```

[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3666 Engrossed Amendment Senate (EAS)]

  
  
  
  
  
  
  
  
  
  

                  In the Senate of the United States,

                                                     September 5, 1996.
      Resolved, That the bill from the House of Representatives (H.R. 
3666) entitled ``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.'', do pass with the following

                              AMENDMENTS:

(1)Page 3, line 3, strike out [$18,497,854,000] and insert: 
$18,671,259,000

(2)Page 3, line 22, strike out [$1,227,000,000] and insert: 
$1,377,000,000

(3)Page 6, line 22, strike out [$1,964,000] and insert: $2,822,000

(4)Page 8, line 12, strike out [$570,000,000] and insert: $596,000,000

(5)Page 8, line 21, strike out [$257,000,000] and insert: $262,000,000

(6)Page 9, line 9, strike out [$59,207,000] and insert: $62,207,000

(7)Page 10, line 10, strike out [$823,584,000] and insert: $813,730,000

(8)Page 10, line 10, strike out [further]

(9)Page 11, line 19, strike out [$245,358,000] and insert: $178,250,000

(10)Page 13, line 8, strike out [$160,000,000] and insert: $190,000,000

(11)Page 13, line 21, strike out [$12,300,000, together with]

(12)Page 18, after line 12 insert:
    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.

(13)Page 18, strike out all after line 16, over to and including line 9 
on page 27

(14)Page 27, after line 9 insert:

            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, 
$969,464,442, to remain available until expended: Provided, That of the 
total amount provided under this head, $595,000,000 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 $174,000,000 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, 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): Provided further, That of the total amount provided 
under this head, the Secretary shall provide $464,442 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 the 
immediately preceding proviso.

                  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 or expiration of use restrictions, or other changes in 
housing assistance arrangements, $4,775,000,000, to remain available 
until expended: Provided, That of the total amount provided under this 
head, $3,800,000,000 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, $800,000,000 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, 
$175,000,000 shall be for assistance under the United States Housing 
Act of 1937 (42 U.S.C. 1437) for nonelderly disabled families 
relocating pursuant to designation of a public housing development 
under section 7 of such Act, for a demonstration linking housing 
assistance to State welfare reform initiatives to help families make 
the transition from welfare to work and for housing assistance for 
relocating 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: Provided, 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. 13611).

                 preserving existing housing investment

    For operating, maintaining, revitalizing, rehabilitating, 
preserving, and protecting existing housing developments for low income 
families, the elderly and the disabled, $6,740,000,000, 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): Provided further, That of the total amount made 
available under this head, $550,000,000 shall be 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, 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 further, That of the 
total amount provided under this head, $500,000,000 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): Provided further, That 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 the Secretary may continue to impose 
a moratorium on the acceptance of initial notices of intent by 
potential recipients of such funding: Provided further, That funding 
shall be limited to: (1) tenant-based assistance under the terms of the 
tenth and eleventh provisos of the second undesignated paragraph under 
the ``Annual Contributions for Assisted Housing'' head of the 
Departments of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Act, 1996; (2) plans of action for 
sales of projects to nonprofit organizations, tenant-sponsored 
organizations and other priority purchasers; (3) projects that are 
subject to a repayment or settlement agreement that was executed 
between the owner and the Secretary prior to September 1, 1995; (4) 
projects for which submissions were delayed as a result of their 
location in areas that were designated as a Federal disaster area in a 
Presidential Disaster Declaration; and (5) projects whose processing 
was, in fact, or in practical effect, suspended, deferred, or 
interrupted for a period of nine months or more because of differing 
interpretations, by the Secretary and an owner concerning the timing of 
the ability of an uninsured section 236 property to prepay or by the 
Secretary and a State or local rent regulatory agency, concerning 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 a 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: Provided further, That 
priority shall be given to funding tenant-based assistance under the 
terms of the tenth and eleventh provisos of the second undesignated 
paragraph under the ``Annual Contributions for Assisted Housing'' head 
of the Departments of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Act, 1996, and 
plans of action for sales of projects to nonprofit organizations, 
tenant-sponsored organizations, and other priority purchasers: Provided 
further, That the Secretary may give priority to funding approved plans 
of action for the following projects: (1) projects that are subject to 
a repayment or settlement agreement that was executed between the owner 
and the Secretary prior to September 1, 1995; (2) projects for which 
submissions were delayed as a result of their location in areas that 
were designated as a Federal disaster area in a Presidential Disaster 
Declaration; and (3) projects whose processing was, in fact, or in 
practical effect, suspended, deferred, or interrupted for a period of 
nine months or more because of differing interpretations, by the 
Secretary and an owner concerning the timing of the ability of an 
uninsured section 236 property to prepay or by the Secretary and a 
State or local rent regulatory agency, concerning 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 a 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: 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 a capital loan may be provided as an 
incentive under LIHPRHA or ELIHPA on such terms and conditions as the 
Secretary may prescribe: Provided further, That the following provisos 
under the second undesignated heading under the ``Annual Contributions 
for Assisted Housing'' head of the Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 1996 shall continue in effect: the fourth proviso, the sixth 
proviso, the seventh proviso, the ninth proviso, the tenth proviso, the 
eleventh proviso, and the twelfth proviso: Provided further, That 
notwithstanding any other provision of law, effective October 1, 1997, 
the Secretary shall suspend further funding of plans of action: 
Provided further, That of the total amount provided under this head 
$290,000,000 shall be 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, of which 
$10,000,000 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), up to 
$5,000,000 of which may 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 up to $5,000,000 of which may be 
provided to the Office of Inspector General for Operation Safe Home: 
Provided further, 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.

(15)Page 28, line 5, strike out all after ``1999,'' down to and 
including ``and'' in line 7

(16)Page 28, line 7, strike out [$61,400,000] and insert: $68,500,000

(17)Page 28, line 11, strike out [$1,000,000] and insert: $1,500,000

(18)Page 29, after line 6 insert:
    Of the amount provided under this heading, the Secretary of Housing 
and Urban Development may use up to $50,000,000 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 shall 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.

(19)Page 29, after line 6 insert:
    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.

(20)Page 29, line 8, strike out [$20,000,000] and insert: $40,000,000

(21)Page 30, line 8, after ``for'' insert: departmental

(22)Page 32, line 19, strike out [$341,595,000] and insert: 
$350,595,000

(23)Page 32, line 22, strike out [$334,483,000] and insert: 
$343,483,000

(24)Page 34, line 16, strike out [$202,470,000, of which $198,299,000] 
and insert: $207,470,000, of which $203,299,000

(25)Page 34, line 17, after ``for'' insert: departmental

(26)Page 35, line 5, strike out [$9,101,000] and insert: $9,383,000

(27)Page 35, line 7, strike out [$9,101,000] and insert: $9,383,000

(28)Page 35, line 8, after ``for'' insert: departmental

(29)Page 36, line 13, strike out all after ``penses,'' down to and 
including ``$42,00,000)'' in line 14 and insert: $976,840,000

(30)Page 36, line 14, strike out [$532,782,000] and insert: 
$546,782,000

(31)Page 36, line 16, strike out [$9,101,000] and insert: $9,383,000

(32)Page 37, line 1, strike out [provided] and insert: transferred

(33)Page 37, line 8, strike out [$14,895,000] and insert: $15,751,000

(34)Page 37, strike out all after line 14, over to and including line 
11 on page 38 and insert:
    Sec. 201. Extenders.--(a) Public Housing Funding Flexibility.--
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) Section 402(a) of the Balanced Budget Downpayment 
Act, I is amended by inserting after ``1995'' the following: ``, and 
effective for fiscal year 1997''.
    (2) Section 402(f) of such Act is amended by striking ``fiscal year 
1996'' and inserting ``fiscal years 1996 and 1997''.
    (3) The second sentence of section 230 of the Departments of 
Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1996 is amended by inserting before the 
period the following: ``during the entire time the family receives 
assistance under the United States Housing Act of 1937''.
    (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''.

(35)Page 41, after line 8 insert:
    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.

(36)Page 41, after line 8 insert:
    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.

(37)Page 41, after line 8 insert:
    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.

(38)Page 41, after line 8 insert:
    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.

(39)Page 41, after line 8 insert:
    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.

(40)Page 41, after line 8 insert:
    Sec. 210. 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.

(41)Page 41, after line 8 insert:

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 1 year, at rent levels that are equal to those under the 
        expiring contract as of the date on which the contract expires, 
        only if those rent levels do not exceed 120 percent of fair 
        market rent for the market area in which the project is 
        located.
            (2) Exemption for state and local housing agency 
        projects.--Notwithstanding paragraph (1), upon the expiration 
        of an expiring 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, upon the request of the public agency, renew 
        the expiring contract--
                    (A) for a period of not more than 1 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) Ineligible contracts.--
                    (A) Participation in demonstration.--For contracts 
                covering a multifamily housing project that expire 
                during fiscal year 1997 with rent levels that exceed 
                the percentage described in paragraph (1), the 
                Secretary shall, at the request of the owner of the 
                project, include that multifamily housing project in 
                the demonstration program under section 212 of this 
                Act. The Secretary shall ensure, to the maximum extent 
                practicable, that a project in the demonstration is 
                maintained as affordable for low-income families for 
                the maximum feasible period of time.
                    (B) Effect of material adverse actions or 
                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.
            (4) Tenant protections.--To the extent provided in advance 
        in an appropriations Act, 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 ``affordable'' means, with respect to 
                a dwelling unit, a unit for which the rents are 
                restricted to the rent levels established under a 
                mortgage restructuring;
                    (B) the term ``demonstration program'' means the 
                program established under subsection (b);
                    (C) the term ``designee'' means a third-party 
                public agency that enters into an arrangement with the 
                Secretary under subsection (b)(3);
                    (D) 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;
                    (E) the term ``family'' has the same meaning as in 
                section 3(b) of the United States Housing Act of 1937;
                    (F) 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;
                    (G) the term ``owner'' has the same meaning as in 
                section 8(f) of the United States Housing Act of 1937;
                    (H) 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;
                    (I) the term ``Secretary'' means the Secretary of 
                Housing and Urban Development; and
                    (J) 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.--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 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 subsidies;
                    (B) utilizing project-based assistance, while 
                taking into account the capital needs of the projects 
                and the need for assistance to low- and very low-income 
                families in such projects; and
                    (C) preserving low-income rental housing 
                affordability and availability while reducing the long-
                term cost of project-based assistance.
            (3) Designees.--In carrying out the demonstration program, 
        the Secretary may enter into arrangements with one or more 
        third-party public entities, under which the Secretary may 
        provide for the assumption by the designee (by delegation, by 
        contract, or otherwise) of some or all of the functions, 
        obligations, and benefits of the Secretary.
    (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) Joint Venture Arrangements.--
            (1) In general.--In carrying out the demonstration program, 
        the Secretary may enter into joint venture arrangements with 
        designees, under which the Secretary may provide for the 
        assumption by the third parties (by delegation, by contract, or 
        otherwise) of some or all of the functions, obligations, and 
        benefits of the Secretary.
            (2) Preference.--In entering into any arrangement under 
        this subsection, the Secretary shall give preference to State 
        housing finance agencies and local housing agencies to act as 
        designees to the extent such agencies are determined to be 
        qualified by the Secretary.
            (3) Public agencies.--Each joint venture arrangement 
        entered into under this subsection shall include a public 
        agency as the primary partner.
            (4) Designee partnerships.--For purposes of any joint 
        venture 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.--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.
    (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 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 on equity, 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.
    (g) HUD-Owned and HUD-Held Mortgages.--For purposes of carrying out 
the demonstration program--
            (1) 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, without regard to any other provision 
        of law; and
            (2) as provided under subsection (b)(3), the Secretary may 
        delegate to one or more designees the authority to carry out 
        some or all of the functions and responsibilities of the 
        Secretary in connection with mortgages held by the Secretary 
        under the National Housing Act.
    (h) 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 
paragraph (2), designee, shall take not less than 1 of the actions 
specified in paragraphs (6), (7), and (8) and may take any of the 
following actions:
            (1) Removal of restrictions.--
                    (A) In general.--Notwithstanding any other 
                provision of law, and 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.
                    (B) 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.
            (2) Reinsurance.--With respect to not more than 5,000 units 
        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 
        to the designee, on such terms and conditions as the Secretary 
        may determine.
            (3) Induce participation of third parties.--Notwithstanding 
        any other provision of law, of amounts made available under 
        appropriations Acts, including amounts made available under 
        this section, 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 to induce participation of owners, lenders, 
        servicers, third parties, and other entities in the 
        demonstration program, including the use of fees 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.
            (4) 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.
            (5) Credit enhancement.--
                    (A) 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.
                    (B) Effect of limitations.--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.
                    (C) Maximum percentage.--During fiscal year 1997, 
                not more than 10 percent of multifamily housing 
                projects with expiring contracts may be restructured 
                without FHA insurance, unless otherwise agreed by the 
                owner of a project.
                    (D) Credit subsidy.--Subject to the funding 
                restrictions under subsection (l), any credit subsidy 
                costs of providing mortgage insurance shall be paid 
                from the General Insurance Fund and the Special Risk 
                Insurance Fund.
            (6) Mortgage restructuring.--
                    (A) In general.--The Secretary or designee may 
                restructure mortgages to provide a restructured first 
                mortgage to cover debt service and operating expenses 
                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.
                    (B) Interest rate on second mortgage.--The second 
                mortgage shall bear interest at a rate not to exceed 
                the applicable Federal rate for a term not to exceed 40 
                years.
                    (C) Timing of payments.--If the first mortgage 
                remains outstanding, payments of interest and principal 
                on the second mortgage shall be made from all excess 
                project income only after the payment of all reasonable 
                and necessary operating expenses (including deposits in 
                a reserve for replacement), debt service on the first 
                mortgage, and such other expenditures as may be 
                approved by the Secretary.
                    (D) Assumption of second mortgage.--The second 
                mortgage shall be assumable by any subsequent purchaser 
                of the multifamily housing project.
                    (E) Disposition of property.--The balance of the 
                principal and accrued interest due under the second 
                mortgage shall be fully payable upon disposition of the 
                property, unless the mortgage is assumed under 
                subparagraph (D).
                    (F) Second mortgage repayment.--The owner shall 
                begin repayment of the second mortgage upon full 
                payment of the first mortgage in equal monthly 
                installments in an amount equal to the monthly 
                principal and interest payments formerly paid under the 
                first mortgage.
                    (G) Failure to comply.--The principal and interest 
                of a second mortgage shall be immediately due and 
                payable upon a finding by the Secretary that an owner 
                has failed to materially comply with this section or 
                any applicable requirement of the United States Housing 
                Act of 1937 in relation to the project at issue.
                    (H) Credit subsidy.--Subject to the funding 
                restrictions under subsection (l), any credit subsidy 
                costs of providing a second mortgage shall be paid from 
                the General Insurance Fund and the Special Risk 
                Insurance Fund.
            (7) 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. In exchange for debt forgiveness 
        under this paragraph, the project shall remain affordable to 
        low-income families for a period of 20 years, unless otherwise 
        provided by the Secretary.
            (8) Budget-based rents.--During fiscal year 1997, the 
        Secretary or designee may renew an expiring contract, for a 
        period of not more than 1 year, at a budget-based rent that 
        covers debt service, reasonable operating expenses (including 
        all reasonable and appropriate services), and a reasonable 
        return on equity, as determined solely by the Secretary, but 
        that 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 in rural areas.
    (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, 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) Limitation on Demonstration Authority.--The Secretary shall 
carry out the demonstration program with respect to mortgages not to 
exceed 50,000 units.
    (k) Priority for Participation.--The Secretary or designee shall 
give priority for participation in the demonstration program to any 
owner of an eligible multifamily housing project with an expiring 
contract for project-based assistance.
    (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, 
are hereby appropriated, to remain available until September 30, 1998.
    (m) Report to Congress.--
            (1) In general.--
                    (A) Biannual reports.--Not less than biannually, 
                the Secretary shall submit to the Congress a report 
                describing and assessing the programs carried out under 
                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) 
        shall include--
                    (A) any findings and recommendations for 
                legislative action; and
                    (B) a description of the status of each multifamily 
                housing project selected for the demonstration program.
            (3) Contents of final report.--The report submitted under 
        paragraph (1)(B) may include--
                    (A) with respect to each multifamily housing 
                project participating in the demonstration program, 
                information relating to--
                            (i) the size of the project;
                            (ii) the geographic locations of the 
                        project, by State and region;
                            (iii) the physical and financial condition 
                        of the project;
                            (iv) the occupancy profile of the project, 
                        including the income, family size, race, and 
                        ethnic origin of the tenants, and the rents 
                        paid by those tenants;
                            (v) a description of actions undertaken 
                        pursuant to this section, including a 
                        description of the effectiveness of such 
                        actions and any impediments to the transfer or 
                        sale of the projects;
                            (vi) a description of the extent to which 
                        the demonstration program has displaced tenants 
                        of the project;
                            (vii) a description of the impact to which 
                        the demonstration program has affected the 
                        localities and communities in which the 
                        projects are located; and
                            (viii) a description of the extent to which 
                        the demonstration program has affected the 
                        owners of the projects; and
                    (B) a description of any of the functions performed 
                in connection with this section that are transferred or 
                contracted out to public or private entities or to 
                State entities.

(42)Page 41, after line 8 insert:
     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).''.

(43)Page 41, after line 8 insert:
    Sec. 214. Involuntary Separations.--In order to avoid or minimize 
the need for involuntary separations due to a reduction in force, 
departmental restructuring, reorganization, transfer of function, or 
similar action affecting the Department of Housing and Urban 
Development, the Secretary shall establish a program under which 
separation pay, subject to the availability of appropriated funds, may 
be offered to encourage employees to separate from service voluntarily, 
whether by retirement or resignation: Provided, That payments to 
individual employees shall not exceed $25,000: Provided further, That 
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, HUD 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 on 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 paragraph.

(44)Page 41, after line 8 insert:
    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.

(45)Page 41, after line 8 insert:

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 1 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.''.

(46)Page 41, after line 8 insert:

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.

(47)Page 41, after line 8 insert:

SEC. 218. MORTGAGE INSURANCE.

    None of the funds appropriated under this Act may be used to give 
final approval to any proposal to provide mortgage insurance having a 
value in excess of $250,000,000 for any project financing for which may 
be guaranteed under section 220 of the National Housing Act (12 U.S.C. 
1715k), unless the Secretary has transmitted to the President pro 
tempore of the Senate and the Speaker of the House the Secretary's 
justification for such guarantee and no final approval shall be given 
until the justification has laid before the Congress for a period of 
not less than 30 days.

(48)Page 44, line 2, strike out [$365,000,000] and insert: $400,500,000

(49)Page 44, line 10, strike out [$40,000,000] and insert: $59,000,000

(50)Page 44, line 14, strike out [$201,000,000] and insert: 
$215,000,000

(51)Page 44, line 19, after ``program)'' insert: , 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))

(52)Page 44, line 20, strike out [$5,000,000] and insert: $5,500,000

(53)Page 45, line 7, strike out [$17,500,000] and insert: $18,000,000

(54)Page 45, line 12, strike out [$41,500,000] and insert: $43,000,000

(55)Page 46, lines 21 and 22, strike out [(increased by $1,411,000)]

(56)Page 46, line 22, strike out [$634,000] and insert: $700,000

(57)Page 48, lines 3 and 4, strike out [$540,000,000 (reduced by 
$1,500,000)] and insert: $545,000,000

(58)Page 48, lines 21 and 22, strike out [$1,703,000,000 (increased by 
$1,500,000)] and insert: $1,713,000,000

(59)Page 49, line 11, strike out [$107,220,000] and insert: $27,220,000

(60)Page 49, line 11, strike out all after ``expended'' down to and 
including ``limitation'' in line 24

(61)Page 50, line 9, strike out [$2,201,200,000] and insert: 
$1,394,245,000 (of which $100,000,000 shall not become available until 
September 1, 1997)

(62)Page 50, line 10, strike out [$1,951,200,000] and insert: 
$1,144,245,000

(63)Page 50, line 24, strike out [$59,000,000] and insert: $64,000,000

(64)Page 51, line 13, strike out all after ``1997'' down to and 
including ``obligation'' in line 17

(65)Page 51, line 17, strike out all after ``obligation'' down to and 
including ``Jersey'' in line 22

(66)Page 52, lines 8 and 9, strike out [$46,500,000 (increased by 
$20,000,000)] and insert: $60,000,000

(67)Page 53, line 5, strike out [$2,768,207,000] and insert: 
$2,815,207,000

(68)Page 53, line 6, strike out [$1,800,000,000] and insert: 
$1,976,000,000

(69)Page 53, line 19, after ``address'' insert: water supply and

(70)Page 53, line 20, strike out all after ``Villages;'' down to and 
including ``Act;'' in line 24

(71)Page 54, line 7, after ``programs'' insert: : 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

(72)Page 54, line 8, strike out [$1,800,000,000] and insert: 
$1,976,000,000

(73)Page 54, line 10, strike out [$450,000,000] and insert: 
$1,275,000,000

(74)Page 54, line 11, strike out all after ``funds'' down to and 
including ``amended'' in line 15

(75)Page 54, line 15, after ``amended'' insert: : 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

(76)Page 54, line 15, after ``amended'' insert: : 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

(77)Page 56, strike out lines 3 through 9

(78)Page 57, line 2, strike out [$2,250,000] and insert: $2,436,000

(79)Page 57, line 7, strike out [$1,120,000,000] and insert: 
$1,320,000,000

(80)Page 57, line 10, after ``expended'' insert: : Provided, That no 
money appropriated for the Federal Emergency Management Agency may be 
expended for the repair of yacht harbors or golf courses except for 
debris removal: Provided further, That no money appropriated for the 
Federal Emergency Management Agency may be expended for tree or shrub 
replacement except in public parks: Provided further, That any funds 
used for repair of any recreational facilities shall be limited to 
debris removal and the repair of recreational buildings only

(81)Page 58, line 12, strike out [$168,000,000] and insert: 
$166,733,000

(82)Page 58, line 16, strike out [$4,533,000] and insert: $4,673,000

(83)Page 59, line 5, strike out [$209,101,000] and insert: $199,101,000

(84)Page 59, line 21, after ``1998.'' insert: The first sentence of 
section 1376(c) of the National Flood Insurance Act of 1968, as amended 
(42 U.S.C. 4026), is amended by striking all after ``this subchapter'' 
and inserting ``such sums as may be necessary through September 30, 
1997 for studies under this title.''.

(85)Page 60, line 4, after ``1994.'' insert: 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.''.

(86)Page 62, strike out lines 18 and 19

(87)Page 62, line 23, strike out all after ``Acts'' over to and 
including ``Acts'' in line 8 on page 63 and insert: : 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

(88)Page 64, line 10, strike out [$5,662,100,000] and insert: 
$5,762,100,000

(89)Page 66, after line 19 insert:
    In order to avoid or minimize the need for involuntary separations 
due to a reduction in force, installation closure, reorganization, 
transfer of function, or 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 employees to separate 
from service voluntarily, whether by retirement or resignation: 
Provided, That payments to individual employees shall not exceed 
$25,000: Provided further, That 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 
paragraph.

(90)Page 67, lines 16 and 17, strike out [$2,422,000,000 (increased by 
$9,110,000)] and insert: $2,432,000,000

(91)Page 68, line 20, strike out [$612,000,000] and insert: 
$624,000,000

(92)Page 69, line 13, strike out [(reduced by $9,110,000)]

(93)Page 70, line 7, strike out [$50,000,000] and insert: $49,900,000

(94)Page 71, line 4, after ``Provided,'' insert: That this provision 
does not apply to accounts that do not contain an object classification 
for travel: Provided further,

(95)Page 78, after line 15 insert:
    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    1801''.
                            With Spina Bifida.
    (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.

(96)Page 78, strike out lines 16 through 25

(97)Page 79, strike out lines 1 through 5

(98)Page 79, strike out all after line 5, over to and including line 9 
on page 80

(99)Page 80, strike out all after line 9, over to and including line 14 
on page 81

(100)Page 81, strike out all after line 14, over to and including line 
4 on page 82

(101)Page 82, strike out lines 5 through 17

(102)Page 82, strike out all after line 17, over to and including line 
4 on page 83

(103)Page 83, strike out lines 5 through 16

(104)Page 83, strike out lines 17 through 22

(105)Page 85, strike out lines 18 through 20 and insert:

SEC. 432. 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, involve 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. 433. 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 mortgages 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.''.

(106)Page 85, strike out lines 21 through 24

(107)Page 85, after line 24 insert:

SEC. 434. SENSE OF THE SENATE WITH REGARD TO COMPLIANCE WITH 
              INTERNATIONAL OBLIGATIONS.

    (a) Findings.--Congress finds that--
            (1) in response to a dispute settlement finding against the 
        United States by the World Trade Organization, the United 
        States informed the World Trade Organization on June 19, 1996, 
        that the United States intends to meet its international 
        obligations to the World Trade Organization with respect to the 
        Environmental Protection Agency's requirements on imported 
        reformulated and conventional gasoline;
            (2) the Environmental Protection Agency has initiated an 
        open process to examine any and all options for compliance with 
        international obligations of the United States in which a key 
        criterion will be fully protecting public health and the 
        environment; and
            (3) many United States environmental and industrial 
        organizations are concerned about the ``Regulation of Fuels and 
        Fuel Additives: Individual Foreign Refinery Baseline 
        Requirements for Reformulated Gasoline'' proposed on May 3, 
        1994 (59 Fed. Reg. 84).
    (b) Sense of the Senate.--It is the sense of the Senate that, in 
evaluating any option for compliance with international obligations, 
the Administrator of the Environmental Protection Agency should--
            (1) take fully into account the protection of public health 
        and the environment and the international obligations of the 
        United States as a member of the World Trade Organization;
            (2) ensure that the compliance review process not result in 
        the degradation of the gasoline quality required by the Clean 
        Air Act (42 U.S.C. 7401 et seq.) with respect to conventional 
        and reformulated gasoline;
            (3) not recognize individual foreign refiner baselines 
        unless the Administrator determines that the issues of 
        auditing, inspection of foreign facilities, and enforcement 
        have been adequately addressed; and
            (4) provide a full and open administrative process in the 
        formulation of any final rule.

(108)Page 85, after line 24 insert:

SEC. 435. 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.

(109)Page 85, after line 24 insert:
    Sec. 436. (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 VA 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.

(110)Page 85, after line 24 insert:
    Sec. 437. 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.

(111)Page 85, after line 24 insert:
    Sec. 438. 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 the 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 to Dryden Flight Research Center, California, 
for purposes of the consolidation of such aircraft.

(112)Page 85, after line 24 insert:
    Sec. 439. Revision of Name of Japan-United States Friendship 
Commission.--(1)(A) The first sentence of section 4(a) of the Japan-
United States Friendship Act (22 U.S.C. 2903(a)) is amended by striking 
out ``Japan-United States Friendship Commission'' and inserting in lieu 
thereof ``United States-Japan Commission''.
    (B) The section heading of such section is amended to read as 
follows:

``UNITED STATES-JAPAN COMMISSION''.

    (2) Subsection (c) of section 3 of that Act (22 U.S.C. 2902) is 
amended by striking out ``Japan-United States Friendship Commission'' 
and inserting in lieu thereof ``United States-Japan Commission''.
    (3) Any reference to the Japan-United States Friendship Commission 
in any Federal law, Executive order, regulation, delegation of 
authority, or other document shall be deemed to refer to the United 
States-Japan Commission.

(113)Page 85, after line 24 insert:
    Sec. 440. (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 conveyance from NASA.
    (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 NASA 
shall determine fair market value in accordance with Federal appraisal 
standards and procedures.
    (4) Treatment of leases.--The Administrator of NASA 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 NASA 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. The cost of the survey shall be 
borne by the City of Downey, California.
    (d) The Administrator may require such additional terms and 
conditions in connection with the conveyance under subsection (a) as 
the Administrator 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 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.

(114)Page 85, after line 24 insert:

                                TITLE V

                              SUPPLEMENTAL

(115)Page 85, after line 24 insert:

                     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.

(116)Page 85, after line 24 insert:

              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.

(117)Page 85, after line 24 insert:

     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 inpatient care 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 father to care for the 
        newborn, the adequacy of support systems at home, and the 
        access of the mother and 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. REQUIRED COVERAGE FOR MINIMUM HOSPITAL STAY FOLLOWING BIRTH.

    (a) In General.--Except as provided in subsection (b), a health 
plan or an employee health benefit plan that provides maternity 
benefits, including benefits for childbirth, shall ensure that coverage 
is provided with respect to a mother who is a participant, beneficiary, 
or policyholder under such plan and her newborn child for a minimum of 
48 hours of inpatient length of stay following a normal vaginal 
delivery, and a minimum of 96 hours of inpatient length of stay 
following a caesarean section, without requiring the attending provider 
to obtain authorization from the health plan or employee health benefit 
plan.
    (b) Exception.--Notwithstanding subsection (a), a health plan or an 
employee health benefit plan shall not be required to provide coverage 
for post-delivery inpatient length of stay for a mother who is a 
participant, beneficiary, or policyholder under such plan and her 
newborn child for the period referred to in subsection (a) if--
            (1) a decision to discharge the mother and her newborn 
        child prior to the expiration of such period is made by the 
        attending provider in consultation with the mother; and
            (2) the health plan or employee health benefit plan 
        provides coverage for post-delivery follow-up care as described 
        in section 604.

SEC. 604. POST-DELIVERY FOLLOW-UP CARE.

    (a) In General.--
            (1) General rule.--In the case of a decision to discharge a 
        mother and her newborn child from the inpatient setting prior 
        to the expiration of 48 hours following a normal vaginal 
        delivery or 96 hours following a caesarean section, the health 
        plan or employee health benefit plan shall provide coverage for 
        timely post-delivery care. Such health care shall be provided 
        to a mother and her newborn child by a registered nurse, 
        physician, nurse practitioner, nurse midwife or physician 
        assistant experienced in maternal and child health in--
                    (A) the home, a provider's office, a hospital, a 
                birthing center, an intermediate care facility, a 
                federally qualified health center, a federally 
                qualified rural health clinic, or a State health 
                department maternity clinic; or
                    (B) another setting determined appropriate under 
                regulations promulgated by the Secretary, in 
                consultation with the Secretary of Health and Human 
                Services.
        The attending provider in consultation with the mother shall 
        decide the most appropriate location for follow-up care.
            (2) Considerations by secretary.--In promulgating 
        regulations under paragraph (1)(B), the Secretary shall 
        consider telemedicine and other innovative means to provide 
        follow-up care and shall consider care in both urban and rural 
        settings.
    (b) Timely Care.--As used in subsection (a), the term ``timely 
post-delivery care'' means health care that is provided--
            (1) following the discharge of a mother and her newborn 
        child from the inpatient setting; and
            (2) in a manner that meets the health care needs of the 
        mother and her newborn child, that provides for the appropriate 
        monitoring of the conditions of the mother and child, and that 
        occurs not later than the 72-hour period immediately following 
        discharge.
    (c) Consistency With State Law.--The Secretary shall, with respect 
to regulations promulgated under subsection (a) concerning appropriate 
post-delivery care settings, ensure that, to the extent practicable, 
such regulations are consistent with State licensing and practice laws.

SEC. 605. PROHIBITIONS.

    In implementing the requirements of this title, a health plan or an 
employee health benefit plan may not--
            (1) deny enrollment, renewal, or continued coverage to a 
        mother and her newborn child who are participants, 
        beneficiaries or policyholders based on compliance with this 
        title;
            (2) provide monetary payments or rebates to mothers to 
        encourage such mothers to request less than the minimum 
        coverage required under this title;
            (3) penalize or otherwise reduce or limit the reimbursement 
        of an attending provider because such provider provided 
        treatment to an individual patient in accordance with this 
        title; or
            (4) provide incentives (monetary or otherwise) to an 
        attending provider to induce such provider to provide treatment 
        to an individual policyholder, participant, or beneficiary in a 
        manner inconsistent with this title.

SEC. 606. NOTICE.

    (a) Employee Health Benefit Plan.--An employee health benefit plan 
shall provide conspicuous notice to each participant regarding coverage 
required under this Act not later than 120 days after the date of 
enactment of this title, and as part of its summary plan description.
    (b) Health Plan.--A health plan shall provide notice to each 
policyholder regarding coverage required under this title. Such notice 
shall be in writing, prominently positioned, and be transmitted--
            (1) in a mailing made within 120 days of the date of 
        enactment of this title by such plan to the policyholder; and
            (2) as part of the annual informational packet sent to the 
        policyholder.

SEC. 607. APPLICABILITY.

    (a) Construction.--
            (1) In general.--A requirement or standard imposed under 
        this title on a health plan shall be deemed to be a requirement 
        or standard imposed on the health plan issuer. Such 
        requirements or standards shall be enforced by the State 
        insurance commissioner for the State involved or the official 
        or officials designated by the State to enforce the 
        requirements of this title. In the case of a health plan 
        offered by a health plan issuer in connection with an employee 
        health benefit plan, the requirements or standards imposed 
        under this title shall be enforced with respect to the health 
        plan issuer by the State insurance commissioner for the State 
        involved or the official or officials designated by the State 
        to enforce the requirements of this title.
            (2) Limitation.--Except as provided in section 608(c), the 
        Secretary shall not enforce the requirements or standards of 
        this title as they relate to health plan issuers or health 
        plans. In no case shall a State enforce the requirements or 
        standards of this title as they relate to employee health 
        benefit plans.
    (b) ERISA.--Nothing in this title shall be construed to affect or 
modify the provisions of section 514 of the Employee Retirement Income 
Security Act of 1974 (29 U.S.C. 1144).
    (c) Effect on Mother.--Nothing in this title shall be construed to 
require that a mother who is a participant, beneficiary, or 
policyholder covered under this title--
            (1) give birth in a hospital; or
            (2) stay in the hospital for a fixed period of time 
        following the birth of her child.
    (d) Level and Type of Reimbursements.--Nothing in this title shall 
be construed to prevent a health plan or an employee health benefit 
plan from negotiating the level and type of reimbursement with an 
attending provider for care provided in accordance with this title.

SEC. 608. ENFORCEMENT.

    (a) Health Plan Issuers.--Each State shall require that each health 
plan issued, sold, renewed, offered for sale or operated in such State 
by a health plan issuer meet the standards established under this 
title. A State shall submit such information as required by the 
Secretary demonstrating effective implementation of the requirements of 
this title.
    (b) Employee Health Benefit Plans.--With respect to employee health 
benefit plans, the standards established under this title shall be 
enforced in the same manner as provided for under sections 502, 504, 
506, and 510 of the Employee Retirement Income Security Act of 1974 (29 
U.S.C. 1132, 1134, 1136, and 1140). The civil penalties contained in 
paragraphs (1) and (2) of section 502(c) of such Act (29 U.S.C. 
1132(c)(1) and (2)) shall apply to any information required by the 
Secretary to be disclosed and reported under this section.
    (c) Failure to Enforce.--In the case of the failure of a State to 
substantially enforce the standards and requirements set forth in this 
title with respect to health plans, the Secretary, in consultation with 
the Secretary of Health and Human Services, shall enforce the standards 
of this title in such State. In the case of a State that fails to 
substantially enforce the standards set forth in this title, each 
health plan issuer operating in such State shall be subject to civil 
enforcement as provided for under sections 502, 504, 506, and 510 of 
the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1132, 
1134, 1136, and 1140). The civil penalties contained in paragraphs (1) 
and (2) of section 502(c) of such Act (29 U.S.C. 1132(c)(1) and (2)) 
shall apply to any information required by the Secretary to be 
disclosed and reported under this section.
    (d) Regulations.--The Secretary, in consultation with the Secretary 
of Health and Human Services, may promulgate such regulations as may be 
necessary or appropriate to carry out this title.

SEC. 609. DEFINITIONS.

    As used in this title:
            (1) Attending provider.--The term ``attending provider'' 
        shall include--
                    (A) the obstetrician-gynecologists, pediatricians, 
                family physicians, and other physicians primarily 
                responsible for the care of a mother and newborn; and
                    (B) the nurse midwives and nurse practitioners 
                primarily responsible for the care of a mother and her 
                newborn child in accordance with State licensure and 
                certification laws.
            (2) Beneficiary.--The term ``beneficiary'' has the meaning 
        given such term under section 3(8) of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1002(8)).
            (3) Employee health benefit plan.--
                    (A) In general.--The term ``employee health benefit 
                plan'' means any employee welfare benefit plan, 
                governmental plan, or church plan (as defined under 
                paragraphs (1), (32), and (33) of section 3 of the 
                Employee Retirement Income Security Act of 1974 (29 
                U.S.C. 1002 (1), (32), and (33))) that provides or pays 
                for health benefits (such as provider and hospital 
                benefits) for participants and beneficiaries whether--
                            (i) directly;
                            (ii) through a health plan offered by a 
                        health plan issuer as defined in paragraph (4); 
                        or
                            (iii) otherwise.
                    (B) Rule of construction.--An employee health 
                benefit plan shall not be construed to be a health plan 
                or a health plan issuer.
                    (C) Arrangements not included.--Such term does not 
                include the following, or any combination thereof:
                            (i) Coverage only for accident, or 
                        disability income insurance, or any combination 
                        thereof.
                            (ii) Medicare supplemental health insurance 
                        (as defined under section 1882(g)(1) of the 
                        Social Security Act).
                            (iii) Coverage issued as a supplement to 
                        liability insurance.
                            (iv) Liability insurance, including general 
                        liability insurance and automobile liability 
                        insurance.
                            (v) Workers compensation or similar 
                        insurance.
                            (vi) Automobile medical payment insurance.
                            (vii) Coverage for a specified disease or 
                        illness.
                            (viii) Hospital or fixed indemnity 
                        insurance.
                            (ix) Short-term limited duration insurance.
                            (x) Credit-only, dental-only, or vision-
                        only insurance.
                            (xi) A health insurance policy providing 
                        benefits only for long-term care, nursing home 
                        care, home health care, community-based care, 
                        or any combination thereof.
            (4) Group purchaser.--The term ``group purchaser'' means 
        any person (as defined under paragraph (9) of section 3 of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1002(9)) or entity that purchases or pays for health benefits 
        (such as provider or hospital benefits) on behalf of 
        participants or beneficiaries in connection with an employee 
        health benefit plan.
            (5) Health plan.--
                    (A) In general.--The term ``health plan'' means any 
                group health plan or individual health plan.
                    (B) Group health plan.--The term ``group health 
                plan'' means any contract, policy, certificate or other 
                arrangement offered by a health plan issuer to a group 
                purchaser that provides or pays for health benefits 
                (such as provider and hospital benefits) in connection 
                with an employee health benefit plan.
                    (C) Individual health plan.--The term ``individual 
                health plan'' means any contract, policy, certificate 
                or other arrangement offered to individuals by a health 
                plan issuer that provides or pays for health benefits 
                (such as provider and hospital benefits) and that is 
                not a group health plan.
                    (D) Arrangements not included.--Such term does not 
                include the following, or any combination thereof:
                            (i) Coverage only for accident, or 
                        disability income insurance, or any combination 
                        thereof.
                            (ii) Medicare supplemental health insurance 
                        (as defined under section 1882(g)(1) of the 
                        Social Security Act).
                            (iii) Coverage issued as a supplement to 
                        liability insurance.
                            (iv) Liability insurance, including general 
                        liability insurance and automobile liability 
                        insurance.
                            (v) Workers compensation or similar 
                        insurance.
                            (vi) Automobile medical payment insurance.
                            (vii) Coverage for a specified disease or 
                        illness.
                            (viii) Hospital or fixed indemnity 
                        insurance.
                            (ix) Short-term limited duration insurance.
                            (x) Credit-only, dental-only, or vision-
                        only insurance.
                            (xi) A health insurance policy providing 
                        benefits only for long-term care, nursing home 
                        care, home health care, community-based care, 
                        or any combination thereof.
                    (E) Certain plans included.--Such term includes any 
                plan or arrangement not described in any clause of 
                subparagraph (D) which provides for benefit payments, 
                on a periodic basis, for--
                            (i) a specified disease or illness, or
                            (ii) a period of hospitalization,
                without regard to the costs incurred or services 
                rendered during the period to which the payments 
                relate.
            (6) Health plan issuer.--The term ``health plan issuer'' 
        means any entity that is licensed (prior to or after the date 
        of enactment of this title) by a State to offer a health plan.
            (7) Participant.--The term ``participant'' has the meaning 
        given such term under section 3(7) of the Employee Retirement 
        Income Security Act of 1974 (29 U.S.C. 1002(7)).
            (8) Secretary.--The term ``Secretary'' unless otherwise 
        specified means the Secretary of Labor.

SEC. 610. PREEMPTION.

    (a) In General.--The provisions of sections 603, 605, and 606 
relating to inpatient care shall not preempt a State law or 
regulation--
            (1) that provides greater protections to patients or 
        policyholders than those required in this title;
            (2) that requires health plans to provide coverage for at 
        least 48 hours of inpatient length of stay following a normal 
        vaginal delivery, and at least 96 hours of inpatient length of 
        stay following a caesarean section;
            (3) that requires health plans to provide coverage 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; or
            (4) that leaves decisions regarding appropriate length of 
        stay entirely to the attending provider, in consultation with 
        the mother.
    (b) Follow-Up Care.--The provisions of section 604 relating to 
follow-up care shall not preempt those provisions of State law or 
regulation that provide comparable or greater protection to patients or 
policyholders than those required under this title or that provide 
mothers and newborns with an option of timely post delivery follow-up 
care (as defined in section 604(b)) in the home.
    (c) Employee Health Benefit Plans.--Nothing in this section affects 
the application of this title to employee health benefit plans, as 
defined in section 609(3).

SEC. 611. 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 to--
                    (A) examine the issues and consequences associated 
                with the length of hospital stays following childbirth;
                    (B) examine the follow-up practices for mothers and 
                newborns used in conjunction with shorter hospital 
                stays;
                    (C) identify appropriate health care practices and 
                procedures with regard to the hospital discharge of 
                newborns and mothers;
                    (D) examine the extent to which such care is 
                affected by family and environmental factors; and
                    (E) 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 title, the Secretary of Health and Human 
        Services shall establish an advisory panel (hereafter referred 
        to in this section as the ``advisory panel'') to--
                    (A) guide and review methods, procedures, and data 
                collection necessary to conduct the study described in 
                subsection (c) that is intended to enhance the quality, 
                safety, and effectiveness of health care services 
                provided to mothers and newborns;
                    (B) develop a consensus among the members of the 
                advisory panel regarding the appropriateness of the 
                specific requirements of this title; and
                    (C) prepare and submit to the Secretary of Health 
                and Human Services, as part of the report of the 
                Secretary submitted under subsection (d), a report 
                summarizing the consensus developed under subparagraph 
                (B) if any, including the reasons for not reaching such 
                a consensus.
            (2) Participation.--
                    (A) Department representatives.--The Secretary of 
                Health and Human Services 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 established under 
                paragraph (1).
                    (B) Representatives of public and private sector 
                entities.--
                            (i) In general.--The Secretary of Health 
                        and Human Services 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 from 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 of Health and Human Services 
        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 of Health and Human Services 
        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 of Health and Human Services 
        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 
                subsection (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 enactment of this title.
            (2) Submission of reports.--The Secretary of Health and 
        Human Services shall prepare and submit to the Committees 
        referred to in paragraph (1)--
                    (A) an initial report concerning the study 
                conducted under subsection (c) and the report required 
                under subsection (d), not later than 18 months after 
                the date of enactment of this title;
                    (B) an interim report concerning such study and 
                report not later than 3 years after the date of 
                enactment of this title; and
                    (C) a final report concerning such study and report 
                not later than 5 years after the date of enactment of 
                this title.
    (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 this section.

SEC. 612. SALE OF GOVERNORS ISLAND, NEW YORK.

    (a) In General.--Notwithstanding any other provision of law, the 
Administrator of General Services shall dispose of by sale at fair 
market value all rights, title, and interests of the United States in 
and to the land of, and improvements to, Governors Island, New York.
    (b) Right of First Refusal.--Before a sale is made under subsection 
(a) to any other parties, the State of New York and the city of New 
York shall be given the right of first refusal to purchase all or part 
of Governors Island. Such right may be exercised by either the State of 
New York or the city of New York or by both parties acting jointly.
    (c) Proceeds.--Proceeds from the disposal of Governors Island under 
subsection (a) shall be deposited in the general fund of the Treasury 
and credited as miscellaneous receipts.

SEC. 613. SALE OF AIR RIGHTS.

    (a) In General.--Notwithstanding any other provision of law, the 
Administrator of General Services shall sell, at fair market value and 
in a manner to be determined by the Administrator, the air rights 
adjacent to Washington Union Station described in subsection (b), 
including air rights conveyed to the Administrator under subsection 
(d). The Administrator shall complete the sale by such date as is 
necessary to ensure that the proceeds from the sale will be deposited 
in accordance with subsection (c).
    (b) Description.--The air rights referred to in subsection (a) 
total approximately 16.5 acres and are depicted on the plat map of the 
District of Columbia as follows:
            (1) Part of lot 172, square 720.
            (2) Part of lots 172 and 823, square 720.
            (3) Part of lot 811, square 717.
    (c) Proceeds.--Before September 30, 1997, proceeds from the sale of 
air rights under subsection (a) shall be deposited in the general fund 
of the Treasury and credited as miscellaneous receipts.
    (d) Conveyance of Amtrak Air Rights.--
            (1) General rule.--As a condition of future Federal 
        financial assistance, Amtrak shall convey to the Administrator 
        of General Services on or before December 31, 1996, at no 
        charge, all of the air rights of Amtrak described in subsection 
        (b).
            (2) Failure to comply.--If Amtrak does not meet the 
        condition established by paragraph (1), Amtrak shall be 
        prohibited from obligating Federal funds after March 1, 1997.

SEC. 614. EFFECTIVE DATE.

    Except as otherwise provided for in this title, the provisions of 
this title shall apply as follows:
            (1) With respect to health plans, such provisions shall 
        apply to such plans on the first day of the contract year 
        beginning on or after January 1, 1998.
            (2) With respect to employee health benefit plans, such 
        provisions shall apply to such plans on the first day of the 
        first plan year beginning on or after January 1, 1998.

(118)Page 85, after line 24 insert:

                    TITLE VII--MENTAL HEALTH PARITY

SEC. 701. SHORT TITLE.

    This title may be cited as the ``Mental Health Parity Act of 
1996''.

SEC. 702. PLAN PROTECTIONS FOR INDIVIDUALS WITH A MENTAL ILLNESS.

    (a) Permissible Coverage Limits Under a Group Health Plan.--
            (1) Aggregate lifetime limits.--
                    (A) In general.--With respect to a group health 
                plan offered by a health insurance issuer, that applies 
                an aggregate lifetime limit to plan payments for 
                medical or surgical services covered under the plan, if 
                such plan also provides a mental health benefit such 
                plan shall--
                            (i) include plan payments made for mental 
                        health services under the plan in such 
                        aggregate lifetime limit; or
                            (ii) establish a separate aggregate 
                        lifetime limit applicable to plan payments for 
                        mental health services under which the dollar 
                        amount of such limit (with respect to mental 
                        health services) is equal to or greater than 
                        the dollar amount of the aggregate lifetime 
                        limit on plan payments for medical or surgical 
                        services.
                    (B) No lifetime limit.--With respect to a group 
                health plan offered by a health insurance issuer, that 
                does not apply an aggregate lifetime limit to plan 
                payments for medical or surgical services covered under 
                the plan, such plan may not apply an aggregate lifetime 
                limit to plan payments for mental health services 
                covered under the plan.
            (2) Annual limits.--
                    (A) In general.--With respect to a group health 
                plan offered by a health insurance issuer, that applies 
                an annual limit to plan payments for medical or 
                surgical services covered under the plan, if such plan 
                also provides a mental health benefit such plan shall--
                            (i) include plan payments made for mental 
                        health services under the plan in such annual 
                        limit; or
                            (ii) establish a separate annual limit 
                        applicable to plan payments for mental health 
                        services under which the dollar amount of such 
                        limit (with respect to mental health services) 
                        is equal to or greater than the dollar amount 
                        of the annual limit on plan payments for 
                        medical or surgical services.
                    (B) No annual limit.--With respect to a group 
                health plan offered by a health insurance issuer, that 
                does not apply an annual limit to plan payments for 
                medical or surgical services covered under the plan, 
                such plan may not apply an annual limit to plan 
                payments for mental health services covered under the 
                plan.
    (b) Rule of Construction.--
            (1) In general.--Nothing in this section shall be construed 
        as prohibiting a group health plan offered by a health 
        insurance issuer, from--
                    (A) utilizing other forms of cost containment not 
                prohibited under subsection (a); or
                    (B) applying requirements that make distinctions 
                between acute care and chronic care.
            (2) Nonapplicability.--This section shall not apply to--
                    (A) substance abuse or chemical dependency 
                benefits; or
                    (B) health benefits or health plans paid for under 
                title XVIII or XIX of the Social Security Act.
            (3) State law.--Nothing in this section shall be construed 
        to preempt any State law that provides for greater parity with 
        respect to mental health benefits than that required under this 
        section.
    (c) Small Employer Exemption.--
            (1) In general.--This section shall not apply to plans 
        maintained by employers that employ less than 26 employees.
            (2) Application of certain rules in determination of 
        employer size.--For purposes of this subsection--
                    (A) Application of aggregation rule for 
                employers.--All persons treated as a single employer 
                under subsection (b), (c), (m), or (o) of section 414 
                of the Internal Revenue Code of 1986 shall be treated 
                as 1 employer.
                    (B) 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.
                    (C) Predecessors.--Any reference in this subsection 
                to an employer shall include a reference to any 
                predecessor of such employer.

SEC. 703. DEFINITIONS.

    For purposes of this title:
            (1) Group health plan.--
                    (A) In general.--The term ``group health plan'' 
                means an employee welfare benefit plan (as defined in 
                section 3(1) of the Employee Retirement Income Security 
                Act of 1974) to the extent that the plan provides 
                medical care (as defined in paragraph (2)) and 
                including items and services paid for as medical care) 
                to employees or their dependents (as defined under the 
                terms of the plan) directly or through insurance, 
                reimbursement, or otherwise.
                    (B) Medical care.--The term ``medical care'' means 
                amounts paid for--
                            (i) the diagnosis, cure, mitigation, 
                        treatment, or prevention of disease, or amounts 
                        paid for the purpose of affecting any structure 
                        or function of the body,
                            (ii) amounts paid for transportation 
                        primarily for and essential to medical care 
                        referred to in clause (i), and
                            (iii) amounts paid for insurance covering 
                        medical care referred to in clauses (i) and 
                        (ii).
            (2) Health insurance coverage.--The term ``health insurance 
        coverage'' means benefits consisting of medical care (provided 
        directly, through insurance or reimbursement, or otherwise and 
        including items and services paid for as medical care) under 
        any hospital or medical service policy or certificate, hospital 
        or medical service plan contract, or health maintenance 
        organization contract offered by a health insurance issuer.
            (3) Health insurance issuer.--The term ``health insurance 
        issuer'' means an insurance company, insurance service, or 
        insurance organization (including a health maintenance 
        organization, as defined in paragraph (4)) which is licensed to 
        engage in the business of insurance in a State and which is 
        subject to State law which regulates insurance (within the 
        meaning of section 514(b)(2) of the Employee Retirement Income 
        Security Act of 1974), and includes a plan sponsor described in 
        section 3(16)(B) of the Employee Retirement Income Security Act 
        of 1974 in the case of a group health plan which is an employee 
        welfare benefit plan (as defined in section 3(1) of such Act). 
        Such term does not include a group health plan.
            (4) Health maintenance organization.--The term ``health 
        maintenance organization'' means--
                    (A) a federally qualified health maintenance 
                organization (as defined in section 1301(a) of the 
                Public Health Service Act),
                    (B) an organization recognized under State law as a 
                health maintenance organization, or
                    (C) a similar organization regulated under State 
                law for solvency in the same manner and to the same 
                extent as such a health maintenance organization.
            (5) State.--The term ``State'' means each of the several 
        States, the District of Columbia, Puerto Rico, the Virgin 
        Islands, Guam, American Samoa, and the Northern Mariana 
        Islands.

SEC. 704. SUNSET.

    Sections 701 through 703 shall cease to be effective on September 
30, 2001.

SEC. 705. FEDERAL EMPLOYEE HEALTH BENEFIT PROGRAM.

    For the Federal Employee Health Benefit Program, sections 701 
through 703 will take effect on October 1, 1997.

SEC. 706. EXEMPTION.

    Notwithstanding the provisions of this title, if the provisions of 
this title result in a 1 percent or greater increase in the cost of a 
group health plan's premiums, the purchaser is exempt from the 
provisions of this title.

            Attest:

                                                             Secretary.
104th CONGRESS

  2d Session

                               H. R. 3666

_______________________________________________________________________

                               AMENDMENTS

HR 3666 EAS----2
HR 3666 EAS----3
HR 3666 EAS----4
HR 3666 EAS----5
HR 3666 EAS----6
HR 3666 EAS----7
HR 3666 EAS----8
HR 3666 EAS----9
HR 3666 EAS----10
```