Union Calendar No. 201

103D CONGRESS

1ST SESSION H. R. 3400

[Report No. 103–366, Parts I, II, III, IV, V, VI,

VII, VIII, IX, and X]

A BILL

To provide a more effective, efficient, and

responsive government.

NOVEMBER 15, 1993

Committees on Armed Services, Education and Labor,

Union and ordered to be printedthe Committee of the Whole House on the State of theligence, and Ways and Means discharged; committed toOperations, Permanent Select Committee on IntelEnergy and Commerce, Foreign Affairs, Government
IB

Union Calendar No. 201

103D CONGRESS

1ST SESSION H. R. 3400

[Report No. 103–366, Parts I, II, III, IV, V, VI, VII, VIII, IX, and

X]

To provide a more effective, efficient, and responsive government.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 28, 1993

Mr. GEPHARDT introduced the following bill; which was referred jointly to the

following committees for a period ending not later than November 15,

1993: Agriculture, Armed Services, Banking, Finance and Urban Affairs,

Education and Labor, Energy and Commerce, Foreign Affairs, Government Operations, House Administration, the Judiciary, Merchant Marine

and Fisheries, Natural Resources, Permanent Select Committee on Intelligence, Post Office and Civil Service, Public Works and Transportation,

Science, Space, and Technology, Veterans’ Affairs, and Ways and Means

NOVEMBER 15, 1993

Reported from the Committee on Science, Space, and Technology with

amendments

[In Title II insert the part printed in italic]

NOVEMBER 15, 1993

Reported from the Committee on Veterans’ Affairs with amendments

[In Title XII omit the part struck through and insert the part printed in italic]

NOVEMBER 15, 1993

Reported from the Committee on Post Office and Civil Service with

amendments

[In Title XIII omit the part struck through and insert the part printed in italic]

NOVEMBER 15, 1993

Reported from the Committee on Public Works and Transportation with

amendments
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[In Titles III and XI omit the part struck through and insert the part printed in italic]

NOVEMBER 15, 1993

Reported from the Committee on Natural Resources with amendments

[In Titles IV and VII omit the part struck through, insert the part printed in italic and amend

the table of contents]

NOVEMBER 15, 1993

Reported from the Committee on House Administration with an amendment

[In Title XIV omit the part struck through and insert the part printed in italic]

NOVEMBER 15, 1993

Reported from the Committee on Merchant Marine and Fisheries with

amendments

[In Title XI omit the part in bold parentheses and insert the part printed in boldface roman]

NOVEMBER 15, 1993

Reported from the Committee on the Judiciary with amendments

[In Titles VIII and XVI omit the part struck through]

NOVEMBER 15, 1993

Reported from the Committee on Agriculture with amendments

[In Title I omit the part struck through, insert the part printed in italic, and amend the table

of contents]

NOVEMBER 15, 1993

Reported from the Committee on Banking, Finance and Urban Affairs with

an amendment

[In Title VI omit the part struck through and insert the part printed in italic]

NOVEMBER 15, 1993

Committees on Armed Services, Education and Labor, Energy and Commerce,

Foreign Affairs, Government Operations, Permanent Select Committee on

Intelligence, and Ways and Means discharged; committed to the Committee of the Whole House on the State of the Union and ordered to be

printed

A BILL

To provide a more effective, efficient, and responsive

government.

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

2 This Act may be cited as the ‘‘Government Reform

3 and Savings Act of 1993’’.

4 SEC. 2. TABLE OF CONTENTS.

5 The table of contents is as follows:

TITLE I—DEPARTMENT OF AGRICULTURE

Subtitle A—Department of Agriculture Reorganization

Subtitle B—Eliminate Federal Support for Wool and Mohair

Subtitle B—Eliminating Federal Support for Honey

Subtitle C—Eliminate Federal Support for Honey

TITLE II—DEPARTMENT OF COMMERCE

Polar Satellite Convergence

TITLE III—DEPARTMENT OF DEFENSE

Subtitle A—Create Incentives for the Department of Defense to Generate

Revenues

Subtitle B—Closure of the Uniform Services University of the Health

Sciences

Subtitle C—Streamline and Reorganize the United States Army Corps of

Engineers

TITLE IV—DEPARTMENT OF ENERGY

Subtitle A—Alaska Power Administration Sale Authorization Act

Subtitle B—Federal-Private Cogeneration of Electricity

Subtitle C—Power Marketing Administration Debt Buyout

Subtitle C—Power Marketing Administrations

Subtitle D—Termination of Advanced Liquid Metal Reactor Program

TITLE V—DEPARTMENT OF HEALTH AND HUMAN SERVICES

Subtitle A—Increased Flexibility in Contracting for Medicare Claims

Processing

Subtitle B—Workers’ Compensation Data Exchange Pilot Projects

Subtitle C—Federal Clearinghouse on Death Information

Subtitle D—Continuing Disability Reviews
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TITLE VI—DEPARTMENT OF HOUSING AND URBAN

DEVELOPMENT

Subtitle A—Multifamily Property Disposition

Subtitle B—Merger of the Certificate and Voucher Programs

Subtitle C—Streamline HUD

Subtitle D—Refinance Section 235 Mortgages

Subtitle E—Section 8 Rents for New Construction and Rehabilitation

Projects

TITLE VII—DEPARTMENT OF THE INTERIOR

Subtitle A—Improve the Federal Helium Program

Subtitle B A—Improve Minerals Management Service Royalty Collection

Subtitle C B—Phase Out the Mineral Institute Program

Subtitle C—Reorganization of Bureau of Indian Affairs

Subtitle D—Termination of Annual Direct Grant Assistance

TITLE VIII—DEPARTMENT OF JUSTICE

Bureau of Prisons Health Services User Fee

TITLE IX—DEPARTMENT OF LABOR

Subtitle A—Deterrence of Fraud and Abuse in the FECA Program

Subtitle B—Enhancement of Reemployment Programs for Federal Employees

Disabled in the Performance of Duty

Subtitle C—Wage Determinations—McNamara-O’Hara Service Contract Act

and Davis-Bacon Act

Subtitle D—Elimination of Filing Requirement for Plan Descriptions, Summary Plan Descriptions, and Descriptions of Material Modifications to a

Plan

TITLE X—DEPARTMENT OF STATE/UNITED STATES

INFORMATION AGENCY

Reduction of Mission Operating Costs

TITLE XI—DEPARTMENT OF TRANSPORTATION

Subtitle A—Authority to Charge Tuition for Attendance at the United States

Merchant Marine Academy

Subtitle B—Reform of the Essential Air Service Program

Subtitle C—Repeal of Authorization for the Airway Science Program, Collegiate Training Initiative, and Air Carrier Maintenance Technical Training

Facility Grant Program
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Subtitle D—Capital Budgeting

Subtitle E—Public Buildings

TITLE XII—DEPARTMENT OF VETERANS AFFAIRS

Subtitle A—Remove Certain Limitations and Restrictions Contained in

Veterans Law

Subtitle B—Closure of Supply Depots and Transfer of Revolving Supply

Fund Money

Subtitle C—Provision of Information from the Medicare and Medicaid

Coverage Data Bank to the Department of Veterans Affairs

Subtitle D—Veterans’ Appeals Improvement Act of 1993

TITLE XIII—HUMAN RESOURCE MANAGEMENT

Subtitle A—Federal Workforce Restructuring Act of 1993

Subtitle B—SES Annual Leave Accumulation

TITLE XIV—REINVENTING SUPPORT SERVICES

Government Information Dissemination and Printing Improvement Act of

1993

TITLE XV—STREAMLINING MANAGEMENT CONTROL

Authority to Increase Efficiency in Reporting to Congress

TITLE XVI—IMPROVING FINANCIAL MANAGEMENT

Subtitle A—Electronic Payments

Subtitle B—Franchise Funds and Innovation Funds

Subtitle C—Simplifying the Management Reporting Process

Subtitle D—Annual Financial Reports

Subtitle E—Strengthening Debt Collection Programs

Subtitle F—Improving Department of Justice Debt Collection

Subtitle G—Adjusting Civil Monetary penalties for Inflation

TITLE XVII—YEAR-END SPENDING
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1 TITLE I—DEPARTMENT OF

2 AGRICULTURE

3 Subtitle A—Department of

4 Agriculture Reorganization

5 SEC. 1001. DEPARTMENT OF AGRICULTURE REORGANIZA6 TION.

7 Pursuant to authorities proposed in the Department

8 of Agriculture Reorganization Act of 1993 (H.R. 3171)

9 and current legal authorities, the Secretary of Agriculture

10 shall take action to restructure and reinvent the Depart11 ment of Agriculture by reducing the number of agencies

12 in the Department, reducing headquarters and adminis13 trative staffing and overhead, closing or consolidating un14 necessary field locations, and taking such other actions as

15 may be necessary to reduce the staffing of the department

16 by not less than 7,500 staff years and save a total of not

17 less than $1.64 billion in fiscal years 1995 through 1999.

18 Subtitle B—Eliminate Federal

19 Support for Wool and Mohair

20 SEC. 1101. AMENDMENTS TO SECTION 703 OF NATIONAL

21 WOOL ACT OF 1954.

22 Section 703 of the National Wool Act of 1954 (7

23 U.S.C. 1782) is amended—

24 (1) by striking subsection (a) and inserting the

25 following new subsection:
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1 ‘‘(a) Subject to subsection (b)(3), the Secretary of

2 Agriculture shall, through the Commodity Credit Corpora3 tion, make loans and payments to producers of wool and

4 mohair through December 31, 1995.’’;

5 (2) in subsection (b)—

6 (A) in paragraph (2), by striking ‘‘1997’’

7 and inserting ‘‘1995’’; and

8 (B) by striking paragraph (3) and insert9 ing the following new paragraph:

10 ‘‘(3) No loans, purchases, or payments shall be made

11 for the 1996 and subsequent marketing years, except that

12 loans and payments for the 1995 marketing year shall be

13 paid in 1996.’’; and

14 (3) by adding at the end the following new

15 paragraph:

16 ‘‘(4)(A) Through December 31, 1995, the Secretary

17 shall offer to wool and mohair producers recourse loans

18 under terms and conditions that are prescribed by the Sec19 retary, except that the loans shall be administered at no

20 net cost to the Federal Government.

21 ‘‘(B) A producer who fails to repay a loan made

22 under subparagraph (A) by the end of the following mar23 keting year shall be ineligible for a loan under this Act

24 for that marketing year and subsequent marketing

25 years.’’.
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1 SEC. 1102. AMENDMENT TO SECTION 704 OF NATIONAL

2 WOOL ACT OF 1954.

3 Section 704(a) of the National Wool Act of 1954 (7

4 U.S.C. 1783(a)) is amended by inserting after the first

5 sentence the following new sentence: ‘‘In the case of each

6 of the 1994 and 1995 marketing years, the payments shall

7 be 75 and 50 percent, respectively, of the amount other8 wise determined under the preceding sentence.’’.

9 SEC. 1103. REPEAL OF NATIONAL WOOL ACT OF 1954.

10 (a) IN GENERAL.—Effective December 31, 1995, the

11 National Wool Act of 1954 (7 U.S.C. 1781 et seq.) is

12 repealed.

13 (b) APPLICATION.—The repeal made by subsection

14 (a) shall apply to both the wool and mohair programs.

15 (c) PROHIBITION.—Effective beginning December

16 31, 1995, the Secretary of Agriculture may not provide

17 loans or payments for wool or mohair by using the funds

18 of the Commodity Credit Corporation or under the author19 ity of any law.

20 SEC. 1104. REPEAL OF SECTION 702 OF NATIONAL WOOL

21 ACT OF 1954, ETC.

22 (a) Section 702 of the National Wool Act of 1954

23 (7 U.S.C. 1781) is repealed.

24 (b) Section 703 of such Act (7 U.S.C. 1782) is

25 amended—
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1 (1) by striking the section heading and insert2 ing the following new section heading: ‘‘SUPPORT

3 PRICE FOR WOOL AND MOHAIR’’;

4 (2) in subsection (b)(1)(i), by striking ‘‘such

5 price support’’ and inserting ‘‘the support price’’;

6 and

7 (3) in subsection (d), by striking ‘‘price sup8 port’’ and inserting ‘‘support under this section’’.

9 (c) Section 704 of such Act (7 U.S.C. 1783) is

10 amended—

11 (1) by striking the section heading and insert12 ing the following new section heading:

13 ‘‘SEC. 704. PAYMENTS.’’;

14 and

15 (2) in subsection (a), by striking ‘‘If payments

16 are utilized as a means of price support, the’’ and

17 inserting ‘‘The’’.

18 (d) The first sentence of section 706 of such Act (7

19 U.S.C. 1785) is amended by striking ‘‘price support oper20 ations’’ and inserting ‘‘operations under this Act’’.

21 SEC. 1105. SAVINGS PROVISION.

22 A provision of this subtitle may not affect the liability

23 of any person under any provision of law as in effect be24 fore the effective date of the provision.
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1 Subtitle C—Eliminate Federal

2 Support for Honey

3 SEC. 1201. AMENDMENTS TO SECTION 207 OF AGRICUL4 TURAL ACT OF 1949.

5 Section 207 of the Agricultural Act of 1949 (7 U.S.C.

6 1446h) is amended—

7 (1) by striking ‘‘1998’’ each place it appears, in

8 subsections (a), (c), and (j), and inserting ‘‘1995’’;

9 (2) by striking ‘‘loan’’ each place it appears ex10 cept for subsection (d), and inserting ‘‘nonrecourse

11 loan’’; and

12 (3) in subsection (a), by striking paragraphs

13 (3), (4), and (5) and inserting the following new

14 paragraph:

15 ‘‘(4)(i) No loans, purchases, or payments shall

16 be made for the 1996 and subsequent crop years.

17 ‘‘(ii) Through December 31, 1995, the Sec18 retary shall offer to honey producers recourse loans

19 under terms and conditions that are prescribed by

20 the Secretary, except that the loans shall be admin21 istered at no net cost to the Federal Government.

22 ‘‘(iii) A producer who fails to repay a loan made

23 under clause (ii) by the end of the following market24 ing year shall be ineligible for a loan under this Act
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1 for that marketing year and subsequent marketing

2 years.’’.

3 SEC. 1202. FURTHER AMENDMENTS TO SECTION 207 OF AG4 RICULTURAL ACT OF 1949.

5 Section 207 of the Agricultural Act of 1949 (7 U.S.C.

6 1446h) is amended—

7 (1) After subsection (b)(2), by inserting the

8 following:

9 ‘‘(3) In the case of the 1994 and 1995 market10 ing years, the quantity of honey for which a pro11 ducer may receive a nonrecourse loan shall be re12 duced by 25 and 50 percent, respectively, of the

13 lesser of—

14 ‘‘(i) the amount requested for a

15 nonrecourse loan, or

16 ‘‘(ii) the most recent five year average of

17 previous loan placements.

18 ‘‘(4) The honey not eligible for the nonrecourse

19 loan shall be eligible for a recourse loan but shall

20 not be eligible for a loan deficiency payment.’’;

21 (2) In paragraphs (3) and (4), by striking

22 ‘‘(3)’’ and ‘‘(4)’’ and inserting ‘‘(4)’’ and ‘‘(5)’’; and

23 (3) After subsection (c)(2), by inserting the fol24 lowing new paragraph:
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1 ‘‘(3) In the case of the 1994 and 1995 market2 ing years, the quantity of honey for which a pro3 ducer can receive loan deficiency payments shall be

4 75 and 50 percent, respectively, of the lesser of—

5 ‘‘(i) the amount requested for honey eligi6 ble for nonrecourse loans, or

7 ‘‘(ii) the average amount received in loan

8 deficiency payments for the previous five

9 years.’’.

10 SEC. 1203. AMENDMENTS TO SECTION 405A OF AGRICUL11 TURAL ACT OF 1949.

12 Section 405A of the Agricultural Act of 1949 (7

13 U.S.C. 1425a) is amended—

14 (1) in subsection (a), by striking ‘‘$125,000’’

15 and inserting ‘‘$75,000’’; and

16 (2) in subsection (a), by striking all that follows

17 ‘‘Provided, however,’’ and inserting ‘‘In the case of

18 the 1994 and 1995 marketing years, the amount

19 that a producer can forfeit shall be limited by the

20 amount that can be put under loan as determined

21 under section 207(b) and (c) of this Act.’’.
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1 SEC. 1204. REPEAL OF SECTION 207 OF AGRICULTURAL ACT

2 OF 1949.

3 (a) IN GENERAL.—Effective December 31, 1995,

4 Section 207 of the Agricultural Act of 1949 (7 U.S.C.

5 1446h) is repealed.

6 (b) PROHIBITION.—Effective beginning December

7 31, 1995, the Secretary of Agriculture may not provide

8 loans or payments for honey by using the funds of the

9 Commodity Credit Corporation or under the authority of

10 any law, except that the Commodity Credit Corporation

11 may settle any outstanding loans made on or before

12 December 31, 1995.

13 SEC. 1205. SAVINGS PROVISION.

14 A provision of this subtitle may not affect the liability

15 of any person under any provision of law as in effect be16 fore the effect date of the provision.

17 TITLE I—DEPARTMENT OF

18 AGRICULTURE

19 Subtitle A—Department of

20 Agriculture Reorganization

21 SEC. 1001. DEPARTMENT OF AGRICULTURE REORGANIZA22 TION.

23 (a) IN GENERAL.—The Secretary of Agriculture shall

24 (1) consolidate field, regional, and national offices within

25 the Department of Agriculture and (2) reduce personnel by

26 not less than 7,500 staff years, so as to achieve a reduction
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1 in expenditures by the Department of not less than

2 $1,640,000,000 during the period fiscal years 1995 through

3 1999.

4 (b) AUTHORITIES.—In consolidating offices and reduc5 ing personnel as required by subsection (a), the Secretary

6 shall take such action on the basis of the powers vested in

7 the Secretary under other laws.

8 Subtitle B—Eliminating Federal

9 Support for Honey

10 SEC. 1101. AMENDMENTS TO SECTION 207 OF THE AGRICUL11 TURAL ACT OF 1949.

12 (a) Section 207(a) of the Agricultural Act of 1949 is

13 amended to read as follows:

14 ‘‘(a) IN GENERAL.—For each of the 1991 through 1995

15 crops of honey, the price of honey shall be supported through

16 loans, purchases, or other operations, except that for the

17 1994 and 1995 crops, the price of honey shall be supported

18 through recourse loans.

19 ‘‘(1) For the 1991 through 1993 crop years, the

20 rate of support shall be not less than 53.8 cents per

21 pound.

22 ‘‘(2) For the 1994 and 1995 crop years, the Sec23 retary shall provide recourse loans to producers at

24 such a rate that minimizes costs and forfeitures, ex25 cept that such rate shall not be less than 44 cents a
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1 pound. Section 407 shall not be applicable to honey

2 forfeited to the Commodity Credit Corporation under

3 loans made under this paragraph.

4 ‘‘(3) A producer who fails to repay a loan made

5 under paragraph (2) by the end of the crop year fol6 lowing the crop year for which such loan was made

7 shall be ineligible for a loan under this section for

8 subsequent crop years, except that the Secretary may

9 waive this provision in any case where in which the

10 Secretary determines that the failure to repay the

11 loan was due to hardship conditions or circumstances

12 beyond the control of the producer.’’.

13 (b) Section 207(b) of the Agricultural Act of 1949 is

14 amended by striking ‘‘for a crop’’ and inserting ‘‘for the

15 1991 through 1993 crops’’.

16 (c) Section 207(c) of the Agricultural Act of 1949 is

17 amended by striking ‘‘1998’’ and inserting ‘‘1993’’.

18 (d) Section 207(e) of the Agricultural Act of 1949 is

19 amended by—

20 (1) striking subparagraphs (D) through (G);

21 (2) inserting ‘‘and’’ after the semicolon following

22 subparagraph (B); and

23 (3) changing the semicolon following subpara24 graph (C) to a period.
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1 (e) Section 207(j) of the Agricultural Act of 1949 is

2 amended by striking ‘‘1998’’ and inserting ‘‘1995’’.

3 SEC. 1102. AMENDMENT TO SECTION 405 OF THE AGRICUL4 TURAL ACT OF 1949.

5 Section 405(a) of the Agricultural Act of 1949 is

6 amended by striking in the first sentence ‘‘section 405A’’

7 and inserting ‘‘sections 207 and 405A’’.

8 SEC. 1103. AMENDMENTS TO SECTION 405A OF THE AGRI9 CULTURAL ACT OF 1949.

10 Section 405A(a) of the Agricultural Act of 1949 is

11 amended by striking all that follows ‘‘1992 crop year,’’ and

12 inserting ‘‘and $150,000 in the 1993 crop year.’’.

13 SEC. 1104. SAVINGS PROVISION.

14 A provision of this subtitle may not affect the liability

15 of any person under any provision of law as in effect before

16 the effective date of the provision.

17 TITLE II—DEPARTMENT OF

18 COMMERCE

19 SEC. 2001. POLAR SATELLITE CONVERGENCE.

20 The Departments of Commerce and Defense and the

21 National Aeronautics and Space Administration shall pro22 pose a single operational polar environmental and weather

23 satellite system, which meets national needs. It is the sense

24 of Congress that such a proposed system, contingent on the

25 provision of adequate resources to fully meet the national
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1 security interests of the United States, shall be operated as

2 a civil system by the Department of Commerce. A detailed

3 implementation plan shall be submitted to Congress by the

4 Director of the Office of Science and Technology Policy,

5 in consultation with the Departments of Commerce and

6 Defense and the National Aeronautics and Space Adminis7 tration, by April 30, 1994. The plan shall be designed to

8 result in savings of up to $300 million in budget authority

9 and up to $251 million in outlays between fiscal years

10 1994 and 1999. The National Aeronautics and Space Ad11 ministration and the National Oceanic and Atmospheric

12 Administration shall jointly develop a plan to implement

13 a program modelled after the Operational Satellite Im14 provement Program for the purpose of making incremental

15 enhancements in operational weather satellite systems. The

16 goal of the plan shall be to achieve these enhancements in

17 a cost effective manner by implementing procedures aimed

18 at avoiding duplication of effort, cost overruns, and sched19 ule delays. The Administrators of the National Aeronautics

20 and Space Administration and the National Oceanic and

21 Atmospheric Administration shall submit to Congress no

22 later than April 30, 1994, a report detailing the elements

23 of the plan and outlining savings in budget authority and

24 budget outlays projected through fiscal year 1999.
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1 TITLE III—DEPARTMENT OF

2 DEFENSE

3 Subtitle A—Create Incentives for

4 the Department of Defense to

5 Generate Revenues

6 SEC. 3001. INCENTIVES FOR DEPARTMENT OF DEFENSE TO

7 GENERATE REVENUES.

8 Section 2577 of title 10, United States Code, is

9 amended by striking subsections (b) and (c), and inserting

10 the following new subsection:

11 ‘‘(b) Proceeds from the sale of recyclable materials

12 at an installation shall be credited to funds available for

13 operations and maintenance at that installation, and, at

14 the discretion of the installation commander, to the

15 nonappropriated morale and welfare account of the instal16 lation to be used for any morale and welfare activity.’’.

17 Subtitle B—Closure of the Uniform

18 Services University of the

19 Health Sciences

20 SEC. 3101. CLOSURE OF UNIFORM SERVICES UNIVERSITY

21 OF THE HEALTH SCIENCES.

22 (a) REPEAL OF AUTHORITY.—Chapter 104 of title

23 10, United States Code, is hereby repealed.

24 (b) PHASE-OUT PROCESS.—(1) Notwithstanding any

25 other provision of law, the Secretary of Defense shall
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1 phase out the Uniformed Services University of the Health

2 Sciences, beginning in fiscal year 1995, and ending with

3 the closure of such University not later than September

4 30, 1998. No provision of section 2687 of title 10, United

5 States Code, or of any other law establishing preconditions

6 to the closure of any activity of the Department of Defense

7 shall operate to establish any precondition to the phase8 out and closure of the Uniformed Services University of

9 the Health Sciences pursuant to this subtitle.

10 (2) Under the phase-out process required by para11 graph (1), the Secretary of Defense is authorized to exer12 cise all of the authorities pertaining to the operation of

13 the Uniformed Services University of the Health Sciences

14 that were granted to the Secretary of Defense, the Board

15 of Regents, or the Dean of the Uniformed Services Univer16 sity of the Health Sciences by chapter 104 of title 10,

17 United States Code, prior to enactment of the repeal of

18 that chapter by subsection (a). Such authorities may be

19 exercised by the Secretary of Defense so as to achieve an

20 orderly phase-out of operations of the Uniformed Services

21 University of the Health Sciences.

22 (3) No new class of students may be admitted to

23 begin studies in the Uniformed Services University of the

24 Health Sciences after September 30, 1994. No students

25 may be awarded degrees by such University after Septem-
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1 ber 30, 1998, except that the Secretary of Defense may

2 grant exceptions on a case-by-case basis for any students

3 who by that date have completed substantially all degree

4 requirements.

5 (c) AUTHORITIES UNAFFECTED.—(1) Commissioned

6 service obligations incurred by students of the Uniformed

7 Services University of the Health Sciences shall be unaf8 fected by enactment of the repeal of chapter 104 of title

9 10, United States Code, by subsection (a).

10 (2) Nothing in this subtitle shall be construed as lim11 iting the exercise by the Secretary of Defense of other au12 thorities under law pertaining to health sciences edu13 cation, training and professional development, graduate

14 medical education, medical and scientific research, and

15 similar activities. To the extent any such activities had

16 been assigned by the Secretary of Defense to the Uni17 formed Services University of the Health Sciences, the

18 Secretary of Defense’s authority to assign such activities

19 to any other component or entity of the Department of

20 Defense shall be unaffected by the phase-out and closure

21 of the Uniformed Services University of the Health

22 Sciences pursuant to this subtitle.

23 (d) CONFORMING AMENDMENTS.—(1) Section 178 of

24 title 10, United States Code, pertaining to the Henry M.
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1 Jackson Foundation for the Advancement of Military

2 Medicine, is amended—

3 (A) in subsection (b), by striking ‘‘Uniformed

4 Services University of the Health Sciences’’ and in5 serting ‘‘Department of Defense’’;

6 (B) in subsection (c)(1)(B), by striking ‘‘the

7 Dean of the Uniformed Services University of the

8 Health Sciences’’ and inserting ‘‘a person designated

9 by the Secretary of Defense’’; and

10 (C) in subsection (g)(1), by striking ‘‘Uni11 formed Services University of the Health Sciences’’

12 and inserting ‘‘Secretary of Defense’’.

13 (2) Section 466 of the Public Health Service Act (42

14 U.S.C. section 286a), pertaining to the Board of Regents

15 of the National Library of Medicine, is amended in sub16 section (a)(1)(B) by striking ‘‘the Dean of the Uniformed

17 Services University of the Health Sciences’’.

18 (3) The table of chapters and the table of sections

19 at the beginning of title 10, United States Code, is amend20 ed by striking references to chapter 104 and sections 2112

21 through 2115.

22 (e) EFFECTIVE DATE.—This section shall be effective

23 upon the date of enactment.
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1 Subtitle C—Streamline and Reor2 ganize the U.S. Army Corps of

3 Engineers

4 SEC. 3201. STREAMLINING AND REORGANIZATION OF

5 CORPS OF ENGINEERS.

6 Notwithstanding any other provision of law, the (a)

7 DEVELOPMENT OF PLAN.—The Secretary of the Army shall

8 develop a plan to reorganize the United States Army Corps

9 of Engineers by reorganizing the headquarters offices, re10 ducing the number of division offices, and restructuring

11 the district functions so as to increase the efficiency of

12 the United States Army Corps of Engineers and reduce

13 staff and costs, with the goal of achieving approximately

14 $50 million in net annual savings by fiscal year 1998.

15 (b) TRANSMITTAL AND APPROVAL OF PLAN.—The Sec16 retary of the Army shall transmit to Congress the plan de17 veloped under subsection (a) for approval. The Secretary

18 shall not implement such plan until it is approved by Con19 gress.
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1 TITLE IV—DEPARTMENT OF

2 ENERGY

3 Subtitle A—Alaska Power Adminis4 tration Sale Authorization Act

5 SEC. 4001. SHORT TITLE.

6 This subtitle may be cited as the ‘‘Alaska Power Ad7 ministration Sale Authorization Act’’.

8 SEC. 4002. SALE OF SNETTISHAM AND EKLUTNA HYDRO9 ELECTRIC PROJECTS.

10 (a) The Secretary of Energy may sell the Snettisham

11 Hydroelectric Project (referred to in this subtitle as

12 ‘‘Snettisham’’) to the State of Alaska Power Authority

13 (now known as the Alaska Industrial Development and

14 Export Authority, and referred to in this subtitle as the

15 ‘‘Authority’’), or its successor, in accordance with the Feb16 ruary 10, 1989, Snettisham Purchase Agreement between

17 the Alaska Power Administration of the United States De18 partment of Energy and the Authority.

19 (b) The Secretary of Energy may sell the Eklutna

20 Hydroelectric Project (referred to in this subtitle as

21 ‘‘Eklutna’’) to the Municipality of Anchorage doing busi22 ness as Municipal Light and Power, the Chugach Electric

23 Association, Inc., and the Matanuska Electric Association,

24 Inc. (referred to in this subtitle as ‘‘Eklutna Purchasers’’)

25 in accordance with the August 2, 1989, Eklutna Purchase
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1 Agreement between the United States Department of En2 ergy and the Eklutna Purchasers.

3 (c) The heads of other affected Federal departments

4 and agencies, including the Secretary of the Interior, shall

5 assist the Secretary of Energy in implementing the sales

6 authorized by this Act.

7 (d) The Secretary of Energy shall deposit sale pro8 ceeds in the Treasury of the United States to the credit

9 of miscellaneous receipts.

10 (e) There are authorized to be appropriated such

11 sums as are necessary to prepare or acquire Eklutna and

12 Snettisham assets for sale and conveyance, such prepara13 tions to provide sufficient title to ensure the beneficial use,

14 enjoyment, and occupancy to the purchasers of the assets

15 to be sold.

16 (f) No later than one year after both of the sales au17 thorized in section 4002 have occurred, as measured by

18 the Transaction Dates stipulated in the Purchase Agree19 ments, the Secretary of Energy shall—

20 (1) complete the business of, and close out, the

21 Alaska Power Administration; and

22 (2) prepare and submit to Congress a report

23 documenting the sales.
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1 SEC. 4003. ASSESSMENT OF ALTERNATIVE OPTIONS.

2 Before taking any action authorized in section 4002,

3 the Secretary shall assess the feasibility of alternative op4 tions for maximizing the return to the Treasury from the

5 sale of the Alaska Power Marketing Administration.

6 Subtitle B—Federal-Private

7 Cogeneration of Electricity

8 SEC. 4101. FEDERAL-PRIVATE COGENERATION OF ELEC9 TRICITY.

10 Section 804(2)(B) of the National Energy Conserva11 tion Policy Act (42 U.S.C. 8287c(2)(B)) is amended by

12 striking ‘‘, excluding any cogeneration process for other

13 than a federally owned building or buildings or other fed14 erally owned facilities.’’.

15 Subtitle C—Power Marketing

16 Administration Debt Buyout

17 PART 1—BONNEVILLE POWER ADMINISTRATION

18 DEBT BUYOUT

19 SEC. 4201. SHORT TITLE.

20 This part may be cited as the ‘‘Bonneville Power Ad21 ministration Repayment Bonds Act’’.

22 SEC. 4202. SALE OF BONDS.

23 Notwithstanding any other law and without fiscal

24 year limitation—

25 (1) in addition to the authority in section 13 of

26 the Federal Columbia River Transmission System
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1 Act (16 U.S.C. 838k), the Administrator may issue

2 and sell bonds, notes, and other evidences of indebt3 edness (referred to in this part as ‘‘Bonds’’) in the

4 manner and amounts the Administrator, considers

5 appropriate in the name of and for and on behalf of

6 the Bonneville Power Administration, to—

7 (A) satisfy the unpaid repayment obliga8 tion associated with the appropriated capital in9 vestment made in the Federal Columbia River

10 Power System before the issuance of the Bonds

11 authorized under this part takes place, but not

12 including Federal irrigation investments as13 signed to be repaid from power revenues; and

14 (B) refund Bonds;

15 (2) the Administrator shall transfer, and the

16 Secretary of the Treasury shall accept for the ac17 count of the General Fund, the net proceeds of the

18 Bonds referred to in paragraph (1)(A), and when

19 the Secretary of the Treasury receives the net pro20 ceeds, the repayment obligation associated with the

21 part of the appropriated capital investment in the

22 Federal Columbia River Power System covered by

23 the Bonds is considered to be satisfied forever;

24 (3) the Secretary of the Treasury, in consulta25 tion with the Administrator, shall establish the
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1 amount of proceeds needed to satisfy the unpaid re2 payment obligation associated with the part of the

3 capital investment referred to in paragraph (1)(A)

4 as the amount necessary to increase the sum of the

5 net proceeds and the discounted present value of the

6 remaining Federal debt service of the Federal Co7 lumbia River Power System by $100 million relative

8 to the discounted present value of the total Federal

9 debt service of the Federal Columbia River Power

10 System as provided by the Administrator based upon

11 the repayment schedule that would have been paid

12 under repayment policy and practices in effect on

13 September 1, 1993;

14 (4) to determine the discounted present values

15 in paragraph (3), the Secretary of the Treasury

16 shall use discount rates based on the secondary mar17 ket’s average yield for the most recently issued 30-

18 year Treasury bonds when the Bonds authorized in

19 paragraph (1) are issued;

20 (5) these Bonds shall be in the forms and de21 nominations, bear the maturities (without respect to

22 the remaining average service life of the capital in23 vestment associated with the repayment obligation

24 satisfied by the Bonds issued under this part), be is25 sued and sold at the times, prices, discounts, and
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1 yields, and be subject to other terms and conditions

2 (including variable rates) as the Administrator con3 siders appropriate;

4 (6) under section 2(f) of the Bonneville Project

5 Act of 1937 (16 U.S.C. 832a(f)) and this part, the

6 Administrator may enter into any contract that the

7 Administrator considers necessary for the purposes

8 of carrying out this part including, but not limited

9 to, contracts for—

10 (A) the payment of the principal, interest,

11 and premium, if any, on Bonds issued under

12 this part;

13 (B) the purchase or redemption of those

14 Bonds;

15 (C) the payment of costs and expenses in16 cidental to this payment, purchase, and re17 demption; or

18 (D) the creation of reserve and other funds

19 to be held by a trustee, which funds the Admin20 istrator may pledge exclusively to pay those

21 costs for which the funds were created and es22 tablish a lien on the funds in favor of the bene23 ficiaries of the funds under any indenture, reso24 lution, or other agreement entered into in con-
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1 nection with the issuance of Bonds under this

2 part;

3 (7) Bonds issued under this part—

4 (A) shall be issuable and payable through

5 the Federal wire system;

6 (B) are negotiable instruments that may

7 be accepted as security for all fiduciary, trust,

8 and public funds, the investment or deposit of

9 which is under the authority or control of any

10 officer or agency of the United States;

11 (C) may be held without limitation by na12 tional banks;

13 (D) qualify as legal investments for banks,

14 savings and loan institutions, and credit unions;

15 and

16 (E) are eligible collateral for Federal ad17 vances and discounts, for deposits of the United

18 States, and for the Treasury tax and loan

19 accounts;

20 (8) Bonds issued under this part are not in21 tended to be and are not secured by the full faith

22 and credit of the United States;

23 (9) Bonds issued under this part are exempt

24 both as to principal and interest from all taxation by
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1 any State or local taxing authority, except estate, in2 heritance, and gift taxes;

3 (10) Bonds issued under this part shall contain

4 a recital that they are issued under this part and

5 this recital is conclusive evidence of the regularity of

6 the issuance and sale of the Bonds and their

7 validity;

8 (11) the Bonds issued under this part, all re9 ceipts of the Secretary of the Treasury under this

10 part, any portion of the fund established under the

11 Federal Columbia River Transmission System Act

12 (16 U.S.C. 838 et seq.) related to these Bonds, all

13 receipts and disbursements of that fund related to

14 these Bonds, and all expenditures by the Adminis15 trator related to these Bonds—

16 (A) are exempt from any general budget

17 limitation imposed by statute on expenditures

18 and net lending (budget outlays) of the United

19 States Government, sequestration order, or dis20 cretionary spending limit;

21 (B) are exempt from any order issued pur22 suant to sections 251, 252, or 253 of the Bal23 anced Budget and Emergency Deficit Control

24 Act of 1985 (2 U.S.C. 900 et seq.); and
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1 (C) are not subject to apportionment under

2 subchapter II of chapter 15 of title 31, United

3 States Code;

4 (12) in all future contracts for the sale of elec5 tric power, transmission, or other services, the Ad6 ministrator shall include provisions specifying that

7 after the repayment obligation is fully and forever

8 satisfied, the Administrator’s rates for electric

9 power, transmission, or other services shall not in10 clude any form of economic rent to be returned to

11 the United States Government, including, without

12 limitation, a falling water charge or any other fee for

13 use of Federal facilities for power generation or

14 transmission, that relates to a project, facility, or

15 separable unit of a project or facility associated with

16 the satisfied repayment obligation, other than a

17 charge necessary to repay the new indebtedness in18 curred under this part. Amounts provided under sec19 tion 1304 of title 31, United States Code, shall be

20 the sole source for payment of a judgment against

21 the Administrator or the United States on a claim

22 for a violation of the contract provision required by

23 this paragraph;

24 (13) the Administrator shall offer to amend the

25 Administrator’s existing contracts for the sale of
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1 electric power, transmission, or other services to in2 clude the provisions described in paragraph (12);

3 and

4 (14) the Administrator shall consult with the

5 Secretary of the Treasury regarding the timing and

6 structure of the bonds issued under this part.

7 SEC. 4203. PAYMENT OF BOND COSTS.

8 Section 11(b)(6) of the Federal Columbia River

9 Transmission System Act (16 U.S.C. 838i(b)(6)), is

10 amended by striking ‘‘or’’ before ‘‘(iv)’’ and by inserting

11 before the semicolon ‘‘, or (v) to pay the cost of financing

12 and debt service, including premiums, if any, on Bond is13 sued by the Bonneville Power Administration’’.

14 SEC. 4204. COMBINED REPAYMENT STUDY.

15 Section 7(a) of the Pacific Northwest Electric Power

16 Planning and Conservation Act (16 U.S.C. 893e(a)), is

17 amended by adding after paragraph (2) the following:

18 ‘‘(3) In establishing power and transmission

19 rates, the Administrator may base them on a single,

20 combined generation and transmission repayment

21 study which demonstrates that all indebtedness is

22 repaid by its due date. The use of such a study is

23 sufficient for the commission to approve the rates as

24 meeting repayment requirements.’’.
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1 SEC. 4205. DEFINITIONS.

2 For the purposes of this part—

3 (1) ‘‘Administrator’’ means the Administrator

4 of the Bonneville Power Administration; and

5 (2) ‘‘appropriated capital investment made in

6 the Federal Columbia River Power System’’ means

7 an investment made by the United States that—

8 (A) is made using Federal appropriations;

9 (B) is for a project or separable feature of

10 a project that is placed in service;

11 (C) is allocated to power and required by

12 law to be repaid from the power revenues by

13 the Administrator;

14 (D) is not allocated or suballocated to irri15 gation; and

16 (E) excludes an investment made using

17 funds borrowed under section 13 of the Federal

18 Columbia River Transmission System Act.

19 PART 2—OTHER POWER MARKETING

20 ADMINISTRATIONS DEBT BUYOUT

21 SEC. 4206. SHORT TITLE.

22 This part may be cited as the ‘‘Power Marketing Ad23 ministrations Financing Act’’.

24 SEC. 4207. DEFINITIONS.

25 For the purposes of this part—
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1 (1) ‘‘Administrator’’ means the Administrator

2 of the Southeastern Power Administration, the Ad3 ministrator of the Southwestern Power Administra4 tion, and the Administrator of the Western Area

5 Power Administration;

6 (2) ‘‘Fund’’ means the Power Marketing Ad7 ministration Sinking Fund established under section

8 4209; and

9 (3) ‘‘Power marketing administration’’ means

10 the Southeastern Power Administration, the South11 western Power Administration, and the Western

12 Area Power Administration.

13 SEC. 4208. REPAYMENT OF EXISTING INDEBTEDNESS.

14 (a) Notwithstanding any other law, within 12 months

15 after the enactment of this Act, each Administrator shall

16 develop, in consultation with the Secretary of the Treas17 ury, and shall implement a plan for paying the United

18 States Treasury the discounted present value of principal

19 and interest payments on power investments scheduled to

20 be paid to the United States Treasury as provided by the

21 Administrator under existing law and repayment practices

22 by that power marketing administration, as well as a one23 time additional payment of $12,500,000 by the Southeast24 ern Power Administration, $12,500,000 by the Southwest25 ern Power Administration, and $50,000,000 by the West-
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1 ern Area Power Administration. Each Administrator shall

2 issue revenue bonds as provided in section 4210 to pay

3 the obligation to the United States Treasury addressed in

4 this section, except that the issuance of these bonds shall

5 occur only if each Administrator determines by means of

6 financial studies that the refinancing will not cause an in7 crease in power rates over existing repayment practices.

8 When the Treasury receives full payment from an Admin9 istrator, it shall consider the repayment obligation of the

10 Administration associated with the payment fully and for11 ever discharged.

12 (b) In all future contracts for the sale of electric

13 power, transmission, or other services, each Administrator

14 shall include provisions agreeing that when the repayment

15 obligation is fully and forever discharged under subsection

16 (a), the Administrator’s rates for electric power, trans17 mission, or other services shall not, other than is necessary

18 to repay the new indebtedness incurred under this Act,

19 include any charge in place of the satisfied obligation or

20 include any other similar form of economic rent by or re21 turned to the United States (including, without limitation,

22 a falling water charge or any other type of user fee for

23 use of Federal facilities for the purpose of power genera24 tion and transmission) on account of any project, facility,
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1 or separable unit of a project or facility associated with

2 the repayment obligation satisfied.

3 (c) Each Administrator shall offer to amend existing

4 contracts for the sale of electric power, transmission, or

5 other services to include the provision described in sub6 section (b).

7 SEC. 4209. POWER MARKETING ADMINISTRATION SINKING

8 FUND.

9 (a) There is established in the Treasury of the United

10 States a Power Marketing Administration Sinking Fund.

11 The Secretary of the Treasury, acting as trustee for the

12 power marketing administrations, shall establish and

13 maintain a separate account in the Fund for each power

14 marketing administration, and monies of one power mar15 keting administration shall not be commingled with mon16 ies of another power marketing administration. Within the

17 separate account for each power marketing administra18 tion, separate projects or systems shall be accounted for

19 separately. An Administrator may deposit into the Fund

20 the monies derived from revenues that the Administrator

21 considers appropriate to ensure that the bonds issued

22 under section 4210 are refunded in a timely manner.

23 (b) Balances in the Fund shall earn interest at a rate

24 determined by the Secretary of the Treasury.
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1 (c) An Administrator may make expenditures from

2 the Administrator’s account in the Fund without further

3 appropriation and without fiscal year limitation to pay in4 debtedness incurred from bonds issued under section

5 4210.

6 (d) Each power marketing administration shall main7 tain its books of account in substantial conformance with

8 the Uniform System of Accounts of the Federal Energy

9 Regulatory Commission.

10 (e) The financial transactions of an Administrator

11 shall be audited by independent financial auditors, and re12 ports of the results of each audit shall be made to the

Congress within 61 13 ⁄2 months following the end of the fiscal

14 year covered by the audit.

15 SEC. 4210. REVENUE BONDS.

16 (a) Each Administrator, in consultation with the Sec17 retary of the Treasury, may issue and sell from time to

18 time in the name of, and for and on behalf of, the respec19 tive power marketing administration bonds, notes, and

20 other evidences of indebtedness (in this section collectively

21 referred to as ‘‘bonds’’) to refinance existing indebtedness

22 as provided in section 4208 and to issue and sell bonds

23 to refund those bonds. The bonds shall be in the forms

24 and denominations, bear maturities (without respect to

25 the remaining average service life of facilities), and be sub-
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1 ject to terms and conditions as prescribed by the Adminis2 trator taking into account terms and conditions prevailing

3 in the market for similar bonds and financing practices

4 of the utility industry. Provisions for early retirement of

5 bonds may be prescribed by each Administrator. The

6 bonds shall bear interest at a rate determined by the

7 Administrator.

8 (b) Each Administrator may enter into any contract

9 that the Administrator considers necessary for the pur10 poses of carrying out this part including, but not limited

11 to, contracts for—

12 (1) the payment of the principal, interest, and

13 premium, if any, on bonds issued under this part;

14 (2) their purchase or redemption;

15 (3) the payment of costs and expenses inciden16 tal to their payment, purchase, and redemption; or

17 (4) the creation of reserve and other funds to

18 be held by the Secretary of the Treasury as trustee,

19 which funds the Administrator may pledge exclu20 sively to pay those costs for which the funds were

21 created and may establish a lien on the funds in

22 favor of the beneficiaries of the funds under any in23 denture, resolution, or other agreement entered into

24 in connection with the issuance of bonds under this

25 part.
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1 (c) Bonds issued under this part—

2 (1) shall be issuable and negotiable through the

3 Federal wire system;

4 (2) are negotiable instruments that may be ac5 cepted as security for all fiduciary, trust, and public

6 funds, the investment or deposit of which is under

7 the authority or control of any officer or agency of

8 the United States;

9 (3) may be held, without limitation, by national

10 banks;

11 (4) qualify as legal instruments for banks, sav12 ings and loan institutions, and credit unions; and

13 (5) are eligible collateral for Federal advances

14 and discounts, for deposits of the United States, and

15 for Treasury tax and loan accounts.

16 (d) Bonds issued under this part are exempt both as

17 to principal and interest from all taxation by any State

18 or local taxing authority, except estate, inheritance, and

19 gift taxes.

20 (e) Bonds issued under this part shall contain a re21 cital that they are issued under this part and such a recital

22 is conclusive evidence of the regularity of the issuance and

23 sale of the bonds and their validity.

24 (f) These bonds are not intended to be and are not

25 secured by the full faith and credit of the United States.
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1 (g) The bonds issued under this part, all receipts of

2 the Secretary of the Treasury under this part, any portion

3 of the Fund established under section 4210 related to

4 these bonds, all receipts and disbursements of the Fund

5 related to these bonds, and all expenditures by an Admin6 istrator related to these bonds—

7 (1) are exempt from any general budget limita8 tion imposed by statute on expenditures and net

9 lending (budget outlays) of the United States Gov10 ernment, sequestration order, or discretionary

11 spending limit;

12 (2) are exempt from any order issued pursuant

13 to sections 251, 252, or 253 of the Balanced Budget

14 and Emergency Deficit Control Act of 1985 (2

15 U.S.C. 900 et seq.); and

16 (3) are not subject to apportionment under sub17 chapter II of chapter 15 of title 31, United States

18 Code.

19 (h) With respect to the Western Area Power Adminis20 tration, except as otherwise provided, this Act is consid21 ered to be a supplement to the Federal reclamation laws.
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1 Subtitle C—Power Marketing

2 Administrations

3 SEC. 4201. POWER MARKETING ADMINISTRATIONS REFI4 NANCING STUDY.

5 The Administrators of the Southeastern, Southwestern

6 and Western Area Power Administrations, in consultation

7 with their respective firm power contractors and other in8 terested parties (including, where applicable, the Bureau of

9 Reclamation), shall study refinancing options, including

10 modifications to existing financial and accounting prac11 tices that may be required to effectively and efficiently issue

12 and manage revenue bonds. Such refinancing options shall,

13 for each of the power systems they administer, satisfy their

14 respective repayment obligations to the United States

15 Treasury without causing any increase in their respective

16 firm power rates beyond the rates that would otherwise re17 sult under rate-setting policies and practices in effect on

18 October 1, 1993. The results of such studies shall be submit19 ted no later than May 1, 1994, to the Speaker of the House

20 of Representatives and the President of the Senate. Such

21 studies shall be made within the limits of existing funding,

22 or, if necessary, with funds contributed by firm power con23 tractors.
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1 SEC. 4202. BONNEVILLE POWER ADMINISTRATION REFI2 NANCING STUDY.

3 The Administrator of the Bonneville Power Adminis4 tration, in consultation with his customers and constitu5 ents, shall study options, including an open market buyout,

6 a Treasury buyout, or any other reasonable alternative that

7 would lead to a permanent resolution of the repayment re8 form initiative directed at Bonneville’s appropriation in9 vestment repayment obligation. Such refinancing options

10 shall satisfy the outstanding appropriated investment re11 payment obligation, without increasing rates beyond the

12 rates that would otherwise result under rate-setting policies

13 and practices in effect on October 1, 1993. The result of

14 this study shall be submitted to the Speaker of the House

15 of Representatives and the President of the Senate no later

16 than March 1, 1994.

17 Subtitle D—Termination of Ad18 vanced Liquid Metal Reactor

19 Program

20 SEC. 4301. TERMINATION OF ADVANCED LIQUID METAL RE21 ACTOR PROGRAM.

22 (a) IN GENERAL.—No amount of funds provided for

23 any fiscal year may be obligated by the Secretary of Energy

24 after the date of the enactment of this Act for the civilian

25 portion of the advanced liquid metal reactor program, in26 cluding—
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1 (1) the program’s promotion of the use of such

2 reactors for the disposal of high-level radioactive

3 waste; and

4 (2) Department of Energy support for regulatory

5 applications to the Nuclear Regulatory Commission

6 for design certification for advanced liquid metal re7 actors or related licensed facilities.

8 (b) PROHIBITION OF OTHER USES.—The amount of

9 funds available on the date of the enactment of this Act for

10 obligation for the program described in subsection (a) shall

11 not be available for obligation by the Secretary of Energy

12 after such date for any other purpose.

13 (c) EXCEPTION.—Subsections (a) and (b) shall not

14 apply to obligations required to be incurred in terminating

15 the program described in subsection (a).

16 TITLE V—DEPARTMENT OF

17 HEALTH AND HUMAN SERVICES

18 Subtitle A—Increased Flexibility in

19 Contracting for Medicare

20 Claims Processing

21 SEC. 5001. INCREASED FLEXIBILITY IN CONTRACTING FOR

22 MEDICARE CLAIMS PROCESSING.

23 (a) CARRIERS TO INCLUDE ENTITIES THAT ARE NOT

24 INSURANCE COMPANIES.—
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1 (1) The matter in section 1842(a) of the Social

2 Security Act preceding paragraph (1) is amended by

3 striking ‘‘with carriers’’ and inserting ‘‘with agencies

4 and organizations (referred to as carriers’’).

5 (2) Section 1842(f) of the Act is repealed.

6 (b) ELIMINATION OF INTERMEDIARY NOMINATION

7 BY PROVIDERS OF SERVICES; SECRETARIAL FLEXIBILITY

8 IN ASSIGNING FUNCTIONS TO INTERMEDIARIES AND

9 CARRIERS.—

10 (1) Section 1816 of that Act is amended by

11 striking everything after the heading but before sub12 section (b) and inserting the following:

13 ‘‘SEC. 1816. (a)(1) The Secretary may enter into

14 agreements with agencies or organizations to perform

15 some or all of the following functions (or parts of those

16 functions):

17 ‘‘(A) determine (subject to the provisions of sec18 tion 1878 and to such review by the Secretary as

19 may be provided for by the agreements) the amount

20 of the payments required pursuant to this part to be

21 made to providers of services,

22 ‘‘(B) make payments described in subparagraph

23 (A),

24 ‘‘(C) provide consultative services to institutions

25 or agencies to enable them to establish and maintain
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1 fiscal records necessary for purposes of this part and

2 otherwise to qualify as hospitals, extended care fa3 cilities, and home health agencies,

4 ‘‘(D) serve as a center for, and communicate to

5 providers, any information or instructions furnished

6 to the agency or organization by the Secretary, and

7 serve as a channel of communication from providers

8 to the Secretary,

9 ‘‘(E) make such audits of the records of provid10 ers as may be necessary to ensure that proper pay11 ments are made under this part, and

12 ‘‘(F) perform such other functions as are nec13 essary to carry out the purposes of this part.

14 ‘‘(2) As used in this title and part B of title XI, the

15 term ‘fiscal intermediary’ means an agency or organiza16 tion with a contract under this section.’’.

17 (2) Subsections (d) and (e) of section 1816 of

18 that Act are repealed.

19 (3) Section 1816(f)(1) of that Act is amended

20 by striking the second sentence.

21 (4) The matter in section 1842(a) of that Act

22 preceding paragraph (1) is amended by inserting ‘‘,

23 or parts of those functions’’ after ‘‘following func24 tions’’.
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1 (5) Section 1842(b)(3)(G) of that Act is

2 amended by inserting ‘‘(unless provided by another

3 carrier)’’ after ‘‘will provide’’.

4 (6) The matter in section 1842(b)(3)(H) of that

5 Act preceding clause (i) is amended by striking ‘‘im6 plement—’’ and inserting ‘‘implement (as appro7 priate)—’’.

8 (7) Section 1842(b)(3)(L) of that Act is amend9 ed by inserting ‘‘(as appropriate)’’ after ‘‘will’’.

10 (8) The first sentence of section 1842(h)(2) of

11 that Act is amended by inserting ‘‘(unless main12 tained by another carrier)’’ after ‘‘shall maintain’’.

13 (c) ELIMINATION OF SPECIAL PROVISIONS FOR TER14 MINATION OF CONTRACTS.—

15 (1) Section 1816(f)(1) of that Act is amended

16 by striking ‘‘, renew, or terminate’’ and ‘‘or reas17 sign’’.

18 (2) Section 1816(g) of that Act is repealed.

19 (3) Section 1842(b) of that Act is amended by

20 striking paragraph (5).

21 (d) REPEAL OF PROHIBITION AGAINST DATA

22 MATCHING.—Sections 1816(c)(1) and 1842(b)(2)(A) of

23 that Act are each amended by striking the last sentence.

24 (e) REPEAL OF COST REIMBURSEMENT REQUIRE25 MENTS.—
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1 (1) The first sentence of section 1816(c)(1) of

2 that Act is amended—

3 (A) by striking the comma after ‘‘appro4 priate’’ and inserting ‘‘and’’; and

5 (B) by striking everything after ‘‘sub6 section (a)’’ up to the period.

7 (2) Section 1816(c)(1) of that Act is further

8 amended by striking the remaining sentences.

9 (3) The first sentence of section 1842(c)(1)(A)

10 of that Act is amended—

11 (A) by striking ‘‘shall provide’’ the first

12 place it occurs and inserting ‘‘may provide’’;

13 and

14 (B) by striking everything after ‘‘this

15 part’’ up to the period.

16 (4) Section 1842(c)(1)(A) of that Act is further

17 amended by striking the remaining sentences.

18 (5) Section 2326(a) of the Deficit Reduction

19 Act of 1984 is repealed.

20 (f) ELIMINATION OF SEPARATE CARRIER FOR RAIL21 ROAD RETIREES.—Section 1842(g) of the Social Security

22 Act is repealed.

23 (g) EFFECTIVE DATE.—The amendments made by

24 the preceding subsections apply to contracts (including re-
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1 newals) entered into after the third calendar month that

2 begins after the date of enactment of this Act.

3 Subtitle B—Workers’ Compensa4 tion Data Exchange Pilot

5 Projects

6 SEC. 5101. WORKERS’ COMPENSATION DATA EXCHANGE

7 PILOT PROJECTS.

8 (a) IN GENERAL.—The Secretary is authorized to

9 conduct pilot projects with not more than three States for

10 the purpose of studying various means of obtaining on a

11 timely and accurate basis such information relating to

12 benefits paid on account of total or partial disability under

13 the States’ workers’ compensation plan as the Secretary

14 may require for the purpose of carrying out section 224

15 of the Social Security Act.

16 (b) REIMBURSEMENT OF STATE COSTS.—A State

17 that participates in a project conducted pursuant to sub18 section (a) may be paid by the Secretary, from amounts

19 available pursuant to subsection (e), the reasonable costs

20 of such participation.

21 (c) EVALUATION.—The Secretary shall evaluate each

22 project conducted pursuant to subsection (a) and shall

23 apply the findings, as appropriate, to agreements nego24 tiated pursuant to subsection (h)(2) of such section 224.
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1 (d) DEADLINE FOR COMMENCEMENT OF

2 PROJECTS.—No pilot project authorized by subsection (a)

3 may be commenced after the expiration of the 5-year pe4 riod beginning on the date of enactment of this section.

5 (e) FUNDING.—Expenditures for pilot projects con6 ducted pursuant to subsection (a) may be made from the

7 Federal Disability Insurance Trust Fund and the Old-Age

8 and Survivors Insurance Trust Fund, as determined ap9 propriate by the Secretary.

10 (f) EFFECTIVE DATE.—This section shall be effective

11 upon enactment.

12 Subtitle C—Federal Clearinghouse

13 on Death Information

14 SEC. 5201. FEDERAL CLEARINGHOUSE ON DEATH INFOR15 MATION.

16 (a) CLEARINGHOUSE DESIGNATION.—The heading

17 for section 205(r) of the Social Security Act is amended

18 to read as follows: ‘‘Clearinghouse on Death Information’’.

19 (b) ACQUISITION OF DISCLOSABLE DEATH INFORMA20 TION FROM STATES.—

21 (1) Section 205(r)(1)(A) of the Social Security

22 Act is amended by striking ‘‘to furnish the Secretary

23 periodically with’’ and inserting ‘‘to furnish periodi24 cally to the Secretary, for use in carrying out sub25 paragraph (B) and paragraphs (3) and (4),’’.
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1 (2)(A) Notwithstanding clause (ii) of section

2 6103(d)(4)(B) of the Internal Revenue Code of 1986

3 (as added by section 13444(a) of the Omnibus

4 Budget Reconciliation Act of 1993 (Public Law

5 103–66)), in order for a contract requiring a State

6 to furnish the Secretary of Health and Human Serv7 ices information concerning individuals with respect

8 to whom death certificates (or equivalent documents

9 maintained by the State or any subdivision thereof)

10 have been officially filed with it to meet the require11 ments of such section 6103(d)(4)(B), such contract

12 shall authorize the Secretary to use such information

13 and to redisclose such information to any Federal

14 agency or any agency of a State or political subdivi15 sion in accordance with section 205(r) of the Social

16 Security Act.

17 (B) The provisions of subparagraph (A) of this

18 paragraph and, notwithstanding subparagraph (C)

19 of section 6103(d)(4) of the Internal Revenue Code

20 of 1986 (as added by section 13444(a) of the Omni21 bus Budget Reconciliation Act of 1993 (Public Law

22 103–66)), the provisions of subparagraphs (A) and

23 (B) of such section 6103(d)(4) shall apply to all

24 States, regardless of whether they were, on July 1,

25 1993, pursuant to a contract, furnishing the Sec-
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1 retary of Health and Human Services information

2 concerning individuals with respect to whom death

3 certificates (or equivalent documents maintained by

4 the State or any subdivision thereof) have been offi5 cially filed with it.

6 (C) Subparagraphs (A) and (B) of this para7 graph shall take effect at the same time as the

8 amendment made by section 13444(a) of the Omni9 bus Budget Reconciliation Act of 1993 takes effect.

10 (D) For the purpose of applying the special rule

11 contained in section 13444(b)(2) of the Omnibus

12 Budget Reconciliation Act of 1993, the reference in

13 such section to section 6103(d)(4)(B) of the Internal

14 Revenue Code of 1986 shall be deemed to include a

15 reference to subparagraph (A) of this paragraph.

16 (c) PAYMENT TO STATES FOR DEATH INFORMA17 TION.—Section 205(r)(2) of the Social Security Act is

18 amended—

19 (1) by striking ‘‘the reasonable costs’’ and in20 serting ‘‘a reasonable amount’’; and

21 (2) by striking ‘‘transcribing and transmitting’’

22 and inserting ‘‘furnishing’’.

23 (d) FEE FOR CLEARINGHOUSE INFORMATION.—

24 (1) Section 205(r)(3) of the Social Security Act

25 is amended by striking out ‘‘if’’ and all that follows,
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1 and inserting ‘‘, provided that such agency agrees to

2 pay the fees set by the Secretary pursuant to para3 graph (8).’’.

4 (2) Section 205(r)(4) of the Social Security Act

5 is amended—

6 (A) by inserting ‘‘and political subdivi7 sions’’ after ‘‘States’’ the first place such term

8 appears;

9 (B) by striking ‘‘the States’’ and inserting

10 ‘‘any State, political subdivision, or combination

11 thereof’’; and

12 (C) by striking ‘‘if’’ and all that follows

13 and inserting ‘‘provided such States and politi14 cal sudivisions agree to pay the fees set by the

15 Secretary pursuant to paragraph (8).’’.

16 (3) Section 205(r) of the Social Security Act is

17 amended by adding at the end a new paragraph as

18 follows: ‘‘(8) The Secretary shall establish fees for

19 the disclosure of information pursuant to this sub20 section. Such fees shall be in amounts sufficient to

21 cover all costs (including indirect costs) associated

22 with the Secretary’s responsibilities under this sub23 section. Fees collected pursuant to this paragraph

24 shall remain available, without fiscal year limitation,
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1 to the Secretary to cover the administrative costs of

2 carrying out this subsection.’’.

3 (e) TECHNICAL ASSISTANCE.—Section 205(r) of the

4 Social Security Act is amended by adding at the end (after

5 the paragraph added by subsection (d)(3)) the following

6 new paragraph:

7 ‘‘(9) The Secretary may provide to any Federal or

8 State agency that provides Federally funded benefits,

9 upon the request of such agency, technical assistance on

10 the effective collection, dissemination, and use of death in11 formation available under this subsection for the purpose

12 of ensuring that such benefits are not erroneously paid

13 to deceased individuals.’’.

14 (f) TECHNICAL AMENDMENT.—Section 205(r) of the

15 Social Security Act is amended by adding at the end (after

16 the paragraph added by subsection (e)) the following new

17 paragraph:

18 ‘‘(10) For purposes of this subsection, the term ‘Fed19 erally funded benefit’ means any payment funded in whole

20 or in part by the Federal Government.’’.

21 (g) EFFECTIVE DATE.—Except as otherwise pro22 vided, the amendments made by this section shall take ef23 fect upon their enactment.
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1 Subtitle D—Continuing Disability

2 Reviews

3 SEC. 5301. CONTINUING DISABILITY REVIEWS.

4 Section 201(g)(1)(A) of the Social Security Act is

5 amended by adding at the end of the paragraph the follow6 ing sentence: ‘‘From funds provided pursuant to this sub7 paragraph for the following fiscal years, not less than the

8 following amounts shall be available only for conducting

9 continuing disability reviews and related workloads: for

10 fiscal year 1994, $46 million; for fiscal year 1995,

11 $47,200,000; for fiscal year 1996, $48,500,000; for fiscal

12 year 1997, $49,800,000; for fiscal year 1998,

13 $51,100,000; and for fiscal year 1999, $52,500,000.’’.

14 TITLE VI—DEPARTMENT OF

15 HOUSING AND URBAN DEVEL16 OPMENT

17 Subtitle A—Multifamily Property

18 Disposition

19 SEC. 6001. MULTIFAMILY PROPERTY DISPOSITION.

20 (a) FINDINGS.—The Congress finds that—

21 (1) the portfolio of multifamily housing project

22 mortgages insured by the FHA is severely troubled

23 and at risk of default, requiring the Secretary to in24 crease loss reserves from $5,500,000,000 in 1991 to
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1 $11,900,000,000 in 1992 to cover estimated future

2 losses;

3 (2) the inventory of multifamily housing

4 projects owned by the Secretary has more than tri5 pled since 1989, and, by the end of 1993, may ex6 ceed 75,000 units;

7 (3) the cost to the Federal Government of own8 ing and maintaining multifamily housing projects es9 calated to approximately $250,000,000 in fiscal year

10 1992;

11 (4) the inventory of multifamily housing

12 projects subject to mortgages held by the Secretary

13 has increased dramatically, to more than 2,400

14 mortgages, and approximately half of these mort15 gages, with over 230,000 units, are delinquent;

16 (5) the inventory of insured and formerly in17 sured multifamily housing projects is rapidly deterio18 rating, endangering tenants and neighborhoods;

19 (6) over 5 million families today have a critical

20 need for housing that is affordable and habitable;

21 and

22 (7) the current statutory framework governing

23 the disposition of multifamily housing projects effec24 tively impedes the Government’s ability to dispose of
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1 properties, protect tenants, and ensure that projects

2 are maintained over time.

3 (b) MANAGEMENT AND DISPOSITION OF MULTIFAM4 ILY HOUSING PROJECTS.—Section 203 of the Housing

5 and Community Development Amendments of 1978 (12

6 U.S.C. 1701z-11) is amended to read as follows:

7 ‘‘SEC. 203. MANAGEMENT AND DISPOSITION OF MULTIFAM8 ILY HOUSING PROJECTS.

9 ‘‘(a) GOALS.—The Secretary of Housing and Urban

10 Development (hereafter in this section referred to as the

11 ‘Secretary’) shall manage or dispose of multifamily hous12 ing projects that are owned by the Secretary or that are

13 subject to a mortgage held by the Secretary in a manner

14 that—

15 ‘‘(1) is consistent with the National Housing

16 Act and this section;

17 ‘‘(2) will protect the financial interests of the

18 Federal Government; and

19 ‘‘(3) will, in the least costly fashion among rea20 sonable available alternatives, further the goals of—

21 ‘‘(A) preserving housing so that it can re22 main available to and affordable by low-income

23 persons;

24 ‘‘(B) preserving and revitalizing residential

25 neighborhoods;
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1 ‘‘(C) maintaining existing housing stock in

2 a decent, safe, and sanitary condition;

3 ‘‘(D) minimizing the involuntary displace4 ment of tenants;

5 ‘‘(E) maintaining housing for the purpose

6 of providing rental housing, cooperative hous7 ing, and homeownership opportunities for low8 income persons; and

9 ‘‘(F) minimizing the need to demolish mul10 tifamily housing projects.

11 The Secretary, in determining the manner in which a

12 project is to be managed or disposed of, may balance com13 peting goals relating to individual projects in a manner

14 that will further the purposes of this section.

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

16 following definitions shall apply:

17 ‘‘(1) MULTIFAMILY HOUSING PROJECT.—The

18 term ‘multifamily housing project’ means any multi19 family rental housing project which is, or prior to

20 acquisition by the Secretary was, assisted or insured

21 under the National Housing Act, or was subject to

22 a loan under section 202 of the Housing Act of

23 1959.

24 ‘‘(2) SUBSIDIZED PROJECT.—The term ‘sub25 sidized project’ means a multifamily housing project
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1 receiving any of the following types of assistance im2 mediately prior to the assignment of the mortgage

3 on such project to, or the acquisition of such mort4 gage by, the Secretary:

5 ‘‘(A) Below market interest rate mortgage

6 insurance under the proviso of section

7 221(d)(5) of the National Housing Act.

8 ‘‘(B) Interest reduction payments made in

9 connection with mortgages insured under sec10 tion 236 of the National Housing Act.

11 ‘‘(C) Direct loans made under section 202

12 of the Housing Act of 1959.

13 ‘‘(D) Assistance in the form of—

14 ‘‘(i) rent supplement payments under

15 section 101 of the Housing and Urban De16 velopment Act of 1965;

17 ‘‘(ii) housing assistance payments

18 made under section 23 of the United

19 States Housing Act of 1937 (as in effect

20 before January 1, 1975); or

21 ‘‘(iii) housing assistance payments

22 made under section 8 of the United States

23 Housing Act of 1937 (excluding payments

24 made for tenant-based assistance under

25 section 8),
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1 if (except for purposes of section 183(c) of the

2 Housing and Community Development Act of

3 1987) such assistance payments are made to

4 more than 50 percent of the units in the

5 project.

6 ‘‘(3) FORMERLY SUBSIDIZED PROJECT.—The

7 term ‘formerly subsidized project’ means a multi8 family housing project owned by the Secretary that

9 was a subsidized project immediately prior to its ac10 quisition by the Secretary.

11 ‘‘(4) UNSUBSIDIZED PROJECT.—The term

12 ‘unsubsidized project’ means a multifamily housing

13 project owned by the Secretary that is not a sub14 sidized project or a formerly subsidized project.

15 ‘‘(c) MANAGEMENT OR DISPOSITION OF PROP16 ERTY.—

17 ‘‘(1) DISPOSITION TO PURCHASERS.—The Sec18 retary is authorized, in carrying out this section, to

19 dispose of a multifamily housing project owned by

20 the Secretary on a negotiated, competitive bid, or

21 other basis, on such terms as the Secretary deems

22 appropriate considering the low-income character of

23 the project and the requirements of subsection (a),

24 to a purchaser determined by the Secretary to be ca25 pable of—
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1 ‘‘(A) satisfying the conditions of the dis2 position;

3 ‘‘(B) implementing a sound financial and

4 physical management program that is designed

5 to enable the project to meet anticipated oper6 ating and repair expenses to ensure that the

7 project will remain in decent, safe, and sanitary

8 condition;

9 ‘‘(C) responding to the needs of the ten10 ants and working cooperatively with tenant or11 ganizations;

12 ‘‘(D) providing adequate organizational

13 staff and financial resources to the project; and

14 ‘‘(E) meeting such other requirements as

15 the Secretary may determine.

16 ‘‘(2) CONTRACTING FOR MANAGEMENT SERV17 ICES.—The Secretary is authorized, in carrying out

18 this section—

19 ‘‘(A) to contract for management services

20 for a multifamily housing project that is owned

21 by the Secretary (or for which the Secretary is

22 mortgagee in possession), on a negotiated, com23 petitive bid, or other basis at a price deter24 mined by the Secretary to be reasonable, with
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1 a manager the Secretary has determined is ca2 pable of—

3 ‘‘(i) implementing a sound financial

4 and physical management program that is

5 designed to enable the project to meet an6 ticipated operating and maintenance ex7 penses to ensure that the project will re8 main in decent, safe, and sanitary condi9 tion;

10 ‘‘(ii) responding to the needs of the

11 tenants and working cooperatively with

12 tenant organizations;

13 ‘‘(iii) providing adequate organiza14 tional, staff, and other resources to imple15 ment a management program determined

16 by the Secretary; and

17 ‘‘(iv) meeting such other requirements

18 as the Secretary may determine; and

19 ‘‘(B) to require the owner of a multifamily

20 housing project that is subject to a mortgage

21 held by the Secretary to contract for manage22 ment services for the project in the manner de23 scribed in subparagraph (A).

24 ‘‘(d) MAINTENANCE OF HOUSING PROJECTS.—
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1 ‘‘(1) HOUSING PROJECTS OWNED BY THE SEC2 RETARY.—In the case of multifamily housing

3 projects that are owned by the Secretary (or for

4 which the Secretary is mortgagee in possession), the

5 Secretary shall—

6 ‘‘(A) to the greatest extent possible, main7 tain all such occupied projects in a decent, safe,

8 and sanitary condition;

9 ‘‘(B) to the greatest extent possible, main10 tain full occupancy in all such projects; and

11 ‘‘(C) maintain all such projects for pur12 poses of providing rental or cooperative hous13 ing.

14 ‘‘(2) HOUSING PROJECTS SUBJECT TO A MORT15 GAGE HELD BY THE SECRETARY.—In the case of

16 any multifamily housing project that is subject to a

17 mortgage held by the Secretary, the Secretary shall

18 require the owner of the project to carry out the re19 quirements of paragraph (1).

20 ‘‘(e) REQUIRED ASSISTANCE.—In carrying out the

21 goal specified in subsection (a)(3)(A), the Secretary shall

22 take not less than one of the following actions:

23 ‘‘(1) CONTRACT WITH OWNER.—Enter into con24 tracts under section 8 of the United States Housing

25 Act of 1937, to the extent budget authority is avail-
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1 able, with owners of multifamily housing projects

2 that are acquired by a purchaser other than the Sec3 retary at foreclosure or after sale by the Secretary.

4 ‘‘(A) SUBSIDIZED OR FORMERLY SUB5 SIDIZED PROJECTS RECEIVING CERTAIN ASSIST6 ANCE.—In the case of a subsidized or formerly

7 subsidized project referred to in subparagraphs

8 (A) through (C) of subsection (b)(2)—

9 ‘‘(i) the contract shall be sufficient to

10 assist at least all units covered by an as11 sistance contract under any of the authori12 ties referred to in subsection (b)(2)(D) be13 fore acquisition, unless the Secretary acts

14 pursuant to the provisions of subparagraph

15 (C);

16 ‘‘(ii) in the case of units requiring

17 project-based rental assistance pursuant to

18 this paragraph that are occupied by fami19 lies who are not eligible for assistance

20 under section 8, a contract under this sub21 paragraph shall also provide that when a

22 vacancy occurs, the owner shall lease the

23 available unit to a family eligible for assist24 ance under section 8; and
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1 ‘‘(iii) the Secretary shall take actions

2 to ensure the availability and affordability,

3 as defined in paragraph (3)(B), for the re4 maining useful life of the project, as de5 fined by the Secretary, of any unit located

6 in any project referred to in subparagraphs

7 (A) through (C) of subsection (b)(2) that

8 does not otherwise receive project-based as9 sistance under this subparagraph. To carry

10 out this clause, the Secretary may require

11 purchasers to establish use or rent restric12 tions maintaining affordability, as defined

13 in paragraph (3)(B).

14 ‘‘(B) SUBSIDIZED OR FORMERLY SUB15 SIDIZED PROJECTS RECEIVING OTHER ASSIST16 ANCE.—In the case of a subsidized or formerly

17 subsidized project referred to in subsection

18 (b)(2)(D)—

19 ‘‘(i) the contract shall be sufficient to

20 assist at least all units in the project that

21 are covered, or were covered immediately

22 before foreclosure on or acquisition of the

23 project by the Secretary, by an assistance

24 contract under any of the authorities re25 ferred to in such subsection, unless the
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1 Secretary acts pursuant to provisions of

2 subparagraph (C); and

3 ‘‘(ii) in the case of units requiring

4 project-based rental assistance pursuant to

5 this paragraph that are occupied by fami6 lies who are not eligible for assistance

7 under section 8, a contract under this

8 paragraph shall also provide that when a

9 vacancy occurs, the owner shall lease the

10 available unit to a family eligible for assist11 ance under section 8.

12 ‘‘(C) EXCEPTIONS TO SUBPARAGRAPHS (A)

13 AND (B).—In lieu of providing project-based as14 sistance under subparagraph (A) or (B), the

15 Secretary may require certain units in

16 unsubsidized projects to contain use restrictions

17 providing that such units will be available to

18 and affordable by very low-income families for

19 the remaining useful life of the project, as de20 fined by the Secretary, if—

21 ‘‘(i) the Secretary matches any reduc22 tion in units otherwise required to be as23 sisted with project-based assistance under

24 subparagraph (A) or (B) with at least an

25 equivalent increase in units made afford-
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1 able to very low-income persons within

2 unsubsidized projects;

3 ‘‘(ii) low-income tenants residing in

4 units otherwise requiring project-based as5 sistance under subparagrph (A) or (B)

6 upon disposition receive section 8 tenant7 based assistance; and

8 ‘‘(iii) the units described in clause (i)

9 are located within the same market area.

10 ‘‘(D) CONTRACT REQUIREMENTS FOR

11 UNSUBSIDIZED PROJECTS.—Notwithstanding

12 actions taken pursuant to subparagraph (C), in

13 unsubsidized projects, the contract shall at least

14 be sufficient to provide—

15 ‘‘(i) project-based rental assistance for

16 all units that are covered or were covered

17 immediately before foreclosure or acquisi18 tion by an assistance contract under—

19 ‘‘(I) section 8(b)(2) of the United

20 States Housing Act of 1937 (as such

21 section existed before October 1,

22 1983) (new construction and substan23 tial rehabilitation); section 8(b) of

24 such Act (property disposition); sec25 tion 8(d)(2) of such Act (project-
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1 based certificates); section 8(e)(2) of

2 such Act (moderate rehabilitation);

3 section 23 of such Act (as in effect

4 before January 1, 1975); or section

5 101 of the Housing and Urban Devel6 opment Act of 1965 (rent supple7 ments); or

8 ‘‘(II) section 8 of the United

9 States Housing Act of 1937, following

10 conversion from section 101 of the

11 Housing and Urban Development Act

12 of 1965; and

13 ‘‘(ii) tenant-based assistance under

14 section 8 of the United States Housing Act

15 of 1937 for tenants currently residing in

16 units that were covered by an assistance

17 contract under the Loan Management Set18 Aside program under section 8(b) of the

19 United States Housing Act of 1937 imme20 diately before foreclosure or acquisition of

21 the project by the Secretary.

22 ‘‘(2) ANNUAL CONTRIBUTION CONTRACTS.—In

23 the case of multifamily housing projects that are ac24 quired by a purchaser other than the Secretary at

25 foreclosure or after sale by the Secretary, enter into
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1 annual contribution contracts with public housing

2 agencies to provide tenant-based assistance under

3 section 8 of the United States Housing Act of 1937

4 to all low-income families who are eligible for such

5 assistance on the date that the project is acquired

6 by the purchaser. The Secretary shall take action

7 under this paragraph only after making a deter8 mination that there is available in the area an ade9 quate supply of habitable affordable housing for low10 income families. Actions taken pursuant to this

11 paragraph may be taken in connection with not

12 more than 10 percent of the aggregate number of

13 units in subsidized or formerly subsidized projects

14 disposed of by the Secretary annually.

15 ‘‘(3) OTHER ASSISTANCE.—

16 ‘‘(A) IN GENERAL.—In accordance with

17 the authority provided under the National

18 Housing Act, reduce the selling price, apply use

19 or rent restrictions on certain units, or provide

20 other financial assistance to the owners of mul21 tifamily housing projects that are acquired by a

22 purchaser other than the Secretary at fore23 closure, or after sale by the Secretary, on terms

24 which will ensure that—
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1 ‘‘(i) at least those units otherwise re2 quired to receive project-based section 8

3 assistance pursuant to subparagraphs (A),

4 (B), or (D) of paragraph (1) are available

5 to and affordable by low-income persons;

6 and

7 ‘‘(ii) for the remaining useful life of

8 the project, as defined by the Secretary,

9 there shall be in force such use or rent re10 strictions as the Secretary may prescribe.

11 ‘‘(B) DEFINITION.—A unit shall be consid12 ered affordable under this paragraph if—

13 ‘‘(i) for very low-income tenants, the

14 rent for such unit does not exceed 30 per15 cent of 50 percent of the area median in16 come, as determined by the Secretary, with

17 adjustments for family size; and

18 ‘‘(ii) for low-income tenants other

19 than very low-income tenants, the rent for

20 such unit does not exceed 30 percent of 80

21 percent of the area median income, as de22 termined by the Secretary, with adjust23 ments for family size.

24 ‘‘(C) VERY LOW-INCOME TENANTS.—The

25 Secretary shall provide assistance under section
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1 8 of the United States Housing Act of 1937 to

2 any very low-income tenant currently residing

3 in a unit otherwise required to receive project4 based assistance under section 8, pursuant to

5 subparagraph (A), (B), or (D) of paragraph

6 (1), if the rents charged such tenants as a re7 sult of actions taken pursuant to this para8 graph exceed the amount payable as rent under

9 section 3(a) of the United States Housing Act

10 of 1937.

11 ‘‘(4) TRANSFER FOR USE UNDER OTHER PRO12 GRAMS OF THE SECRETARY.—

13 ‘‘(A) IN GENERAL.—Enter into an agree14 ment providing for the transfer of a multifamily

15 housing project—

16 ‘‘(i) to a public housing agency for use

17 of the project as public housing; or

18 ‘‘(ii) to an owner or another appro19 priate entity for use of the project under

20 section 202 of the Housing Act of 1959 or

21 under section 811 of the Cranston-Gon22 zalez National Affordable Housing Act.

23 ‘‘(B) REQUIREMENTS FOR AGREEMENT.—

24 The agreement described in subparagraph (A)

25 shall—
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1 ‘‘(i) contain such terms, conditions,

2 and limitations as the Secretary deter3 mines appropriate, including requirements

4 to assure use of the project under the pub5 lic housing, section 202, and section 811

6 programs; and

7 ‘‘(ii) ensure that no current tenant

8 will be displaced as a result of actions

9 taken under this paragraph.

10 ‘‘(f) OTHER ASSISTANCE.—In addition to the actions

11 authorized by subsection (e), the Secretary may take any

12 of the following actions:

13 ‘‘(1) SHORT-TERM LOANS.—Provide short-term

14 loans to facilitate the sale of multifamily housing

15 projects to nonprofit organizations or to public agen16 cies if—

17 ‘‘(A) authority for such loans is provided

18 in advance in an appropriations Act;

19 ‘‘(B) such loans are for a term of not more

20 than 5 years;

21 ‘‘(C) the Secretary is presented with satis22 factory documentation, evidencing a commit23 ment of permanent financing to replace such

24 short-term loan, from a lender who meets

25 standards set forth by the Secretary; and
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1 ‘‘(D) the terms of such loans are consist2 ent with prevailing practices in the marketplace

3 or the provision of such loans results in no cost

4 to the Government, as defined in section 502 of

5 the Congressional Budget Act.

6 ‘‘(2) TENANT-BASED ASSISTANCE.—In connec7 tion with projects referred to in subsection (e), make

8 available tenant-based assistance under section 8 of

9 the United States Housing Act of 1937 to very low10 income families (as defined in section 3(b)(2) of the

11 United States Housing Act of 1937) that do not

12 otherwise qualify for project-based assistance.

13 ‘‘(3) ALTERNATIVE USES.—

14 ‘‘(A) IN GENERAL.—Notwithstanding any

15 other provision of law, and subject to notice to

16 and comment from existing tenants, allow not

17 more than—

18 ‘‘(i) 5 percent of the total number of

19 units in multifamily housing projects that

20 are disposed of by the Secretary during

21 any 1-year period to be made available for

22 uses other than rental or cooperative uses,

23 including low-income homeownership op24 portunities, or in any particular project,

25 community space, office space for tenant
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1 or housing-related service providers or se2 curity programs, or small business uses, if

3 such uses benefit the tenants of the

4 project; and

5 ‘‘(ii) 5 percent of the total number of

6 units in multifamily housing projects that

7 are disposed of by the Secretary during

8 any 1-year period to be used in any man9 ner, if the Secretary and the unit of gen10 eral local government or area-wide govern11 ing body determine that such use will fur12 ther fair housing, community development,

13 or neighborhood revitalization goals.

14 ‘‘(B) DISPLACEMENT PROTECTION.—The

15 Secretary shall make available tenant-based

16 rental assistance under section 8 of the United

17 States Housing Act of 1937 to any tenant dis18 placed as a result of actions taken by the Sec19 retary pursuant to subparagraph (A), and the

20 Secretary shall take such actions as the Sec21 retary determines necessary to ensure the suc22 cessful use of any tenant-based assistance.

23 ‘‘(g) AUTHORIZATION OF USE OR RENT RESTRIC24 TIONS IN UNSUBSIDIZED PROJECTS.—In carrying out the

25 goals specified in subsection (a), the Secretary may re-
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1 quire certain units in unsubsidized projects to contain use

2 or rent restrictions providing that such units will be avail3 able to and affordable by very low-income persons for the

4 remaining useful life of the property, as defined by the

5 Secretary.

6 ‘‘(h) CONTRACT REQUIREMENTS.—

7 ‘‘(1) CONTRACT TERM.—

8 ‘‘(A) IN GENERAL.—Contracts for project9 based rental assistance under section 8 of the

10 United States Housing Act of 1937 provided

11 pursuant to this section shall be for a term of

12 not more than 15 years; and

13 ‘‘(B) CONTRACT TERM OF LESS THAN 15

14 YEARS.—Notwithstanding subparagraph (A), to

15 the extent that units receive project-based as16 sistance for a contract term of less than 15

17 years, the Secretary shall require that rents

18 charged to tenants for such units not exceed

19 the amount payable for rent under section 3(a)

20 of the United States Housing Act of 1937 for

21 a period of at least 15 years.

22 ‘‘(2) CONTRACT RENT.—

23 ‘‘(A) IN GENERAL.—The Secretary shall

24 set contract rents for section 8 project-based

25 rental contracts issued under this section at lev-
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1 els that, in conjunction with other resources

2 available to the purchaser, provide for the nec3 essary costs of rehabilitation of such project

4 and do not exceed the percentage of the existing

5 housing fair market rents for the area (as de6 termined by the Secretary under section 8(c) of

7 the United States Housing Act of 1937) as the

8 Secretary may prescribe.

9 ‘‘(B) UP-FRONT GRANTS AND LOANS.—If

10 such an approach is determined to be more

11 cost-effective, the Secretary may utilize the

12 budget authority provided for project-based sec13 tion 8 contracts issued under this section to—

14 ‘‘(i) provide project-based section 8

15 rental assistance; and

16 ‘‘(ii)(I) provide up-front grants for the

17 necessary cost of rehabilitation; or

18 ‘‘(II) pay for any cost to the Govern19 ment, as defined in section 502 of the Con20 gressional Budget Act, for loans made pur21 suant to subsection (f)(1).

22 ‘‘(i) DISPOSITION PLAN.—

23 ‘‘(1) IN GENERAL.—Prior to the sale of a mul24 tifamily housing project that is owned by the Sec25 retary, the Secretary shall develop a disposition plan
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1 for the project that specifies the minimum terms

2 and conditions of the Secretary for disposition of the

3 project, the initial sales price that is acceptable to

4 the Secretary, and the assistance that the Secretary

5 plans to make available to a prospective purchaser

6 in accordance with this section. The initial sales

7 price shall reflect the intended use of the property

8 after sale.

9 ‘‘(2) COMMUNITY AND TENANT INPUT INTO

10 DISPOSITION PLANS AND SALES.—

11 ‘‘(A) IN GENERAL.—In carrying out this

12 section, the Secretary shall develop procedures

13 to obtain appropriate and timely input into dis14 position plans from officials of the unit of gen15 eral local government affected, the community

16 in which the project is situated, and the tenants

17 of the project.

18 ‘‘(B) TENANT ORGANIZATIONS.—The Secretary

19 shall develop procedures to facilitate, where feasible

20 and appropriate, the sale of multifamily housing

21 projects to existing tenant organizations with dem22 onstrated capacity or to public or nonprofit entities

23 which represent or are affiliated with existing tenant

24 organizations.

25 ‘‘(C) TECHNICAL ASSISTANCE.—
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1 ‘‘(i) USE OF FUNDS.—To carry out

2 the procedures developed under subpara3 graphs (A) and (B), the Secretary is au4 thorized to provide technical assistance, di5 rectly or indirectly, and to use amounts ap6 propriated for technical assistance under

7 the Emergency Low Income Housing Pres8 ervation Act of 1987, the Low-Income

9 Housing Preservation and Resident Home10 ownership Act of 1990, subtitle B of title

11 IV of the Cranston-Gonzalez National Af12 fordable Housing Act, or under this section

13 for the provision of technical assistance

14 under this section.

15 ‘‘(ii) SOURCE OF FUNDS.—Recipients

16 of technical assistance funding under the

17 Emergency Low Income Housing Preserva18 tion Act of 1987, the Low-Income Housing

19 Preservation and Resident Homeownership

20 Act of 1990, subtitle B of title IV of the

21 Cranston-Gonzalez National Affordable

22 Housing Act, or under this section shall be

23 permitted to provide technical assistance to

24 the extent of such funding under any of
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1 such programs or under this section, not2 withstanding the source of funding.

3 ‘‘(j) RIGHT OF FIRST REFUSAL.—

4 ‘‘(1) PROCEDURE.—

5 ‘‘(A) NOTIFICATION BY SECRETARY OF

6 THE ACQUISITION OF TITLE.—Not later than

7 30 days after acquiring title to a project, the

8 Secretary shall notify the unit of general local

9 government and the State agency or agencies

10 designated by the Governor of the acquisition of

11 such title.

12 ‘‘(B) EXPRESSION OF INTEREST.—Not

13 later than 45 days after receiving notification

14 from the Secretary under subparagraph (A),

15 the unit of general local government or des16 ignated State agency may submit to the Sec17 retary a preliminary expression of interest in

18 the project. The Secretary may take such ac19 tions as may be necessary to require the unit of

20 general local government or designated State

21 agency to substantiate such interest.

22 ‘‘(C) TIMELY EXPRESSION OF INTER23 EST.—If the unit of general local government or

24 designated State agency has expressed interest

25 in the project before the expiration of the 45-
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1 day period referred to in subparagraph (B), and

2 has substantiated such interest if requested, the

3 Secretary, upon approval of a disposition plan

4 for a project, shall notify the unit of general

5 local government and designated State agency

6 of the terms and conditions of the disposition

7 plan and give the unit of general local govern8 ment or designated State agency not more than

9 90 days after the date of such notification to

10 make an offer to purchase the project.

11 ‘‘(D) NO TIMELY EXPRESSION OF INTER12 EST.—If the unit of general local government or

13 designated State agency does not express inter14 est before the expiration of the 45-day period

15 referred to in subparagraph (B), or does not

16 substantiate an expressed interest if requested,

17 the Secretary, upon approval of a disposition

18 plan, may offer the project for sale to any inter19 ested person or entity.

20 ‘‘(2) ACCEPTANCE OF OFFERS.—Where the

21 Secretary has given the unit of general local govern22 ment or designated State agency 90 days to make

23 an offer to purchase the project, the Secretary shall

24 accept an offer that complies with the terms and

25 conditions of the disposition plan. The Secretary
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1 may accept an offer that does not comply with the

2 terms and conditions of the disposition plan if the

3 Secretary determines that the offer will further the

4 goals specified in subsection (a) by actions that in5 clude extension of the duration of low-income afford6 ability restrictions or otherwise restructuring the

7 transaction in a manner that enhances the long-term

8 affordability for low-income persons. The Secretary

9 shall, in particular, have discretion to reduce the ini10 tial sales price in exchange for the extension of low11 income affordability restrictions beyond the period of

12 assistance contemplated by the attachment of assist13 ance pursuant to subsection (e). If the Secretary and

14 the unit of general local government or designated

15 State agency cannot reach agreement within 90

16 days, the Secretary may offer the project for sale to

17 the general public.

18 ‘‘(3) PURCHASE BY UNIT OF GENERAL LOCAL

19 GOVERNMENT OR DESIGNATED STATE AGENCY.—

20 Notwithstanding any other provision of law, a unit

21 of general local government (including a public hous22 ing agency) or designated State agency may pur23 chase a subsidized or formerly subsidized project in

24 accordance with this subsection.
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1 ‘‘(4) APPLICABILITY.—This subsection shall

2 apply to projects that are acquired on or after the

3 effective date of this subsection. With respect to

4 projects acquired before such effective date, the Sec5 retary may apply—

6 ‘‘(A) the requirements of paragraphs (2)

7 and (3) of section 203(e) as such paragraphs

8 existed immediately before the effective date of

9 this subsection; or

10 ‘‘(B) the requirements of paragraphs (1)

11 and (2) of this subsection, if the Secretary gives

12 the unit of general local government or des13 ignated State agency—

14 ‘‘(i) 45 days to express interest in the

15 project; and

16 ‘‘(ii) if the unit of general local gov17 ernment or designated State agency ex18 presses interest in the project before the

19 expiration of the 45-day period, and sub20 stantiates such interest if requested, 90

21 days from the date of notification of the

22 terms and conditions of the disposition

23 plan to make an offer to purchase the

24 project.
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1 ‘‘(k) DISPLACEMENT OF TENANTS AND RELOCATION

2 ASSISTANCE.—

3 ‘‘(1) IN GENERAL.—Whenever tenants will be

4 displaced as a result of the disposition of, or repairs

5 to, a multifamily housing project that is owned by

6 the Secretary (or for which the Secretary is mortga7 gee in possession), the Secretary shall identify ten8 ants who will be displaced, and shall notify all such

9 tenants of their pending displacement and of any re10 location assistance which may be available. In the

11 case of a multifamily housing project that is not

12 owned by the Secretary (and for which the Secretary

13 is not mortgagee in possession), the Secretary shall

14 require the owner of the project to carry out the re15 quirements of this paragraph.

16 ‘‘(2) RIGHTS OF DISPLACED TENANTS.—The

17 Secretary shall assure for any such tenant (who con18 tinues to meet applicable qualification standards)

19 the right—

20 ‘‘(A) to return, whenever possible, to a re21 paired unit;

22 ‘‘(B) to occupy a unit in another multifam23 ily housing project owned by the Secretary;

24 ‘‘(C) to obtain housing assistance under

25 the United States Housing Act of 1937; or
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1 ‘‘(D) to receive any other available reloca2 tion assistance as the Secretary determines to

3 be appropriate.

4 ‘‘(l) MORTGAGE AND PROJECT SALES.—

5 ‘‘(1) IN GENERAL.—The Secretary may not ap6 prove the sale of any loan or mortgage held by the

7 Secretary (including any loan or mortgage owned by

8 the Government National Mortgage Association) on

9 any subsidized project or formerly subsidized

10 project, unless such sale is made as part of a trans11 action that will ensure that such project will con12 tinue to operate at least until the maturity date of

13 such loan or mortgage, in a manner that will provide

14 rental housing on terms at least as advantageous to

15 existing and future tenants as the terms required by

16 the program under which the loan or mortgage was

17 made or insured prior to the assignment of the loan

18 or mortgage on such project to the Secretary.

19 ‘‘(2) SALE OF CERTAIN PROJECTS.—The Sec20 retary may not approve the sale of any subsidized

21 project—

22 ‘‘(A) that is subject to a mortgage held by

23 the Secretary; or

24 ‘‘(B) if the sale transaction involves the

25 provision of any additional subsidy funds by the
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1 Secretary or a recasting of the mortgage, unless

2 such sale is made as part of a transaction that

3 will ensure that such project will continue to

4 operate at least until the maturity date of the

5 loan or mortgage, in a manner that will provide

6 rental housing on terms at least as advan7 tageous to existing and future tenants as the

8 terms required by the program under which the

9 loan or mortgage was made or insured prior to

10 the proposed sale of the project.

11 ‘‘(3) MORTGAGE SALES TO STATE AND LOCAL

12 GOVERNMENTS.—Notwithstanding any provision of

13 law that may require competitive sales or bidding,

14 the Secretary may carry out negotiated sales of sub15 sidized or formerly subsidized mortgages held by the

16 Secretary, without the competitive selection of pur17 chasers or intermediaries, to units of general local

18 government or State agencies, or groups of investors

19 that include at least one such unit of general local

20 government or State agency, if the negotiations are

21 conducted with such agencies, except that—

22 ‘‘(A) the terms of any such sale shall in23 clude the agreement of the purchasing agency

24 or unit of local government or State agency to

25 act as mortgagee or owner of a beneficial inter-
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1 est in such mortgages, in a manner consistent

2 with maintaining the projects that are subject

3 to such mortgages for occupancy by the general

4 tenant group intended to be served by the appli5 cable mortgage insurance program, including,

6 to the extent the Secretary determines appro7 priate, authorizing such unit of local govern8 ment or State agency to enforce the provisions

9 of any regulatory agreement or other program

10 requirements applicable to the related projects;

11 and

12 ‘‘(B) the sales prices for such mortgages

13 shall be, in the determination of the Secretary,

14 the best prices that may be obtained for such

15 mortgages from a unit of general local govern16 ment or State agency, consistent with the ex17 pectation and intention that the projects fi18 nanced will be retained for use under the appli19 cable mortgage insurance program for the life

20 of the initial mortgage insurance contract.

21 ‘‘(4) SALE OF MORTGAGES COVERING

22 UNSUBSIDIZED PROJECTS.—Notwithstanding any

23 other provision of law, the Secretary may sell mort24 gages held on unsubsidized projects on such terms

25 and conditions as the Secretary may prescribe.
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1 ‘‘(m) REPORT TO CONGRESS.—Not later than June

2 1 of each year, the Secretary shall submit to the Commit3 tee on Banking, Housing, and Urban Affairs of the Senate

4 and the Committee on Banking, Finance and Urban Af5 fairs of the House of Representatives, a report describing

6 the status of multifamily housing projects owned by or

7 subject to mortgages held by the Secretary, which report

8 shall include—

9 ‘‘(1) the name, address, and size of each

10 project;

11 ‘‘(2) the nature and date of assignment;

12 ‘‘(3) the status of the mortgage;

13 ‘‘(4) the physical condition of the project;

14 ‘‘(5) an occupancy profile of the project, includ15 ing the income, family size, and race of current resi16 dents as well as the rents paid by such residents;

17 ‘‘(6) the proportion of units in a project that

18 are vacant;

19 ‘‘(7) the date on which the Secretary became

20 mortgagee in possession;

21 ‘‘(8) the date and conditions of any foreclosure

22 sale;

23 ‘‘(9) the date of acquisition by the Secretary;

24 ‘‘(10) the date and conditions of any property

25 disposition sale;
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1 ‘‘(11) a description of actions undertaken pur2 suant to this section, including—

3 ‘‘(A) a comparison of results between ac4 tions taken after enactment of the Housing and

5 Community Development Act of 1993 and ac6 tions taken in years prior to such enactment;

7 ‘‘(B) a description of any impediments to

8 the disposition or management of multifamily

9 housing projects, together with a recommenda10 tion of proposed legislative or regulatory

11 changes designed to ameliorate such impedi12 ments;

13 ‘‘(C) a description of actions taken to re14 structure or commence foreclosure on delin15 quent multifamily mortgages held by the De16 partment; and

17 ‘‘(D) a description of actions taken to

18 monitor and prevent the default of multifamily

19 housing mortgages held by the Federal Housing

20 Administration;

21 ‘‘(12) a description of any of the functions per22 formed in connection with this section that are con23 tracted out to public or private entities or to States,

24 including—
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1 ‘‘(A) the costs associated with such delega2 tion;

3 ‘‘(B) the implications of contracting out or

4 delegating such functions for current Depart5 ment field or regional personnel, including an6 ticipated personnel or work load reductions;

7 ‘‘(C) necessary oversight required by De8 partment personnel, including anticipated per9 sonnel hours devoted to such oversight;

10 ‘‘(D) a description of any authority grant11 ed to such public or private entities or States

12 in conjunction with the functions that have

13 been delegated or contracted out or that are not

14 otherwise available for use by Department per15 sonnel; and

16 ‘‘(E) the extent to which such public or

17 private entities or States include tenants of

18 multifamily housing projects in the disposition

19 planning for such projects;

20 ‘‘(13) a description of the activities carried out

21 under subsection (j) during the preceding year; and

22 ‘‘(14) a description and assessment of the rules,

23 guidelines, and practices governing the Department’s

24 management of multifamily housing projects that

25 are owned by the Secretary (or for which the Sec-
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1 retary is mortgagee in possession) as well as the

2 steps that the Secretary has taken or plans to take

3 to improve the management performance of the De4 partment.’’.

5 (c) EFFECTIVE DATE.—The Secretary shall, by no6 tice published in the Federal Register, which shall take

7 effect upon publication, establish such requirements as

8 may be necessary to implement the amendments made by

9 this section. The notice shall invite public comments, and

10 the Secretary shall issue final regulations based on the ini11 tial notice, taking into account any public comments re12 ceived.

13 Subtitle B—Merger of the

14 Certificate and Voucher Programs

15 SEC. 6101. MERGER OF CERTIFICATE AND VOUCHER PRO16 GRAMS.

17 The United States Housing Act of 1937 is amended

18 as provided in subsections (a) through (d) of this section.

19 (a) MERGER OF CERTIFICATE AND VOUCHER PRO20 GRAMS.—Section 8(o) is amended to read as follows:

21 ‘‘(o) CERTIFICATE PROGRAM.—(1) The Secretary

22 may provide assistance for tenant-based assistance using

23 a payment standard in accordance with this subsection.

24 The payment standard shall be used to determine the

25 monthly assistance which may be paid for any family, as
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1 provided in paragraph (2) of this subsection, and shall not

2 exceed the fair market rental established under subsection

3 (c). However, the payment standard for a designated part

4 of the market area may exceed the fair market rental by

5 not more than 20 percent where the Secretary determines

6 that higher market rents in a designated part of the mar7 ket area justify a higher payment standard. The Secretary

8 may require an agency to submit proposed payment stand9 ards to the Secretary for approval.

10 ‘‘(2)(A) For a family receiving tenant-based assist11 ance, where the rent (including the amount allowed for

12 tenant-paid utilities) does not exceed the payment stand13 ard, the monthly assistance payment shall be the amount

14 by which the rent exceeds the highest of the following

15 amounts, rounded to the nearest dollar:

16 ‘‘(i) 30 percent of the family’s monthly adjusted

17 income;

18 ‘‘(ii) 10 percent of the family’s monthly income;

19 or

20 ‘‘(iii) if the family is receiving payments for

21 welfare assistance from a public agency and a part

22 of such payments, adjusted in accordance with the

23 family’s actual housing costs, is specifically des24 ignated by such agency to meet the family’s housing
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1 costs, the portion of such payments which is so des2 ignated.

3 ‘‘(B) For a family receiving tenant-based assistance,

4 where the rent (including the amount allowed for tenant5 paid utilities) exceeds the payment standard, the monthly

6 assistance payment shall be the amount by which the ap7 plicable payment standard exceeds the highest of the fol8 lowing amounts, rounded to the nearest dollar:

9 ‘‘(i) 30 percent of the family’s monthly adjusted

10 income;

11 ‘‘(ii) 10 percent of the family’s monthly income;

12 or

13 ‘‘(iii) if the family is receiving payments for

14 welfare assistance from a public agency and a part

15 of such payments, adjusted in accordance with the

16 family’s actual housing costs, is specifically des17 ignated by such agency to meet the family’s housing

18 costs, the portion of such payments which is so des19 ignated.

20 ‘‘(C) For a family receiving project-based assistance,

21 the rent the family is required to pay shall be determined

22 in accordance with section 3(a)(1) and the amount of the

23 housing assistance payment shall be determined in accord24 ance with subsection (c)(3).
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1 ‘‘(3) At the time a family initially receives tenant2 based assistance with respect to any unit, the total amount

3 a family may pay towards rent may not exceed 45 percent

4 of the family’s monthly adjusted income.

5 ‘‘(4) At the time a family initially receives assistance

6 under the certificate program, a family shall qualify as—

7 ‘‘(A) a very low-income family;

8 ‘‘(B) a family previously assisted under this

9 Act; or

10 ‘‘(C) a low-income family that meets eligibility

11 criteria specified by the Secretary.

12 ‘‘(5) Reviews of family income shall be made at least

13 annually.

14 ‘‘(6)(A) In selecting families to be assisted, pref15 erence shall be given to families which, at the time they

16 are seeking assistance, (i) occupy substandard housing

17 (including families that are homeless or living in a shelter

18 for homeless families), (ii) are involuntarily displaced, or

19 (iii) are paying more than 50 percent of family income

20 for rent; except that any family otherwise eligible for as21 sistance under this section may not be denied preference

22 for tenant-based assistance (or delayed or otherwise ad23 versely affected in the provision of such assistance) solely

24 because the family resides in public housing.
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1 ‘‘(B) A public housing agency may provide for cir2 cumstances in which families who do not qualify for any

3 preference established in subparagraph (A) are provided

4 assistance under this subsection before families who do

5 qualify for such preference. However, not more than 10

6 percent in the case of tenant-based assistance and not

7 more than 30 percent in the case of project-based assist8 ance (or such higher percentage, in either case, deter9 mined by the Secretary to be necessary) of the families

10 who initially receive assistance in any 1-year period may

11 be families who do not qualify for such preference. The

12 public housing agency shall, in implementing the preced13 ing sentence, establish a system of preferences in writing

14 and after public hearing to respond to local housing needs

15 and priorities which may include—

16 ‘‘(i) assisting very low-income families who ei17 ther reside in transitional housing assisted under

18 title IV of the Stewart B. McKinney Homeless As19 sistance Act, or participate in a program designed to

20 provide public assistance recipients with greater ac21 cess to employment and educational opportunities;

22 ‘‘(ii) assisting families identified by local public

23 agencies involved in providing for the welfare of chil24 dren as having a lack of adequate housing that is a

25 primary factor in the imminent placement of a child
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1 in foster care, or in preventing the discharge of a

2 child from foster care and reunification with his or

3 her family;

4 ‘‘(iii) assisting youth, upon discharge from fos5 ter care, in cases in which return to the family or

6 extended family or adoption is not available;

7 ‘‘(iv) assisting veterans who will use the assist8 ance for a dwelling unit designed for the handi9 capped, and upon discharge or eligibility for dis10 charge from a hospital or nursing home, have a

11 physical disability which, because of the configura12 tion of their homes, prevents them from access to or

13 use of their homes; and

14 ‘‘(v) achieving other objectives of national hous15 ing policy as affirmed by Congress.

16 ‘‘(C) Any individual or family evicted from housing

17 assisted under the Act by reason of drug-related criminal

18 activity (as defined in subsection (f)(5)) shall not be eligi19 ble for a preference under any provision of this subpara20 graph for 3 years unless the evicted tenant successfully

21 completes a rehabilitation program approved by the Sec22 retary (which shall include waiver for any member of a

23 family of an individual prohibited from tenancy under this

24 clause who the agency determines clearly did not partici-
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1 pate in and had no knowledge of such criminal activity

2 or when circumstances leading to eviction no longer exist).

3 ‘‘(7) The Secretary shall require, for any unit, that—

4 ‘‘(A) the public housing agency inspect the unit

5 before any assistance payment may be made to de6 termine that the unit meets housing quality stand7 ards for decent, safe, and sanitary housing estab8 lished by the Secretary for the purpose of this sec9 tion; and

10 ‘‘(B) the public housing agency make annual or

11 more frequent inspections during the contract term.

12 No assistance payment may be made for a dwelling unit

13 which fails to meet such quality standards, unless any

14 such failure is promptly corrected by the owner and the

15 correction is verified by the public housing agency.

16 ‘‘(8) If a family vacates a dwelling unit, no assistance

17 payment may be made for the unit after the month during

18 which the unit was vacated.

19 ‘‘(9) A public housing agency may adjust its payment

20 standard under this subsection where necessary to assure

21 continued affordability for families receiving tenant-based

22 assistance.

23 ‘‘(10) The Secretary may set aside up to 5 percent

24 of the budget authority available under this subsection as

25 an adjustment pool. The Secretary shall use amounts in
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1 the adjustment pool for adjustments pursuant to para2 graph (9) to ensure continued affordability where the Sec3 retary determines additional assistance for this purpose is

4 necessary, based on documentation submitted by a public

5 housing agency.

6 ‘‘(11)(A) The rent for units assisted under this sub7 section shall be reasonable in comparison with rents

8 charged for comparable units in the private unassisted

9 market.

10 ‘‘(B) A public housing agency shall, at the request

11 of a family receiving tenant-based assistance under this

12 subsection, assist such family in negotiating a reasonable

13 rent with an owner. A public housing agency shall review

14 the rent for a unit under consideration by the family (and

15 all rent increases for units under lease by the family) to

16 determine whether the rent (or rent increase) requested

17 by an owner is reasonable. If a public housing agency de18 termines that the rent (or rent increase) for a unit is not

19 reasonable, the agency shall disapprove a lease for such

20 unit.

21 ‘‘(C) If units assisted under this subsection are ex22 empt from local rent control while they are so assisted,

23 the rent for such units shall be reasonable in comparison

24 with other units in the market area that are exempt from

25 local rent control.
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1 ‘‘(12)(A) A public housing agency may make assist2 ance payments on behalf of a family which utilizes a man3 ufactured home as its principal place of residence. Such

4 payments may be made for the rental of the real property

5 on which there is located a manufactured home which is

6 owned by any such family.

7 ‘‘(B)(i) For assistance pursuant to this paragraph,

8 the rent for the space on which a manufactured home is

9 located and with respect to which assistance payments are

10 to be made includes maintenance and management

11 charges and tenant-paid utilities.

12 ‘‘(ii) The public housing agency shall establish a pay13 ment standard for the purpose of determining the monthly

14 assistance which may be paid for any family under this

15 paragraph. The payment standard may not exceed an

16 amount approved or established by the Secretary.

17 ‘‘(iii) The monthly assistance payment for assistance

18 under this paragraph shall be determined in accordance

19 with paragraph (2).

20 ‘‘(13)(A) Where the Secretary enters into an annual

21 contributions contract with a public housing agency pursu22 ant to which the agency will enter into a contract for as23 sistance payments with respect to an existing structure

24 under this subsection, the contract for assistance pay25 ments may not be attached to the structure unless the
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1 owner agrees to rehabilitate or newly construct the struc2 ture other than with assistance under this Act and other3 wise complies with the requirements of this section. The

4 public housing agency may approve such attachment for

5 up to 15 percent of the funding available for tenant-based

6 assistance administered by the agency under this section.

7 ‘‘(B) Notwithstanding any other provision of this sec8 tion, a public housing agency and an applicable State

9 agency may, on a priority basis, attach to structures not

10 more than an additional 15 percent of the assistance only

11 with respect to projects assisted under a State program

12 that permits the owner of the projects to prepay a State13 assisted or State-subsidized mortgage on the structure.

14 However, the attachment of assistance under this sub15 paragraph shall be for the purpose of—

16 ‘‘(i) providing incentives to owners to preserve

17 such projects for occupancy by low- and moderate18 income families (for the period that assistance under

19 this sentence is available), and

20 ‘‘(ii) to assist low-income families to afford any

21 increases in rent that may be required to induce the

22 owner to maintain occupancy in the project by low23 and moderate-income families.

24 ‘‘(C) Any assistance provided to low-income families

25 under subparagraph (B) shall not be considered for pur-
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1 poses of the limitation under paragraph (6) regarding the

2 percentage of families that may receive assistance under

3 this section who do not qualify for preferences under that

4 paragraph.

5 ‘‘(D) In the case of a contract for assistance pay6 ments that is attached to a structure under this para7 graph, a public housing agency shall enter into a contract

8 with an owner, contingent upon the future availability of

9 appropriations for the purpose of renewing expiring con10 tracts for assistance payments as provided in appropria11 tions Acts, to extend the term of the underlying contract

12 for assistance payments for such period or periods as the

13 Secretary determines to be appropriate to achieve long14 term affordability of the housing. The contract shall obli15 gate the owner to have such extensions of the underlying

16 contract for assistance payments accepted by the owner

17 and the owner’s successors in interest. To the extent as18 sistance is used as provided in the second sentence of sub19 paragraph (B), the contract for assistance may, at the op20 tion of the public housing agency, have an initial term not

21 exceeding 15 years.

22 ‘‘(E) The Secretary shall annually survey public

23 housing agencies to determine which public housing agen24 cies have, in providing assistance in such year, reached

25 the 15 percent limitations contained in subparagraphs (A)
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1 and (B), and shall report to the Congress on the results

2 of the survey.

3 ‘‘(F) For project-based assistance under this para4 graph, assistance contracts shall establish rents, and pro5 vide for rent adjustments, in accordance with subsection

6 (c).

7 ‘‘(14) A family may lease a unit, other than a public

8 housing unit, from the public housing agency with assist9 ance under this subsection. The Secretary may establish

10 appropriate program requirements for units owned by the

11 public housing agency, including requirements for HUD

12 approval of initial rents, rent adjustments, and adminis13 trative fees, taking into account that the agency admin14 istering the assistance is also the owner of the assisted

15 unit.

16 ‘‘(15) Subsection (c) shall not apply to tenant-based

17 assistance under this subsection, except that subsections

18 (c)(9) and (c)(10) shall apply.’’.

19 (b) PORTABILITY.—Section 8(r) is amended—

20 (1) in each of paragraphs (1) and (3), by strik21 ing ‘‘subsection (b) or’’;

22 (2) in paragraph (3), by inserting at the end

23 the following new sentence: ‘‘The Secretary may re24 serve amounts available for assistance under sub25 section (o) to compensate public housing agencies
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1 which issue certificates to families that move into

2 the jurisdiction of the agency under portability pro3 cedures.’’; and

4 (3) by adding the following new paragraph at

5 the end:

6 ‘‘(5) A family may not receive a certificate from

7 an agency and move to another jurisdiction under

8 the tenant-based assistance program, if the family

9 has moved out of its assisted unit in violation of its

10 lease.’’.

11 (c) HOMEOWNERSHIP OPTION.—Section 8(y) is

12 amended—

13 (1) in paragraph (1)(A), by inserting before the

14 semicolon ‘‘or owns or is acquiring shares in a coop15 erative’’;

16 (2) in paragraph (1)(B)(i), by inserting before

17 the semicolon ‘‘and demonstrates to the public hous18 ing agency that it has sufficient resources for home19 ownership’’; and

20 (3) by amending paragraph (2)(A) to read as

21 follows:

22 ‘‘(A) DETERMINATION OF AMOUNT OF AS23 SISTANCE.—

24 ‘‘(i) Where the monthly homeowner25 ship expenses, as determined in accordance
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1 with requirements established by the Sec2 retary, do not exceed the payment stand3 ard, the monthly assistance payment shall

4 be the amount by which the homeowner5 ship expenses exceed the highest of the fol6 lowing amounts, rounded to the nearest

7 dollar:

8 ‘‘(I) 30 percent of the family’s

9 monthly adjusted income;

10 ‘‘(II) 10 percent of the family’s

11 monthly income; or

12 ‘‘(III) if the family is receiving

13 payments for welfare assistance from

14 a public agency and a part of such

15 payments, adjusted in accordance with

16 the family’s actual housing costs, is

17 specifically designated by such agency

18 to meet the family’s housing costs, the

19 portion of such payments which is so

20 designated.

21 ‘‘(ii) Where the monthly homeowner22 ship expenses, as determined in accordance

23 with requirements established by the Sec24 retary, exceed the payment standard, the

25 monthly assistance payment shall be the
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1 amount by which the applicable payment

2 standard exceeds the highest of the follow3 ing amounts, rounded to the nearest dollar:

4 ‘‘(I) 30 percent of the family’s

5 monthly adjusted income;

6 ‘‘(II) 10 percent of the family’s

7 monthly income; or

8 ‘‘(III) if the family is receiving

9 payments for welfare assistance from

10 a public agency and a part of such

11 payments, adjusted in accordance with

12 the family’s actual housing costs, is

13 specifically designated by such agency

14 to meet the family’s housing costs, the

15 portion of such payments which is so

16 designated.’’.

17 (d) TECHNICAL AND CONFORMING AMENDMENTS TO

18 THE 1937 ACT; DELETION OF OBSOLETE PROVISIONS.—

19 (1) The second and third sentences of section

20 8(a) are hereby repealed.

21 (2) Section 8(b) is amended by—

22 (A) striking ‘‘RENTAL CERTIFICATES AND

23 OTHER EXISTING HOUSING PROGRAMS.—’’ and

24 inserting ‘‘CERTIFICATES AND OTHER EXIST25 ING HOUSING PROGRAMS.—(1)’’; and
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1 (B) striking the second sentence.

2 (3) Section 8(c)(3) is amended by striking the

3 subparagraph designation ‘‘(A)’’ and striking all of

4 subparagraph (B).

5 (4) The first sentence of section 8(c)(4) is

6 amended by striking ‘‘or by a family that qualifies

7 to receive’’ and all that follows through ‘‘1990’’.

8 (5) Sections 8(c) (5) and (7) are hereby re9 pealed.

10 (6) Section 8(c)(8) is amended by inserting

11 after ‘‘section’’ the following: ‘‘(other than a con12 tract under section 8(o)(13))’’.

13 (7) Section 8(d)(1)(A) is amended—

14 (A) by inserting after the subparagraph

15 designation ‘‘(A)’’ the following: ‘‘except for as16 sistance under subsection (o),’’;

17 (B) in clause (i) by striking ‘‘(I)’’;

18 (C) in clause (i), by striking ‘‘and (II) 90

19 percent of such families in the case of assist20 ance not attached to a structure’’; and

21 (D) in clause (i), by striking ‘‘except’’ and

22 all that follows through the semicolon at the

23 end.
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1 (8) Section 8(d)(2) is amended by striking the

2 third sentence of subparagraph (A) and all that fol3 lows through the end of paragraph (2).

4 (9) Section 8(f) is amended by—

5 (A) in paragraph (6), striking ‘‘(d)(2)’’

6 and inserting ‘‘(o)(13)’’; and

7 (B) in paragraph (7), striking ‘‘(b) or’’

8 and inserting before the period the following:

9 ‘‘and that provides for the eligible family to se10 lect suitable housing and to move to other suit11 able housing’’.

12 (10) Section 8(j) is hereby repealed.

13 (11) Section 8(n) is hereby repealed.

14 (12) The first sentence of section 8(q)(1) and

15 sections 8(q)(2)(A)(i) and 8(q)(2)(B) are each

16 amended by striking ‘‘subsections (b) and (o)’’ and

17 inserting ‘‘this section’’.

18 (13) Section 18(b)(3) is amended—

19 (A) in subparagraph (A)(v), by striking

20 ‘‘(excluding vouchers under section 8(o))’’ each

21 place it appears;

22 (B) in subparagraph (B), by striking

23 ‘‘8(d)(2)(A)’’ and inserting ‘‘8(o)(13)’’;

24 (C) in subparagraph (B)(ii), by striking

25 ‘‘(excluding vouchers under section 8(o))’’; and
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1 (D) in subparagraph (C)(i), by striking

2 ‘‘and vouchers’’.

3 (14) Section 21(b)(3) is amended—

4 (A) in the first sentence, by striking ‘‘cer5 tificate under section 8(b)(1) or a housing

6 voucher under section 8(o)’’ and inserting ‘‘ten7 ant-based assistance under section 8’’; and

8 (B) by striking the second sentence.

9 (15) Section 23(b)(3)(A) is amended by strik10 ing ‘‘Certificate and voucher assistance under sec11 tion 8 (b) and (o)’’ and inserting ‘‘Tenant-based as12 sistance under section 8’’.

13 (e) OTHER TECHNICAL AND CONFORMING AMEND14 MENTS.—

15 (1) Section 931 of the Cranston-Gonzalez Na16 tional Affordable Housing Act is amended by strik17 ing ‘‘assistance under the certificate and voucher

18 programs under sections 8 (b) and (o)’’ and insert19 ing ‘‘tenant-based assistance under section 8’’.

20 (2) Section 861(b)(1)(D) of the Cranston-Gon21 zalez National Affordable Housing Act is amended

22 by striking ‘‘certificates or vouchers’’ and inserting

23 ‘‘assistance’’.
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1 (3) Section 183(c)(2) of the Housing and Com2 munity Development Act of 1987 is amended by

3 striking ‘‘section 8(o)’’ and inserting ‘‘section 8’’.

4 (4) Section 223(a) of the Housing and Commu5 nity Development Act of 1987 is amended by strik6 ing ‘‘sections 8(b) and 8(o)’’ and inserting ‘‘section

7 8’’.

8 (5) The second sentence of section 533(a) of

9 the Housing Act of 1949 is amended by striking

10 ‘‘assistance payments as provided by section 8(o)’’

11 and inserting ‘‘tenant-based assistance as provided

12 under section 8’’.

13 (f) IMPLEMENTATION.—The amendments made by

14 this section shall take effect upon the date specified in

15 a regulation or notice published by the Secretary in the

16 Federal Register. The Secretary may provide for the con17 version of assistance under the certificate and voucher

18 programs, as they existed before the effective date of the

19 amendments made by this section, to the certificate pro20 gram established under this section. However, the Sec21 retary may continue to apply the provisions of the United

22 States Housing Act of 1937 and other statutes amended

23 by this section, as they existed immediately before such

24 effective date, to assistance obligated by the Secretary be25 fore such effective date for the certificate or voucher pro-
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1 gram, where necessary for simplification of program ad2 ministration, avoidance of hardship, or other good cause.

3 Subtitle C—Streamline HUD

4 SEC. 6201. HUD STREAMLINING.

5 The Secretary of Housing and Urban Development

6 shall carry out the recommendation of the Report of the

7 National Performance Review, issued on September 7,

8 1993, that the Department streamline its headquarters,

9 regional, and field office structure and consolidate and re10 duce its size, without regard to the requirements of section

11 7(p) of the Department of Housing and Urban Develop12 ment Act.

13 Subtitle D—Refinance Section 235

14 Mortgages

15 SEC. 6301. SECTION 235 MORTGAGE REFINANCING.

16 Section 235(r) of the National Housing Act is

17 amended—

18 (1) in paragraph (2)(C), by inserting after ‘‘re19 financed’’ the following: ‘‘, plus the costs incurred in

20 connection with the refinancing as described in para21 graph (4)(B) to the extent that the amount for those

22 costs is not otherwise included in the interest rate

23 as permitted by subparagraph (E) or paid by the

24 Secretary as authorized by paragraph (4)(B)’’;

25 (2) in paragraph (4)—
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1 (A) by inserting after ‘‘otherwise)’’ the fol2 lowing: ‘‘and the mortgagee with respect to the

3 amount described in paragraph (A)’’; and

4 (B) in subparagraph (A), by inserting after

5 ‘‘mortgagor’’ the following: ‘‘and the mortga6 gee’’; and

7 (3) by revising paragraph (5) to read as follows:

8 ‘‘(5) The Secretary shall use amounts of budget

9 authority recaptured from assistance payments con10 tracts relating to mortgages that are being refi11 nanced for assistance payments contracts with re12 spect to mortgages insured under this subsection.

13 The Secretary may also make such recaptured

14 amounts available for incentives under paragraph

15 (4)(A) and the costs incurred in connection with the

16 refinancing under paragraph (4)(B). For purposes

17 of subsection (c)(3)(A), the amount of recaptured

18 budget authority that the Secretary commits for as19 sistance payments contracts relating to mortgages

20 insured under this subsection and for amounts paid

21 under paragraph (4) shall not be construed as ‘un22 used.’ ’’.
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1 Subtitle E—Section 8 Rents for

2 New Construction and Rehabili3 tation Projects

4 SEC. 6401. SECTION 8 RENTS FOR NEW CONSTRUCTION AND

5 REHABILITATION PROJECTS.

6 Notwithstanding any other provision of law, the max7 imum monthly contract rents for new construction and

8 substantial rehabilitation projects under section 8 of the

9 United States Housing Act of 1937 shall not be adjusted

10 as provided under section 8(c)(2)(A) for 1 year after the

11 date of enactment of this Act.

12 TITLE VI—DEPARTMENT OF

13 HOUSING AND URBAN DEVEL14 OPMENT

15 SEC. 6001. MULTIFAMILY PROPERTY DISPOSITION.

16 (a) FINDINGS.—The Congress finds that—

17 (1) the portfolio of multifamily housing project

18 mortgages insured by the FHA is severely troubled

19 and at risk of default, requiring the Secretary to in20 crease loss reserves from $5,500,000,000 in 1991 to

21 $11,900,000,000 in 1992 to cover estimated future

22 losses;

23 (2) the inventory of multifamily housing projects

24 owned by the Secretary has more than tripled since
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1 1989, and, by the end of 1993, may exceed 75,000

2 units;

3 (3) the cost to the Federal Government of owning

4 and maintaining multifamily housing projects esca5 lated to approximately $250,000,000 in fiscal year

6 1992;

7 (4) the inventory of multifamily housing projects

8 subject to mortgages held by the Secretary has in9 creased dramatically, to more than 2,400 mortgages,

10 and approximately half of these mortgages, with over

11 230,000 units, are delinquent;

12 (5) the inventory of insured and formerly in13 sured multifamily housing projects is rapidly deterio14 rating, endangering tenants and neighborhoods;

15 (6) over 5 million families today have a critical

16 need for housing that is affordable and habitable; and

17 (7) the current statutory framework governing

18 the disposition of multifamily housing projects effec19 tively impedes the Government’s ability to dispose of

20 properties, protect tenants, and ensure that projects

21 are maintained over time.

22 (b) MANAGEMENT AND DISPOSITION OF MULTIFAMILY

23 HOUSING PROJECTS.—Section 203 of the Housing and

24 Community Development Amendments of 1978 (12 U.S.C.

25 1701z–11) is amended to read as follows:
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1 ‘‘SEC. 203. MANAGEMENT AND DISPOSITION OF MULTIFAM2 ILY HOUSING PROJECTS.

3 ‘‘(a) GOALS.—The Secretary of Housing and Urban

4 Development shall manage or dispose of multifamily hous5 ing projects that are owned by the Secretary or that are

6 subject to a mortgage held by the Secretary in a manner

7 that—

8 ‘‘(1) is consistent with the National Housing Act

9 and this section;

10 ‘‘(2) will protect the financial interests of the

11 Federal Government; and

12 ‘‘(3) will, in the least costly fashion among rea13 sonable available alternatives, further the goals of—

14 ‘‘(A) preserving housing so that it can re15 main available to and affordable by low-income

16 persons;

17 ‘‘(B) preserving and revitalizing residential

18 neighborhoods;

19 ‘‘(C) maintaining existing housing stock in

20 a decent, safe, and sanitary condition;

21 ‘‘(D) minimizing the involuntary displace22 ment of tenants;

23 ‘‘(E) maintaining housing for the purpose

24 of providing rental housing, cooperative housing,

25 and homeownership opportunities for low-income

26 persons; and
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1 ‘‘(F) minimizing the need to demolish mul2 tifamily housing projects.

3 The Secretary, in determining the manner in which a

4 project is to be managed or disposed of, may balance com5 peting goals relating to individual projects in a manner

6 that will further the purposes of this section.

7 ‘‘(b) DEFINITIONS.—For purposes of this section:

8 ‘‘(1) MULTIFAMILY HOUSING PROJECT.—The

9 term ‘multifamily housing project’ means any multi10 family rental housing project which is, or prior to ac11 quisition by the Secretary was, assisted or insured

12 under the National Housing Act, or was subject to a

13 loan under section 202 of the Housing Act of 1959.

14 ‘‘(2) SUBSIDIZED PROJECT.—The term ‘sub15 sidized project’ means a multifamily housing project

16 that, immediately prior to the assignment of the

17 mortgage on such project to, or the acquisition of such

18 mortgage by, the Secretary, was receiving any of the

19 following types of assistance:

20 ‘‘(A) Below market interest rate mortgage

21 insurance under the proviso of section 221(d)(5)

22 of the National Housing Act.

23 ‘‘(B) Interest reduction payments made in

24 connection with mortgages insured under section

25 236 of the National Housing Act.
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1 ‘‘(C) Direct loans made under section 202 of

2 the Housing Act of 1959.

3 ‘‘(D) Assistance in the form of—

4 ‘‘(i) rent supplement payments under

5 section 101 of the Housing and Urban De6 velopment Act of 1965,

7 ‘‘(ii) additional assistance payments

8 under section 236(f)(2) of the National

9 Housing Act,

10 ‘‘(iii) housing assistance payments

11 made under section 23 of the United States

12 Housing Act of 1937 (as in effect before

13 January 1, 1975), or

14 ‘‘(iv) housing assistance payments

15 made under section 8 of the United States

16 Housing Act of 1937 (excluding payments

17 made for tenant-based assistance under sec18 tion 8),

19 if (except for purposes of section 183(c) of the

20 Housing and Community Development Act of

21 1987) such assistance payments are made to

22 more than 50 percent of the units in the project.

23 ‘‘(3) FORMERLY SUBSIDIZED PROJECT.—The

24 term ‘formerly subsidized project’ means a multifam25 ily housing project owned by the Secretary that was
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1 a subsidized project immediately prior to its acquisi2 tion by the Secretary.

3 ‘‘(4) UNSUBSIDIZED PROJECT.—The term

4 ‘unsubsidized project’ means a multifamily housing

5 project owned by the Secretary that is not a sub6 sidized project or a formerly subsidized project.

7 ‘‘(5) AFFORDABLE.—A unit shall be considered

8 affordable if—

9 ‘‘(A) for units occupied—

10 ‘‘(i) by very low-income families, the

11 rent does not exceed 30 percent of 50 per12 cent of the area median income, as deter13 mined by the Secretary, with adjustments

14 for smaller and larger families, except that

15 the Secretary may establish the rent based

16 on an amount higher or lower than 50 per17 cent of the median for the area on the basis

18 of the Secretary’s findings that such vari19 ation is necessary because of prevailing lev20 els of construction costs or fair market

21 rents, or unusually high or low family in22 comes; and

23 ‘‘(ii) by low-income families other than

24 very low-income families, the rent does not

25 exceed 30 percent of 80 percent of the area
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1 median income, as determined by the Sec2 retary, except that the Secretary may estab3 lish the rent based on an amount higher or

4 lower than 80 percent of the median for the

5 area on the basis of the Secretary’s findings

6 that such variation is necessary because of

7 prevailing levels of construction costs or fair

8 market rents, or unusually high or low fam9 ily incomes; or

10 ‘‘(B) the unit, or the family residing in the

11 unit, is receiving assistance under section 8 of

12 the United States Housing Act of 1937.

13 ‘‘(6) LOW-INCOME FAMILIES AND VERY LOW-IN14 COME FAMILIES.—The terms ‘low-income families’

15 and ‘very low-income families’ shall have the mean16 ings given the terms in section 3(b) of the United

17 States Housing Act of 1937.

18 ‘‘(7) PREEXISTING TENANT.—The term ‘preexist19 ing tenant’ means, with respect to a multifamily

20 housing project, a family that—

21 ‘‘(A) resides in a unit in the project; and

22 ‘‘(B) immediately before foreclosure or ac23 quisition of the project by the Secretary, was re24 siding in a unit in the project.
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1 ‘‘(8) MARKET AREA.—The term ‘market area’

2 means a market area determined by the Secretary for

3 purposes of establishing fair market rentals under sec4 tion 8(c) of the United States Housing Act of 1937.

5 ‘‘(9) SECRETARY.—The term ‘Secretary’ means

6 the Secretary of Housing and Urban Development.

7 ‘‘(c) MANAGEMENT OR DISPOSITION OF PROPERTY.—

8 ‘‘(1) DISPOSITION TO PURCHASERS.—The Sec9 retary may, in carrying out this section, dispose of a

10 multifamily housing project owned by the Secretary

11 on a negotiated, competitive bid, or other basis, on

12 such terms as the Secretary deems appropriate con13 sidering the low-income character of the project and

14 the market area in which the project is located and

15 the requirements of subsection (a), to a purchaser de16 termined by the Secretary to be capable of—

17 ‘‘(A) satisfying the conditions of the disposi18 tion;

19 ‘‘(B) implementing a sound financial and

20 physical management program that is designed

21 to enable the project to meet anticipated operat22 ing and repair expenses to ensure that the

23 project will remain in decent, safe, and sanitary

24 condition;
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1 ‘‘(C) responding to the needs of the tenants

2 and working cooperatively with tenant organiza3 tions;

4 ‘‘(D) providing adequate organizational,

5 staff, and financial resources to the project; and

6 ‘‘(E) meeting such other requirements as the

7 Secretary may determine.

8 ‘‘(2) CONTRACTING FOR MANAGEMENT SERV9 ICES.—The Secretary may, in carrying out this sec10 tion—

11 ‘‘(A) contract for management services for a

12 multifamily housing project that is owned by the

13 Secretary (or for which the Secretary is mortga14 gee in possession), on a negotiated, competitive

15 bid, or other basis at a price determined by the

16 Secretary to be reasonable, with a manager the

17 Secretary has determined is capable of—

18 ‘‘(i) implementing a sound financial

19 and physical management program that is

20 designed to enable the project to meet an21 ticipated operating and maintenance ex22 penses to ensure that the project will remain

23 in decent, safe, and sanitary condition;
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1 ‘‘(ii) responding to the needs of the ten2 ants and working cooperatively with tenant

3 organizations;

4 ‘‘(iii) providing adequate organiza5 tional, staff, and other resources to imple6 ment a management program determined

7 by the Secretary; and

8 ‘‘(iv) meeting such other requirements

9 as the Secretary may determine;

10 ‘‘(B) require the owner of a multifamily

11 housing project that is subject to a mortgage held

12 by the Secretary to contract for management

13 services for the project in the manner described

14 in subparagraph (A); and

15 ‘‘(C) contract for management of such prop16 erties with nonprofit organizations and public

17 agencies, including public housing authorities.

18 ‘‘(d) MAINTENANCE OF HOUSING PROJECTS.—

19 ‘‘(1) HOUSING PROJECTS OWNED BY THE SEC20 RETARY.—In the case of multifamily housing projects

21 that are owned by the Secretary (or for which the Sec22 retary is mortgagee in possession), the Secretary

23 shall—
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1 ‘‘(A) to the greatest extent possible, main2 tain all such occupied projects in a decent, safe,

3 and sanitary condition;

4 ‘‘(B) to the greatest extent possible, main5 tain full occupancy in all such projects; and

6 ‘‘(C) maintain all such projects for purposes

7 of providing rental or cooperative housing.

8 ‘‘(2) HOUSING PROJECTS SUBJECT TO A MORT9 GAGE HELD BY SECRETARY.—In the case of any mul10 tifamily housing project that is subject to a mortgage

11 held by the Secretary, the Secretary shall require the

12 owner of the project to carry out the requirements of

13 paragraph (1).

14 ‘‘(3) HOUSING STANDARDS.—In disposing of any

15 multifamily housing project under this section, the

16 Secretary shall enter into an agreement with the pur17 chaser under which the purchaser agrees that the

18 project will be rehabilitated so that it is in compli19 ance with, and will be maintained in compliance

20 with, any standards under applicable State or local

21 laws, rules, ordinances, or regulations relating to the

22 physical condition of the housing and any such stand23 ards established by the Secretary.

24 ‘‘(e) REQUIRED ASSISTANCE.—In disposing of any

25 multifamily housing property under this section, the Sec-
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1 retary shall take, separately or in combination, one or more

2 of the following actions:

3 ‘‘(1) CONTRACT WITH OWNER FOR PROJECT4 BASED ASSISTANCE.—In the case of multifamily hous5 ing projects that are acquired by a purchaser other

6 than the Secretary at foreclosure or after sale by the

7 Secretary, the Secretary may enter into contracts

8 under section 8 of the United States Housing Act of

9 1937 (to the extent budget authority is available) with

10 owners of the projects, subject to the following require11 ments:

12 ‘‘(A) SUBSIDIZED OR FORMERLY SUB13 SIDIZED PROJECTS RECEIVING MORTGAGE-RE14 LATED ASSISTANCE.—In the case of a subsidized

15 or formerly subsidized project referred to in sub16 paragraphs (A) through (C) of subsection

17 (b)(2)—

18 ‘‘(i) the contract shall be sufficient to

19 assist at least all units covered by an assist20 ance contract under any of the authorities

21 referred to in subsection (b)(2)(D) before ac22 quisition, unless the Secretary acts pursu23 ant to the provisions of subparagraph (C);

24 ‘‘(ii) the contract shall provide that,

25 when a vacancy occurs in any unit in the
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1 project requiring project-based rental assist2 ance pursuant to this subparagraph that is

3 occupied by a family who is not eligible for

4 assistance under such section 8, the owner

5 shall lease the available unit to a family eli6 gible for assistance under such section 8;

7 and

8 ‘‘(iii) the Secretary shall take actions

9 to ensure that any unit in any such project

10 that does not otherwise receive project-based

11 assistance under this subparagraph remains

12 available and affordable for the remaining

13 useful life of the project, as defined by the

14 Secretary; to carry out this clause, the Sec15 retary may require purchasers to establish

16 use or rent restrictions maintaining the af17 fordability of such units.

18 ‘‘(B) SUBSIDIZED OR FORMERLY SUB19 SIDIZED PROJECTS RECEIVING RENTAL ASSIST20 ANCE.—In the case of a subsidized or formerly

21 subsidized project referred to in subsection

22 (b)(2)(D) that is not subject to subparagraph

23 (A)—

24 ‘‘(i) the contract shall be sufficient to

25 assist at least all units in the project that
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1 are covered, or were covered immediately be2 fore foreclosure on or acquisition of the

3 project by the Secretary, by an assistance

4 contract under any of the provisions re5 ferred to in such subsection, unless the Sec6 retary acts pursuant to provisions of sub7 paragraph (C); and

8 ‘‘(ii) the contract shall provide that,

9 when a vacancy occurs in any unit in the

10 project requiring project-based rental assist11 ance pursuant to this subparagraph that is

12 occupied by a family who is not eligible for

13 assistance under such section 8, the owner

14 shall lease the available unit to a family eli15 gible for assistance under such section 8.

16 ‘‘(C) EXCEPTIONS.—In lieu of providing

17 project-based assistance under subparagraph

18 (A)(i) or (B)(i) for a project, the Secretary may

19 require certain units in unsubsidized projects to

20 contain use restrictions providing that such

21 units will be available to and affordable by very

22 low-income families for the remaining useful life

23 of the project, as defined by the Secretary, if—

24 ‘‘(i) the Secretary provides an increase

25 in project-based assistance for very low-in-
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1 come persons for units within unsubsidized

2 projects located within the same market

3 area as the project otherwise required to be

4 assisted with project-based assistance under

5 subparagraph (A) or (B) that is at least

6 equivalent to the units otherwise required to

7 be so assisted; and

8 ‘‘(ii) upon disposition of the project,

9 low-income families residing in units other10 wise required to be assisted with project11 based assistance under subparagraph (A) or

12 (B) receive tenant-based assistance under

13 such section 8.

14 ‘‘(D) UNSUBSIDIZED PROJECTS.—Notwith15 standing actions taken pursuant to subpara16 graph (C), in the case of unsubsidized projects,

17 the contract shall be sufficient to provide—

18 ‘‘(i) project-based rental assistance for

19 all units that are covered, or were covered

20 immediately before foreclosure or acquisi21 tion, by an assistance contract under—

22 ‘‘(I) the new construction and

23 substantial rehabilitation program

24 under section 8(b)(2) of the United
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1 States Housing Act of 1937 (as in ef2 fect before October 1, 1983);

3 ‘‘(II) the property disposition pro4 gram under section 8(b) of such Act;

5 ‘‘(III) the project-based certificate

6 program under section 8 of such Act;

7 ‘‘(IV) the moderate rehabilitation

8 program under section 8(e)(2) of such

9 Act;

10 ‘‘(V) section 23 of such Act (as in

11 effect before January 1, 1975);

12 ‘‘(VI) the rent supplement pro13 gram under section 101 of the Housing

14 and Urban Development Act of 1965;

15 or

16 ‘‘(VII) section 8 of the United

17 States Housing Act of 1937, following

18 conversion from assistance under sec19 tion 101 of the Housing and Urban

20 Development Act of 1965; and

21 ‘‘(ii) tenant-based assistance under sec22 tion 8 of the United States Housing Act of

23 1937 for families that are preexisting ten24 ants of the project in units that, imme25 diately before foreclosure or acquisition of
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1 the project by the Secretary, were covered by

2 an assistance contract under the loan man3 agement set-aside program under section

4 8(b) of the United States Housing Act of

5 1937 at such time.

6 ‘‘(2) ANNUAL CONTRIBUTION CONTRACTS FOR

7 TENANT-BASED ASSISTANCE.—In the case of multi8 family housing projects that are acquired by a pur9 chaser other than the Secretary at foreclosure or after

10 sale by the Secretary, the Secretary may enter into

11 annual contribution contracts with public housing

12 agencies to provide tenant-based assistance under sec13 tion 8 of the United States Housing Act of 1937 on

14 behalf of all low-income families who, on the date that

15 the project is acquired by the purchaser, reside in the

16 project and are eligible for such assistance, subject to

17 the following requirements:

18 ‘‘(A) REQUIREMENT OF SUFFICIENT AF19 FORDABLE HOUSING IN AREA.—The Secretary

20 may not take action under this paragraph unless

21 the Secretary determines that there is available

22 in the area an adequate supply of habitable, af23 fordable housing for very low-income families

24 and other low-income families.
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1 ‘‘(B) LIMITATION FOR SUBSIDIZED AND

2 FORMERLY SUBSIDIZED PROJECTS.—The Sec3 retary may not take actions under this para4 graph in connection with units in subsidized or

5 formerly subsidized projects for more than 10

6 percent of the aggregate number of units in such

7 projects disposed of by the Secretary annually.

8 ‘‘(C) PROVISION OF PROJECT-BASED ASSIST9 ANCE UNDER CHANGED CIRCUMSTANCES.—The

10 Secretary shall, to the extent such amounts are

11 available, provide project-based assistance under

12 section 8 of the United States Housing Act of

13 1937 for any units in a project for which the

14 Secretary has provided tenant-based assistance

15 under this paragraph if, and only to the extent

16 that, the owner demonstrates to the satisfaction

17 of the Secretary within 24 months after the date

18 of acquisition by the owner that—

19 ‘‘(i) the provision of such project-based

20 assistance (I) is necessary to maintain the

21 financial viability of the project because of

22 changes occurring after such acquisition

23 that are beyond the control of the owner,

24 and (II) may reasonably be expected to

25 maintain such financial viability; or
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1 ‘‘(ii) sufficient habitable, affordable

2 housing for very low-income families and

3 other low-income families is not available

4 in the market area in which the project is

5 located.

6 Assistance provided pursuant to this subpara7 graph shall have a term of not more than 5

8 years.

9 ‘‘(3) OTHER ASSISTANCE.—

10 ‘‘(A) IN GENERAL.—In accordance with the

11 authority provided under the National Housing

12 Act, the Secretary may reduce the selling price,

13 apply use or rent restrictions on certain units,

14 or provide other financial assistance to the own15 ers of multifamily housing projects that are ac16 quired by a purchaser other than the Secretary

17 at foreclosure, or after sale by the Secretary, on

18 terms that ensure that—

19 ‘‘(i) at least the units in the project

20 otherwise required to receive project-based

21 assistance pursuant to subparagraphs (A),

22 (B), or (D) of paragraph (1) are available

23 to and affordable by low-income persons;

24 and
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1 ‘‘(ii) for the remaining useful life of

2 the project, as defined by the Secretary,

3 there shall be in force such use or rent re4 strictions as the Secretary may prescribe.

5 ‘‘(B) VERY LOW-INCOME TENANTS.—If, as a

6 result of actions taken pursuant to this para7 graph, the rents charged to any very low-income

8 families residing in the project who are otherwise

9 required (pursuant to subparagraph (A), (B), or

10 (D) of paragraph (1)) to receive project-based as11 sistance under section 8 of the United States

12 Housing Act of 1937 exceed the amount payable

13 as rent under section 3(a) of the United States

14 Housing Act of 1937, the Secretary shall provide

15 assistance under section 8 of such Act to such

16 families.

17 ‘‘(4) TRANSFER FOR USE UNDER OTHER PRO18 GRAMS OF SECRETARY.—

19 ‘‘(A) IN GENERAL.—The Secretary may

20 transfer a multifamily housing project—

21 ‘‘(i) to a public housing agency for use

22 of the project as public housing; or

23 ‘‘(ii) to an entity eligible to own or op24 erate housing under assisted section 202 of

25 the Housing Act of 1959 or under section
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1 811 of the Cranston-Gonzalez National Af2 fordable Housing Act for use as supportive

3 housing under either of such sections.

4 ‘‘(B) REQUIREMENTS FOR AGREEMENT.—

5 An agreement providing for the transfer of a

6 project described in subparagraph (A) shall—

7 ‘‘(i) contain such terms, conditions,

8 and limitations as the Secretary determines

9 appropriate, including requirements to en10 sure use of the project as public housing,

11 supportive housing under section 202 of the

12 Housing Act of 1959, or supportive housing

13 under section 811 of the Cranston-Gonzalez

14 National Affordable Housing Act, as appli15 cable; and

16 ‘‘(ii) ensure that no tenant of the

17 project will be displaced as a result of ac18 tions taken under this paragraph.

19 ‘‘(f) DISCRETIONARY ASSISTANCE.—In addition to the

20 actions taken under subsection (e) for a multifamily hous21 ing project, the Secretary may take any of the following

22 actions:

23 ‘‘(1) SHORT-TERM LOANS.—The Secretary may

24 provide a short-term loan to facilitate the sale of a
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1 multifamily housing project to a nonprofit organiza2 tion or a public agency if—

3 ‘‘(A) authority for such loans is provided in

4 advance in an appropriation Act;

5 ‘‘(B) such loan has a term of not more than

6 5 years;

7 ‘‘(C) the Secretary determines, based upon

8 documentation provided to the Secretary, that

9 the borrower has obtained a commitment of per10 manent financing to replace the short-term loan

11 from a lender who meets standards established by

12 the Secretary; and

13 ‘‘(D) the terms of such loan is consistent

14 with prevailing practices in the marketplace or

15 the provision of such loan results in no cost to

16 the Government, as defined in section 502 of the

17 Congressional Budget Act of 1974.

18 ‘‘(2) TENANT-BASED ASSISTANCE.—The Sec19 retary may make available tenant-based assistance

20 under section 8 of the United States Housing Act of

21 1937 to very low-income families residing in a multi22 family housing project that do not otherwise qualify

23 for project-based assistance.

24 ‘‘(3) ALTERNATIVE USES.—
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1 ‘‘(A) IN GENERAL.—Notwithstanding any

2 other provision of law, after providing notice to

3 and an opportunity to comment by existing ten4 ants, the Secretary may allow not more than—

5 ‘‘(i) 10 percent of the total number of

6 units in multifamily housing projects that

7 are disposed of by the Secretary during any

8 1-year period to be made available for uses

9 other than rental or cooperative uses, in10 cluding low-income homeownership oppor11 tunities, or in any particular project, com12 munity space, office space for tenant or

13 housing-related service providers or security

14 programs, or small business uses, if such

15 uses benefit the tenants of the project; and

16 ‘‘(ii) 5 percent of the total number of

17 units in multifamily housing projects that

18 are disposed of by the Secretary during any

19 1-year period to be used in any manner, if

20 the Secretary and the unit of general local

21 government or area-wide governing body de22 termine that such use will further fair hous23 ing, community development, or neighbor24 hood revitalization goals.
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1 ‘‘(B) DISPLACEMENT PROTECTION.—The

2 Secretary may take actions under subparagraph

3 (A) only if—

4 ‘‘(i) tenant-based rental assistance

5 under section 8 of the United States Hous6 ing Act of 1937 is made available to each

7 eligible family residing in the project that is

8 displaced as a result of such actions; and

9 ‘‘(ii) the Secretary determines that suf10 ficient habitable, affordable rental housing

11 is available in the market area in which the

12 project is located to allow use of such assist13 ance.

14 ‘‘(g) REQUIRED ASSISTANCE FOR CERTAIN

15 PROJECTS.—In disposing under this section of multifamily

16 housing projects, the Secretary shall, to the extent that such

17 assistance is available—

18 ‘‘(1) in the case of any project located in a mar19 ket area in which habitable, affordable rental housing

20 for very low-income families is not sufficiently avail21 able, provide tenant-based or project-based rental as22 sistance under section 8 of the United States Housing

23 Act of 1937 (depending on the circumstances of the

24 family) to very low-income families who are preexist-
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1 ing tenants of the project and do not otherwise qualify

2 for project-based assistance; and

3 ‘‘(2) provide project-based assistance for very

4 low-income families who are preexisting tenants of the

5 project to the extent that such assistance is necessary

6 to maintain the financial viability of the project and

7 is reasonably expected to maintain such financial vi8 ability.

9 ‘‘(h) RENT RESTRICTIONS.—

10 ‘‘(1) AUTHORITY FOR USE IN UNSUBSIDIZED

11 PROJECTS.—In carrying out the goals specified in

12 subsection (a), the Secretary may require certain

13 units in unsubsidized projects to be subject to use or

14 rent restrictions providing that such units will be

15 available to and affordable by very low-income per16 sons for the remaining useful life of the property, as

17 defined by the Secretary.

18 ‘‘(2) REQUIREMENT REGARDING SUBSIDIZED

19 AND FORMERLY SUBSIDIZED PROJECTS.—In dispos20 ing under this section of any subsidized or formerly

21 subsidized multifamily housing project, the Secretary

22 shall require rent restrictions providing that any un23 assisted very low-income family who resides in a unit

24 in the project on the date of disposition may not pay

25 as rent for the unit an amount in excess of 30 percent
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1 of the adjusted income of the family at any time dur2 ing the period beginning upon such disposition and

3 ending upon the earlier of—

4 ‘‘(A) 15 years after such disposition; or

5 ‘‘(B) the time at which the family first fails

6 to qualify as a very low-income family.

7 ‘‘(3) REQUIREMENT REGARDING UNSUBSIDIZED

8 PROJECTS.— Unless the Secretary determines that the

9 applicability of rent restrictions under this para10 graph to a project would unreasonably impede the

11 disposition of the project, in disposing under this sec12 tion of any unsubsidized multifamily housing project

13 the Secretary shall require rent restrictions providing

14 that any unassisted very low-income family who re15 sides in a unit in the project on the date of disposi16 tion may not pay as rent for the unit an amount in

17 excess of 30 percent of the adjusted income of the fam18 ily at any time during the period beginning upon

19 such disposition and ending upon the earlier of—

20 ‘‘(A) 15 years after such disposition; or

21 ‘‘(B) the time at which the family first fails

22 to qualify as a very low-income family.

23 ‘‘(4) PHASE-IN OF RENT INCREASES.—If the dis24 position under this section of any multifamily hous25 ing project results in any rent increases for any very
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1 low-income families who are preexisting tenants of the

2 project and are paying less than 30 percent of the ad3 justed income of the family for rent, the Secretary

4 shall provide that such rent increases shall be phased

5 in equally over a period of not less than 3 years.

6 ‘‘(5) DEFINITION OF ‘UNASSISTED VERY LOW-IN7 COME FAMILY’.—For purposes of this subsection, the

8 term ‘unassisted very low-income family’ means a

9 very low-income family who resides in a unit that is

10 not assisted with project-based assistance under sec11 tion 8 of the United States Housing Act of 1937 and

12 on whose behalf tenant-based assistance under such

13 section is not provided.

14 ‘‘(i) CONTRACT REQUIREMENTS.—Contracts for

15 project-based rental assistance under section 8 of the United

16 States Housing Act of 1937 provided pursuant to this sec17 tion shall be subject to the following requirements:

18 ‘‘(1) CONTRACT TERM.—The contract shall have

19 a term of 15 years, except that—

20 ‘‘(A) the term may be less than 15 years to

21 the extent that the Secretary finds that, based on

22 the rental charges and financing for the multi23 family housing project to which the contract re24 lates, the financial viability of the project can be
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1 maintained under a contract having such a

2 term;

3 ‘‘(B) to the extent that units receive project4 based assistance for a contract term of less than

5 15 years, the Secretary shall require that the

6 mount of rent payable by tenants of the project

7 for such units shall not exceed the amount pay8 able for rent under section 3(a) of the United

9 States Housing Act of 1937 for a period of at

10 least 15 years; and

11 ‘‘(C) the term may be less than 15 years if

12 such assistance is provided—

13 ‘‘(i) under a contract authorized under

14 section 6 of the HUD Demonstration Act of

15 1993; and

16 ‘‘(ii) pursuant to a disposition plan

17 under this section for a project that is deter18 mined by the Secretary to be otherwise in

19 compliance with this section.

20 ‘‘(2) CONTRACT RENT.—

21 ‘‘(A) IN GENERAL.—The Secretary shall es22 tablish contract rents for section 8 project-based

23 rental contracts issued under this section at lev24 els that provide sufficient amounts for the nec25 essary costs of rehabilitating and operating the
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1 multifamily housing project and do not exceed

2 144 percent of the existing housing fair market

3 rentals for the market area in which the project

4 assisted under the contract is located.

5 ‘‘(B) UP-FRONT GRANTS AND LOANS.—If the

6 Secretary determines that action under this sub7 paragraph is more cost-effective, the Secretary

8 may utilize the budget authority provided for

9 contracts issued under this section for project10 based assistance under section 8 of the United

11 States Housing Act of 1937 to (in addition to

12 providing project-based section 8 rental assist13 ance)—

14 ‘‘(i) provide up-front grants to non15 profit organizations or public housing agen16 cies for the necessary cost of rehabilitation;

17 or

18 ‘‘(ii) pay any cost to the Government,

19 as defined in section 502 of the Congres20 sional Budget Act of 1974, for loans made

21 pursuant to subsection (f)(1).

22 ‘‘(j) DISPOSITION PLAN.—

23 ‘‘(1) IN GENERAL.—Prior to the sale of a multi24 family housing project that is owned by the Secretary,

25 the Secretary shall develop an initial disposition plan
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1 for the project that specifies the minimum terms and

2 conditions of the Secretary for disposition of the

3 project, the initial sales price that is acceptable to the

4 Secretary, and the assistance that the Secretary plans

5 to make available to a prospective purchaser in ac6 cordance with this section. The initial sales price

7 shall be reasonably related to the intended use of the

8 property after sale, any rehabilitation requirements

9 for the project, the rents for units in the project that

10 can be supported by the market, the amount of rental

11 assistance available for the project under section 8 of

12 the United States Housing Act of 1937, and the occu13 pancy profile of the project.

14 ‘‘(2) COMMUNITY AND TENANT INPUT.—In carry15 ing out this section, the Secretary shall develop proce16 dures—

17 ‘‘(A) to obtain appropriate and timely

18 input into disposition plans from officials of the

19 unit of general local government affected, the

20 community in which the project is situated, and

21 the tenants of the project; and

22 ‘‘(B) to facilitate, where feasible and appro23 priate, the sale of multifamily housing projects

24 to existing tenant organizations with dem25 onstrated capacity, to public or nonprofit enti-
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1 ties that represent or are affiliated with existing

2 tenant organizations, or to other public or non3 profit entities.

4 ‘‘(3) TECHNICAL ASSISTANCE.—To carry out the

5 procedures developed under paragraph (2), the Sec6 retary may provide technical assistance, directly or

7 indirectly, and may use amounts available for tech8 nical assistance under the Emergency Low Income

9 Housing Preservation Act of 1987, subtitle C of the

10 Low-Income Housing Preservation and Resident

11 Homeownership Act of 1990, subtitle B of title IV of

12 the Cranston-Gonzalez National Affordable Housing

13 Act, or this section, for the provision of technical as14 sistance under this paragraph. Recipients of technical

15 assistance funding under the provisions referred to in

16 this paragraph shall be permitted to provide technical

17 assistance to the extent of such funding under any of

18 such provisions or under this paragraph, notwith19 standing the source of the funding.

20 ‘‘(k) RIGHT OF FIRST REFUSAL FOR LOCAL AND

21 STATE GOVERNMENT AGENCIES.—

22 ‘‘(1) NOTIFICATION OF ACQUISITION OF TITLE.—

23 Not later than 30 days after acquiring title to a mul24 tifamily housing project, the Secretary shall notify the

25 unit of general local government (which, for purposes
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1 of this subsection, shall include any public housing

2 agency) for the area in which the project is located

3 and the State agency or agencies designated by the

4 Governor of the State in which the project is located

5 of such acquisition.

6 ‘‘(2) RIGHT OF FIRST REFUSAL.—During the pe7 riod beginning upon acquisition of title to a multi8 family housing project and ending 45 days after com9 pletion of notification under paragraph (1), the Sec10 retary may offer to sell and may sell the project only

11 to the unit of general local government or the des12 ignated State agency.

13 ‘‘(3) EXPRESSION OF INTEREST.—The unit of

14 general local government or designated State agency

15 may submit to the Secretary a preliminary expres16 sion of interest in a project not later than 45 days

17 after receiving notification from the Secretary under

18 paragraph (1) regarding the project. The Secretary

19 may take such actions as may be necessary to require

20 the unit of general local government or designated

21 State agency to substantiate such interest.

22 ‘‘(4) TIMELY EXPRESSION OF INTEREST.—If the

23 unit of general local government or designated State

24 agency has submitted an expression of interest in a

25 project before the expiration of the 45-day period re-
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1 ferred to in paragraph (3) and has substantiated such

2 interest if requested, the Secretary, upon approval of

3 a disposition plan for the project, shall—

4 ‘‘(A) notify the unit of general local govern5 ment and designated State agency of the terms

6 and conditions of the disposition plan; and

7 ‘‘(B) provide that, for 90 days after the date

8 of such notification, only the unit of general

9 local government or designated State agency

10 may make an offer to purchase the project.

11 ‘‘(5) FAILURE TO TIMELY EXPRESS INTEREST.—

12 If the unit of general local government or designated

13 State agency does not timely express and, if requested,

14 substantiate interest in a project as provided in para15 graph (4), the Secretary may offer the project for sale

16 to any interested person or entity upon approval of

17 the disposition plan for the project.

18 ‘‘(6) ACCEPTANCE OF OFFERS.—If the unit of

19 general local government or designated State agency

20 timely expresses and, if requested, substantiates inter21 est in a project as provided in paragraph (4), the

22 Secretary shall accept an offer made by the unit of

23 general local government or designated State agency

24 during the 90-day period for the project under para25 graph (4)(B) that complies with the terms and condi-
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1 tions of the disposition plan for the project. The Sec2 retary may accept an offer that does not comply with

3 the terms and conditions of the disposition plan if the

4 Secretary determines that the offer will further the

5 goals specified in subsection (a) by actions that in6 clude extension of the duration of low-income afford7 ability restrictions or otherwise restructuring the

8 transaction in a manner that enhances the long-term

9 affordability for low-income persons. The Secretary

10 may reduce the initial sales price in exchange for the

11 extension of low-income affordability restrictions be12 yond the period of assistance contemplated by the at13 tachment of assistance pursuant to subsection (i)(1)

14 and in order to facilitate affordable rents.

15 ‘‘(7) FAILURE TO SELL TO LOCAL OR STATE GOV16 ERNMENT AGENCY.—If the Secretary and the unit of

17 general local government or designated State agency

18 cannot reach agreement on an offer for purchase of a

19 project within the 90-day period for the project under

20 paragraph (4)(B), the Secretary may offer the project

21 for sale to the general public.

22 ‘‘(8) PURCHASE BY UNIT OF GENERAL LOCAL

23 GOVERNMENT OR DESIGNATED STATE AGENCY.—Not24 withstanding any other provision of law, a unit of

25 general local government (including a public housing
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1 agency) or designated State agency may purchase a

2 subsidized or formerly subsidized project in accord3 ance with this subsection.

4 ‘‘(9) APPLICABILITY.—This subsection shall

5 apply to projects that are acquired on or after the ef6 fective date of this subsection. With respect to projects

7 acquired before such effective date, the Secretary may

8 apply—

9 ‘‘(A) the requirements of paragraphs (2)

10 and (3) of section 203(e) (as in effect imme11 diately before the effective date of this sub12 section); or

13 ‘‘(B) the requirements of paragraphs (1)

14 through (7) of this subsection, if—

15 ‘‘(i) the Secretary gives the unit of gen16 eral local government or designated State

17 agency 45 days to express interest in the

18 project; and

19 ‘‘(ii) the unit of general local govern20 ment or designated State agency expresses

21 interest in the project before the expiration

22 of the 45-day period, and substantiates such

23 interest if requested, within 90 days from

24 the date of notification of the terms and
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1 conditions of the disposition plan to make

2 an offer to purchase the project.

3 ‘‘(10) TRANSFER BY LOCAL OR STATE GOVERN4 MENT AGENCY PURCHASERS.—The Secretary shall

5 permit units of general local government and des6 ignated State agencies to transfer multifamily hous7 ing projects acquired under the right of first refusal

8 under this subsection to a private entity, but only if

9 the local government or State agency clearly identifies

10 its intention to transfer the project in the offer to pur11 chase the property accepted by the Secretary under

12 this subsection.

13 ‘‘(l) DISPLACEMENT OF TENANTS AND RELOCATION

14 ASSISTANCE.—

15 ‘‘(1) IN GENERAL.—Whenever tenants will be

16 displaced as a result of the disposition of, or repairs

17 to, a multifamily housing project that is owned by the

18 Secretary (or for which the Secretary is mortgagee in

19 possession), the Secretary shall identify tenants who

20 will be displaced and shall notify all such tenants of

21 their pending displacement and of any relocation as22 sistance that may be available. In the case of the dis23 position of tenants of a multifamily housing project

24 that is not owned by the Secretary (and for which the

25 Secretary is not mortgagee in possession), the Sec-
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1 retary shall require the owner of the project to carry

2 out the requirements of this paragraph.

3 ‘‘(2) RIGHTS OF DISPLACED TENANTS.—The Sec4 retary shall ensure for any such tenant (who contin5 ues to meet applicable qualification standards) the

6 right—

7 ‘‘(A) to return, whenever possible, to a re8 paired unit;

9 ‘‘(B) to occupy a unit in another multifam10 ily housing project owned by the Secretary;

11 ‘‘(C) to obtain housing assistance under the

12 United States Housing Act of 1937; or

13 ‘‘(D) to receive any other available reloca14 tion assistance as the Secretary determines to be

15 appropriate.

16 ‘‘(m) MORTGAGE AND PROJECT SALES.—

17 ‘‘(1) IN GENERAL.—The Secretary may not ap18 prove the sale of any loan or mortgage held by the

19 Secretary (including any loan or mortgage owned by

20 the Government National Mortgage Association) on

21 any subsidized project or formerly subsidized project,

22 unless such sale is made as part of a transaction that

23 will ensure that such project will continue to operate

24 at least until the maturity date of such loan or mort25 gage, in a manner that will provide rental housing on
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1 terms at least as advantageous to existing and future

2 tenants as the terms required by the program under

3 which the loan or mortgage was made or insured

4 prior to the assignment of the loan or mortgage on

5 such project to the Secretary.

6 ‘‘(2) SALE OF CERTAIN PROJECTS.—The Sec7 retary may not approve the sale of any subsidized

8 project—

9 ‘‘(A) that is subject to a mortgage held by

10 the Secretary, or

11 ‘‘(B) if the sale transaction involves the pro12 vision of any additional subsidy funds by the

13 Secretary or a recasting of the mortgage,

14 unless such sale is made as part of a transaction that

15 will ensure that the project will continue to operate,

16 at least until the maturity date of the loan or mort17 gage, in a manner that will provide rental housing on

18 terms at least as advantageous to existing and future

19 tenants as the terms required by the program under

20 which the loan or mortgage was made or insured

21 prior to the proposed sale of the project.

22 ‘‘(3) MORTGAGE SALES TO STATE AND LOCAL

23 GOVERNMENTS.—Notwithstanding any provision of

24 law that requires competitive sales or bidding, the

25 Secretary may carry out negotiated sales of subsidized
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1 or formerly subsidized mortgages held by the Sec2 retary, without the competitive selection of purchasers

3 or intermediaries, to units of general local govern4 ment or State agencies, or groups of investors that in5 clude at least one such unit of general local govern6 ment or State agency, if the negotiations are con7 ducted with such agencies, except that—

8 ‘‘(A) the terms of any such sale shall in9 clude the agreement of the purchasing agency or

10 unit of local government or State agency to act

11 as mortgagee or owner of a beneficial interest in

12 such mortgages, in a manner consistent with

13 maintaining the projects that are subject to such

14 mortgages for occupancy by the general tenant

15 group intended to be served by the applicable

16 mortgage insurance program, including, to the

17 extent the Secretary determines appropriate, au18 thorizing such unit of local government or State

19 agency to enforce the provisions of any regu20 latory agreement or other program requirements

21 applicable to the related projects; and

22 ‘‘(B) the sales prices for such mortgages

23 shall be, in the determination of the Secretary,

24 the best prices that may be obtained for such

25 mortgages from a unit of general local govern-
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1 ment or State agency, consistent with the expec2 tation and intention that the projects financed

3 will be retained for use under the applicable

4 mortgage insurance program for the life of the

5 initial mortgage insurance contract.

6 ‘‘(4) SALE OF MORTGAGES COVERING

7 UNSUBSIDIZED PROJECTS.—Notwithstanding any

8 other provision of law, the Secretary may sell mort9 gages held on unsubsidized projects on such terms and

10 conditions as the Secretary may prescribe.

11 ‘‘(n) REPORT TO CONGRESS.—Not later than June 1

12 of each year, the Secretary shall submit to the Congress a

13 report describing the status of multifamily housing projects

14 owned by or subject to mortgages held by the Secretary. The

15 report shall include—

16 ‘‘(1) the name, address, and size of each project;

17 ‘‘(2) the nature and date of assignment of each

18 project;

19 ‘‘(3) the status of the mortgage for each project;

20 ‘‘(4) the physical condition of each project;

21 ‘‘(5) for each subsidized or formerly subsidized

22 project, an occupancy profile of the project, stating

23 the income, family size, race, and ethnic origin of

24 current residents and the rents paid by such residents;
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1 ‘‘(6) the proportion of units in each project that

2 are vacant;

3 ‘‘(7) the date on which the Secretary became

4 mortgagee in possession of each project, if applicable;

5 ‘‘(8) the date and conditions of any foreclosure

6 sale for a project;

7 ‘‘(9) the date of acquisition of each project by the

8 Secretary, if applicable;

9 ‘‘(10) the date and conditions of any property

10 disposition sale for a project;

11 ‘‘(11) a description of actions undertaken pursu12 ant to this section, including a description of the ef13 fectiveness of such actions and any impediments to

14 the disposition or management of multifamily hous15 ing projects;

16 ‘‘(12) a description of any of the functions per17 formed in connection with this section that are con18 tracted out to public or private entities or to States;

19 and

20 ‘‘(13) a description of the activities carried out

21 under subsection (k) during the preceding year.’’.

22 (c) CLARIFICATION OF FEDERAL PREFERENCES.—

23 (1) PUBLIC HOUSING TENANCY.—Section

24 6(c)(4)(A)(i) of the United States Housing Act of

25 1937 (42 U.S.C. 1437d(c)(4)(A)(i)) is amended by in-
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1 serting after ‘‘displaced’’ the following: ‘‘(including

2 displacement because of disposition of a multifamily

3 housing project under section 203 of the Housing and

4 Community Development Amendments of 1978)’’.

5 (2) SECTION 8 ASSISTANCE.—Section

6 8(d)(1)(A)(i) of the United States Housing Act of

7 1937 (42 U.S.C. 1437f(d)(1)(A)(i)) is amended by in8 serting after ‘‘displaced’’ the following: ‘‘(including

9 displacement because of disposition of a multifamily

10 housing project under section 203 of the Housing and

11 Community Development Amendments of 1978)’’.

12 (d) DEFINITION OF OWNER.—Section 8(f)(1) of the

13 United States Housing Act of 1937 (42 U.S.C. 1437f(f)(1))

14 is amended by inserting ‘‘an agency of the Federal Govern15 ment,’’ after ‘‘cooperative,’’.

16 (e) AMENDMENT TO NATIONAL HOUSING ACT.—Title

17 V of the National Housing Act (12 U.S.C. 1731a et seq.)

18 is amended by adding at the end the following new section:

19 ‘‘PARTIAL PAYMENT OF CLAIMS ON MULTIFAMILY HOUSING

20 PROJECTS

21 ‘‘SEC. 541. (a) AUTHORITY.—Notwithstanding any

22 other provision of law, if the Secretary is requested to accept

23 assignment of a mortgage insured by the Secretary that cov24 ers a multifamily housing project (as such term is defined

25 in section 203(b) of the Housing and Community Develop26 ment Amendments of 1978) and the Secretary determines
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1 that partial payment would be less costly to the Federal

2 Government than other reasonable alternatives for main3 taining the low-income character of the project, the Sec4 retary may request the mortgagee, in lieu of assignment,

5 to—

6 ‘‘(1) accept partial payment of the claim under

7 the mortgage insurance contract; and

8 ‘‘(2) recast the mortgage, under such terms and

9 conditions as the Secretary may determine.

10 ‘‘(b) REPAYMENT.—As a condition to a partial claim

11 payment under this section, the mortgagor shall agree to

12 repay to the Secretary the amount of such payment and

13 such obligation shall be secured by a second mortgage on

14 the property on such terms and conditions as the Secretary

15 may determine.’’.

16 (f) EFFECTIVE DATE.—The Secretary shall issue in17 terim regulations necessary to implement the amendments

18 made by subsections (b) through (d) not later than 90 days

19 after the date of the enactment of this Act. Such interim

20 regulations shall take effect upon issuance and invite public

21 comment on the interim regulations. The Secretary shall

22 issue final regulations to implement such amendments after

23 opportunity for such public comment, but not later than

24 12 months after the date of issuance of such interim regula25 tions.
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1 SEC. 6002. SECTION 235 MORTGAGE REFINANCING.

2 Section 235(r) of the National Housing Act is amend3 ed—

4 (1) in paragraph (2)(C), by inserting after ‘‘refi5 nanced’’ the following: ‘‘, plus the costs incurred in

6 connection with the refinancing as described in para7 graph (4)(B) to the extent that the amount for those

8 costs is not otherwise included in the interest rate as

9 permitted by subparagraph (E) or paid by the Sec10 retary as authorized by paragraph (4)(B)’’;

11 (2) in paragraph (4)—

12 (A) in the matter preceding subparagraph

13 (A), by inserting after ‘‘otherwise)’’ the following:

14 ‘‘and the mortgagee (with respect to the amount

15 described in subparagraph (A))’’; and

16 (B) in subparagraph (A), by inserting after

17 ‘‘mortgagor’’ the following: ‘‘and the mortgagee’’;

18 and

19 (3) by amending paragraph (5) to read as fol20 lows:

21 ‘‘(5) The Secretary shall use amounts of budget author22 ity recaptured from assistance payments contracts relating

23 to mortgages that are being refinanced for assistance pay24 ments contracts with respect to mortgages insured under

25 this subsection. The Secretary may also make such recap26 tured amounts available for incentives under paragraph
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1 (4)(A) and the costs incurred in connection with the refi2 nancing under paragraph (4)(B). For purposes of sub3 section (c)(3)(A), the amount of recaptured budget author4 ity that the Secretary commits for assistance payments con5 tracts relating to mortgages insured under this subsection

6 and for amounts paid under paragraph (4) shall not be

7 construed as unused.’’.

8 SEC. 6003. USE OF EMERGENCY ASSISTANCE FUNDS FOR

9 RESIDENCY IN MULTIFAMILY HOUSING DIS10 POSITION PROJECTS.

11 Section 203(f) of the Housing and Community Devel12 opment Amendments of 1978 (12 U.S.C. 1701z–11), as

13 amended by section 6001 of this Act, is further amended

14 by adding at the end the following new paragraph:

15 ‘‘(4) EMERGENCY ASSISTANCE FUNDS.—The Sec16 retary may make arrangements with State agencies

17 and units of general local government of States receiv18 ing emergency assistance under part A of title IV of

19 the Social Security Act for the provision of assistance

20 under such Act on behalf of eligible families who

21 would reside in any multifamily housing projects.’’.

22 SEC. 6004. ADDITIONAL EMPLOYEES TO FACILITATE DIS23 POSITION OF FHA INVENTORY PROPERTIES.

24 Notwithstanding any other provision of law, during

25 fiscal years 1993, 1994, and 1995 amounts in the various
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1 funds of the Federal Housing Administration otherwise

2 available to the Secretary of Housing and Urban Develop3 ment for non-overhead expenses associated with processing,

4 accounting, loan servicing, asset management, and disposi5 tion services may be used by the Secretary for personnel

6 compensation and benefits for temporary employees of the

7 Department of Housing and Urban Development employed

8 to manage, service, and dispose of single family and multi9 family properties insured by, assigned to, or owned by the

10 Secretary. The Secretary may employ not more than 400

11 temporary employees at any one time using amounts made

12 available pursuant to this section, no such employee may

13 be employed in a temporary position pursuant to this sec14 tion for a period in excess of 2 years, and such employees

15 shall not be considered for purposes of any personnel ceiling

16 applicable to the Department of Housing and Urban Devel17 opment or any unit therein or any personnel ceiling appli18 cable to temporary employees of the Federal Government.

19 SEC. 6005. HUD STREAMLINING.

20 The Secretary of Housing and Urban Development

21 shall carry out the recommendation of the Report of the Na22 tional Performance Review, issued on September 7, 1993,

23 that the Department streamline its headquarters, regional,

24 and field office structure and consolidate and reduce its size,
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1 without regard to the requirements of section 7(p) of the

2 Department of Housing and Urban Development Act.

3 TITLE VII—DEPARTMENT OF

4 THE INTERIOR

5 Subtitle A—Improve the Federal

6 Helium Program

7 SEC. 7001. AMENDMENTS TO HELIUM ACT AMENDMENTS OF

8 1960.

9 (a) Section 4 of the Helium Act Amendments of 1960

10 (74 Stat. 920, 50 U.S.C. 167b) is amended to insert after

11 ‘‘lands acquired, leased, or reserved;’’ the following: ‘‘re12 duce costs and increase operational efficiencies, especially

13 in operations that do not produce revenue; establish and

14 adjust fees charged private industry for storage, trans15 mission, and withdrawal of privately-owned helium from

16 Government storage facilities to compensate fully for all

17 costs incurred;’’.

18 (b) Section 6 of the Helium Act Amendments of 1960

19 (74 Stat. 921, 50 U.S.C. 167d) is amended—

20 (1) by amending subsection (b) to read:

21 ‘‘(b) The Secretary is authorized to sell helium for

22 Federal, medical, scientific, and commercial uses in such

23 quantities and under such terms and conditions as the

24 Secretary determines. Sales shall be made in quantities

25 and a manner to avoid undue disruption of the usual mar-
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1 kets of producers, processors, and consumers of helium

2 and to protect the United States against avoidable loss.’’;

3 and

4 (2) by amending subsection (c) to read:

5 ‘‘(c) Sales of helium by the Secretary shall be at

6 prices, as established by the Secretary, that are adequate

7 to cover all costs incurred in carrying out the provisions

8 of this Act. Helium shall be sold at prices comparable to

9 helium sold by private industry. An annual review of price

10 comparability shall be made and adjustments shall be

11 made accordingly.’’.

12 SEC. 7002. LONG-TERM COMPREHENSIVE PLAN.

13 The Secretary of the Interior shall prepare and de14 velop a long-term, comprehensive plan to (1) cancel the

15 outstanding debt owed to the Treasury by the Department

16 of the Interior related to the Federal helium program; and

17 (2) improve Federal helium program operations over a

18 multi-year period. The plan should analyze various options

19 to accomplish (1) and (2) above, with emphasis on ways

20 to minimize adverse impacts on Federal employment, Fed21 eral helium purchasers, and U.S. private sector helium

22 markets. The plan, with the Secretary’s preferred options,

23 shall be presented to the President within 4 months of

24 enactment of this Act. The President may adopt the plan,

25 in whole or in part, and is authorized to cancel the out-
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1 standing debt upon a finding that such debt cancellation

2 is in the national interest.

3 Subtitle B Subtitle A—Improve

4 Minerals Management Service

5 Royalty Collection

6 SEC. 7101. IMPROVEMENT OF MINERALS MANAGEMENT

7 SERVICE ROYALTY COLLECTION.

8 (a) The Secretary of the Interior shall, by fiscal year

9 1995, direct the Minerals Management Service, Royalty

10 Management Program, to develop and implement (1) an

11 automated business information system to provide to its

12 auditors a lease history that includes reference, royalty,

13 production, financial, compliance history, pricing and valu14 ation, and other information; (2) the optimum methods

15 to identify and resolve anomalies and to verify that royal16 ties are paid correctly; (3) a more efficient and cost-effec17 tive royalty collection process by instituting new compli18 ance and enforcement measures, including assessments

19 and penalties for erroneous reporting and underreporting;

20 and (4) (4) pilot projects under which a State may assume

21 mineral receipt collections on Federal lands within the

22 State and where the State assumes 50 percent of the cost

23 of such pilot project; and (5) such other actions as may

24 be necessary to reduce royalty underpayment and increase
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1 revenue to the U.S. Treasury by an estimated total of $28

2 million by fiscal year 1999.

3 (b) The Federal Oil and Gas Royalty Management

4 Act of 1982 (Public Law No. 97–451), 30 U.S.C. 1701

5 et seq.) is amended by adding a new subsection 111(h)

6 as follows:

7 ‘‘PENALTY ASSESSMENT FOR SUBSTANTIAL

8 UNDERREPORTING OF ROYALTY’’

9 ‘‘SEC. 111. (h)(1) If there is any underreporting of

10 royalty owed on production from any lease issued or ad11 ministered by the Secretary for the production of oil, gas,

12 coal, any other mineral, or geothermal steam, from any

13 Federal or Indian lands or the Outer Continental Shelf,

14 for any production month, by any person who is respon15 sible for paying royalty, the Secretary may assess a pen16 alty of 10 percent of the amount of that underreporting.

17 ‘‘(2) If there is a substantial underreporting of roy18 alty owed on production from any lease issued or adminis19 tered by the Secretary for the production of oil, gas, coal,

20 any other mineral, or geothermal steam, from any Federal

21 or Indian lands or the Outer Continental Shelf, for any

22 production month, by any person who is responsible for

23 paying royalty, the Secretary may assess a penalty of 20

24 percent of the amount of that substantial underreporting.

25 ‘‘(3) For purposes of this section, the term

26 ‘underreporting’ means the difference between the royalty
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1 on the value of the production which should have been re2 ported and the royalty on the value of the production

3 which was reported, if the value of the production which

4 should have been reported is greater than the value of the

5 production which was reported. An underreporting con6 stitutes a ‘substantial underreporting’ if such difference

7 exceeds 10 percent of the royalty on the value of the pro8 duction which should have been reported.

9 ‘‘(4) The Secretary shall not impose the assessment

10 provided in paragraphs (1) or (2) if the person corrects

11 the underreporting before the date the person receives no12 tice from the Secretary that an underreporting may have

13 occurred, or before 90 days after the date of enactment

14 of this section, whichever is later.

15 ‘‘(5) The Secretary shall waive any portion of an as16 sessment provided in paragraphs (1) or (2) attributable

17 to that portion of the underreporting for which the person

18 demonstrates that—

19 ‘‘(i) the person had written authorization from

20 the Secretary to report royalty on the value of the

21 production on the basis on which it was reported, or

22 ‘‘(ii) the person had substantial authority for

23 reporting royalty on the value of the production on

24 the basis on which it was reported, or
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1 ‘‘(iii) the person previously had notified the

2 Secretary, in such manner as the Secretary may by

3 rule prescribe, of relevant reasons or facts affecting

4 the royalty treatment of specific production which

5 led to the underreporting, or

6 ‘‘(iv) the person meets any other exception

7 which the Secretary may, by rule, establish.

8 ‘‘(6) All penalties collected under this subsection shall

9 be deposited to the same accounts in the Treasury or paid

10 to the same recipients in the same manner as the royalty

11 with respect to which such penalty is paid.’’.

12 Subtitle C Subtitle B—Phase Out

13 the Mineral Institute Program

14 SEC. 7201. PHASE OUT OF MINERAL INSTITUTE PROGRAM.

15 The Secretary of the Interior, beginning in fiscal year

16 1995, shall take action to phase out the Mining and Min17 eral Resources Research Institute Act of 1984, Public Law

18 98–409, as amended (98 Stat. 1536 through 1541 and

19 102 Stat. 2339 through 2341, 30 U.S.C. 1221 through

20 1230). There are hereby authorized to be appropriated

21 under the Act the following amounts: fiscal year 1995—

22 $6.5 million; fiscal year 1996—$5 million; fiscal year

23 1997—$3 million; and fiscal year 1998—$1.5 million. No

24 further appropriations for this Act are authorized after

25 September 30, 1998.
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1 Subtitle C—Reorganization of

2 Bureau of Indian Affairs

3 SEC. 7301. REORGANIZATION STUDY.

4 (a) GENERAL AUTHORITY.—The Secretary of the Inte5 rior, with the active participation of Indian tribes, shall

6 conduct a study of the reorganization of the Bureau of In7 dian Affairs.

8 (b) CONTENT.—The study conducted under subsection

9 (a) shall include (but shall not be limited to)—

10 (1) an examination of the current structure of

11 the Bureau of Indian Affairs and recommendations

12 for structural changes to improve the implementation

13 of Federal trust responsibilities toward Indian tribes;

14 (2) an examination of the current roles of the

15 Central, Area, and Agency offices of the Bureau of In16 dian Affairs and recommendations to improve effi17 ciency of the Bureau through reorganization;

18 (3) an examination of the efficiency of the Bu19 reau of Indian Affairs in comparison with other Bu20 reaus of the Department of the Interior;

21 (4) an examination of the barriers to the imple22 mentation of the 1988 amendments to the Indian

23 Self-Determination and Education Assistance Act

24 throughout the Department of the Interior and a pro25 posed plan for effective implementation; and
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1 (5) recommendations for the transfer of personnel

2 and resources from the Central, Area, and Agency of3 fices of the Bureau of Indian Affairs to Indian tribes.

4 (c) REPORT.—The Secretary shall complete the study

5 conducted pursuant to this section and shall submit such

6 study, together with recommendations and draft legislation

7 to implement such recommendations, to the Congress within

8 one year after the date of enactment of this Act.

9 Subtitle D—Termination of Annual

10 Direct Grant Assistance

11 SEC. 7401. TERMINATION OF ANNUAL DIRECT GRANT AS12 SISTANCE

13 (a) TERMINATION.—Pursuant to section 704(d) of the

14 Covenant to Establish a Commonwealth of the Northern

15 Mariana Islands in Political Union with the United States

16 of America (48 U.S.C. 1681 note), the annual payments

17 under section 702 of the Covenant shall terminate as of Sep18 tember 30, 1993.

19 (b) REPEAL.—Sections 3 and 4 of the Act of March

20 24, 1976 (Public Law 94–241; 48 U.S.C. 1681 note), as

21 amended, are repealed, effective October 1, 1993.
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1 TITLE VIII—DEPARTMENT OF

2 JUSTICE

3 SEC. 8001. BUREAU OF PRISONS HEALTH SERVICES USER

4 FEE.

5 Chapter 303 of title 18, United States Code, is

6 amended by adding at the end the following new section:

7 ‘‘SEC. 4047. USER FEE FOR HEALTH SERVICES.

8 ‘‘The Attorney General may assess a nominal fee for

9 health services provided to an inmate. The Attorney Gen10 eral may withdraw, without the inmate’s consent, funds

11 from his or her trust fund account, designated as ‘Funds

12 of Federal Prisoners’ in section 1321(a)(21) of title 31,

13 necessary to pay fees incurred by the inmate for health

14 services. The Attorney General may waive or refund, for

15 good cause and at any time, all or part of the expenses

16 incurred by an inmate through the assessment of fees for

17 health services. An inmate shall not be denied health serv18 ices treatment because of his or her inability to pay a

19 health services fee. The Attorney General is authorized to

20 promulgate regulations to implement this section.’’.
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1 TITLE IX—DEPARTMENT OF

2 LABOR

3 Subtitle A—Deterrence of Fraud

4 and Abuse in the FECA Program

5 SEC. 9001. DETERRENCE OF FRAUD AND ABUSE IN FECA

6 PROGRAM.

7 (a) Section 8102 of title 5, United States Code, is

8 amended to redesignate subsection (b) as subsection (c),

9 and to add the following new subsection (b):

10 ‘‘(b) An individual convicted of a violation of 18

11 U.S.C. 1920, as amended, or of any other fraud related

12 to the application for or receipt of benefits under sub13 chapter I or III of chapter 81 of title 5, shall forfeit, as

14 of the date of the conviction, all entitlement to any pro15 spective benefits provided by subchapter I or III for any

16 injury occurring on or before the date of the conviction.

17 Such a forfeiture of benefits shall be in addition to any

18 action the Secretary may take under section 8106 or 8129

19 of title 5, United States Code.’’.

20 (b) Section 8116 of title 5, United States Code, is

21 amended by adding the following new subsection (e):

22 ‘‘(e) Notwithstanding any other provision of this title,

23 no benefits under sections 8105 or 8106 of this subchapter

24 shall be paid or provided to any individual during any pe25 riod during which such individual is confined in a jail,
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1 prison, or other penal institution or correctional facility,

2 pursuant to that individual’s conviction of an offense that

3 constituted a felony under applicable law, except where

4 such individual has one or more dependents within the

5 meaning of section 8110 of this subchapter, in which case

6 the Secretary may, during the period of incarceration, pay

7 to such dependents a percentage of the benefits that would

8 have been payable to such individual computed according

9 to the percentages set forth in section 8133(a) (1)–(5) of

10 this subchapter.’’.

11 (c) Section 8116 of title 5, United States Code, is

12 further amended by adding the following new subsection

13 (f):

14 ‘‘(f) Notwithstanding the provisions of section 552a

15 of this title, or any other provision of Federal or State

16 law, any agency of the United States Government or of

17 any State (or political subdivision thereof) shall make

18 available to the Secretary, upon written request, the

19 names and Social Security account numbers of individuals

20 who are confined in a jail, prison or other penal institution

21 or correctional facility under the jurisdiction of such agen22 cy, pursuant to such individuals’ conviction of an offense

23 that constituted a felony under applicable law, which the

24 Secretary may require to carry out the provisions of this

25 subsection.’’.
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1 (d) Section 1920 of title 18, United States Code, is

2 amended to read as follows: ‘‘Whoever knowingly and will3 fully falsifies, conceals, or covers up a material fact, or

4 makes a false, fictitious, or fraudulent statement or rep5 resentation, or makes or uses a false statement or report

6 knowing the same to contain any false, fictitious or fraud7 ulent statement or entry in connection with the application

8 for or receipt of compensation or other benefit or payment

9 under subchapter I or III of chapter 81 of title 5, United

10 States Code, shall be punished by a fine of not more than

11 $250,000, or by imprisonment for not more than five

12 years, or both.’’.

13 (e) Except as otherwise provided in this section, the

14 amendments made by this section shall be effective on the

15 date of enactment and shall apply to actions taken on or

16 after the date of enactment both with respect to claims

17 filed before the day of enactment and with respect to

18 claims filed after such date.

19 (f) The amendments made by subsections (a), (b),

20 and (c) of this section shall be effective on the date of

21 enactment and shall apply to any person convicted or im22 prisoned on or after the date of enactment.

23 (g) The amendment made by subsection (d) of this

24 section shall be effective on the date of enactment and

25 shall apply to any claim, statement, representation, report,
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1 or other written document made or submitted in connec2 tion with a claim filed under subchapter I or III of chapter

3 81 of title 5, United States Code.

4 Subtitle B—Enhancement of Reem5 ployment Programs for Federal

6 Employees Disabled in the Per7 formance of Duty

8 SEC. 9101. ENHANCEMENT OF REEMPLOYMENT PROGRAMS

9 FOR FEDERAL EMPLOYEES DISABLED IN THE

10 PERFORMANCE OF DUTY.

11 (a) Section 8104 of title 5, United States Code, is

12 amended—

13 (1) by striking the comma after ‘‘employment’’

14 and by striking ‘‘other than employment undertaken

15 pursuant to such rehabilitation’’ from subsection (b);

16 and

17 (2) by adding the following new subsection (c):

18 ‘‘(c) The Secretary of Labor, as part of the vocational

19 rehabilitation effort, may assist permanently disabled indi20 viduals in seeking and/or obtaining employment. The Sec21 retary may reimburse an employer (including a Federal

22 employer), who was not the employer at the time of injury

23 and who agrees to employ a disabled beneficiary, for por24 tions of the salary paid by such employer to the reem-
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1 ployed, disabled beneficiary. Any such sums shall be paid

2 from the Employees’ Compensation Fund.’’.

3 (b) The Secretary of Labor is authorized to expand

4 the Federal Employees’ Compensation Act Periodic Roll

5 Management Project to all offices of the Office of Work6 ers’ Compensation Program of the Department of Labor.

7 (c) The provisions of, and amendments made by, sub8 sections (a) and (b) of this section shall be effective on

9 the date of enactment.

10 Subtitle C—Wage Determinations—

11 McNamara-O’Hara Service Con12 tract Act and Davis-Bacon Act

13 SEC. 9201. WAGE DETERMINATIONS.

14 (a) The McNamara-O’Hara Service Contract Act, as

15 amended (41 U.S.C. 351 et seq.) is amended by adding

16 at the end the following new section:

17 ‘‘SEC. 11. To more effectively implement wage deter18 mination procedures, the Secretary of Labor is authorized

19 to develop and implement an electronic data interchange

20 system to request and obtain wage determinations re21 quired under the Act.’’.

22 (b) The Davis-Bacon Act, as amended (41 U.S.C.

23 276a et seq.) is amended by adding at the end the follow24 ing new section:
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1 ‘‘SEC. 8. To more effectively implement wage deter2 mination procedures, the Secretary of Labor is authorized

3 to develop and implement an electronic data interchange

4 system to request and obtain wage determinations re5 quired under the Act.’’.

6 (c) The amendments made by subsections (a) and (b)

7 of this section shall be effective on the date of enactment.

8 Subtitle D—Elimination of Filing

9 Requirement for Plan Descrip10 tions, Summary Plan Descrip11 tions, and Descriptions of Mate12 rial Modifications to a Plan

13 SEC. 9301. ELIMINATION OF FILING REQUIREMENTS.

14 (a) Section 101(b) of the Employee Retirement In15 come Security Act of 1974 (ERISA) (29 U.S.C. 1021(b))

16 is amended by striking paragraphs (1), (2) and (3) and

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

18 (1) and (2), respectively.

19 (b) Section 102 of ERISA (29 U.S.C. 1022) is

20 amended by striking paragraph (a)(2) and redesignating

21 paragraph (a)(1) as subsection (a).

22 (c) Section 104(a)(1) of ERISA (29 U.S.C.

23 1024(a)(1)) is amended to read as follows:

24 ‘‘SEC. 104. (a)(1) The administrator of any employee

25 benefit plan subject to this part shall file with the Sec-
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1 retary the annual report for a plan year within 210 days

2 after the close of such year (or within such time as may

3 be required by regulations promulgated by the Secretary

4 in order to reduce duplicative filing). The Secretary shall

5 make copies of such annual reports available for inspection

6 in the public document room of the Department of Labor.

7 The administrator shall also furnish to the Secretary,

8 upon request, any documents relating to the employee ben9 efit plan including but not limited to the summary plan

10 description, description of material modifications to the

11 plan, bargaining agreement, trust agreement, contract, or

12 other instrument under which the plan is established or

13 operated.’’.

14 (d) Section 104(b) of ERISA (29 U.S.C. 1024(b))

15 is amended by adding at the end the following new para16 graph:

17 ‘‘(5) The Secretary shall, upon written request

18 of any participant or beneficiary of a plan for a copy

19 of any documents described in paragraph (4), make

20 a written request to the plan administrator for cop21 ies of such documents. The plan administrator shall

22 comply with such request from the Secretary. Upon

23 obtaining such copies from the plan administrator,

24 the Secretary shall provide them to the requesting

25 participant or beneficiary. In making a request
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1 under this paragraph to the plan administrator, the

2 Secretary shall not disclose to the plan administrator

3 the identity of the participant or beneficiary. The

4 administrator may make a reasonable charge to

5 cover the cost of furnishing such complete copies

6 consistent with any regulations issued by the Sec7 retary pursuant to paragraph (4). The Secretary

8 may require the participant or beneficiary to reim9 burse the Secretary for such charges before the par10 ticipant receives the requested copies.’’.

11 (e) Section 106(a) of ERISA (29 U.S.C. 1026(a)) is

12 amended by striking ‘‘descriptions,’’.

13 (f) Section 107 of ERISA (29 U.S.C. 1027) is

14 amended by striking ‘‘description or’’.

15 (g) Section 108 of ERISA (29 U.S.C. 1028) is

16 amended by striking ‘‘(B) after publishing or filing the

17 plan description, annual reports,’’ and inserting ‘‘(B) after

18 publishing the plan description, or after publishing or fil19 ing the annual reports,’’.

20 (h) Section 109(b) of ERISA (29 U.S.C. 1029(b))

21 is amended to read as follows:

22 ‘‘(b) The financial statement and opinion required to

23 be prepared by an independent qualified public accountant

24 pursuant to section 103(a)(3)(A) and the actuarial state25 ment required to be prepared by an enrolled actuary pur-
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1 suant to section 103(a)(4)(A) shall not be required to be

2 submitted on forms.’’.

3 (i) Section 502(c) of ERISA is amended by adding

4 at the end the following new paragraph:

5 ‘‘(4) The Secretary may assess a civil penalty

6 against any plan administrator of up to $100 per

7 day from the date of such plan administrator’s fail8 ure or refusal to comply with a request for docu9 ments which such administrator is required to fur10 nish to the Secretary (unless such failure or refusal

11 results from matters reasonably beyond the control

12 of the administrator) pursuant to section 104(b)(5)

13 by mailing the material requested to the address

14 provided by the Secretary within 30 days after such

15 request.’’.

16 (j) EFFECTIVE DATE.—The provisions of this section

17 shall take effect on the date of enactment of this Act.

18 TITLE X—DEPARTMENT OF

19 STATE/UNITED STATES IN20 FORMATION AGENCY

21 SEC. 10001. REDUCTION OF MISSION OPERATING COSTS.

22 The Secretary of State shall take action to reduce

23 costs of providing marine guard and other security at dip24 lomatic missions overseas by a total of $5,700,000 by the

25 end of fiscal year 1999.
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1 SEC. 10002. IMPROVEMENT OF EFFICIENCY OF USIA PUB2 LIC DIPLOMACY ACTIVITIES.

3 The Director of the United States Information Agen4 cy (USIA) shall take action to improve the efficiency of

5 USIA’s public diplomacy activities and save a total of

6 $15,000,000 by the end of fiscal year 1999.

7 TITLE XI—DEPARTMENT OF

8 TRANSPORTATION

9 ΩSubtitle A—Authority to Charge

10 Tuition for Attendance at the

11 U.S. Merchant Marine Academy

12 ΩSEC. 11001. TUITION FOR U.S. MERCHANT MARINE ACAD13 EMY.

14 ΩSection 1303(d) of the Merchant Marine Act, 1936

15 (46 App. U.S.C. 1295b(d)), is amended to read as follows:

16 Ω‘‘(d)(1) Beginning with the class of individuals first

17 entering the Academy in the 1995–1996 academic year,

18 the Secretary shall impose a system of tuition and fees

19 on individuals attending the Academy that shall, in total,

20 equal an amount that is up to one-half the total operating

21 costs of the Academy during the preceding fiscal year. The

22 tuition and fees paid by the Academy’s total cadet enroll23 ment shall be retained by the Secretary to assist in meet24 ing the Academy’s operating expenses.

25 Ω‘‘(2) Beginning with the class of individuals first en26 tering the Academy in the 1995–1996 academic year, the
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1 Secretary is authorized to impose reasonable fees on any

2 cadet at the Academy for all required uniforms and text3 books. The Secretary shall provide to any individual first

4 entering the Academy before the 1995–1996 academic

5 year all required uniforms and textbooks.

6 Ω‘‘(3) The Secretary shall provide to any cadet at the

7 Academy allowances for transportation (including reim8 bursement of traveling expenses) while traveling under or9 ders as a cadet of the Academy.’’.æ

10 Subtitle A—Authority to establish

11 reemployment rights for certain

12 merchant seamen

13 SECTION 11001. SHORT TITLE.

14 This subtitle may be cited as the ‘‘Mer15 chant Seamen Reemployment Rights Act of

16 1993’’.

17 SEC. 11002. REEMPLOYMENT RIGHTS FOR CERTAIN MER18 CHANT SEAMEN.

19 (a) IN GENERAL.—Title III of the Merchant

20 Marine Act, 1936 (46 App. U.S.C. 1131) is

21 amended by inserting after section 301 the fol22 lowing new section:

23 ‘‘SEC. 302. (a) An individual who is cer24 tified by the Secretary of Transportation

25 under subsection (c) shall be entitled to reem-
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1 ployment rights and other benefits substan2 tially equivalent to the rights and benefits

3 provided for by chapter 43 of title 38, United

4 States Code, for any member of a Reserve

5 component of the Armed Forces of the United

6 States who is ordered to active duty.

7 ‘‘(b) An individual may submit an applica8 tion for certification under subsection (c) to

9 the Secretary of Transportation not later than

10 45 days after the date the individual com11 pletes a period of employment described in

12 subsection (c)(1)(A) with respect to which the

13 application is submitted.

14 ‘‘(c) Not later than 20 days after the date

15 the Secretary of Transportation receives from

16 an individual an application for certification

17 under this subsection, the Secretary shall—

18 ‘‘(1) determine whether or not the in19 dividual—

20 ‘‘(A) was employed in the activa21 tion or operation of a vessel—

22 ‘‘(i) in the National Defense

23 Reserve Fleet maintained under

24 section 11 of the Merchant Ship

25 Sales Act of 1946, in a period in
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1 which that vessel was in use or

2 being activated for use under sub3 section (b) of that section;

4 ‘‘(ii) that is requisitioned or

5 purchased under section 902 of

6 this Act; or

7 ‘‘(iii) that is owned, chartered,

8 or controlled by the United States

9 and used by the United States for

10 a war, armed conflict, national

11 emergency, or maritime mobiliza12 tion need (including for training

13 purposes or testing for readiness

14 and suitability for mission per15 formance); and

16 ‘‘(B) during the period of that em17 ployment, possessed a valid license,

18 certificate of registry, or merchant

19 mariner’s document issued under

20 chapter 71 or chapter 73 (as applica21 ble) of title 46, United States Code;

22 and

23 ‘‘(2) if the Secretary makes affirma24 tive determinations under paragraph (1)
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1 (A) and (B), certify that individual under

2 this subsection.

3 ‘‘(d) For purposes of reemployment rights

4 and benefits provided by this section, a cer5 tification under subsection (c) shall be consid6 ered to be the equivalent of a certificate re7 ferred to in clause (1) of section 4301(a) of title

8 38, United States Code.’’.

9 (b) APPLICATION.—The amendment made

10 by subsection (a) shall apply to employment

11 described in section 302(c)(1)(A) of the Mer12 chant Marine Act, 1936, as amended by sub13 section (a), occurring after August 2, 1990.

14 (c) EMPLOYMENT ENDING BEFORE ENACT15 MENT.—Notwithstanding subsection (b) of sec16 tion 302 of the Merchant Marine Act, 1936, as

17 amended by this Act, an individual who, in

18 the period beginning August 2, 1990, and end19 ing on the date of the enactment of this Act,

20 completed a period of employment described

21 in subsection (c)(1)(A) of that section may sub22 mit an application for certification under sub23 section (c) of that section with respect to that

24 employment not later than 45 days after the

25 date of the enactment of this Act.
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1 (d) REGULATIONS.—Not later than 120 days

2 after the date of the enactment of this Act, the

3 Secretary of Transportation shall issue regu4 lations implementing this section.

5 Subtitle B—Reform of the Essential

6 Air Service Program

7 SEC. 11101. REFORM OF ESSENTIAL AIR SERVICE PRO8 GRAM.

9 Section 419 of the Federal Aviation Act of 1958 (49

10 App. U.S.C. 1389) is amended by—

11 (1) revising paragraph (a)(2) to read as follows:

12 (1) in subsection (a) by striking paragraph (2)

13 and inserting the following:

14 ‘‘(2) RESTRICTIONS ON QUALIFICATIONS AS AN

15 ELIGIBLE POINT.—To qualify as an eligible point in

16 the 48 contiguous states, Hawaii, and Puerto Rico

17 for purposes of fiscal year 1995 and thereafter, a

18 point described in paragraph (1) must not require a

19 rate of subsidy per passenger in excess of $200 un20 less such point is more than 210 miles from the near21 est large or medium hub airport and may not be lo22 cated fewer than 70 highway miles from the nearest

23 hub airport or small large or medium hub airport;’’

24 and

25 (2) revising paragraph (l)(2) to read as follows:
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1 (2) in subsection (l) by striking paragraph (2)

2 and inserting the following:

3 ‘‘(2) AMOUNTS AVAILABLE.—There shall be

4 available to the Secretary from the Airport and Air5 way Trust Fund to incur obligations under this sec6 tion—

7 ‘‘(A) $33,423,077 for fiscal year 1994; and

8 ‘‘(B) $25,600,000 per fiscal year for each

9 of fiscal years 1995, 1996, 1997, 1998, and

10 1999.

11 section $33,423,077 per fiscal year for each of fiscal

12 years 1994 through 1999. Such amounts shall remain

13 available until expended. Unobligated balances that

14 remain available as of September 30, 1994, are re15 scinded.’’.

16 Subtitle C—Repeal of Authoriza17 tions for the Airway Science

18 Program, Collegiate Training

19 Initiative, and Air Carrier Main20 tenance Technician Training

21 Facility Grant Program

22 SEC. 11201. AIRWAY SCIENCE PROGRAM.

23 (a) REPEAL.—All authority for—

24 (1) the Secretary of Transportation to enter

25 into grant agreements with universities or colleges
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1 having an airway science curriculum recognized by

2 the Federal Aviation Administration, to conduct

3 demonstration projects in the development, advance4 ment, or expansion of airway science programs; and

5 (2) the Federal Aviation Administration to

6 enter into competitive grant agreements with institu7 tions of higher education having airway science cur8 ricula, and all authorizations to appropriate for such

9 purposes, as enacted under the head, ‘‘Federal Avia10 tion Administration, Facilities and Equipment’’, in

11 the Department of Transportation and Related

12 Agencies Appropriations Acts for fiscal years ending

13 before October 1, 1993;

14 is repealed.

15 (b) LIMITATION.—Subsection (a) shall not affect the

16 authority of the Secretary to enter into grant agreements

17 with universities, colleges, or institutions of higher edu18 cation to obligate funds appropriated for fiscal years ending

19 before October 1, 1993, which have not been rescinded.

20 SEC. 11202. COLLEGIATE TRAINING INITIATIVE.

21 Section 362 of the Department of Transportation and

22 Related Agencies Appropriations Act, 1993 (Public Law

23 102–388), is repealed, except that the Administrator of

24 the Federal Aviation Administration may continue to con25 vert appointment of persons who have been appointed pur-
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1 suant to such section prior to the effective date of this

2 Act from the excepted service to a career conditional or

3 career appointment in the competitive civil service, pursu4 ant to subsection (c) of such section.

5 SEC. 11202. COLLEGIATE TRAINING INITIATIVE.

6 (a) IN GENERAL.—Section 313(d) of the Federal Avia7 tion Act of 1958 (49 U.S.C. App. 1354(d)) is amended—

8 (1) by striking the subsection heading and all

9 that follows through ‘‘The Administrator’’ and insert10 ing the following:

11 ‘‘(d) TRAINING SCHOOLS.—

12 ‘‘(1) IN GENERAL.—The Administrator’’;

13 (2) by moving the text of paragraph (1), as so

14 designated, 2 ems to the right; and

15 (3) by adding at the end the following:

16 ‘‘(2) COLLEGIATE TRAINING INITIATIVE.—

17 ‘‘(A) CONTINUATION.—The Administrator of

18 the Federal Aviation Administration may con19 tinue the Collegiate Training Initiative program,

20 by entering into new agreements, with post-sec21 ondary institutions, as defined by the Adminis22 trator, whereby such institutions, without cost to

23 the Federal Aviation Administration, prepare

24 students for the position of air traffic controller

25 with the Department of Transportation, as de-
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1 fined in section 2109 of title 5, United States

2 Code.

3 ‘‘(B) STANDARDS.—The Administrator may

4 establish standards for the entry of institutions

5 into such program and for their continued par6 ticipation in it.

7 ‘‘(C) APPOINTMENT IN EXCEPTED SERV8 ICE.—The Administrator may appoint persons

9 who have successfully completed a course of

10 training in such program to the position of air

11 traffic controller noncompetitively in the ex12 cepted service, as defined in section 2103 of title

13 5, United States Code. Persons so appointed

14 shall serve at the pleasure of the Administrator,

15 subject to section 7511 of such title (pertaining

16 to adverse actions). However, an appointment

17 under this subparagraph may be converted from

18 one in the excepted service to a career condi19 tional or career appointment in the competitive

20 civil service, as defined in section 2102 of such

21 title when the incumbent achieves full perform22 ance level air traffic controller status, as deter23 mined by the Administrator. The authority con24 ferred by this subparagraph to make new ap25 pointments in the excepted service shall expire at
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1 the end of 5 years from the date of the enactment

2 of this subparagraph; except that the Adminis3 trator may determine to extend such authority

4 for 1 or more successive 1-year periods there5 after.’’.

6 (b) CONFORMING AMENDMENT.—Section 362 of the

7 Department of Transportation and Related Agencies Ap8 propriations Act, 1993 (106 Stat. 1560) is repealed.

9 (c) LIMITATION.—The repeal and the amendments

10 made by this section shall not prohibit the expenditure of

11 funds appropriated for fiscal years ending before October

12 1, 1994.

13 SEC. 11203. AIR CARRIER MAINTENANCE TECHNICIAN

14 TRAINING FACILITY GRANT PROGRAM.

15 Section 119 of Public Law 102–581 (49 U.S.C. app.

16 1354 note) is repealed.

17 Subtitle D—Capital Budgeting

18 SEC. 11301. STATEMENT OF FINDING AND PURPOSES.

19 (a) STATEMENT OF FINDING.—Congress finds that the

20 existing budget obscures the distinctions between capital ac21 tivities and operating activities and between general funds,

22 trust funds, and enterprise funds, so as to hinder identifica23 tion of the resources needed to meet the needs of the Govern24 ment and the investment needs of the economy that are nec25 essary for sustained economic growth.
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1 (b) PURPOSES.—The purposes of this subtitle are as

2 follows:

3 (1) To provide that the unified budget present a

4 capital budget and an operating budget and distin5 guish between general funds, trust funds, and enter6 prise funds, in order to provide better and more rel7 evant information on the revenues, expenses, and fi8 nancing requirements of Government programs and

9 activities.

10 (2) To implement that part of the Report of the

11 National Performance Review that recommends that

12 the Government ensure that there is no budget bias

13 against long-term investments and contains the fol14 lowing statement: ‘‘The budget should recognize the

15 special nature and long-term benefits of investments

16 in fixed assets through a separate capital budget, op17 erating budget, and cash budget. The separate capital

18 budget will explicitly show expenditures on fixed as19 sets, and will help to steer our scarce resources toward

20 the most economical means of acquisition of the most

21 needed assets.’’.

22 SEC. 11302. CAPITAL AND OPERATING BUDGET FOR FISCAL

23 YEARS 1996 AND 1997.

24 (a) UNIFIED BUDGET.—
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1 (1) IN GENERAL.—For fiscal years 1996 and

2 1997, in addition to the budget of the United States

3 to be submitted under existing law, the President

4 shall submit a unified budget of the United States

5 composed of an operating budget and a capital budg6 et.

7 (2) PRESENTATION OF BUDGETS.—Operating

8 and capital budgets shall be presented separately for

9 unified funds, general funds, trust funds, and enter10 prise funds.

11 (b) SPECIAL RULES.—

12 (1) MINIMUM CONTENTS.—Actual, estimated,

13 and proposed amounts shall be presented for unified

14 funds, general funds, trust funds, and enterprise

15 funds, and, at a minimum, shall contain—

16 (A) for the operating budget the following:

17 (i) operating revenues, (ii) operating expenses,

18 (iii) operating surplus/deficit before interfund

19 transfers, (iv) interfund transfers, (v) operating

20 surplus/deficit, and (vi) Federal expenditures fi21 nancing the operating expenses of State and

22 local governments;

23 (B) for the capital budget the following: (i)

24 capital revenues, (ii) capital investments, (iii)

25 capital financing requirements before interfund
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1 transfers, (iv) interfund transfers, and (v) cap2 ital financing requirements; and

3 (C) unified budget financing requirements.

4 (2) DISTINCTION BETWEEN CAPITAL AND OTHER

5 ITEMS.—The capital budget shall represent only the

6 major activities, projects, and programs which sup7 port the acquisition, construction, alteration, and re8 habilitation of capital assets. All other activities,

9 projects, and programs shall be represented in the op10 erating budget.

11 (c) PRESIDENTIAL RESPONSIBILITY.—In addition to

12 the unified budget submitted by the President as required

13 by subsections (a) and (b) of this section, the President shall

14 present information in the form required by subsection

15 (b)(1) for accounts, agencies, and functions, to the extent

16 applicable, the capital investments by State and local gov17 ernments not financed by the Federal Government.

18 (d) DEFINITIONS.—In this section, the following defi19 nitions apply:

20 (1) UNIFIED BUDGET.—The term ‘‘unified budg21 et’’ means a budget in which revenues and expenses

22 for general funds, trust funds, and enterprise funds

23 are consolidated to display totals for the Federal Gov24 ernment as a whole.
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1 (2) TRUST FUNDS.—The term ‘‘trust funds’’

2 means—

3 (A) the Federal Old-Age and Survivors In4 surance Trust Fund,

5 (B) the Federal Hospital Insurance Trust

6 Fund,

7 (C) the Civil Service Retirement and Dis8 ability Fund,

9 (D) the Military Retirement Fund,

10 (E) the Federal Supplementary Medical In11 surance Trust Fund,

12 (F) the Unemployment Trust Fund,

13 (G) the Federal Disability Insurance Trust

14 Fund,

15 (H) the Highway Trust Fund,

16 (I) the Airport and Airway Trust Fund,

17 and

18 (J) such other funds or accounts of the Gov19 ernment that the Director of the Office of Man20 agement and Budget, in consultation with the

21 Comptroller General, determines should be classi22 fied as trust funds in order to fulfill the purpose

23 of this section.

24 (3) ENTERPRISE FUNDS.—The term ‘‘enterprise

25 funds’’ means—
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1 (A) the Postal Service,

2 (B) the Resolution Trust Corporation,

3 (C) the Federal Deposit Insurance Corpora4 tion Fund,

5 (D) the Federal Housing Administration,

6 (E) the Tennessee Valley Authority Fund,

7 (F) the Bonneville Power Administration

8 Fund,

9 (G) the Rural Electrification and Telephone

10 Revolving Loan Fund,

11 (H) the Export-Import Bank of the United

12 States,

13 (I) the Southeastern Power Administration,

14 (J) the Southwestern Power Administra15 tion,

16 (K) the Western Area Power Administra17 tion,

18 (L) the Alaska Power Administration,

19 (M) the Overseas Private Investment Cor20 poration,

21 (N) the St. Lawrence Seaway Development

22 Corporation,

23 (O) the Rural Telephone Bank,

24 (P) the Pension Benefit Guaranty Corpora25 tion, and
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1 (Q) such other funds or accounts of the Gov2 ernment that the Director of the Office of Man3 agement and Budget, in consultation with the

4 Comptroller General, determines should be classi5 fied as enterprise funds in order to fulfill the

6 purpose of this section.

7 (4) GENERAL FUNDS.—The term ‘‘general funds’’

8 includes all accounts of the Government that are not

9 trust funds or enterprise funds.

10 (5) UNIFIED FUNDS.—The term ‘‘unified funds’’

11 means general funds, trust funds, and enterprise

12 funds and represents the unified budget.

13 (6) CAPITAL ASSETS.—The term ‘‘capital assets’’

14 means physical assets and financial assets but does

15 not include consumable inventories.

16 (7) PHYSICAL ASSETS.—The term ‘‘physical as17 sets’’ means tangible assets (other than assets used for

18 national defense or security)—

19 (A) the ownership of which is or will be in

20 the public domain;

21 (B) that produce services or benefits for

22 more than 5 years; and

23 (C) that have an initial cost equal to or

24 more than $100,000.
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1 Such term includes, but is not limited to, roadways

2 and bridges; airports and airway facilities; mass

3 transportation systems; wastewater treatment, water

4 distribution delivery, and related facilities; water re5 source projects; medical facilities; resource recovery

6 facilities; public structures; space and communication

7 facilities; and strategic petroleum reserves and min8 eral stockpiles.

9 (8) FINANCIAL ASSETS.—The term ‘‘financial as10 sets’’ means interests of the Federal Government in,

11 and claims of the Federal Government against, for12 eign governments, States and their political subdivi13 sions, corporations, associations, and individuals and

14 their resources which are represented by a legal in15 strument (such as bonds, debentures, notes, and other

16 securities), less any credit subsidy costs attributable

17 to such financial assets.

18 (9) CREDIT SUBSIDY COSTS.—The term ‘‘credit

19 subsidy costs’’ means the losses incurred by the Fed20 eral Government as a result of its direct and guaran21 teed loans, including such costs as interest and de22 fault.

23 (10) CONSUMABLE INVENTORIES.—The term

24 ‘‘consumable inventories’’ means tangible assets of the

25 Federal Government, including stockpiles, supplies,
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1 and inventories, which typically are consumed within

2 5 years or which have an initial price less than

3 $100,000.

4 (11) OPERATING REVENUES.—The term ‘‘operat5 ing revenues’’ means all receipts of the Federal Gov6 ernment, other than those identified in paragraph

7 (17), including profits and interest earned on finan8 cial assets.

9 (12) OPERATING EXPENSES.—The term ‘‘operat10 ing expenses’’ means all expenses of the Federal Gov11 ernment, other than those identified in paragraph

12 (18), including interest payments on debts, asset con13 sumption charge, and credit subsidy costs.

14 (13) OPERATING SURPLUS/DEFICIT BEFORE

15 INTERFUND TRANSFERS.—The term ‘‘operating sur16 plus/deficit before interfund transfers’’ means the dif17 ference between operating revenues and operating ex18 penses before interfund transfers.

19 (14) INTERFUND TRANSFERS.—The term

20 ‘‘interfund transfers’’ means the flow of revenues be21 tween general and enterprise funds and trust funds

22 accounts that are expenses from the account making

23 the payments and revenues to the account receiving

24 the payments.
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1 (15) OPERATING SURPLUS/DEFICIT.—The term

2 ‘‘operating surplus/deficit’’ means the operating sur3 plus/deficit before interfund transfers plus or minus

4 interfund transfers.

5 (16) ASSET CONSUMPTION CHARGE.—The term

6 ‘‘asset consumption charge’’ means the systematic and

7 rational allocation of the cost—historical, replace8 ment, or current value—of a physical asset (having

9 a useful life of more than 5 years) financed by the ap10 propriation accounts for which the capital budget re11 quired by this section applies.

12 (17) CAPITAL REVENUES.—The term ‘‘capital

13 revenues’’ means receipts of the Federal Government

14 derived from taxes, collections, and receipts dedicated

15 by statute, for the rehabilitation of capital assets

16 which relate to the activities, functions, and programs

17 represented by the capital budget.

18 (18) CAPITAL INVESTMENTS.—The term ‘‘capital

19 investments’’ means (A) expenditures of the Federal

20 Government, including those under grants, contracts,

21 and leases, which are for the acquisition, construction,

22 and rehabilitation of capital assets, and (B) Federal

23 expenditures (including tax expenditures) which are

24 for the acquisition, construction, and rehabilitation of

25 the physical assets of State and local governments.
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1 (19) CAPITAL FINANCING REQUIREMENTS BE2 FORE INTERFUND TRANSFERS.—The term ‘‘capital fi3 nancing requirements before interfund transfers’’

4 means the difference between capital revenues and

5 capital investments before interfund transfers.

6 (20) CAPITAL FINANCING REQUIREMENTS.—The

7 term ‘‘capital financing requirements’’ means financ8 ing requirements before interfund transfers plus or

9 minus interfund transfers.

10 (21) UNIFIED BUDGET FINANCING REQUIRE11 MENTS.—The term ‘‘unified budget financing require12 ments’’ means the total of the operating surplus/defi13 cit and the capital financing requirements.

14 SEC. 11303. UNITED STATES BUDGET FOR FISCAL YEAR 1998

15 AND THEREAFTER.

16 For fiscal year 1998, and each fiscal year thereafter,

17 the President shall submit only 1 budget of the United

18 States and such budget shall be a unified budget which

19 meets the requirements of section 11302.

20 SEC. 11304. REVIEW BY COMPTROLLER GENERAL.

21 The Comptroller General shall review and report to

22 Congress on the implementation of section 11302 as the

23 Comptroller General deems necessary. A review by the

24 Comptroller General may include—
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1 (1) determining whether the actual, estimated,

2 and proposed appropriations, receipts, and invest3 ments presented in the capital budget represent ac4 tivities, functions, and programs which support the

5 acquisition, construction, alteration, and rehabilita6 tion of capital assets;

7 (2) determining whether the classifications made

8 by the Director of the Office of Management and

9 Budget under section 11302(d)(2)(H) further the pur10 poses of section 11302; and

11 (3) evaluating, on an annual basis, the value

12 and usefulness of capital investments in the capital

13 account as set forth in section 11302.

14 Subtitle E—Public Buildings

15 SEC. 11401. PUBLIC BUILDING TRANSACTIONS.

16 Section 3 of the Public Buildings Act of 1959 (40

17 U.S.C. 602) is amended—

18 (1) by striking ‘‘SEC. 3. The Administrator’’ and

19 inserting the following:

20 ‘‘SEC. 3. ACQUISITION OF BUILDINGS.

21 ‘‘(a) AUTHORITY.—The Administrator’’; and

22 (2) by adding at the end the following:

23 ‘‘(b) LEASES.—The Administrator is authorized to

24 enter into contracts for the lease-purchase or lease of any

25 building and its site for periods of not to exceed 30 years.
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1 ‘‘(c) CALCULATION OF TRANSACTIONS.—For purposes

2 of section 1341(a)(1)(B) of title 31, United States Code, the

3 Balanced Budget and Emergency Deficit Control Act of

4 1985, the Congressional Budget Act of 1974, and the Budget

5 Enforcement Act of 1990 and scorekeeping guidelines, the

6 Office of Management and Budget and the Congressional

7 Budget Office shall score any contract entered into by the

8 Administrator under this Act for the purchase, lease-pur9 chase, or lease of any building and its site in the same man10 ner as if the contract was entered into on September 30,

11 1990.’’.

12 TITLE XII—DEPARTMENT OF

13 VETERANS AFFAIRS

14 Subtitle A—Remove Certain Limi15 tations and Restrictions Con16 tained in Veterans Law

17 SEC. 12001. REMOVAL OF CERTAIN LIMITATIONS AND RE18 STRICTIONS.

19 (a) ELIMINATE HOSPITAL AND NURSING HOME BED

20 CAPACITY REQUIREMENTS.—

21 (1) Paragraph (1) of subsection (a) of section

22 8110 of title 38, United States Code, is amended—

23 (A) by striking ‘‘at not more than 125,000

24 and not less than 100,000’’; and
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1 (B) by striking the third and fourth sen2 tences.

3 (2) Subsection (a) of section 8111 of such title

4 is amended to read as follows:

5 ‘‘(a) The Secretary and the Secretary of the Army,

6 the Secretary of the Air Force, and the Secretary of the

7 Navy may enter into agreements and contracts for the mu8 tual use or exchange of use of hospital and domiciliary

9 facilities, and such supplies, equipment, material and

10 other resources as may be needed to operate such facilities

11 properly, except that the Secretary may not enter into an

12 agreement that would in any way subordinate or transfer

13 the operation of the Department to any other agency of

14 the Government.’’.

15 (b) ELIMINATE THE PERSONNEL LEVEL REQUIRE16 MENT FOR THE OFFICE OF INSPECTOR GENERAL.—Sec17 tion 312(b) of title 38, United States Code, is repealed.

18 (c) ELIMINATE REQUIREMENT TO REPORT TO CON19 GRESS AGENCY REORGANIZATIONS.—Sections 510(b)

20 through 510(f) of title 38, United States Code, are re21 pealed.

22 (d) ELIMINATE REQUIREMENT FOR CERTAIN SERV23 ICES IN THE VETERANS HEALTH ADMINISTRATION.—

24 Section 7305 of title 38, United States Code, is amended

25 to read ‘‘The Veterans Health Administration shall in-
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1 clude such professional and auxiliary services as the Sec2 retary may find necessary to carry out the functions of

3 the Administration.’’.

4 (e) ELIMINATE CERTAIN REQUIREMENTS ON THE

5 UNDER SECRETARY FOR HEALTH—

6 (1) Section 7306(a) of title 38, United States

7 Code, is amended to read ‘‘(a) The Office of the

8 Chief Medical Director shall consist of such person9 nel as may be deemed necessary for the purposes of

10 this chapter.’’.

11 (2) Section 7306(b) of title 38, United States

12 Code, is repealed.

13 (3) Section 7306(c) of title 38, United States

14 Code, is amended by changing the second sentence

15 to read ‘‘Such appointments shall be made upon the

16 recommendation of the Chief Medical Director.’’.

17 (4) Sections 7306(c), (d), and (e) of title 38,

18 United States Code, are redesignated as sections

19 7306(b), (c), and (d), respectively.
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1 Subtitle B—Closure of Supply De2 pots and Transfer of Revolving

3 Supply Fund Money

4 SEC. 12101. CLOSURE OF SUPPLY DEPOTS AND TRANSFER

5 OF FUNDS.

6 Notwithstanding the provisions of section 510(b) and

7 8121 of title 38, United States Code, the Secretary of Vet8 erans Affairs shall phase out and close the Department

9 of Veterans Affairs’ Supply Depots, located at Somerville,

10 New Jersey; Hines, Illinois; and Bell, California over two

11 fiscal years, beginning in fiscal year 1994 and ending in

12 fiscal year 1995, and shall transfer from the Department

13 of Veterans Affairs Revolving Supply Fund to the General

14 Fund of the Treasury, $45 million by September 30,

15 1994, and $44 million by September 30, 1995.

16 Subtitle A—Administrative

17 Improvements

18 SEC. 12001. ELIMINATION OF HOSPITAL AND NURSING

19 HOME BED CAPACITY REQUIREMENTS.

20 (a) Section 8110(a)(1) of title 38, United States Code,

21 is amended—

22 (1) by striking ‘‘at not more than 125,000 and

23 not less than 100,000’’; and

24 (2) by striking the third and fourth sentences.
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1 (b) Section 8111(a) of such title is amended by striking

2 out ‘‘result (1)’’ and all that follows through ‘‘maintained

3 or’’.

4 SEC. 12002. ELIMINATION OF REQUIREMENT FOR MINIMUM

5 NUMBER OF PERSONNEL IN THE OFFICE OF

6 INSPECTOR GENERAL.

7 Subsection (b) of section 312 of title 38, United States

8 Code, is amended to read as follows:

9 ‘‘(b) Whenever the Secretary proposes to reduce the au10 thorized number of full-time equivalent employees assigned

11 to the Office of Inspector General, the Secretary shall submit

12 to the Committees on Veterans’ Affairs of the Senate and

13 House of Representatives a report providing notice of the

14 proposed reduction and a detailed explanation for the pro15 posed reduction. No action to carry out the proposed reduc16 tion may be taken after the submission of such report until

17 the end of a 45-day period of continuous session of Congress

18 (determined in the same manner as specified in the last

19 sentence of section 510(b) of this title) following the date

20 of the submission of the report.’’.

21 SEC. 12003. MODIFICATION OF ADMINISTRATIVE REORGA22 NIZATION AUTHORITY.

23 (a) MODIFICATION OF REQUIREMENT TO REPORT TO

24 CONGRESS.—Section 510 of title 38, United States Code,
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1 is amended by striking out ‘‘90-day’’ both places it appears

2 in subsection (b) and inserting in lieu thereof ‘‘45-day’’.

3 (b) AUTHORITY TO REORGANIZE OFFICES IN EVENT

4 OF EMERGENCY.—Such section is further amended by strik5 ing out subsection (d) and inserting the following:

6 ‘‘(d)(1) The limitation in subsection (b) does not apply

7 with respect to an administrative reorganization at a medi8 cal facility if the Secretary determines that the reorganiza9 tion is necessary to respond to an emergency situation at

10 that facility. The Secretary may determine that there is an

11 emergency situation at a medical facility for purposes of

12 this subsection only in a case in which there would be an

13 immediate danger to patients and employees at that facility

14 without the reorganization. In the case of a facility at which

15 officials of the Department are considering whether to im16 plement an administrative reorganization before the event

17 or occurrence which leads to an initial finding that such

18 an emergency exists, the Secretary may not make such a

19 determination.

20 ‘‘(2) Whenever the Secretary determines under para21 graph (1) that it is necessary to carry out an administra22 tive reorganization at a medical facility without regard to

23 the limitation in subsection (b), the Secretary shall submit

24 a report on that determination to the Committees on Veter25 ans’ Affairs of the Senate and House of Representatives.
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1 The report shall provide the same information as is pro2 vided in a detailed plan and justification in the case of

3 an administrative reorganization subject to subsection (b).

4 The Secretary shall include in the report an explanation

5 of the alternatives to the proposed administrative reorga6 nization that were considered and each factor that was con7 sidered in the decision to reject each such alternative.’’.

8 SEC. 12004. ELIMINATION OF REQUIREMENT FOR CERTAIN

9 SERVICES IN THE VETERANS HEALTH ADMIN10 ISTRATION.

11 (a) Section 7305 of title 38, United States Code, is

12 repealed.

13 (b) The table of sections at the beginning of chapter

14 73 of such title is amended by striking the item relating

15 to section 7305.

16 SEC. 12005. MODIFICATION OF PHYSICIAN REQUIREMENT

17 FOR CERTAIN SENIOR VETERANS HEALTH AD18 MINISTRATION OFFICIALS.

19 (a) UNDER SECRETARY.—Section 305 of title 38,

20 United States Code, is amended—

21 (1) in subsection (a)(2), by striking out ‘‘shall be

22 a doctor of medicine and shall be’’ and inserting in

23 lieu thereof ‘‘shall (except as provided in subsection

24 (d)(1)) be a doctor of medicine. The Under Secretary

25 shall be’’;
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1 (2) in subsection (d)—

2 (A) by adding at the end of paragraph (1)

3 the following: ‘‘If at the time such a commission

4 is established both the position of Deputy Under

5 Secretary for Health and the position of Associ6 ate Deputy Under Secretary for Health are held

7 by individuals who are doctors of medicine, the

8 individual appointed by the President as Under

9 Secretary for Health may be someone who is not

10 a doctor of medicine. In any case, the Secretary

11 shall develop, and shall furnish to the commis12 sion, specific criteria which the commission shall

13 use in evaluating individuals for recommenda14 tions under paragraph (3).’’;

15 (B) by redesignating paragraph (4) as

16 paragraph (5);

17 (C) by inserting after the first sentence of

18 paragraph (3) the following: ‘‘In a case in

19 which, pursuant to paragraph (1), the individ20 ual to be appointed as Under Secretary does not

21 have to be a doctor of medicine, the commission

22 may make recommendations without regard to

23 the requirement in subsection (a)(2)(A) that the

24 Under Secretary be appointed on the basis of

25 demonstrated ability in the medical profession,
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1 but in such a case the commission shall accord

2 a priority to the selection of a doctor of medicine

3 over an individual who is not a doctor of medi4 cine.’’; and

5 (D) by designating the last two sentences of

6 paragraph (3) as paragraph (4).

7 (b) DEPUTY AND ASSOCIATE DEPUTY UNDER SEC8 RETARY.—Section 7306 of such title is amended—

9 (1) in subsection (a)—

10 (A) by striking out ‘‘of the following:’’ in

11 the matter preceding paragraph (1) and insert12 ing in lieu thereof ‘‘such personnel as may be

13 considered necessary for the purposes of this

14 chapter. In appointing persons to positions in

15 the Office, the Under Secretary shall consider the

16 different types of health care services provided to

17 veterans by the Veterans Health Administration

18 and shall seek to ensure that appointments in the

19 Office are made in such a manner that the Office

20 is staffed so as to provide the Under Secretary

21 with appropriate expertise in those services. The

22 Office shall include the following:’’;

23 (B) by inserting ‘‘(except as provided in

24 subsection (c))’’ in paragraphs (1) and (2) after

25 ‘‘and who shall’’;
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1 (C) by striking out each paragraph after

2 paragraph (2);

3 (2) by striking out subsection (b);

4 (3) by redesignating subsection (c) as subsection

5 (b) and striking out ‘‘In the case of’’ in the second

6 sentence and all that follows through ‘‘such appoint7 ments’’ and inserting in lieu thereof ‘‘Such appoint8 ments’’; and

9 (4) by inserting after subsection (b), as so redes10 ignated, the following new subsection (c):

11 ‘‘(c)(1) If at the time of the appointment of the Deputy

12 Under Secretary for Health under subsection (a)(1), both

13 the position of Under Secretary for Health and the position

14 of Associate Deputy Under Secretary for Health are held

15 by individuals who are doctors of medicine, the individual

16 appointed as Deputy Under Secretary for Health may be

17 someone who is not a doctor of medicine.

18 ‘‘(2) If at the time of the appointment of the Associate

19 Deputy Under Secretary for Health under subsection (a)(2),

20 both the position of Under Secretary for Health and the

21 position of Deputy Under Secretary for Health are held by

22 individuals who are doctors of medicine, the individual ap23 pointed as Associate Deputy Under Secretary for Health

24 may be someone who is not a doctor of medicine.’’.
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1 SEC. 12006. USE OF FUNDS RECOVERED FROM THIRD PAR2 TIES.

3 (a) AUTHORIZED USES.—Section 1729(g) of title 38,

4 United States Code, is amended by adding at the end of

5 paragraph (3) the following new subparagraph:

6 ‘‘(C) Payments for (i) the purchase of needed

7 medical equipment, and (ii) such other purposes as

8 may be specifically authorized by law.’’.

9 (b) AVAILABILITY OF FUNDS.—Such section is further

10 amended by striking out paragraph (4) and inserting the

11 following:

12 ‘‘(4)(A) Not later than December 1 of each year, there

13 shall be set aside within the Fund a reserve to be used for

14 the purposes described in paragraph (3)(C). The amount

15 placed into the reserve each year shall be determined under

16 subparagraph (B). No funds may be obligated under para17 graph (3)(C) in excess of the funds in the reserve. The re18 serve shall remain available for obligation until expended.

19 ‘‘(B)(i) On December 1, 1993, the amount set aside

20 for the reserve under subparagraph (A) shall be the amount

21 by which—

22 ‘‘(I) the unobligated balance remaining in the

23 Fund at the close of business on September 30, 1993,

24 minus any part of such balance that the Secretary de25 termines is necessary to defray, the expenses, pay26 ments, and costs described in paragraph (3), exceeds
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1 ‘‘(II) $538,600,000.

2 ‘‘(ii) On December 1, 1994, the amount set aside for

3 the reserve under subparagraph (A) shall be the amount by

4 which—

5 ‘‘(I) the unobligated balance remaining in the

6 Fund at the close of business on September 30, 1994,

7 minus any part of such balance that the Secretary de8 termines is necessary to defray, the expenses, pay9 ments, and costs described in paragraph (3), exceeds

10 ‘‘(II) $590,500,000.

11 ‘‘(iii) On December 1, 1995, the amount set aside for

12 the reserve under subparagraph (A) shall be the amount by

13 which—

14 ‘‘(I) the unobligated balance remaining in the

15 Fund at the close of business on September 30, 1995,

16 minus any part of such balance that the Secretary de17 termines is necessary to defray, the expenses, pay18 ments, and costs described in paragraph (3), exceeds

19 ‘‘(II) $646,000,000.

20 ‘‘(iv) On December 1, 1996, the amount set aside for

21 the reserve under subparagraph (A) shall be the amount by

22 which—

23 ‘‘(I) the unobligated balance remaining in the

24 Fund at the close of business on September 30, 1996,

25 minus any part of such balance that the Secretary de-
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1 termines is necessary to defray, the expenses, pay2 ments, and costs described in paragraph (3), exceeds

3 ‘‘(II) $698,100,000.

4 ‘‘(v) On December 1, 1997, the amount set aside for

5 the reserve under subparagraph (A) shall be the amount by

6 which—

7 ‘‘(I) the unobligated balance remaining in the

8 Fund at the close of business on September 30, 1997,

9 minus any part of such balance that the Secretary de10 termines is necessary to defray, the expenses, pay11 ments, and costs described in paragraph (3), exceeds

12 ‘‘(II) $753,500,000.

13 ‘‘(C) If the amount to be set aside for the reserve for

14 any year, as calculated under subparagraph (B), is less

15 than zero, the amount added to the reserve for that year

16 shall be zero.

17 ‘‘(5) Not later than January 1 of each year, there shall

18 be deposited into the Treasury as miscellaneous receipts an

19 amount equal to the amount of the unobligated balance re20 maining in the Fund at the close of business on September

21 30 of the preceding year minus any part of such balance

22 that the Secretary determines is necessary in order to enable

23 the Secretary to defray, during the fiscal year in which the

24 deposit is made, the expenses, payments, and costs described
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1 in paragraph (3), and the amount in the reserve described

2 in paragraph (4).

3 ‘‘(6) The Secretary shall prescribe regulations for the

4 allocation of amounts in the reserve under paragraph (4)

5 to the medical centers of the Department for the purposes

6 stated in paragraph (3)(C). Those regulations shall be de7 signed to provide incentives to directors of medical centers

8 to increase the recoveries and collections under this section

9 by requiring that 20 percent of those amounts be made

10 available each year directly to the medical centers at which

11 such recoveries and collections have been at above average

12 levels. The remaining 80 percent of those funds shall be allo13 cated as the Secretary considers appropriate.’’.

14 Subtitle B—Closure of Certain

15 Facilities

16 SEC. 12101. CLOSURE OF SUPPLY DEPOTS.

17 (a) IN GENERAL.—The Secretary of Veterans Affairs

18 shall close the Department of Veterans Affairs’ supply de19 pots specified in subsection (b).

20 (b) COVERED DEPOTS.—Subsection (a) applies to the

21 supply depots of the Department of Veterans Affairs at the

22 following locations:

23 (1) Somerville, New Jersey.

24 (2) Hines, Illinois.

25 (3) Bell, California.
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1 (c) DEADLINE.—The Secretary shall complete the ac2 tions required by subsection (a) not later than September

3 30, 1995.

4 SEC. 12102. WAIVER OF OTHER PROVISIONS.

5 Sections 510(b) and 8121 of title 38, United States

6 Code, do not apply to the actions required under this sub7 title.

8 Subtitle C—Provision of Informa9 tion From the Medicare and

10 Medicaid Coverage Data Bank

11 to the Department of Veterans

12 Affairs

13 SEC. 12201. PROVISION OF DATA BANK INFORMATION TO

14 DEPARTMENT OF VETERANS AFFAIRS.

15 (a) ADDITIONAL PURPOSE OF DATA BANK.—

16 (1) The heading to section 1144 of the Social

17 Security Act is amended by striking ‘‘MEDICARE

18 AND MEDICAID’’ and inserting ‘‘HEALTH CARE’’.

19 (2) Subsection (a) of that section is amended—

20 (A) in the matter preceding paragraph (1),

21 by striking ‘‘Medicare and Medicaid’’ and in22 serting ‘‘Health Care’’;

23 (B) by striking ‘‘and’’ at the end of para24 graph (1);
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1 (C) by substituting ‘‘, and’’ for the period

2 at the end of paragraph (2); and

3 (D) by adding at the end the following:

4 ‘‘(3) assist in the identification of, and the col5 lection from, third parties responsible for payment

6 for health care items and services furnished to veter7 ans under chapter 17 of title 38, United States

8 Code.’’.

9 (b) DISCLOSURE OF DATA BANK INFORMATION TO

10 SECRETARY OF VETERANS AFFAIRS.—Subsection

11 (b)(2)(B) of that section is amended by inserting ‘‘to the

12 Secretary of Veterans Affairs and’’ after ‘‘Data Bank’’.

13 Subtitle D—Veterans’ Appeals

14 Improvement Act of 1993

15 SEC. 12301. SHORT TITLE; REFERENCES TO TITLE 38, UNIT16 ED STATES CODE.

17 (a) SHORT TITLE.—This subtitle may be cited as the

18 ‘‘Veterans’ Appeals Improvement Act of 1993’’.

19 (b) REFERENCES.—Except as otherwise expressly

20 provided, whenever in this subtitle an amendment is ex21 pressed in terms of an amendment to a section or other

22 provision, the reference shall be considered to be made to

23 a section or other provision of title 38, United States

24 Code.
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1 SEC. 12302. COMPOSITION OF THE BOARD OF VETERANS’

2 APPEALS.

3 (a) BOARD MEMBERS AND PERSONNEL.—Section

4 7101(a) is amended to read as follows:

5 ‘‘(a)(1) There is in the Department a Board of Veter6 ans’ Appeals (hereafter in this chapter referred to as the

7 ‘Board’). The Board is under the administrative control

8 and supervision of a Chairman directly responsible to the

9 Secretary.

10 ‘‘(2) The members of the Board shall be the Chair11 man, a Vice Chairman, such number of Deputy Vice

12 Chairmen as the Chairman may designate under sub13 section (b)(4), and such number of other members as may

14 be found necessary to conduct hearings and consider and

15 dispose of matters properly before the Board in a timely

16 manner. The Board shall have such other professional, ad17 ministrative, clerical, and stenographical personnel as are

18 necessary to conduct hearings and consider and dispose

19 of matters properly before the Board in a timely man20 ner.’’.

21 (b) APPOINTMENT AND REMOVAL OF BOARD MEM22 BERS.—Section 7101(b) is amended—

23 (1) in paragraph (2)(A) by striking ‘‘other

24 members of the Board (including the Vice Chair25 man)’’ and inserting ‘‘Board members other than

26 the Chairman’’;
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1 (2) in paragraph (2)(B) by striking ‘‘para2 graph’’ and inserting ‘‘subparagraph’’; and

3 (3) by striking paragraph (4) and inserting the

4 following:

5 ‘‘(4) The Secretary shall designate one Board

6 member as Vice Chairman based upon recommenda7 tions of the Chairman. The Chairman may designate

8 one or more Board members as Deputy Vice Chair9 men. The Vice Chairman and any Deputy Vice

10 Chairman shall perform such functions as the Chair11 man may specify. The Vice Chairman shall serve as

12 Vice Chairman at the pleasure of the Secretary. Any

13 Deputy Vice Chairman shall serve as Deputy Vice

14 Chairman at the pleasure of the Chairman.’’.

15 (c) ACTING BOARD MEMBERS.—SECTION 7101(C) IS

16 AMENDED BY—

17 (1) striking paragraph (1) and inserting the fol18 lowing:

19 ‘‘(1) The Chairman may from time to time des20 ignate one or more employees of the Department to

21 serve as acting Board members.’’;

22 (2) striking paragraph (2) in its entirety; and

23 (3) redesignating paragraph (3) as paragraph

24 (2) and in that paragraph by—
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1 (A) striking ‘‘temporary Board members

2 designated under this subsection and the num3 ber of’’; and

4 (B) striking ‘‘section 7102(a)(2)(A)(ii) of

5 this title’’ and inserting in lieu thereof ‘‘para6 graph (1)’’.

7 (d) CHAIRMAN’S ANNUAL REPORT.—Section

8 7101(d)(2) is amended—

9 (1) in subparagraph (D) by striking ‘‘year;

10 and’’ and inserting ‘‘year;’’;

11 (2) in subparagraph (E) by striking ‘‘year.’’

12 and inserting ‘‘year; and’’; and

13 (3) by adding at the end of paragraph (2) the

14 following new subparagraph:

15 ‘‘(F) the names of those employees of the De16 partment designated under subsection (c)(1) to serve

17 as acting Board members during that year and the

18 number of cases each such acting Board member

19 participated in during that year.’’.

20 (e) CONFORMING AMENDMENTS.—

21 (1) Section 7101(d)(3)(B) is amended by strik22 ing ‘‘section 7103(d)’’ and inserting ‘‘section

23 7101(b)’’.

24 (2) Section 7101(e) is amended by striking ‘‘a

25 temporary or’’ and inserting ‘‘an’’.
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1 SEC. 12303. ASSIGNMENT OF MATTERS BEFORE THE

2 BOARD.

3 Section 7102 is amended to read as follows:

4 ‘‘§ 7102. Assignment of matters before the Board

5 ‘‘The Chairman may determine any matter before the

6 Board, or rule on any motion in connection therewith, or

7 may assign any such matter or motion to any other Board

8 member or a panel of members for determination. Any

9 such assignment by the Chairman may not be reviewed

10 by any other official or by any court, whether by an action

11 in the nature of mandamus or otherwise.’’.

12 SEC. 12304. DETERMINATIONS BY THE BOARD.

13 (a) IN GENERAL.—Section 7103(a) is amended to

14 read as follows:

15 ‘‘(a) When the Chairman retains a matter or submits

16 it to another Board member or a panel of members for

17 determination in accordance with section 7102 of this

18 title, or to an expanded panel of Board members in ac19 cordance with subsection (b) of this section, the Chairman,

20 other member, or panel of members may:

21 ‘‘(1) Issue an order dismissing any appeal, in

22 whole or in part, which fails to allege specific error

23 of fact or law in the determination being appealed

24 or in which the determination being appealed has be25 come moot. Each order of dismissal shall include a

26 written statement of the Board’s findings and con-
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1 clusions, and the reasons or bases for those findings

2 and conclusions, in support of the dismissal.

3 ‘‘(2) Issue an order remanding the case, in

4 whole or in part, to the agency of original jurisdic5 tion for such additional development as the Chair6 man, other member, or panel of members may con7 sider necessary for proper disposition of the case.

8 ‘‘(3) Render a written decision with respect to

9 any issues not dismissed or remanded, which deci10 sion shall constitute the Board’s final disposition of

11 the issues so decided. Such decisions shall be based

12 on the entire record in the proceeding, upon consid13 eration of all evidence and material of record, and

14 upon applicable provisions of law and regulation.

15 The Board shall be bound in its decisions, including

16 allowances made under the provisions of subsection

17 (d) of this section, by the regulations of the Depart18 ment, the instructions of the Secretary, and the

19 precedent opinions of the chief legal officer of the

20 Department. Each decision of a Board member or a

21 panel of members shall include—

22 ‘‘(A) a written statement of the Board’s

23 findings and conclusions, and the reasons or

24 bases for those findings and conclusions, on all
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1 material issues of fact and law presented on the

2 record; and

3 ‘‘(B) an order granting appropriate relief

4 or denying relief.

5 Decisions by a panel of Board members, except as other6 wise provided in subsection (b), shall be made by a major7 ity of the members of the panel.’’.

8 (b) RECONSIDERATION.—Section 7103(b) is amend9 ed to read as follows:

10 ‘‘(b) The decision of a Board member or a panel of

11 members is final, unless the Chairman orders reconsider12 ation of the case, and a claim disallowed by the Board

13 may not thereafter be reopened or allowed except as pro14 vided in section 5108 of this title and subsection (d) of

15 this section. If the Chairman orders reconsideration in a

16 case, the case shall be considered upon reconsideration by

17 a panel of members other than the Chairman if one mem18 ber originally decided the case or by an expanded panel

19 of members other than the Chairman if a panel originally

20 decided the case. When a panel considers a case after a

21 motion for reconsideration has been granted, the decision

22 of a majority of the panel members shall constitute the

23 final decision of the Board, except as provided in sub24 section (d). If the expanded panel cannot reach a majority

25 decision, the Chairman may either assign additional mem-
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1 bers other than the Chairman to the panel or vote with

2 the members of the expanded panel so as to create a ma3 jority decision. Either the expanded panel majority or the

4 majority made with the vote of the Chairman shall con5 stitute the final decision of the Board, except as provided

6 in subsection (d).’’.

7 (c) ADMINISTRATIVE ALLOWANCE; NOTICE OF DE8 TERMINATION.—Section 7103 is further amended by add9 ing at the end of the following:

10 ‘‘(d) Whenever a Board member other than the

11 Chairman or Vice Chairman is of the opinion that a prior,

12 otherwise final denial of a claim should be revised or

13 amended to allow the claim in whole or in part, based on

14 a difference of opinion as to how the evidence should be

15 evaluated rather than on any error in the prior decision,

16 the Board member shall recommend such allowance to the

17 Chairman or Vice Chairman. The Chairman or Vice

18 Chairman, whether upon the recommendation of any other

19 Board member or upon the Chairman’s or Vice Chair20 man’s own motion, if of the opinion that a prior, otherwise

21 final denial of a claim should be revised or amended to

22 allow the claim in whole or in part, based on a difference

23 of opinion as to how the evidence should be evaluated rath24 er than on any error in the prior decision, shall approve

25 the award of any benefit, or any increase therein, on the
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1 basis of such difference of opinion. The discretionary exer2 cise of the authority provided to the Chairman and Vice

3 Chairman under this subsection shall not be reviewed by

4 any other official or by any court, whether by an action

5 in the nature of mandamus or otherwise.

6 ‘‘(e) After reaching a determination under any of the

7 provisions of this section, the Board shall promptly mail

8 a copy of its written decision to the appellant and the ap9 pellant’s authorized representative (if any) at the last

10 known address of the appellant and at the last known ad11 dress of such representative (if any), respectively.’’.

12 SEC. 12305. JURISDICTION OF THE BOARD.

13 Section 7104 is amended by—

14 (a) striking the subsection designation ‘‘(a)’’;

15 (b) striking ‘‘211(a)’’ and inserting ‘‘511(a)’’;

16 and

17 (c) striking all after ‘‘made by the Board.’’.

18 SEC. 12306. APPELLATE PROCEDURE.

19 Section 7105(d) is amended by striking paragraph

20 (5).

21 SEC. 12307. MEDICAL OPINIONS.

22 Section 7109 is amended to read as follows:

23 ‘‘§ 7109. Medical opinions

24 ‘‘(a) A Board member or a panel of members before

25 whom a matter which involves a medical question is pend-
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1 ing may, in the discretion of the member or panel, request

2 an opinion on that medical question from—

3 ‘‘(1) an employee of the Board who is licensed

4 to practice medicine in any State;

5 ‘‘(2) an employee of the Veterans Health Ad6 ministration who is licensed to practice medicine in

7 any State and who has been designated by the

8 Under Secretary for Health to provide such an opin9 ion; or

10 ‘‘(3) an employee of any Federal department or

11 agency who is licensed to practice medicine in any

12 State and who has been designated, in accordance

13 with arrangements made by the Secretary with the

14 head of any such Federal department or agency, to

15 provide such an opinion.

16 ‘‘(b) When, in the judgment of a Board member or

17 a panel of members assigned a matter for determination

18 in accordance with section 7102 of this title, the medical

19 complexity or controversy involved in that matter warrants

20 expert medical opinion in addition to, or in lieu of, that

21 available within the Department or within another Federal

22 department or agency, the Board may secure an advisory

23 medical opinion from one or more independent medical ex24 perts who are not employees of the Department or of an25 other Federal department or agency. The Secretary shall
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1 make necessary arrangements with recognized medical

2 schools, universities, or clinics to furnish such advisory

3 medical opinions at the request of the Chairman. Any such

4 arrangement shall provide that the actual selection of the

5 expert or experts to give the advisory opinion in an individ6 ual case shall be made by an appropriate official of such

7 institution. For purposes of this section, an employee of

8 a medical school, university, or clinic shall not be consid9 ered an employee of the Department or another Federal

10 department or agency just because the medical school, uni11 versity, or clinic receives grants from, or provides contract

12 services to, the Department or another Federal depart13 ment or agency.

14 ‘‘(c) Any opinion provided under this section shall be

15 in writing and made a part of the record. The Board shall

16 notify a claimant that an advisory medical opinion has

17 been requested under this section with respect to the

18 claimant’s case and shall mail to the claimant and the

19 claimant’s authorized representative (if any) at the last

20 known address of the claimant and at the last known ad21 dress of such representative (if any) a copy of such opinion

22 when the Board receives it. An opportunity for response

23 by or on behalf of the claimant shall be provided following

24 the mailing of the copy (or copies) of such advisory medi25 cal opinion.’’.
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1 SEC. 12308. HEARINGS.

2 Section 7110 is amended to read as follows:

3 ‘‘§ 7110. Hearings

4 ‘‘(a) The Board shall decide any appeal only after af5 fording the appellant an opportunity for a hearing.

6 ‘‘(b) A hearing docket shall be maintained and formal

7 recorded hearings shall be held by such member or mem8 bers of the Board as the Chairman may designate. Such

9 member or members designated by the Chairman to con10 duct the hearing will participate in making the final deter11 mination in the claim.

12 ‘‘(c) An appellant may request a hearing before the

13 Board at either its principal location or a regional office

14 of the Department. Any hearing held at a regional office

15 of the Department shall be scheduled for hearing in the

16 order in which the requests for hearing in that area are

17 received by the Department at the place specified by the

18 Department for the filing of requests for such hearings.

19 ‘‘(d) At the request of the Chairman, the Secretary

20 may provide suitable facilities and equipment to the Board

21 or other components of the Department to enable an ap22 pellant located at a facility within the area served by a

23 regional office to participate, through voice transmission,

24 or picture and voice transmission, by electronic or other

25 means, in a hearing with a Board member or members

26 sitting at the Board’s principal location. When such facili-
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1 ties and equipment are available, the Chairman may, at

2 his or her discretion, afford the appellant an opportunity

3 to participate in a hearing before the Board through the

4 use of such facilities and equipment in lieu of a hearing

5 held by personally appearing before a Board member or

6 members as provided in subsection (c).’’.

7 SEC. 12309. TABLE OF CONTENTS.

8 The table of contents at the beginning of chapter 71

9 is amended by—

10 (1) striking ‘‘7102. Assignment of members of

11 Board.’’ and inserting ‘‘7102. Assignment of appel12 late matters.’’;

13 (2) striking ‘‘7109. Independent medical opin14 ions.’’ and inserting ‘‘7109. Medical opinions.’’; and

15 (3) striking ‘‘7110. Traveling sections.’’ and in16 serting ‘‘7110. Hearings.’’.

17 SEC. 12310. EFFECTIVE DATES OF AWARDS BASED ON DIF18 FERENCE OF OPINION.

19 Section 5110 is amended by adding at the end the

20 following new subsection:

21 ‘‘(o) The effective date of the award of any benefit,

22 or any increase therein, pursuant to section 7103(d) of

23 this title on the basis of a difference of opinion shall be—

24 ‘‘(1) if the award resulted from review initiated

25 by an application to reopen the claim for the benefit
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1 in question under the provision of section 5108 of

2 this title, fixed in accordance with the facts found

3 but shall not be earlier than the date the Depart4 ment of Veterans Affairs received such application;

5 or

6 ‘‘(2) if the award resulted from review of the

7 final determination undertaken by the Department

8 of Veterans Affairs solely on its own initiative, the

9 date the Chairman or Vice Chairman of the Board

10 of Veterans’ Appeals approved the award.’’.

11 Subtitle D—Veterans’ Appeals

12 Improvements

13 SEC. 12301. BOARD OF VETERANS’ APPEALS.

14 (a) BOARD MEMBERS AND PERSONNEL.—Section

15 7101(a) of title 38, United States Code, is amended to read

16 as follows:

17 ‘‘(a)(1) There is in the Department a Board of Veter18 ans’ Appeals (hereinafter in this chapter referred to as the

19 ‘Board’). The Board is under the administrative control

20 and supervision of a Chairman directly responsible to the

21 Secretary.

22 ‘‘(2) The members of the Board shall be the Chairman,

23 a Vice Chairman, such number of Deputy Vice Chairmen

24 as the Chairman may designate under subsection (b)(4),

25 and such number of other members as may be found nec-
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1 essary to conduct hearings and consider and dispose of mat2 ters properly before the Board in a timely manner. The

3 Board shall have such other professional, administrative,

4 clerical, and stenographic personnel as are necessary to con5 duct hearings and consider and dispose of matters properly

6 before the Board in a timely manner.’’.

7 (b) ETHICAL AND LEGAL LIMITATIONS ON CHAIR8 MAN.—Section 7101(b)(1) of such title is amended by in9 serting after the first sentence the following: ‘‘The Chairman

10 shall be subject to the same ethical and legal limitations

11 and restrictions concerning involvement in partisan politi12 cal activities as apply to judges of the United States Court

13 of Veterans Appeals.’’.

14 (c) APPOINTMENT AND REMOVAL OF BOARD MEM15 BERS.—Section 7101(b) of such title is further amended—

16 (1) in paragraph (2)(A) by striking ‘‘other mem17 bers of the Board (including the Vice Chairman)’’ and

18 inserting ‘‘Board members other than the Chairman’’;

19 (2) in paragraph (2)(B) by striking ‘‘para20 graph’’ and inserting ‘‘subparagraph’’; and

21 (3) by striking paragraph (4) and inserting the

22 following:

23 ‘‘(4) The Secretary shall designate one Board

24 member as Vice Chairman based upon recommenda25 tions of the Chairman. The Chairman may designate
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1 one or more Board members as Deputy Vice Chair2 men. The Vice Chairman and any Deputy Vice

3 Chairman shall perform such functions as the Chair4 man may specify. The Vice Chairman shall serve as

5 Vice Chairman at the pleasure of the Secretary. Any

6 Deputy Vice Chairman shall serve as Deputy Vice

7 Chairman at the pleasure of the Chairman.’’.

8 (d) ACTING BOARD MEMBERS.—Section 7101(c) of

9 such title is amended—

10 (1) by striking paragraph (1) and inserting the

11 following:

12 ‘‘(1) The Chairman may from time to time des13 ignate one or more employees of the Department to

14 serve as acting Board members.’’;

15 (2) by striking paragraph (2); and

16 (3) by redesignating paragraph (3) as para17 graph (2) and in that paragraph by—

18 (A) striking ‘‘temporary Board members

19 designated under this subsection and the number

20 of’’; and

21 (B) striking ‘‘section 7102(a)(2)(A)(ii) of

22 this title’’ and inserting ‘‘paragraph (1)’’.

23 (e) CHAIRMAN’S ANNUAL REPORT.—Section

24 7101(d)(2) of such title is amended—
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1 (1) by striking out ‘‘and’’ at the end of subpara2 graph (D);

3 (2) by striking out the period at the end of sub4 paragraph (E) and inserting in lieu thereof ‘‘; and’’;

5 and

6 (3) by adding at the end the following new sub7 paragraph:

8 ‘‘(F) the names of those employees of the Depart9 ment designated under subsection (c)(1) to serve as

10 acting Board members during that year and the num11 ber of cases each such acting Board member partici12 pated in during that year.’’.

13 (e) CONFORMING AMENDMENTS.—Section 7101 of such

14 title is further amended—

15 (1) in subsection (d)(3)(B), by striking ‘‘section

16 7103(d)’’ and inserting ‘‘section 7101(a)(2)’’; and

17 (2) in subsection (e), by striking ‘‘a temporary

18 or’’ and inserting ‘‘an’’

19 SEC. 12302. DECISIONS BY THE BOARD.

20 (a) ACTION BY BVA THROUGH SECTIONS.—Sections

21 7102 and 7103 of title 38, United States Code, are amended

22 to read as follows:

23 ‘‘§ 7102. Decisions by the Board

24 ‘‘A proceeding instituted before the Board shall be as25 signed to an individual member or a panel of members of
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1 the Board (other than the Chairman). A member or panel

2 of members who are assigned a proceeding shall render a

3 decision thereon, including any motion filed in connection

4 therewith. The member or panel of members shall make a

5 report under section 7104(d) of this title on any such deter6 mination, which report shall constitute the Board’s final

7 disposition of the proceeding. Decisions by a panel shall be

8 made by a majority of the members of the panel.

9 ‘‘§ 7103. Reconsideration; correction of obvious errors

10 ‘‘(a) The decision of a member or panel of the Board

11 under section 7102 of this title is final unless the Chairman

12 orders reconsideration of the case. Such an order may be

13 made on the Chairman’s initiative or upon motion of the

14 claimant.

15 ‘‘(b)(1) If the Chairman orders reconsideration in a

16 case decided by a single member, the matter shall be referred

17 to a panel of not less than three Board members, not includ18 ing the member who rendered the initial decision, which

19 shall render its decision after reviewing the entire record

20 before the Board. Such decisions shall be made by a major21 ity vote of the members of the panel and shall constitute

22 the final decision of the Board.

23 ‘‘(2) If the Chairman orders reconsideration in a case

24 decided by a panel of members, the matter shall be referred

25 to an enlarged panel, not including the members of the
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1 panel which rendered the initial decision, which shall

2 render its decision after reviewing the entire record before

3 the Board. Such decisions shall be made by a majority vote

4 of the members of the expanded panel and shall constitute

5 the final decision of the Board.

6 ‘‘(c) The Board on its own motion may correct an ob7 vious error in the record, without regard to whether there

8 has been a motion or order for reconsideration.’’.

9 (b) CLERICAL AMENDMENT.—The items relating to

10 sections 7102 and 7103 in the table of sections at the begin11 ning of chapter 71 are amended to read as follows:

‘‘7102. Decisions by the Board.

‘‘7103. Reconsideration; correction of obvious errors.’’.

12 SEC. 12303. TECHNICAL CORRECTION.

13 Section 7104(a) of title 38, United States Code, is

14 amended by striking out ‘‘211(a)’’ and inserting in lieu

15 thereof ‘‘511(a)’’.

16 SEC. 12304. HEARINGS.

17 (a) IN GENERAL.—Section 7110 of title 38, United

18 States Code, is amended to read as follows:

19 ‘‘§ 7110. Hearings

20 ‘‘(a) The Board shall decide any appeal only after af21 fording the appellant an opportunity for a hearing.

22 ‘‘(b) A hearing docket shall be maintained and formal

23 recorded hearings shall be held by such member or members

24 of the Board as the Chairman may designate. Such member
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1 or members designated by the Chairman to conduct the

2 hearing will participate in making the final determination

3 in the claim.

4 ‘‘(c)(1) An appellant may request a hearing before the

5 Board at either its principal location or at a regional office

6 of the Department. A hearing held at a regional office shall

7 (except as provided in paragraph (2)) be scheduled for hear8 ing in the order in which the requests for hearing in that

9 area are received by the Department at the place specified

10 by the Department for the filing of requests for those hear11 ings.

12 ‘‘(2) In a case in which the Secretary is aware that

13 the appellant is seriously ill or is under severe financial

14 hardship, a hearing may be scheduled at a time earlier than

15 would be provided under paragraph (1).

16 ‘‘(d) At the request of the Chairman, the Secretary may

17 provide suitable facilities and equipment to the Board or

18 other components of the Department to enable an appellant

19 located at a facility within the area served by a regional

20 office to participate, through voice transmission, or picture

21 and voice transmission, by electronic or other means, in a

22 hearing with a Board member or members sitting at the

23 Board’s principal location. When such facilities and equip24 ment are available, the Chairman may afford the appellant

25 an opportunity to participate in a hearing before the Board
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1 through the use of such facilities and equipment in lieu of

2 a hearing held by personally appearing before a Board

3 member or members as provided in subsection (c). Any such

4 hearing shall be conducted in the same manner as, and shall

5 be considered the equivalent of, a personal hearing. If the

6 appellant declines to participate in a hearing through the

7 use of such facilities and equipment, the opportunity of the

8 appellant to a hearing as provided in subsection (c) shall

9 not be affected.’’.

10 (b) CLERICAL AMENDMENT.—The item relating to sec11 tion 7110 in the table of sections at the beginning of chapter

12 71 of such title is amended to read as follows:

‘‘7110. Hearings.’’.

13 SEC. 12305. ELIMINATION OF REQUIREMENT FOR ANNUAL

14 INCOME QUESTIONNAIRES.

15 Section 1506 of title 38, United States Code, is amend16 ed—

17 (1) in paragraph (2), by striking out ‘‘shall’’

18 and inserting in lieu thereof ‘‘may’’; and

19 (2) in paragraph (3), by striking out ‘‘file a re20 vised report’’ and inserting in lieu thereof ‘‘notify the

21 Secretary’’.
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1 TITLE XIII—HUMAN RESOURCE

2 MANAGEMENT

3 Subtitle A—Federal Workforce

4 Restructuring Act of 1993

5 SEC. 13001. SHORT TITLE.

6 This subtitle may be cited as the ‘‘Federal Workforce

7 Restructuring Act of 1993’’.

8 SEC. 13002. AMENDMENTS TO CHAPTER 41 OF TITLE 5,

9 UNITED STATES CODE.

10 (a) Chapter 41 of title 5, United States Code, is

11 amended—

12 (1) in section 4101(4) by striking ‘‘fields’’ and

13 all that follows through the semicolon and inserting

14 ‘‘fields which will improve individual and organiza15 tional performance and assist in achieving the agen16 cy’s mission and performance goals;’’;

17 (2) in section 4103—

18 (A) in subsection (a) by striking ‘‘In’’ and

19 all that follows through ‘‘proficiency’’ and in20 serting ‘‘In order to assist in achieving an agen21 cy’s mission and performance goals by improv22 ing employee and organizational performance’’;

23 and

24 (B) in subsection (b)—
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1 (i) in paragraph (1) by striking ‘‘de2 termines’’ and all that follows through the

3 period and inserting ‘‘determines that such

4 training would be in the interests of the

5 Government.’’;

6 (ii) by repealing paragraph (2) and

7 redesignating paragraph (3) as paragraph

8 (2); and

9 (iii) in subparagraph (C) of paragraph

10 (2) (as so redesignated) by striking ‘‘re11 taining’’ and all that follows through the

12 period and inserting ‘‘such training.’’;

13 (3) in section 4105—

14 (A) by striking ‘‘(a) at the beginning; and

15 (B) by repealing subsections (b) and (c);

16 (4) by repealing section 4106;

17 (5) in section 4107—

18 (A) by amending the catchline to read as

19 follows:

20 ‘‘§ 4107. Restriction on degree training’’;

21 (B) by repealing subsections (a) and (b)

22 and redesignating subsections (c) and (d) as

23 subsections (a) and (b), respectively;

24 (C) by amending subsection (a) (as so re25 designated)—
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1 (i) by striking ‘‘subsection (d)’’ and

2 inserting ‘‘subsection (b)’’; and

3 (ii) by striking ‘‘by, in, or through a

4 non-Government facility’’; and

5 (D) by amending paragraph (1) of sub6 section (b) (as so redesignated) by striking

7 ‘‘subsection (c)’’ and inserting ‘‘subsection (a)’’;

8 (6) in section 4108(a) by striking ‘‘by, in, or

9 through a non-Government facility under this chap10 ter’’ and inserting ‘‘for more than a minimum period

11 prescribed by the head of the agency’’;

12 (7) in section 4113(b) by striking everything

13 following the first sentence;

14 (8) by repealing section 4114; and

15 (9) in section 4118—

16 (A) in subsection (a)(7) by striking ‘‘by,

17 in, and through non-Government facilities’’;

18 (B) by repealing subsection (b); and

19 (C) by redesignating subsections (c) and

20 (d) as subsections (b) and (c), respectively.

21 (b) The analysis of chapter 41 of title 5, United

22 States Code, is amended—

23 (1) by striking the items relating to sections

24 4106 and 4114; and
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1 (2) by amending the item relating to section

2 4107 to read as follows:

‘‘4107. Restriction on degree training.’’.

3 (c) The amendments made by this section are effec4 tive on the date of enactment of this Act.

5 SEC. 13003. VOLUNTARY SEPARATION INCENTIVES.

6 (a) For the purpose of this section—

7 (1) ‘‘agency’’ means an Executive agency, as

8 defined in section 105 of title 5, United States Code,

9 but does not include the Department of Defense, the

10 Central Intelligence Agency, or the General Account11 ing Office; and

12 (2) ‘‘employee’’ means an employee, as defined

13 in section 2105 of title 5, United States Code, of an

14 agency, serving under an appointment without time

15 limitation, who has been currently employed for a

16 continuous period of at least 12 months, including

17 an individual employed by a county committee estab18 lished under section 590h(b) of title 16, United

19 States Code, but does not include—

20 (A) a reemployed annuitant under sub21 chapter III of chapter 83 or chapter 84 of title

22 5, United States Code, or another retirement

23 system for employees of the Government; or

24 (B) an employee having a disability on the

25 basis of which such employee is or would be eli-
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1 gible for disability retirement under the applica2 ble retirement system referred to in subpara3 graph (A).

4 (b)(1) In order to assist in the restructuring of the

5 Federal workforce while minimizing involuntary separa6 tions, the head of an agency may pay, or authorize the

7 payment of, a voluntary separation incentive to employees

8 in any component of the agency, employees in any occupa9 tion or geographic location, or any combination thereof,

10 who agree, during a continuous 90-day period designated

11 by the agency head for the agency or a component thereof,

12 beginning no earlier than the date of enactment of this

13 Act and ending no later than September 30, 1994, to sep14 arate from service with the agency, whether by retirement

15 or resignation.

16 (2) In order to receive a voluntary separation incen17 tive, an employee shall separate from service no later than

18 the last day of the 90-day period designated by the agency

19 head under paragraph (1), unless the agency head deter20 mines that, in order to ensure the performance of the

21 agency’s mission, the employee must agree to continue in

22 service until a later date, but not later than 2 years after

23 such last day of the 90-day period.

24 (c) A voluntary separation incentive—
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1 (1) shall be paid in a lump sum after the em2 ployee’s separation;

3 (2) shall be equal to the lesser of—

4 (A) an amount equal to the amount the

5 employee would be entitled to receive under sec6 tion 5595(c) of title 5, United States Code, if

7 the employee were entitled to payment under

8 such section; or

9 (B) $25,000;

10 (3) shall not be a basis for payment, and shall

11 not be included in the computation, of any other

12 type of Government benefit;

13 (4) shall not be taken into account in determin14 ing the amount of any severance pay to which an

15 employee may be entitled under section 5595 of title

16 5, United States Code, based on any other separa17 tion; and

18 (5) shall be paid from appropriations or funds

19 available for the payment of the basic pay of the em20 ployee.

21 (d) An employee who has received a voluntary separa22 tion incentive under this section and accepts employment

23 with the Government of the United States within 2 years

24 of the date of the separation on which payment of the in25 centive is based shall be required to repay the entire
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1 amount of the incentive to the agency that paid the incen2 tive. If the employment is with an Executive agency (as

3 defined in section 105 of title 5, United States Code), the

4 Director of the Office of Personnel Management may, at

5 the request of the head of the agency, waive the repayment

6 if the employment is in a position for which there is excep7 tional difficulty in recruiting a qualified employee. If the

8 employment is with an entity in the legislative branch, the

9 head of the entity or the appointing official may waive the

10 repayment if the employment is in a position for which

11 there is exceptional difficulty in recruiting a qualified em12 ployee. If the employment is with the judicial branch, the

13 Director of the Administrative Office of the United States

14 Courts may waive the repayment if the employment is in

15 a position for which there is exceptional difficulty in re16 cruiting a qualified employee.

17 (e) The Director of the Office of Personnel Manage18 ment may prescribe any regulations necessary for the ad19 ministration of this Act.

20 (f) The Director of the Administrative Office of the

21 United States Courts may, by regulation, establish a pro22 gram consistent with the program established by sub23 sections (a) through (d) of this section for employees of

24 the judicial branch.

25 (g) It is the sense of Congress that—
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1 (1) employment in the Executive Branch should

2 be reduced by not less than one full-time equivalent

3 position for each two employees who are paid vol4 untary separation incentives under this Act; and

5 (2) each agency should adjust its employment

6 levels to achieve this result.

7 SEC. 13004. REPAYMENT OF SEPARATION PAY.

8 (a) Section 5597 of title 5, United States Code, is

9 amended by adding at the end the following new sub10 section:

11 ‘‘(g) An employee who receives separation pay under

12 this section on the basis of a separation occurring on or

13 after the date of enactment of the Federal Workforce Re14 structuring Act of 1993 and accepts employment with the

15 Government of the United States within 2 years of the

16 date of the separation on which payment of the separation

17 pay is based shall be required to repay the entire amount

18 of the separation pay to the defense agency that paid the

19 separation pay. If the employment is with an Executive

20 agency (as defined in section 105 of title 5, United States

21 Code), the Director of the Office of Personnel Manage22 ment may, at the request of the head of the agency, waive

23 the repayment if the employment is in a position for which

24 there is exceptional difficulty in recruiting a qualified em25 ployee. If the employment is with an entity in the legisla-
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1 tive branch, the head of the entity or the appointing offi2 cial may waive the repayment if the employment is in a

3 position for which there is exceptional difficulty in recruit4 ing a qualified employee. If the employment is with the

5 judicial branch, the Director of the Administrative Office

6 of the United States Courts may waive the repayment if

7 the employment is in a position for which there is excep8 tional difficulty in recruiting a qualified employee.’’.

9 (b) Section 2(b) of the Central Intelligence Agency

10 Voluntary Separation Pay Act (Public Law 103–36; 107

11 Stat. 104) is amended by adding at the end the following:

12 ‘‘An employee who receives separation pay under this sec13 tion on the basis of a separation occurring on or after the

14 date of enactment of the Federal Workforce Restructuring

15 Act of 1993 and accepts employment with the Government

16 of the United States within 2 years of the date of the sepa17 ration on which payment of the separation pay is based

18 shall be required to repay the entire amount of the separa19 tion pay to the Central Intelligence Agency. If the employ20 ment is with an Executive agency (as defined in section

21 105 of title 5, United States Code), the Director of the

22 office of Personnel Management may, at the request of

23 the head of the agency, waive the repayment if the employ24 ment is in a position for which there is exceptional dif25 ficulty in recruiting a qualified employee. If the employ-
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1 ment is with an entity in the legislative branch, the head

2 of the entity or the appointing official may waive the re3 payment if the employment is in a position for which there

4 is exceptional difficulty in recruiting a qualified employee.

5 If the employment is with the judicial branch, the Director

6 of the Administrative Office of the United States Courts

7 may waive the repayment if the employment is in a posi8 tion for which there is exceptional difficulty in recruiting

9 a qualified employee.’’.

10 SEC. 13005. ADDITIONAL AGENCY PAYMENTS TO FUND.

11 (a) Section 8334 of title 5, United States Code, is

12 amended by adding at the end the following new sub13 section:

14 ‘‘(1) In addition to any other payments re15 quired by this subchapter, an agency shall remit to

16 the Office for deposit in the Treasury of the United

17 States to the credit of the Fund an amount equal to

18 9 percent of the final rate of basic pay of each em19 ployee of the agency who retires under section

20 8336(d).’’.

21 (b) The amendment made by this section shall apply

22 with respect to retirements occurring on or after the date

23 of enactment of this Act.
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1 SEC. 13001. SHORT TITLE.

2 This subtitle may be cited as the ‘‘Federal Workforce

3 Restructuring Act of 1993’’.

4 SEC. 13002. TRAINING.

5 (a) IN GENERAL.—Chapter 41 of title 5, United States

6 Code, is amended—

7 (1) in section 4101(4) by striking ‘‘fields’’ and

8 all that follows through the semicolon and inserting

9 ‘‘fields which will improve individual and organiza10 tional performance and assist in achieving the agen11 cy’s mission and performance goals;’’;

12 (2) in section 4103—

13 (A) in subsection (a)—

14 (i) by striking ‘‘In’’ and all that fol15 lows through ‘‘maintain’’ and inserting ‘‘In

16 order to assist in achieving an agency’s

17 mission and performance goals by improv18 ing employee and organizational perform19 ance, the head of each agency, in conformity

20 with this chapter, shall establish, operate,

21 maintain, and evaluate’’;

22 (ii) by striking ‘‘and’’ at the end of

23 paragraph (2);

24 (iii) by redesignating paragraph (3) as

25 paragraph (4); and
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1 (iv) by inserting after paragraph (2)

2 the following:

3 ‘‘(3) provide that information concerning the se4 lection and assignment of employees for training and

5 the applicable training limitations and restrictions be

6 made available to employees of the agency; and’’; and

7 (B) in subsection (b)—

8 (i) in paragraph (1) by striking ‘‘de9 termines’’ and all that follows through the

10 period and inserting ‘‘determines that such

11 training would be in the interests of the

12 Government.’’; and

13 (ii) by striking paragraph (2) and re14 designating paragraph (3) as paragraph

15 (2);

16 (3) in section 4105—

17 (A) in subsection (a) by striking ‘‘(a)’’; and

18 (B) by striking subsections (b) and (c);

19 (4) by repealing section 4106;

20 (5) in section 4107—

21 (A) by amending the catchline to read as

22 follows:
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1 ‘‘§ 4107. Restriction on degree training’’;

2 (B) by striking subsections (a) and (b) and

3 redesignating subsections (c) and (d) as sub4 sections (a) and (b), respectively;

5 (C) by amending subsection (a) (as so redes6 ignated)—

7 (i) by striking ‘‘subsection (d)’’ and in8 serting ‘‘subsection (b)’’; and

9 (ii) by striking ‘‘by, in, or through a

10 non-Government facility’’; and

11 (D) by amending paragraph (1) of sub12 section (b) (as so redesignated) by striking ‘‘sub13 section (c)’’ and inserting ‘‘subsection (a)’’;

14 (6) in section 4108(a) by striking ‘‘by, in, or

15 through a non-Government facility under this chap16 ter’’ and inserting ‘‘for more than a minimum period

17 prescribed by the head of the agency’’;

18 (7) in section 4113(b)—

19 (A) in the first sentence by striking ‘‘annu20 ally to the Office,’’ and inserting ‘‘to the Office,

21 at least once every 3 years, and’’; and

22 (B) by striking the matter following the

23 first sentence and inserting the following: ‘‘The

24 report shall set forth—

25 ‘‘(1) information needed to determine that train26 ing is being provided in a manner which is in com-
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1 pliance with applicable laws intended to protect or

2 promote equal employment opportunity; and

3 ‘‘(2) information concerning the expenditures of

4 the agency in connection with training and such

5 other information as the Office considers appro6 priate.’’;

7 (8) by repealing section 4114; and

8 (9) in section 4118—

9 (A) in subsection (a)(7) by striking ‘‘by, in,

10 and through non-Government facilities’’;

11 (B) by striking subsection (b); and

12 (C) by redesignating subsections (c) and (d)

13 as subsections (b) and (c), respectively.

14 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

15 Title 5, United States Code, is amended—

16 (1) in section 3381(e) by striking ‘‘4105(a),’’ and

17 inserting ‘‘4105,’’; and

18 (2) in the analysis for chapter 41—

19 (A) by repealing the items relating to sec20 tions 4106 and 4114; and

21 (B) by amending the item relating to sec22 tion 4107 to read as follows:

‘‘4107. Restriction on degree training.’’.

23 (c) EFFECTIVE DATE.—The amendments made by this

24 section shall become effective on the date of enactment of

25 this Act.
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1 SEC. 13003. VOLUNTARY SEPARATION INCENTIVES.

2 (a) DEFINITIONS.—For the purpose of this section—

3 (1) the term ‘‘agency’’ means an Executive agen4 cy (as defined by section 105 of title 5, United States

5 Code), but does not include the Department of De6 fense, the Central Intelligence Agency, or the General

7 Accounting Office; and

8 (2) the term ‘‘employee’’ means an employee (as

9 defined by section 2105 of title 5, United States Code)

10 who is employed by an agency, is serving under an

11 appointment without time limitation, and has been

12 currently employed for a continuous period of at least

13 12 months; such term includes an individual em14 ployed by a county committee established under sec15 tion 8(b) of the Soil Conservation and Domestic Allot16 ment Act (16 U.S.C. 590h(b)), but does not include—

17 (A) a reemployed annuitant under sub18 chapter III of chapter 83 or chapter 84 of title

19 5, United States Code, or another retirement sys20 tem for employees of the Government; or

21 (B) an employee having a disability on the

22 basis of which such employee is or would be eli23 gible for disability retirement under the applica24 ble retirement system referred to in subpara25 graph (A).

26 (b) AUTHORITY.—
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1 (1) IN GENERAL.—In order to avoid or minimize

2 the need for involuntary separations due to a reduc3 tion in force, reorganization, transfer of function, or

4 other similar action, and subject to paragraphs (2)

5 and (3), the head of an agency may pay, or authorize

6 the payment of, voluntary separation incentive pay7 ments to agency employees—

8 (A) in any component of the agency;

9 (B) in any occupation;

10 (C) in any geographic location; or

11 (D) on the basis of any combination of fac12 tors under subparagraphs (A) through (C).

13 (2) REQUIREMENTS APPLICABLE TO EMPLOY14 EES.—

15 (A) IN GENERAL.—In order to receive an

16 incentive payment, an employee must agree, dur17 ing the applicable period under subparagraph

18 (B), to separate from service with the agency

19 (whether by retirement or resignation) before

20 such period ends.

21 (B) DESIGNATION OF PERIOD.—The appli22 cable period, for purposes of any agency compo23 nent, occupation, geographic location, or com24 bination thereof—
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1 (i) shall be a continuous 90-day pe2 riod;

3 (ii) shall be designated by the head of

4 the agency involved; and

5 (iii) shall end not later than December

6 31, 1994.

7 (C) EXCEPTION.—An employee who does

8 not separate from service before the end of the

9 applicable period under subparagraph (B) shall

10 be ineligible for an incentive payment under this

11 section unless—

12 (i) the agency head determines that, in

13 order to ensure the performance of the agen14 cy’s mission, it is necessary to delay such

15 employee’s separation; and

16 (ii) the employee completes any addi17 tional period of service agreed to (ending

18 not later than 2 years after the last day of

19 the period otherwise applicable under sub20 paragraph (B)).

21 (3) REQUIREMENTS APPLICABLE TO AGEN22 CIES.—Before offering any voluntary separation in23 centive payments to employees within any agency

24 component, occupation, geographic location, or com25 bination thereof, the head of the agency involved shall
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1 make available to all employees of such agency, and

2 to the exclusive representative of any such employees,

3 a written plan which—

4 (A) shall specify which agency components,

5 occupations, geographic locations, or combina6 tions thereof have been identified for incentives,

7 and the percentage of employees within each who

8 are supervisors or managers;

9 (B) shall indicate the beginning and ending

10 dates of any periods under paragraph (2)(B),

11 and the agency components, occupations, geo12 graphic locations, or combinations thereof to

13 which they apply;

14 (C) shall state whether any additional per15 sonnel reductions are anticipated after any exer16 cise of authority under this section and, if so,

17 what types of retraining, placement, or other

18 similar measures will be provided in order to

19 avoid involuntary separations; and

20 (D) shall include any other information

21 which may be necessary in order to permit em22 ployees who are eligible for voluntary separation

23 incentive payments to make an informed deci24 sion.
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1 (c) AMOUNT AND TREATMENT OF PAYMENTS.—A vol2 untary separation incentive payment—

3 (1) shall be paid in a lump sum after the em4 ployee’s separation;

5 (2) shall be equal to the lesser of—

6 (A) an amount equal to the amount the em7 ployee would be entitled to receive under section

8 5595(c) of title 5, United States Code, if the em9 ployee were entitled to payment under such sec10 tion; or

11 (B) $25,000;

12 (3) shall not be a basis for payment, and shall

13 not be included in the computation, of any other type

14 of Government benefit;

15 (4) shall not be taken into account in determin16 ing the amount of any severance pay to which an em17 ployee may be entitled under section 5595 of title 5,

18 United States Code, based on any other separation;

19 and

20 (5) shall be paid from appropriations or funds

21 available for the payment of the basic pay of the em22 ployee.

23 (d) EFFECT OF SUBSEQUENT EMPLOYMENT WITH THE

24 GOVERNMENT.—
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1 (1) IN GENERAL.—An employee who has received

2 a voluntary separation incentive payment under this

3 section and accepts employment with the Government

4 of the United States within 2 years after the date of

5 the separation on which the payment is based shall

6 be required to repay the entire amount of the incen7 tive payment to the agency that paid the incentive

8 payment.

9 (2) WAIVER AUTHORITY.—

10 (A) EXECUTIVE AGENCY.—If the employ11 ment is with an Executive agency (as defined in

12 section 105 of title 5, United States Code), the

13 Director of the Office of Personnel Management

14 may, at the request of the head of the agency,

15 waive the repayment if the employment is in a

16 position for which there is exceptional difficulty

17 in recruiting a qualified employee.

18 (B) LEGISLATIVE BRANCH.—If the employ19 ment is with an entity in the legislative branch,

20 the head of the entity or the appointing official

21 may waive the repayment if the employment is

22 in a position for which there is exceptional dif23 ficulty in recruiting a qualified employee.

24 (C) JUDICIAL BRANCH.—If the employment

25 is with the judicial branch, the Director of the
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1 Administrative Office of the United States

2 Courts may waive the repayment if the employ3 ment is in a position for which there is excep4 tional difficulty in recruiting a qualified em5 ployee.

6 (e) REGULATIONS.—The Director of the Office of Per7 sonnel Management may prescribe any regulations nec8 essary for the administration of subsections (a) through (d).

9 (f) EMPLOYEES OF THE JUDICIAL BRANCH.—The Di10 rector of the Administrative Office of the United States

11 Courts may, by regulation, establish a program consistent

12 with the program established by subsections (a) through (d)

13 for individuals serving in the judicial branch.

14 SEC. 13004. COORDINATION WITH OTHER PROVISIONS OF

15 LAW.

16 (a) DEFENSE AGENCIES.—Section 5597 of title 5,

17 United States Code, is amended by adding at the end the

18 following:

19 ‘‘(g)(1) An employee who receives separation pay

20 under this section on the basis of a separation occurring

21 on or after the date of enactment of the Federal Workforce

22 Restructuring Act of 1993, and accepts employment with

23 the Government of the United States within 2 years after

24 the date of the separation on which payment of the separa25 tion pay is based shall be required to repay the entire
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1 amount of the separation pay to the defense agency that

2 paid the separation pay.

3 ‘‘(2)(A) If the employment is with an Executive agen4 cy, the Director of the Office of Personnel Management may,

5 at the request of the head of the agency, waive the repay6 ment if the employment is in a position for which there

7 is exceptional difficulty in recruiting a qualified employee.

8 ‘‘(B) If the employment is with an entity in the legisla9 tive branch, the head of the entity or the appointing official

10 may waive the repayment if the employment is in a posi11 tion for which there is exceptional difficulty in recruiting

12 a qualified employee.

13 ‘‘(C) If the employment is with the judicial branch,

14 the Director of the Administrative Office of the United

15 States Courts may waive the repayment if the employment

16 is in a position for which there is exceptional difficulty in

17 recruiting a qualified employee.’’.

18 (b) CENTRAL INTELLIGENCE AGENCY.—Section 2(b) of

19 the Central Intelligence Agency Voluntary Separation Pay

20 Act (Public Law 103–36; 107 Stat. 104) is amended by

21 adding at the end the following: ‘‘An employee who receives

22 separation pay under this section on the basis of a separa23 tion occurring on or after the date of enactment of the Fed24 eral Workforce Restructuring Act of 1993 and accepts em25 ployment with the Government of the United States within
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1 2 years after the date of the separation on which payment

2 of the separation pay is based shall be required to repay

3 the entire amount of the separation pay to the Central In4 telligence Agency. If the employment is with an Executive

5 agency (as defined in section 105 of title 5, United States

6 Code), the Director of the Office of Personnel Management

7 may, at the request of the head of the agency, waive the

8 repayment if the employment is in a position for which

9 there is exceptional difficulty in recruiting a qualified em10 ployee. If the employment is with an entity in the legislative

11 branch, the head of the entity or the appointing official may

12 waive the repayment if the employment is in a position

13 for which there is exceptional difficulty in recruiting a

14 qualified employee. If the employment is with the judicial

15 branch, the Director of the Administrative Office of the

16 United States Courts may waive the repayment if the em17 ployment is in a position for which there is exceptional dif18 ficulty in recruiting a qualified employee.’’.

19 SEC. 13005. ADDITIONAL AGENCY CONTRIBUTIONS TO THE

20 RETIREMENT FUND.

21 (a) IN GENERAL.—Section 8334 of title 5, United

22 States Code, is amended by adding at the end the following

23 new subsection:

24 ‘‘(m)(1) In addition to any other payments required

25 by this subchapter, an agency shall remit to the Office for
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1 deposit in the Treasury of the United States to the credit

2 of the Fund an amount equal to 9 percent of the final basic

3 pay of each employee of the agency who retires under section

4 8336(d).

5 ‘‘(2) For the purpose of this subsection, the term ‘final

6 basic pay’, with respect to an employee, means the total

7 amount of basic pay which would be payable for a year

8 of service by such employee, computed using the employee’s

9 final rate of basic pay, and, if last serving on other than

10 a full-time basis, with appropriate adjustment therefor.’’.

11 (b) APPLICABILITY.—The amendment made by this

12 section shall apply with respect to retirements occurring on

13 or after the date of enactment of this Act.

14 Subtitle B—SES Annual Leave

15 Accumulation

16 SEC. 1301. SES ANNUAL LEAVE ACCUMULATION.

17 (a) Effective on the last day of the last applicable

18 pay period beginning in calendar year 1993, subsection (f)

19 of section 6304 of title 5, United States Code, is repealed.

20 SEC. 13101. SES ANNUAL LEAVE ACCUMULATION.

21 (a) Effective on the last day of the last applicable pay

22 period beginning in calendar year 1993, subsection (f) of

23 section 6304 of title 5, United States Code, is amended to

24 read as follows:
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1 ‘‘(f)(1) This subsection applies with respect to annual

2 leave accrued by an individual while serving in a position

3 in—

4 ‘‘(A) the Senior Executive Service;

5 ‘‘(B) the Senior Foreign Service;

6 ‘‘(C) the Defense Intelligence Senior Executive

7 Service;

8 ‘‘(D) the Senior Cryptologic Executive Service;

9 or

10 ‘‘(E) the Federal Bureau of Investigation and

11 Drug Enforcement Administration Senior Executive

12 Service.

13 ‘‘(2) For purposes of applying any limitation on accu14 mulation under this section with respect to any annual

15 leave described in paragraph (1)—

16 ‘‘(A) ‘30 days’ in subsection (a) shall be deemed

17 to read ‘90 days’; and

18 ‘‘(B) ‘45 days’ in subsection (b) shall be deemed

19 to read ‘90 days’.’’.

20 (b) Notwithstanding the amendment made by sub21 section (a), in the case of an employee who, on the effec22 tive date of subsection (a), is subject to subsection (f) of

23 section 6304 of title 5, United States Code, and who has

24 to such employee’s credit annual leave in excess of the

25 maximum accumulation otherwise permitted by subsection
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1 (a) or (b) of section 6304, 6304 (determined applying the

2 amendment made by subsection (a)), such excess annual

3 leave shall remain to the credit of the employee and be

4 subject to reduction, in the same manner as provided in

5 subsection (c) of section 6304.

6 TITLE XIV—REINVENTING

7 SUPPORT SERVICES

8 SEC. 14001. SHORT TITLE.

9 This title may be cited as the ‘‘Government Informa10 tion Dissemination and Printing Improvement Act of

11 1993’’.

12 SEC. 14002. PURPOSE.

13 The purpose of this title is to enhance public access

14 to public information, through a diversity of sources and

15 in a variety of forms and formats, by improving the print16 ing and dissemination practices of the Federal Govern17 ment.

18 SEC. 14003. DEFINITIONS.

19 As used herein—

20 (1) ‘‘information dissemination product’’ means

21 any book, paper, map, machine-readable material,

22 audiovisual production, or other documentary mate23 rial, regardless of physical form or characteristic,

24 disseminated by an agency to the public; and
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1 (2) ‘‘public information’’ means any informa2 tion, regardless of form or format, that an agency

3 discloses, disseminates, or makes available to the

4 public pursuant to law, rule, regulation, policy, or

5 practice, and any part of that information.

6 SEC. 14004. EXECUTIVE BRANCH PRINTING POLICY.

7 (a) The President shall establish policy for the acqui8 sition of printing by Executive branch agencies and pro9 mulgate government-wide regulations as appropriate.

10 (b) To the extent practicable and appropriate, the

11 policies promulgated for the acquisition of printing by Ex12 ecutive branch agencies shall be consistent with the prin13 ciples contained in the Federal Acquisition Regulation,

14 promulgated pursuant to 41 U.S.C. 405a.

15 (c) The policies promulgated pursuant to this section

16 shall ensure that the Government Printing Office has the

17 opportunity to compete on an equal basis for Executive

18 branch agency printing acquisitions.

19 SEC. 14005. TRANSITION TO EXECUTIVE BRANCH PRINTING.

20 (a) The Government Printing Office shall remain the

21 mandatory source for Executive branch agencies’ printing

22 for 2 years after the effective date of this Act.

23 (b) Notwithstanding subsection (a), Executive agen24 cies are authorized to obtain printing services costing

25 under $2500 from commercial sources, other printing
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1 sources operated by Executive branch agencies, or the

2 Government Printing Office during this period.

3 (c) Subsection (a) does to apply to (1) printing for

4 the Central Intelligence Agency, the Defense Intelligence

5 Agency, and the National Security Agency, or (2) printing

6 from other sources that are specifically authorized by law

7 at the time of enactment of this Act.

8 SEC. 14006. AUTHORITY AND FUNCTIONS OF THE DIREC9 TOR OF THE OFFICE OF MANAGEMENT AND

10 BUDGET.

11 The Director of the Office of Management and Budg12 et (the Director) shall develop policies and practices for

13 agency dissemination of public information to ensure that

14 agencies—

15 (1) make information dissemination products

16 available on timely, equitable and cost effective

17 terms;

18 (2) encourage a diversity of public and private

19 information dissemination products;

20 (3) avoid establishing, or permitting others to

21 establish, exclusive, restricted, or other distribution

22 arrangements that interfere with the availability of

23 information dissemination products on a timely and

24 equitable basis; and
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1 (4) set user charges for information dissemina2 tion products no higher than sufficient to recover

3 the cost of dissemination, except where required by

4 statute or specifically authorized by the Director.

5 SEC. 14007. FEDERAL AGENCY RESPONSIBILITIES.

6 The head of each Executive branch agency shall—

7 (1) ensure that the public has timely and equi8 table access to the agency’s public information;

9 (2) disseminate public information in an effi10 cient, cost effective, and economical manner;

11 (3) provide notice to the Superintendent of

12 Documents and otherwise comply with the require13 ments of section 1710, title 44, United States Code;

14 (4) establish fees and other dissemination ar15 rangements in a manner consistent with the policies

16 and practices developed by the Director under Sec17 tion 14006 of this Act;

18 (5) consider whether information dissemination

19 products available from other Federal or nonfederal

20 sources are equivalent to any agency information

21 dissemination product and reasonably fulfill the dis22 semination responsibilities of the agency; and

23 (6) regularly solicit and consider public input

24 on the agency’s information dissemination program.
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1 SEC. 14008. DEPOSITORY LIBRARY PROGRAM.

2 (a) Within 1 year of the date of enactment of this

3 Act, the Director shall, in consultation with the Secretary

4 of Commerce, the Superintendent of Documents, the Li5 brarian of Congress the Archivist of the United States,

6 and the public, propose such amendments to Chapter 19

7 of title 44, United States Code, as may be necessary and

8 appropriate to ensure the distribution of government in9 formation dissemination products to the depository librar10 ies.

11 (b) The policies promulgated pursuant to section

12 14005 of this Act shall reaffirm agency responsibilities to

13 cooperate with the Superintendent of Documents with re14 gard to the distribution of government publications to the

15 depository libraries.

16 (c) Agency information dissemination programs shall

17 include provisions to maximize the distribution of informa18 tion dissemination products to the depository libraries.

19 SEC. 14009. ESTABLISHMENT AND OPERATION OF GOVERN20 MENT INFORMATION LOCATOR SERVICE.

21 Section 3511 of title 44, United States Code, is

22 amended to read as follows:

23 ‘‘(a) In order to assist agencies and the public in re24 ducing the burden of agency information collection re25 quests by minimizing duplication, the Director shall main-
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1 tain a publicly accessible comprehensive inventory of all

2 approved Federal agency information collection requests.

3 ‘‘(b) In order to assist agencies and the public in lo4 cating information and to promote information sharing

5 and equitable access by the public, the Director shall—

6 ‘‘(1) cause to be established and maintained a

7 distributed agency-based electronic Government In8 formation Locator Service supported by agency in9 ventory systems which identify significant public in10 formation holdings consistent with the requirements

11 of Section 4101 of title 44, United States Code;

12 ‘‘(2) require each agency having significant in13 formation dissemination products to establish and

14 maintain a comprehensive inventory of such prod15 ucts, and shall prescribe the minimum contents of

16 such inventories, subject to any technical standards

17 developed pursuant to paragraph (3); and

18 ‘‘(3) establish an interagency committee, in co19 operation with the Secretary of Commerce, the Ar20 chivist of the United States, the Administrator of

21 General Services, the Public Printer, and the Librar22 ian of Congress, to develop such technical standards

23 for agency inventory systems as may be necessary

24 and appropriate.’’.
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1 SEC. 14010. TECHNICAL AND CONFORMING AMENDMENTS.

2 (a) Section 103 of title 44, United States Code, is

3 amended by striking ‘‘Government,’’ and inserting ‘‘Con4 gressional and Judicial branch publications’’.

5 (b) Section 312 of title 44, United States Code, is

6 amended by striking ‘‘Government’’ and inserting ‘‘Con7 gress or the Judiciary (other than the Supreme Court)’’

8 in the first sentence of the section.

9 (c) Section 313 of title 44, United States Code, is

10 amended by inserting ‘‘for the use of Congress or the Ju11 diciary (other than the Supreme Court)’’ after ‘‘other12 wise’’ in the first paragraph thereof.

13 (d) Section 501 of title 44, United States Code, is

14 amended to read as follows: ‘‘Government printing, bind15 ing, and blank-book work for Congress and the Judiciary

16 (other than the Supreme Court) shall be done at the Gov17 ernment Printing Office, except classes of work the Public

18 Printer considers appropriate to be done elsewhere.’’.

19 (e) Sections 503, 504, 508, 509, 510, 512, 513, and

20 514 of title 44, United States Code, are repealed.

21 (f) Chapter 11 of title 44, United States Code, is re22 pealed in its entirety.

23 (g) Section 1502 of title 44, United States Code, is

24 amended by striking ‘‘and, together with the Public Print25 er,’’ after ‘‘custody’’ in the first section.
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1 (h) Section 1503 of title 44, United States Code, is

2 amended by striking the sixth sentence, which reads, ‘‘The

3 Office shall transmit immediately to the Government

4 Printing Office for printing, as provided by this chapter,

5 one duplicate original or certified copy of each document

6 required or authorized to be published by section 1505 of

7 this title.’’.

8 (i) Section 1504 of title 44, United States Code, is

9 repealed.

10 (j) Section 1506 of title 44, United States Code, is

11 amended by striking ‘‘Public Printer or Acting Printer’’.

12 (k) Section 1701 of title 44, United States Code, is

13 repealed.

14 (l) Section 207 of Public Law 102–392, Legislative

15 Branch Appropriations Act, 1993, is repealed.

16 TITLE XIV—REINVENTING

17 SUPPORT SERVICES

18 SEC. 14001. SHORT TITLE.

19 This title may be cited as the ‘‘Government Informa20 tion Dissemination and Printing Improvement Act of

21 1993’’.

22 SEC. 14002. TRANSFER OF FUNCTIONS.

23 (a) PUBLIC PRINTER.—The position of Public Printer

24 and all functions of the position of Public Printer (other

25 than functions of the Superintendent of Documents) under
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1 title 44, United States Code, or any other provision of law

2 are transferred from the legislative branch of the Govern3 ment to the executive branch of the Government.

4 (b) SUPERINTENDENT OF DOCUMENTS.—The position

5 of Superintendent of Documents and all functions of the

6 position of Superintendent of Documents under title 44,

7 United States Code, or any other provision of law are trans8 ferred to the Library of Congress and shall be carried out

9 by the Superintendent of Documents under the direction of

10 the Librarian of Congress. The Superintendent of Docu11 ments shall be appointed by, and serve at the pleasure of,

12 the Librarian of Congress.

13 (c) REVOCATION OF CHARTERS.—All printing plant

14 charters authorized under section 501 of title 44, United

15 States Code, are revoked.

16 (d) EFFECTIVE DATE.—The transfer under subsection

17 (a) and the revocation under subsection (c) shall each take

18 effect 2 years after the date of the enactment of this title.

19 The transfer under subsection (b) shall take effect one year

20 after the date of the enactment of this title.

21 SEC. 14003. GOVERNMENT PUBLICATIONS TO BE AVAILABLE

22 THROUGHOUT THE GOVERNMENT.

23 All Government publications shall be available

24 throughout the Government to any department, agency, or

25 entity of the Government for use or redissemination.
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1 SEC. 14004. INVENTORY AND FURNISHING OF GOVERNMENT

2 PUBLICATIONS.

3 Each department, agency, and other entity of the Gov4 ernment shall—

5 (1) establish and maintain a comprehensive in6 ventory of its Government publications;

7 (2) make such inventory available through the

8 electronic directory under chapter 41 of title 44,

9 United States Code; and

10 (3) in the form and manner prescribed by the

11 Superintendent of Documents, furnish its Government

12 publications to the Superintendent of Documents.

13 SEC. 14005. ADDITIONAL RESPONSIBILITIES OF THE PUBLIC

14 PRINTER.

15 (a) IN GENERAL.—The Public Printer shall, with re16 spect to the executive branch of the Government and the ju17 dicial branch of the Government—

18 (1) use all necessary measures to remedy neglect,

19 delay, duplication, and waste in the public printing

20 and binding of Government publications, including

21 the reduction and elimination of internal printing

22 and high-speed duplicating capacities of departments,

23 agencies, and entities;

24 (2) prescribe Government publishing standards,

25 which, to the greatest extent practicable, shall be con-
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1 sistent with the United States Government Printing

2 Office Style Manual;

3 (3) prescribe Government procurement and man4 ufacturing requirements for printing paper and writ5 ing paper, which, to the greatest extent practicable,

6 shall be consistent with Government Paper Specifica7 tion Standards;

8 (4) authorize the acquisition and transfer of

9 equipment requisitioned by publishing facilities au10 thorized under section 501 of title 44, United States

11 Code;

12 (5) authorize the disposal of such equipment pur13 suant to section 312 of title 44, United States Code;

14 and

15 (6) establish policy for the acquisition of print16 ing, which, to the greatest extent practicable, shall be

17 consistent with (A) Printing Procurement Regulation

18 (GPO Publication 305.3), (B) Government Printing

19 and Binding Regulations (JCP No. 26), and (C)

20 Printing Procurement Department Instruction

21 (PP304.1B).

22 (b) POLICY STANDARDS.—The policy referred to in

23 subsection (a)(6) shall be formulated to maximize competi24 tive procurement from the private sector. Government in25 house printing and duplicating operations authorized
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1 under section 501 of title 44, United States Code, or other2 wise authorized by law, may be used if they provide print3 ing at the lowest cost to the Government, taking into consid4 eration the total expense of production, materials, labor,

5 equipment, and general and administrative expense, in6 cluding all levels of overhead.

7 SEC. 14006. ADDITIONAL RESPONSIBILITIES OF THE SUPER8 INTENDENT OF DOCUMENTS.

9 (a) GOVERNMENT PUBLICATIONS TO BE FURNISHED

10 TO THE SUPERINTENDENT OF DOCUMENTS.—If a depart11 ment, agency, or other entity of the Government publishes

12 a Government publication, the head of the department,

13 agency, or entity shall furnish the Government publication

14 to the Superintendent of Documents not later than the date

15 of release of the material to the public.

16 (b) DISSEMINATION OR REPUBLICATION.—In addition

17 to any other dissemination provided for by law, the Super18 intendent of Documents shall disseminate or republish Gov19 ernment publications, if, as determined by the Superintend20 ent, the dissemination by the department, agency, or entity

21 of the Government is inadequate. The Superintendent shall

22 have authority to carry out the preceding sentence by ap23 propriate means, including the dissemination and republi24 cation of Government publications furnished under sub-
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1 section (a), with the cost of dissemination and republication

2 to be borne by the department, agency, or entity involved.

3 (c) COST.—The cost charged to the public by the Su4 perintendent of Documents under subsection (b) for any

5 Government publication (whether such Government publi6 cation is made available to the public by a department,

7 agency, or entity of the Government, or by the Superintend8 ent of Documents) may include the incremental cost of dis9 semination, but may not include any profit.

10 SEC. 14007. DEPOSITORY LIBRARIES.

11 In addition to any other distribution provided for by

12 law, the Superintendent of Documents shall make Govern13 ment publications available to designated depository librar14 ies and State libraries. The Superintendent shall have au15 thority to carry out the preceding sentence by appropriate

16 means, including the dissemination and republication of

17 Government publications furnished under section 14006(a),

18 with the cost of dissemination and republication to be borne

19 by the department, agency, or entity involved.

20 SEC. 14008. DEFINITIONS.

21 As used in this title—

22 (1) the term ‘‘Government publication’’ means

23 any informational matter that is published at Gov24 ernment expense, or as required by law; and
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1 (2) the term ‘‘publish’’ means, with respect to in2 formational matter, make available for dissemination.

3 TITLE XV—STREAMLINING

4 MANAGEMENT CONTROL

5 SEC. 15001. AUTHORITY TO INCREASE EFFICIENCY IN RE6 PORTING TO CONGRESS.

7 (a) PURPOSE.—The purpose of this title is to improve

8 the efficiency of Executive branch performance in imple9 menting statutory requirements for reports to Congress

10 and its committees. Examples of improvements in effi11 ciency intended by this subtitle are the elimination or con12 solidation of duplicative or obsolete reporting requirements

13 and adjustments to deadlines that will provide for more

14 efficient workload distribution or improve the quality of

15 reports.

16 (b) AUTHORITY OF THE DIRECTOR.—The Director of

17 the Office of Management and Budget may publish annu18 ally in the President’s Budget his recommendations for

19 consolidation, elimination, or adjustments in frequency

20 and due dates of statutorily required periodic reports to

21 the Congress or its committees. For each recommendation,

22 the Director shall provide an individualized statement of

23 the reasons that support the recommendation. In addition,

24 for each report for which a recommendation is made, the

25 Director shall state with specificity the exact consolida-
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1 tion, elimination, or adjustment in frequency or due date

2 that is recommended. If the Director’s recommendations

3 are approved by law, they shall take effect.

4 (c) The Director’s recommendations shall be consist5 ent with the purpose stated in subsection (a).

6 (d) Prior to the publication of the recommendations

7 authorized in subsection (b), the Director or his designee

8 shall consult with the appropriate congressional commit9 tees concerning the recommendations.

10 TITLE XVI—FINANCIAL

11 MANAGEMENT

12 SEC. 16001. SHORT TITLE.

13 This title may be cited as the ‘‘Federal Financial

14 Management Act of 1993’’.

15 Subtitle A—Electronic Payments

16 SEC. 16101. ELECTRONIC PAYMENTS.

17 (a) Section 3332 of title 31, United States Code, is

18 amended to read as follows:

‘‘3332. Required direct deposit.

19 ‘‘(a)(1) Notwithstanding any other provision of law,

20 all Federal wage, salary, and retirement payments shall

21 be paid to recipients of such payments by electronic funds

22 transfer, unless another method has been determined by

23 the Secretary of the Treasury to be appropriate.

24 ‘‘(2) Each recipient of Federal wage, salary, or retire25 ment payments shall designate one or more financial insti-
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1 tutions or other authorized payment agents and provide

2 the payment certifying or authorizing agency information

3 necessary for the recipient to receive electronic funds

4 transfer payments through each institution so designated.

5 ‘‘(b)(1) The head of each agency shall waive the re6 quirements of subsection (a) of this section for a recipient

7 of Federal wage, salary, or retirement payments author8 ized or certified by the agency upon written request by

9 such recipient.

10 ‘‘(2) Federal wage, salary, or retirement payments

11 shall be paid to any recipient granted a waiver under para12 graph (1) of this subsection by any method determined

13 appropriate by the Secretary of the Treasury.

14 ‘‘(c)(1) The Secretary of the Treasury may waive the

15 requirements of subsection (a) of this section for any

16 group of recipients upon request by the head of an agency

17 under standards prescribed by the Secretary of the Treas18 ury.

19 ‘‘(2) Federal wage, salary, or retirement payments

20 shall be paid to any member of a group granted a waiver

21 under paragraph (1) of this subsection by any method de22 termined appropriate by the Secretary of the Treasury.

23 ‘‘(d) This section shall apply only to recipients of

24 Federal wage or salary payments who begin to receive

25 such payments on or after January 1, 1995, and recipients
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1 of Federal retirement payments who begin to receive such

2 payments on or after January 1, 1995.

3 ‘‘(e) The crediting of the amount of a payment to

4 the appropriate account on the books of a financial institu5 tion or other authorized payment agent designated by a

6 payment recipient under this section shall constitute a full

7 acquittance to the United States for the amount of the

8 payment.’’.

9 (b) The table of sections for chapter 33 of title 31,

10 United States Code, is amended by amending the item for

11 section 3332 to read:

‘‘3332. Required direct deposit.’’.

12 Subtitle B—Franchise Funds and

13 Innovation Funds

14 SEC. 16201. FRANCHISE FUNDS AND INNOVATION FUNDS.

15 (a) Title 31, United States Code, is amended by add16 ing, after section 1537, a section 1538, as follows:

17 ‘‘§ 1538. Franchise funds

18 ‘‘(a) There is hereby authorized to be established a

19 franchise fund in any executive agency which does not

20 have such a fund which shall be available, without further

21 appropriation action by the Congress, for expenses and

22 equipment necessary for the maintenance and operations

23 of such administrative services as the head of the agency,

24 with the approval of the Office of Management and Budg-
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1 et, determines may be performed more advantageously on

2 a centralized basis.

3 ‘‘(b)(1) The fund shall consist of the fair and reason4 able value of inventories, equipment, and other assets and

5 inventories on order pertaining to the services to be pro6 vided by the fund as are transferred by the head of the

7 agency to the fund less related liabilities and unpaid obli8 gations together with any appropriations made for the

9 purpose of providing capital.

10 ‘‘(2) For the first fiscal year a fund is in operation

11 and each fiscal year thereafter, an amount not to exceed

12 4 percent of the total income of the fund may be retained

13 in the fund, to remain available until expended, to be used

14 only for the acquisition of capital equipment and for the

15 improvement and implementation of agency financial man16 agement and related support systems.

17 ‘‘(3) For the first three fiscal years a fund is in oper18 ation, up to 50 percent of the unobligated balances of

19 funds provided in annual appropriations available at the

20 end of the fiscal year to the agency for salaries and ex21 penses may be transferred into the fund no later than the

22 end of the succeeding fiscal year.

23 ‘‘(c) The fund shall be reimbursed or credited with

24 payments, including advance payments, from applicable

25 appropriations and funds of the agency, other Federal
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1 agencies, and other sources authorized by law for supplies,

2 materials, and services at rates which will recover the ex3 penses of operations including accrued leave, depreciation

4 of fund plant and equipment, and an amount necessary

5 to maintain a reasonable operating reserve, as determined

6 by the head of the agency.

7 ‘‘(d)(1) In the third fiscal year after the fund is es8 tablished, and each year thereafter, any Federal entity

9 seeking to obtain any service financed through the fund

10 that is not inherently governmental in nature must not

11 be precluded from obtaining such service from one or more

12 other sources, either governmental or non-governmental,

13 in addition to the source finance through the funds.

14 ‘‘(2) If, after the end of the third fiscal year after

15 a fund is established, any Federal entity seeking to obtain

16 any service financed through the fund that is not inher17 ently governmental in nature is precluded from obtaining

18 such service from one or more other sources, either gov19 ernmental or non-governmental, in addition to the source

20 financed through the fund, the fund shall be cancelled.’’.

21 (b) The table of sections for subchapter III of chapter

22 15 of title 31, United States Code, is amended by adding,

23 after the item for section 1537, the following new item:

24 ‘‘Section 1538. Franchise Funds.’’.
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1 (c) Title 31, United States Code, is amended by add2 ing, after section 1538, a section 1539, as follows:

3 ‘‘§ 1539. Innovation funds

4 ‘‘(a) There is hereby authorized to be established an

5 innovation fund in any executive agency which does not

6 have such a fund, which shall be available without further

7 appropriation action by the Congress.

8 ‘‘(b) The purpose of the fund is to provide a self9 sustaining source of financing for agencies to invest in

10 projects designed to produce measurable improvements in

11 agency efficiency and significant taxpayer savings.

12 Amounts available in the fund may be borrowed by the

13 agency for such projects, subject to subsection (e).

14 ‘‘(c) Each agency that establishes an innovation fund

15 will develop an investment project selection process, in16 cluding specific investment criteria such as return on in17 vestment, payback period, extent of matching or in-kind

18 support (including such support from other Federal agen19 cies), technical merit, and budget justification.

20 ‘‘(d) For the first three fiscal years a fund is in oper21 ation, up to 50 percent of the unobligated balances of

22 funds provided in annual appropriations available at the

23 end of the fiscal year to the agency (other than appropria24 tions for salaries and expenses) may be transferred to and

25 merged with the innovation fund to be available to make
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1 loans to agency components for projects designed to en2 hance productivity and generate cost savings, provided

3 that such transfers occur no later than the end of the suc4 ceeding fiscal year.

5 ‘‘(e)(1) Any amounts borrowed from the fund by an

6 agency component to finance a project selected under the

7 process described in subsection (c) shall be repaid to the

8 fund at the times specified in the repayment schedule

9 agreed upon at the time the loan is made.

10 ‘‘(2) Interest on loans made by the fund shall be paid

11 to the fund at the rate on marketable Treasury securities

12 of similar maturity at the time the loan is made.

13 ‘‘(3) Repayments shall be made from the accounts

14 anticipated to receive the greatest long-term benefit from

15 the project at the time the loan is made.

16 ‘‘(4) Repayments to the fund shall take priority over

17 any other obligation of payments of an account designated

18 to make repayments under paragraph (3) of this sub19 section.’’.

20 (d) The table of sections for subchapter III of chapter

21 15 of title 31, United States Code, is amended by adding,

22 after the item for section 1538, the following new item:

‘‘Section 1539. Innovation Funds.’’.
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1 Subtitle C—Simplifying the

2 Management Reporting Process

3 SEC. 16301. SIMPLIFICATION OF MANAGEMENT REPORTING

4 PROCESS.

5 (a) To improve the efficiency of Executive branch

6 performance in implementing statutory requirements for

7 general management and financial management reports to

8 the Congress and its committees, the Director of the Of9 fice of Management and Budget may publish annually in

10 the President’s Budget his recommendations for consoli11 dation, elimination, or adjustments in frequency and due

12 dates of statutorily required periodic reports of agencies

13 to the Office of Management and Budget or the President

14 and of agencies or the Office of Management and Budget

15 to the Congress under any laws for which the Office of

16 Management and Budget has general management or fi17 nancial management responsibility. For each rec18 ommendation, the Director shall provide an individualized

19 statement of the reasons that support the recommenda20 tion. In addition, for each report for which a recommenda21 tion is made, the Director shall state with specificity the

22 exact consolidation, elimination, or adjustment in fre23 quency or due date that is recommended. If the Director’s

24 recommendations are approved by law, they shall take ef25 fect.
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1 (b) The Director’s recommendations shall be consist2 ent with the purpose stated in subsection (a).

3 (c) Prior to the publication of the recommendations

4 authorized in subsection (a), the Director or his designee

5 shall consult with the appropriate congressional commit6 tees, including the House Committee on Government Op7 erations and the Senate Committee on Governmental Af8 fairs, concerning the recommendations.

9 Subtitle D—Annual Financial

10 Reports

11 SEC. 16401. ANNUAL FINANCIAL REPORTS.

12 (a) Section 3515 of title 31, United States Code, is

13 amended to read as follows:

14 ‘‘§ 3515. Financial statements of agencies

15 ‘‘(a) Not later than March 1 of 1997 and each year

16 thereafter, the head of each executive agency identified in

17 section 901(b) of this title shall prepare and submit to

18 the Director of the Office of Management and Budget an

19 audited financial statement for the preceding fiscal year,

20 covering all accounts and associated activities of each of21 fice, bureau, and activity of the agency.

22 ‘‘(b) Each audited financial statement of an executive

23 agency under this section shall reflect—
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1 ‘‘(1) the overall financial position of the offices,

2 bureaus, and activities covered by the statement, in3 cluding assets and liabilities thereof; and

4 ‘‘(2) results of operations of those offices, bu5 reaus, and activities.

6 ‘‘(c) The Director of the Office of Management and

7 Budget shall prescribe the form and content of the finan8 cial statements of executive agencies under this section,

9 consistent with applicable accounting principles, stand10 ards, and requirements.

11 ‘‘(d) The Director of the Office of Management and

12 Budget may waive the application of all or part of sub13 section (a).

14 ‘‘(e) Not later than March 1 of 1996, the head of

15 each Executive agency identified in section 901(b) of this

16 title and designated by the Director of the Office of Man17 agement and Budget shall prepare and submit to the Di18 rector of the Office of Management and Budget an audited

19 financial statement for the preceding fiscal year, covering

20 all accounts and associated activities of each office, bu21 reau, and activity of the agency.

22 ‘‘(f) Not later than March 31 of 1994, 1995, and,

23 for Executive agencies not designated by the Director of

24 the Office of Management and Budget under subsection

25 (e), 1996, the head of each Executive agency identified
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1 in section 901(b) of this title shall prepare and submit

2 to the Director of the Office of Management and Budget

3 a financial statement for the preceding fiscal year, cover4 ing—

5 ‘‘(1) each revolving fund and trust fund of the

6 agency; and

7 ‘‘(2) to the extent practicable, the accounts of

8 each office, bureau, and activity of the agency which

9 performed substantial commercial functions during

10 the preceding fiscal year.

11 ‘‘(g) for purposes of subsection (f), the term ‘commer12 cial functions’ includes buying and leasing of real estate,

13 providing insurance, making loans and loan guarantees,

14 and other credit programs and any activity involving the

15 provision of a service or thing for which a fee, royalty,

16 rent, or other charge is imposed by an agency for services

17 and things of value it provides.’’.

18 (b) Subsection 3521(f) of title 31, United States

19 Code, is amended to read as follows:

20 ‘‘(f)(1) For each audited financial statement required

21 under subsections (a) and (e) of section 3515 of this title,

22 the person who audits the statement for purpose of sub23 section (e) of this section shall submit a report on the

24 audit to the head of the agency. A report under this sub-
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1 section shall be prepared in accordance with generally ac2 cepted government auditing standards.

3 ‘‘(2) Not later than June 30 following the fiscal year

4 for which a financial statement is submitted under sub5 section (f) of section 3515 of this title, the person who

6 audits the statement for purpose of subsection (e) of this

7 section shall submit a report on the audit to the head of

8 the agency. A report under this subsection shall be pre9 pared in accordance with generally accepted government

10 auditing standards.’’.

11 Subtitle E—Strengthening Debt

12 Collection Programs

13 SEC. 16501. AUTHORIZATION OF APPROPRIATIONS FOR EN14 HANCING DEBT COLLECTION.

15 (a) Title 31, United States Code, is amended by add16 ing, after section 3720A, a section 3720B, as follows:

17 ‘‘§ 3720B. Authorization of appropriations for enhanc18 ing debt collection

19 ‘‘(a) To the extent and in the amounts provided in

20 advance in appropriations acts—

21 ‘‘(1) an amount not to exceed 1 percent of the

22 delinquent debts collected for a program in one fiscal

23 year is authorized to be credited in the following fis24 cal year to a special fund for such program;
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1 ‘‘(2) an amount not to exceed 10 percent of any

2 sustained annual increase in delinquent debt collec3 tions, as defined by the Director of the Office of

4 Management and Budget, is authorized to be cred5 ited to a special fund for such program; and

6 ‘‘(3) from amounts credited under paragraphs

7 (1) and (2), such sums as may be necessary are au8 thorized to be appropriated for the improvement of

9 that program’s debt collection activities, including,

10 but not limited to, account and loan servicing, delin11 quent debt collection and asset disposition.

12 ‘‘(b) Debt is defined as delinquent under standards

13 prescribed or to be prescribed by the Secretary of the

14 Treasury.

15 ‘‘(c) For direct loan and loan guarantee programs

16 subject to Title V of the Congressional Budget Act of

17 1974, amounts credited in accordance with section (a)

18 shall be considered administrative costs and shall not be

19 included in the estimated payments to the Government for

20 the purpose of calculating the cost of such programs.’’.

21 (b) The table of sections for subchapter II of chapter

22 37 of title 31, United States Code, is amended by adding,

23 after the item for section 3720A, the following new item:

‘‘Section 3720B. Authorization of appropriations for enhancing debt collection.’’.
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1 SEC. 16502. CONTRACTS FOR COLLECTION SERVICES.

2 (a) Subsection 3701(d) of Title 31, United States

3 Code, is amended—

4 (1) by striking ‘‘and 3716–3719’’ and inserting

5 in lieu thereof ‘‘, 3716, and 3717’’; and

6 (2) by striking ‘‘, the Social Security Act (42

7 U.S.C. 301 et seq.),’’.

8 (b) Section 3701 of title 31, United States Code, is

9 amended by adding at the end the following:

10 ‘‘(e) Section 3718 of this title does not apply to a

11 claim or debt under, or to an amount payable under, the

12 Social Security Act (42 U.S.C. 301 et seq.) owed by a

13 person receiving benefits under that Act or to a claim or

14 debt under, or to an amount payable under, title 26 of

15 the United States Code.’’.

16 SEC. 16503. NOTIFICATION TO AGENCIES OF DEBTORS’

17 MAILING ADDRESSES.

18 Section 3720A of title 31, United States Code is

19 amended by striking ‘‘the individual’s home address.’’ at

20 the end of subsection (c) and inserting the following: ‘‘the

21 person’s mailing address. Provision of this information is

22 authorized by section 6103(m)(2) of the Internal Revenue

23 Code (26 U.S.C. 6103(m)(2)).’’.
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1 Subtitle F—Improving Department

2 of Justice Debt Collection

3 SEC. 16601. DEBT COLLECTION FUND.

4 (a) Section 3011 of title 28, United States Code, is

5 amended to read as follows:

6 ‘‘§ 3011. Establishment of debt collection fund; assess7 ment of surcharge on debt

8 ‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—

9 ‘‘(1) ESTABLISHMENT OF DEBT COLLECTION

10 FUND.—

11 ‘‘(A) There is hereby established in the

12 Treasury a Debt Collection Fund (hereafter re13 ferred to as ‘‘the Fund’’), which shall be avail14 able to the Attorney General to the extent and

15 in such amounts as are provided in advance in

16 appropriations Acts solely for the purposes

17 specified in paragraph (2).

18 ‘‘(B) If at the end of any fiscal year, unap19 propriated balances in the Fund exceed

20 $15,000,000, the excess balances shall be trans21 ferred to the general fund of the Treasury.

22 ‘‘(2) The Attorney General may use amounts

23 appropriated to the Fund to reimburse any appro24 priation or fund of the Department of Justice or any

25 other executive agency for expenses incurred in con-
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1 ducting or providing support to debt collection litiga2 tion, enforcing judgments, and related activities per3 taining to the collection of any debt or monies owed

4 to the United States Government.

5 ‘‘(3) Reimbursement received pursuant to para6 graph (2) shall be used solely for the purposes speci7 fied in that paragraph under authorities available to

8 the receiving appropriation or fund.

9 ‘‘(b) SURCHARGE.—

10 ‘‘(1) ASSESSMENT OF SURCHARGE ON DEBT.—

11 ‘‘(A) In any action in which the United

12 States prevails on its claim for a debt, and sub13 ject to paragraph (b)(1)(B) and (b)(2), the

14 court shall award the United States, and the

15 Department of Justice shall collect and deposit,

16 a surcharge of 10 percent of the total amount

17 of any judgment or settlement which is ap18 proved by the court.

19 ‘‘(B) Paragraph (b)(1)(A) shall not apply

20 if—

21 ‘‘(i) the United States receives an at22 torney’s fee in connection with the enforce23 ment of the claim;
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1 ‘‘(ii) the law upon which the action or

2 claim is based provides any other amount

3 to cover such costs; or

4 ‘‘(iii) the judgment or settlement is

5 for a claim under title 26, United States

6 Code.

7 ‘‘(C) Notwithstanding 31 U.S.C. 3302 or

8 any other statute affecting the crediting of col9 lections, and pursuant to section (b)(2), for fis10 cal year 1994 and thereafter, surcharges col11 lected pursuant to this section shall be depos12 ited in, and collect to, the Fund.

13 ‘‘(2) AUTHORITY TO AWARD AND CREDIT OF

14 SURCHARGES.—The authority of the court to award

15 surcharges and of the Department of Justice to col16 lect and deposit such surcharges pursuant to para17 graph (b)(1) shall be available only to the extent

18 provided in advance in appropriations Acts.’’.

19 (b) The table of sections for chapter 176 of Title 28,

20 United States Code, is amended by amending the item for

21 Section 3011 to read: ‘‘3011. Establishment of debt collec22 tion fund; assessment of surcharge on debt.’’.

23 SEC. 16602. CONTRACTS FOR COLLECTION SERVICES.

24 Subparagraph 3718(B)(1)(A) of title 31, United

25 States Code, is amended by striking the following: ‘‘If the
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1 Attorney General makes a contract for legal services to

2 be furnished in any judicial district of the United States

3 under the first sentence of this paragraph, the Attorney

4 General shall use his best efforts to obtain, from among

5 attorneys regularly engaged in the private practice of law

6 in such district, at least four such contracts with private

7 individuals or firms in such district.’’.

8 Subtitle G—Adjusting Civil

9 Monetary Penalties for Inflation

10 SEC. 16701. ADJUSTING CIVIL MONETARY PENALTIES FOR

11 INFLATION.

12 The Federal Civil Penalties Inflation Adjustment Act

13 of 1990 is amended by—

14 (1) amending section 4 to read as follows: ‘‘The

15 head of each agency shall—

16 ‘‘(1) by regulation, no later than September 30,

17 1994, and at least once every 4 years thereafter, ad18 just each civil monetary penalty provided by law

19 within the jurisdiction of the Federal agency, except

20 for any penalty under title 26, United States Code,

21 by the inflation adjustment described under section

22 5 and publish each such adjustment in the Federal

23 Register; and
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1 ‘‘(2) provide a report to the Secretary of the

2 Treasury by November 15 of each year on all pen3 alties adjusted during the preceding fiscal year.’’;

4 (2) amending subsection 5(a) by striking ‘‘The

5 adjustment described under paragraphs (4) and

6 (5)(A) of section 4’’ and inserting ‘‘The inflation ad7 justment’’; and

8 (3) adding, after section 6, a section 7, as fol9 lows: ‘‘Section 7. Any increase to a civil monetary

10 penalty resulting from this Act shall apply only to

11 violations which occur after the date any such in12 crease takes effect.’’.

13 TITLE XVII—YEAR-END

14 SPENDING

15 SEC. 17001. YEAR-END SPENDING.

16 Section 1301 of title 31, United States Code, is

17 amended by adding the following new subsection at the

18 end:

19 ‘‘(e) Not to exceed 50 percent of unobligated balances

20 remaining available at the end of one fiscal year from ap21 propriations made available for salaries and expenses

22 made for that year shall remain available through Septem23 ber 30 of the following fiscal year for each account for

24 the same purposes. Not to exceed 2 percent of the funds

25 so carried over may be used to pay cash awards to employ-
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1 ees, as authorized by law, and not to exceed 3 percent

2 of the funds may be used for employee training pro3 grams.’’.

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