subsistence, of the decedent’s spouse and minor children to and from

such site at rates not greater than those established for official

government travel under subchapter I of chapter 57 of title

5, United States Code; and

‘‘(3) any other memorial service authorized by the Attorney

General.

‘‘(b) PREPAYMENT.—The Attorney General may prepay any

expense authorized to be paid under this section.’’.

(b) CLERICAL AMENDMENT.—The table of contents, as amended

by section 205(b) of this division, is amended by inserting after

the item relating to section 294 the following new item:

‘‘Sec. 295. Transportation of remains of immigration officers and border

patrol agents killed in the line of duty.’’.

Subtitle C—Provisions Relating to Visa

Processing and Consular Efficiency

SEC. 631. VALIDITY OF PERIOD OF VISAS.

(a) EXTENSION OF VALIDITY OF IMMIGRANT VISAS TO 6

MONTHS.—Section 221(c) (8 U.S.C. 1201(c)) is amended by striking

‘‘four months’’ and inserting ‘‘six months’’.

8 USC 1363b.

8 USC 1101 note.
110 STAT. 3009–701 PUBLIC LAW 104–208—SEPT. 30, 1996

(b) AUTHORIZING APPLICATION OF RECIPROCITY RULE FOR NON- IMMIGRANT VISA IN CASE OF REFUGEES AND PERMANENT RESI- DENTS.—Such section is further amended by inserting before the

period at the end of the third sentence the following: ‘‘; except

that in the case of aliens who are nationals of a foreign country

and who either are granted refugee status and firmly resettled

in another foreign country or are granted permanent residence

and residing in another foreign country, the Secretary of State

may prescribe the period of validity of such a visa based upon

the treatment granted by that other foreign country to alien refugees and permanent residents, respectively, in the United States’’.

SEC. 632. ELIMINATION OF CONSULATE SHOPPING FOR VISA

OVERSTAYS.

(a) IN GENERAL.—Section 222 (8 U.S.C. 1202) is amended by

adding at the end the following:

‘‘(g)(1) In the case of an alien who has been admitted on

the basis of a nonimmigrant visa and remained in the United

States beyond the period of stay authorized by the Attorney General,

such visa shall be void beginning after the conclusion of such

period of stay.

‘‘(2) An alien described in paragraph (1) shall be ineligible

to be readmitted to the United States as a nonimmigrant, except—

‘‘(A) on the basis of a visa (other than the visa described

in paragraph (1)) issued in a consular office located in the

country of the alien’s nationality (or, if there is no office in

such country, in such other consular office as the Secretary

of State shall specify); or

‘‘(B) where extraordinary circumstances are found by the

Secretary of State to exist.’’.

(b) APPLICABILITY.—

(1) VISAS.—Section 222(g)(1) of the Immigration and

Nationality Act, as added by subsection (a), shall apply to

a visa issued before, on, or after the date of the enactment

of this Act.

(2) ALIENS SEEKING READMISSION.—Section 222(g)(2) of the

Immigration and Nationality Act, as added by subsection (a),

shall apply to any alien applying for readmission to the United

States after the date of the enactment of this Act, except

an alien applying for readmission on the basis on a visa that—

(A) was issued before such date; and

(B) is not void through the application of section

222(g)(1) of the Immigration and Nationality Act, as added

by subsection (a).

SEC. 633. AUTHORITY TO DETERMINE VISA PROCESSING PROCEDURES.

Section 202(a)(1) (8 U.S.C. 1152(a)(1)) is amended—

(1) by inserting ‘‘(A)’’ after ‘‘NONDISCRIMINATION.—’’; and

(2) by adding at the end the following:

‘‘(B) Nothing in this paragraph shall be construed to limit

the authority of the Secretary of State to determine the procedures for the processing of immigrant visa applications or the

locations where such applications will be processed.’’.

SEC. 634. CHANGES REGARDING VISA APPLICATION PROCESS.

(a) NONIMMIGRANT APPLICATIONS.—Section 222(c) (8 U.S.C.

1202(c)) is amended—

8 USC 1202 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–702

(1) by striking ‘‘personal description’’ through ‘‘marks of

identification);’’;

(2) by striking ‘‘applicant’’ and inserting ‘‘applicant, the

determination of his eligibility for a nonimmigrant visa,’’; and

(3) by adding at the end the following: ‘‘At the discretion

of the Secretary of State, application forms for the various

classes of nonimmigrant admissions described in section

101(a)(15) may vary according to the class of visa being

requested.’’.

(b) DISPOSITION OF APPLICATIONS.—Section 222(e) (8 U.S.C.

1202(e)) is amended—

(1) in the first sentence, by striking ‘‘required by this

section’’ and inserting ‘‘for an immigrant visa’’; and

(2) in the fourth sentence—

(A) by striking ‘‘stamp’’ and inserting ‘‘stamp, or other

(B) by striking ‘‘by the consular officer’’.

SEC. 635. VISA WAIVER PROGRAM.

(a) ELIMINATION OF JOINT ACTION REQUIREMENT.—Section 217

(8 U.S.C. 1187) is amended—

(1) in subsection (a), by striking ‘‘Attorney General and

the Secretary of State, acting jointly’’ and inserting ‘‘Attorney

General, in consultation with the Secretary of State’’;

(2) in subsection (c)(1), by striking ‘‘Attorney General and

the Secretary of State acting jointly’’ and inserting ‘‘Attorney

General, in consultation with the Secretary of State,’’; and

(3) in subsection (d), by striking ‘‘Attorney General and

the Secretary of State, acting jointly,’’ and inserting ‘‘Attorney

General, in consultation with the Secretary of State,’’.

(b) EXTENSION OF PROGRAM.—Section 217(f) (8 U.S.C. 1187(f))

is amended by striking ‘‘1996’’ and inserting ‘‘1997.’’.

(c) DURATION AND TERMINATION OF DESIGNATION OF PILOT PROGRAM COUNTRIES.—

(1) IN GENERAL.—Section 217(g) (8 U.S.C. 1187(g)) is

amended to read as follows:

‘‘(g) DURATION AND TERMINATION OF DESIGNATION.—

‘‘(1) IN GENERAL.—

‘‘(A) DETERMINATION AND NOTIFICATION OF DISQUALIFICATION RATE.—Upon determination by the Attorney General that a pilot program country’s disqualification rate

is 2 percent or more, the Attorney General shall notify

the Secretary of State.

‘‘(B) PROBATIONARY STATUS.—If the program country’s

disqualification rate is greater than 2 percent but less

than 3.5 percent, the Attorney General shall place the

program country in probationary status for a period not

to exceed 2 full fiscal years following the year in which

the determination under subparagraph (A) is made.

‘‘(C) TERMINATION OF DESIGNATION.—Subject to paragraph (3), if the program country’s disqualification rate

is 3.5 percent or more, the Attorney General shall terminate

the country’s designation as a pilot program country effective at the beginning of the second fiscal year following

the fiscal year in which the determination under subparagraph (A) is made.

‘‘(2) TERMINATION OF PROBATIONARY STATUS.—
110 STAT. 3009–703 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(A) IN GENERAL.—If the Attorney General determines

at the end of the probationary period described in paragraph (1)(B) that the program country placed in probationary status under such paragraph has failed to develop

a machine-readable passport program as required by section (c)(2)(C), or has a disqualification rate of 2 percent

or more, the Attorney General shall terminate the designation of the country as a pilot program country. If the

Attorney General determines that the program country

has developed a machine-readable passport program and

has a disqualification rate of less than 2 percent, the Attorney General shall redesignate the country as a pilot program country.

‘‘(B) EFFECTIVE DATE.—A termination of the designation of a country under subparagraph (A) shall take effect

on the first day of the first fiscal year following the fiscal

year in which the determination under such subparagraph

is made. Until such date, nationals of the country shall

remain eligible for a waiver under subsection (a).

‘‘(3) NONAPPLICABILITY OF CERTAIN PROVISIONS.—Paragraph

(1)(C) shall not apply unless the total number of nationals

of a pilot program country described in paragraph (4)(A) exceeds

100.

‘‘(4) DEFINITION.—For purposes of this subsection, the term

‘disqualification rate’ means the percentage which—

‘‘(A) the total number of nationals of the pilot program

country who were—

‘‘(i) excluded from admission or withdrew their

application for admission during the most recent fiscal

year for which data are available; and

‘‘(ii) admitted as nonimmigrant visitors during

such fiscal year and who violated the terms of such

admission; bears to

‘‘(B) the total number of nationals of such country

who applied for admission as nonimmigrant visitors during

such fiscal year.’’.

(2) TRANSITION.—A country designated as a pilot program

country with probationary status under section 217(g) of the

Immigration and Nationality Act (as in effect on the day before

the date of the enactment of this Act) shall be considered

to be designated as a pilot program country on and after such

date, subject to placement in probationary status or termination

of such designation under such section (as amended by paragraph (1)).

(3) CONFORMING AMENDMENT.—Section 217(a)(2)(B) (8

U.S.C. 1187(a)(2)(B)) is amended by striking ‘‘or is’’ through

‘‘subsection (g).’’ and inserting a period.

SEC. 636. FEE FOR DIVERSITY IMMIGRANT LOTTERY.

The Secretary of State may establish a fee to be paid by

each applicant for an immigrant visa described in section 203(c)

of the Immigration and Nationality Act. Such fee may be set at

a level that will ensure recovery of the cost to the Department

of State of allocating visas under such section, including the cost

of processing all applications thereunder. All fees collected under

this section shall be used for providing consular services. All fees

collected under this section shall be deposited as an offsetting

8 USC 1153 note.

8 USC 1187 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–704

collection to any Department of State appropriation and shall

remain available for obligations until expended. The provisions

of the Act of August 18, 1856 (11 Stat. 58; 22 U.S.C. 4212–4214),

concerning accounting for consular fees, shall not apply to fees

collected under this section.

SEC. 637. ELIGIBILITY FOR VISAS FOR CERTAIN POLISH APPLICANTS

FOR THE 1995 DIVERSITY IMMIGRANT PROGRAM.

(a) IN GENERAL.—The Attorney General, in consultation with

the Secretary of State, shall include among the aliens selected

for diversity immigrant visas for fiscal year 1997 pursuant to section

203(c) of the Immigration and Nationality Act any alien who, on

or before September 30, 1995—

(1) was selected as a diversity immigrant under such section for fiscal year 1995;

(2) applied for adjustment of status to that of an alien

lawfully admitted for permanent residence pursuant to section

245 of such Act during fiscal year 1995, and whose application,

and any associated fees, were accepted by the Attorney General,

in accordance with applicable regulations;

(3) was not determined by the Attorney General to be

excludable under section 212 of such Act or ineligible under

section 203(c)(2) of such Act; and

(4) did not become an alien lawfully admitted for permanent

residence during fiscal year 1995.

(b) PRIORITY.—The aliens selected under subsection (a) shall

be considered to have been selected for diversity immigrant visas

for fiscal year 1997 prior to any alien selected under any other

provision of law.

(c) REDUCTION OF IMMIGRANT VISA NUMBER.—For purposes

of applying the numerical limitations in sections 201 and 203(c)

of the Immigration and Nationality Act, aliens selected under subsection (a) who are granted an immigrant visa shall be treated

as aliens granted a visa under section 203(c) of such Act.

Subtitle D—Other Provisions

SEC. 641. PROGRAM TO COLLECT INFORMATION RELATING TO NONIMMIGRANT FOREIGN STUDENTS AND OTHER EXCHANGE

PROGRAM PARTICIPANTS.

(a) IN GENERAL.—

(1) PROGRAM.—The Attorney General, in consultation with

the Secretary of State and the Secretary of Education, shall

develop and conduct a program to collect from approved institutions of higher education and designated exchange visitor programs in the United States the information described in subsection (c) with respect to aliens who—

(A) have the status, or are applying for the status,

of nonimmigrants under subparagraph (F), (J), or (M) of

section 101(a)(15) of the Immigration and Nationality Act;

and

(B) are nationals of the countries designated under

subsection (b).

(2) DEADLINE.—The program shall commence not later than

January 1, 1998.

8 USC 1372.

8 USC 1153 note.
110 STAT. 3009–705 PUBLIC LAW 104–208—SEPT. 30, 1996

(b) COVERED COUNTRIES.—The Attorney General, in consultation with the Secretary of State, shall designate countries for purposes of subsection (a)(1)(B). The Attorney General shall initially

designate not less than 5 countries and may designate additional

countries at any time while the program is being conducted.

(c) INFORMATION TO BE COLLECTED.—

(1) IN GENERAL.—The information for collection under subsection (a) with respect to an alien consists of—

(A) the identity and current address in the United

States of the alien;

(B) the nonimmigrant classification of the alien and

the date on which a visa under the classification was

issued or extended or the date on which a change to such

classification was approved by the Attorney General;

(C) in the case of a student at an approved institution

of higher education, the current academic status of the

alien, including whether the alien is maintaining status

as a full-time student or, in the case of a participant

in a designated exchange visitor program, whether the

alien is satisfying the terms and conditions of such program; and

(D) in the case of a student at an approved institution

of higher education, any disciplinary action taken by the

institution against the alien as a result of the alien’s being

convicted of a crime or, in the case of a participant in

a designated exchange visitor program, any change in the

alien’s participation as a result of the alien’s being convicted of a crime.

(2) FERPA.—The Family Educational Rights and Privacy

Act of 1974 shall not apply to aliens described in subsection

(a) to the extent that the Attorney General determines necessary to carry out the program under subsection (a).

(3) ELECTRONIC COLLECTION.—The information described

in paragraph (1) shall be collected electronically, where practicable.

(4) COMPUTER SOFTWARE.—

(A) COLLECTING INSTITUTIONS.—To the extent practicable, the Attorney General shall design the program

in a manner that permits approved institutions of higher

education and designated exchange visitor programs to use

existing software for the collection, storage, and data

processing of information described in paragraph (1).

(B) ATTORNEY GENERAL.—To the extent practicable,

the Attorney General shall use or enhance existing software

for the collection, storage, and data processing of information described in paragraph (1).

(d) PARTICIPATION BY INSTITUTIONS OF HIGHER EDUCATION AND

EXCHANGE VISITOR PROGRAMS.—

(1) CONDITION.—The information described in subsection

(c) shall be provided by as a condition of—

(A) in the case of an approved institution of higher

education, the continued approval of the institution under

subparagraph (F) or (M) of section 101(a)(15) of the

Immigration and Nationality Act; and

(B) in the case of an approved institution of higher

education or a designated exchange visitor program, the
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–706

granting of authority to issue documents to an alien demonstrating the alien’s eligibility for a visa under subparagraph (F), (J), or (M) of section 101(a)(15) of such Act.

(2) EFFECT OF FAILURE TO PROVIDE INFORMATION.—If an

approved institution of higher education or a designated

exchange visitor program fails to provide the specified information, such approvals and such issuance of visas shall be revoked

or denied.

(e) FUNDING.—

(1) IN GENERAL.—Beginning on April 1, 1997, an approved

institution of higher education and a designated exchange visitor program shall impose on, and collect from, each alien

described in paragraph (3), with respect to whom the institution

or program is required by subsection (a) to collect information,

a fee established by the Attorney General under paragraph

(4) at the time—

(A) when the alien first registers with the institution

or program after entering the United States; or

(B) in a case where a registration under subparagraph

(A) does not exist, when the alien first commences activities

in the United States with the institution or program.

(2) REMITTANCE.—An approved institution of higher education and a designated exchange visitor program shall remit

the fees collected under paragraph (1) to the Attorney General

pursuant to a schedule established by the Attorney General.

(3) ALIENS DESCRIBED.—An alien referred to in paragraph

(1) is an alien who has nonimmigrant status under subparagraph (F), (J), or (M) of section 101(a)(15) of the Immigration

and Nationality Act (other than a nonimmigrant under section

101(a)(15)(J) of such Act who has come to the United States

as a participant in a program sponsored by the Federal Government).

(4) AMOUNT AND USE OF FEES.—

(A) ESTABLISHMENT OF AMOUNT.—The Attorney General shall establish the amount of the fee to be imposed

on, and collected from, an alien under paragraph (1). Except

as provided in subsection (g)(2), the fee imposed on any

individual may not exceed $100. The amount of the fee

shall be based on the Attorney General’s estimate of the

cost per alien of conducting the information collection program described in this section.

(B) USE.—Fees collected under paragraph (1) shall be

deposited as offsetting receipts into the Immigration

Examinations Fee Account (established under section

286(m) of the Immigration and Nationality Act) and shall

remain available until expended for the Attorney General

to reimburse any appropriation the amount paid out of

which is for expenses in carrying out this section.

(f) JOINT REPORT.—Not later than 4 years after the commencement of the program established under subsection (a), the Attorney

General, the Secretary of State, and the Secretary of Education

shall jointly submit to the Committees on the Judiciary of the

Senate and the House of Representatives a report on the operations

of the program and the feasibility of expanding the program to

cover the nationals of all countries.

(g) WORLDWIDE APPLICABILITY OF THE PROGRAM.—

(1) EXPANSION OF PROGRAM.—
110 STAT. 3009–707 PUBLIC LAW 104–208—SEPT. 30, 1996

(A) IN GENERAL.—Not later than 6 months after the

submission of the report required by subsection (f), the

Attorney General, in consultation with the Secretary of

State and the Secretary of Education, shall commence

expansion of the program to cover the nationals of all

countries.

(B) DEADLINE.—Such expansion shall be completed not

later than 1 year after the date of the submission of the

report referred to in subsection (f).

(2) REVISION OF FEE.—After the program has been

expanded, as provided in paragraph (1), the Attorney General

may, on a periodic basis, revise the amount of the fee imposed

and collected under subsection (e) in order to take into account

changes in the cost of carrying out the program.

(h) DEFINITIONS.—As used in this section:

(1) APPROVED INSTITUTION OF HIGHER EDUCATION.—The

term ‘‘approved institution of higher education’’ means a college

or university approved by the Attorney General, in consultation

with the Secretary of Education, under subparagraph (F), (J),

or (M) of section 101(a)(15) of the Immigration and Nationality

Act.

(2) DESIGNATED EXCHANGE VISITOR PROGRAM.—The term

‘‘designated exchange visitor program’’ means a program that

has been—

(A) designated by the Director of the United States

Information Agency for purposes of section 101(a)(15)(J)

of the Immigration and Nationality Act; and

(B) selected by the Attorney General for purposes of

the program under this section.

SEC. 642. COMMUNICATION BETWEEN GOVERNMENT AGENCIES AND

THE IMMIGRATION AND NATURALIZATION SERVICE.

(a) IN GENERAL.—Notwithstanding any other provision of Federal, State, or local law, a Federal, State, or local government

entity or official may not prohibit, or in any way restrict, any

government entity or official from sending to, or receiving from,

the Immigration and Naturalization Service information regarding

the citizenship or immigration status, lawful or unlawful, of any

individual.

(b) ADDITIONAL AUTHORITY OF GOVERNMENT ENTITIES.—Notwithstanding any other provision of Federal, State, or local law,

no person or agency may prohibit, or in any way restrict, a Federal,

State, or local government entity from doing any of the following

with respect to information regarding the immigration status, lawful

or unlawful, of any individual:

(1) Sending such information to, or requesting or receiving

such information from, the Immigration and Naturalization

Service.

(2) Maintaining such information.

(3) Exchanging such information with any other Federal,

State, or local government entity.

(c) OBLIGATION TO RESPOND TO INQUIRIES.—The Immigration

and Naturalization Service shall respond to an inquiry by a Federal,

State, or local government agency, seeking to verify or ascertain

the citizenship or immigration status of any individual within the

jurisdiction of the agency for any purpose authorized by law, by

providing the requested verification or status information.

8 USC 1373.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–708

SEC. 643. REGULATIONS REGARDING HABITUAL RESIDENCE.

Not later than 6 months after the date of the enactment of

this Act, the Commissioner of Immigration and Naturalization shall

issue regulations governing rights of ‘‘habitual residence’’ in the

United States under the terms of the following:

(1) The Compact of Free Association between the Government of the United States and the Governments of the Marshall

Islands and the Federated States of Micronesia (48 U.S.C.

1901 note).

(2) The Compact of Free Association between the Government of the United States and the Government of Palau (48

U.S.C. 1931 note).

SEC. 644. INFORMATION REGARDING FEMALE GENITAL MUTILATION.

(a) PROVISION OF INFORMATION REGARDING FEMALE GENITAL

MUTILATION.—The Immigration and Naturalization Service (in

cooperation with the Department of State) shall make available

for all aliens who are issued immigrant or nonimmigrant visas,

prior to or at the time of entry into the United States, the following

information:

(1) Information on the severe harm to physical and psychological health caused by female genital mutilation which is

compiled and presented in a manner which is limited to the

practice itself and respectful to the cultural values of the societies in which such practice takes place.

(2) Information concerning potential legal consequences in

the United States for (A) performing female genital mutilation,

or (B) allowing a child under his or her care to be subjected

to female genital mutilation, under criminal or child protection

statutes or as a form of child abuse.

(b) LIMITATION.—In consultation with the Secretary of State,

the Commissioner of Immigration and Naturalization shall identify

those countries in which female genital mutilation is commonly

practiced and, to the extent practicable, limit the provision of

information under subsection (a) to aliens from such countries.

(c) DEFINITION.—For purposes of this section, the term ‘‘female

genital mutilation’’ means the removal or infibulation (or both)

of the whole or part of the clitoris, the labia minora, or labia

majora.

SEC. 645. CRIMINALIZATION OF FEMALE GENITAL MUTILATION.

(a) FINDINGS.—The Congress finds that—

(1) the practice of female genital mutilation is carried out

by members of certain cultural and religious groups within

the United States;

(2) the practice of female genital mutilation often results

in the occurrence of physical and psychological health effects

that harm the women involved;

(3) such mutilation infringes upon the guarantees of rights

secured by Federal and State law, both statutory and constitutional;

(4) the unique circumstances surrounding the practice of

female genital mutilation place it beyond the ability of any

single State or local jurisdiction to control;

(5) the practice of female genital mutilation can be prohibited without abridging the exercise of any rights guaranteed

18 USC 116 note.

8 USC 1374.

48 USC 1901

note.
110 STAT. 3009–709 PUBLIC LAW 104–208—SEPT. 30, 1996

under the first amendment to the Constitution or under any

other law; and

(6) Congress has the affirmative power under section 8

of article I, the necessary and proper clause, section 5 of the

fourteenth Amendment, as well as under the treaty clause,

to the Constitution to enact such legislation.

(b) CRIME.—

(1) IN GENERAL.—Chapter 7 of title 18, United States Code,

is amended by adding at the end the following:

‘‘§ 116. Female genital mutilation

‘‘(a) Except as provided in subsection (b), whoever knowingly

circumcises, excises, or infibulates the whole or any part of the

labia majora or labia minora or clitoris of another person who

has not attained the age of 18 years shall be fined under this

title or imprisoned not more than 5 years, or both.

‘‘(b) A surgical operation is not a violation of this section if

the operation is—

‘‘(1) necessary to the health of the person on whom it

is performed, and is performed by a person licensed in the

place of its performance as a medical practitioner; or

‘‘(2) performed on a person in labor or who has just given

birth and is performed for medical purposes connected with

that labor or birth by a person licensed in the place it is

performed as a medical practitioner, midwife, or person in

training to become such a practitioner or midwife.

‘‘(c) In applying subsection (b)(1), no account shall be taken

of the effect on the person on whom the operation is to be performed

of any belief on the part of that person, or any other person,

that the operation is required as a matter of custom or ritual.’’.

(2) CONFORMING AMENDMENT.—The table of sections at

the beginning of chapter 7 of title 18, United States Code,

is amended by adding at the end the following new item:

‘‘116. Female genital mutilation.’’.

(c) EFFECTIVE DATE.—The amendments made by subsection

(b) shall take effect on the date that is 180 days after the date

of the enactment of this Act.

SEC. 646. ADJUSTMENT OF STATUS FOR CERTAIN POLISH AND

HUNGARIAN PAROLEES.

(a) IN GENERAL.—The Attorney General shall adjust the status

of an alien described in subsection (b) to that of an alien lawfully

admitted for permanent residence if the alien—

(1) applies for such adjustment;

(2) has been physically present in the United States for

at least 1 year and is physically present in the United States

on the date the application for such adjustment is filed;

(3) is admissible to the United States as an immigrant,

except as provided in subsection (c); and

(4) pays a fee (determined by the Attorney General) for

the processing of such application.

(b) ALIENS ELIGIBLE FOR ADJUSTMENT OF STATUS.—The benefits

provided in subsection (a) shall only apply to an alien who—

(1) was a national of Poland or Hungary; and

8 USC 1255 note.

18 USC 116 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–710

(2) was inspected and granted parole into the United States

during the period beginning on November 1, 1989, and ending

on December 31, 1991, after being denied refugee status.

(c) WAIVER OF CERTAIN GROUNDS FOR INADMISSIBILITY.—The

provisions of paragraphs (4), (5), and (7)(A) of section 212(a) of

the Immigration and Nationality Act shall not apply to adjustment

of status under this section and the Attorney General may waive

any other provision of such section (other than paragraph (2)(C)

and subparagraphs (A), (B), (C), or (E) of paragraph (3)) with

respect to such an adjustment for humanitarian purposes, to assure

family unity, or when it is otherwise in the public interest.

(d) DATE OF APPROVAL.—Upon the approval of such an application for adjustment of status, the Attorney General shall create

a record of the alien’s admission as an alien lawfully admitted

for permanent residence as of the date of the alien’s inspection

and parole described in subsection (b)(2).

(e) NO OFFSET IN NUMBER OF VISAS AVAILABLE.—When an

alien is granted the status of having been lawfully admitted for

permanent residence under this section, the Secretary of State

shall not be required to reduce the number of immigrant visas

authorized to be issued under the Immigration and Nationality

Act.

SEC. 647. SUPPORT OF DEMONSTRATION PROJECTS.

(a) IN GENERAL.—The Attorney General shall make available

funds under this section, in each of fiscal years 1997 through

2001, to the Commissioner of Immigration and Naturalization or

to other public or private nonprofit entities to support demonstration projects under this section at 10 sites throughout the United

States. Each such project shall be designed to provide for the

administration of the oath of allegiance under section 337(a) of

the Immigration and Nationality Act on a business day around

Independence Day to approximately 500 people whose application

for naturalization has been approved. Each project shall provide

for appropriate outreach and ceremonial and celebratory activities.

(b) SELECTION OF SITES.—The Attorney General shall, in the

Attorney General’s discretion, select diverse locations for sites on

the basis of the number of naturalization applicants living in

proximity to each site and the degree of local community participation and support in the project to be held at the site. Not more

than 2 sites may be located in the same State. The Attorney

General shall consider changing the sites selected from year to

year.

(c) AMOUNTS AVAILABLE; USE OF FUNDS.—

(1) AMOUNT.—The amount made available under this section with respect to any single site for a year shall not exceed

$5,000.

(2) USE.—Funds made available under this section may

be used only to cover expenses incurred in carrying out oath

administration ceremonies at the demonstration sites under

subsection (a), including expenses for—

(A) cost of personnel of the Immigration and Naturalization Service (including travel and overtime expenses);

(B) rental of space; and

(C) costs of printing appropriate brochures and other

information about the ceremonies.

8 USC 1448 note.
110 STAT. 3009–711 PUBLIC LAW 104–208—SEPT. 30, 1996

(3) AVAILABILITY OF FUNDS.—Funds that are otherwise

available to the Immigration and Naturalization Service to

carry out naturalization activities shall be available, to the

extent provided in appropriation Acts, to carry out this section.

(d) APPLICATION.—In the case of an entity other than the

Immigration and Naturalization Service seeking to conduct a demonstration project under this section, no amounts may be made

available to the entity under this section unless an appropriate

application has been made to, and approved by, the Attorney General, in a form and manner specified by the Attorney General.

SEC. 648. SENSE OF CONGRESS REGARDING AMERICAN-MADE PRODUCTS; REQUIREMENTS REGARDING NOTICE.

(a) PURCHASE OF AMERICAN-MADE EQUIPMENT AND PRODUCTS.—It is the sense of the Congress that, to the greatest extent

practicable, all equipment and products purchased with funds made

available under this division should be American-made.

(b) NOTICE TO RECIPIENTS OF GRANTS.—In providing grants

under this division, the Attorney General, to the greatest extent

practicable, shall provide to each recipient of a grant a notice

describing the statement made in subsection (a) by the Congress.

SEC. 649. VESSEL MOVEMENT CONTROLS DURING IMMIGRATION

EMERGENCY.

Section 1 of the Act of June 15, 1917 (50 U.S.C. 191) is amended

in the first sentence by inserting ‘‘or whenever the Attorney General

determines that an actual or anticipated mass migration of aliens

en route to, or arriving off the coast of, the United States presents

urgent circumstances requiring an immediate Federal response,’’

after ‘‘United States,’’ the first place such term appears.

SEC. 650. REVIEW OF PRACTICES OF TESTING ENTITIES.

(a) IN GENERAL.—The Attorney General shall investigate, and

submit a report to the Committees on the Judiciary of the House

of Representatives and of the Senate regarding, the practices of

entities authorized to administer standardized citizenship tests

pursuant to section 312.3(a) of title 8, Code of Federal Regulations.

The report shall include any findings of fraudulent practices by

such entities.

(b) PRELIMINARY AND FINAL REPORTS.—Not later than 90 days

after the date of the enactment of this Act, the Attorney General

shall submit to the Committees on the Judiciary of the House

of Representatives and of the Senate a preliminary report on the

investigation conducted under subsection (a). The Attorney General

shall submit to such Committees a final report on such investigation

not later than 275 days after the submission of the preliminary

report.

SEC. 651. DESIGNATION OF A UNITED STATES CUSTOMS ADMINISTRATIVE BUILDING.

(a) DESIGNATION.—The United States Customs Administrative

Building at the Ysleta/Zaragosa Port of Entry located at 797 South

Zaragosa Road in El Paso, Texas, is designated as the ‘‘Timothy

C. McCaghren Customs Administrative Building’’.

(b) LEGAL REFERENCES.—Any reference in any law, regulation,

document, record, map, or other paper of the United States to

the building referred to in subsection (a) is deemed to be a reference

to the ‘‘Timothy C. McCaghren Customs Administrative Building’’.

8 USC 1101 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–712

SEC. 652. MAIL-ORDER BRIDE BUSINESS.

(a) FINDINGS.—The Congress finds as follows:

(1) There is a substantial ‘‘mail-order bride’’ business in

the United States. With approximately 200 companies in the

United States, an estimated 2,000 to 3,500 men in the United

States find wives through mail-order bride catalogs each year.

However, there are no official statistics available on the number

of mail-order brides entering the United States each year.

(2) The companies engaged in the mail-order bride business

earn substantial profits.

(3) Although many of these mail-order marriages work

out, in many other cases, anecdotal evidence suggests that

mail-order brides find themselves in abusive relationships.

There is also evidence to suggest that a substantial number

of mail-order marriages are fraudulent under United States

law.

(4) Many mail-order brides come to the United States

unaware or ignorant of United States immigration law. Mailorder brides who are battered often think that if they flee

an abusive marriage, they will be deported. Often the citizen

spouse threatens to have them deported if they report the

abuse.

(5) The Immigration and Naturalization Service estimates

that the rate of marriage fraud between foreign nationals and

United States citizens or aliens lawfully admitted for permanent residence is 8 percent. It is unclear what percentage

of these marriage fraud cases originate as mail-order marriages.

(b) INFORMATION DISSEMINATION.—

(1) REQUIREMENT.—Each international matchmaking

organization doing business in the United States shall disseminate to recruits, upon recruitment, such immigration and naturalization information as the Immigration and Naturalization

Service deems appropriate, in the recruit’s native language,

including information regarding conditional permanent residence status and the battered spouse waiver under such status,

permanent resident status, marriage fraud penalties, the

unregulated nature of the business engaged in by such

organizations, and the study required under subsection (c).

(2) CIVIL PENALTY.—

(A) VIOLATION.—Any international matchmaking

organization that the Attorney General determines has

violated subsection (b) shall be subject, in addition to any

other penalties that may be prescribed by law, to a civil

money penalty of not more than $20,000 for each such

violation.

(B) PROCEDURES FOR IMPOSITION OF PENALTY.—Any

penalty under subparagraph (A) may be imposed only after

notice and opportunity for an agency hearing on the record

in accordance with sections 554 through 557 of title 5,

United States Code.

(c) STUDY.—The Attorney General, in consultation with the

Commissioner of Immigration and Naturalization and the Director

of the Violence Against Women Initiative of the Department of

Justice, shall conduct a study of mail-order marriages to determine,

among other things—

(1) the number of such marriages;

8 USC 1375.
110 STAT. 3009–713 PUBLIC LAW 104–208—SEPT. 30, 1996

(2) the extent of marriage fraud in such marriages, including an estimate of the extent of marriage fraud arising from

the services provided by international matchmaking organizations;

(3) the extent to which mail-order spouses utilize section

244(a)(3) of the Immigration and Nationality Act (providing

for suspension of deportation in certain cases involving abuse),

or section 204(a)(1)(A)(iii) of such Act (providing for certain

aliens who have been abused to file a classification petition

on their own behalf);

(4) the extent of domestic abuse in mail-order marriages;

and

(5) the need for continued or expanded regulation and

education to implement the objectives of the Violence Against

Women Act of 1994 and the Immigration Marriage Fraud

Amendments of 1986 with respect to mail-order marriages.

(d) REPORT.—Not later than 1 year after the date of the enactment of this Act, the Attorney General shall submit a report to

the Committees on the Judiciary of the House of Representatives

and of the Senate setting forth the results of the study conducted

under subsection (c).

(e) DEFINITIONS.—As used in this section:

(1) INTERNATIONAL MATCHMAKING ORGANIZATION.—

(A) IN GENERAL.—The term ‘‘international matchmaking organization’’ means a corporation, partnership,

business, or other legal entity, whether or not organized

under the laws of the United States or any State, that

does business in the United States and for profit offers

to United States citizens or aliens lawfully admitted for

permanent residence, dating, matrimonial, or social referral

services to nonresident noncitizens, by—

(i) an exchange of names, telephone numbers,

addresses, or statistics;

(ii) selection of photographs; or

(iii) a social environment provided by the organization in a country other than the United States.

(B) EXCEPTION.—Such term does not include a traditional matchmaking organization of a religious nature that

otherwise operates in compliance with the laws of the

countries of the recruits of such organization and the laws

of the United States.

(2) RECRUIT.—The term ‘‘recruit’’ means a noncitizen, nonresident person, recruited by the international matchmaking

organization for the purpose of providing dating, matrimonial,

or social referral services to United States citizens or aliens

lawfully admitted for permanent residence.

SEC. 653. REVIEW AND REPORT ON H–2A NONIMMIGRANT WORKERS

PROGRAM.

(a) SENSE OF THE CONGRESS.—It is the sense of the Congress

that the H2–A nonimmigrant worker program should be reviewed

and may need improvement in order to meet the need of producers

of labor-intensive agricultural commodities and livestock in the

United States for an adequate workforce.

(b) REVIEW.—The Comptroller General shall review the

effectiveness of the H–2A nonimmigrant worker program to ensure

that the program provides a sufficient supply of agricultural labor
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–714

in the event of future shortages of domestic workers after the

enactment of this Act. Among other things, the Comptroller General

shall review the H–2A nonimmigrant worker program to determine—

(1) whether the program ensures that an adequate supply

of qualified United States workers is available at the time

and place needed for employers seeking such workers after

the date of enactment of this Act;

(2) whether the program ensures that there is timely

approval of applications for temporary foreign workers under

the program in the event of shortages of United States workers

after the date of the enactment of this Act;

(3) whether the program ensures that implementation of

the program is not displacing United States agricultural workers or diminishing the terms and conditions of employment

of United States agricultural workers;

(4) if, and to what extent, the program is contributing

to the problem of illegal immigration; and

(5) that the program adequately meets the needs of agricultural employers for all types of temporary foreign agricultural

workers, including higher-skilled workers in occupations which

require a level of specific vocational preparation of 4 or higher

(as described in the 4th edition of the Dictionary of Occupational

Title, published by the Department of Labor).

(c) REPORT.—Not later than December 31, 1996, or 3 months

after the date of the enactment of this Act, whichever occurs earlier,

the Comptroller General shall submit a report to the appropriate

committees of the Congress setting forth the conclusions of the

Comptroller General from the review conducted under subsection

(b).

(d) DEFINITIONS.—As used in this section:

(1) The term ‘‘Comptroller General’’ means the Comptroller

General of the United States.

(2) The term ‘‘H–2A nonimmigrant worker program’’ means

the program for the admission of nonimmigrant aliens described

in section 101(a)(15)(H)(ii)(a) of the Immigration and Nationality Act.

SEC. 654. REPORT ON ALLEGATIONS OF HARASSMENT BY CANADIAN

CUSTOMS AGENTS.

(a) STUDY AND REVIEW.—

(1) IN GENERAL.—Not later than 30 days after the date

of the enactment of this Act, the Commissioner of the United

States Customs Service shall initiate a study of harassment

by Canadian customs agents allegedly undertaken for the purpose of deterring cross-border commercial activity along the

United States-New Brunswick border. Such study shall include

a review of the possible connection between any incidents of

harassment and the discriminatory imposition of the New

Brunswick provincial sales tax on goods purchased in the

United States by New Brunswick residents, and with any other

actions taken by the Canadian provincial governments to deter

cross-border commercial activities.

(2) CONSULTATION.—In conducting the study under paragraph (1), the Commissioner of the United States Customs

Service shall consult with representatives of the State of Maine,
110 STAT. 3009–715 PUBLIC LAW 104–208—SEPT. 30, 1996

local governments, local businesses, and any other knowledgeable persons who the Commissioner considers to be important

to the completion of the study.

(b) REPORT.—Not later than 120 days after the date of the

enactment of this Act, the Commissioner of the United States

Customs Service shall submit to the Committees on the Judiciary

of the House of Representatives and of the Senate a report on

the study and review conducted under subsection (a). The report

shall include recommendations for steps that the United States

Government can take to help end any harassment by Canadian

customs agents that is found to have occurred.

SEC. 655. SENSE OF CONGRESS ON DISCRIMINATORY APPLICATION

OF NEW BRUNSWICK PROVINCIAL SALES TAX.

(a) FINDINGS.—The Congress finds as follows:

(1) In July 1993, Canadian customs officers began collecting

an 11 percent New Brunswick provincial sales tax on goods

purchased in the United States by New Brunswick residents,

an action that has caused severe economic harm to United

States businesses located in proximity to the border with New

Brunswick.

(2) This impediment to cross-border trade compounds the

damage already done from the Canadian Government’s imposition of a 7 percent tax on all goods bought by Canadians

in the United States.

(3) Collection of the New Brunswick provincial sales tax

on goods purchased outside of New Brunswick is effected only

along the United States-Canadian border, not along New Brunswick’s borders with other Canadian provinces; the tax is thus

being administered by Canadian authorities in a manner

uniquely discriminatory to Canadians shopping in the United

States.

(4) In February 1994, the United States Trade Representative publicly stated an intention to seek redress from the

discriminatory application of the New Brunswick provincial

sales tax under the dispute resolution process in chapter 20

of the North American Free Trade Agreement (NAFTA), but

the United States Government has still not made such a claim

under NAFTA procedures.

(5) Initially, the United States Trade Representative argued

that filing a New Brunswick provincial sales tax claim was

delayed only because the dispute mechanism under NAFTA

had not yet been finalized, but more than a year after such

mechanism has been put in place, the claim has still not been

put forward by the United States Trade Representative.

(b) SENSE OF CONGRESS.—It is the sense of the Congress that—

(1) the provincial sales tax levied by the Canadian province

of New Brunswick on Canadian citizens of that province who

purchase goods in the United States—

(A) raises questions about a possible violation of the

North American Free Trade Agreement in the discriminatory application of the tax to cross-border trade with the

United States; and

(B) damages good relations between the United States

and Canada; and

(2) the United States Trade Representative should move

forward without further delay in seeking redress under the
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–716

dispute resolution process in chapter 20 of the North American

Free Trade Agreement for the violation.

SEC. 656. IMPROVEMENTS IN IDENTIFICATION-RELATED DOCUMENTS.

(a) BIRTH CERTIFICATES.—

(1) STANDARDS FOR ACCEPTANCE BY FEDERAL AGENCIES.—

(A) IN GENERAL.—

(i) GENERAL RULE.—Subject to clause (ii), a Federal

agency may not accept for any official purpose a certificate of birth, unless the certificate—

(I) is a birth certificate (as defined in paragraph (3)); and

(II) conforms to the standards set forth in

the regulation promulgated under subparagraph

(B).

(ii) APPLICABILITY.—Clause (i) shall apply only to

a certificate of birth issued after the day that is 3

years after the date of the promulgation of a final

regulation under subparagraph (B). Clause (i) shall

not be construed to prevent a Federal agency from

accepting for official purposes any certificate of birth

issued on or before such day.

(B) REGULATION.—

(i) CONSULTATION WITH GOVERNMENT AGENCIES.—

The President shall select 1 or more Federal agencies

to consult with State vital statistics offices, and with

other appropriate Federal agencies designated by the

President, for the purpose of developing appropriate

standards for birth certificates that may be accepted

for official purposes by Federal agencies, as provided

in subparagraph (A).

(ii) SELECTION OF LEAD AGENCY.—Of the Federal

agencies selected under clause (i), the President shall

select 1 agency to promulgate, upon the conclusion

of the consultation conducted under such clause, a

regulation establishing standards of the type described

in such clause.

(iii) DEADLINE.—The agency selected under clause

(ii) shall promulgate a final regulation under such

clause not later than the date that is 1 year after

the date of the enactment of this Act.

(iv) MINIMUM REQUIREMENTS.—The standards

established under this subparagraph—

(I) at a minimum, shall require certification

of the birth certificate by the State or local custodian of record that issued the certificate, and shall

require the use of safety paper, the seal of the

issuing custodian of record, and other features

designed to limit tampering, counterfeiting, and

photocopying, or otherwise duplicating, the birth

certificate for fraudulent purposes;

(II) may not require a single design to which

birth certificates issued by all States must conform; and

(III) shall accommodate the differences

between the States in the manner and form in

5 USC 301 note.
110 STAT. 3009–717 PUBLIC LAW 104–208—SEPT. 30, 1996

which birth records are stored and birth certificates are produced from such records.

(2) GRANTS TO STATES.— (A) ASSISTANCE IN MEETING FEDERAL STANDARDS.—

(i) IN GENERAL.—Beginning on the date a final

regulation is promulgated under paragraph (1)(B), the

Secretary of Health and Human Services, acting

through the Director of the National Center for Health

Statistics and after consulting with the head of any

other agency designated by the President, shall make

grants to States to assist them in issuing birth certificates that conform to the standards set forth in the

regulation.

(ii) ALLOCATION OF GRANTS.—The Secretary shall

provide grants to States under this subparagraph in

proportion to the populations of the States applying

to receive a grant and in an amount needed to provide

a substantial incentive for States to issue birth certificates that conform to the standards described in clause

(i).

(B) ASSISTANCE IN MATCHING BIRTH AND DEATH

RECORDS.—

(i) IN GENERAL.—The Secretary of Health and

Human Services, acting through the Director of the

National Center for Health Statistics and after consulting with the head of any other agency designated by

the President, shall make grants to States to assist

them in developing the capability to match birth and

death records, within each State and among the States,

and to note the fact of death on the birth certificates

of deceased persons. In developing the capability

described in the preceding sentence, a State that

receives a grant under this subparagraph shall focus

first on individuals born after 1950.

(ii) ALLOCATION AND AMOUNT OF GRANTS.—The

Secretary shall provide grants to States under this

subparagraph in proportion to the populations of the

States applying to receive a grant and in an amount

needed to provide a substantial incentive for States

to develop the capability described in clause (i).

(C) DEMONSTRATION PROJECTS.—The Secretary of

Health and Human Services, acting through the Director

of the National Center for Health Statistics, shall make

grants to States for a project in each of 5 States to demonstrate the feasibility of a system under which persons

otherwise required to report the death of individuals to

a State would be required to provide to the State’s office

of vital statistics sufficient information to establish the

fact of death of every individual dying in the State within

24 hours of acquiring the information.

(3) BIRTH CERTIFICATE.—As used in this subsection, the

term ‘‘birth certificate’’ means a certificate of birth—

(A) of—

(i) an individual born in the United States; or

(ii) an individual born abroad—

(I) who is a citizen or national of the United

States at birth; and
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–718

(II) whose birth is registered in the United

States; and

(B) that—

(i) is a copy, issued by a State or local authorized

custodian of record, of an original certificate of birth

issued by such custodian of record; or

(ii) was issued by a State or local authorized custodian of record and was produced from birth records

maintained by such custodian of record.

(b) STATE-ISSUED DRIVERS LICENSES AND COMPARABLE IDENTIFICATION DOCUMENTS.—

(1) STANDARDS FOR ACCEPTANCE BY FEDERAL AGENCIES.—

(A) IN GENERAL.—A Federal agency may not accept

for any identification-related purpose a driver’s license,

or other comparable identification document, issued by a

State, unless the license or document satisfies the following

requirements:

(i) APPLICATION PROCESS.—The application process

for the license or document shall include the presentation of such evidence of identity as is required by

regulations promulgated by the Secretary of Transportation after consultation with the American Association

of Motor Vehicle Administrators.

(ii) SOCIAL SECURITY NUMBER.—Except as provided

in subparagraph (B), the license or document shall

contain a social security account number that can be

read visually or by electronic means.

(iii) FORM.—The license or document otherwise

shall be in a form consistent with requirements set

forth in regulations promulgated by the Secretary of

Transportation after consultation with the American

Association of Motor Vehicle Administrators. The form

shall contain security features designed to limit

tampering, counterfeiting, photocopying, or otherwise

duplicating, the license or document for fraudulent

purposes and to limit use of the license or document

by impostors.

(B) EXCEPTION.—The requirement in subparagraph

(A)(ii) shall not apply with respect to a driver’s license

or other comparable identification document issued by a

State, if the State—

(i) does not require the license or document to

contain a social security account number; and

(ii) requires—

(I) every applicant for a driver’s license, or

other comparable identification document, to submit the applicant’s social security account number;

and

(II) an agency of the State to verify with the

Social Security Administration that such account

number is valid.

(C) DEADLINE.—The Secretary of Transportation shall

promulgate the regulations referred to in clauses (i) and

(iii) of subparagraph (A) not later than 1 year after the

date of the enactment of this Act.

(2) GRANTS TO STATES.—Beginning on the date final regulations are promulgated under paragraph (1), the Secretary of
110 STAT. 3009–719 PUBLIC LAW 104–208—SEPT. 30, 1996

Transportation shall make grants to States to assist them

in issuing driver’s licenses and other comparable identification

documents that satisfy the requirements under such paragraph.

(3) EFFECTIVE DATES.—

(A) IN GENERAL.—Except as otherwise provided in this

paragraph, this subsection shall take effect on the date

of the enactment of this Act.

(B) PROHIBITION ON FEDERAL AGENCIES.—Subparagraphs (A) and (B) of paragraph (1) shall take effect beginning on October 1, 2000, but shall apply only to licenses

or documents issued to an individual for the first time

and to replacement or renewal licenses or documents issued

according to State law.

(c) REPORT.—Not later than 1 year after the date of the enactment of this Act, the Secretary of Health and Human Services

shall submit a report to the Congress on ways to reduce the fraudulent obtaining and the fraudulent use of birth certificates, including

any such use to obtain a social security account number or a

State or Federal document related to identification or immigration.

(d) FEDERAL AGENCY DEFINED.—For purposes of this section,

the term ‘‘Federal agency’’ means any of the following:

(1) An Executive agency (as defined in section 105 of title

5, United States Code).

(2) A military department (as defined in section 102 of

such title).

(3) An agency in the legislative branch of the Government

of the United States.

(4) An agency in the judicial branch of the Government

of the United States.

SEC. 657. DEVELOPMENT OF PROTOTYPE OF COUNTERFEIT-RESISTANT SOCIAL SECURITY CARD.

(a) DEVELOPMENT.—

(1) IN GENERAL.—The Commissioner of Social Security (in

this section referred to as the ‘‘Commissioner’’) shall, in accordance with the provisions of this section, develop a prototype

of a counterfeit-resistant social security card. Such prototype

card—

(A) shall be made of a durable, tamper-resistant material such as plastic or polyester;

(B) shall employ technologies that provide security features, such as magnetic stripes, holograms, and integrated

circuits; and

(C) shall be developed so as to provide individuals

with reliable proof of citizenship or legal resident alien

status.

(2) ASSISTANCE BY ATTORNEY GENERAL.—The Attorney General shall provide such information and assistance as the

Commissioner deems necessary to achieve the purposes of this

section.

(b) STUDIES AND REPORTS.—

(1) IN GENERAL.—The Comptroller General and the

Commissioner of Social Security shall each conduct a study,

and issue a report to the Congress, that examines different

methods of improving the social security card application process.

42 USC 405 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–720

(2) ELEMENTS OF STUDIES.—The studies shall include

evaluations of the cost and work load implications of issuing

a counterfeit-resistant social security card for all individuals

over a 3, 5, and 10 year period. The studies shall also evaluate

the feasibility and cost implications of imposing a user fee

for replacement cards and cards issued to individuals who

apply for such a card prior to the scheduled 3, 5, and 10

year phase-in options.

(3) DISTRIBUTION OF REPORTS.—Copies of the reports

described in this subsection, along with facsimiles of the prototype cards as described in subsection (a), shall be submitted

to the Committees on Ways and Means and Judiciary of the

House of Representatives and the Committees on Finance and

Judiciary of the Senate not later than 1 year after the date

of the enactment of this Act.

SEC. 658. BORDER PATROL MUSEUM.

(a) AUTHORITY.—Notwithstanding section 203 of the Federal

Property and Administrative Services Act of 1949 (40 U.S.C. 484)

or any other provision of law, the Attorney General is authorized

to transfer and convey to the Border Patrol Museum and Memorial

Library Foundation, incorporated in the State of Texas, such equipment, artifacts, and memorabilia held by the Immigration and

Naturalization Service as the Attorney General may determine

is necessary to further the purposes of the Museum and Foundation.

(b) TECHNICAL ASSISTANCE.—The Attorney General is authorized to provide technical assistance, through the detail of personnel

of the Immigration and Naturalization Service, to the Border Patrol

Museum and Memorial Library Foundation for the purpose of demonstrating the use of the items transferred under subsection (a).

SEC. 659. SENSE OF THE CONGRESS REGARDING THE MISSION OF

THE IMMIGRATION AND NATURALIZATION SERVICE.

It is the sense of the Congress that the mission statement

of the Immigration and Naturalization Service should include a

statement that it is the responsibility of the Service to detect,

apprehend, and remove those aliens unlawfully present in the

United States, particularly those aliens involved in drug trafficking

or other criminal activity.

SEC. 660. AUTHORITY FOR NATIONAL GUARD TO ASSIST IN TRANSPORTATION OF CERTAIN ALIENS.

Section 112(d)(1) of title 32, United States Code, is amended

by adding at the end the following new sentence: ‘‘The plan as

approved by the Secretary may provide for the use of personnel

and equipment of the National Guard of that State to assist the

Immigration and Naturalization Service in the transportation of

aliens who have violated a Federal or State law prohibiting or

regulating the possession, use, or distribution of a controlled substance.’’.

Subtitle E—Technical Corrections

SEC. 671. MISCELLANEOUS TECHNICAL CORRECTIONS.

(a) AMENDMENTS RELATING TO PUBLIC LAW 103–322 (VIOLENT

CRIME CONTROL AND LAW ENFORCEMENT ACT OF 1994).—
110 STAT. 3009–721 PUBLIC LAW 104–208—SEPT. 30, 1996

(1) Section 60024(1)(F) of the Violent Crime Control and

Law Enforcement Act of 1994 (Public Law 103–322) (in this

subsection referred to as ‘‘VCCLEA’’) is amended by inserting

‘‘United States Code,’’ after ‘‘title 18,’’.

(2) Section 130003(b)(3) of VCCLEA is amended by striking

‘‘Naturalization’’ and inserting ‘‘Nationality’’.

(3)(A) Section 214 (8 U.S.C. 1184) is amended by

redesignating the subsection (j), added by section 130003(b)(2)

of VCCLEA (108 Stat. 2025), and the subsection (k), as amended

by section 622(c) of this division, as subsections (k) and (l),

respectively.

(B) Section 101(a)(15)(S) (8 U.S.C. 1101(a)(15)(S)) is amended by striking ‘‘214(j)’’ and inserting ‘‘214(k)’’.

(4)(A) Section 245 (8 U.S.C. 1255) is amended by

redesignating the subsection (i) added by section 130003(c)(1)

of VCCLEA as subsection (j).

(B) Section 241(a)(2)(A)(i)(I) (8 U.S.C. 1251(a)(2)(A)(i)(I)),

as amended by section 130003(d) of VCCLEA and before

redesignation by section 305(a)(2) of this division, is amended

by striking ‘‘245(i)’’ and inserting ‘‘245(j)’’.

(5) Section 245(j)(3), as added by section 130003(c)(1) of

VCCLEA and as redesignated by paragraph (4)(A), is amended

by striking ‘‘paragraphs (1) or (2)’’ and inserting ‘‘paragraph

(1) or (2)’’.

(6) Section 130007(a) of VCCLEA is amended by striking

‘‘242A(d)’’ and inserting ‘‘242A(a)(3)’’.

(7) The amendments made by this subsection shall be

effective as if included in the enactment of the VCCLEA.

(b) AMENDMENTS RELATING TO IMMIGRATION AND NATIONALITY

TECHNICAL CORRECTIONS ACT OF 1994.—

(1) Section 101(d) of the Immigration and Nationality Technical Corrections Act of 1994 (Public Law 103–416) (in this

subsection referred to as ‘‘INTCA’’) is amended—

(A) by striking ‘‘APPLICATION’’ and all that follows

through ‘‘This’’ and inserting ‘‘APPLICABILITY OF TRANSMISSION REQUIREMENTS.—This’’;

(B) by striking ‘‘any residency or other retention

requirements for’’ and inserting ‘‘the application of any

provision of law relating to residence or physical presence

in the United States for purposes of transmitting United

States’’; and

(C) by striking ‘‘as in effect’’ and all that follows

through the end and inserting ‘‘to any person whose claim

is based on the amendment made by subsection (a) or

through whom such a claim is derived.’’.

(2) Section 102 of INTCA is amended by adding at the

end the following:

‘‘(e) TRANSITION.—In applying the amendment made by subsection (a) to children born before November 14, 1986, any reference

in the matter inserted by such amendment to ‘five years, at least

two of which’ is deemed a reference to ‘10 years, at least 5 of

which’.’’.

(3) Section 351(a) (8 U.S.C. 1483(a)), as amended by section

105(a)(2)(A) of INTCA, is amended by striking the comma after

‘‘nationality’’.

(4) Section 207(2) of INTCA is amended by inserting a

comma after ‘‘specified’’.

8 USC 1255b.

8 USC 1433 note.

8 USC 1401 note.

8 USC 1101 note.

8 USC 1252 note.

8 USC 1255.

8 USC 1258.

8 USC 1324.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–722

(5) Section 101(a)(43) (8 U.S.C. 1101(a)(43)) is amended

in subparagraph (K)(ii), by striking the comma after ‘‘1588’’.

(6) Section 273(b) (8 U.S.C. 1323(b)), as amended by section

209(a) of INTCA, is amended by striking ‘‘remain’’ and inserting

‘‘remains’’.

(7) Section 209(a)(1) of INTCA is amended by striking ‘‘$3000’’ and inserting ‘‘$3,000’’.

(8) Section 209(b) of INTCA is amended by striking ‘‘subsection’’ and inserting ‘‘section’’.

(9) Section 219(cc) of INTCA is amended by striking ‘‘

‘year 1993 the first place it appears’ ’’ and inserting ‘‘ ‘year

1993’ the first place it appears’’.

(10) Section 219(ee) of INTCA is amended by adding at

the end the following:

‘‘(3) The amendments made by this subsection shall take effect

on the date of the enactment of this Act.’’.

(11) Paragraphs (4) and (6) of section 286(r) (8 U.S.C.

1356(r)) are amended by inserting ‘‘the’’ before ‘‘Fund’’ each

place it appears.

(12) Section 221 of INTCA is amended—

(A) by striking each semicolon and inserting a comma,

(B) by striking ‘‘disasters.’’ and inserting ‘‘disasters,’’;

and

(C) by striking ‘‘The official’’ and inserting ‘‘the official’’.

(13) Section 242A (8 U.S.C. 1252a), as added by section

224(a) of INTCA and before redesignation as section 238 by

section 308(b)(5) of this division, is amended by redesignating

subsection (d) as subsection (c).

(14) Except as otherwise provided in this subsection, the

amendments made by this subsection shall take effect as if

included in the enactment of INTCA.

(c) AMENDMENTS RELATING TO PUBLIC LAW 104–132

(ANTITERRORISM AND EFFECTIVE DEATH PENALTY ACT OF 1996).—

(1) Section 219 (8 U.S.C. 1189), as added by section 302(a)

of Antiterrorism and Effective Death Penalty Act of 1996 (Public

Law 104–132) (in this subsection referred to as ‘‘AEDPA’’),

is amended by striking the heading and all that follows through

‘‘(a)’’ and inserting the following:

‘‘DESIGNATION OF FOREIGN TERRORIST ORGANIZATIONS

‘‘SEC. 219. (a)’’.

(2) Section 302(b) of AEDPA is amended by striking ‘‘,

relating to terrorism,’’.

(3) Section 106(a) (8 U.S.C. 1105a(a)), as amended by sections 401(e) and 440(a) of AEDPA, is amended—

(A) by striking ‘‘and’’ at the end of paragraph (8);

(B) by striking the period at the end of paragraph

(9) and inserting ‘‘; and’’; and

(C) in paragraph (10), by striking ‘‘Any’’ and inserting

‘‘any’’.

(4) Section 440(a) of the AEDPA is amended by striking

‘‘Section 106 of the Immigration and Nationality Act (8 U.S.C.

1105a(a)(10)) is amended to read as follows:’’ and inserting

‘‘Section 106(a) of the Immigration and Nationality Act (8

U.S.C. 1105a(a)) is amended by adding at the end the following:’’

(5) Section 440(g)(1)(A) of AEDPA is amended— 8 USC 1252a.

8 USC 1101 note.

8 USC 1101 note.

8 USC 1161 note.

8 USC 1255a

note.

8 USC 1323 note.

8 USC 1323.
110 STAT. 3009–723 PUBLIC LAW 104–208—SEPT. 30, 1996

(A) by striking ‘‘of this title’’; and

(B) by striking the period after ‘‘241(a)(2)(A)(i)’’.

(6) Section 440(g) of AEDPA is amended by striking paragraph (2).

(7) The amendments made by this subsection shall take

effect as if included in the enactment of subtitle A of title

IV of AEPDA.

(d) STRIKING REFERENCES TO SECTION 210A.—

(1)(A) Section 201(b)(1)(C) (8 U.S.C. 1151(b)(1)(C)) is

amended by striking ‘‘, 210A,’’.

(B) Section 274B(a)(3)(B) (8 U.S.C. 1324b(a)(3)(B)) is

amended by striking ‘‘, 210A(a),’’.

(C) Section 241(a)(1) (8 U.S.C. 1251(a)(1)), before redesignation by section 305(a)(2) of this division, is amended by striking

subparagraph (F).

(2) Sections 204(c)(1)(D)(i) and 204(j)(4) of Immigration

Reform and Control Act of 1986 are each amended by striking

‘‘, 210A,’’.

(e) MISCELLANEOUS CHANGES IN THE IMMIGRATION AND

NATIONALITY ACT.—

(1) Before being amended by section 308(a)(2) of this division, the item in the table of contents relating to section 242A

is amended to read as follows:

‘‘Sec. 242A. Expedited deportation of aliens convicted of committing aggravated felonies.’’.

(2) Section 101(c)(1) (8 U.S.C. 1101(c)(1)) is amended by

striking ‘‘, 321, and 322’’ and inserting ‘‘and 321’’.

(3) Section 212(d)(11) (8 U.S.C. 1182(d)(11)) is amended

by inserting a comma after ‘‘(4) thereof)’’.

(4) Pursuant to section 6(b) of Public Law 103–272 (108

Stat. 1378)—

(A) section 214(f)(1) (8 U.S.C. 1184(f)(1)) is amended

by striking ‘‘section 101(3) of the Federal Aviation Act

of 1958’’ and inserting ‘‘section 40102(a)(2) of title 49,

United States Code’’; and

(B) section 258(b)(2) (8 U.S.C. 1288(b)(2)) is amended

by striking ‘‘section 105 or 106 of the Hazardous Materials

Transportation Act (49 U.S.C. App. 1804, 1805)’’ and inserting ‘‘section 5103(b), 5104, 5106, 5107, or 5110 of title

49, United States Code’’.

(5) Section 286(h)(1)(A) (8 U.S.C. 1356(h)(1)(A)) is amended

by inserting a period after ‘‘expended’’.

(6) Section 286(h)(2)(A) (8 U.S.C. 1356(h)(2)(A)) is amended—

(A) by striking ‘‘and’’ at the end of clause (iv);

(B) by moving clauses (v) and (vi) 2 ems to the left;

(C) by striking ‘‘; and’’ in clauses (v) and (vi) and

inserting ‘‘and for’’;

(D) by striking the colons in clauses (v) and (vi); and

(E) by striking the period at the end of clause (v)

and inserting ‘‘; and’’.

(7) Section 412(b) (8 U.S.C. 1522(b)) is amended by striking

the comma after ‘‘is authorized’’ in paragraph (3) and after

‘‘The Secretary’’ in paragraph (4).

8 USC 1255a

note.

8 USC 1189 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–724

(f) MISCELLANEOUS CHANGE IN THE IMMIGRATION ACT OF

1990.—Section 161(c)(3) of the Immigration Act of 1990 is amended

by striking ‘‘an an’’ and inserting ‘‘of an’’.

(g) MISCELLANEOUS CHANGES IN OTHER ACTS.—

(1) Section 506(a) of the Intelligence Authorization Act,

Fiscal Year 1990 (Public Law 101–193) is amended by striking

‘‘this section’’ and inserting ‘‘such section’’.

(2) Section 140 of the Foreign Relations Authorization Act,

Fiscal Years 1994 and 1995, as amended by section 505(2)

of Public Law 103–317, is amended—

(A) by moving the indentation of subsections (f) and

(g) 2 ems to the left; and

(B) in subsection (g), by striking ‘‘(g)’’ and all that

follows through ‘‘shall’’ and inserting ‘‘(g) Subsections (d)

and (e) shall’’.

DIVISION D—SMALL BUSINESS

PROGRAMS IMPROVEMENT ACT

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

(a) SHORT TITLE.—This division may be cited as the ‘‘Small

Business Programs Improvement Act of 1996’’.

(b) TABLE OF CONTENTS.—

Sec. 1. Short title; table of contents.

Sec. 2. Administrator defined.

Sec. 3. Effective date.

TITLE I—AMENDMENTS TO SMALL BUSINESS ACT

Sec. 101. References.

Sec. 102. Risk management database.

Sec. 103. Section 7(a) loan program.

Sec. 104. Disaster loans.

Sec. 105. Microloan demonstration program.

Sec. 106. Small business development center program.

Sec. 107. Miscellaneous authorities to provide loans and other financial

assistance.

Sec. 108. Small business competitiveness demonstration program.

Sec. 109. Amendment to Small Business Guaranteed Credit Enhancement

Act of 1993.

Sec. 110. STTR program extension.

Sec. 111. Level of participation for export working capital loans.

TITLE II—AMENDMENTS TO SMALL BUSINESS

INVESTMENT ACT

Sec. 201. References.

Sec. 202. Modifications to development company debenture program.

Sec. 203. Required actions upon default.

Sec. 204. Loan liquidation pilot program.

Small Business

Programs

Improvement Act

of 1996.

15 USC 631 note.

8 USC 1182 note.

8 USC 1430 note.

8 USC 1101 note.
110 STAT. 3009–725 PUBLIC LAW 104–208—SEPT. 30, 1996

Sec. 205. Registration of certificates.

Sec. 206. Preferred surety bond guarantee program.

Sec. 207. Sense of the Congress.

Sec. 208. Small business investment company improvements.

SEC. 2. ADMINISTRATOR DEFINED.

For purposes of this Act, the term ‘‘Administrator’’ means the

Administrator of the Small Business Administration.

SEC. 3. EFFECTIVE DATE.

Except as otherwise expressly provided, this Act and the

amendments made by this Act shall take effect on October 1,

1996.

TITLE I—AMENDMENTS TO SMALL

BUSINESS ACT

SEC. 101. REFERENCES.

Except as otherwise expressly provided, whenever in this title

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

Small Business Act (15 U.S.C. 631 et seq.).

SEC. 102. RISK MANAGEMENT DATABASE.

Section 4(b) (15 U.S.C. 633) is amended by inserting after

paragraph (2) the following:

‘‘(3) RISK MANAGEMENT DATABASE.—

‘‘(A) ESTABLISHMENT.—The Administration shall establish, within the management system for the loan programs

authorized by subsections (a) and (b) of section 7 of this

Act and title V of the Small Business Investment Act

of 1958, a management information system that will generate a database capable of providing timely and accurate

information in order to identify loan underwriting, collections, recovery, and liquidation problems.

‘‘(B) INFORMATION TO BE MAINTAINED.—In addition to

such other information as the Administration considers

appropriate, the database established under subparagraph

(A) shall, with respect to each loan program described

in subparagraph (A), include information relating to—

‘‘(i) the identity of the institution making the

guaranteed loan or issuing the debenture;

‘‘(ii) the identity of the borrower;

‘‘(iii) the total dollar amount of the loan or debenture;

‘‘(iv) the total dollar amount of government exposure in each loan;

‘‘(v) the district of the Administration in which

the borrower has its principal office;

‘‘(vi) the principal line of business of the borrower,

as identified by Standard Industrial Classification Code

(or any successor to that system);

‘‘(vii) the delinquency rate for each program

(including number of instances and days overdue);

15 USC 633 note.

15 USC 631 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–726

‘‘(viii) the number and amount of repurchases,

losses, and recoveries in each program;

‘‘(ix) the number of deferrals or forbearances in

each program (including days and number of

instances);

‘‘(x) comparisons on the basis of loan program,

lender, Administration district and region, for all the

data elements maintained; and

‘‘(xi) underwriting characteristics of each loan that

has entered into default, including term, amount and

type of collateral, loan-to-value and other actual and

projected ratios, line of business, credit history, and

type of loan.

‘‘(C) DEADLINE FOR OPERATIONAL CAPABILITY.—The

database established under subparagraph (A) shall—

‘‘(i) be operational not later than June 30, 1997;

and

‘‘(ii) capture data beginning on the first day of

the second quarter of fiscal year 1997 beginning after

such date and thereafter.’’.

SEC. 103. SECTION 7(a) LOAN PROGRAM.

(a) SERVICING AND LIQUIDATION OF LOANS BY PREFERRED LENDERS.—Section 7(a)(2)(C)(ii)(II) (15 U.S.C. 636(a)(2)(C)(ii)(II)) is

amended to read as follows:

‘‘(II) complete authority to service and liquidate such loans without obtaining the prior specific approval of the Administration for routine

servicing and liquidation activities, but shall not

take any actions creating an actual or apparent

conflict of interest.’’.

(b) CERTIFIED LENDERS PROGRAM.—Section 7(a)(19) (15 U.S.C.

636(a)(19)) is amended by adding at the end the following new

subparagraph:

‘‘(C) AUTHORITY TO LIQUIDATE LOANS.—

‘‘(i) IN GENERAL.—The Administrator may permit

lenders participating in the Certified Lenders Program

to liquidate loans made with a guarantee from the

Administration pursuant to a liquidation plan

approved by the Administrator.

‘‘(ii) Automatic approval.—If the Administrator

does not approve or deny a request for approval of

a liquidation plan within 10 business days of the date

on which the request is made (or with respect to any

routine liquidation activity under such a plan, within

5 business days) such request shall be deemed to be

approved.’’.

(c) LIMITATION ON CONDUCTING PILOT PROJECTS.—Section 7(a)

(15 U.S.C. 636(a)) is amended by adding at the end the following

new paragraph:

‘‘(25) LIMITATION ON CONDUCTING PILOT PROJECTS.—

‘‘(A) IN GENERAL.—Not more than 10 percent of the

total number of loans guaranteed in any fiscal year under

this subsection may be awarded as part of a pilot program

which is commenced by the Administrator on or after October 1, 1996.
110 STAT. 3009–727 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(B) PILOT PROGRAM DEFINED.—In this paragraph, the

term ‘pilot program’ means any lending program initiative,

project, innovation, or other activity not specifically authorized by law.

‘‘(C) LOW DOCUMENTATION LOAN PROGRAM.—The

Administrator may carry out the low documentation loan

program for loans of $100,000 or less only through lenders

with significant experience in making small business loans.

Not later than 90 days after the date of enactment of

this subsection, the Administrator shall promulgate regulations defining the experience necessary for participation

as a lender in the low documentation loan program.’’.

(d) CALCULATION OF SUBSIDY RATE.—Section 7(a) (15 U.S.C.

636(a)) is amended by adding at the end the following new paragraph:

‘‘(26) CALCULATION OF SUBSIDY RATE.—All fees, interest,

and profits received and retained by the Administration under

this subsection shall be included in the calculations made by

the Director of the Office of Management and Budget to offset

the cost (as that term is defined in section 502 of the Federal

Credit Reform Act of 1990) to the Administration of purchasing

and guaranteeing loans under this Act.’’.

(e) SALE OF UNGUARANTEED PORTIONS OF SBA LOANS.—Section

5(f)(3) (15 U.S.C. 634(f)(3)) is amended by adding at the end the

following: ‘‘Beginning on March 31, 1997, the sale of the

unguaranteed portion of any loan made under section 7(a) shall

not be permitted until a final regulation that applies uniformly

to both depository institutions and other lenders is promulgated

by the Administration setting forth the terms and conditions under

which such sales can be permitted, including maintenance of appropriate reserve requirements and other safeguards to protect the

safety and soundness of the program.’’.

(f) CONDITIONS ON PURCHASE OF LOANS.—Section 7(a)(4) (15

U.S.C. 636(a)(4)) is amended—

(1) by striking ‘‘(4) Notwithstanding’’ and inserting the

following:

‘‘(4) INTEREST RATES AND FEES.—

‘‘(A) INTEREST RATES.—Notwithstanding’’; and

(2) by adding at the end the following new subparagraph:

‘‘(B) PAYMENT OF ACCRUED INTEREST.—

‘‘(i) IN GENERAL.—Any bank or other lending

institution making a claim for payment on the guaranteed portion of a loan made under this subsection

shall be paid the accrued interest due on the loan

from the earliest date of default to the date of payment

of the claim at a rate not to exceed the rate of interest

on the loan on the date of default, minus one percent.

‘‘(ii) LOANS SOLD ON SECONDARY MARKET.—If a loan

described in clause (i) is sold on the secondary market,

the amount of interest paid to a bank or other lending

institution described in that clause from the earliest

date of default to the date of payment of the claim

shall be no more than the agreed upon rate, minus

one percent.’’.

(g) PLAN FOR TRANSFER OF LOAN SERVICING FUNCTIONS TO

CENTRALIZED CENTERS.—
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–728

(1) IMPLEMENTATION PLAN REQUIRED.—The Administrator

shall submit a detailed plan for completing the consolidation,

in one or more centralized centers, of the performance of the

various functions relating to the servicing of loans directly

made or guaranteed by the Administration pursuant to the

Small Business Act, addressing the matters described in paragraph (2) by the deadline specified in paragraph (3).

(2) CONTENTS OF PLAN.—In addition to such other matters

as the Administrator may deem appropriate, the plan required

by paragraph (1) shall include—

(A) the proposed number and location of such centralized loan servicing centers;

(B) the proposed workload (identified by type and numbers of loans and their geographic origin by the Small

Business Administration district office) and staffing of each

such center;

(C) a detailed, time-phased plan for the transfer of

the identified loan servicing functions to each proposed

center; and

(D) any identified impediments to the timely execution

of the proposed plan (including adequacy of available financial resources, availability of needed personnel, facilities,

and related equipment) and the recommendations of the

Administrator for addressing such impediments.

(3) DEADLINE FOR SUBMISSION.—Not later than February

28, 1997, the plan required by paragraph (1) shall be submitted

to the Committees on Small Business of the House of Representatives and Senate.

(h) PREFERRED LENDER STANDARD REVIEW PROGRAM.—Not

later than 90 days after the date of enactment of this Act, the

Administrator shall commence a standard review program for the

Preferred Lender Program established by section 5(b)(7) of the

Small Business Act (15 U.S.C. 634(b)(7)), which shall include annual

or more frequent assessments of the participation of the lender

in the program, including defaults, loans, and recoveries of loans

made by that lender under the authority of this section. The

Administrator shall require such standard review for each new

entrant to the Preferred Lender Program.

(i) INDEPENDENT STUDY OF LOAN PROGRAMS.—

(1) STUDY REQUIRED.—The Administrator shall contract

with one or more private sector parties to conduct a comprehensive assessment of the performance of the loan programs

authorized by section 7(a) of the Small Business Act (15 U.S.C.

636(a)) and title V of the Small Business Investment Act of

1958 (15 U.S.C. 661) addressing the matters described in paragraph (2) and resulting in a report to the Congress pursuant

to paragraph (5).

(2) MATTERS TO BE ASSESSED.—In addition to such other

matters as the Administrator considers appropriate, the assessment required by paragraph (1) shall address, with respect

to each loan program described in paragraph (1) for each of

the fiscal years described in paragraph (3)—

(A) the number and frequency of deferrals and defaults;

(B) default rates;

(C) comparative loss rates, by—

15 USC 634 note.
110 STAT. 3009–729 PUBLIC LAW 104–208—SEPT. 30, 1996

(i) type of lender (separately addressing preferred

lenders, certified lenders, and general participation

lenders);

(ii) term of the loan;

(iii) dollar value of the loan at disbursement; and

(iv) underwriting characteristics of each loan that

has entered into default, including term, amount and

type of collateral, loan-to-value and other actual and

projected ratios, line of business, credit history, and

type of loan; and

(D) the economic models used by the Office of Management and Budget to calculate the credit subsidy rate

applicable to the loan programs.

(3) PERIOD OF ASSESSMENT.—The assessments undertaken

pursuant to paragraph (2) shall address data for the period

beginning with fiscal year 1986 of each loan program described

in paragraph (1).

(4) ACCESS TO INFORMATION.—The Administrator shall provide to the contractor access to any information collected by

or available to the Administration with regard to the loan

programs being assessed. The contactor shall preserve the confidentiality of any information for which confidentiality is protected by law or properly asserted by the person submitting

such information.

(5) CONTRACT FUNDING.—The Administrator shall fund the

cost of the contract from the amounts appropriated for the

salaries and expenses of the Administration for fiscal year

1997.

(6) REPORT TO THE CONGRESS.—

(A) CONTENTS.—The contractor shall prepare a report

of—

(i) its analyses of the matters to be assessed pursuant to paragraph (2); and

(ii) its independent recommendations for improving

program performance with respect to each loan program, regarding—

(I) improving the timely collection and subsequent management by the Administration of data

to measure the performance of each loan program

described in paragraph (1); and

(II) reducing loss rates for and improving the

performance of each such loan program.

(B) SUBMISSION TO THE CONGRESS.—Not later than

June 30, 1997, the Administrator shall submit the report

prepared under subparagraph (A) to the Committees on

Small Business of the House of Representatives and the

Senate. The Administrator shall append his comments,

and those of the Office of Management and Budget, if

any, to the report.

SEC. 104. DISASTER LOANS.

(a) PRIVATE SECTOR LOAN SERVICING DEMONSTRATION PROGRAM.—

(1) IN GENERAL.—

(A) DEMONSTRATION PROGRAM REQUIRED.—Notwithstanding any other provision of law, the Administration

15 USC 636 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–730

shall conduct a demonstration program, within the parameters described in paragraph (2), to evaluate the comparative costs and benefits of having the Administration’s portfolio of disaster loans serviced under contract rather than

directly by employees of the Administration. All costs of

the demonstration program shall be paid from amounts

made available for the Salaries and Expenses Account of

the Administration.

(B) INITIATION DATE.—Not later than 90 days after

the date of enactment of this Act, the Administration shall

issue a request for proposals for the program parameters

described in paragraph (2).

(2) DEMONSTRATION PROGRAM PARAMETERS.—

(A) LOAN SAMPLE.—The sample of loans for the demonstration program shall be randomly drawn from the

Administration’s portfolio of loans made pursuant to section

7(b) of the Small Business Act and shall include a representative group of not less than 30 percent of all loans

for residential properties, including 30 percent of all loans

made during the demonstration program after the date

of enactment of this Act, which loans shall be selected

by the Administration on the basis of geographic distribution and such other factors as the Administration determines to be appropriate.

(B) CONTRACT AND OPTIONS.—The Administration

shall solicit and competitively award one or more contracts

to service the loans included in the sample of loans

described in subparagraph (A) for a term of not less than

one year, with 3 one-year contract renewal options, each

of which shall be exercised by the Administration unless

the Administration terminates the contractor or contractors

for good cause.

(3) TERM OF DEMONSTRATION PROGRAM.—The demonstration program shall commence not later than October 1, 1997.

(4) REPORTS.—

(A) INTERIM REPORTS.—Not later than 120 days before

the expiration of the initial 4-year contract performance

period, the Administrator shall submit to the Committees

on Small Business of the House of Representatives and

the Senate an interim report on the conduct of the demonstration program. The contractor shall be afforded a

reasonable opportunity to attach comments to each such

report.

(B) FINAL REPORT.—Not later than 120 days after the

termination of the demonstration program, the Administrator shall submit to the Committees on Small Business

of the House of Representatives and the Senate a final

report on the performance of the demonstration program,

together with the recommendations of the Administrator

for continuation, termination, or modification of the demonstration program.

(b) DEFINITION OF DISASTER.—

(1) IN GENERAL.—Section 3(k) (15 U.S.C. 632(k)) is amended

by inserting ‘‘commercial fishery failures or fishery resource

disasters (as determined by the Secretary of Commerce under

section 308(b) of the Interjurisdictional Fisheries Act of 1986),’’

after ‘‘tidal waves,’’.
110 STAT. 3009–731 PUBLIC LAW 104–208—SEPT. 30, 1996

(2) EFFECTIVE DATE.—The amendment made by paragraph

(1) shall be effective with respect to any disaster occurring

on or after March 1, 1994.

SEC. 105. MICROLOAN DEMONSTRATION PROGRAM.

Section 7(m)(7)(B) (15 U.S.C. 636(m)(4)) is amended by adding

at the end the following: ‘‘If, however, at the beginning of the

fourth quarter of a fiscal year the Administration determines that

a portion of appropriated microloan funds are unlikely to be

awarded during that year, the Administration may make additional

funds available to a State in excess of 125 percent of the pro

rata share of that State.’’.

SEC. 106. SMALL BUSINESS DEVELOPMENT CENTER PROGRAM.

(a) ASSOCIATE ADMINISTRATOR FOR SMALL BUSINESS DEVELOP- MENT CENTERS.— (1) DUTIES.—Section 21(h) (15 U.S.C. 648(h)) is amended

to read as follows:

‘‘(h) ASSOCIATE ADMINISTRATOR FOR SMALL BUSINESS DEVELOP- MENT CENTERS.— ‘‘(1) APPOINTMENT AND COMPENSATION.—The Administrator

shall appoint an Associate Administrator for Small Business

Development Centers who shall report to an official who is

not more than one level below the Office of the Administrator

and who shall serve without regard to the provisions of title

5 governing appointments in the competitive service, and without regard to chapter 51, and subchapter III of chapter 53

of such title relating to classification and General Schedule

pay rates, but at a rate not less than the rate of GS–17

of the General Schedule.

‘‘(2) DUTIES.— ‘‘(A) IN GENERAL.—The sole responsibility of the Associate Administrator for Small Business Development Centers

shall be to administer the small business development center program. Duties of the position shall include recommending the annual program budget, reviewing the

annual budgets submitted by each applicant, establishing

appropriate funding levels therefore, selecting applicants

to participate in this program, implementing the provisions

of this section, maintaining a clearinghouse to provide for

the dissemination and exchange of information between

small business development centers and conducting audits

of recipients of grants under this section.

‘‘(B) CONSULTATION REQUIREMENTS.—In carrying out

the duties described in this subsection, the Associate

Administrator shall confer with and seek the advice of

the Board established by subsection (i) and Administration

officials in areas served by the small business development

centers; however, the Associate Administrator shall be

responsible for the management and administration of the

program and shall not be subject to the approval or concurrence of such Administration officials.’’.

(2) REFERENCES TO ASSOCIATE ADMINISTRATOR.—Section 21

(15 U.S.C. 648) is amended—

(A) in subsection (c)(7), by striking ‘‘Deputy Associate

Administrator of the Small Business Development Center

program’’ and inserting ‘‘Associate Administrator for Small

Business Development Centers’’; and

15 USC 632 note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–732

(B) in subsection (i)(2), by striking ‘‘Deputy Associate

Administrator for Management Assistance’’ and inserting

‘‘Associate Administrator for Small Business Development

Centers’’.

(b) EXTENSION OR RENEWAL OF COOPERATIVE AGREEMENTS.— Section 21(k)(3) (15 U.S.C. 648(k)(3)) is amended to read as follows:

‘‘(3) EXTENSION OR RENEWAL OF COOPERATIVE AGREE- MENTS.—

‘‘(A) IN GENERAL.—In extending or renewing a cooperative agreement of a small business development center,

the Administration shall consider the results of the examination and certification program conducted pursuant to

paragraphs (1) and (2).

‘‘(B) CERTIFICATION REQUIREMENT.—After September

30, 2000, the Administration may not renew or extend

any cooperative agreement with a small business development center unless the center has been approved under

the certification program conducted pursuant to this subsection, except that the Associate Administrator for Small

Business Development Centers may waive such certification requirement, in the discretion of the Associate

Administrator, upon a showing that the center is making

a good faith effort to obtain certification.’’.

(c) TECHNICAL CORRECTION.—Section 21(l) (15 U.S.C. 648(l))

is amended to read as follows:

‘‘(l) CONTRACT AUTHORITY.—The authority to enter into contracts shall be in effect for each fiscal year only to the extent

and in the amounts as are provided in advance in appropriations

Acts. After the administration has entered a contract, either as

a grant or a cooperative agreement, with any applicant under

this section, it shall not suspend, terminate, or fail to renew or

extend any such contract unless the Administration provides the

applicant with written notification setting forth the reasons therefore and affording the applicant an opportunity for a hearing,

appeal, or other administrative proceeding under the provisions

of chapter 5 of title 5, United States Code.’’.

SEC. 107. MISCELLANEOUS AUTHORITIES TO PROVIDE LOANS AND

OTHER FINANCIAL ASSISTANCE.

(a) FUNDING LIMITATION; SEMINARS.—Section 7(d) (15 U.S.C.

636(d)) is amended—

(1) by striking ‘‘(d)(1)’’ and inserting ‘‘(d)’’; and

(2) by striking paragraph (2).

(b) TRADE ADJUSTMENT LOANS.—Section 7(e) (15 U.S.C. 636(e))

is amended to read as follows:

‘‘(e) [RESERVED].’’.

(c) WAIVER OF CREDIT ELSEWHERE TEST FOR COLLEGES AND

UNIVERSITIES.—Section 7(f) (15 U.S.C. 636(f)) is amended to read

as follows:

‘‘(f) [RESERVED].’’.

(d) LOANS TO SMALL BUSINESS CONCERNS FOR SOLAR ENERGY

AND ENERGY CONSERVATION MEASURES.—Section 7(l) (15 U.S.C.

636(l)) is amended to read as follows:

‘‘(l) [RESERVED].’’.

SEC. 108. SMALL BUSINESS COMPETITIVENESS DEMONSTRATION PROGRAM.

(a) EXTENSION OF DEMONSTRATION PROGRAM.—
110 STAT. 3009–733 PUBLIC LAW 104–208—SEPT. 30, 1996

(1) IN GENERAL.—Section 711(c) of the Small Business

Competitiveness Demonstration Program Act of 1988 (15 U.S.C.

644 note; 102 Stat. 3890) is amended by striking ‘‘September

30, 1996’’ and inserting ‘‘September 30, 1997’’.

(2) REPEAL.—Section 717(f) of the Small Business Competitiveness Demonstration Program Act of 1988 (15 U.S.C. 644

note) is repealed.

(b) REPORTING OF SUBCONTRACT PARTICIPATION IN CONTRACTS

FOR ARCHITECTURAL AND ENGINEERING SERVICES.—Section

714(b)(5) of the Small Business Competitiveness Demonstration

Program Act of 1988 (15 U.S.C. 644 note; 102 Stat. 3892) is amended

to read as follows:

‘‘(5) DURATION.—The system described in subsection (a)

shall be established not later than October 1, 1996 (or as

soon as practicable thereafter on the first day of a subsequent

quarter of fiscal year 1997), and shall terminate on September

30, 1997.’’.

(c) REPORTS TO THE CONGRESS.—

(1) IN GENERAL.—Section 716 of the Small Business

Competitiveness Demonstration Program Act of 1988 (15 U.S.C.

644 note; 102 Stat. 3893) is amended—

(A) in subsection (a), by striking ‘‘fiscal year 1991 and

1995’’ and inserting ‘‘each of fiscal years 1991 through

1996’’;

(B) in subsection (b), by striking ‘‘results’’ and inserting

‘‘cumulative results’’; and

(C) in subsection (c), by striking ‘‘1996’’ and inserting

‘‘1997’’.

(2) CUMULATIVE REPORT THROUGH FISCAL YEAR 1995.—A

cumulative report of the results of the Small Business Competitiveness Demonstration Program for fiscal years 1991 through

1995 shall be submitted not later than February 28, 1997

pursuant to section 716(a) of the Small Business Competitiveness Demonstration Program Act of 1988 (15 U.S.C. 644 note;

102 Stat. 3893), as amended by paragraph (1) of this subsection.

SEC. 109. AMENDMENT TO SMALL BUSINESS GUARANTEED CREDIT

ENHANCEMENT ACT OF 1993.

(a) IN GENERAL.—Section 7 of the Small Business Guaranteed

Credit Enhancement Act of 1993 (Public Law 103–81; 15 U.S.C.

634 note) is repealed effective September 29, 1996.

(b) CLERICAL AMENDMENT.—The table of contents for the Small

Business Guaranteed Credit Enhancement Act of 1993 (Public Law

103–81; 15 U.S.C. 631 note) is amended by striking the item relating

to section 7.

SEC. 110. STTR PROGRAM EXTENSION.

Section 9(n)(1)(C) (15 U.S.C. 638(n)(1)(C)) is amended by striking ‘‘fiscal year 1996’’ and inserting ‘‘fiscal years 1996 and 1997’’.

SEC. 111. LEVEL OF PARTICIPATION FOR EXPORT WORKING CAPITAL

LOANS.

Section 7(A)(2) (15 U.S.C. 636(A)(2)) is amended by adding

at the end the following:

‘‘(D) PARTICIPATION UNDER EXPORT WORKING CAPITAL

PROGRAM.—Notwithstanding subparagraph (A), in an

agreement to participate in a loan on a deferred basis

under the Export Working Capital Program established
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–734

pursuant to paragraph (14)(A), such participation by the

Administration shall not exceed 90 percent.’’.

TITLE II—AMENDMENTS TO SMALL

BUSINESS INVESTMENT ACT

SEC. 201. REFERENCES.

Except as otherwise expressly provided, whenever in this title

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

Small Business Investment Act of 1958 (15 U.S.C. 661 et seq.).

SEC. 202. MODIFICATIONS TO DEVELOPMENT COMPANY DEBENTURE

PROGRAM.

(a) DECREASED LOAN TO VALUE RATIOS.—Section 502(3) (15

U.S.C. 696(3)) is amended to read as follows:

‘‘(3) CRITERIA FOR ASSISTANCE.—

‘‘(A) IN GENERAL.—Any development company assisted

under this section or section 503 of this title must meet

the criteria established by the Administration, including

the extent of participation to be required or amount of

paid-in capital to be used in each instance as is determined

to be reasonable by the Administration.

‘‘(B) COMMUNITY INJECTION FUNDS.—

‘‘(i) SOURCES OF FUNDS.—Community injection

funds may be derived, in whole or in part, from—

‘‘(I) State or local governments;

‘‘(II) banks or other financial institutions;

‘‘(III) foundations or other not-for-profit

institutions; or

‘‘(IV) the small business concern (or its owners,

stockholders, or affiliates) receiving assistance

through a body authorized by this title.

‘‘(ii) FUNDING FROM INSTITUTIONS.—Not less than

50 percent of the total cost of any project financed

pursuant to clauses (i), (ii), or (iii) of subparagraph

(C) shall come from the institutions described in subclauses (I), (II), and (III) of clause (i).

‘‘(C) FUNDING FROM A SMALL BUSINESS CONCERN.—The

small business concern (or its owners, stockholders, or affiliates) receiving assistance through a body authorized by

this title shall provide—

‘‘(i) at least 15 percent of the total cost of the

project financed, if the small business concern has

been in operation for a period of 2 years or less;

‘‘(ii) at least 15 percent of the total cost of the

project financed if the project involves the construction

of a limited or single purpose building or structure;

‘‘(iii) at least 20 percent of the total cost of the

project financed if the project involves both of the

conditions set forth in clauses (i) and (ii); or

‘‘(iv) at least 10 percent of the total cost of the

project financed, in all other circumstances, at the

discretion of the development company.’’.
110 STAT. 3009–735 PUBLIC LAW 104–208—SEPT. 30, 1996

(b) GUARANTEE FEE FOR DEVELOPMENT COMPANY DEBEN- TURES.—Section 503(b)(7)(A) (15 U.S.C. 697(b)(7)(A)) is amended

by striking ‘‘equal to 0.125 percent’’ and all that follows before

the semicolon and inserting the following: ‘‘equal to the lesser

of—

‘‘(i) 0.9375 percent per year of the outstanding

balance of the loan; or

‘‘(ii) such percentage per year of the outstanding

balance of the loan as the Administrator may determine to be necessary to reduce the cost (as that term

is defined in section 502 of the Federal Credit Reform

Act of 1990) to the Administration of purchasing and

guaranteeing debentures under this Act to an amount

that, taking into consideration any available appropriated funds, would permit the Administration to purchase or guarantee $2,000,000,000 of debentures in

fiscal year 1997’’.

(c) FEES TO OFFSET SUBSIDY COST.—Section 503(d) (15 U.S.C.

697(d)) is amended to read as follows:

‘‘(d) CHARGES FOR ADMINISTRATION EXPENSES.—

‘‘(1) LEVEL OF CHARGES.—The Administration may impose

an additional charge for administrative expenses with respect

to each debenture for which payment of principal and interest

is guaranteed under subsection (a).

‘‘(2) PARTICIPATION FEE.—The Administration shall collect

a one-time fee in an amount equal to 50 basis points on the

total participation in any project of any institution described

in subclause (I), (II), or (III) of section 502(3)(B)(i). Such fee

shall be imposed only when the participation of the institution

will occupy a senior credit position to that of the development

company. All proceeds of the fee shall be used to offset the

cost (as that term is defined in section 502 of the Credit

Reform Act of 1990) to the Administration of making guarantees

under subsection (a).

‘‘(3) DEVELOPMENT COMPANY FEE.—The Administration

shall collect annually from each development company a fee

of 0.125 percent of the outstanding principal balance of any

guaranteed debenture authorized by the Administration after

September 30, 1996. Such fee shall be derived from the servicing fees collected by the development company pursuant to

regulation, and shall not be derived from any additional fees

imposed on small business concerns. All proceeds of the fee

shall be used to offset the cost (as that term is defined in

section 502 of the Credit Reform Act of 1990) to the Administration of making guarantees under subsection (a).’’.

(d) EFFECTIVE DATE.—Section 503 (15 U.S.C. 697) is amended

by adding at the end the following new subsection:

‘‘(f) EFFECTIVE DATE.—The fees authorized by subsections (b)

and (c) shall apply to financings approved by the Administration

on or after October 1, 1996, but shall not apply to financings

approved by the Administration on or after October 1, 1997.’’.

(e) CALCULATION OF SUBSIDY RATE.—Section 503 (15 U.S.C.

697a) is amended by adding at the end the following new subsection:

‘‘(g) CALCULATION OF SUBSIDY RATE.—All fees, interest, and

profits received and retained by the Administration under this

section shall be included in the calculations made by the Director

of the Office of Management and Budget to offset the cost (as

15 USC 697.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–736

that term is defined in section 502 of the Federal Credit Reform

Act of 1990) to the Administration of purchasing and guaranteeing

debentures under this Act.’’.

SEC. 203. REQUIRED ACTIONS UPON DEFAULT.

Section 503 (15 U.S.C. 697) is amended by adding at the end

the following new subsection:

‘‘(h) REQUIRED ACTIONS UPON DEFAULT.—

‘‘(1) INITIAL ACTIONS.—Not later than the 45th day after

the date on which a payment on a loan funded through a

debenture guaranteed under this section is due and not

received, the Administration shall—

‘‘(A) take all necessary steps to bring such a loan

current; or

‘‘(B) implement a formal written deferral agreement.

‘‘(2) PURCHASE OR ACCELERATION OF DEBENTURE.—Not later

than the 65th day after the date on which a payment on

a loan described in paragraph (1) is due and not received,

and absent a formal written deferral agreement, the administration shall take all necessary steps to purchase or accelerate

the debenture.

‘‘(3) PREPAYMENT PENALTIES.—With respect to the portion

of any project derived from funds set forth in section 502(3),

the Administration—

‘‘(A) shall negotiate the elimination of any prepayment

penalties or late fees on defaulted loans made prior to

September 30, 1996;

‘‘(B) shall not pay any prepayment penalty or late

fee on the default based purchase of loans issued after

September 30, 1996; and

‘‘(C) for any project financed after September 30, 1996,

shall not pay any default interest rate higher than the

interest rate on the note prior to the date of default.’’.

SEC. 204. LOAN LIQUIDATION PILOT PROGRAM.

(a) IN GENERAL.—The Administrator shall carry out a loan

liquidation pilot program (in this section referred to as the ‘‘pilot

program’’) in accordance with the requirements of this section.

(b) SELECTION OF DEVELOPMENT COMPANIES.—

(1) IN GENERAL.—Not later than 90 days after the date

of the enactment of this Act, the Administrator shall establish

a pilot program under which certain development companies

authorized to make loans and issue debentures under title

V of the Small Business Investment Act of 1958 are selected

by the Administrator in accordance with this subsection to

carry out loan liquidations.

(2) CONFLICTS OF INTEREST.—The development companies

selected under paragraph (1) shall agree not to take any action

that would create a potential conflict of interest involving the

development company, the third party lender, or an associate

of the third party lender.

(3) QUALIFICATIONS.—In order to qualify to participate in

the pilot program under this section, each development company shall—

(A) have not less than 6 years of experience in the

program established by title V of the Small Business Investment Act of 1958;

15 USC 695 note.
110 STAT. 3009–737 PUBLIC LAW 104–208—SEPT. 30, 1996

(B) have made, during the 6 most recent fiscal years,

an average of not less than 10 loans per year through

the program established by such title V of the Small Business Investment Act of 1958;

(C) have not less than 2 years of experience in liquidating loans under the authority of a Federal, State, or other

lending program; and

(D) meet such other requirements as the Administration may establish.

(c) AUTHORITY OF DEVELOPMENT COMPANIES.—The development

companies selected under subsection (b) shall, for loans in their

portfolio of loans made through debentures guaranteed under title

V of the Small Business Investment Act of 1958 that are in default

after the date of enactment of this Act, be authorized to—

(1) perform all liquidation and foreclosure functions, including the acceleration or purchase of community injection funds,

subject to such company obtaining prior written approval from

the Administrator before committing the agency to purchase

any other indebtedness secured by the property: Provided, That

the Administrator shall approve or deny a request for such

purchase within a period of 10 business days; and

(2) liquidate such loans in a reasonable and sound manner

and according to commercially accepted practices pursuant to

a liquidation plan approved by the administrator in advance

of its implementation. If the administrator does not approve

or deny a request for approval of a liquidation plan within

10 business days of the date on which the request is made

(or with respect to any routine liquidation activity under such

a plan, within 5 business days) such request shall be deemed

to be approved.

(d) AUTHORITY OF THE ADMINISTRATOR.—In carrying out the

pilot program, the Administrator shall—

(1) have full authority to rescind the authority granted

any development company under this section upon a 10-day

written notice stating the reasons for the rescission; and

(2) not later than 90 days after the admission of the development companies specified in subsection (b), implement the

pilot program.

(e) REPORT.—

(1) IN GENERAL.—The Administrator shall issue a report

on the results of the pilot program to the Committees on

Small Business of the House of Representatives and the Senate.

The report shall include information relating to—

(A) the total dollar amount of each loan and project

liquidated;

(B) the total dollar amount guaranteed by the Administration;

(C) total dollar losses;

(D) total recoveries both as percentage of the amount

guaranteed and the total cost of the project; and

(E) a comparison of the pilot program information with

the same information for liquidation conducted outside the

pilot program over the period of time.

(2) REPORTING PERIOD.—The report shall be based on data

from, and issued not later than 90 days after the close of,

the first eight 8 fiscal quarters of the pilot program’s operation

after the date of implementation.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–738

SEC. 205. REGISTRATION OF CERTIFICATES.

(a) CERTIFICATES SOLD PURSUANT TO SMALL BUSINESS ACT.—

Section 5(h) of the Small Business Act (15 U.S.C. 634(h)) is amended—

(1) by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D);

(2) by striking ‘‘(h)’’ and inserting ‘‘(h)(1)’’;

(3) by striking subparagraph (A), as redesignated by paragraph (1) of this subsection, and inserting the following:

‘‘(A) provide for a central registration of all loans and

trust certificates sold pursuant to subsections (f) and (g)

of this section;’’; and

(4) by adding at the end the following:

‘‘(2) Nothing in this subsection shall prohibit the utilization

of a book-entry or other electronic form of registration for

trust certificates. The Administration may, with the consent

of the Secretary of the Treasury, use the book-entry system

of the Federal Reserve System.’’.

(b) CERTIFICATES SOLD PURSUANT TO SMALL BUSINESS INVESTMENT COMPANY PROGRAM.—Section 321(f) (15 U.S.C. 687l(f)) is

amended—

(1) in paragraph (1), by striking ‘‘Such central registration

shall include’’ and all that follows through the period at the

end of the paragraph; and

(2) by adding at the end the following:

‘‘(5) Nothing in this subsection shall prohibit the use of

a book-entry or other electronic form of registration for trust

certificates.’’.

(c) CERTIFICATES SOLD PURSUANT TO DEVELOPMENT COMPANY

PROGRAM.—Section 505(f) (15 U.S.C. 697b(f)) is amended—

(1) by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D);

(2) by striking ‘‘(f)’’ and inserting ‘‘(f)(1)’’;

(3) by striking subparagraph (A), as redesignated by paragraph (1) of this subsection, and inserting the following:

‘‘(A) provide for a central registration of all trust certificates sold pursuant to this section;’’ and

(4) by adding at the end the following:

‘‘(2) Nothing in this subsection shall prohibit the utilization

of a book-entry or other electronic form of registration for

trust certificates.’’.

SEC. 206. PREFERRED SURETY BOND GUARANTEE PROGRAM.

(a) ADMISSIONS OF ADDITIONAL PROGRAM PARTICIPANTS.—Section 411(a) (15 U.S.C. 694(a)) is amended by adding a new paragraph (5), as follows:

‘‘(5)(A) The Administration shall promptly act upon an

application from a surety to participate in the Preferred Surety

Bond Guarantee Program, authorized by paragraph (3), in

accordance with criteria and procedures established in regulations pursuant to subsection (d).

‘‘(B) The Administration is authorized to reduce the allotment of bond guarantee authority or terminate the participation

of a surety in the Preferred Surety Bond Guarantee Program

based on the rate of participation of such surety during the

4 most recent fiscal year quarters compared to the median

rate of participation by the other sureties in the program.’’.

15 USC 694b.
110 STAT. 3009–739 PUBLIC LAW 104–208—SEPT. 30, 1996

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

(a) shall apply with respect to applications received (or pending

substantive evaluation) on or after October 1, 1995.

SEC. 207. SENSE OF THE CONGRESS.

(a) IN GENERAL.—It is the sense of the Congress that the

subsidy models prepared by the Office of Management and Budget

relative to loan programs sponsored by the United States Small

Business Administration have a tendency to—

(1) overestimate potential risks of loss; and

(2) overemphasize historical losses that may be anomalous

and do not truly reflect the success of the programs as a

whole.

(b) INDEPENDENT STUDY.—Consequently, the Congress mandates the independent study in section 103(h) in an attempt to

improve the ability of the Office of Management and Budget to

reflect more accurately the budgetary implications of such programs.

SEC. 208. SMALL BUSINESS INVESTMENT COMPANY IMPROVEMENTS.

(a) DEFINITIONS.—

(1) SMALL BUSINESS CONCERN.—Section 103(5) (15 U.S.C.

662(5)) is amended by inserting before the semicolon the following: ‘‘, except that, for purposes of this Act, an investment

by a venture capital firm, investment company (including a

small business investment company) employee welfare benefit

plan or pension plan, or trust, foundation, or endowment that

is exempt from Federal income taxation—

‘‘(A) shall not cause a business concern to be deemed

not independently owned and operated;

‘‘(B) shall be disregarded in determining whether a

business concern satisfies size standards established pursuant to section 3(a)(2) of the Small Business Act; and

‘‘(C) shall be disregarded in determining whether a

small business concern is a smaller enterprise’’.

(2) PRIVATE CAPITAL.—Section 103(9) (15 U.S.C. 662(9))

is amended to read as follows:

‘‘(9) the term ‘private capital’—

‘‘(A) means the sum of—

‘‘(i) the paid-in capital and paid-in surplus of a

corporate licensee, the contributed capital of the partners of a partnership licensee, or the equity investment

of the members of a limited liability company licensee;

and

‘‘(ii) unfunded binding commitments, from investors that meet criteria established by the Administrator, to contribute capital to the licensee: Provided,

That such unfunded commitments may be counted as

private capital for purposes of approval by the Administrator of any request for leverage, but leverage shall

not be funded based on such commitments; and

‘‘(B) does not include any—

‘‘(i) funds borrowed by a licensee from any source;

‘‘(ii) funds obtained through the issuance of leverage; or

‘‘(iii) funds obtained directly or indirectly from any

Federal, State, or local government, or any government

agency or instrumentality, except for—

15 USC 694b

note.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–740

‘‘(I) funds invested by an employee welfare

benefit plan or pension plan; and

‘‘(II) any qualified nonprivate funds (if the

investors of the qualified nonprivate funds do not

control, directly or indirectly, the management,

board of directors, general partners, or members

of the licensee);’’.

(3) NEW DEFINITIONS.—Section 103 (15 U.S.C. 662) is

amended by striking paragraph (10) and inserting the following:

‘‘(10) the term ‘leverage’ includes—

‘‘(A) debentures purchased or guaranteed by the

Administration;

‘‘(B) participating securities purchased or guaranteed

by the Administration; and

‘‘(C) preferred securities outstanding as of October 1,

1995;

‘‘(11) the term ‘third party debt’ means any indebtedness

for borrowed money, other than indebtedness owed to the

Administration;

‘‘(12) the term ‘smaller enterprise’ means any small business concern that, together with its affiliates—

‘‘(A) has—

‘‘(i) a net financial worth of not more than

$6,000,000, as of the date on which assistance is provided under this Act to that business concern; and

‘‘(ii) an average net income for the 2-year period

preceding the date on which assistance is provided

under this Act to that business concern, of not more

than $2,000,000, after Federal income taxes (excluding

any carryover losses); or

‘‘(B) satisfies the standard industrial classification size

standards established by the Administration for the industry in which the small business concern is primarily

engaged;

‘‘(13) the term ‘qualified nonprivate funds’ means any—

‘‘(A) funds directly or indirectly invested in any

applicant or licensee on or before August 16, 1982, by

any Federal agency, other than the Administration, under

a provision of law explicitly mandating the inclusion of

those funds in the definition of the term ‘private capital’;

‘‘(B) funds directly or indirectly invested in any

applicant or licensee by any Federal agency under a provision of law enacted after September 4, 1992, explicitly

mandating the inclusion of those funds in the definition

of the term ‘private capital’; and

‘‘(C) funds invested in any applicant or licensee by

one or more State or local government entities (including

any guarantee extended by those entities) in an aggregate

amount that does not exceed 33 percent of the private

capital of the applicant or licensee;

‘‘(14) the terms ‘employee welfare benefit plan’ and ‘pension

plan’ have the same meanings as in section 3 of the Employee

Retirement Income Security Act of 1974, and are intended

to include—

‘‘(A) public and private pension or retirement plans

subject to such Act; and
110 STAT. 3009–741 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(B) similar plans not covered by such Act that have

been established and that are maintained by the Federal

Government or any State or political subdivision, or any

agency or instrumentality thereof, for the benefit of employees;

‘‘(15) the term ‘member’ means, with respect to a licensee

that is a limited liability company, a holder of an ownership

interest or a person otherwise admitted to membership in the

limited liability company; and

‘‘(16) the term ‘limited liability company’ means a business

entity that is organized and operating in accordance with a

State limited liability company statute approved by the

Administration.’’.

(b) ORGANIZATION OF SMALL BUSINESS INVESTMENT COMPANIES.—

(1) LIMITED LIABILITY COMPANIES.—Section 301(a) (15

U.S.C. 681(a)) is amended in the first sentence, by striking

‘‘body or’’ and inserting ‘‘body, a limited liability company,

or’’.

(2) ISSUANCE OF LICENSE.—Section 301(c) (15 U.S.C. 681(c))

is amended to read as follows:

‘‘(c) ISSUANCE OF LICENSE.—

‘‘(1) SUBMISSION OF APPLICATION.—Each applicant for a

license to operate as a small business investment company

under this Act shall submit to the Administrator an application,

in a form and including such documentation as may be prescribed by the Administrator.

‘‘(2) PROCEDURES.—

‘‘(A) STATUS.—Not later than 90 days after the initial

receipt by the Administrator of an application under this

subsection, the Administrator shall provide the applicant

with a written report detailing the status of the application

and any requirements remaining for completion of the

application.

‘‘(B) APPROVAL OR DISAPPROVAL.—Within a reasonable

time after receiving a completed application submitted in

accordance with this subsection and in accordance with

such requirements as the Administrator may prescribe by

regulation, the Administrator shall—

‘‘(i) approve the application and issue a license

for such operation to the applicant if the requirements

of this section are satisfied; or

‘‘(ii) disapprove the application and notify the

applicant in writing of the disapproval.

‘‘(3) MATTERS CONSIDERED.—In reviewing and processing

any application under this subsection, the Administrator—

‘‘(A) shall determine whether—

‘‘(i) the applicant meets the requirements of subsections (a) and (c) of section 302; and

‘‘(ii) the management of the applicant is qualified

and has the knowledge, experience, and capability necessary to comply with this Act;

‘‘(B) shall take into consideration—

‘‘(i) the need for and availability of financing for

small business concerns in the geographic area in

which the applicant is to commence business;
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–742

‘‘(ii) the general business reputation of the owners

and management of the applicant; and

‘‘(iii) the probability of successful operations of the

applicant, including adequate profitability and financial soundness; and

‘‘(C) shall not take into consideration any projected

shortage or unavailability of leverage.

‘‘(4) EXCEPTION.—

‘‘(A) IN GENERAL.—Notwithstanding any other provision of this Act, the Administrator may, in the discretion

of the Administrator and based on a showing of special

circumstances and good cause, approve an application and

issue a license under this subsection with respect to any

applicant that—

‘‘(i) has private capital of not less than $3,000,000;

‘‘(ii) would otherwise be issued a license under

this subsection, except that the applicant does not satisfy the requirements of section 302(a); and

‘‘(iii) has a viable business plan reasonably projecting profitable operations and a reasonable timetable

for achieving a level of private capital that satisfies

the requirements of section 302(a).

‘‘(B) LEVERAGE.—An applicant licensed pursuant to the

exception provided in this paragraph shall not be eligible

to receive leverage as a licensee until the applicant satisfies

the requirements of section 302(a).’’.

(3) SPECIALIZED SMALL BUSINESS INVESTMENT COMPANIES.—

(A) REPEAL.—Section 301(d) (15 U.S.C. 681(d)) is

repealed.

(B) EFFECT ON EXISTING LICENSES.—The repeal under

subparagraph (A) shall not be construed to require the

Administrator to cancel, revoke, withdraw, or modify any

license issued under section 301(d) of the Small Business

Investment Act of 1958 before the date of enactment of

this Act.

(c) CAPITAL REQUIREMENTS.—

(1) INCREASED MINIMUM CAPITAL REQUIREMENTS.—Section

302(a) (15 U.S.C. 682(a)) is amended by striking ‘‘(a)’’ and

all that follows through ‘‘The Administration shall also determine the ability of the company,’’ and inserting the following:

‘‘(a) AMOUNT.—

‘‘(1) IN GENERAL.—Except as provided in paragraph (2),

the private capital of each licensee shall be not less than—

‘‘(A) $5,000,000; or

‘‘(B) $10,000,000, with respect to each licensee authorized or seeking authority to issue participating securities

to be purchased or guaranteed by the Administration under

this Act.

‘‘(2) EXCEPTION.—The Administrator may, in the discretion

of the Administrator and based on a showing of special circumstances and good cause, permit the private capital of a

licensee authorized or seeking authorization to issue participating securities to be purchased or guaranteed by the Administration to be less than $10,000,000, but not less than $5,000,000,

if the Administrator determines that such action would not

create or otherwise contribute to an unreasonable risk of default

or loss to the Federal Government.

15 USC 681 note.
110 STAT. 3009–743 PUBLIC LAW 104–208—SEPT. 30, 1996

‘‘(3) ADEQUACY.—In addition to the requirements of paragraph (1), the Administrator shall—

‘‘(A) determine whether the private capital of each

licensee is adequate to assure a reasonable prospect that

the licensee will be operated soundly and profitably, and

managed actively and prudently in accordance with its

articles; and

‘‘(B) determine that the licensee will be able’’.

(2) EXEMPTION FOR CERTAIN LICENSEES.—Section 302(a) (15

U.S.C. 682(a)) is amended by adding at the end the following

new paragraph:

‘‘(4) EXEMPTION FROM CAPITAL REQUIREMENTS.—The

Administrator may, in the discretion of the Administrator,

approve leverage for any licensee licensed under subsection

(c) or (d) of section 301 before the date of enactment of the

Small Business Program Improvement Act of 1996 that does

not meet the capital requirements of paragraph (1), if—

‘‘(A) the licensee certifies in writing that not less than

50 percent of the aggregate dollar amount of its financings

after the date of enactment of the Small Business Program

Improvement Act of 1996 will be provided to smaller enterprises; and

‘‘(B) the Administrator determines that such action

would not create or otherwise contribute to an unreasonable

risk of default or loss to the United States Government.’’.

(3) DIVERSIFICATION OF OWNERSHIP.—Section 302(c) (15

U.S.C. 682(c)) is amended to read as follows:

‘‘(c) DIVERSIFICATION OF OWNERSHIP.—The Administrator shall

ensure that the management of each licensee licensed after the

date of enactment of the Small Business Program Improvement

Act of 1996 is sufficiently diversified from and unaffiliated with

the ownership of the licensee in a manner that ensures independence and objectivity in the financial management and oversight

of the investments and operations of the licensee.’’.

(d) BORROWING.—

(1) DEBENTURES.—Section 303(b) (15 U.S.C. 683(b)) is

amended in the first sentence, by striking ‘‘(but only’’ and

all that follows through ‘‘terms)’’.

(2) THIRD PARTY DEBT.—Section 303(c) (15 U.S.C. 683(c))

is amended to read as follows:

‘‘(c) THIRD PARTY DEBT.—The Administrator—

‘‘(1) shall not permit a licensee having outstanding leverage

to incur third party debt that would create or contribute to

an unreasonable risk of default or loss to the Federal Government; and

‘‘(2) shall permit such licensees to incur third party debt

only on such terms and subject to such conditions as may

be established by the Administrator, by regulation or otherwise.’’.

(3) REQUIREMENT TO FINANCE SMALLER ENTERPRISES.—Section 303(d) (15 U.S.C. 683(d)) is amended to read as follows:

‘‘(d) REQUIREMENT TO FINANCE SMALLER ENTERPRISES.—The

Administrator shall require each licensee, as a condition of approval

of an application for leverage, to certify in writing that not less

than 20 percent of the aggregate dollar amount of the financings

of the licensee will be provided to smaller enterprises.’’.

(4) CAPITAL IMPAIRMENT REQUIREMENTS.—
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–744

(A) IN GENERAL.—Section 303(e) (15 U.S.C. 683(e)) is

amended to read as follows:

‘‘(e) CAPITAL IMPAIRMENT.—Before approving any application

for leverage submitted by a licensee under this Act, the Administrator—

‘‘(1) shall determine that the private capital of the licensee

meets the requirements of section 302(a); and

‘‘(2) shall determine, taking into account the nature of

the assets of the licensee, the amount and terms of any third

party debt owed by such licensee, and any other factors determined to be relevant by the Administrator, that the private

capital of the licensee has not been impaired to such an extent

that the issuance of additional leverage would create or otherwise contribute to an unreasonable risk of default or loss to

the Federal Government.’’.

(B) REGULATIONS.—

(i) UNIFORM APPLICABILITY.—Any regulation issued

by the Administration to implement section 303(e) of

the Small Business Investment Act of 1958 that applies

to any licensee with outstanding leverage obtained

before the effective date of that regulation, shall apply

uniformly to all licensees with outstanding leverage

obtained before that effective date.

(ii) DEFINITIONS.—For purposes of this subparagraph, the terms ‘‘Administration’’, ‘‘leverage’’ and

‘‘licensee’’ have the same meanings as in section 103

of the Small Business Investment Act of 1958.

(5) EQUITY INVESTMENT REQUIREMENT.—Section 303(g)(4)

(15 U.S.C. 683(g)(4)) is amended by striking ‘‘and maintain’’.

(6) FEES.—Section 303 (15 U.S.C. 683) is amended—

(A) in subsection (b), in the fifth sentence, by striking

‘‘1 per centum’’, and all that follows before the period

at the end of the sentence and inserting the following:

‘‘1 percent, plus an additional charge of 1 percent per

annum which shall be paid to and retained by the Administration’’;

(B) in subsection (g)(2), by striking ‘‘1 per centum,’’

and all that follows before the period at the end of the

paragraph and inserting the following: ‘‘1 percent, plus

an additional charge of 1 percent per annum which shall

be paid to and retained by the Administration’’; and

(C) by adding at the end the following new subsections:

‘‘(i) LEVERAGE FEE.—With respect to leverage granted by the

Administration to a licensee, the Administration shall collect from

the licensee a nonrefundable fee in an amount equal to 3 percent

of the face amount of leverage granted to the licensee, payable

upon the earlier of the date of entry into any commitment for

such leverage or the date on which the leverage is drawn by

the licensee.

‘‘(j) CALCULATION OF SUBSIDY RATE.—All fees, interest, and

profits received and retained by the Administration under this

section shall be included in the calculations made by the Director

of the Office of Management and Budget to offset the cost (as

that term is defined in section 502 of the Federal Credit Reform

Act of 1990) to the Administration of purchasing and guaranteeing

debentures and participating securities under this Act.’’.

15 USC 683 note.
110 STAT. 3009–745 PUBLIC LAW 104–208—SEPT. 30, 1996

(e) LIABILITY OF THE UNITED STATES.—Section 308(e) (15 U.S.C.

687(e)) is amended by striking ‘‘Nothing’’ and inserting ‘‘Except

as expressly provided otherwise in this Act, nothing’’.

(f) EXAMINATIONS; VALUATIONS.—

(1) EXAMINATIONS.—Section 310(b) (15 U.S.C. 687b(b)) is

amended in the first sentence by inserting ‘‘which may be

conducted with the assistance of a private sector entity that

has both the qualifications to conduct and expertise in conducting such examinations,’’ after ‘‘Investment Division of the

Administration,’’.

(2) VALUATIONS.—Section 310(d) (15 U.S.C. 687b(d)) is

amended to read as follows:

‘‘(d) VALUATIONS.—

‘‘(1) FREQUENCY OF VALUATIONS.—

‘‘(A) IN GENERAL.—Each licensee shall submit to the

Administrator a written valuation of the loans and investments of the licensee not less often than semiannually

or otherwise upon the request of the Administrator, except

that any licensee with no leverage outstanding shall submit

such valuations annually, unless the Administrator determines otherwise.

‘‘(B) MATERIAL ADVERSE CHANGES.—Not later than 30

days after the end of a fiscal quarter of a licensee during

which a material adverse change in the aggregate valuation

of the loans and investments or operations of the licensee

occurs, the licensee shall notify the Administrator in writing of the nature and extent of that change.

‘‘(C) INDEPENDENT CERTIFICATION.—

‘‘(i) IN GENERAL.—Not less than once during each

fiscal year, each licensee shall submit to the Administrator the financial statements of the licensee, audited

by an independent certified public accountant approved

by the Administrator.

‘‘(ii) AUDIT REQUIREMENTS.—Each audit conducted

under clause (i) shall include—

‘‘(I) a review of the procedures and documentation used by the licensee in preparing the valuations required by this section; and

‘‘(II) a statement by the independent certified

public accountant that such valuations were prepared in conformity with the valuation criteria

applicable to the licensee established in accordance

with paragraph (2).

‘‘(2) VALUATION CRITERIA.—Each valuation submitted under

this subsection shall be prepared by the licensee in accordance

with valuation criteria, which shall—

‘‘(A) be established or approved by the Administrator;

and

‘‘(B) include appropriate safeguards to ensure that the

noncash assets of a licensee are not overvalued.’’.

(g) TRUSTEE OR RECEIVERSHIP OVER LICENSEES.—

(1) FINDING.—It is the finding of the Congress that

increased recoveries on assets in liquidation under the Small

Business Investment Act of 1958 are in the best interests

of the Federal Government.

(2) DEFINITIONS.—For purposes of this subsection—
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–746

(A) the term ‘‘Administrator’’ means the Administrator

of the Small Business Adminstration;

(B) the term ‘‘Administration’’ means the Small Business Administration; and

(C) the term ‘‘licensee’’ has the same meaning as in

section 103.

(3) LIQUIDATION PLAN.—

(A) IN GENERAL.—Not later than October 15, 1996,

the Administrator shall submit to the Committees on Small

Business of the Senate and the House of Representatives

a detailed plan to expedite the orderly liquidation of all

licensee assets in liquidation, including assets of licensees

in receivership or in trust held by or under the control

of the Administration or its agents.

(B) CONTENTS.—The plan submitted under paragraph

(1) shall include a timetable for liquidating the liquidation

portfolio of small business investment company assets

owned by the Administration, and shall contain the findings

and recommendations of the Administrator on various

options providing for the fair and expeditious liquidation

of such assets within a reasonable period of time, giving

due consideration to the option of entering into one or

more contracts with private sector entities having the

capability to carry out the orderly liquidation of similar

assets.

(h) TECHNICAL AND CONFORMING AMENDMENTS.—

(1) SMALL BUSINESS INVESTMENT ACT OF 1958.—The Small

Business Investment Act of 1958 (15 U.S.C. 661 et seq.) is

amended—

(A) in section 303—

(i) in subsection (a), by striking ‘‘debenture bonds,’’

and inserting ‘‘securities,’’;

(ii) by striking subsection (f) and inserting the

following:

‘‘(f) REDEMPTION OR REPURCHASE OF PREFERRED STOCK.—

Notwithstanding any other provision of law—

‘‘(1) the Administrator may allow the issuer of any preferred

stock sold to the Administration before November 1, 1989 to

redeem or repurchase such stock, upon the payment to the

Administration of an amount less than the par value of such

stock, for a repurchase price determined by the Administrator

after consideration of all relevant factors, including—

‘‘(A) the market value of the stock;

‘‘(B) the value of benefits provided and anticipated

to accrue to the issuer;

‘‘(C) the amount of dividends paid, accrued, and anticipated; and

‘‘(D) the estimate of the Administrator of any anticipated redemption; and

‘‘(2) any moneys received by the Administration from the

repurchase of preferred stock shall be available solely to provide

debenture leverage to licensees having 50 percent or more

in aggregate dollar amount of their financings invested in

smaller enterprises.’’; and

(iii) in subsection (g)(8)—

(I) by striking ‘‘partners or shareholders’’ and

inserting ‘‘partners, shareholders, or members’’;

15 USC 683.
110 STAT. 3009–747 PUBLIC LAW 104–208—SEPT. 30, 1996

(II) by striking ‘‘partner’s or shareholder’s’’ and

inserting ‘‘partner’s, shareholder’s, or member’s’’;

and

(III) by striking ‘‘partner or shareholder’’ and

inserting ‘‘partner, shareholder, or member’’;

(B) in section 308(h), by striking ‘‘subsection (c) or

(d) of section 301’’ each place that term appears and inserting ‘‘section 301’’;

(C) in section 310(c)(4), by striking ‘‘not less than four

years in the case of section 301(d) licensees and in all

other cases,’’;

(D) in section 312—

(i) by striking ‘‘shareholders or partners’’ and

inserting ‘‘shareholders, partners, or members’’; and

(ii) by striking ‘‘shareholder, or partner’’ each place

that term appears and inserting ‘‘shareholder, partner,

or member’’;

(E) by striking sections 317 and 318, and redesignating

sections 319 through 322 as sections 317 through 320,

respectively;

(F) in section 319, as redesignated—

(i) in subsection (a), by striking ‘‘, including companies operating under the authority of section 301(d),’’;

and

(ii) in subsection (f)(2), by inserting ‘‘or investments

in obligations of the United States’’ after ‘‘accounts’’;

(G) in section 320, as redesignated, by striking ‘‘section

321’’ and inserting ‘‘section 319’’; and

(H) in section 509—

(i) in subsection (a)(1), by striking the second sentence; and

(ii) in subsection (e)(1)(B), by striking ‘‘subsection

(c) or (d) of section 301’’ and inserting ‘‘section 301’’.

(2) AMENDMENT IN OTHER LAW.—Section 11(h) of the Federal Home Loan Bank Act (12 U.S.C. 1431(h)) is amended

by striking ‘‘301(d)’’ and inserting ‘‘301’’.

(i) AMENDMENTS TO THE SMALL BUSINESS ACT.—

(1) POWERS OF THE ADMINISTRATOR.—Section 5(b)(7) of the

Small Business Act (15 U.S.C. 634(b)(7)) is amended by striking

the colon and all that follows before the semicolon at the

end of the paragraph and inserting the following: ‘‘: Provided,

That with respect to deferred participation loans, the Administrator may, in the discretion of and pursuant to regulations

promulgated by the Administrator, authorize participating lending institutions to take actions relating to loan servicing on

behalf of the Administrator, including determining eligibility

and creditworthiness and loan monitoring, collection, and liquidation’’.

(2) AUTHORIZATION OF APPROPRIATIONS.—Section 20(p)(3)

of the Small Business Act (15 U.S.C. 631 note) is amended

by striking subparagraph (B) and inserting the following:

‘‘(B) $300,000,000 in guarantees of debentures; and’’.

(j) EFFECTIVE DATE.—This section and the amendments made

by this section shall become effective on the date of enactment

of this Act.

15 USC 634 note.

15 USC 697f.

15 USC 687m.

15 USC 687l.

15 USC 80a–18,

687i–687m.

15 USC 687d.

15 USC 687b.

15 USC 687.
PUBLIC LAW 104–208—SEPT. 30, 1996 110 STAT. 3009–748

DIVISION E

TITLE I—CALIFORNIA BAY-DELTA ENVIRONMENTAL ENHANCEMENT AND

WATER SECURITY ACT

SEC. 101. SHORT TITLE.

This title may be cited as the ‘‘California Bay-Delta Environmental Enhancement and Water Security Act.’’

SEC. 102. PROGRAM FUNDING.

(a) AUTHORIZATION OF APPROPRIATIONS.—For each of the fiscal

years 1998, 1999 and 2000, there are authorized to be appropriated

an additional $143,300,000 for both (1) the initial Federal share

of the cost of developing and implementing that portion of an

ecosystem protection plan for the Bay-Delta, referred to as ‘‘the

Category III program’’ emanating out of the document entitled

‘‘Principles for Agreement on Bay-Delta Standards Between the

State of California and the Federal Government,’’ dated December

15, 1994, and, (2) the initial Federal share of the cost of developing

and implementing the ecosystem restoration elements of the longterm CALFED Bay-Delta Program, pursuant to the cost-sharing

agreement required by Section 78684.10 of California Senate Bill

900, Chapter 135, Statutes of 1996, signed by the Governor of

California on July 11, 1996. Funds appropriated pursuant to this

section shall remain available until expended and shall be administered in accordance with procedures established by CALFED BayDelta Program until Congress authorizes another entity that is

recommended by CALFED Bay-Delta Program to carry out this

section.

(b) Funds authorized to be appropriated pursuant to this section

to those agencies that are currently or subsequently become participants in the CALFED Bay-Delta Program shall be in addition

to the baseline funding levels established pursuant to section 103

of this title, for currently authorized projects and programs under

the Central Valley Project Improvement Act, Title 34 of Public

Law 102–575 and other currently authorized Federal programs

for the purpose of Bay-Delta ecosystem protection and restoration.

(c) Nothing in this title shall be deemed to diminish the Federal

interest in and responsibility for working with the State of California through the CALFED Bay-Delta Program in developing, funding

and implementing a balanced, long-term solution to the problems

of ecosystem quality, water quality, water supply and reliability,

and system vulnerability affecting the San Francisco Bay/Sacramento-San Joaquin Delta Watershed in California. Participation

in such long-term solution shall only be undertaken pursuant to

authorization provided by law other than this title, and shall be

based on the equitable allocation of program costs among beneficiary

groups that the CALFED Bay-Delta programs shall develop.

(d) To the extent not otherwise authorized, those agencies and

departments that are currently or subsequently become participants

in the CALFED Bay-Delta Program are hereby authorized to undertake the activities and programs for which Federal cost sharing

is provided by this section. The United States shall immediately

initiate coordinated consultations and negotiations with the State

California BayDelta

Environmental

Enhancement

and Water

Security Act.
110 STAT. 3009–749 PUBLIC LAW 104–208—SEPT. 30, 1996

LEGISLATIVE HISTORY—H.R. 3610 (S. 1894):

HOUSE REPORTS: Nos. 104–617 (Comm. on Appropriations) and 104–863 (Comm.

on Conference).

SENATE REPORTS: No. 104–286 accompanying S. 1894 (Comm. on Appropriations).

CONGRESSIONAL RECORD, Vol. 142 (1996):

June 13, considered and passed House.

July 11, 17, 18, considered and passed Senate, amended, in lieu of S. 1894.

Sept. 28, House agreed to conference report.

Sept. 30, Senate agreed to conference report.

WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996):

Sept. 30, Presidential statement.

Æ

of California to expeditiously execute the cost-sharing agreement

required by Section 78684.10 of California Senate Bill 900, Chapter

135, Statutes of 1996, signed by the Governor of California on

July 11, 1996. Such activities shall include, but not be limited

to, planning, design, technical assistance and construction for ecosystem restoration programs and projects.

SEC. 103. BUDGET CROSSCUT.

The Office of Management and Budget is directed to submit

to the House and Senate Committees on Appropriations, as part

of the President’s Fiscal Year 1998 Budget, an interagency budget

crosscut that displays Federal spending for fiscal years 1993

through 1998 on ecosystem restoration and other purposes in the

Bay-Delta region, separately showing funding provided previously

or requested under both preexisting authorities and new authorities

granted by this title.

SEC. 104. EFFECTIVE DATE.

Section 102 of this title shall take effect on the date of passage

of California State Proposition 204.

This Act may be cited as the ‘‘Omnibus Consolidated Appropriations Act, 1997’’.

Approved September 30, 1996.