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[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3666 Enrolled Bill (ENR)]

        H.R.3666

                       One Hundred Fourth Congress

                                 of the

                        United States of America

                          AT THE SECOND SESSION

         Begun and held at the City of Washington on Wednesday,
   the third day of January, one thousand nine hundred and ninety-six

                                 An Act

 
   Making appropriations for the Departments of Veterans Affairs and 
  Housing and Urban Development, and for sundry independent agencies, 
   boards, commissions, corporations, and offices for the fiscal year 
           ending September 30, 1997, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That the following sums 
are appropriated, out of any money in the Treasury not otherwise 
appropriated, for the Departments of Veterans Affairs and Housing and 
Urban Development, and for sundry independent agencies, boards, 
commissions, corporations, and offices for the fiscal year ending 
September 30, 1997, and for other purposes, namely:

                                TITLE I

                     DEPARTMENT OF VETERANS AFFAIRS

                    Veterans Benefits Administration

                       compensation and pensions

                     (including transfers of funds)

    For the payment of compensation benefits to or on behalf of 
veterans as authorized by law (38 U.S.C. 107, chapters 11, 13, 51, 53, 
55, and 61); pension benefits to or on behalf of veterans as authorized 
by law (38 U.S.C. chapters 15, 51, 53, 55, and 61; 92 Stat. 2508); and 
burial benefits, emergency and other officers' retirement pay, 
adjusted-service credits and certificates, payment of premiums due on 
commercial life insurance policies guaranteed under the provisions of 
Article IV of the Soldiers' and Sailors' Civil Relief Act of 1940, as 
amended, and for other benefits as authorized by law (38 U.S.C. 107, 
1312, 1977, and 2106, chapters 23, 51, 53, 55, and 61; 50 U.S.C. App. 
540-548; 43 Stat. 122, 123; 45 Stat. 735; 76 Stat. 1198); 
$18,671,259,000, to remain available until expended: Provided, That not 
to exceed $26,417,000 of the amount appropriated shall be reimbursed to 
``General operating expenses'' and ``Medical care'' for necessary 
expenses in implementing those provisions authorized in the Omnibus 
Budget Reconciliation Act of 1990, and in the Veterans' Benefits Act of 
1992 (38 U.S.C. chapters 51, 53, and 55), the funding source for which 
is specifically provided as the ``Compensation and pensions'' 
appropriation: Provided further, That such sums as may be earned on an 
actual qualifying patient basis, shall be reimbursed to ``Medical 
facilities revolving fund'' to augment the funding of individual 
medical facilities for nursing home care provided to pensioners as 
authorized by the Veterans' Benefits Act of 1992 (38 U.S.C. chapter 
55).

                         readjustment benefits

    For the payment of readjustment and rehabilitation benefits to or 
on behalf of veterans as authorized by 38 U.S.C. chapters 21, 30, 31, 
34, 35, 36, 39, 51, 53, 55, and 61, $1,377,000,000, to remain available 
until expended: Provided, That funds shall be available to pay any 
court order, court award or any compromise settlement arising from 
litigation involving the vocational training program authorized by 
section 18 of Public Law 98-77, as amended.

                   veterans insurance and indemnities

    For military and naval insurance, national service life insurance, 
servicemen's indemnities, service-disabled veterans insurance, and 
veterans mortgage life insurance as authorized by 38 U.S.C. chapter 19; 
70 Stat. 887; 72 Stat. 487, $38,970,000, to remain available until 
expended.

                 guaranty and indemnity program account

                     (including transfer of funds)

    For the cost of direct and guaranteed loans, such sums as may be 
necessary to carry out the program, as authorized by 38 U.S.C. chapter 
37, as amended: Provided, That such costs, including the cost of 
modifying such loans, shall be as defined in section 502 of the 
Congressional Budget Act of 1974, as amended.
    In addition, for administrative expenses to carry out the direct 
and guaranteed loan programs, $105,226,000, which may be transferred to 
and merged with the appropriation for ``General operating expenses''.

                     loan guaranty program account

                      (including transfer of funds)

    For the cost of direct and guaranteed loans, such sums as may be 
necessary to carry out the program, as authorized by 38 U.S.C. chapter 
37, as amended: Provided, That such costs, including the cost of 
modifying such loans, shall be as defined in section 502 of the 
Congressional Budget Act of 1974, as amended.
    In addition, for administrative expenses to carry out the direct 
and guaranteed loan programs, $33,810,000, which may be transferred to 
and merged with the appropriation for ``General operating expenses''.

                      direct loan program account

                     (including transfer of funds)

    For the cost of direct loans, such sums as may be necessary to 
carry out the program, as authorized by 38 U.S.C. chapter 37, as 
amended: Provided, That such costs, including the cost of modifying 
such loans, shall be as defined in section 502 of the Congressional 
Budget Act of 1974, as amended: Provided further, That during 1997, 
within the resources available, not to exceed $300,000 in gross 
obligations for direct loans are authorized for specially adapted 
housing loans.
    In addition, for administrative expenses to carry out the direct 
loan program, $80,000, which may be transferred to and merged with the 
appropriation for ``General operating expenses''.

                  education loan fund program account

                      (including transfer of funds)

    For the cost of direct loans, $1,000, as authorized by 38 U.S.C. 
3698, as amended: Provided, That such costs, including the cost of 
modifying such loans, shall be as defined in section 502 of the 
Congressional Budget Act of 1974, as amended: Provided further, That 
these funds are available to subsidize gross obligations for the 
principal amount of direct loans not to exceed $3,000.
    In addition, for administrative expenses necessary to carry out the 
direct loan program, $195,000, which may be transferred to and merged 
with the appropriation for ``General operating expenses''.

            vocational rehabilitation loans program account

                      (including transfer of funds)

    For the cost of direct loans, $49,000, as authorized by 38 U.S.C. 
chapter 31, as amended: Provided, That such costs, including the cost 
of modifying such loans, shall be as defined in section 502 of the 
Congressional Budget Act of 1974, as amended: Provided further, That 
these funds are available to subsidize gross obligations for the 
principal amount of direct loans not to exceed $2,822,000.
    In addition, for administrative expenses necessary to carry out the 
direct loan program, $377,000, which may be transferred to and merged 
with the appropriation for ``General operating expenses''.

          native american veteran housing loan program account

                      (including transfer of funds)

    For administrative expenses to carry out the direct loan program 
authorized by 38 U.S.C. chapter 37, subchapter V, as amended, $205,000, 
which may be transferred to and merged with the appropriation for 
``General operating expenses''.

                     Veterans Health Administration

                              medical care

    For necessary expenses for the maintenance and operation of 
hospitals, nursing homes, and domiciliary facilities; for furnishing, 
as authorized by law, inpatient and outpatient care and treatment to 
beneficiaries of the Department of Veterans Affairs, including care and 
treatment in facilities not under the jurisdiction of the Department; 
and furnishing recreational facilities, supplies, and equipment; 
funeral, burial, and other expenses incidental thereto for 
beneficiaries receiving care in the Department; administrative expenses 
in support of planning, design, project management, real property 
acquisition and disposition, construction and renovation of any 
facility under the jurisdiction or for the use of the Department; 
oversight, engineering and architectural activities not charged to 
project cost; repairing, altering, improving or providing facilities in 
the several hospitals and homes under the jurisdiction of the 
Department, not otherwise provided for, either by contract or by the 
hire of temporary employees and purchase of materials; uniforms or 
allowances therefor, as authorized by 5 U.S.C. 5901-5902; aid to State 
homes as authorized by 38 U.S.C. 1741; and not to exceed $8,000,000 to 
fund cost comparison studies as referred to in 38 U.S.C. 8110(a)(5); 
$17,008,447,000, plus reimbursements: Provided, That of the funds made 
available under this heading, $700,000,000 is for the equipment and 
land and structures object classifications only, which amount shall not 
become available for obligation until August 1, 1997, and shall remain 
available until September 30, 1998.

                    medical and prosthetic research

    For necessary expenses in carrying out programs of medical and 
prosthetic research and development as authorized by 38 U.S.C. chapter 
73, to remain available until September 30, 1998, $262,000,000, plus 
reimbursements.

      medical administration and miscellaneous operating expenses

    For necessary expenses in the administration of medical, hospital, 
nursing home, domiciliary, construction, supply, and research 
activities, as authorized by law; administrative expenses in support of 
planning, design, project management, architectural, engineering, real 
property acquisition and disposition, construction and renovation of 
any facility under the jurisdiction or for the use of the Department of 
Veterans Affairs, including site acquisition; engineering and 
architectural activities not charged to project cost; and research and 
development in building construction technology; $61,207,000, plus 
reimbursements.

                   transitional housing loan program

                     (including transfer of funds)

    For the cost of direct loans, $7,000, as authorized by Public Law 
102-54, section 8, which shall be transferred from the ``General post 
fund'': Provided, That such costs, including the cost of modifying such 
loans, shall be as defined in section 502 of the Congressional Budget 
Act of 1974, as amended: Provided further, That these funds are 
available to subsidize gross obligations for the principal amount of 
direct loans not to exceed $70,000.
    In addition, for administrative expenses to carry out the direct 
loan program, $54,000, which shall be transferred from the ``General 
post fund'', as authorized by Public Law 102-54, section 8.

                      Departmental Administration

                       general operating expenses

    For necessary operating expenses of the Department of Veterans 
Affairs, not otherwise provided for, including uniforms or allowances 
therefor; not to exceed $25,000 for official reception and 
representation expenses; hire of passenger motor vehicles; and 
reimbursement of the General Services Administration for security guard 
services, and the Department of Defense for the cost of overseas 
employee mail; $827,584,000: Provided, That during fiscal year 1997, 
notwithstanding any other provision of law, the number of individuals 
employed by the Department of Veterans Affairs (1) in other than 
``career appointee'' positions in the Senior Executive Service shall 
not exceed 6, and (2) in schedule C positions shall not exceed 11: 
Provided further, That funds under this heading shall be available to 
administer the Service Members Occupational Conversion and Training 
Act.

                        national cemetery system

    For necessary expenses for the maintenance and operation of the 
National Cemetery System, not otherwise provided for, including 
uniforms or allowances therefor; cemeterial expenses as authorized by 
law; purchase of two passenger motor vehicles for use in cemeterial 
operations; and hire of passenger motor vehicles, $76,864,000.

                      office of inspector general

    For necessary expenses of the Office of Inspector General in 
carrying out the Inspector General Act of 1978, as amended, 
$30,900,000.

                      construction, major projects

    For constructing, altering, extending and improving any of the 
facilities under the jurisdiction or for the use of the Department of 
Veterans Affairs, or for any of the purposes set forth in sections 316, 
2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110, and 8122 of title 38, 
United States Code, including planning, architectural and engineering 
services, maintenance or guarantee period services costs associated 
with equipment guarantees provided under the project, services of 
claims analysts, offsite utility and storm drainage system construction 
costs, and site acquisition, where the estimated cost of a project is 
$3,000,000 or more or where funds for a project were made available in 
a previous major project appropriation, $250,858,000, of which 
$32,100,000 shall be for the replacement hospital at Travis Air Force 
Base, Fairfield, California, and shall not be released for obligation 
prior to January 1, 1998, unless action is taken by the Congress 
specifically making such funds available, and all funds appropriated 
under the above heading are to remain available until expended: 
Provided, That except for advance planning of projects funded through 
the advance planning fund and the design of projects funded through the 
design fund, none of these funds shall be used for any project which 
has not been considered and approved by the Congress in the budgetary 
process: Provided further, That funds provided in this appropriation 
for fiscal year 1997, for each approved project shall be obligated (1) 
by the awarding of a construction documents contract by September 30, 
1997, and (2) by the awarding of a construction contract by September 
30, 1998: Provided further, That the Secretary shall promptly report in 
writing to the Comptroller General and to the Committees on 
Appropriations any approved major construction project in which 
obligations are not incurred within the time limitations established 
above; and the Comptroller General shall review the report in 
accordance with the procedures established by section 1015 of the 
Impoundment Control Act of 1974 (title X of Public Law 93-344): 
Provided further, That no funds from any other account except the 
``Parking revolving fund'', may be obligated for constructing, 
altering, extending, or improving a project which was approved in the 
budget process and funded in this account until one year after 
substantial completion and beneficial occupancy by the Department of 
Veterans Affairs of the project or any part thereof with respect to 
that part only.

                      construction, minor projects

    For constructing, altering, extending, and improving any of the 
facilities under the jurisdiction or for the use of the Department of 
Veterans Affairs, including planning, architectural and engineering 
services, maintenance or guarantee period services costs associated 
with equipment guarantees provided under the project, services of 
claims analysts, offsite utility and storm drainage system construction 
costs, and site acquisition, or for any of the purposes set forth in 
sections 316, 2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110, and 8122 
of title 38, United States Code, where the estimated cost of a project 
is less than $3,000,000; $175,000,000, to remain available until 
expended, along with unobligated balances of previous ``Construction, 
minor projects'' appropriations which are hereby made available for any 
project where the estimated cost is less than $3,000,000: Provided, 
That funds in this account shall be available for (1) repairs to any of 
the nonmedical facilities under the jurisdiction or for the use of the 
Department which are necessary because of loss or damage caused by any 
natural disaster or catastrophe, and (2) temporary measures necessary 
to prevent or to minimize further loss by such causes.

                         parking revolving fund

    For the parking revolving fund as authorized by 38 U.S.C. 8109, 
$12,300,000, together with income from fees collected, to remain 
available until expended, which shall be available for all authorized 
expenses except operations and maintenance costs, which will be funded 
from ``Medical care''.

       grants for construction of state extended care facilities

    For grants to assist States to acquire or construct State nursing 
home and domiciliary facilities and to remodel, modify or alter 
existing hospital, nursing home and domiciliary facilities in State 
homes, for furnishing care to veterans as authorized by 38 U.S.C. 8131-
8137, $47,397,000, to remain available until expended.

        grants for the construction of state veterans cemeteries

    For grants to aid States in establishing, expanding, or improving 
State veteran cemeteries as authorized by 38 U.S.C. 2408, $1,000,000, 
to remain available until expended.

                              franchise fund

                      (including transfer of funds)

    There is hereby established in the Treasury a franchise fund pilot, 
as authorized by section 403 of Public Law 103-356, to be available as 
provided in such section for expenses and equipment necessary for the 
maintenance and operation of such administrative services as the 
Secretary determines may be performed more advantageously as central 
services: Provided, That any inventories, equipment and other assets 
pertaining to the services to be provided by the franchise fund, either 
on hand or on order, less the related liabilities or unpaid 
obligations, and any appropriations made hereafter for the purpose of 
providing capital, shall be used to capitalize the franchise fund: 
Provided further, That the franchise fund may be paid in advance from 
funds available to the Department and other Federal agencies for which 
such centralized services are performed, at rates which will return in 
full all expenses of operation, including accrued leave, depreciation 
of fund plant and equipment, amortization of automated data processing 
(ADP) software and systems (either acquired or donated), and an amount 
necessary to maintain a reasonable operating reserve, as determined by 
the Secretary: Provided further, That the franchise fund shall provide 
services on a competitive basis: Provided further, That an amount not 
to exceed four percent of the total annual income to such fund may be 
retained in the fund for fiscal year 1997 and each fiscal year 
thereafter, to remain available until expended, to be used for the 
acquisition of capital equipment and for the improvement and 
implementation of Departmental financial management, ADP, and other 
support systems: Provided further, That no later than thirty days after 
the end of each fiscal year amounts in excess of this reserve 
limitation shall be transferred to the Treasury: Provided further, That 
such franchise fund pilot shall terminate pursuant to section 403(f) of 
Public Law 103-356.

                       administrative provisions

                      (including transfer of funds)

    Sec. 101. Any appropriation for 1997 for ``Compensation and 
pensions'', ``Readjustment benefits'', and ``Veterans insurance and 
indemnities'' may be transferred to any other of the mentioned 
appropriations.
    Sec. 102. Appropriations available to the Department of Veterans 
Affairs for 1997 for salaries and expenses shall be available for 
services authorized by 5 U.S.C. 3109.
    Sec. 103. No appropriations in this Act for the Department of 
Veterans Affairs (except the appropriations for ``Construction, major 
projects'', ``Construction, minor projects'', and the ``Parking 
revolving fund'') shall be available for the purchase of any site for 
or toward the construction of any new hospital or home.
    Sec. 104. No appropriations in this Act for the Department of 
Veterans Affairs shall be available for hospitalization or examination 
of any persons (except beneficiaries entitled under the laws bestowing 
such benefits to veterans, and persons receiving such treatment under 5 
U.S.C. 7901-7904 or 42 U.S.C. 5141-5204), unless reimbursement of cost 
is made to the ``Medical care'' account at such rates as may be fixed 
by the Secretary of Veterans Affairs.
    Sec. 105. Appropriations available to the Department of Veterans 
Affairs for fiscal year 1997 for ``Compensation and pensions'', 
``Readjustment benefits'', and ``Veterans insurance and indemnities'' 
shall be available for payment of prior year accrued obligations 
required to be recorded by law against the corresponding prior year 
accounts within the last quarter of fiscal year 1996.
    Sec. 106. Appropriations accounts available to the Department of 
Veterans Affairs for fiscal year 1997 shall be available to pay prior 
year obligations of corresponding prior year appropriations accounts 
resulting from title X of the Competitive Equality Banking Act, Public 
Law 100-86, except that if such obligations are from trust fund 
accounts they shall be payable from ``Compensation and pensions''.
    Sec. 107. Notwithstanding any other provision of law, during fiscal 
year 1997, the Secretary of Veterans Affairs shall, from the National 
Service Life Insurance Fund (38 U.S.C. 1920), the Veterans' Special 
Life Insurance Fund (38 U.S.C. 1923), and the United States Government 
Life Insurance Fund (38 U.S.C. 1955), reimburse the ``General operating 
expenses'' account for the cost of administration of the insurance 
programs financed through those accounts: Provided, That reimbursement 
shall be made only from the surplus earnings accumulated in an 
insurance program in fiscal year 1997, that are available for dividends 
in that program after claims have been paid and actuarially determined 
reserves have been set aside: Provided further, That if the cost of 
administration of an insurance program exceeds the amount of surplus 
earnings accumulated in that program, reimbursement shall be made only 
to the extent of such surplus earnings: Provided further, That the 
Secretary shall determine the cost of administration for fiscal year 
1997, which is properly allocable to the provision of each insurance 
program and to the provision of any total disability income insurance 
included in such insurance program.
    Sec. 108. (a) The Secretary of Veterans Affairs may convey, without 
consideration, to the City of Tuscaloosa, Alabama (in this section 
referred to as the ``City''), all right, title, and interest of the 
United States in and to a parcel of real property, including any 
improvements thereon, in the northwest quarter of section 28, township 
21 south, range 9 west, of Tuscaloosa County, Alabama, comprising a 
portion of the grounds of the Department of Veterans Affairs medical 
center, Tuscaloosa, Alabama, and consisting of approximately 9.42 
acres, more or less.
    (b) The conveyance under subsection (a) shall be subject to the 
condition that the City use the real property conveyed under that 
subsection in perpetuity solely for public park or recreational 
purposes.
    (c) The exact acreage and legal description of the real property to 
be conveyed pursuant to this section shall be determined by a survey 
satisfactory to the Secretary of Veterans Affairs. The cost of such 
survey shall be borne by the City.
    (d) The Secretary of Veterans Affairs may require such additional 
terms and conditions in connection with the conveyance under this 
section as the Secretary considers appropriate to protect the interests 
of the United States.

                                TITLE II

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                            Housing Programs

             development of additional new subsidized housing

    For assistance for the purchase, construction, acquisition, or 
development of additional public and subsidized housing units for low 
income families under the United States Housing Act of 1937, as 
amended, (``the Act'' herein) (42 U.S.C. 1437), not otherwise provided 
for, $1,039,000,000, to remain available until expended: Provided, That 
of the total amount provided under this head, $645,000,000 shall be for 
capital advances, including amendments to capital advance contracts, 
for housing for the elderly, as authorized by section 202 of the 
Housing Act of 1959, as amended, and for project rental assistance, and 
amendments to contracts for project rental assistance, for supportive 
housing for the elderly under section 202(c)(2) of the Housing Act of 
1959; and $194,000,000 shall be for capital advances, including 
amendments to capital advance contracts, for supportive housing for 
persons with disabilities, as authorized by section 811 of the 
Cranston-Gonzalez National Affordable Housing Act, and for project 
rental assistance, and amendments to contracts for project rental 
assistance, for supportive housing for persons with disabilities as 
authorized by section 811 of the Cranston-Gonzalez National Affordable 
Housing Act: Provided further, That the Secretary may designate up to 
25 percent of the amounts earmarked under this paragraph for section 
811 of the Cranston-Gonzalez National Affordable Housing Act for 
tenant-based assistance, as authorized under that section, including 
such authority as may be waived under the next proviso, which 
assistance is five years in duration: Provided further, That the 
Secretary may waive any provision of section 202 of the Housing Act of 
1959 and section 811 of the National Affordable Housing Act (including 
the provisions governing the terms and conditions of project rental 
assistance and tenant-based assistance) that the Secretary determines 
is not necessary to achieve the objectives of these programs, or that 
otherwise impedes the ability to develop, operate or administer 
projects assisted under these programs, and may make provision for 
alternative conditions or terms where appropriate: Provided further, 
That of the total amount provided under this head $200,000,000, shall 
be for the development or acquisition cost of public housing for Indian 
families, including amounts for housing under the mutual help 
homeownership opportunity program under section 202 of the Act (42 
U.S.C. 1437bb).

                   prevention of resident displacement

    For activities and assistance to prevent the involuntary 
displacement of low-income families, the elderly and the disabled 
because of the loss of affordable housing stock, expiration of subsidy 
contracts (other than contracts for which amounts are provided under 
the head ``Preserving Existing Housing Investment'') or expiration of 
use restrictions, or other changes in housing assistance arrangements, 
and for other purposes, $4,640,000,000, to remain available until 
expended: Provided, That of the total amount provided under this head, 
$3,600,000,000 shall be for assistance under the United States Housing 
Act of 1937 (42 U.S.C. 1437) for use in connection with expiring or 
terminating section 8 subsidy contracts: Provided further, That the 
Secretary may determine not to apply section 8(o)(6)(B) of the Act to 
housing vouchers during fiscal year 1997: Provided further, That of the 
total amount provided under this head, $850,000,000 shall be for 
amendments to section 8 contracts other than contracts for projects 
developed under section 202 of the Housing Act of 1959, as amended: 
Provided further, That of the total amount provided under this head, 
$190,000,000 shall be for assistance under the United States Housing 
Act of 1937 (42 U.S.C. 1437) to relocate residents of properties (i) 
that are owned by the Secretary and being disposed of; (ii) that are 
discontinuing section 8 project-based assistance; or (iii) subject to 
special workout assistance team intervention compliance actions; for 
the conversion of section 23 projects to assistance under section 8; 
for funds to carry out the family unification program; and for the 
relocation of witnesses in connection with efforts to combat crime in 
public and assisted housing pursuant to a request from a law 
enforcement or prosecution agency: Provided further, That of the total 
amount made available under this head, $50,000,000 shall be made 
available to nonelderly disabled families affected by the designation 
of a public housing development under section 7 of such Act or the 
establishment of preferences in accordance with section 651 of the 
Housing and Community Development Act of 1992 (42 U.S.C. 1361l).

                  preserving existing housing investment

    For operating, maintaining, revitalizing, rehabilitating, 
preserving, and protecting existing housing developments for low-income 
families, and the elderly, and the disabled, $5,750,000,000, to remain 
available until expended: Provided, That of the total amount made 
available under this head, $2,900,000,000 shall be available for 
payments to public housing agencies and Indian housing authorities for 
operating subsidies for low-income housing projects as authorized by 
section 9 of the United States Housing Act of 1937, as amended (42 
U.S.C. 1437g): Provided further, That of the total amount made 
available under this head, $2,500,000,000 shall be available for 
modernization of existing public housing projects as authorized under 
section 14 of the United States Housing Act of 1937, as amended (42 
U.S.C. 1437l), of which $10,000,000 shall be for carrying out 
activities under section 6(j) of the United States Housing Act of 1937 
and technical assistance for the inspection of public housing units, 
contract expertise, and training and technical assistance directly or 
indirectly, under grants, contracts, or cooperative agreements, to 
assist in the oversight and management of public and Indian housing 
(whether or not the housing is being modernized with assistance under 
this proviso) or tenant-based assistance, including, but not limited 
to, an annual resident survey, data collection and analysis, training 
and technical assistance by or to officials and employees of the 
department and of public housing agencies and to residents in 
connection with the public and Indian housing program: Provided 
further, That of the total amount provided under this head, 
$350,000,000 shall be available for use in conjunction with properties 
that are eligible for assistance under the Low-Income Housing 
Preservation and Resident Homeownership Act of 1990 (LIHPRHA) or the 
Emergency Low Income Housing Preservation Act of 1987 (ELIHPA), of 
which $75,000,000 shall be available for obligation until March 1, 1997 
for projects (1) that are subject to a repayment or settlement 
agreement that was executed between the owner and the Secretary prior 
to September 1, 1995; (2) whose submissions were delayed as a result of 
their location in areas that were designated as a Federal disaster area 
in a Presidential Disaster Declaration; or (3) whose processing was, in 
fact or in practical effect, suspended, deferred, or interrupted for a 
period of twelve months or more because of differing interpretations, 
by the Secretary and an owner or by the Secretary and a State or local 
rent regulatory agency, concerning the timing of filing eligibility or 
the effect of a presumptively applicable State or local rent control 
law or regulation on the determination of preservation value under 
section 213 of LIHPRHA, as amended, if the owner of such project filed 
notice of intent to extend the low-income affordability restrictions of 
the housing, or transfer to a qualified purchaser who would extend such 
restrictions, on or before November 1, 1993; and of which, up to 
$100,000,000 may be used for rental assistance to prevent displacement 
of families residing in projects whose owners prepay their mortgages; 
and the balance of which shall be available from the effective date of 
this Act for sales to preferred priority purchasers: Provided further, 
That with the exception of projects described in clauses (1), (2), or 
(3) of the preceding proviso, the Secretary shall, notwithstanding any 
other provision of law, suspend further processing of preservation 
applications which have not heretofore received approval of a plan of 
action: Provided further, That $150,000,000 of amounts recaptured from 
interest reduction payment contracts for section 236 projects whose 
owners prepay their mortgages during fiscal year 1997 shall be 
rescinded: Provided further, That an owner of eligible low-income 
housing may prepay the mortgage or request voluntary termination of a 
mortgage insurance contract, so long as said owner agrees not to raise 
rents for sixty days after such prepayment: Provided further, That such 
developments have been determined to have preservation equity at least 
equal to the lesser of $5,000 per unit or $500,000 per project or the 
equivalent of eight times the most recently published monthly fair 
market rent for the area in which the project is located as the 
appropriate unit size for all of the units in the eligible project: 
Provided further, That the Secretary may modify the regulatory 
agreement to permit owners and priority purchasers to retain rental 
income in excess of the basic rental charge in projects assisted under 
section 236 of the National Housing Act, for the purpose of preserving 
the low- and moderate-income character of the housing: Provided 
further, That eligible low-income housing shall include properties 
meeting the requirements of this paragraph with mortgages that are held 
by a State agency as a result of a sale by the Secretary without 
insurance, which immediately before the sale would have been eligible 
low-income housing under LIHPRHA: Provided further, That 
notwithstanding any other provision of law, subject to the availability 
of appropriated funds, each low-income family, and moderate-income 
family who is elderly or disabled or is residing in a low-vacancy area, 
residing in the housing on the date of prepayment or voluntary 
termination, and whose rent, as a result of a rent increase occurring 
no later than one year after the date of the prepayment, exceeds 30 
percent of adjusted income, shall be offered tenant-based assistance in 
accordance with section 8 or any successor program, under which the 
family shall pay no less for rent than it paid on such date: Provided 
further, That any family receiving tenant-based assistance under the 
preceding proviso may elect (1) to remain in the unit of the housing 
and if the rent exceeds the fair market rent or payment standard, as 
applicable, the rent shall be deemed to be the applicable standard, so 
long as the administering public housing agency finds that the rent is 
reasonable in comparison with rents charged for comparable unassisted 
housing units in the market or (2) to move from the housing and the 
rent will be subject to the fair market rent of the payment standard, 
as applicable, under existing program rules and procedures: Provided 
further, That the tenant-based assistance made available under the 
preceding two provisos are in lieu of benefits provided in subsections 
223(b), (c), and (d) of the Low-Income Housing Preservation and 
Resident Homeownership Act of 1990: Provided further, That any sales 
shall be funded using the capital grant available under section 
220(d)(3)(A) of LIHPRHA: Provided further, That any extensions shall be 
funded using a non-interest-bearing capital (direct) loan by the 
Secretary not in excess of the amount of the cost of rehabilitation 
approved in the plan of action plus 65 percent of the property's 
preservation equity and under such other terms and conditions as the 
Secretary may prescribe: Provided further, That any capital grant shall 
be limited to seven times, and any capital loan limited to six times, 
the annual fair market rent for the project, as determined using the 
fair market rent for fiscal year 1997 for the area in which the project 
is located, using the appropriate apartment sizes and mix in the 
eligible project, except where, upon the request of a priority 
purchaser, the Secretary determines that a greater amount is necessary 
and appropriate to preserve low-income housing: Provided further, That 
section 241(f) of the National Housing Act is repealed and insurance 
under such section shall not be offered as an incentive under LIHPRHA 
and ELIHPA: Provided further, That up to $10,000,000 of the amount of 
$350,000,000 made available by a preceding proviso in this paragraph 
may be used at the discretion of the Secretary to reimburse owners of 
eligible properties for which plans of action were submitted prior to 
the effective date of this Act, but were not executed for lack of 
available funds, with such reimbursement available only for documented 
costs directly applicable to the preparation of the plan of action as 
determined by the Secretary, and shall be made available on terms and 
conditions to be established by the Secretary: Provided further, That, 
notwithstanding any other provision of law, a priority purchaser may 
utilize assistance under the HOME Investment Partnerships Act or the 
Low Income Housing Tax Credit: Provided further, That projects with 
approved plans of action which exceed the limitations on eligibility 
for funding imposed by this Act may submit revised plans of action 
which conform to these limitations by March 1, 1997, and retain the 
priority for funding otherwise applicable from the original date of 
approval of their plan of action, subject to securing any additional 
necessary funding commitments by August 1, 1997.

           revitalization of severely distressed public housing

    For grants to public housing agencies for assisting in the 
demolition of obsolete public housing projects or portions thereof, the 
revitalization (where appropriate) of sites (including remaining public 
housing units) on which such projects are located, replacement housing 
which will avoid or lessen concentrations of very low-income families, 
and tenant-based assistance in accordance with section 8 of the United 
States Housing Act of 1937; and for providing replacement housing and 
assisting tenants to be displaced by the demolition, $550,000,000, to 
remain available until expended, of which the Secretary may use up to 
$2,500,000 for technical assistance, to be provided directly or 
indirectly by grants, contracts or cooperative agreements, including 
training and cost of necessary travel for participants in such 
training, by or to officials and employees of the Department and of 
public housing agencies and to residents: Provided, That no funds 
appropriated in this title shall be used for any purpose that is not 
provided for herein, in the Housing Act of 1937, in the Appropriations 
Acts for Veterans Affairs, Housing and Urban Development, and 
Independent Agencies, for the fiscal years 1993, 1994, and 1995, and 
the Omnibus Consolidated Rescissions and Appropriations Act of 1996: 
Provided further, That none of such funds shall be used directly or 
indirectly by granting competitive advantage in awards to settle 
litigation or pay judgments, unless expressly permitted herein: 
Provided further, That, notwithstanding any other provision of law, the 
funds made available to the Housing Authority of New Orleans under HOPE 
VI for purposes of Desire Homes, shall not be obligated or expended for 
on-site construction until an independent third party has determined 
whether the site is appropriate.

              drug elimination grants for low-income housing

                      (including transfer of funds)

    For grants to public and Indian housing agencies for use in 
eliminating crime in public housing projects authorized by 42 U.S.C. 
11901-11908, for grants for federally assisted low-income housing 
authorized by 42 U.S.C. 11909, and for drug information clearinghouse 
services authorized by 42 U.S.C. 11921-11925, $290,000,000, to remain 
available until expended, $10,000,000 of which shall be for grants, 
technical assistance, contracts and other assistance training, program 
assessment, and execution for or on behalf of public housing agencies 
and resident organizations (including the cost of necessary travel for 
participants in such training), $5,000,000 of which shall be used in 
connection with efforts to combat violent crime in public and assisted 
housing under the Operation Safe Home Program administered by the 
Inspector General of the Department of Housing and Urban Development, 
and $5,000,000 of which shall be provided to the Office of Inspector 
General for Operation Safe Home: Provided, That the term ``drug-related 
crime'', as defined in 42 U.S.C. 11905(2), shall also include other 
types of crime as determined by the Secretary: Provided further, That 
notwithstanding section 5130(c) of the Anti-Drug Abuse Act of 1988 (42 
U.S.C. 11909(c)), the Secretary may determine not to use any such funds 
to provide public housing youth sports grants.

           indian housing loan guarantee fund program account

    For the cost of guaranteed loans, as authorized by section 184 of 
the Housing and Community Development Act of 1992 (106 Stat. 3739), 
$3,000,000: Provided, That such costs, including the costs of modifying 
such loans, shall be as defined in section 502 of the Congressional 
Budget Act of 1974, as amended: Provided further, That these funds are 
available to subsidize total loan principal, any part of which is to be 
guaranteed, not to exceed $36,900,000.

                   Community Planning and Development

                community development block grants fund

                     (including transfer of funds)

    For grants to States and units of general local government and for 
related expenses, not otherwise provided for, to carry out a community 
development grants program as authorized by title I of the Housing and 
Community Development Act of 1974, as amended (the ``Act'' herein) (42 
U.S.C. 5301), $4,600,000,000, to remain available until September 30, 
1999, of which $67,000,000 shall be for grants to Indian tribes 
notwithstanding section 106(a)(1) of the Act: Provided, That $2,100,000 
shall be available as a grant to the Housing Assistance Council, 
$1,500,000 shall be available as a grant to the National American 
Indian Housing Council, and $49,000,000 shall be available for grants 
pursuant to section 107 of such Act, including up to $14,000,000 for 
the development and operation of a management information system: 
Provided further, That not to exceed 20 percent of any grant made with 
funds appropriated herein (other than a grant made available under the 
preceding proviso to the Housing Assistance Council or the National 
American Indian Housing Council, or a grant using funds under section 
107(b)(3) of the Housing and Community Development Act of 1974, as 
amended) shall be expended for ``Planning and Management Development'' 
and ``Administration'' as defined in regulations promulgated by the 
Department: Provided further, That for fiscal year 1997 and thereafter, 
section 105(a)(25) of such Act, shall continue to be effective and the 
termination and conforming provisions of section 907(b)(2) of the 
Cranston-Gonzalez National Affordable Housing Act shall not be 
effective: Provided further, That section 916(f) of the Cranston-
Gonzalez National Affordable Housing Act is repealed.
    Of the amount provided under this heading, the Secretary of Housing 
and Urban Development may use up to $60,000,000 for grants to public 
housing agencies (including Indian housing authorities), nonprofit 
corporations, and other appropriate entities for a supportive services 
program to assist residents of public and assisted housing, former 
residents of such housing receiving tenant-based assistance under 
section 8 of such Act (42 U.S.C. 1437f), and other low-income families 
and individuals to become self-sufficient: Provided, That the program 
shall provide supportive services, principally for the benefit of 
public housing residents, to the elderly and the disabled, and to 
families with children where the head of household would benefit from 
the receipt of supportive services and is working, seeking work, or is 
preparing for work by participating in job training or educational 
programs: Provided further, That the supportive services may include 
congregate services for the elderly and disabled, service coordinators, 
and coordinated educational, training, and other supportive services, 
including academic skills training, job search assistance, assistance 
related to retaining employment, vocational and entrepreneurship 
development and support programs, transportation, and child care: 
Provided further, That the Secretary shall require applications to 
demonstrate firm commitments of funding or services from other sources: 
Provided further, That the Secretary shall select public and Indian 
housing agencies to receive assistance under this head on a competitive 
basis, taking into account the quality of the proposed program 
(including any innovative approaches, the extent of the proposed 
coordination of supportive services, the extent of commitments of 
funding or services from other sources, the extent to which the 
proposed program includes reasonably achievable, quantifiable goals for 
measuring performance under the program over a three-year period, the 
extent of success an agency has had in carrying out other comparable 
initiatives, and other appropriate criteria established by the 
Secretary): Provided further, That from the foregoing $60,000,000, up 
to $5,000,000 shall be available for the Tenant Opportunity Program, 
and up to $5,000,000 shall be available for the Moving to Work 
Demonstration for public housing families.
    Of the amount made available under this heading, notwithstanding 
any other provision of law, $20,000,000 shall be available for grants 
to entities managing or operating public housing developments, 
federally-assisted multifamily-housing developments, or other 
multifamily-housing developments for low-income families supported by 
non-Federal governmental entities or similar housing developments 
supported by nonprofit private sources, to reimburse local law 
enforcement entities for additional police presence in and around such 
housing developments; to provide or augment such security services by 
other entities or employees of the recipient agency; to assist in the 
investigation and/or prosecution of drug related criminal activity in 
and around such developments; and to provide assistance for the 
development of capital improvements at such developments directly 
relating to the security of such developments: Provided, That such 
grants shall be made on a competitive basis as specified in section 102 
of the HUD Reform Act.
    Of the amount made available under this heading, notwithstanding 
any other provision of law, $30,000,000 shall be available for 
youthbuild program activities authorized by subtitle D of title IV of 
the Cranston-Gonzalez National Affordable Housing Act, as amended, and 
such activities shall be an eligible activity with respect to any funds 
made available under this heading.
    Of the amount made available under this heading, notwithstanding 
any other provision of law, $60,000,000 shall be available for the 
lead-based paint hazard reduction program as authorized under sections 
1011 and 1053 of the Residential Lead-Based Hazard Reduction Act of 
1992.
    For the cost of guaranteed loans, $31,750,000, as authorized by 
section 108 of the Housing and Community Development Act of 1974: 
Provided, That such costs, including the cost of modifying such loans, 
shall be as defined in section 502 of the Congressional Budget Act of 
1974, as amended: Provided further, That these funds are available to 
subsidize total loan principal, any part of which is to be guaranteed, 
not to exceed $1,500,000,000, notwithstanding any aggregate limitation 
on outstanding obligations guaranteed in section 108(k) of the Housing 
and Community Development Act of 1974. In addition, for administrative 
expenses to carry out the guaranteed loan program, $675,000 which shall 
be transferred to and merged with the appropriation for departmental 
salaries and expenses.

                   home investment partnerships program

    For the HOME investment partnerships program, as authorized under 
title II of the Cranston-Gonzalez National Affordable Housing Act 
(Public Law 101-625), as amended, $1,400,000,000, to remain available 
until expended: Provided, That $21,000,000 shall be available for 
grants to Indian Tribes: Provided further, That up to 0.5 percent, but 
not less than $7,000,000, shall be available for the development and 
operation of a management information system: Provided further, That 
$15,000,000 shall be available for Housing Counseling under section 106 
of the Housing and Urban Development Act of 1968.

                       homeless assistance funds

    For the emergency shelter grants program (as authorized under 
subtitle B of title IV of the Stewart B. McKinney Homeless Assistance 
Act (Public Law 100-77), as amended); the supportive housing program 
(as authorized under subtitle C of title IV of such Act); the section 8 
moderate rehabilitation single room occupancy program (as authorized 
under the United States Housing Act of 1937, as amended) to assist 
homeless individuals pursuant to section 441 of the Stewart B. McKinney 
Homeless Assistance Act; and the shelter plus care program (as 
authorized under subtitle F of title IV of such Act), $823,000,000, to 
remain available until expended.

              housing opportunities for persons with aids

                      (including transfer of funds)

    For carrying out the Housing Opportunities for Persons with AIDS 
program, as authorized by the AIDS Housing Opportunity Act (42 U.S.C. 
12901), $171,000,000, to remain available until expended: Provided, 
That any amounts previously appropriated for such program, and any 
related assets and liabilities, in the ``Annual contributions for 
assisted housing'' account, shall be transferred to and merged with 
amounts in this account.

                     Federal Housing Administration

             fha--mutual mortgage insurance program account

                     (including transfers of funds)

    During fiscal year 1997, commitments to guarantee loans to carry 
out the purposes of section 203(b) of the National Housing Act, as 
amended, shall not exceed a loan principal of $110,000,000,000: 
Provided, That during fiscal year 1997, the Secretary shall sell 
assigned mortgage notes having an unpaid principal balance of up to 
$2,000,000,000, which notes were originally insured under section 
203(b) of the National Housing Act: Provided further, That the 
Secretary may use the amount of any negative subsidy resulting from the 
sale of such assigned mortgage notes during fiscal year 1997 for the 
purposes included under this heading.
    During fiscal year 1997, obligations to make direct loans to carry 
out the purposes of section 204(g) of the National Housing Act, as 
amended, shall not exceed $200,000,000: Provided, That the foregoing 
amount shall be for loans to nonprofit and governmental entities in 
connection with sales of single family real properties owned by the 
Secretary and formerly insured under section 203 of such Act.
    For administrative expenses necessary to carry out the guaranteed 
and direct loan program, $350,595,000, to be derived from the FHA-
mutual mortgage insurance guaranteed loans receipt account, of which 
not to exceed $343,483,000 shall be transferred to the appropriation 
for departmental salaries and expenses; and of which not to exceed 
$7,112,000 shall be transferred to the appropriation for the Office of 
Inspector General.

             fha--general and special risk program account

                     (including transfers of funds)

    For the cost of guaranteed loans, as authorized by sections 238 and 
519 of the National Housing Act (12 U.S.C. 1715z-3 and 1735c), 
including the cost of loan guarantee modifications (as that term is 
defined in section 502 of the Congressional Budget Act of 1974, as 
amended) $85,000,000, to remain available until expended: Provided, 
That these funds are available to subsidize total loan principal, any 
part of which is to be guaranteed, of up to $17,400,000,000: Provided 
further, That during fiscal year 1997, the Secretary shall sell 
assigned notes having an unpaid principal balance of up to 
$2,500,000,000, which notes are held by the Secretary under the General 
Insurance and Special Risk Insurance funds: Provided further, That any 
amounts made available in any prior appropriations Act for the cost (as 
such term is defined in section 502 of the Congressional Budget Act of 
1974) of guaranteed loans that are obligations of the funds established 
under section 238 or 519 of the National Housing Act that have not been 
obligated or that are deobligated shall be available to the Secretary 
of Housing and Urban Development in connection with the making of such 
guarantees and shall remain available until expended, notwithstanding 
the expiration of any period of availability otherwise applicable to 
such amounts.
    Gross obligations for the principal amount of direct loans, as 
authorized by sections 204(g), 207(l), 238(a), and 519(a) of the 
National Housing Act, shall not exceed $120,000,000; of which not to 
exceed $100,000,000 shall be for bridge financing in connection with 
the sale of multifamily real properties owned by the Secretary and 
formerly insured under such Act; and of which not to exceed $20,000,000 
shall be for loans to nonprofit and governmental entities in connection 
with the sale of single-family real properties owned by the Secretary 
and formerly insured under such Act.
    In addition, for administrative expenses necessary to carry out the 
guaranteed and direct loan programs, $207,470,000, of which 
$203,299,000 shall be transferred to the appropriation for departmental 
salaries and expenses; and of which $4,171,000 shall be transferred to 
the appropriation for the Office of Inspector General.

                Government National Mortgage Association

guarantees of mortgage-backed securities loan guarantee program account

                     (including transfer of funds)

    During fiscal year 1997, new commitments to issue guarantees to 
carry out the purposes of section 306 of the National Housing Act, as 
amended (12 U.S.C. 1721(g)), shall not exceed $110,000,000,000.
    For administrative expenses necessary to carry out the guaranteed 
mortgage-backed securities program, $9,383,000, to be derived from the 
GNMA-guarantees of mortgage-backed securities guaranteed loan receipt 
account, of which not to exceed $9,383,000 shall be transferred to the 
appropriation for departmental salaries and expenses.

                    Policy Development and Research

                        research and technology

    For contracts, grants, and necessary expenses of programs of 
research and studies relating to housing and urban problems, not 
otherwise provided for, as authorized by title V of the Housing and 
Urban Development Act of 1970, as amended (12 U.S.C. 1701z-1 et seq.), 
including carrying out the functions of the Secretary under section 
1(a)(1)(i) of Reorganization Plan No. 2 of 1968, $34,000,000, to remain 
available until September 30, 1998.

                   Fair Housing and Equal Opportunity

                        fair housing activities

    For contracts, grants, and other assistance, not otherwise provided 
for, as authorized by title VIII of the Civil Rights Act of 1968, as 
amended by the Fair Housing Amendments Act of 1988, and section 561 of 
the Housing and Community Development Act of 1987, as amended, 
$30,000,000, to remain available until September 30, 1998, of which 
$15,000,000 shall be to carry out activities pursuant to section 561. 
No funds made available under this heading shall be used to lobby the 
executive or legislative branches of the Federal Government in 
connection with a specific contract, grant or loan.

                     Management and Administration

                         salaries and expenses

                     (including transfer of funds)

    For necessary administrative and non-administrative expenses of the 
Department of Housing and Urban Development, not otherwise provided 
for, including not to exceed $7,000 for official reception and 
representation expenses, $976,840,000, of which $15,000,000 may be used 
for additional retraining, relocation, permanent change of station, and 
other activities related to downsizing only upon submission of a 
detailed and specific, multi-year downsizing plan to the Committees on 
Appropriations of the House of Representatives and the Senate, and of 
which $546,782,000 shall be provided from the various funds of the 
Federal Housing Administration, $9,383,000 shall be provided from funds 
of the Government National Mortgage Association, and $675,000 shall be 
provided from the Community Development Grants Program account.

                       Office of Inspector General

                     (including transfer of funds)

    For necessary expenses of the Office of Inspector General in 
carrying out the provisions of the Inspector General Act of 1978, as 
amended, $52,850,000, of which $11,283,000 shall be provided from the 
various funds of the Federal Housing Administration and $5,000,000 
shall be transfered from the amount earmarked for Operation Safe Home 
in the Drug elimination grants for low income housing account.

             Office of Federal Housing Enterprise Oversight

                         salaries and expenses

                     (including transfer of funds)

    For carrying out the Federal Housing Enterprise Financial Safety 
and Soundness Act of 1992, $15,500,000, to remain available until 
expended, from the Federal Housing Enterprise Oversight Fund: Provided, 
That such amounts shall be collected by the Director as authorized by 
section 1316 (a) and (b) of such Act, and deposited in the Fund under 
section 1316(f) of such Act.

                       administrative provisions

    Sec. 201. Extenders.--(a) Public Housing Funding Flexi- bility.--
Section 201(a)(2) of the Departments of Veterans Affairs and Housing 
and Urban Development, and Independent Agencies Appropriations Act, 
1996 is amended by striking ``1996'' and inserting ``1997''.
    (b) One-for-One Replacement of Public and Indian Housing.--Section 
1002(d) of Public Law 104-19 is amended by striking ``before September 
30, 1996'' and inserting ``on or before September 30, 1997''.
    (c) Public and Assisted Housing Rents, Income Adjustments, and 
Preferences.--(1)(A) Section 402(a) of The Balanced Budget Downpayment 
Act, I is amended--
        (i) by striking ``effective for fiscal year 1996 and no later 
    than October 30, 1995'' and inserting ``and subsection (f) of this 
    section, effective for fiscal year 1997'';
        (ii) in paragraphs (1), (2), and (4), by striking ``not less 
    than $25, and may require a minimum monthly rent of''; and
        (iii) in paragraph (3), by striking ``not less than $25 for the 
    unit, and may require a minimum monthly rent of''.
    (B) Section 230 of Public Law 104-134 is hereby repealed.
    (2) Section 402(f) of The Balanced Budget Downpayment Act, I is 
amended by striking ``fiscal year 1996'' and inserting ``fiscal years 
1996 and 1997''.
    (d) Applicability to IHAs.--In accordance with section 201(b)(2) of 
the United States Housing Act of 1937, the amendments made by 
subsections (a), (b), and (c) shall apply to public housing developed 
or operated pursuant to a contract between the Secretary of Housing and 
Urban Development and an Indian housing authority.
    (e) Streamlining Section 8 Tenant-Based Assistance.--Section 203(d) 
of the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1996 is 
amended by striking ``fiscal year 1996'' and inserting ``fiscal years 
1996 and 1997''.
    (f) Section 8 Fair Market Rentals and Delay in Reissuance.--(1) The 
first sentence of section 403(a) of the Balanced Budget Downpayment 
Act, I, is amended by striking ``1996'' and inserting ``1997''.
    (2) Section 403(c) of such Act is amended--
        (A) by striking ``fiscal year 1996'' and inserting ``fiscal 
    years 1996 and 1997''; and
        (B) by inserting before the semicolon the following: ``for 
    assistance made available during fiscal year 1996 and October 1, 
    1997 for assistance made available during fiscal year 1997''.
    (g) Section 8 Rent Adjustments.--Section 8(c)(2)(A) of the United 
States Housing Act of 1937 is amended--
        (1) in the third sentence by inserting ``, fiscal year 1996 
    prior to April 26, 1996, and fiscal year 1997'' after ``1995'';
        (2) in the fourth sentence, by striking ``For'' and inserting 
    ``Except for assistance under the certificate program, for'';
        (3) after the fourth sentence, by inserting the following new 
    sentence: ``In the case of assistance under the certificate 
    program, 0.01 shall be subtracted from the amount of the annual 
    adjustment factor (except that the factor shall not be reduced to 
    less than 1.0), and the adjusted rent shall not exceed the rent for 
    a comparable unassisted unit of similar quality, type, and age in 
    the market area.''; and
        (4) in the last sentence, by--
            (A) striking ``sentence'' and inserting ``two sentences''; 
        and
            (B) inserting ``, fiscal year 1996 prior to April 26, 1996, 
        and fiscal year 1997'' after ``1995''.
    Sec. 202. Administrative Fees.--Notwithstanding section 8(q) of the 
United States Housing Act of 1937, as amended--
    (a) The Secretary shall establish fees for the cost of 
administering the certificate, voucher and moderate rehabilitation 
programs.
        (1)(A) For fiscal year 1997, the fee for each month for which a 
    dwelling unit is covered by an assistance contract shall be 7.5 
    percent of the base amount, adjusted as provided herein, in the 
    case of an agency that, on an annual basis, is administering a 
    program of no more than 600 units, and 7 percent of the base 
    amount, adjusted as provided herein, for each additional unit above 
    600.
        (B) The base amount shall be the higher of--
            (i) the fair market rental for fiscal year 1993 for a 2-
        bedroom existing rental dwelling unit in the market area of the 
        agency; and
            (ii) such fair market rental for fiscal year 1994, but not 
        more than 103.5 percent of the amount determined under clause 
        (i).
        (C) The base amount shall be adjusted to reflect changes in the 
    wage data or other objectively measurable data that reflect the 
    costs of administering the program during fiscal year 1996; except 
    that the Secretary may require that the base amount be not less 
    than a minimum amount and not more than a maximum amount.
        (2) For subsequent fiscal years, the Secretary shall publish a 
    notice in the Federal Register, for each geographic area, 
    establishing the amount of the fee that would apply for the 
    agencies administering the program, based on changes in wage data 
    or other objectively measurable data that reflect the cost of 
    administering the program, as determined by the Secretary.
        (3) The Secretary may increase the fee if necessary to reflect 
    higher costs of administering small programs and programs operating 
    over large geographic areas.
        (4) The Secretary may decrease the fee for PHA-owned units.
    (b) Beginning in fiscal year 1997 and thereafter, the Secretary 
shall also establish reasonable fees (as determined by the Secretary) 
for--
        (1) the costs of preliminary expenses, in the amount of $500, 
    for a public housing agency, but only in the first year it 
    administers a tenant-based assistance program under the United 
    States Housing Act of 1937 and only if, immediately before the 
    effective date of this Act, it was not administering a tenant-based 
    assistance program under the 1937 Act (as in effect immediately 
    before the effective date of this Act), in connection with its 
    initial increment of assistance received;
        (2) the costs incurred in assisting families who experience 
    difficulty (as determined by the Secretary) in obtaining 
    appropriate housing under the program; and
        (3) extraordinary costs approved by the Secretary.
    Sec. 203. Single Family Assignment Program.--Section 407(c) of the 
Balanced Budget Downpayment Act, I (12 U.S.C. 1710 note), is amended by 
striking ``October 1, 1996'' and inserting ``October 1, 1997''.
    Sec. 204. Flexible Authority.--During fiscal year 1997 and fiscal 
years thereafter, the Secretary may manage and dispose of multifamily 
properties owned by the Secretary and multifamily mortgages held by the 
Secretary on such terms and conditions as the Secretary may determine, 
notwithstanding any other provision of law.
    Sec. 205. Use of Available Funding for Homeownership.--Up to 
$20,000,000 of amounts of unobligated balances that are or become 
available from the Nehemiah Housing Opportunity Grant program, repealed 
under section 289(b) of the Cranston-Gonzalez National Affordable 
Housing Act, Public Law 101-625, shall be available for use for 
activities relating to promotion and implementation of homeownership in 
targeted geographic areas, as determined by the Secretary. Any grant or 
assistance made under this section shall be made in accordance with 
section 102 of the Department of Housing and Urban Development Reform 
Act of 1989 on a competitive basis.
    Sec. 206. Debt Forgiveness.--The Secretary of Housing and Urban 
Development shall cancel the indebtedness of the Greene County Rural 
Health Center relating to a loan received under the Public Facility 
Loan program to establish the health center (Loan #Mis-22-PFL0096). The 
Greene County Rural Health Center is hereby relieved of all liability 
to the Federal Government for such loan and any fees and charges 
payable in connection with such loan.
    Sec. 207. Flexible Subsidy Fund.--From the fund established by 
section 236(g) of the National Housing Act, as amended, all uncommitted 
balances of excess rental charges as of September 30, 1996, and any 
collection during fiscal year 1997, shall be transferred, as authorized 
under such section, to the fund authorized under section 201(j) of the 
Housing and Community Development Amendments of 1978, as amended.
    Sec. 208. Rental Housing Assistance.--The limitation otherwise 
applicable to the maximum payments that may be required in any fiscal 
year by all contracts entered into under section 236 of the National 
Housing Act (12 U.S.C. 1715z-1) is reduced in fiscal year 1997 by not 
more than $2,000,000 in uncommitted balances of authorizations provided 
for this purpose in appropriations Acts.
    Sec. 209. D.C. Modernization Funding.--Notwithstanding the 
provisions of section 14(k)(5)(D) of the United States Housing Act of 
1937, the withheld modernization funds that became credited in fiscal 
years 1993, 1994, and 1995, due to the troubled status of the former 
Department of Public and Assisted Housing of the District of Columbia, 
shall be made available without diminution to its successor, the 
District of Columbia Housing Authority, at such time between the 
effective date of this Act and the end of fiscal year 1998 as the 
District of Columbia Housing Authority is no longer deemed ``mod-
troubled'' under section 6(j)(2)(A)(i) of such Act; after fiscal year 
1998, the District of Columbia Housing Authority shall become subject 
to the provisions of section 14(k)(5)(D) of such Act should it remain 
mod-troubled.
    Sec. 210. (a) Financing Adjustment Factors.--Fifty per centum of 
the amounts of budget authority, or in lieu thereof 50 per centum of 
the cash amounts associated with such budget authority, that are 
recaptured from projects described in section 1012(a) of the Stewart B. 
McKinney Homeless Assistance Amendments Act of 1988 (Public Law 100-
628, 102 Stat. 3224, 3268) shall be rescinded, or in the case of cash, 
shall be remitted to the Treasury, and such amounts of budget authority 
or cash recaptured and not rescinded or remitted to the Treasury shall 
be used by State housing finance agencies or local governments or local 
housing agencies with projects approved by the Secretary of Housing and 
Urban Development for which settlement occurred after January 1, 1992, 
in accordance with such section.
    (b) In addition to amounts otherwise provided by this Act, $464,442 
is appropriated to the Department of Housing and Urban Development for 
payment to the Utah Housing Finance Agency, in lieu of amounts lost to 
such agency in bond refinancings during 1994, for its use in accordance 
with subsection (a).
    Sec. 211. Section 8 Contract Renewal Authority.--(a) Definitions.--
For purposes of this section--
        (1) the term ``expiring contract'' means a contract for 
    project-based assistance under section 8 of the United States 
    Housing Act of 1937 that expires during fiscal year 1997;
        (2) the term ``family'' has the same meaning as in section 3(b) 
    of the United States Housing Act of 1937;
        (3) the term ``multifamily housing project'' means a property 
    consisting of more than 4 dwelling units that is covered in whole 
    or in part by a contract for project-based assistance under section 
    8 of the United States Housing Act of 1937;
        (4) the term ``owner'' has the same meaning as in section 8(f) 
    of the United States Housing Act of 1937;
        (5) the term ``project-based assistance'' means rental 
    assistance under section 8 of the United States Housing Act of 1937 
    that is attached to a multifamily housing project;
        (6) the term ``public agency'' means a State housing finance 
    agency, a local housing agency, or other agency with a public 
    purpose and status;
        (7) the term ``Secretary'' means the Secretary of Housing and 
    Urban Development; and
        (8) the term ``tenant-based assistance'' has the same meaning 
    as in section 8(f) of the United States Housing Act of 1937.
    (b) Section 8 Contract Renewal Authority.--
        (1) In general.--Notwithstanding section 405(a) of the Balanced 
    Budget Downpayment Act, I, upon the request of the owner of a 
    multifamily housing project that is covered by an expiring 
    contract, the Secretary shall use amounts made available for the 
    renewal of assistance under section 8 of the United States Housing 
    Act of 1937 to renew the expiring contract as project-based 
    assistance for a period of not more than one year, at rent levels 
    that are equal to those under the expiring contract as of the date 
    on which the contract expires: Provided, That those rent levels do 
    not exceed 120 percent of the fair market rent for the market area 
    in which the project is located. For an FHA-insured multifamily 
    housing project with an expiring contract at rent levels that 
    exceed 120 percent of the fair market rent for the market area, the 
    Secretary shall provide, at the request of the owner, section 8 
    project-based assistance, for a period of not more than one year, 
    at rent levels that do not exceed 120 percent of the fair market 
    rent.
        (2) Exemption for state and local housing agency projects.--
    Notwithstanding paragraph (1), upon the expiration of a contract 
    with rent levels that exceed the percentage described in that 
    paragraph, if the Secretary determines that the primary financing 
    or mortgage insurance for the multifamily housing project that is 
    covered by that expiring contract was provided by a public agency, 
    the Secretary shall, at the request of the owner and the public 
    agency, renew the expiring contract--
            (A) for a period of not more than one year; and
            (B) at rent levels that are equal to those under the 
        expiring contract as of the date on which the contract expires.
        (3) Section 202, section 811, and section 515 projects.--
    Notwithstanding paragraph (1), for section 202 projects, section 
    811 projects and section 515 projects, upon the expiration of a 
    section 8 contract, the Secretary shall, at the request of the 
    owner, renew the expiring contract--
            (A) for a period of not more than one year; and
            (B) at rent levels that are equal to those under the 
        expiring contract as of the date on which the contract expires.
        (4) Other contracts.--
            (A) Participation in demonstration.--For a contract 
        covering an FHA-insured multifamily housing project that 
        expires during fiscal year 1997 with rent levels that exceed 
        the percentage described in paragraph (1) and after notice to 
        the tenants, the Secretary shall, at the request of the owner 
        of the project and after notice to the tenants, include that 
        multifamily housing project in the demonstration program under 
        section 212 of this Act. The Secretary shall ensure that a 
        multifamily housing project with an expiring contract in fiscal 
        year 1997 shall be allowed to be included in the demonstration.
            (B) Effect of material adverse actions and omissions.--
        Notwithstanding paragraph (1) or any other provision of law, 
        the Secretary shall not renew an expiring contract if the 
        Secretary determines that the owner of the multifamily housing 
        project has engaged in material adverse financial or managerial 
        actions or omissions with regard to the project (or with regard 
        to other similar projects if the Secretary determines that such 
        actions or omissions constitute a pattern of mismanagement that 
        would warrant suspension or debarment by the Secretary).
            (C) Transfer of property.--For properties disqualified from 
        the demonstration program because of actions by an owner or 
        purchaser in accordance with subparagraph (B), the Secretary 
        shall establish procedures to facilitate the voluntary sale or 
        transfer of the property, with a preference for tenant 
        organizations and tenant-endorsed community-based nonprofit and 
        public agency purchasers meeting such reasonable qualifications 
        as may be established by the Secretary. The Secretary may 
        include the transfer of section 8 project-based assistance.
        (5) Tenant protections.--Any family residing in an assisted 
    unit in a multifamily housing project that is covered by an 
    expiring contract that is not renewed, shall be offered tenant-
    based assistance before the date on which the contract expires or 
    is not renewed.
    Sec. 212. FHA Multifamily Demonstration Authority.--(a) In 
General.--
        (1) Repeal.--
            (A) In general.--Section 210 of the Departments of Veterans 
        Affairs and Housing and Urban Development and Independent 
        Agencies Appropriations Act, 1996 (110 Stat. 1321) is repealed.
            (B) Exception.--Notwithstanding the repeal under 
        subparagraph (A), amounts made available under section 210(f) 
        the Departments of Veterans Affairs and Housing and Urban 
        Development and Independent Agencies Appropriations Act, 1996 
        shall remain available for the demonstration program under this 
        section through the end of fiscal year 1997.
        (2) Savings provisions.--Nothing in this section shall be 
    construed to affect any commitment entered into before the date of 
    enactment of this Act under the demonstration program under section 
    210 of the Departments of Veterans Affairs and Housing and Urban 
    Development and Independent Agencies Appropriations Act, 1996.
        (3) Definitions.--For purposes of this section--
            (A) the term ``demonstration program'' means the program 
        established under subsection (b);
            (B) the term ``expiring contract'' means a contract for 
        project-based assistance under section 8 of the United States 
        Housing Act of 1937 that expires during fiscal year 1997;
            (C) the term ``family'' has the same meaning as in section 
        3(b) of the United States Housing Act of 1937;
            (D) the term ``multifamily housing project'' means a 
        property consisting of more than 4 dwelling units that is 
        covered in whole or in part by a contract for project-based 
        assistance;
            (E) the term ``owner'' has the same meaning as in section 
        8(f) of the United States Housing Act of 1937;
            (F) the term ``project-based assistance'' means rental 
        assistance under section 8 of the United States Housing Act of 
        1937 that is attached to a multifamily housing project;
            (G) the term ``Secretary'' means the Secretary of Housing 
        and Urban Development; and
            (H) the term ``tenant-based assistance'' has the same 
        meaning as in section 8(f) of the United States Housing Act of 
        1937.
    (b) Demonstration Authority.--
        (1) In general.--Subject to the funding limitation in 
    subsection (l), the Secretary shall administer a demonstration 
    program with respect to multifamily projects--
            (A) whose owners agree to participate;
            (B) with rents on units assisted under section 8 of the 
        United States Housing Act of 1937 that are, in the aggregate, 
        in excess of 120 percent of the fair market rent of the market 
        area in which the project is located; and
            (C) the mortgages of which are insured under the National 
        Housing Act.
        (2) Purpose.--The demonstration program shall be designed to 
    obtain as much information as is feasible on the economic viability 
    and rehabilitation needs of the multifamily housing projects in the 
    demonstration, to test various approaches for restructuring 
    mortgages to reduce the financial risk to the FHA Insurance Fund 
    while reducing the cost of section 8 subsidies, and to test the 
    feasibility and desirability of--
            (A) ensuring, to the maximum extent practicable, that the 
        debt service and operating expenses, including adequate 
        reserves, attributable to such multifamily projects can be 
        supported at the comparable market rent with or without 
        mortgage insurance under the National Housing Act and with or 
        without additional section 8 rental subsidies;
            (B) utilizing section 8 rental assistance, while taking 
        into account the capital needs of the projects and the need for 
        adequate rental assistance to support the low- and very low-
        income families residing in such projects; and
            (C) preserving low-income rental housing affordability and 
        availability while reducing the long-term cost of section 8 
        rental assistance.
    (c) Goals.--
        (1) In general.--The Secretary shall carry out the 
    demonstration program in a manner that will protect the financial 
    interests of the Federal Government through debt restructuring and 
    subsidy reduction and, in the least costly fashion, address the 
    goals of--
            (A) maintaining existing affordable housing stock in a 
        decent, safe, and sanitary condition;
            (B) minimizing the involuntary displacement of tenants;
            (C) taking into account housing market conditions;
            (D) encouraging responsible ownership and management of 
        property;
            (E) minimizing any adverse income tax impact on property 
        owners; and
            (F) minimizing any adverse impacts on residential 
        neighborhoods and local communities.
        (2) Balance of competing goals.--In determining the manner in 
    which a mortgage is to be restructured or a subsidy reduced under 
    this subsection, the Secretary may balance competing goals relating 
    to individual projects in a manner that will further the purposes 
    of this section.
    (d) Participation Arrangements.--
        (1) In general.--In carrying out the demonstration program, the 
    Secretary may enter into participation arrangements with designees, 
    under which the Secretary may provide for the assumption by 
    designees (by delegation, by contract, or otherwise) of some or all 
    of the functions, obligations, responsibilities and benefits of the 
    Secretary.
        (2) Designees.--In entering into any arrangement under this 
    subsection, the Secretary shall select state housing finance 
    agencies, housing agencies or nonprofits (separately or in 
    conjunction with each other) to act as designees to the extent such 
    agencies are determined to be qualified by the Secretary. In 
    locations where there is no qualified State housing finance agency, 
    housing agency or nonprofit to act as a designee, the Secretary may 
    act as a designee. Each participation arrangement entered into 
    under this subsection shall include a designee as the primary 
    partner. Any organization selected by the Secretary under this 
    section shall have a long-term record of service in providing low-
    income housing and meet standards of fiscal responsibility, as 
    determined by the Secretary.
        (3) Designee partnerships.--For purposes of any participation 
    arrangement under this subsection, designees are encouraged to 
    develop partnerships with each other, and to contract or 
    subcontract with other entities, including--
            (A) public housing agencies;
            (B) financial institutions;
            (C) mortgage servicers;
            (D) nonprofit and for-profit housing organizations;
            (E) the Federal National Mortgage Association;
            (F) the Federal Home Loan Mortgage Corporation;
            (G) Federal Home Loan Banks; and
            (H) other State or local mortgage insurance companies or 
        bank lending consortia.
    (e) Long-Term Affordability.--
        (1) In general.--After the renewal of a section 8 contract 
    pursuant to a restructuring under this section, the owner shall 
    accept each offer to renew the section 8 contract, for a period of 
    20 years from the date of the renewal under the demonstration, if 
    the offer to renew is on terms and conditions, as agreed to by the 
    Secretary or designee and the owner under a restructuring.
        (2) Affordability requirements.--Except as otherwise provided 
    by the Secretary, in exchange for any mortgage restructuring under 
    this section, a project shall remain affordable for a period of not 
    less than 20 years. Affordability requirements shall be determined 
    in accordance with guidelines established by the Secretary or 
    designee. The Secretary or designee may waive these requirements 
    for good cause.
(f) Procedures.--
        (1) Notice of participation in demonstration.--Not later than 
    45 days before the date of expiration of an expiring contract (or 
    such later date, as determined by the Secretary, for good cause), 
    the owner of the multifamily housing project covered by that 
    expiring contract shall notify the Secretary or designee and the 
    residents of the owner's intent to participate in the demonstration 
    program.
        (2) Demonstration contract.--Upon receipt of a notice under 
    paragraph (1), the owner and the Secretary or designee shall enter 
    into a demonstration contract, which shall provide for initial 
    section 8 project-based rents at the same rent levels as those 
    under the expiring contract or, if practical, the budget-based rent 
    to cover debt service, reasonable operating expenses (including 
    reasonable and appropriate services), and a reasonable return to 
    the owner, as determined solely by the Secretary. The demonstration 
    contract shall be for the minimum term necessary for the rents and 
    mortgages of the multifamily housing project to be restructured 
    under the demonstration program, but shall not be for a period of 
    time to exceed 180 days, unless extended for good cause by the 
    Secretary.
    (g) Project-Based Section 8.--The Secretary shall renew all 
expiring contracts under the demonstration as section 8 project-based 
contracts, for a period of time not to exceed one year, unless 
otherwise provided under subsection (h).
    (h) Demonstration Actions.--
        (1) Demonstration actions.--For purposes of carrying out the 
    demonstration program, and in order to ensure that contract rights 
    are not abrogated, subject to such third party consents as are 
    necessary (if any), including consent by the Government National 
    Mortgage Association if it owns a mortgage insured by the 
    Secretary, consent by an issuer under the mortgage-backed 
    securities program of the Association, subject to the 
    responsibilities of the issuer to its security holders and the 
    Association under such program, and consent by parties to any 
    contractual agreement which the Secretary proposes to modify or 
    discontinue, the Secretary or, except with respect to subparagraph 
    (B), designee, subject to the funding limitation in subsection (l), 
    shall take not less than one of the actions specified in 
    subparagraphs (G), (H), and (I) and may take any of the following 
    actions:
            (A) Removal of restrictions.--
                (i) In general.--Consistent with the purposes of this 
            section, subject to the agreement of the owner of the 
            project and after consultation with the tenants of the 
            project, the Secretary or designee may remove, relinquish, 
            extinguish, modify, or agree to the removal of any 
            mortgage, regulatory agreement, project-based assistance 
            contract, use agreement, or restriction that had been 
            imposed or required by the Secretary, including 
            restrictions on distributions of income which the Secretary 
            or designee determines would interfere with the ability of 
            the project to operate without above-market rents.
                (ii) Accumulated residual receipts.--The Secretary or 
            designee may require an owner of a property assisted under 
            the section 8 new construction/substantial rehabilitation 
            program under the United States Housing Act of 1937 to 
            apply any accumulated residual receipts toward effecting 
            the purposes of this section.
            (B) Reinsurance.--With respect to not more than 5,000 units 
        within the demonstration during fiscal year 1997, the Secretary 
        may enter into contracts to purchase reinsurance, or enter into 
        participations or otherwise transfer economic interest in 
        contracts of insurance or in the premiums paid, or due to be 
        paid, on such insurance, on such terms and conditions as the 
        Secretary may determine. Any contract entered into under this 
        paragraph shall require that any associated units be maintained 
        as low-income units for the life of the mortgage, unless waived 
        by the Secretary for good cause.
            (C) Participation by third parties.--The Secretary or 
        designee may enter into such agreements, provide such 
        concessions, incur such costs, make such grants (including 
        grants to cover all or a portion of the rehabilitation costs 
        for a project) and other payments, and provide other valuable 
        consideration as may reasonably be necessary for owners, 
        lenders, servicers, third parties, and other entities to 
        participate in the demonstration program. The Secretary may 
        establish performance incentives for designees.
            (D) Section 8 administrative fees.--Notwithstanding any 
        other provision of law, the Secretary may make fees available 
        from the section 8 contract renewal appropriation to a designee 
        for contract administration under section 8 of the United 
        States Housing Act of 1937 for purposes of any contract 
        restructured or renewed under the demonstration program.
            (E) Full or partial payment of claim.--Notwithstanding any 
        other provision of law, the Secretary may make a full payment 
        of claim or partial payment of claim prior to default.
            (F) Credit enhancement.--
                (i) In general.--The Secretary or designee may provide 
            FHA multifamily mortgage insurance, reinsurance, or other 
            credit enhancement alternatives, including retaining the 
            existing FHA mortgage insurance on a restructured first 
            mortgage at market value or using the multifamily risk-
            sharing mortgage programs, as provided under section 542 of 
            the Housing and Community Development Act of 1992. Any 
            limitations on the number of units available for mortgage 
            insurance under section 542 shall not apply to insurance 
            issued for purposes of the demonstration program.
                (ii) Maximum percentage.--During fiscal year 1997, not 
            more than 25 percent of the units in multifamily housing 
            projects with expiring contracts in the demonstration, in 
            the aggregate, may be restructured without FHA insurance, 
            unless otherwise agreed to by the owner of a project.
                (iii) Credit subsidy.--Any credit subsidy costs of 
            providing mortgage insurance shall be paid from amounts 
            made available under subsection (l).
            (G) Mortgage restructuring.--
                (i) In general.--The Secretary or designee may 
            restructure mortgages to provide a restructured first 
            mortgage to cover debt service and operating expenses 
            (including a reasonable rate of return to the owner) at the 
            market rent, and a second mortgage equal to the difference 
            between the restructured first mortgage and the mortgage 
            balance of the eligible multifamily housing project at the 
            time of restructuring.
                (ii) Credit subsidy.--Any credit subsidy costs of 
            providing a second mortgage shall be paid from amounts made 
            available under subsection (l).
            (H) Debt forgiveness.--The Secretary or designee, for good 
        cause and at the request of the owner of a multifamily housing 
        project, may forgive at the time of the restructuring of a 
        mortgage any portion of a debt on the project that exceeds the 
        market value of the project.
            (I) Budget-based rents.--The Secretary or designee may 
        renew an expiring contract, including a contract for a project 
        in which operating costs exceed comparable market rents, for a 
        period of not more than one year, at a budget-based rent that 
        covers debt service, reasonable operating expenses (including 
        all reasonable and appropriate services), and a reasonable rate 
        of return to the owner, as determined solely by the Secretary, 
        provided that the contract does not exceed the rent levels 
        under the expiring contract. The Secretary may establish a 
        preference under the demonstration program for budget-based 
        rents for unique housing projects, such as projects designated 
        for occupancy by elderly families and projects in rural areas.
            (J) Section 8 tenant-based assistance.--For not more than 
        10 percent of units in multifamily housing projects that have 
        had their mortgages restructured in any fiscal year under the 
        demonstration, the Secretary or designee may provide, with the 
        agreement of an owner and in consultation with the tenants of 
        the housing, section 8 tenant-based assistance for some or all 
        of the assisted units in a multifamily housing project in lieu 
        of section 8 project-based assistance. Section 8 tenant-based 
        assistance may only be provided where the Secretary determines 
        and certifies that there is adequate available and affordable 
        housing within the local area and that tenants will be able to 
        use the section 8 tenant-based assistance successfully.
        (2) Offer and acceptance.--Notwithstanding any other provision 
    of law, an owner of a project in the demonstration must accept any 
    reasonable offer made by the Secretary or a designee under this 
    subsection. An owner may appeal the reasonableness of any offer to 
    the Secretary and the Secretary shall respond within 30 days of the 
    date of appeal with a final offer. If the final offer is not 
    acceptable, the owner may opt out of the program.
    (i) Community and Tenant Input.--In carrying out this section, the 
Secretary shall develop procedures to provide appropriate and timely 
notice, including an opportunity for comment and timely access to all 
relevant information, to officials of the unit of general local 
government affected, the community in which the project is situated, 
and the tenants of the project.
    (j) Transfer of Property.--The Secretary shall establish procedures 
to facilitate the voluntary sale or transfer of multifamily housing 
projects under the demonstration to tenant organizations and tenant-
endorsed community-based nonprofit and public agency purchasers meeting 
such reasonable qualifications as may be established by the Secretary.
    (k) Limitation on Demonstration Authority.--The Secretary shall 
carry out the demonstration program with respect to mortgages not to 
exceed 50,000 units.
    (l) Funding.--In addition to the $30,000,000 made available under 
section 210 of the Departments of Veterans Affairs and Housing and 
Urban Development and Independent Agencies Appropriations Act, 1996 
(110 Stat. 1321), for the costs (including any credit subsidy costs 
associated with providing direct loans or mortgage insurance) of 
modifying and restructuring loans held or guaranteed by the Federal 
Housing Administration, as authorized under this section, $10,000,000 
is hereby appropriated, to remain available until September 30, 1998.
    (m) Report to Congress.--
        (1) In general.--
            (A) Quarterly reports.--Not less than every 3 months, the 
        Secretary shall submit to the Congress a report describing and 
        assessing the status of the projects in the demonstration 
        program.
            (B) Final report.--Not later than 6 months after the end of 
        the demonstration program, the Secretary shall submit to the 
        Congress a final report on the demonstration program.
        (2) Contents.--Each report submitted under paragraph (1)(A) 
    shall include a description of--
            (A) each restructuring proposal submitted by an owner of a 
        multifamily housing project, including a description of the 
        physical, financial, tenancy, and market characteristics of the 
        project;
            (B) the Secretary's evaluation and reasons for each 
        multifamily housing project selected or rejected for 
        participation in the demonstration program;
            (C) the costs to the FHA General Insurance and Special Risk 
        Insurance funds;
            (D) the subsidy costs provided before and after 
        restructuring;
            (E) the actions undertaken in the demonstration program, 
        including the third-party arrangements made; and
            (F) the demonstration program's impact on the owners of the 
        projects, including any tax consequences.
        (3) Contents of final report.--The report submitted under 
    paragraph (1)(B) shall include--
            (A) the required contents under paragraph (2); and
            (B) any findings and recommendations for legislative 
        action.
     Sec. 213. Hawaiian Home Lands.--Section 282 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12832) is amended 
by adding at the end the following new sentence: ``The Secretary may 
waive this section in connection with the use of funds made available 
under this title on lands set aside under the Hawaiian Homes Commission 
Act, 1920 (42 Stat. 108).''.
    Sec. 214. Uses of Certain Assisted Housing Amounts.--(a) Transfer 
Authority.--The Secretary may transfer recaptured section 8 amounts 
from the Annual Contributions for Assisted Housing account under Public 
Law 104-134 (approved April 26, 1996; 110 Stat. 1321, 1321-265) and 
prior laws to the accounts and for the purposes set forth in subsection 
(b). The amounts transferred under this section shall be made available 
for use as prescribed under this section notwithstanding section 8(bb) 
of the United States Housing Act of 1937.
    (b) Receiving Accounts.--
        (1) Prevention of resident displacement.--The Secretary may 
    transfer to the Prevention of Resident Displacement account an 
    amount up to $50,000,000, in addition to amounts in such account, 
    that may be used to extend, under existing terms and conditions, 
    existing project-based section 8 contracts in effect before a Plan 
    of Action was approved, so that these contracts expire 5 years from 
    the date on which funds were obligated for the Plan of Action 
    approved under the Low-Income Housing Preservation and Resident 
    Homeownership Act of 1990 or the Emergency Low Income Housing 
    Preservation Act of 1987. The Secretary shall transfer all amounts 
    that the Secretary determines to be necessary for fiscal year 1997 
    for the purposes of this paragraph before transferring any amounts 
    under any other paragraph in this subsection.
        (2) HOPWA.--The Secretary may transfer to the Housing 
    Opportunities for Persons with AIDS account up to $25,000,000, for 
    use in addition to amounts appropriated in such account.
    Sec. 215. Requirement for HUD To Maintain Public Notice and Comment 
Rulemaking.--The Secretary of Housing and Urban Development shall 
maintain all current requirements under part 10 of the Department of 
Housing and Urban Development's regulations (24 CFR part 10) with 
respect to the Department's policies and procedures for the 
promulgation and issuance of rules, including the use of public 
participation in the rulemaking process.
    Sec. 216. Community Development Block Grants.--Section 102(a)(6)(D) 
of the Housing and Community Development Act of 1974 (42 U.S.C. 
5302(a)(6)(D)) is amended--
        (1) in clause (iv), by striking ``or'' at the end;
        (2) in clause (v), by striking the period at the end and 
    inserting ``; or''; and
        (3) by adding at the end the following new clause:
            ``(vi) has entered into a local cooperation agreement with 
        a metropolitan city that received assistance under section 106 
        because of such classification, and has elected under paragraph 
        (4) to have its population included with the population of the 
        county for the purposes of qualifying as an urban county, 
        except that to qualify as an urban county under this clause, 
        the county must--
                ``(I) have a combined population of not less than 
            210,000, excluding any metropolitan city located in the 
            county that is not relinquishing its metropolitan city 
            classification, according to the 1990 decennial census of 
            the Bureau of the Census of the Department of Commerce;
                ``(II) including any metropolitan cities located in the 
            county, have had a decrease in population of 10,061 from 
            1992 to 1994, according to the estimates of the Bureau of 
            the Census of the Department of Commerce; and
                ``(III) have had a Federal naval installation that was 
            more than 100 years old closed by action of the Base 
            Closure and Realignment Commission appointed for 1993 under 
            the Base Closure and Realignment Act of 1990, directly 
            resulting in a loss of employment by more than 7,000 
            Federal Government civilian employees and more than 15,000 
            active duty military personnel, which naval installation 
            was located within one mile of an enterprise community 
            designated by the Secretary pursuant to section 1391 of the 
            Internal Revenue Code of 1986, which enterprise community 
            has a population of not less than 20,000, according to the 
            1990 decennial census of the Bureau of the Census of the 
            Department of Commerce.''.
    Sec. 217. Fair Housing and Free Speech.--None of the amounts made 
available under this Act may be used during fiscal year 1997 to 
investigate or prosecute under the Fair Housing Act any otherwise 
lawful activity engaged in by one or more persons, including the filing 
or maintaining of a nonfrivolous legal action, that is engaged in 
solely for the purpose of achieving or preventing action by a 
government official or entity, or a court of competent jurisdiction.
    Sec. 218. Account Transition.--The amounts of obligated balances in 
appropriations accounts, as set forth in title II of the Departments of 
Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1996 and prior Acts that are recaptured 
hereafter, to the extent not governed by the specific language in an 
account or provision in this Act, shall be held in reserve subject to 
reprogramming, notwithstanding any other provision of law.
    Sec. 219. Treatment of Certain Properties.--Notwithstanding any 
other provision of law, rehabilitation activities undertaken in 
projects using the Low-Income Housing Tax Credit allocated to 
developments in the city of New Brunswick, New Jersey, in 1991, are 
deemed to have met the requirements for rehabilitation in accordance 
with clause (ii) of the third sentence of section 8(d)(2)(A) of the 
United States Housing Act of 1937, as in effect before the date of the 
enactment of this Act.
    Sec. 220. Amendment Relating to Community Development Assistance.--
Section 105(a) of the Housing and Community Development Act of 1974 (42 
U.S.C. 5305(a)(8)) is amended by striking ``through 1997'' and 
inserting ``through 1998''.
    Sec. 221. Section 236 Program Amendments.--(a) Section 236(f)(1) of 
the National Housing Act (12 U.S.C. 1715z-1), as amended by section 
405(d)(1) of The Balanced Budget Downpayment Act, I, and by section 
228(a) of The Balanced Budget Downpayment Act, II, is amended--
        (1) in the second sentence, by striking ``the lower of (i)'';
        (2) in the second sentence, by striking ``or (ii) the fair 
    market rental established under section 8(c) of the United States 
    Housing Act of 1937 for the market area in which the housing is 
    located, or (iii) the actual rent (as determined by the Secretary) 
    paid for a comparable unit in comparable unassisted housing in the 
    market area in which the housing assisted under this section is 
    located,''; and
        (3) by inserting after the second sentence the following: 
    ``However, in the case of a project which contains more than 5,000 
    units, is subject to an interest reduction payments contract, and 
    is financed under a State or local program, the Secretary may 
    reduce the rental charge ceiling, but in no case shall the rent be 
    below basic rent. For plans of action approved for Capital Grants 
    under the Low-Income Housing Preservation and Resident 
    Homeownership Act of 1990 (LIHPRHA) or the Emergency Low Income 
    Housing Preservation Act of 1987 (ELIHPA), the rental charge for 
    each dwelling unit shall be at the basic rental charge or such 
    greater amount, not exceeding the lower of (i) the fair market 
    rental charge determined pursuant to this paragraph, or (ii) the 
    actual rent paid for a comparable unit in comparable unassisted 
    housing in the market area in which the housing assisted under this 
    section is located, as represents 30 percent of the tenant's 
    adjusted income, but in no case shall the rent be below basic 
    rent.''.
    (b) Section 236(f) of the National Housing Act is amended by adding 
the following new paragraph at the end:
        ``(7) The Secretary shall determine whether and under what 
    conditions the provisions of this subsection shall apply to 
    mortgages sold by the Secretary on a negotiated basis.''.
    (c) Section 236(g) of the National Housing Act is amended to read 
as follows:
    ``The project owner shall, as required by the Secretary, 
accumulate, safeguard, and periodically pay the Secretary or such other 
entity as determined by the Secretary and upon such terms and 
conditions as the Secretary deems appropriate, all rental charges 
collected on a unit-by-unit basis in excess of the basic rental 
charges. Unless otherwise directed by the Secretary, such excess 
charges shall be credited to a reserve fund to be used by the Secretary 
to make additional assistance payments as provided in paragraph (3) of 
subsection (f). However, a project owner with a mortgage insured under 
this section may retain some or all of such excess charges for project 
use if authorized by the Secretary and upon such terms and conditions 
as established by the Secretary.''.

                               TITLE III

                          INDEPENDENT AGENCIES

                  American Battle Monuments Commission

                         salaries and expenses

    For necessary expenses, not otherwise provided for, of the American 
Battle Monuments Commission, including the acquisition of land or 
interest in land in foreign countries; purchases and repair of uniforms 
for caretakers of national cemeteries and monuments outside of the 
United States and its territories and possessions; rent of office and 
garage space in foreign countries; purchase (one for replacement only) 
and hire of passenger motor vehicles; and insurance of official motor 
vehicles in foreign countries, when required by law of such countries; 
$22,265,000, to remain available until expended: Provided, That where 
station allowance has been authorized by the Department of the Army for 
officers of the Army serving the Army at certain foreign stations, the 
same allowance shall be authorized for officers of the Armed Forces 
assigned to the Commission while serving at the same foreign stations, 
and this appropriation is hereby made available for the payment of such 
allowance: Provided further, That when traveling on business of the 
Commission, officers of the Armed Forces serving as members or as 
Secretary of the Commission may be reimbursed for expenses as provided 
for civilian members of the Commission: Provided further, That the 
Commission shall reimburse other Government agencies, including the 
Armed Forces, for salary, pay, and allowances of personnel assigned to 
it.

                       Department of the Treasury

              Community Development Financial Institutions

   community development financial institutions fund program account

    For grants, loans, and technical assistance to qualifying community 
development lenders, and administrative expenses of the Fund, 
$45,000,000, to remain available until September 30, 1998, of which 
$8,000,000 may be used for the cost of direct loans, and up to $800,000 
may be used for administrative expenses to carry out the direct loan 
program: Provided, That the cost of direct loans, including the cost of 
modifying such loans, shall be as defined in section 502 of the 
Congressional Budget Act of 1974: Provided further, That not more than 
$19,400,000 of the funds made available under this heading may be used 
for programs and activities authorized in section 114 of the Community 
Development Banking and Financial Institutions Act of 1994.

                   Consumer Product Safety Commission

                         salaries and expenses

    For necessary expenses of the Consumer Product Safety Commission, 
including hire of passenger motor vehicles, services as authorized by 5 
U.S.C. 3109, but at rates for individuals not to exceed the per diem 
rate equivalent to the rate for GS-18, purchase of nominal awards to 
recognize non-Federal officials' contributions to Commission 
activities, and not to exceed $500 for official reception and 
representation expenses, $42,500,000.

             Corporation for National and Community Service

       national and community service programs operating expenses

                     (including transfer of funds)

    For necessary expenses for the Corporation for National and 
Community Service (referred to in the matter under this heading as the 
``Corporation'') in carrying out programs, activities, and initiatives 
under the National and Community Service Act of 1990 (referred to in 
the matter under this heading as the ``Act'') (42 U.S.C. 12501 et 
seq.), $400,500,000, of which $265,000,000 shall be available for 
obligation from September 1, 1997, through September 30, 1998: 
Provided, That not more than $25,000,000 shall be available for 
administrative expenses authorized under section 501(a)(4) of the Act 
(42 U.S.C. 12671(a)(4)): Provided further, That not more than $2,500 
shall be for official reception and representation expenses: Provided 
further, That not more than $59,000,000, to remain available without 
fiscal year limitation, shall be transferred to the National Service 
Trust account for educational awards authorized under subtitle D of 
title I of the Act (42 U.S.C. 12601 et seq.): Provided further, That 
not more than $215,000,000 of the amount provided under this heading 
shall be available for grants under the National Service Trust program 
authorized under subtitle C of title I of the Act (42 U.S.C. 12571 et 
seq.) (relating to activities including the Americorps program), of 
which not more than $40,000,000 may be used to administer, reimburse or 
support any national service program authorized under section 121(d)(2) 
of such Act (42 U.S.C. 12581(d)(2)): Provided further, That not more 
than $5,500,000 of the funds made available under this heading shall be 
made available for the Points of Light Foundation for activities 
authorized under title III of the Act (42 U.S.C. 12661 et seq.): 
Provided further, That no funds shall be available for national service 
programs run by Federal agencies authorized under section 121(b) of 
such Act (42 U.S.C. 12571(b)): Provided further, That to the maximum 
extent feasible, funds appropriated in the preceding proviso shall be 
provided in a manner that is consistent with the recommendations of 
peer review panels in order to ensure that priority is given to 
programs that demonstrate quality, innovation, replicability, and 
sustainability: Provided further, That not more than $18,000,000 of the 
funds made available under this heading shall be available for the 
Civilian Community Corps authorized under subtitle E of title I of the 
Act (42 U.S.C. 12611 et seq.): Provided further, That not more than 
$43,000,000 shall be available for school-based and community-based 
service-learning programs authorized under subtitle B of title I of the 
Act (42 U.S.C. 12521 et seq.): Provided further, That not more than 
$30,000,000 shall be available for quality and innovation activities 
authorized under subtitle H of title I of the Act (42 U.S.C. 12853 et 
seq.): Provided further, That not more than $5,000,000 shall be 
available for audits and other evaluations authorized under section 179 
of the Act (42 U.S.C. 12639): Provided further, That no funds from any 
other appropriation, or from funds otherwise made available to the 
Corporation, shall be used to pay for personnel compensation and 
benefits, travel, or any other administrative expense for the Board of 
Directors, the Office of the Chief Executive Officer, the Office of the 
Managing Director, the Office of the Chief Financial Officer, the 
Office of National and Community Service Programs, the Civilian 
Community Corps, or any field office or staff of the Corporation 
working on the National and Community Service or Civilian Community 
Corps programs: Provided further, That to the maximum extent 
practicable, the Corporation shall increase significantly the level of 
matching funds and in-kind contributions provided by the private 
sector, shall expand significantly the number of educational awards 
provided under subtitle D of title I, and shall reduce the total 
Federal costs per participant in all programs.

                      office of inspector general

    For necessary expenses of the Office of Inspector General in 
carrying out the provisions of the Inspector General Act of 1978, as 
amended, $2,000,000.

                       Court of Veterans Appeals

                         salaries and expenses

    For necessary expenses for the operation of the United States Court 
of Veterans Appeals as authorized by 38 U.S.C. sections 7251-7292, 
$9,229,000, of which $700,000, to remain available until September 30, 
1998, shall be available for the purpose of providing financial 
assistance as described, and in accordance with the process and 
reporting procedures set forth, under this heading in Public Law 102-
229.

         Department of Defense--Civil Cemeterial Expenses, Army

                         salaries and expenses

    For necessary expenses, as authorized by law, for maintenance, 
operation, and improvement of Arlington National Cemetery and Soldiers' 
and Airmen's Home National Cemetery, including the purchase of one 
passenger motor vehicle for replacement only, and not to exceed $1,000 
for official reception and representation expenses, $11,600,000, to 
remain available until expended.

                    Environmental Protection Agency

                         science and technology

    For science and technology, including research and development 
activities, which shall include research and development activities 
under the Comprehensive Environmental Response, Compensation, and 
Liability Act of 1980 (CERCLA), as amended; necessary expenses for 
personnel and related costs and travel expenses, including uniforms, or 
allowances therefore, as authorized by 5 U.S.C. 5901-5902; services as 
authorized by 5 U.S.C. 3109, but at rates for individuals not to exceed 
the per diem rate equivalent to the rate for GS-18; procurement of 
laboratory equipment and supplies; other operating expenses in support 
of research and development; construction, alteration, repair, 
rehabilitation, and renovation of facilities, not to exceed $75,000 per 
project, $542,000,000, which shall remain available until September 30, 
1998.

                 environmental programs and management

    For environmental programs and management, including necessary 
expenses, not otherwise provided for, for personnel and related costs 
and travel expenses, including uniforms, or allowances therefore, as 
authorized by 5 U.S.C. 5901-5902; services as authorized by 5 U.S.C. 
3109, but at rates for individuals not to exceed the per diem rate 
equivalent to the rate for GS-18; hire of passenger motor vehicles; 
hire, maintenance, and operation of aircraft; purchase of reprints; 
library memberships in societies or associations which issue 
publications to members only or at a price to members lower than to 
subscribers who are not members; construction, alteration, repair, 
rehabilitation, and renovation of facilities, not to exceed $75,000 per 
project; and not to exceed $6,000 for official reception and 
representation expenses, $1,710,000,000, which shall remain available 
until September 30, 1998.

                      office of inspector general

    For necessary expenses of the Office of Inspector General in 
carrying out the provisions of the Inspector General Act of 1978, as 
amended, and for construction, alteration, repair, rehabilitation, and 
renovation of facilities, not to exceed $75,000 per project, 
$28,500,000.

                        buildings and facilities

    For construction, repair, improvement, extension, alteration, and 
purchase of fixed equipment or facilities of, or for use by, the 
Environmental Protection Agency, $87,220,000, to remain available until 
expended: Provided, That EPA is authorized to establish and construct a 
consolidated research facility at Research Triangle Park, North 
Carolina, at a maximum total construction cost of $232,000,000, and to 
obligate such monies as are made available by this Act for this 
purpose: Provided further, That EPA is authorized to construct such 
facility through multi-year contracts incrementally funded through 
appropriations hereafter made available for this project: Provided 
further, That, notwithstanding the previous provisos, for monies 
obligated pursuant to this authority, EPA may not obligate monies in 
excess of those provided in advance in annual appropriations, and such 
contracts shall clearly provide for this limitation.

                     hazardous substance superfund

                     (including transfer of funds)

    For necessary expenses to carry out the Comprehensive Environmental 
Response, Compensation, and Liability Act of 1980 (CERCLA), as amended, 
including sections 111 (c)(3), (c)(5), (c)(6), and (e)(4) (42 U.S.C. 
9611), and for construction, alteration, repair, rehabilitation, and 
renovation of facilities, not to exceed $75,000 per project; not to 
exceed $1,394,245,000 (of which $100,000,000 shall not become available 
until September 1, 1997), to remain available until expended, 
consisting of $1,144,245,000 as authorized by section 517(a) of the 
Superfund Amendments and Reauthorization Act of 1986 (SARA), as amended 
by Public Law 101-508, and $250,000,000 as a payment from general 
revenues to the Hazardous Substance Superfund as authorized by section 
517(b) of SARA, as amended by Public Law 101-508: Provided, That funds 
appropriated under this heading may be allocated to other Federal 
agencies in accordance with section 111(a) of CERCLA: Provided further, 
That $11,000,000 of the funds appropriated under this heading shall be 
transferred to the ``Office of Inspector General'' appropriation to 
remain available until September 30, 1997: Provided further, That 
notwithstanding section 111(m) of CERCLA or any other provision of law, 
not to exceed $64,000,000 of the funds appropriated under this heading 
shall be available to the Agency for Toxic Substances and Disease 
Registry to carry out activities described in sections 104(i), 
111(c)(4), and 111(c)(14) of CERCLA and section 118(f) of the Superfund 
Amendments and Reauthorization Act of 1986: Provided further, That 
$35,000,000 of the funds appropriated under this heading shall be 
transferred to the ``Science and technology'' appropriation to remain 
available until September 30, 1998: Provided further, That none of the 
funds appropriated under this heading shall be available for the Agency 
for Toxic Substances and Disease Registry to issue in excess of 40 
toxicological profiles pursuant to section 104(i) of CERCLA during 
fiscal year 1997.

              leaking underground storage tank trust fund

                     (including transfer of funds)

    For necessary expenses to carry out leaking underground storage 
tank cleanup activities authorized by section 205 of the Superfund 
Amendments and Reauthorization Act of 1986, and for construction, 
alteration, repair, rehabilitation, and renovation of facilities, not 
to exceed $75,000 per project, $60,000,000, to remain available until 
expended: Provided, That no more than $7,000,000 shall be available for 
administrative expenses: Provided further, That $577,000 shall be 
transferred to the ``Office of Inspector General'' appropriation to 
remain available until September 30, 1997.

                           oil spill response

                     (including transfer of funds)

    For expenses necessary to carry out the Environmental Protection 
Agency's responsibilities under the Oil Pollution Act of 1990, 
$15,000,000, to be derived from the Oil Spill Liability trust fund, and 
to remain available until expended: Provided, That not more than 
$8,000,000 of these funds shall be available for administrative 
expenses.

                   state and tribal assistance grants

    For environmental programs and infrastructure assistance, including 
capitalization grants for State revolving funds and performance 
partnership grants, $2,875,207,000, to remain available until expended, 
of which $1,900,000,000 shall be for making capitalization grants for 
State revolving funds to support water infrastructure financing; 
$100,000,000 for architectural, engineering, planning, design, 
construction and related activities in connection with the construction 
of high priority water and wastewater facilities in the area of the 
United States-Mexico Border, after consultation with the appropriate 
border commission; $50,000,000 for grants to the State of Texas, which 
shall be matched by an equal amount of State funds from State 
resources, for the purpose of improving wastewater treatment for 
colonias; $15,000,000 for grants to the State of Alaska subject to an 
appropriate cost share as determined by the Administrator, to address 
water supply and wastewater infrastructure needs of rural and Alaska 
Native Villages; $136,000,000 for making grants for the construction of 
wastewater and water treatment facilities and the development of 
groundwater in accordance with the terms and conditions specified for 
such grants in the conference report and joint explanatory statement of 
the committee of conference accompanying this Act (H.R. 3666); and 
$674,207,000 for grants to States and federally recognized tribes for 
multi-media or single media pollution prevention, control and abatement 
and related activities pursuant to the provisions set forth under this 
heading in Public Law 104-134: Provided, That, from funds appropriated 
under this heading, the Administrator may make grants to federally 
recognized Indian governments for the development of multi-media 
environmental programs: Provided further, That notwithstanding any 
other provision of law, beginning in fiscal year 1997 the Administrator 
may make grants to States, from funds available for obligation in the 
State under title II of the Federal Water Pollution Control Act, as 
amended, for administering the completion and closeout of the State's 
construction grants program, based on a budget annually negotiated with 
the State: Provided further, That of the $1,900,000,000 for 
capitalization grants for State revolving funds to support water 
infrastructure financing, $1,275,000,000 shall be for drinking water 
State revolving funds: Provided further, That the funds made available 
in Public Law 103-327 for a grant to the City of Bangor, Maine, in 
accordance with House Report 103-715, shall be available for a grant to 
that city for meeting combined sewer overflow requirements: Provided 
further, That, notwithstanding any other provision of law, a State that 
did not receive, in fiscal year 1996, grants under title VI of the 
Federal Water Pollution Control Act, as amended, that obligated all the 
funds allotted to it from the $725,000,000 that became available for 
that purpose on August 1, 1996, may receive reallotted funds from the 
fiscal year 1996 appropriation, provided the State receives such grants 
in fiscal year 1997.

                          working capital fund

                      (including transfer of funds)

    There is hereby established in the Treasury a franchise fund pilot 
to be known as the ``Working capital fund'', as authorized by section 
403 of Public Law 103-356, to be available as provided in such section 
for expenses and equipment necessary for the maintenance and operation 
of such administrative services as the Administrator determines may be 
performed more advantageously as central services: Provided, That any 
inventories, equipment, and other assets pertaining to the services to 
be provided by such fund, either on hand or on order, less the related 
liabilities or unpaid obligations, and any appropriations made 
hereafter for the purpose of providing capital, shall be used to 
capitalize such fund: Provided further, That such fund shall be paid in 
advance from funds available to the Agency and other Federal agencies 
for which such centralized services are performed, at rates which will 
return in full all expenses of operation, including accrued leave, 
depreciation of fund plant and equipment, amortization of automated 
data processing (ADP) software and systems (either acquired or 
donated), and an amount necessary to maintain a reasonable operating 
reserve, as determined by the Administrator: Provided further, That 
such fund shall provide services on a competitive basis: Provided 
further, That an amount not to exceed four percent of the total annual 
income to such fund may be retained in the fund for fiscal year 1997 
and each fiscal year thereafter, to remain available until expended, to 
be used for the acquisition of capital equipment and for the 
improvement and implementation of Agency financial management, ADP, and 
other support systems: Provided further, That no later than thirty days 
after the end of each fiscal year amounts in excess of this reserve 
limitation shall be transferred to the Treasury: Provided further, That 
such franchise fund pilot shall terminate pursuant to section 403(f) of 
Public Law 103-356.

                   Executive Office of the President

                office of science and technology policy

    For necessary expenses of the Office of Science and Technology 
Policy, in carrying out the purposes of the National Science and 
Technology Policy, Organization, and Priorities Act of 1976 (42 U.S.C. 
6601 and 6671), hire of passenger motor vehicles, and services as 
authorized by 5 U.S.C. 3109, not to exceed $2,500 for official 
reception and representation expenses, and rental of conference rooms 
in the District of Columbia, $4,932,000.

  council on environmental quality and office of environmental quality

    For necessary expenses to continue functions assigned to the 
Council on Environmental Quality and Office of Environmental Quality 
pursuant to the National Environmental Policy Act of 1969, the 
Environmental Quality Improvement Act of 1970, and Reorganization Plan 
No. 1 of 1977, $2,436,000.

                  Federal Emergency Management Agency

                            disaster relief

    For necessary expenses in carrying out the Robert T. Stafford 
Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), 
$1,320,000,000, and, notwithstanding 42 U.S.C. 5203, to become 
available for obligation on September 30, 1997, and remain available 
until expended: Provided, That notwithstanding any other provision of 
this paragraph, amounts appropriated herein shall be available for 
obligation on October 1, 1996: Provided further, That the Director of 
the Federal Emergency Management Agency (FEMA) shall submit to the 
appropriate committees of Congress within 120 days of enactment of this 
Act a comprehensive report on FEMA's plans to reduce disaster relief 
expenditures and improve managment controls on the Disaster Relief 
Fund.

            disaster assistance direct loan program account

    For the cost of direct loans, $1,385,000, as authorized by section 
319 of the Robert T. Stafford Disaster Relief and Emergency Assistance 
Act (42 U.S.C. 5121 et seq.): Provided, That such costs, including the 
cost of modifying such loans, shall be as defined in section 502 of the 
Congressional Budget Act of 1974, as amended: Provided further, That 
these funds are available to subsidize gross obligations for the 
principal amount of direct loans not to exceed $25,000,000.
    In addition, for administrative expenses to carry out the direct 
loan program, $548,000.

                         salaries and expenses

    For necessary expenses, not otherwise provided for, including hire 
and purchase of motor vehicles (31 U.S.C. 1343); uniforms, or 
allowances therefor, as authorized by 5 U.S.C. 5901-5902; services as 
authorized by 5 U.S.C. 3109, but at rates for individuals not to exceed 
the per diem rate equivalent to the rate for GS-18; expenses of 
attendance of cooperating officials and individuals at meetings 
concerned with the work of emergency preparedness; transportation in 
connection with the continuity of Government programs to the same 
extent and in the same manner as permitted the Secretary of a Military 
Department under 10 U.S.C. 2632; and not to exceed $2,500 for official 
reception and representation expenses, $167,500,000.

                      office of inspector general

    For necessary expenses of the Office of Inspector General in 
carrying out the provisions of the Inspector General Act of 1978, as 
amended, $4,673,000.

              emergency management planning and assistance

    For necessary expenses, not otherwise provided for, to carry out 
activities under the National Flood Insurance Act of 1968, as amended, 
and the Flood Disaster Protection Act of 1973, as amended (42 U.S.C. 
4001 et seq.), the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5121 et seq.), the Earthquake Hazards 
Reduction Act of 1977, as amended (42 U.S.C. 7701 et seq.), the Federal 
Fire Prevention and Control Act of 1974, as amended (15 U.S.C. 2201 et 
seq.), the Defense Production Act of 1950, as amended (50 U.S.C. App. 
2061 et seq.), sections 107 and 303 of the National Security Act of 
1947, as amended (50 U.S.C. 404-405), and Reorganization Plan No. 3 of 
1978, $206,701,000.

                   emergency food and shelter program

    To carry out an emergency food and shelter program pursuant to 
title III of Public Law 100-77, as amended, $100,000,000: Provided, 
That total administrative costs shall not exceed three and one-half 
percent of the total appropriation.

                     national flood insurance fund

    For activities under the National Flood Insurance Act of 1968, the 
Flood Disaster Protection Act of 1973, and the National Flood Insurance 
Reform Act of 1994, not to exceed $20,981,000 for salaries and expenses 
associated with flood mitigation and flood insurance operations, and 
not to exceed $78,464,000 for flood mitigation, including up to 
$20,000,000 for expenses under section 1366 of the National Flood 
Insurance Act, which amount shall be available until September 30, 
1998. The first sentence of section 1376(c) of the National Flood 
Insurance Act of 1968, as amended (42 U.S.C. 4127(c)), is amended by 
striking all after ``this subsection'' and inserting ``such sums as may 
be necessary through September 30, 1997 for studies under this 
title.''. In fiscal year 1997, no funds in excess of (1) $47,000,000 
for operating expenses, (2) $335,680,000 for agents' commissions and 
taxes, and (3) $35,000,000 for interest on Treasury borrowings shall be 
available from the National Flood Insurance Fund without prior notice 
to the Committees on Appropriations. For fiscal year 1997, flood 
insurance rates shall not exceed the level authorized by the National 
Flood Insurance Reform Act of 1994. Section 1319 of the National Flood 
Insurance Act of 1968, as amended (42 U.S.C. 4026), is amended by 
striking out September 30, 1996.'' and inserting ``September 30, 
1997.''.

                           working capital fund

    For the establishment of a working capital fund for the Federal 
Emergency Management Agency, to be available without fiscal year 
limitation, for expenses and equipment necessary for maintenance and 
operations of such administrative services as the Director determines 
may be performed more advantageously as central services: Provided, 
That any inventories, equipment, and other assets pertaining to the 
services to be provided by such fund, either on hand or on order, less 
the related liabilities or unpaid obligations, and any appropriations 
made hereafter for the purpose of providing capital, shall be used to 
capitalize such fund: Provided further, That such fund shall be 
reimbursed or credited with advance payments from applicable 
appropriations and funds of the Federal Emergency Management Agency, 
other Federal agencies, and other sources authorized by law for which 
such centralized services are performed, including supplies, materials, 
and services, at rates that will return in full all expenses of 
operation, including accrued leave, depreciation of fund plant and 
equipment, amortization of automated data processing (ADP) software and 
systems (either acquired or donated), and an amount necessary to 
maintain a reasonable operating reserve as determined by the Director: 
Provided further, That income of such fund may be retained, to remain 
available until expended, for purposes of the fund: Provided further, 
That fees for services shall be established by the Director at a level 
to cover the total estimated costs of providing such services, such 
fees to be deposited in the fund shall remain available until expended 
for purposes of the fund: Provided further, That such fund shall 
terminate in a manner consistent with section 403(f) of Public Law 103-
356.

                         administrative provision

    The Director of the Federal Emergency Management Agency shall 
promulgate through rulemaking a methodology for assessment and 
collection of fees to be assessed and collected beginning in fiscal 
year 1997 applicable to persons subject to the Federal Emergency 
Management Agency's radiological emergency preparedness regulations. 
The aggregate charges assessed pursuant to this section during fiscal 
year 1997 shall approximate, but not be less than, 100 per centum of 
the amounts anticipated by the Federal Emergency Management Agency to 
be obligated for its radiological emergency preparedness program for 
such fiscal year. The methodology for assessment and collection of fees 
shall be fair and equitable, and shall reflect the full amount of costs 
of providing radiological emergency planning, preparedness, response 
and associated services. Such fees shall be assessed in a manner that 
reflects the use of agency resources for classes of regulated persons 
and the administrative costs of collecting such fees. Fees received 
pursuant to this section shall be deposited in the general fund of the 
Treasury as offsetting receipts. Assessment and collection of such fees 
are only authorized during fiscal year 1997.

                    General Services Administration

                    consumer information center fund

    For necessary expenses of the Consumer Information Center, 
including services authorized by 5 U.S.C. 3109, $2,260,000, to be 
deposited into the Consumer Information Center Fund: Provided, That the 
appropriations, revenues and collections deposited into the fund shall 
be available for necessary expenses of Consumer Information Center 
activities in the aggregate amount of $7,500,000. Appropriations, 
revenues, and collections accruing to this fund during fiscal year 1997 
in excess of $7,500,000 shall remain in the fund and shall not be 
available for expenditure except as authorized in appropriations Acts: 
Provided further, That notwithstanding any other provision of law, the 
Consumer Information Center may accept and deposit to this account, 
during fiscal year 1997 and hereafter, gifts for the purpose of 
defraying its costs of printing, publishing, and distributing consumer 
information and educational materials and undertaking other consumer 
information activities; may expend those gifts for those purposes, in 
addition to amounts appropriated or otherwise made available; and the 
balance shall remain available for expenditure for such purpose.

             National Aeronautics and Space Administration

                           human space flight

    For necessary expenses, not otherwise provided for, in the conduct 
and support of human space flight research and development activities, 
including research, development, operations, and services; maintenance; 
construction of facilities including repair, rehabilitation, and 
modification of real and personal property, and acquisition or 
condemnation of real property, as authorized by law; space flight, 
spacecraft control and communications activities including operations, 
production, and services; and purchase, lease, charter, maintenance and 
operation of mission and administrative aircraft, $5,362,900,000, to 
remain available until September 30, 1998.

                  science, aeronautics and technology

    For necessary expenses, not otherwise provided for, in the conduct 
and support of science, aeronautics and technology research and 
development activities, including research, development, operations, 
and services; maintenance; construction of facilities including repair, 
rehabilitation, and modification of real and personal property, and 
acquisition or condemnation of real property, as authorized by law; 
space flight, spacecraft control and communications activities 
including operations, production, and services; and purchase, lease, 
charter, maintenance and operation of mission and administrative 
aircraft, $5,762,100,000, to remain available until September 30, 1998. 
Chapter VII of Public Law 104-6 is amended under the heading, 
``National Aeronautics and Space Administration'' by replacing 
``September 30, 1997'' with ``September 30, 1998'' and ``1996'' with 
``1997''.

                            mission support

    For necessary expenses, not otherwise provided for, in carrying out 
mission support for human space flight programs and science, 
aeronautical, and technology programs, including research operations 
and support; space communications activities including operations, 
production and services; maintenance; construction of facilities 
including repair, rehabilitation, and modification of facilities, minor 
construction of new facilities and additions to existing facilities, 
facility planning and design, environmental compliance and restoration, 
and acquisition or condemnation of real property, as authorized by law; 
program management; personnel and related costs, including uniforms or 
allowances therefor, as authorized by 5 U.S.C. 5901-5902; travel 
expenses; purchase, lease, charter, maintenance, and operation of 
mission and administrative aircraft; not to exceed $35,000 for official 
reception and representation expenses; and purchase (not to exceed 33 
for replacement only) and hire of passenger motor vehicles; 
$2,562,200,000, to remain available until September 30, 1998.

                      office of inspector general

    For necessary expenses of the Office of Inspector General in 
carrying out the Inspector General Act of 1978, as amended, 
$17,000,000.

                        Administrative Provisions

                      (including transfer of funds)

    Notwithstanding the limitation on the availability of funds 
appropriated for ``Human space flight'', ``Science, aeronautics and 
technology'', or ``Mission support'' by this appropriations Act, when 
(1) any activity has been initiated by the incurrence of obligations 
for construction of facilities as authorized by law, or (2) amounts are 
provided for full-funding for the Tracking and Data Relay Satellite 
(TDRS) replenishment program, such amount available for such activity 
shall remain available until expended. This provision does not apply to 
the amounts appropriated in ``Mission support'' pursuant to the 
authorization for repair, rehabilitation and modification of 
facilities, minor construction of new facilities and additions to 
existing facilities, and facility planning and design.
    Notwithstanding the limitation on the availability of funds 
appropriated for ``Human space flight'', ``Science, aeronautics and 
technology'', or ``Mission support'' by this appropriations Act, the 
amounts appropriated for construction of facilities shall remain 
available until September 30, 1999.
    Notwithstanding the limitation on the availability of funds 
appropriated for ``Mission support'' and ``Office of Inspector 
General'', amounts made available by this Act for personnel and related 
costs and travel expenses of the National Aeronautics and Space 
Administration shall remain available until September 30, 1997 and may 
be used to enter into contracts for training, investigations, cost 
associated with personnel relocation, and for other services, to be 
provided during the next fiscal year.
    Upon the determination by the Administrator that such action is 
necesssary, the Administrator may, with the approval of the Office of 
Management and Budget, transfer not to exceed $177,000,000 of funds 
made available in this Act to the National Aeronautics and Space 
Administration for the International Space Station between ``Science, 
aeronautics and technology'' and ``Human space flight'', to be merged 
with and to be available for the same purposes, and for the same time 
period, as the appropriation to which transferred: Provided, That such 
authority may not be used unless for higher priority items than those 
for which originally appropriated: Provided further, That the 
Administrator of the National Aeronautics and Space Administration 
shall notify the Congress promptly of all transfers made pursuant to 
this authority.

                  National Credit Union Administration

                       central liquidity facility

    During fiscal year 1997, gross obligations of the Central Liquidity 
Facility for the principal amount of new direct loans to member credit 
unions, as authorized by the National Credit Union Central Liquidity 
Facility Act (12 U.S.C. 1795), shall not exceed $600,000,000: Provided, 
That administrative expenses of the Central Liquidity Facility in 
fiscal year 1997 shall not exceed $560,000: Provided further, That 
$1,000,000, together with amounts of principal and interest on loans 
repaid, to be available until expended, is available for loans to 
community development credit unions.

                      National Science Foundation

                    research and related activities

    For necessary expenses in carrying out the National Science 
Foundation Act of 1950, as amended (42 U.S.C. 1861-1875), and the Act 
to establish a National Medal of Science (42 U.S.C. 1880-1881); 
services as authorized by 5 U.S.C. 3109; maintenance and operation of 
aircraft and purchase of flight services for research support; 
acquisition of aircraft; $2,432,000,000, of which not to exceed 
$226,000,000 shall remain available until expended for Polar research 
and operations support, and for reimbursement to other Federal agencies 
for operational and science support and logistical and other related 
activities for the United States Antarctic program; the balance to 
remain available until September 30, 1998: Provided, That receipts for 
scientific support services and materials furnished by the National 
Research Centers and other National Science Foundation supported 
research facilities may be credited to this appropriation: Provided 
further, That to the extent that the amount appropriated is less than 
the total amount authorized to be appropriated for included program 
activities, all amounts, including floors and ceilings, specified in 
the authorizing Act for those program activities or their subactivities 
shall be reduced proportionally.

                        major research equipment

    For necessary expenses of major construction projects pursuant to 
the National Science Foundation Act of 1950, as amended, $80,000,000, 
to remain available until expended.

                     education and human resources

    For necessary expenses in carrying out science and engineering 
education and human resources programs and activities pursuant to the 
National Science Foundation Act of 1950, as amended (42 U.S.C. 1861-
1875), including services as authorized by 5 U.S.C. 3109 and rental of 
conference rooms in the District of Columbia, $619,000,000, to remain 
available until September 30, 1998: Provided, That to the extent that 
the amount of this appropriation is less than the total amount 
authorized to be appropriated for included program activities, all 
amounts, including floors and ceilings, specified in the authorizing 
Act for those program activities or their subactivities shall be 
reduced proportionally.

                         salaries and expenses

    For necessary salaries and expenses of the National Science 
Foundation Act of 1950, as amended (42 U.S.C. 1861-1875); services 
authorized by 5 U.S.C. 3109; hire of passenger motor vehicles; not to 
exceed $9,000 for official reception and representation expenses; 
uniforms or allowances therefor, as authorized by 5 U.S.C. 5901-5902; 
rental of conference rooms in the District of Columbia; reimbursement 
of the General Services Administration for security guard services and 
headquarters relocation; $134,310,000: Provided, That contracts may be 
entered into under salaries and expenses in fiscal year 1997 for 
maintenance and operation of facilities, and for other services, to be 
provided during the next fiscal year.

                      office of inspector general

    For necessary expenses of the Office of Inspector General as 
authorized by the Inspector General Act of 1978, as amended, 
$4,690,000, to remain available until September 30, 1998.

                 Neighborhood Reinvestment Corporation

          payment to the neighborhood reinvestment corporation

    For payment to the Neighborhood Reinvestment Corporation for use in 
neighborhood reinvestment activities, as authorized by the Neighborhood 
Reinvestment Corporation Act (42 U.S.C. 8101-8107), $49,900,000.

                        Selective Service System

                         salaries and expenses

    For necessary expenses of the Selective Service System, including 
expenses of attendance at meetings and of training for uniformed 
personnel assigned to the Selective Service System, as authorized by 5 
U.S.C. 4101-4118 for civilian employees; and not to exceed $1,000 for 
official reception and representation expenses; $22,930,000: Provided, 
That during the current fiscal year, the President may exempt this 
appropriation from the provisions of 31 U.S.C. 1341, whenever he deems 
such action to be necessary in the interest of national defense: 
Provided further, That none of the funds appropriated by this Act may 
be expended for or in connection with the induction of any person into 
the Armed Forces of the United States.

                      TITLE IV--GENERAL PROVISIONS

    Sec. 401. Where appropriations in titles I, II, and III of this Act 
are expendable for travel expenses and no specific limitation has been 
placed thereon, the expenditures for such travel expenses may not 
exceed the amounts set forth therefore in the budget estimates 
submitted for the appropriations: Provided, That this provision does 
not apply to accounts that do not contain an object classification for 
travel: Provided further, That this section shall not apply to travel 
performed by uncompensated officials of local boards and appeal boards 
of the Selective Service System; to travel performed directly in 
connection with care and treatment of medical beneficiaries of the 
Department of Veterans Affairs; to travel performed in connection with 
major disasters or emergencies declared or determined by the President 
under the provisions of the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act; to travel performed by the Offices of 
Inspector General in connection with audits and investigations; or to 
payments to interagency motor pools where separately set forth in the 
budget schedules: Provided further, That if appropriations in titles I, 
II, and III exceed the amounts set forth in budget estimates initially 
submitted for such appropriations, the expenditures for travel may 
correspondingly exceed the amounts therefore set forth in the estimates 
in the same proportion.
    Sec. 402. Appropriations and funds available for the administrative 
expenses of the Department of Housing and Urban Development and the 
Selective Service System shall be available in the current fiscal year 
for purchase of uniforms, or allowances therefor, as authorized by 5 
U.S.C. 5901-5902; hire of passenger motor vehicles; and services as 
authorized by 5 U.S.C. 3109.
    Sec. 403. Funds of the Department of Housing and Urban Development 
subject to the Government Corporation Control Act or section 402 of the 
Housing Act of 1950 shall be available, without regard to the 
limitations on administrative expenses, for legal services on a 
contract or fee basis, and for utilizing and making payment for 
services and facilities of Federal National Mortgage Association, 
Government National Mortgage Association, Federal Home Loan Mortgage 
Corporation, Federal Financing Bank, Federal Reserve banks or any 
member thereof, Federal Home Loan banks, and any insured bank within 
the meaning of the Federal Deposit Insurance Corporation Act, as 
amended (12 U.S.C. 1811-1831).
    Sec. 404. No part of any appropriation contained in this Act shall 
remain available for obligation beyond the current fiscal year unless 
expressly so provided herein.
    Sec. 405. No funds appropriated by this Act may be expended--
        (1) pursuant to a certification of an officer or employee of 
    the United States unless--
            (A) such certification is accompanied by, or is part of, a 
        voucher or abstract which describes the payee or payees and the 
        items or services for which such expenditure is being made, or
            (B) the expenditure of funds pursuant to such 
        certification, and without such a voucher or abstract, is 
        specifically authorized by law; and
        (2) unless such expenditure is subject to audit by the General 
    Accounting Office or is specifically exempt by law from such audit.
    Sec. 406. None of the funds provided in this Act to any department 
or agency may be expended for the transportation of any officer or 
employee of such department or agency between his domicile and his 
place of employment, with the exception of any officer or employee 
authorized such transportation under 31 U.S.C. 1344 or 5 U.S.C. 7905.
    Sec. 407. None of the funds provided in this Act may be used for 
payment, through grants or contracts, to recipients that do not share 
in the cost of conducting research resulting from proposals not 
specifically solicited by the Government: Provided, That the extent of 
cost sharing by the recipient shall reflect the mutuality of interest 
of the grantee or contractor and the Government in the research.
    Sec. 408. None of the funds in this Act may be used, directly or 
through grants, to pay or to provide reimbursement for payment of the 
salary of a consultant (whether retained by the Federal Government or a 
grantee) at more than the daily equivalent of the rate paid for level 
IV of the Executive Schedule, unless specifically authorized by law.
    Sec. 409. None of the funds provided in this Act shall be used to 
pay the expenses of, or otherwise compensate, non-Federal parties 
intervening in regulatory or adjudicatory proceedings. Nothing herein 
affects the authority of the Consumer Product Safety Commission 
pursuant to section 7 of the Consumer Product Safety Act (15 U.S.C. 
2056 et seq.).
    Sec. 410. Except as otherwise provided under existing law or under 
an existing Executive Order issued pursuant to an existing law, the 
obligation or expenditure of any appropriation under this Act for 
contracts for any consulting service shall be limited to contracts 
which are (1) a matter of public record and available for public 
inspection, and (2) thereafter included in a publicly available list of 
all contracts entered into within twenty-four months prior to the date 
on which the list is made available to the public and of all contracts 
on which performance has not been completed by such date. The list 
required by the preceding sentence shall be updated quarterly and shall 
include a narrative description of the work to be performed under each 
such contract.
    Sec. 411. Except as otherwise provided by law, no part of any 
appropriation contained in this Act shall be obligated or expended by 
any executive agency, as referred to in the Office of Federal 
Procurement Policy Act (41 U.S.C. 401 et seq.), for a contract for 
services unless such executive agency (1) has awarded and entered into 
such contract in full compliance with such Act and the regulations 
promulgated thereunder, and (2) requires any report prepared pursuant 
to such contract, including plans, evaluations, studies, analyses and 
manuals, and any report prepared by the agency which is substantially 
derived from or substantially includes any report prepared pursuant to 
such contract, to contain information concerning (A) the contract 
pursuant to which the report was prepared, and (B) the contractor who 
prepared the report pursuant to such contract.
    Sec. 412. Except as otherwise provided in section 406, none of the 
funds provided in this Act to any department or agency shall be 
obligated or expended to provide a personal cook, chauffeur, or other 
personal servants to any officer or employee of such department or 
agency.
    Sec. 413. None of the funds provided in this Act to any department 
or agency shall be obligated or expended to procure passenger 
automobiles as defined in 15 U.S.C. 2001 with an EPA estimated miles 
per gallon average of less than 22 miles per gallon.
    Sec. 414. None of the funds appropriated in title I of this Act 
shall be used to enter into any new lease of real property if the 
estimated annual rental is more than $300,000 unless the Secretary 
submits, in writing, a report to the Committees on Appropriations of 
the Congress and a period of 30 days has expired following the date on 
which the report is received by the Committees on Appropriations.
    Sec. 415. (a) Purchase of American-Made Equipment and Products.--It 
is the sense of the Congress that, to the greatest extent practicable, 
all equipment and products purchased with funds made available in this 
Act should be American-made.
    (b) Notice Requirement.--In providing financial assistance to, or 
entering into any contract with, any entity using funds made available 
in this Act, the head of each Federal agency, to the greatest extent 
practicable, shall provide to such entity a notice describing the 
statement made in subsection (a) by the Congress.
    Sec. 416. None of the funds appropriated in this Act may be used to 
implement any cap on reimbursements to grantees for indirect costs, 
except as published in Office of Management and Budget Circular A-21.
    Sec. 417. Such sums as may be necessary for fiscal year 1997 pay 
raises for programs funded by this Act shall be absorbed within the 
levels appropriated in this Act.
    Sec. 418. None of the funds made available in this Act may be used 
for any program, project, or activity, when it is made known to the 
Federal entity or official to which the funds are made available that 
the program, project, or activity is not in compliance with any Federal 
law relating to risk assessment, the protection of private property 
rights, or unfunded mandates.
    Sec. 419. Such funds as may be necessary to carry out the orderly 
termination of the Office of Consumer Affairs shall be made available 
from funds appropriated to the Department of Health and Human Services 
for fiscal year 1997.
    Sec. 420. Corporations and agencies of the Department of Housing 
and Urban Development which are subject to the Government Corporation 
Control Act, as amended, are hereby authorized to make such 
expenditures, within the limits of funds and borrowing authority 
available to each such corporation or agency and in accord with law, 
and to make such contracts and commitments without regard to fiscal 
year limitations as provided by section 104 of the Act as may be 
necessary in carrying out the programs set forth in the budget for 1997 
for such corporation or agency except as hereinafter provided: 
Provided, That collections of these corporations and agencies may be 
used for new loan or mortgage purchase commitments only to the extent 
expressly provided for in this Act (unless such loans are in support of 
other forms of assistance provided for in this or prior appropriations 
Acts), except that this proviso shall not apply to the mortgage 
insurance or guaranty operations of these corporations, or where loans 
or mortgage purchases are necessary to protect the financial interest 
of the United States Government.
    Sec. 421. (a) The purpose of this section is to provide for the 
special needs of certain children of Vietnam veterans who were born 
with the birth defect spina bifida, possibly as the result of the 
exposure of one or both parents to herbicides during active service in 
the Republic of Vietnam during the Vietnam era, through the provision 
of health care and monetary benefits.
    (b)(1) Part II of title 38, United States Code, is amended by 
inserting after chapter 17 the following new chapter:

 ``CHAPTER 18--BENEFITS FOR CHILDREN OF VIETNAM VETERANS WHO ARE BORN 
                           WITH SPINA BIFIDA

``Sec.
``1801. Definitions.
``1802. Spina bifida conditions covered.
``1803. Health care.
``1804. Vocational training and rehabilitation.
``1805. Monetary allowance.
``1806. Effective date of awards.

``Sec. 1801. Definitions

    ``For the purposes of this chapter--
        ``(1) The term `child', with respect to a Vietnam veteran, 
    means a natural child of the Vietnam veteran, regardless of age or 
    marital status, who was conceived after the date on which the 
    veteran first entered the Republic of Vietnam during the Vietnam 
    era.
        ``(2) The term `Vietnam veteran' means a veteran who performed 
    active military, naval, or air service in the Republic of Vietnam 
    during the Vietnam era.

``Sec. 1802. Spina bifida conditions covered

    ``This chapter applies with respect to all forms and manifestations 
of spina bifida except spina bifida occulta.

``Sec. 1803. Health care

    ``(a) In accordance with regulations which the Secretary shall 
prescribe, the Secretary shall provide a child of a Vietnam veteran who 
is suffering from spina bifida with such health care as the Secretary 
determines is needed by the child for the spina bifida or any 
disability that is associated with such condition.
    ``(b) The Secretary may provide health care under this section 
directly or by contract or other arrangement with any health care 
provider.
    ``(c) For the purposes of this section--
        ``(1) The term `health care'--
            ``(A) means home care, hospital care, nursing home care, 
        outpatient care, preventive care, habilitative and 
        rehabilitative care, case management, and respite care; and
            ``(B) includes--
                ``(i) the training of appropriate members of a child's 
            family or household in the care of the child; and
                ``(ii) the provision of such pharmaceuticals, supplies, 
            equipment, devices, appliances, assistive technology, 
            direct transportation costs to and from approved sources of 
            health care, and other materials as the Secretary 
            determines necessary.
        ``(2) The term `health care provider' includes specialized 
    spina bifida clinics, health care plans, insurers, organizations, 
    institutions, and any other entity or individual who furnishes 
    health care that the Secretary determines authorized under this 
    section.
        ``(3) The term `home care' means outpatient care, habilitative 
    and rehabilitative care, preventive health services, and health-
    related services furnished to an individual in the individual's 
    home or other place of residence.
        ``(4) The term `hospital care' means care and treatment for a 
    disability furnished to an individual who has been admitted to a 
    hospital as a patient.
        ``(5) The term `nursing home care' means care and treatment for 
    a disability furnished to an individual who has been admitted to a 
    nursing home as a resident.
        ``(6) The term `outpatient care' means care and treatment of a 
    disability, and preventive health services, furnished to an 
    individual other than hospital care or nursing home care.
        ``(7) The term `preventive care' means care and treatment 
    furnished to prevent disability or illness, including periodic 
    examinations, immunizations, patient health education, and such 
    other services as the Secretary determines necessary to provide 
    effective and economical preventive health care.
        ``(8) The term `habilitative and rehabilitative care' means 
    such professional, counseling, and guidance services and treatment 
    programs (other than vocational training under section 1804 of this 
    title) as are necessary to develop, maintain, or restore, to the 
    maximum extent practicable, the functioning of a disabled person.
        ``(9) The term `respite care' means care furnished on an 
    intermittent basis for a limited period to an individual who 
    resides primarily in a private residence when such care will help 
    the individual to continue residing in such private residence.

``Sec. 1804. Vocational training and rehabilitation

    ``(a) Pursuant to such regulations as the Secretary may prescribe, 
the Secretary may provide vocational training under this section to a 
child of a Vietnam veteran who is suffering from spina bifida if the 
Secretary determines that the achievement of a vocational goal by such 
child is reasonably feasible.
    ``(b) Any program of vocational training for a child under this 
section shall be designed in consultation with the child in order to 
meet the child's individual needs and shall be set forth in an 
individualized written plan of vocational rehabilitation.
    ``(c)(1) A vocational training program for a child under this 
section--
        ``(A) shall consist of such vocationally oriented services and 
    assistance, including such placement and post-placement services 
    and personal and work adjustment training, as the Secretary 
    determines are necessary to enable the child to prepare for and 
    participate in vocational training or employment; and
        ``(B) may include a program of education at an institution of 
    higher education if the Secretary determines that the program of 
    education is predominantly vocational in content.
    ``(2) A vocational training program under this subsection may not 
include the provision of any loan or subsistence allowance or any 
automobile adaptive equipment.
    ``(d)(1) Except as provided in paragraph (2) and subject to 
subsection (e)(2), a vocational training program under this section may 
not exceed 24 months.
    ``(2) The Secretary may grant an extension of a vocational training 
program for a child under this section for up to 24 additional months 
if the Secretary determines that the extension is necessary in order 
for the child to achieve a vocational goal identified (before the end 
of the first 24 months of such program) in the written plan of 
vocational rehabilitation formulated for the child pursuant to 
subsection (b).
    ``(e)(1) A child who is pursuing a program of vocational training 
under this section and is also eligible for assistance under a program 
under chapter 35 of this title may not receive assistance under both 
such programs concurrently. The child shall elect (in such form and 
manner as the Secretary may prescribe) the program under which the 
child is to receive assistance.
    ``(2) The aggregate period for which a child may receive assistance 
under this section and chapter 35 of this title may not exceed 48 
months (or the part-time equivalent thereof).

``Sec. 1805. Monetary allowance

    ``(a) The Secretary shall pay a monthly allowance under this 
chapter to any child of a Vietnam veteran for any disability resulting 
from spina bifida suffered by such child.
    ``(b)(1) The amount of the allowance paid to a child under this 
section shall be based on the degree of disability suffered by the 
child, as determined in accordance with such schedule for rating 
disabilities resulting from spina bifida as the Secretary may 
prescribe.
    ``(2) The Secretary shall, in prescribing the rating schedule for 
the purposes of this section, establish three levels of disability upon 
which the amount of the allowance provided by this section shall be 
based.
    ``(3) The amounts of the allowance shall be $200 per month for the 
lowest level of disability prescribed, $700 per month for the 
intermediate level of disability prescribed, and $1,200 per month for 
the highest level of disability prescribed. Such amounts are subject to 
adjustment under section 5312 of this title.
    ``(c) Notwithstanding any other provision of law, receipt by a 
child of an allowance under this section shall not impair, infringe, or 
otherwise affect the right of the child to receive any other benefit to 
which the child may otherwise be entitled under any law administered by 
the Secretary, nor shall receipt of such an allowance impair, infringe, 
or otherwise affect the right of any individual to receive any benefit 
to which the individual is entitled under any law administered by the 
Secretary that is based on the child's relationship to the individual.
    ``(d) Notwithstanding any other provision of law, the allowance 
paid to a child under this section shall not be considered income or 
resources in determining eligibility for or the amount of benefits 
under any Federal or federally assisted program.

``Sec. 1806. Effective date of awards

    ``The effective date for an award of benefits under this chapter 
shall be fixed in accordance with the facts found, but shall not be 
earlier than the date of receipt of application for the benefits.''.
    (2) The tables of chapters before part I and at the beginning of 
part II of such title are each amended by inserting after the item 
referring to chapter 17 the following new item:

``18. Benefits for Children of Vietnam Veterans Who Are Born With 
Spina Bifida.....................................................1801''.

    (c) Section 5312 of title 38, United States Code, is amended--
        (1) in subsection (a)--
            (A) by striking out ``and the rate of increased pension'' 
        and inserting in lieu thereof ``, the rate of increased 
        pension''; and
            (B) by inserting after ``on account of children,'' the 
        following: ``and each rate of monthly allowance paid under 
        section 1805 of this title,''; and
        (2) in subsection (c)(1), by striking out ``and 1542'' and 
    inserting in lieu thereof ``1542, and 1805''.
    (d) This section and the amendments made by this section shall take 
effect on January 1, 1997.
    Sec. 422. (a) Section 1151 of title 38, United States Code, is 
amended--
        (1) by striking out the first sentence and inserting in lieu 
    thereof the following:
    ``(a) Compensation under this chapter and dependency and indemnity 
compensation under chapter 13 of this title shall be awarded for a 
qualifying additional disability or a qualifying death of a veteran in 
the same manner as if such additional disability or death were service-
connected. For purposes of this section, a disability or death is a 
qualifying additional disability or qualifying death if the disability 
or death was not the result of the veteran's willful misconduct and--
        ``(1) the disability or death was caused by hospital care, 
    medical or surgical treatment, or examination furnished the veteran 
    under any law administered by the Secretary, either by a Department 
    employee or in a Department facility as defined in section 
    1701(3)(A) of this title, and the proximate cause of the disability 
    or death was--
            ``(A) carelessness, negligence, lack of proper skill, error 
        in judgment, or similar instance of fault on the part of the 
        Department in furnishing the hospital care, medical or surgical 
        treatment, or examination; or
            ``(B) an event not reasonably foreseeable; or
        ``(2) the disability or death was proximately caused by the 
    provision of training and rehabilitation services by the Secretary 
    (including by a service-provider used by the Secretary for such 
    purpose under section 3115 of this title) as part of an approved 
    rehabilitation program under chapter 31 of this title.''; and
        (2) in the second sentence--
            (A) by redesignating that sentence as subsection (b);
            (B) by striking out ``, aggravation,'' both places it 
        appears; and
            (C) by striking out ``sentence'' and substituting in lieu 
        thereof ``subsection''.
    (b)(1) The amendments made by subsection (a) shall take effect on 
October 1, 1996.
    (2) Section 1151 of title 38, United States Code (as amended by 
subsection (a)), shall govern all administrative and judicial 
determinations of eligibility for benefits under such section that are 
made with respect to claims filed on or after the effective date set 
forth in paragraph (1), including those based on original applications 
and applications seeking to reopen, revise, reconsider, or otherwise 
readjudicate on any basis claims for benefits under such section 1151 
or any provision of law that is a predecessor of such section.
    (c) Nothwithstanding subsection (b)(1), section 421(d), or any 
other provision of this Act, section 421 and this section shall not 
take effect until October 1, 1997, unless legislation other than this 
Act is enacted to provide for an earlier effective date.
    Sec. 423. The amount provided in title I for ``Veterans Health 
Administration--Medical Care'' is hereby increased by $5,000,000.
    Sec. 424. FHA Mortgage Insurance Premiums.--Section 203(c)(2)(A) of 
the National Housing Act (12 U.S.C. 1709(c)(2)(A)) is amended by 
inserting after the first sentence the following new sentence: ``In the 
case of a mortgage for which the mortgagor is a first-time homebuyer 
who completes a program of counseling with respect to the 
responsibilities and financial management involved in homeownership 
that is approved by the Secretary, the premium payment under this 
subparagraph shall not exceed 2.0 percent of the amount of the original 
insured principal obligation of the mortgage.''.
    Sec. 425. (a) Authority To Use Amounts Borrowed From Family Members 
for Downpayments on FHA-Insured Loans.--Section 203(b)(9) of the 
National Housing Act (12 U.S.C. 1709(b)(9)) is amended by inserting 
before the period at the end the following: ``: Provided further, That 
for purposes of this paragraph, the Secretary shall consider as cash or 
its equivalent any amounts borrowed from a family member (as such term 
is defined in section 201), subject only to the requirements that, in 
any case in which the repayment of such borrowed amounts is secured by 
a lien against the property, such lien shall be subordinate to the 
mortgage and the sum of the principal obligation of the mortgage and 
the obligation secured by such lien may not exceed 100 percent of the 
appraised value of the property plus any initial service charges, 
appraisal, inspection, and other fees in connection with the 
mortgage''.
    (b) Definition of Family Member.--Section 201 of the National 
Housing Act (12 U.S.C. 1707) is amended by adding at the end the 
following new subsections:
    ``(e) The term `family member' means, with respect to a mortgagor 
under such section, a child, parent, or grandparent of the mortgagor 
(or the mortgagor's spouse). In determining whether any of the 
relationships referred to in the preceding sentence exist, a legally 
adopted son or daughter of an individual (and a child who is a member 
of an individual's household, if placed with such individual by an 
authorized placement agency for legal adoption by such individual), and 
a foster child of an individual, shall be treated as a child of such 
individual by blood.
    ``(f) The term `child' means, with respect to a mortgagor under 
such section, a son, stepson, daughter, or stepdaughter of such 
mortgagor.''.
    Sec. 426. Calculation of Downpayment.--Section 203(b) of the 
National Housing Act (12 U.S.C. 1709(b)) is amended by adding at the 
end the following new paragraph:
        ``(10) Alaska and hawaii.--
            ``(A) In general.--Notwithstanding any other provision of 
        this subsection, with respect to a mortgage originated in the 
        State of Alaska or the State of Hawaii and endorsed for 
        insurance in fiscal year 1997, involving a principal obligation 
        not in excess of the sum of--
                ``(i) the amount of the mortgage insurance premium paid 
            at the time the mortgage is insured; and
                ``(ii)(I) in the case of a mortgage for a property with 
            an appraised value equal to or less than $50,000, 98.75 
            percent of the appraised value of the property;
                ``(II) in the case of a mortgage for a property with an 
            appraised value in excess of $50,000 but not in excess of 
            $125,000, 97.65 percent of the appraised value of the 
            property;
                ``(III) in the case of a mortgage for a property with 
            an appraised value in excess of $125,000, 97.15 percent of 
            the appraised value of the property; or
                ``(IV) notwithstanding subclauses (II) and (III), in 
            the case of a mortgage for a property with an appraised 
            value in excess of $50,000 that is located in an area of 
            the State for which the average closing cost exceeds 2.10 
            percent of the average, for the State, of the sale price of 
            properties located in the State for which mortgages have 
            been executed, 97.75 percent of the appraised value of the 
            property.
            ``(B) Average closing cost.--For purposes of this 
        paragraph, the term `average closing cost' means, with respect 
        to a State, the average, for mortgages executed for properties 
        that are located within the State, of the total amounts (as 
        determined by the Secretary) of initial service charges, 
        appraisal, inspection, and other fees (as the Secretary shall 
        approve) that are paid in connection with such mortgages.''.
    Sec. 427. Delegation of Single Family Mortgage Insuring Authority 
to Direct Endorsement Mortgagees.--Title II of the National Housing Act 
(12 U.S.C. 1707 et seq.) is amended by adding at the end the following 
new section:

   ``delegation of insuring authority to direct endorsement mortgagees

    ``Sec. 256.(a) Authority.--The Secretary may delegate, to one or 
more mortgagees approved by the Secretary under the direct endorsement 
program, the authority of the Secretary under this Act to insure 
mortgages involving property upon which there is located a dwelling 
designed principally for occupancy by 1 to 4 families.
    ``(b) Considerations.--In determining whether to delegate authority 
to a mortgagee under this section, the Secretary shall consider the 
experience and performance of the mortgagee compared to the default 
rate of all insured mortgages in comparable markets, and such other 
factors as the Secretary determines appropriate to minimize risk of 
loss to the insurance funds under this Act.
    ``(c) Enforcement of Insurance Requirements.--
        ``(1) In general.--If the Secretary determines that a mortgage 
    insured by a mortgagee pursuant to delegation of authority under 
    this section was not originated in accordance with the requirements 
    established by the Secretary, and the Secretary pays an insurance 
    claim with respect to the mortgage within a reasonable period 
    specified by the Secretary, the Secretary may require the mortgagee 
    approved under this section to indemnify the Secretary for the 
    loss.
        ``(2) Fraud or misrepresentation.--If fraud or 
    misrepresentation was involved in connection with the origination, 
    the Secretary may require the mortgagee approved under this section 
    to indemnify the Secretary for the loss regardless of when an 
    insurance claim is paid.
    ``(d) Termination of Mortgagee's Authority.--If a mortgagee to 
which the Secretary has made a delegation under this section violates 
the requirements and procedures established by the Secretary or the 
Secretary determines that other good cause exists, the Secretary may 
cancel a delegation of authority under this section to the mortgagee by 
giving notice to the mortgagee. Such a cancellation shall be effective 
upon receipt of the notice by the mortgagee or at a later date 
specified by the Secretary. A decision by the Secretary to cancel a 
delegation shall be final and conclusive and shall not be subject to 
judicial review.
    ``(e) Requirements and Procedures.--Before approving a delegation 
under this section, the Secretary shall issue regulations establishing 
appropriate requirements and procedures, including requirements and 
procedures governing the indemnification of the Secretary by the 
mortgagee.''.
    Sec. 428. Implementation of Comprehensive Conservation and 
Management Plans.--Notwithstanding section 320(g) of the Federal Water 
Pollution Control Act (33 U.S.C. 1330(g)), funds made available 
pursuant to authorization under such section for fiscal year 1997 and 
prior fiscal years may be used for implementing comprehensive 
conservation and management plans.
    Sec. 429. (a) Plan.--(1) The Secretary of Veterans Affairs shall 
develop a plan for the allocation of health care resources (including 
personnel and funds) of the Department of Veterans Affairs among the 
health care Networks of the Department so as to ensure that veterans 
who have similar economic status and eligibility priority and who are 
eligible for medical care have similar access to such care regardless 
of the region of the United States in which such veterans reside.
    (2) The plan shall--
        (A) reflect, to the maximum extent possible, the Veterans 
    Integrated Service Network developed by the Department to account 
    for forecasts in expected workload and to ensure fairness to 
    facilities that provide cost-efficient health care; and
        (B) include--
            (i) procedures to identify reasons for variations in 
        operating costs among similar facilities where Network 
        allocations are based on similar unit costs for similar 
        services and workload;
            (ii) ways to improve the allocation of resources so as to 
        promote efficient use of resources and provision of quality 
        health care;
            (iii) adjustments to unit costs in subsection (a) to 
        reflect factors which directly influence the cost of health 
        care delivery within each Network and where such factors are 
        not under the control of Network or Department management; and
            (iv) include forecasts in expected workload and 
        consideration of the demand for Veterans Administration health 
        care that may not be reflected in current workload projections.
    (3) The Secretary shall prepare the plan in consultation with the 
Under Secretary of Health of the Department of Veterans Affairs.
    (b) Plan Elements.--The plan under subsection (a) shall set forth--
        (1) milestones for achieving the goal referred to in paragraph 
    (1) of that subsection; and
        (2) a means of evaluating the success of the Secretary in 
    meeting the goal.
    (c) Submittal to Congress.--The Secretary shall submit to Congress 
the plan developed under subsection (a) not later than 180 days after 
the date of the enactment of this Act.
    (d) Implementation.--The Secretary shall implement the plan 
developed under subsection (a) not later than 60 days after submitting 
the plan to Congress under subsection (c), unless within that time the 
Secretary notifies Congress that the plan will not be implemented in 
that time and includes with the notification an explanation why the 
plan will not be implemented in that time.
    Sec. 430. GAO Audit on Staffing and Contracting.--The Comptroller 
General shall audit the operations of the Office of Federal Housing 
Enterprise Oversight concerning staff organization, expertise, 
capacity, and contracting authority to ensure that the office resources 
and contract authority are adequate and that they are being used 
appropriately to ensure that the Federal National Mortgage Association 
and the Federal Home Loan Mortgage Corporation are adequately 
capitalized and operating safely.
    Sec. 431. None of the funds appropriated or otherwise made 
available to the National Aeronautics and Space Administration by this 
Act, or any other Act enacted before the date of enactment of this Act, 
may be used by the Administrator of the National Aeronautics and Space 
Administration to relocate aircraft of the National Aeronautics and 
Space Administration based east of the Mississippi River to the Dryden 
Flight Research Center in California for the purpose of the 
consolidation of such aircraft.
    Sec. 432. To Promote and Support Management Reorganization of the 
National Aeronautics and Space Administration.--(a) Short Title.--This 
section may be cited as the ``National Aeronautics and Space 
Administration Federal Employment Reduction Assistance Act of 1996.''.
    (b) Definitions.--For the purpose of this section--
        (1) the term ``Administrator'' means the Administrator of the 
    National Aeronautics and Space Administration; and
        (2) the term ``employee'' means an employee of the National 
    Aeronautics and Space Administration serving under an appointment 
    without time limitation, who has been currently employed with NASA 
    for a continuous period of at least twelve months, except that such 
    term does not include--
            (A) a reemployed annuitant under subchapter III of chapter 
        83 or chapter 84 of title 5, United States Code, or another 
        retirement system for employees of the Government;
            (B) an employee who is in receipt of a specific notice of 
        involuntary separation for misconduct or unacceptable 
        performance;
            (C) an employee who, upon completing an additional period 
        of service as referred to in section 3(b)(2)(B)(ii) of the 
        Federal Workforce Restructuring Act of 1994 (Public Law 103-
        226; 108 Stat. 111), would qualify for a voluntary separation 
        incentive payment under section 3 of such Act; or
            (D) an employee who has previously received any voluntary 
        separation incentive payment by the Federal Government under 
        this Act or any other authority and has not repaid such 
        payment.
    (c) Incentive Payment Program.--In order to avoid or minimize the 
need for involuntary separations due to a reduction in force, 
installation closure, reorganization, transfer of function, or other 
similar action affecting the National Aeronautics and Space 
Administration, the Administrator shall establish a program under which 
separation pay, subject to the availability of appropriated funds, may 
be offered to encourage eligible employees to separate from service 
voluntarily (whether by retirement or resignation).
    (d) Incentive Payments.--In order to receive a voluntary separation 
incentive payment, an employee must separate voluntarily (whether by 
retirement or resignation) during the period of time for which the 
payment of incentives has been authorized for the employee under the 
agency plan. Such separation payments--
        (1) shall be paid in a lump sum after the employee's 
    separation, and
        (2) shall be equal to the lesser of--
            (A) an amount equal to the amount the employee would be 
        entitled to receive under section 5595(c) of title 5, United 
        States Code, if the employee were entitled to payment under 
        such section; or
            (B) an amount that shall not exceed $25,000;
        (3) shall not be a basis for payment, and shall not be included 
    in the computation, of any other type of Government benefit;
        (4) shall not be taken into account for purposes of determining 
    the amount of any severance pay to which an individual may be 
    entitled under section 5595 of title 5, United States Code, based 
    on any other separation;
        (5) shall be considered payment for a voluntary separa- tion; 
    and
        (6) shall be paid from the appropriations or funds available 
    for payment of the basic pay of the employee.
    (e) Effect of Subsequent Employment With the Government.--
        (1) An individual who has received a voluntary separation 
    incentive payment under this section and accepts any employment 
    with the Government of the United States within five years after 
    the date of the separation on which the payment is based shall be 
    required to repay, prior to the individual's first day of 
    employment, the entire amount of the incentive payment to NASA.
        (2) If the employment under paragraph (1) above is with an 
    executive agency (as defined by section 105 of title 5, United 
    States Code), the United States Postal Service, or the Postal Rate 
    Commission, the Director of the Office of Personnel Management may, 
    at the request of the head of the agency, waive the repayment if 
    the individual involved possesses unique abilities and is the only 
    qualified applicant available for the position.
        (3) If the employment under paragraph (1) above is with an 
    entity in the legislative branch, the head of the entity or the 
    appointing official may waive the repayment if the individual 
    involved possesses unique abilities and is the only qualified 
    applicant available for the position.
        (4) If the employment under paragraph (1) above is with the 
    judicial branch, the Director of the Administrative Office of the 
    United States Courts may waive the repayment if the individual 
    involved possesses unique abilities and is the only qualified 
    applicant available for the position.
        (5) For the purpose of this section, the term ``employment''--
            (A) includes employment of any length or under any type of 
        appointment, but does not include employment that is without 
        compensation; and
            (B) includes employment under a personal services contract.
    (f) Effect of Subsequent Disability Retirement.--An employee who 
has received an incentive payment is ineligible to receive an annuity 
for reasons of disability under applicable regulations, unless the 
incentive payment is repaid.
    (g) Additional Agency Contributions to the Retirement Fund.--
        (1) In addition to any other payments which it is required to 
    make under subchapter III of chapter 83 or chapter 84 of title 5, 
    United States Code, NASA shall remit to the Office of Personnel 
    Management for deposit in the Treasury of the United States to the 
    credit of the Civil Service Retirement and Disability Fund an 
    amount equal to 15 percent of the final basic pay of each employee 
    who is covered under subchapter III of chapter 83 or chapter 84 of 
    title 5 to whom a voluntary separation incentive has been paid 
    under this Act.
        (2) For the purpose of this section, the term ``final basic 
    pay'', with respect to an employee, means the total amount of basic 
    pay which would be payable for a year of service by such employee, 
    computed using the employee's final rate of basic pay, and, if last 
    serving on other than a full-time basis, with appropriate 
    adjustment therefor.
    (h) Reduction of Agency Employment Levels.--
        (1) Total full-time-equivalent employment in NASA shall be 
    reduced by one for each separation of an employee who receives a 
    voluntary separation incentive payment under this Act. The 
    reduction will be calculated by comparing the agency's full-time-
    equivalent employment for the fiscal year in which the voluntary 
    separation payments are made with the authorized full-time-
    equivalent employment for the prior fiscal year.
        (2) The Office of Management and Budget shall monitor and take 
    appropriate action necessary to ensure that the requirements of 
    this section are met.
        (3) The President shall take appropriate action to ensure that 
    functions involving more than 10 full time equivalent employees are 
    not converted to contracts by reason of the enactment of this 
    section, except in cases in which a cost comparison demonstrates 
    such contracts would be to the advantage of the Government.
        (4) The provisions of subsections (1) and (3) of this section 
    may be waived upon a determination by the President that--
            (A) the existence of a state of war or other national 
        emergency so requires; or
            (B) the existence of an extraordinary emergency which 
        threatens life, health, safety, property, or the environment so 
        requires.
    (i) Reports.--No later than March 31 of each fiscal year, NASA 
shall submit to the Office of Personnel Management, who will 
subsequently report to the Committee on Governmental Affairs of the 
Senate and the Committee on Government Reform and Oversight of the 
House of Representatives a report which, with respect to the preceding 
fiscal year, shall include--
        (1) the number of employees who received voluntary separation 
    incentives;
        (2) the average amount of such incentives; and
        (3) the average grade or pay level of the employees who 
    received incentives.
    (j) Effective Date.--
        (1) The provisions of this section shall take effect on the 
    date of enactment of this Act.
        (2) No voluntary separation incentive under this section may be 
    paid based on the separation of an employee after September 30, 
    2000.
    Sec. 433. (a) Subject to the concurrence of the Administrator of 
the General Services Administration (GSA) and notwithstanding section 
707 of Public Law 103-433, the Administrator of the National 
Aeronautics and Space Administration may convey to the city of Downey, 
California, all right, title, and interest of the United States in and 
to a parcel of real property, including improvements thereon, 
consisting of approximately 60 acres and known as Parcels III, IV, V, 
and VI of the NASA Industrial Plant, Downey, California.
    (b)(1) Delay in Payment of Consideration.--After the end of the 20-
year period beginning on the date on which the conveyance under 
subsection (a) is completed, the City of Downey shall pay to the United 
States an amount equal to fair market value of the conveyed property as 
of the date of the Federal conveyance.
    (2) Effect of Reconveyance by the City.--If the City of Downey 
reconveys all or any part of the conveyed property during such 20-year 
period, the City shall pay to the United States an amount equal to the 
fair market value of the reconveyed property as of the time of the 
reconveyance, excluding the value of any improvements made to the 
property by the City.
    (3) Determination of Fair Market Value.--The Administrator of GSA 
shall determine fair market value in accordance with Federal appraisal 
standards and procedures.
    (4) Treatment of Leases.--The Administrator of GSA may treat a 
lease of the property within such 20-year period as a reconveyance if 
the Administrator determines that the lease is being used to avoid 
application of paragraph (b)(2).
    (5) Deposit of Proceeds.--The Administrator of GSA shall deposit 
any proceeds received under this subsection in the special account 
established pursuant to section 204(h)(2) of the Federal Property and 
Administrative Services Act of 1949 (40 U.S.C. 485(h)(2)).
    (c) The exact acreage and legal description of the real property to 
be conveyed under subsection (a) shall be determined by a survey 
satisfactory to the Administrator of GSA. The cost of the survey shall 
be borne by the City of Downey, California.
    (d) The Administrator of GSA may require such additional terms and 
conditions in connection with the conveyance under subsection (a) as 
the Administrator of GSA considers appropriate to protect the interests 
of the United States.
    (e) If the City at any time after the conveyance of the property 
under subsection (a) notifies the Administrator of GSA that the City no 
longer wishes to retain the property, it may convey the property under 
the terms of subsection (b), or, it may revert all right, title, and 
interest in and to the property (including any facilities, equipment, 
or fixtures conveyed, but excluding the value of any improvements made 
to the property by the City) to the United States, and the United 
States shall have the right of immediate entry onto the property.

                         TITLE V--SUPPLEMENTAL

                     DEPARTMENT OF VETERANS AFFAIRS

                    Veterans Benefits Administration

                        compensation and pensions

    For an additional amount for ``Compensation and Pensions'', 
$100,000,000, to be made available upon enactment of this Act, to 
remain available until expended.

              DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

                Government National Mortgage Association

     guarantees of mortgage backed securities loan guarantee program 
                                account

    During fiscal year 1996 and in addition to commitments previously 
provided, additional commitments to issue guarantees to carry out 
section 306 of the National Housing Act, as amended (12 U.S.C. 
1721(g)), shall not exceed $20,000,000,000.

     TITLE VI--NEWBORNS' AND MOTHERS' HEALTH PROTECTION ACT OF 1996

    Sec. 601. Short Title.--This title may be cited as the ``Newborns' 
and Mothers' Health Protection Act of 1996''.
    Sec. 602. Findings.--Congress finds that--
        (1) the length of post-delivery hospital stay should be based 
    on the unique characteristics of each mother and her newborn child, 
    taking into consideration the health of the mother, the health and 
    stability of the newborn, the ability and confidence of the mother 
    and the father to care for their newborn, the adequacy of support 
    systems at home, and the access of the mother and her newborn to 
    appropriate follow-up health care; and
        (2) the timing of the discharge of a mother and her newborn 
    child from the hospital should be made by the attending provider in 
    consultation with the mother.
    Sec. 603. Amendments to the Employee Retirement Income Security Act 
of 1974.--(a) In General.--Part 7 of subtitle B of title I of the 
Employee Retirement Income Security Act of 1974 (added by section 
101(a) of the Health Insurance Portability and Accountability Act of 
1996) is amended--
        (1) by amending the heading of the part to read as follows:

              ``Part 7--Group Health Plan Requirements'';

        (2) by inserting after the part heading the following:

    ``Subpart A--Requirements Relating to Portability, Access, and 
                            Renewability'';

        (3) by redesignating sections 704 through 707 as sections 731 
    through 734, respectively;
        (4) by inserting before section 731 (as so redesignated) the 
    following new heading:

                   ``Subpart C--General Provisions'';

    and
        (5) by inserting after section 703 the following new subpart:

                    ``Subpart B--Other Requirements

``SEC. 711. STANDARDS RELATING TO BENEFITS FOR MOTHERS AND NEWBORNS.

    ``(a) Requirements for Minimum Hospital Stay Following Birth.--
        ``(1) In general.--A group health plan, and a health insurance 
    issuer offering group health insurance coverage, may not--
            ``(A) except as provided in paragraph (2)--
                ``(i) restrict benefits for any hospital length of stay 
            in connection with childbirth for the mother or newborn 
            child, following a normal vaginal delivery, to less than 48 
            hours, or
                ``(ii) restrict benefits for any hospital length of 
            stay in connection with childbirth for the mother or 
            newborn child, following a cesarean section, to less than 
            96 hours; or
            ``(B) require that a provider obtain authorization from the 
        plan or the issuer for prescribing any length of stay required 
        under subparagraph (A) (without regard to paragraph (2)).
        ``(2) Exception.--Paragraph (1)(A) shall not apply in 
    connection with any group health plan or health insurance issuer in 
    any case in which the decision to discharge the mother or her 
    newborn child prior to the expiration of the minimum length of stay 
    otherwise required under paragraph (1)(A) is made by an attending 
    provider in consultation with the mother.
    ``(b) Prohibitions.--A group health plan, and a health insurance 
issuer offering group health insurance coverage in connection with a 
group health plan, may not--
        ``(1) deny to the mother or her newborn child eligibility, or 
    continued eligibility, to enroll or to renew coverage under the 
    terms of the plan, solely for the purpose of avoiding the 
    requirements of this section;
        ``(2) provide monetary payments or rebates to mothers to 
    encourage such mothers to accept less than the minimum protections 
    available under this section;
        ``(3) penalize or otherwise reduce or limit the reimbursement 
    of an attending provider because such provider provided care to an 
    individual participant or beneficiary in accordance with this 
    section;
        ``(4) provide incentives (monetary or otherwise) to an 
    attending provider to induce such provider to provide care to an 
    individual participant or beneficiary in a manner inconsistent with 
    this section; or
        ``(5) subject to subsection (c)(3), restrict benefits for any 
    portion of a period within a hospital length of stay required under 
    subsection (a) in a manner which is less favorable than the 
    benefits provided for any preceding portion of such stay.
    ``(c) Rules of Construction.--
        ``(1) Nothing in this section shall be construed to require a 
    mother who is a participant or beneficiary--
            ``(A) to give birth in a hospital; or
            ``(B) to stay in the hospital for a fixed period of time 
        following the birth of her child.
        ``(2) This section shall not apply with respect to any group 
    health plan, or any group health insurance coverage offered by a 
    health insurance issuer, which does not provide benefits for 
    hospital lengths of stay in connection with childbirth for a mother 
    or her newborn child.
        ``(3) Nothing in this section shall be construed as preventing 
    a group health plan or issuer from imposing deductibles, 
    coinsurance, or other cost-sharing in relation to benefits for 
    hospital lengths of stay in connection with childbirth for a mother 
    or newborn child under the plan (or under health insurance coverage 
    offered in connection with a group health plan), except that such 
    coinsurance or other cost-sharing for any portion of a period 
    within a hospital length of stay required under subsection (a) may 
    not be greater than such coinsurance or cost-sharing for any 
    preceding portion of such stay.
    ``(d) Notice Under Group Health Plan.--The imposition of the 
requirements of this section shall be treated as a material 
modification in the terms of the plan described in section 102(a)(1), 
for purposes of assuring notice of such requirements under the plan; 
except that the summary description required to be provided under the 
last sentence of section 104(b)(1) with respect to such modification 
shall be provided by not later than 60 days after the first day of the 
first plan year in which such requirements apply.
    ``(e) Level and Type of Reimbursements.--Nothing in this section 
shall be construed to prevent a group health plan or a health insurance 
issuer offering group health insurance coverage from negotiating the 
level and type of reimbursement with a provider for care provided in 
accordance with this section.
    ``(f) Preemption; Exception for Health Insurance Coverage in 
Certain States.--
        ``(1) In general.--The requirements of this section shall not 
    apply with respect to health insurance coverage if there is a State 
    law (as defined in section 731(d)(1)) for a State that regulates 
    such coverage that is described in any of the following 
    subparagraphs:
            ``(A) Such State law requires such coverage to provide for 
        at least a 48-hour hospital length of stay following a normal 
        vaginal delivery and at least a 96-hour hospital length of stay 
        following a cesarean section.
            ``(B) Such State law requires such coverage to provide for 
        maternity and pediatric care in accordance with guidelines 
        established by the American College of Obstetricians and 
        Gynecologists, the American Academy of Pediatrics, or other 
        established professional medical associations.
            ``(C) Such State law requires, in connection with such 
        coverage for maternity care, that the hospital length of stay 
        for such care is left to the decision of (or required to be 
        made by) the attending provider in consultation with the 
        mother.
        ``(2) Construction.--Section 731(a)(1) shall not be construed 
    as superseding a State law described in paragraph (1).''.
    (b) Conforming Amendments.--
        (1) Section 731(c) of such Act (as added by section 101 of the 
    Health Insurance Portability and Accountability Act of 1996 and 
    redesignated by the preceding provisions of this section) is 
    amended by striking ``Nothing'' and inserting ``Except as provided 
    in section 711, nothing''.
        (2) Section 732(a) of such Act (as added by section 101 of the 
    Health Insurance Portability and Accountability Act of 1996 and 
    redesignated by the preceding provisions of this section) is 
    amended by inserting ``(other than section 711)'' after ``part''.
        (3) Title I of such Act (as amended by section 101 of the 
    Health Insurance Portability and Accountability Act of 1996 and the 
    preceding provisions of this section) is further amended--
            (A) in the last sentence of section 4(b), by striking 
        ``section 706(b)(2)'', ``section 706(b)(1)'', and ``section 
        706(a)(1)'' and inserting ``section 733(b)(2)'', ``section 
        733(b)(1)'', and ``section 733(a)(1)'', respectively;
            (B) in section 101(g), by striking ``section 706(a)(2)'' 
        and inserting ``section 733(a)(2)'';
            (C) in section 102(b), by striking ``section 706(a)(1)'' 
        each place it appears and inserting ``section 733(a)(1), and by 
        striking ``section 706(b)(2)'' and inserting ``section 
        733(b)(2)'';
            (D) in section 104(b)(1), by striking ``section 706(a)(1)'' 
        each place it appears and inserting ``section 733(a)(1)'';
            (E) in section 502(b)(3), by striking ``section 706(a)(1)'' 
        and inserting ``section 733(a)(1)'';
            (F) in section 506(c), by striking ``section 706(a)(2)'' 
        and inserting ``section 733(a)(2)'';
            (G) in section 514(b)(9), by striking ``section 704'' and 
        inserting ``section 731'';
            (H) in the last sentence of section 701(c)(1), by striking 
        ``section 706(c)'' and inserting ``section 733(c)'';
            (I) in section 732(b), by striking ``section 706(c)(1)'' 
        and inserting ``section 733(c)(1)'';
            (J) in section 732(c)(1), by striking ``section 706(c)(2)'' 
        and inserting ``section 733(c)(2)'';
            (K) in section 732(c)(2), by striking ``section 706(c)(3)'' 
        and inserting ``section 733(c)(3)''; and
            (L) in section 732(c)(3), by striking ``section 706(c)(4)'' 
        and inserting ``section 733(c)(4)''.
        (4) The table of contents in section 1 of such Act is amended 
    by striking the items relating to part 7 and inserting the 
    following:

                ``Part 7--Group Health Plan Requirements

     ``Subpart A--Requirements Relating to Portability, Access, and 
                              Renewability

``Sec. 701. Increased portability through limitation on preexisting 
          condition exclusions.
``Sec. 702. Prohibiting discrimination against individual participants 
          and beneficiaries based on health status.
``Sec. 703. Guaranteed renewability in multiemployer plans and multiple 
          employer welfare arrangements.

                     ``Subpart B--Other Requirements

``Sec. 711. Standards relating to benefits for mothers and newborns.

                     ``Subpart C--General Provisions

``Sec. 731. Preemption; State flexibility; construction.
``Sec. 732. Special rules relating to group health plans.
``Sec. 733. Definitions.
``Sec. 734. Regulations.''.

    (c) Effective Date.--The amendments made by this section shall 
apply with respect to group health plans for plan years beginning on or 
after January 1, 1998.
    Sec. 604. Amendments to the Public Health Service Act Relating to 
the Group Market.--(a) In General.--Title XXVII of the Public Health 
Service Act (as added by section 102 of the Health Insurance 
Portability and Accountability Act of 1996) is amended--
        (1) by amending the title heading to read as follows:

  ``TITLE XXVII--REQUIREMENTS RELATING TO HEALTH INSURANCE COVERAGE'';

        (2) by redesignating subparts 2 and 3 of part A as subparts 3 
    and 4 of such part;
        (3) by inserting after subpart 1 of part A the following new 
    subpart:

                    ``Subpart 2--Other Requirements

``SEC. 2704. STANDARDS RELATING TO BENEFITS FOR MOTHERS AND NEWBORNS.

    ``(a) Requirements for Minimum Hospital Stay Following Birth.--
        ``(1) In general.--A group health plan, and a health insurance 
    issuer offering group health insurance coverage, may not--
            ``(A) except as provided in paragraph (2)--
                ``(i) restrict benefits for any hospital length of stay 
            in connection with childbirth for the mother or newborn 
            child, following a normal vaginal delivery, to less than 48 
            hours, or
                ``(ii) restrict benefits for any hospital length of 
            stay in connection with childbirth for the mother or 
            newborn child, following a cesarean section, to less than 
            96 hours, or
            ``(B) require that a provider obtain authorization from the 
        plan or the issuer for prescribing any length of stay required 
        under subparagraph (A) (without regard to paragraph (2)).
        ``(2) Exception.--Paragraph (1)(A) shall not apply in 
    connection with any group health plan or health insurance issuer in 
    any case in which the decision to discharge the mother or her 
    newborn child prior to the expiration of the minimum length of stay 
    otherwise required under paragraph (1)(A) is made by an attending 
    provider in consultation with the mother.
    ``(b) Prohibitions.--A group health plan, and a health insurance 
issuer offering group health insurance coverage in connection with a 
group health plan, may not--
        ``(1) deny to the mother or her newborn child eligibility, or 
    continued eligibility, to enroll or to renew coverage under the 
    terms of the plan, solely for the purpose of avoiding the 
    requirements of this section;
        ``(2) provide monetary payments or rebates to mothers to 
    encourage such mothers to accept less than the minimum protections 
    available under this section;
        ``(3) penalize or otherwise reduce or limit the reimbursement 
    of an attending provider because such provider provided care to an 
    individual participant or beneficiary in accordance with this 
    section;
        ``(4) provide incentives (monetary or otherwise) to an 
    attending provider to induce such provider to provide care to an 
    individual participant or beneficiary in a manner inconsistent with 
    this section; or
        ``(5) subject to subsection (c)(3), restrict benefits for any 
    portion of a period within a hospital length of stay required under 
    subsection (a) in a manner which is less favorable than the 
    benefits provided for any preceding portion of such stay.
    ``(c) Rules of Construction.--
        ``(1) Nothing in this section shall be construed to require a 
    mother who is a participant or beneficiary--
            ``(A) to give birth in a hospital; or
            ``(B) to stay in the hospital for a fixed period of time 
        following the birth of her child.
        ``(2) This section shall not apply with respect to any group 
    health plan, or any group health insurance coverage offered by a 
    health insurance issuer, which does not provide benefits for 
    hospital lengths of stay in connection with childbirth for a mother 
    or her newborn child.
        ``(3) Nothing in this section shall be construed as preventing 
    a group health plan or issuer from imposing deductibles, 
    coinsurance, or other cost-sharing in relation to benefits for 
    hospital lengths of stay in connection with childbirth for a mother 
    or newborn child under the plan (or under health insurance coverage 
    offered in connection with a group health plan), except that such 
    coinsurance or other cost-sharing for any portion of a period 
    within a hospital length of stay required under subsection (a) may 
    not be greater than such coinsurance or cost-sharing for any 
    preceding portion of such stay.
    ``(d) Notice.--A group health plan under this part shall comply 
with the notice requirement under section 711(d) of the Employee 
Retirement Income Security Act of 1974 with respect to the requirements 
of this section as if such section applied to such plan.
    ``(e) Level and Type of Reimbursements.--Nothing in this section 
shall be construed to prevent a group health plan or a health insurance 
issuer offering group health insurance coverage from negotiating the 
level and type of reimbursement with a provider for care provided in 
accordance with this section.
    ``(f) Preemption; Exception for Health Insurance Coverage in 
Certain States.--
        ``(1) In general.--The requirements of this section shall not 
    apply with respect to health insurance coverage if there is a State 
    law (as defined in section 2723(d)(1)) for a State that regulates 
    such coverage that is described in any of the following 
    subparagraphs:
            ``(A) Such State law requires such coverage to provide for 
        at least a 48-hour hospital length of stay following a normal 
        vaginal delivery and at least a 96-hour hospital length of stay 
        following a cesarean section.
            ``(B) Such State law requires such coverage to provide for 
        maternity and pediatric care in accordance with guidelines 
        established by the American College of Obstetricians and 
        Gynecologists, the American Academy of Pediatrics, or other 
        established professional medical associations.
            ``(C) Such State law requires, in connection with such 
        coverage for maternity care, that the hospital length of stay 
        for such care is left to the decision of (or required to be 
        made by) the attending provider in consultation with the 
        mother.
        ``(2) Construction.--Section 2723(a)(1) shall not be construed 
    as superseding a State law described in paragraph (1).''.
    (b) Conforming Amendments.--
        (1) Section 2721 of such Act (as added by section 102 of the 
    Health Insurance Portability and Accountability Act of 1996) is 
    amended--
            (A) in subsection (a), by striking ``subparts 1 and 2'' and 
        inserting ``subparts 1 and 3'', and
            (B) in subsections (b) through (d), by striking ``subparts 
        1 and 2'' each place it appears and inserting ``subparts 1 
        through 3''.
        (2) Section 2723(c) of such Act (as added by section 102 of the 
    Health Insurance Portability and Accountability Act of 1996) is 
    amended by inserting ``(other than section 2704)'' after ``part''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to group health plans for plan years beginning on or 
after January 1, 1998.
    Sec. 605. Amendments to the Public Health Service Act Relating to 
the Individual Market.--(a) In General.--Part B of title XXVII of the 
Public Health Service Act (as added by section 111 of the Health 
Insurance Portability and Accountability Act of 1996) is amended--
        (1) by inserting after the part heading the following:

   ``Subpart 1--Portability, Access, and Renewability Requirements'';

        (2) by redesignating sections 2745, 2746, and 2747 as sections 
    2761, 2762, and 2763, respectively;
        (3) by inserting before section 2761 (as so redesignated) the 
    following:

                 ``Subpart 3--General Provisions''; and

        (4) by inserting after section 2744 the following:

                    ``Subpart 3--Other Requirements

``SEC. 2751. STANDARDS RELATING TO BENEFITS FOR MOTHERS AND NEWBORNS.

    ``(a) In General.--The provisions of section 2704 (other than 
subsections (d) and (f)) shall apply to health insurance coverage 
offered by a health insurance issuer in the individual market in the 
same manner as it applies to health insurance coverage offered by a 
health insurance issuer in connection with a group health plan in the 
small or large group market.
    ``(b) Notice Requirement.--A health insurance issuer under this 
part shall comply with the notice requirement under section 711(d) of 
the Employee Retirement Income Security Act of 1974 with respect to the 
requirements referred to in subsection (a) as if such section applied 
to such issuer and such issuer were a group health plan.
    ``(c) Preemption; Exception for Health Insurance Coverage in 
Certain States.--
        ``(1) In general.--The requirements of this section shall not 
    apply with respect to health insurance coverage if there is a State 
    law (as defined in section 2723(d)(1)) for a State that regulates 
    such coverage that is described in any of the following 
    subparagraphs:
            ``(A) Such State law requires such coverage to provide for 
        at least a 48-hour hospital length of stay following a normal 
        vaginal delivery and at least a 96-hour hospital length of stay 
        following a cesarean section.
            ``(B) Such State law requires such coverage to provide for 
        maternity and pediatric care in accordance with guidelines 
        established by the American College of Obstetricians and 
        Gynecologists, the American Academy of Pediatrics, or other 
        established professional medical associations.
            ``(C) Such State law requires, in connection with such 
        coverage for maternity care, that the hospital length of stay 
        for such care is left to the decision of (or required to be 
        made by) the attending provider in consultation with the 
        mother.
        ``(2) Construction.--Section 2762(a) shall not be construed as 
    superseding a State law described in paragraph (1).''.
    (b) Conforming Amendments.--Such part (as so added) is further 
amended as follows:
        (1) In section 2744(a)(1), strike ``2746(b)'' and insert 
    ``2762(b)''.
        (2) In section 2745(a)(1) (before redesignation under 
    subsection (a)(1)), strike ``2746'' and insert ``2762''.
        (3) In section 2746(b) (before redesignation under subsection 
    (a)(1))--
            (A) by inserting ``(1)'' after the dash, and
            (B) by adding at the end the following:
    ``(2) Nothing in this part (other than section 2751) shall be 
construed as requiring health insurance coverage offered in the 
individual market to provide specific benefits under the terms of such 
coverage.''.
    (c) Effective Date.--The amendments made by this section shall 
apply with respect to health insurance coverage offered, sold, issued, 
renewed, in effect, or operated in the individual market on or after 
January 1, 1998.
    Sec. 606. Reports to Congress Concerning Childbirth.--(a) 
Findings.--Congress finds that--
        (1) childbirth is one part of a continuum of experience that 
    includes prepregnancy, pregnancy and prenatal care, labor and 
    delivery, the immediate postpartum period, and a longer period of 
    adjustment for the newborn, the mother, and the family;
        (2) health care practices across this continuum are changing in 
    response to health care financing and delivery system changes, 
    science and clinical research, and patient preferences; and
        (3) there is a need--
            (A) to examine the issues and consequences associated with 
        the length of hospital stays following childbirth;
            (B) to examine the follow-up practices for mothers and 
        newborns used in conjunction with shorter hospital stays;
            (C) to identify appropriate health care practices and 
        procedures with regard to the hospital discharge of newborns 
        and mothers;
            (D) to examine the extent to which such care is affected by 
        family and environmental factors; and
            (E) to examine the content of care during hospital stays 
        following childbirth.
    (b) Advisory Panel.--
        (1) In general.--Not later than 90 days after the date of 
    enactment of this Act, the Secretary of Health and Human Services 
    (in this section referred to as the ``Secretary'') shall establish 
    an advisory panel (referred to in this section as the ``advisory 
    panel'')--
            (A) to guide and review methods, procedures, and data 
        collection necessary to conduct the study described in 
        subsection (c) in a manner that is intended to enhance the 
        quality, safety, and effectiveness of health care services 
        provided to mothers and newborns;
            (B) to develop a consensus among the members of the 
        advisory panel regarding the appropriateness of the specific 
        requirements of this title; and
            (C) to prepare and submit to the Secretary, as part of the 
        report of the Secretary submitted under subsection (d), a 
        report summarizing the consensus (if any) developed under 
        subparagraph (B) or the reasons for not reaching such a 
        consensus.
        (2) Participation.--
            (A) Department representatives.--The Secretary shall ensure 
        that representatives from within the Department of Health and 
        Human Services that have expertise in the area of maternal and 
        child health or in outcomes research are appointed to the 
        advisory panel.
            (B) Representatives of public and private sector 
        entities.--
                (i) In general.--The Secretary shall ensure that 
            members of the advisory panel include representatives of 
            public and private sector entities having knowledge or 
            experience in one or more of the following areas:

                    (I) Patient care.
                    (II) Patient education.
                    (III) Quality assurance.
                    (IV) Outcomes research.
                    (V) Consumer issues.

                (ii) Requirement.--The panel shall include 
            representatives of each of the following categories:

                    (I) Health care practitioners.
                    (II) Health plans.
                    (III) Hospitals.
                    (IV) Employers.
                    (V) States.
                    (VI) Consumers.

    (c) Studies.--
        (1) In general.--The Secretary shall conduct a study of--
            (A) the factors affecting the continuum of care with 
        respect to maternal and child health care, including outcomes 
        following childbirth;
            (B) the factors determining the length of hospital stay 
        following childbirth;
            (C) the diversity of negative or positive outcomes 
        affecting mothers, infants, and families;
            (D) the manner in which post natal care has changed over 
        time and the manner in which that care has adapted or related 
        to changes in the length of hospital stay, taking into 
        account--
                (i) the types of post natal care available and the 
            extent to which such care is accessed; and
                (ii) the challenges associated with providing post 
            natal care to all populations, including vulnerable 
            populations, and solutions for overcoming these challenges; 
            and
            (E) the financial incentives that may--
                (i) impact the health of newborns and mothers; and
                (ii) influence the clinical decisionmaking of health 
            care providers.
        (2) Resources.--The Secretary shall provide to the advisory 
    panel the resources necessary to carry out the duties of the 
    advisory panel.
    (d) Reports.--
        (1) In general.--The Secretary shall prepare and submit to the 
    Committee on Labor and Human Resources of the Senate and the 
    Committee on Commerce of the House of Representatives a report that 
    contains--
            (A) a summary of the study conducted under sub- section 
        (c);
            (B) a summary of the best practices used in the public and 
        private sectors for the care of newborns and mothers;
            (C) recommendations for improvements in prenatal care, post 
        natal care, delivery and follow-up care, and whether the 
        implementation of such improvements should be accomplished by 
        the private health care sector, Federal or State governments, 
        or any combination thereof; and
            (D) limitations on the databases in existence on the date 
        of the enactment of this Act.
        (2) Deadlines.--The Secretary shall prepare and submit to the 
    Committees referred to in paragraph (1)--
            (A) an initial report concerning the study conducted under 
        subsection (c) and elements described in paragraph (1), not 
        later than 18 months after the date of the enactment of this 
        Act;
            (B) an interim report concerning such study and elements 
        not later than 3 years after the date of the enactment of this 
        Act; and
            (C) a final report concerning such study and elements not 
        later than 5 years after the date of the enactment of this Act.
    (e) Termination of Panel.--The advisory panel shall terminate on 
the date that occurs 60 days after the date on which the last report is 
submitted under subsection (d).

TITLE VII--PARITY IN THE APPLICATION OF CERTAIN LIMITS TO MENTAL HEALTH 
                                BENEFITS

    Sec. 701. Short Title.--This title may be cited as the ``Mental 
Health Parity Act of 1996''.
    Sec. 702. Amendments to the Employee Retirement Income Security Act 
of 1974.--(a) In General.--Subpart B of part 7 of subtitle B of title I 
of the Employee Retirement Income Security Act of 1974 (as added by 
section 603(a)) is amended by adding at the end the following new 
section:

``SEC. 712. PARITY IN THE APPLICATION OF CERTAIN LIMITS TO MENTAL 
              HEALTH BENEFITS.

    ``(a) In General.--
        ``(1) Aggregate lifetime limits.--In the case of a group health 
    plan (or health insurance coverage offered in connection with such 
    a plan) that provides both medical and surgical benefits and mental 
    health benefits--
            ``(A) No lifetime limit.--If the plan or coverage does not 
        include an aggregate lifetime limit on substantially all 
        medical and surgical benefits, the plan or coverage may not 
        impose any aggregate lifetime limit on mental health benefits.
            ``(B) Lifetime limit.--If the plan or coverage includes an 
        aggregate lifetime limit on substantially all medical and 
        surgical benefits (in this paragraph referred to as the 
        `applicable lifetime limit'), the plan or coverage shall 
        either--
                ``(i) apply the applicable lifetime limit both to the 
            medical and surgical benefits to which it otherwise would 
            apply and to mental health benefits and not distinguish in 
            the application of such limit between such medical and 
            surgical benefits and mental health benefits; or
                ``(ii) not include any aggregate lifetime limit on 
            mental health benefits that is less than the applicable 
            lifetime limit.
            ``(C) Rule in case of different limits.--In the case of a 
        plan or coverage that is not described in subparagraph (A) or 
        (B) and that includes no or different aggregate lifetime limits 
        on different categories of medical and surgical benefits, the 
        Secretary shall establish rules under which subparagraph (B) is 
        applied to such plan or coverage with respect to mental health 
        benefits by substituting for the applicable lifetime limit an 
        average aggregate lifetime limit that is computed taking into 
        account the weighted average of the aggregate lifetime limits 
        applicable to such categories.
        ``(2) Annual limits.--In the case of a group health plan (or 
    health insurance coverage offered in connection with such a plan) 
    that provides both medical and surgical benefits and mental health 
    benefits--
            ``(A) No annual limit.--If the plan or coverage does not 
        include an annual limit on substantially all medical and 
        surgical benefits, the plan or coverage may not impose any 
        annual limit on mental health benefits.
            ``(B) Annual limit.--If the plan or coverage includes an 
        annual limit on substantially all medical and surgical benefits 
        (in this paragraph referred to as the `applicable annual 
        limit'), the plan or coverage shall either--
                ``(i) apply the applicable annual limit both to medical 
            and surgical benefits to which it otherwise would apply and 
            to mental health benefits and not distinguish in the 
            application of such limit between such medical and surgical 
            benefits and mental health benefits; or
                ``(ii) not include any annual limit on mental health 
            benefits that is less than the applicable annual limit.
            ``(C) Rule in case of different limits.--In the case of a 
        plan or coverage that is not described in subparagraph (A) or 
        (B) and that includes no or different annual limits on 
        different categories of medical and surgical benefits, the 
        Secretary shall establish rules under which subparagraph (B) is 
        applied to such plan or coverage with respect to mental health 
        benefits by substituting for the applicable annual limit an 
        average annual limit that is computed taking into account the 
        weighted average of the annual limits applicable to such 
        categories.
    ``(b) Construction.--Nothing in this section shall be construed--
        ``(1) as requiring a group health plan (or health insurance 
    coverage offered in connection with such a plan) to provide any 
    mental health benefits; or
        ``(2) in the case of a group health plan (or health insurance 
    coverage offered in connection with such a plan) that provides 
    mental health benefits, as affecting the terms and conditions 
    (including cost sharing, limits on numbers of visits or days of 
    coverage, and requirements relating to medical necessity) relating 
    to the amount, duration, or scope of mental health benefits under 
    the plan or coverage, except as specifically provided in subsection 
    (a) (in regard to parity in the imposition of aggregate lifetime 
    limits and annual limits for mental health benefits).
    ``(c) Exemptions.--
        ``(1) Small employer exemption.--
            ``(A) In general.--This section shall not apply to any 
        group health plan (and group health insurance coverage offered 
        in connection with a group health plan) for any plan year of a 
        small employer.
            ``(B) Small employer.--For purposes of subparagraph (A), 
        the term `small employer' means, in connection with a group 
        health plan with respect to a calendar year and a plan year, an 
        employer who employed an average of at least 2 but not more 
        than 50 employees on business days during the preceding 
        calendar year and who employs at least 2 employees on the first 
        day of the plan year.
            ``(C) Application of certain rules in determination of 
        employer size.--For purposes of this paragraph--
                ``(i) Application of aggregation rule for employers.--
            Rules similar to the rules under subsections (b), (c), (m), 
            and (o) of section 414 of the Internal Revenue Code of 1986 
            shall apply for purposes of treating persons as a single 
            employer.
                ``(ii) Employers not in existence in preceding year.--
            In the case of an employer which was not in existence 
            throughout the preceding calendar year, the determination 
            of whether such employer is a small employer shall be based 
            on the average number of employees that it is reasonably 
            expected such employer will employ on business days in the 
            current calendar year.
                ``(iii) Predecessors.--Any reference in this paragraph 
            to an employer shall include a reference to any predecessor 
            of such employer.
        ``(2) Increased cost exemption.--This section shall not apply 
    with respect to a group health plan (or health insurance coverage 
    offered in connection with a group health plan) if the application 
    of this section to such plan (or to such coverage) results in an 
    increase in the cost under the plan (or for such coverage) of at 
    least 1 percent.
    ``(d) Separate Application to Each Option Offered.--In the case of 
a group health plan that offers a participant or beneficiary two or 
more benefit package options under the plan, the requirements of this 
section shall be applied separately with respect to each such option.
    ``(e) Definitions.--For purposes of this section--
        ``(1) Aggregate lifetime limit.--The term `aggregate lifetime 
    limit' means, with respect to benefits under a group health plan or 
    health insurance coverage, a dollar limitation on the total amount 
    that may be paid with respect to such benefits under the plan or 
    health insurance coverage with respect to an individual or other 
    coverage unit.
        ``(2) Annual limit.--The term `annual limit' means, with 
    respect to benefits under a group health plan or health insurance 
    coverage, a dollar limitation on the total amount of benefits that 
    may be paid with respect to such benefits in a 12-month period 
    under the plan or health insurance coverage with respect to an 
    individual or other coverage unit.
        ``(3) Medical or surgical benefits.--The term `medical or 
    surgical benefits' means benefits with respect to medical or 
    surgical services, as defined under the terms of the plan or 
    coverage (as the case may be), but does not include mental health 
    benefits.
        ``(4) Mental health benefits.--The term `mental health 
    benefits' means benefits with respect to mental health services, as 
    defined under the terms of the plan or coverage (as the case may 
    be), but does not include benefits with respect to treatment of 
    substance abuse or chemical dependency.
    ``(f) Sunset.--This section shall not apply to benefits for 
services furnished on or after September 30, 2001.''.
    (b) Clerical Amendment.--The table of contents in section 1 of such 
Act, as amended by section 603 of this Act, is amended by inserting 
after the item relating to section 711 the following new item:
``Sec. 712. Parity in the application of certain limits to mental health 
          benefits.''.

    (c) Effective Date.--The amendments made by this section shall 
apply with respect to group health plans for plan years beginning on or 
after January 1, 1998.
    Sec. 703. Amendments to the Public Health Service Act Relating to 
the Group Market.--(a) In General.--Subpart 2 of part A of title XXVII 
of the Public Health Service Act (as added by section 604(a)) is 
amended by adding at the end the following new section:

``SEC. 2705. PARITY IN THE APPLICATION OF CERTAIN LIMITS TO MENTAL 
              HEALTH BENEFITS.

    ``(a) In General.--
        ``(1) Aggregate lifetime limits.--In the case of a group health 
    plan (or health insurance coverage offered in connection with such 
    a plan) that provides both medical and surgical benefits and mental 
    health benefits--
            ``(A) No lifetime limit.--If the plan or coverage does not 
        include an aggregate lifetime limit on substantially all 
        medical and surgical benefits, the plan or coverage may not 
        impose any aggregate lifetime limit on mental health benefits.
            ``(B) Lifetime limit.--If the plan or coverage includes an 
        aggregate lifetime limit on substantially all medical and 
        surgical benefits (in this paragraph referred to as the 
        `applicable lifetime limit'), the plan or coverage shall 
        either--
                ``(i) apply the applicable lifetime limit both to the 
            medical and surgical benefits to which it otherwise would 
            apply and to mental health benefits and not distinguish in 
            the application of such limit between such medical and 
            surgical benefits and mental health benefits; or
                ``(ii) not include any aggregate lifetime limit on 
            mental health benefits that is less than the applicable 
            lifetime limit.
            ``(C) Rule in case of different limits.--In the case of a 
        plan or coverage that is not described in subparagraph (A) or 
        (B) and that includes no or different aggregate lifetime limits 
        on different categories of medical and surgical benefits, the 
        Secretary shall establish rules under which subparagraph (B) is 
        applied to such plan or coverage with respect to mental health 
        benefits by substituting for the applicable lifetime limit an 
        average aggregate lifetime limit that is computed taking into 
        account the weighted average of the aggregate lifetime limits 
        applicable to such categories.
        ``(2) Annual limits.--In the case of a group health plan (or 
    health insurance coverage offered in connection with such a plan) 
    that provides both medical and surgical benefits and mental health 
    benefits--
            ``(A) No annual limit.--If the plan or coverage does not 
        include an annual limit on substantially all medical and 
        surgical benefits, the plan or coverage may not impose any 
        annual limit on mental health benefits.
            ``(B) Annual limit.--If the plan or coverage includes an 
        annual limit on substantially all medical and surgical benefits 
        (in this paragraph referred to as the `applicable annual 
        limit'), the plan or coverage shall either--
                ``(i) apply the applicable annual limit both to medical 
            and surgical benefits to which it otherwise would apply and 
            to mental health benefits and not distinguish in the 
            application of such limit between such medical and surgical 
            benefits and mental health benefits; or
                ``(ii) not include any annual limit on mental health 
            benefits that is less than the applicable annual limit.
            ``(C) Rule in case of different limits.--In the case of a 
        plan or coverage that is not described in subparagraph (A) or 
        (B) and that includes no or different annual limits on 
        different categories of medical and surgical benefits, the 
        Secretary shall establish rules under which subparagraph (B) is 
        applied to such plan or coverage with respect to mental health 
        benefits by substituting for the applicable annual limit an 
        average annual limit that is computed taking into account the 
        weighted average of the annual limits applicable to such 
        categories.
    ``(b) Construction.--Nothing in this section shall be construed--
        ``(1) as requiring a group health plan (or health insurance 
    coverage offered in connection with such a plan) to provide any 
    mental health benefits; or
        ``(2) in the case of a group health plan (or health insurance 
    coverage offered in connection with such a plan) that provides 
    mental health benefits, as affecting the terms and conditions 
    (including cost sharing, limits on numbers of visits or days of 
    coverage, and requirements relating to medical necessity) relating 
    to the amount, duration, or scope of mental health benefits under 
    the plan or coverage, except as specifically provided in subsection 
    (a) (in regard to parity in the imposition of aggregate lifetime 
    limits and annual limits for mental health benefits).
    ``(c) Exemptions.--
        ``(1) Small employer exemption.--This section shall not apply 
    to any group health plan (and group health insurance coverage 
    offered in connection with a group health plan) for any plan year 
    of a small employer.
        ``(2) Increased cost exemption.--This section shall not apply 
    with respect to a group health plan (or health insurance coverage 
    offered in connection with a group health plan) if the application 
    of this section to such plan (or to such coverage) results in an 
    increase in the cost under the plan (or for such coverage) of at 
    least 1 percent.
    ``(d) Separate Application to Each Option Offered.--In the case of 
a group health plan that offers a participant or beneficiary two or 
more benefit package options under the plan, the requirements of this 
section shall be applied separately with respect to each such option.
    ``(e) Definitions.--For purposes of this section--
        ``(1) Aggregate lifetime limit.--The term `aggregate lifetime 
    limit' means, with respect to benefits under a group health plan or 
    health insurance coverage, a dollar limitation on the total amount 
    that may be paid with respect to such benefits under the plan or 
    health insurance coverage with respect to an individual or other 
    coverage unit.
        ``(2) Annual limit.--The term `annual limit' means, with 
    respect to benefits under a group health plan or health insurance 
    coverage, a dollar limitation on the total amount of benefits that 
    may be paid with respect to such benefits in a 12-month period 
    under the plan or health insurance coverage with respect to an 
    individual or other coverage unit.
        ``(3) Medical or surgical benefits.--The term `medical or 
    surgical benefits' means benefits with respect to medical or 
    surgical services, as defined under the terms of the plan or 
    coverage (as the case may be), but does not include mental health 
    benefits.
        ``(4) Mental health benefits.--The term `mental health 
    benefits' means benefits with respect to mental health services, as 
    defined under the terms of the plan or coverage (as the case may 
    be), but does not include benefits with respect to treatment of 
    substance abuse or chemical dependency.
    ``(f) Sunset.--This section shall not apply to benefits for 
services furnished on or after September 30, 2001.''.
    (b) Effective Date.--The amendments made by this section shall 
apply with respect to group health plans for plan years beginning on or 
after January 1, 1998.
    This Act may be cited as the ``Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 1997''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
```