IB

104TH CONGRESS

2D SESSION H. R. 3666

IN THE HOUSE OF REPRESENTATIVES

SEPTEMBER 6, 1996

Ordered to be printed with the amendments of the Senate numbered

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.

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

3 That the following sums are appropriated, out of any

4 money in the Treasury not otherwise appropriated, for the

5 Departments of Veterans Affairs and Housing and Urban

6 Development, and for sundry independent agencies,

7 boards, commissions, corporations, and offices for the fis8 cal year ending September 30, 1997, and for other pur9 poses, namely:
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1 TITLE I

2 DEPARTMENT OF VETERANS AFFAIRS

3 VETERANS BENEFITS ADMINISTRATION

4 COMPENSATION AND PENSIONS

5 (INCLUDING TRANSFERS OF FUNDS)

6 For the payment of compensation benefits to or on

7 behalf of veterans as authorized by law (38 U.S.C. 107,

8 chapters 11, 13, 51, 53, 55, and 61); pension benefits to

9 or on behalf of veterans as authorized by law (38 U.S.C.

10 chapters 15, 51, 53, 55, and 61; 92 Stat. 2508); and bur11 ial benefits, emergency and other officers’ retirement pay,

12 adjusted-service credits and certificates, payment of pre13 miums due on commercial life insurance policies guaran14 teed under the provisions of Article IV of the Soldiers’

15 and Sailors’ Civil Relief Act of 1940, as amended, and

16 for other benefits as authorized by law (38 U.S.C. 107,

17 1312, 1977, and 2106, chapters 23, 51, 53, 55, and 61;

18 50 U.S.C. App. 540–548; 43 Stat. 122, 123; 45 Stat. 735;

19 76 Stat. 1198); Ω1æ$18,497,854,000 $18,671,259,000, to

20 remain available until expended: Provided, That not to ex21 ceed $26,417,000 of the amount appropriated shall be re22 imbursed to ‘‘General operating expenses’’ and ‘‘Medical

23 care’’ for necessary expenses in implementing those provi24 sions authorized in the Omnibus Budget Reconciliation

25 Act of 1990, and in the Veterans’ Benefits Act of 1992
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1 (38 U.S.C. chapters 51, 53, and 55), the funding source

2 for which is specifically provided as the ‘‘Compensation

3 and pensions’’ appropriation: Provided further, That such

4 sums as may be earned on an actual qualifying patient

5 basis, shall be reimbursed to ‘‘Medical facilities revolving

6 fund’’ to augment the funding of individual medical facili7 ties for nursing home care provided to pensioners as au8 thorized by the Veterans’ Benefits Act of 1992 (38 U.S.C.

9 chapter 55).

10 READJUSTMENT BENEFITS

11 For the payment of readjustment and rehabilitation

12 benefits to or on behalf of veterans as authorized by 38

13 U.S.C. chapters 21, 30, 31, 34, 35, 36, 39, 51, 53, 55,

14 and 61, Ω2æ$1,227,000,000 $1,377,000,000, to remain

15 available until expended: Provided, That funds shall be

16 available to pay any court order, court award or any com17 promise settlement arising from litigation involving the vo18 cational training program authorized by section 18 of

19 Public Law 98–77, as amended.

20 VETERANS INSURANCE AND INDEMNITIES

21 For military and naval insurance, national service life

22 insurance, servicemen’s indemnities, service-disabled vet23 erans insurance, and veterans mortgage life insurance as

24 authorized by 38 U.S.C. chapter 19; 70 Stat. 887; 72
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1 Stat. 487, $38,970,000, to remain available until ex2 pended.

3 GUARANTY AND INDEMNITY PROGRAM ACCOUNT

4 (INCLUDING TRANSFER OF FUNDS)

5 For the cost of direct and guaranteed loans, such

6 sums as may be necessary to carry out the program, as

7 authorized by 38 U.S.C. chapter 37, as amended: Pro8 vided, That such costs, including the cost of modifying

9 such loans, shall be as defined in section 502 of the Con10 gressional Budget Act of 1974, as amended.

11 In addition, for administrative expenses to carry out

12 the direct and guaranteed loan programs, $105,226,000,

13 which may be transferred to and merged with the appro14 priation for ‘‘General operating expenses’’.

15 LOAN GUARANTY PROGRAM ACCOUNT

16 (INCLUDING TRANSFER OF FUNDS)

17 For the cost of direct and guaranteed loans, such

18 sums as may be necessary to carry out the program, as

19 authorized by 38 U.S.C. chapter 37, as amended: Pro20 vided, That such costs, including the cost of modifying

21 such loans, shall be as defined in section 502 of the Con22 gressional Budget Act of 1974, as amended.

23 In addition, for administrative expenses to carry out

24 the direct and guaranteed loan programs, $33,810,000,
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1 which may be transferred to and merged with the appro2 priation for ‘‘General operating expenses’’.

3 DIRECT LOAN PROGRAM ACCOUNT

4 (INCLUDING TRANSFER OF FUNDS)

5 For the cost of direct loans, such sums as may be

6 necessary to carry out the program, as authorized by 38

7 U.S.C. chapter 37, as amended: Provided, That such costs,

8 including the cost of modifying such loans, shall be as de9 fined in section 502 of the Congressional Budget Act of

10 1974, as amended: Provided further, That during 1997,

11 within the resources available, not to exceed $300,000 in

12 gross obligations for direct loans are authorized for spe13 cially adapted housing loans.

14 In addition, for administrative expenses to carry out

15 the direct loan program, $80,000, which may be trans16 ferred to and merged with the appropriation for ‘‘General

17 operating expenses’’.

18 EDUCATION LOAN FUND PROGRAM ACCOUNT

19 (INCLUDING TRANSFER OF FUNDS)

20 For the cost of direct loans, $1,000, as authorized

21 by 38 U.S.C. 3698, as amended: Provided, That such

22 costs, including the cost of modifying such loans, shall be

23 as defined in section 502 of the Congressional Budget Act

24 of 1974, as amended: Provided further, That these funds
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1 are available to subsidize gross obligations for the prin2 cipal amount of direct loans not to exceed $3,000.

3 In addition, for administrative expenses necessary to

4 carry out the direct loan program, $195,000, which may

5 be transferred to and merged with the appropriation for

6 ‘‘General operating expenses’’.

7 VOCATIONAL REHABILITATION LOANS PROGRAM ACCOUNT

8 (INCLUDING TRANSFER OF FUNDS)

9 For the cost of direct loans, $49,000, as authorized

10 by 38 U.S.C. chapter 31, as amended: Provided, That such

11 costs, including the cost of modifying such loans, shall be

12 as defined in section 502 of the Congressional Budget Act

13 of 1974, as amended: Provided further, That these funds

14 are available to subsidize gross obligations for the prin15 cipal amount of direct loans not to exceed Ω3æ$1,964,000

16 $2,822,000.

17 In addition, for administrative expenses necessary to

18 carry out the direct loan program, $377,000, which may

19 be transferred to and merged with the appropriation for

20 ‘‘General operating expenses’’.

21 NATIVE AMERICAN VETERAN HOUSING LOAN PROGRAM

22 ACCOUNT

23 (INCLUDING TRANSFER OF FUNDS)

24 For administrative expenses to carry out the direct

25 loan program authorized by 38 U.S.C. chapter 37, sub-
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1 chapter V, as amended, $205,000, which may be trans2 ferred to and merged with the appropriation for ‘‘General

3 operating expenses’’.

4 VETERANS HEALTH ADMINISTRATION

5 MEDICAL CARE

6 For necessary expenses for the maintenance and op7 eration of hospitals, nursing homes, and domiciliary facili8 ties; for furnishing, as authorized by law, inpatient and

9 outpatient care and treatment to beneficiaries of the De10 partment of Veterans Affairs, including care and treat11 ment in facilities not under the jurisdiction of the Depart12 ment; and furnishing recreational facilities, supplies, and

13 equipment; funeral, burial, and other expenses incidental

14 thereto for beneficiaries receiving care in the Department;

15 administrative expenses in support of planning, design,

16 project management, real property acquisition and disposi17 tion, construction and renovation of any facility under the

18 jurisdiction or for the use of the Department; oversight,

19 engineering and architectural activities not charged to

20 project cost; repairing, altering, improving or providing fa21 cilities in the several hospitals and homes under the juris22 diction of the Department, not otherwise provided for, ei23 ther by contract or by the hire of temporary employees

24 and purchase of materials; uniforms or allowances there25 for, as authorized by 5 U.S.C. 5901–5902; aid to State
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1 homes as authorized by 38 U.S.C. 1741; and not to exceed

2 $8,000,000 to fund cost comparison studies as referred

3 to in 38 U.S.C. 8110(a)(5); $17,008,447,000, plus reim4 bursements: Provided, That of the funds made available

5 under this heading, Ω4æ$570,000,000 $596,000,000 is for

6 the equipment and land and structures object classifica7 tions only, which amount shall not become available for

8 obligation until August 1, 1997, and shall remain available

9 until September 30, 1998.

10 MEDICAL AND PROSTHETIC RESEARCH

11 For necessary expenses in carrying out programs of

12 medical and prosthetic research and development as au13 thorized by 38 U.S.C. chapter 73, to remain available until

14 September 30, 1998, Ω5æ$257,000,000 $262,000,000, plus

15 reimbursements.

16 MEDICAL ADMINISTRATION AND MISCELLANEOUS

17 OPERATING EXPENSES

18 For necessary expenses in the administration of med19 ical, hospital, nursing home, domiciliary, construction,

20 supply, and research activities, as authorized by law; ad21 ministrative expenses in support of planning, design,

22 project management, architectural, engineering, real prop23 erty acquisition and disposition, construction and renova24 tion of any facility under the jurisdiction or for the use

25 of the Department of Veterans Affairs, including site ac-
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1 quisition; engineering and architectural activities not

2 charged to project cost; and research and development in

3 building construction technology; Ω6æ$59,207,000

4 $62,207,000, plus reimbursements.

5 TRANSITIONAL HOUSING LOAN PROGRAM

6 (INCLUDING TRANSFER OF FUNDS)

7 For the cost of direct loans, $7,000, as authorized

8 by Public Law 102–54, section 8, which shall be trans9 ferred from the ‘‘General post fund’’: Provided, That such

10 costs, including the cost of modifying such loans, shall be

11 as defined in section 502 of the Congressional Budget Act

12 of 1974, as amended: Provided further, That these funds

13 are available to subsidize gross obligations for the prin14 cipal amount of direct loans not to exceed $70,000.

15 In addition, for administrative expenses to carry out

16 the direct loan program, $54,000, which shall be trans17 ferred from the ‘‘General post fund’’, as authorized by

18 Public Law 102–54, section 8.

19 DEPARTMENTAL ADMINISTRATION

20 GENERAL OPERATING EXPENSES

21 For necessary operating expenses of the Department

22 of Veterans Affairs, not otherwise provided for, including

23 uniforms or allowances therefor; not to exceed $25,000 for

24 official reception and representation expenses; hire of pas25 senger motor vehicles; and reimbursement of the General
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1 Services Administration for security guard services, and

2 the Department of Defense for the cost of overseas em3 ployee mail; Ω7æ$823,584,000 $813,730,000: Provided

4 Ω8æfurther, That during fiscal year 1997, notwithstanding

5 any other provision of law, the number of individuals em6 ployed by the Department of Veterans Affairs (1) in other

7 than ‘‘career appointee’’ positions in the Senior Executive

8 Service shall not exceed 6, and (2) in schedule C positions

9 shall not exceed 11: Provided further, That funds under

10 this heading shall be available to administer the Service

11 Members Occupational Conversion and Training Act.

12 NATIONAL CEMETERY SYSTEM

13 For necessary expenses for the maintenance and op14 eration of the National Cemetery System, not otherwise

15 provided for, including uniforms or allowances therefor;

16 cemeterial expenses as authorized by law; purchase of two

17 passenger motor vehicles for use in cemeterial operations;

18 and hire of passenger motor vehicles, $76,864,000.

19 OFFICE OF INSPECTOR GENERAL

20 For necessary expenses of the Office of Inspector

21 General in carrying out the Inspector General Act of 1978,

22 as amended, $30,900,000.

23 CONSTRUCTION, MAJOR PROJECTS

24 For constructing, altering, extending and improving

25 any of the facilities under the jurisdiction or for the use
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1 of the Department of Veterans Affairs, or for any of the

2 purposes set forth in sections 316, 2404, 2406, 8102,

3 8103, 8106, 8108, 8109, 8110, and 8122 of title 38, Unit4 ed States Code, including planning, architectural and en5 gineering services, maintenance or guarantee period serv6 ices costs associated with equipment guarantees provided

7 under the project, services of claims analysts, offsite utility

8 and storm drainage system construction costs, and site ac9 quisition, where the estimated cost of a project is

10 $3,000,000 or more or where funds for a project were

11 made available in a previous major project appropriation,

12 Ω9æ$245,358,000 $178,250,000, to remain available until

13 expended: Provided, That except for advance planning of

14 projects funded through the advance planning fund and

15 the design of projects funded through the design fund,

16 none of these funds shall be used for any project which

17 has not been considered and approved by the Congress in

18 the budgetary process: Provided further, That funds pro19 vided in this appropriation for fiscal year 1997, for each

20 approved project shall be obligated (1) by the awarding

21 of a construction documents contract by September 30,

22 1997, and (2) by the awarding of a construction contract

23 by September 30, 1998: Provided further, That the Sec24 retary shall promptly report in writing to the Comptroller

25 General and to the Committees on Appropriations any ap-
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1 proved major construction project in which obligations are

2 not incurred within the time limitations established above;

3 and the Comptroller General shall review the report in ac4 cordance with the procedures established by section 1015

5 of the Impoundment Control Act of 1974 (title X of Public

6 Law 93–344): Provided further, That no funds from any

7 other account except the ‘‘Parking revolving fund’’, may

8 be obligated for constructing, altering, extending, or im9 proving a project which was approved in the budget proc10 ess and funded in this account until one year after sub11 stantial completion and beneficial occupancy by the De12 partment of Veterans Affairs of the project or any part

13 thereof with respect to that part only.

14 CONSTRUCTION, MINOR PROJECTS

15 For constructing, altering, extending, and improving

16 any of the facilities under the jurisdiction or for the use

17 of the Department of Veterans Affairs, including plan18 ning, architectural and engineering services, maintenance

19 or guarantee period services costs associated with equip20 ment guarantees provided under the project, services of

21 claims analysts, offsite utility and storm drainage system

22 construction costs, and site acquisition, or for any of the

23 purposes set forth in sections 316, 2404, 2406, 8102,

24 8103, 8106, 8108, 8109, 8110, and 8122 of title 38, Unit25 ed States Code, where the estimated cost of a project is
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1 less than $3,000,000; Ω10æ$160,000,000 $190,000,000, to

2 remain available until expended, along with unobligated

3 balances of previous ‘‘Construction, minor projects’’ ap4 propriations which are hereby made available for any

5 project where the estimated cost is less than $3,000,000:

6 Provided, That funds in this account shall be available for

7 (1) repairs to any of the nonmedical facilities under the

8 jurisdiction or for the use of the Department which are

9 necessary because of loss or damage caused by any natural

10 disaster or catastrophe, and (2) temporary measures nec11 essary to prevent or to minimize further loss by such

12 causes.

13 PARKING REVOLVING FUND

14 For the parking revolving fund as authorized by 38

15 U.S.C. 8109, Ω11æ$12,300,000, together with income

16 from fees collected, to remain available until expended,

17 which shall be available for all authorized expenses except

18 operations and maintenance costs, which will be funded

19 from ‘‘Medical care’’.

20 GRANTS FOR CONSTRUCTION OF STATE EXTENDED CARE

21 FACILITIES

22 For grants to assist States to acquire or construct

23 State nursing home and domiciliary facilities and to re24 model, modify or alter existing hospital, nursing home and

25 domiciliary facilities in State homes, for furnishing care
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1 to veterans as authorized by 38 U.S.C. 8131–8137,

2 $47,397,000, to remain available until expended.

3 GRANTS FOR THE CONSTRUCTION OF STATE VETERANS

4 CEMETERIES

5 For grants to aid States in establishing, expanding,

6 or improving State veteran cemeteries as authorized by 38

7 U.S.C. 2408, $1,000,000, to remain available until ex8 pended.

9 FRANCHISE FUND

10 (INCLUDING TRANSFER OF FUNDS)

11 There is hereby established in the Treasury a fran12 chise fund pilot, as authorized by section 403 of Public

13 Law 103–356, to be available as provided in such section

14 for expenses and equipment necessary for the maintenance

15 and operation of such administrative services as the Sec16 retary determines may be performed more advantageously

17 as central services: Provided, That any inventories, equip18 ment and other assets pertaining to the services to be pro19 vided by the franchise fund, either on hand or on order,

20 less the related liabilities or unpaid obligations, and any

21 appropriations made hereafter for the purpose of provid22 ing capital, shall be used to capitalize the franchise fund:

23 Provided further, That the franchise fund may be paid in

24 advance from funds available to the Department and other

25 Federal agencies for which such centralized services are

26 performed, at rates which will return in full all expenses
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1 of operation, including accrued leave, depreciation of fund

2 plant and equipment, amortization of automated data

3 processing (ADP) software and systems (either acquired

4 or donated), and an amount necessary to maintain a rea5 sonable operating reserve, as determined by the Secretary:

6 Provided further, That the franchise fund shall provide

7 services on a competitive basis: Provided further, That an

8 amount not to exceed four percent of the total annual in9 come to such fund may be retained in the fund for fiscal

10 year 1997 and each fiscal year thereafter, to remain avail11 able until expended, to be used for the acquisition of cap12 ital equipment and for the improvement and implementa13 tion of Departmental financial management, ADP, and

14 other support systems: Provided further, That no later

15 than thirty days after the end of each fiscal year amounts

16 in excess of this reserve limitation shall be transferred to

17 the Treasury: Provided further, That such franchise fund

18 pilot shall terminate pursuant to section 403(f) of Public

19 Law 103–356.

20 ADMINISTRATIVE PROVISIONS

21 (INCLUDING TRANSFER OF FUNDS)

22 SEC. 101. Any appropriation for 1997 for ‘‘Com23 pensation and pensions’’, ‘‘Readjustment benefits’’, and

24 ‘‘Veterans insurance and indemnities’’ may be transferred

25 to any other of the mentioned appropriations.
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1 SEC. 102. Appropriations available to the Depart2 ment of Veterans Affairs for 1997 for salaries and ex3 penses shall be available for services authorized by 5

4 U.S.C. 3109.

5 SEC. 103. No appropriations in this Act for the De6 partment of Veterans Affairs (except the appropriations

7 for ‘‘Construction, major projects’’, ‘‘Construction, minor

8 projects’’, and the ‘‘Parking revolving fund’’) shall be

9 available for the purchase of any site for or toward the

10 construction of any new hospital or home.

11 SEC. 104. No appropriations in this Act for the De12 partment of Veterans Affairs shall be available for hos13 pitalization or examination of any persons (except bene14 ficiaries entitled under the laws bestowing such benefits

15 to veterans, and persons receiving such treatment under

16 5 U.S.C. 7901–7904 or 42 U.S.C. 5141–5204), unless re17 imbursement of cost is made to the ‘‘Medical care’’ ac18 count at such rates as may be fixed by the Secretary of

19 Veterans Affairs.

20 SEC. 105. Appropriations available to the Depart21 ment of Veterans Affairs for fiscal year 1997 for ‘‘Com22 pensation and pensions’’, ‘‘Readjustment benefits’’, and

23 ‘‘Veterans insurance and indemnities’’ shall be available

24 for payment of prior year accrued obligations required to
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1 be recorded by law against the corresponding prior year

2 accounts within the last quarter of fiscal year 1996.

3 SEC. 106. Appropriations accounts available to the

4 Department of Veterans Affairs for fiscal year 1997 shall

5 be available to pay prior year obligations of corresponding

6 prior year appropriations accounts resulting from title X

7 of the Competitive Equality Banking Act, Public Law

8 100–86, except that if such obligations are from trust

9 fund accounts they shall be payable from ‘‘Compensation

10 and pensions’’.

11 SEC. 107. Notwithstanding any other provision of

12 law, during fiscal year 1997, the Secretary of Veterans

13 Affairs shall, from the National Service Life Insurance

14 Fund (38 U.S.C. 1920), the Veterans’ Special Life Insur15 ance Fund (38 U.S.C. 1923), and the United States Gov16 ernment Life Insurance Fund (38 U.S.C. 1955), reim17 burse the ‘‘General operating expenses’’ account for the

18 cost of administration of the insurance programs financed

19 through those accounts: Provided, That reimbursement

20 shall be made only from the surplus earnings accumulated

21 in an insurance program in fiscal year 1997, that are

22 available for dividends in that program after claims have

23 been paid and actuarially determined reserves have been

24 set aside: Provided further, That if the cost of administra25 tion of an insurance program exceeds the amount of sur-
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1 plus earnings accumulated in that program, reimburse2 ment shall be made only to the extent of such surplus

3 earnings: Provided further, That the Secretary shall deter4 mine the cost of administration for fiscal year 1997, which

5 is properly allocable to the provision of each insurance pro6 gram and to the provision of any total disability income

7 insurance included in such insurance program.

8 Ω12æSEC. 108. (a) The Secretary of Veterans Affairs

9 may convey, without consideration, to the City of Tusca10 loosa, Alabama (in this section referred to as the ‘‘City’’),

11 all right, title, and interest of the United States in and to

12 a parcel of real property, including any improvements

13 thereon, in the northwest quarter of section 28, township

14 21 south, range 9 west, of Tuscaloosa County, Alabama,

15 comprising a portion of the grounds of the Department of

16 Veterans Affairs medical center, Tuscaloosa, Alabama, and

17 consisting of approximately 9.42 acres, more or less.

18 (b) The conveyance under subsection (a) shall be sub19 ject to the condition that the City use the real property con20 veyed under that subsection in perpetuity solely for public

21 park or recreational purposes.

22 (c) The exact acreage and legal description of the real

23 property to be conveyed pursuant to this section shall be

24 determined by a survey satisfactory to the Secretary of Vet-
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1 erans Affairs. The cost of such survey shall be borne by the

2 City.

3 (d) The Secretary of Veterans Affairs may require such

4 additional terms and conditions in connection with the con5 veyance under this section as the Secretary considers appro6 priate to protect the interests of the United States.

7 TITLE II

8 DEPARTMENT OF HOUSING AND URBAN

9 DEVELOPMENT

10 HOUSING PROGRAMS

11 Ω13æANNUAL CONTRIBUTIONS FOR ASSISTED HOUSING

12 (INCLUDING RESCISSION)

13 For assistance under the United States Housing Act

14 of 1937, as amended (the ‘‘Act’’ herein) (42 U.S.C. 1437),

15 not otherwise provided for, $5,272,000,000 (reduced by

16 $140,000,000), to remain available until expended: Pro17 vided, That of the total amount provided under this head,

18 $4,472,000,000 shall be for assistance under the United

19 States Housing Act of 1937 (42 U.S.C. 1437) for use in

20 connection with expiring or terminating section 8 subsidy

21 contracts of which $875,000,000 shall be available on Sep22 tember 15, 1997: Provided further, That the Secretary

23 may determine not to apply section 8(o)(6)(B) of the Act

24 to housing vouchers during fiscal year 1997: Provided fur25 ther, That of the total amount provided under this head,
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1 $800,000,000 (reduced by $140,000,000) shall be for

2 amendments to section 8 contracts other than contracts

3 for projects developed under section 202 of the Housing

4 Act of 1959, as amended: Provided further, That 50 per

5 centum of the amounts of budget authority, or in lieu

6 thereof 50 per centum of the cash amounts associated with

7 such budget authority, that are recaptured from projects

8 described in section 1012(a) of the Stewart B. McKinney

9 Homeless Assistance Amendments Act of 1988 (Public

10 Law 100–628, 102 Stat. 3224, 3268) shall be rescinded,

11 or in the case of cash, shall be remitted to the Treasury,

12 and such amounts of budget authority or cash recaptured

13 and not rescinded or remitted to the Treasury shall be

14 used by State housing finance agencies or local govern15 ments or local housing agencies with projects approved by

16 the Secretary of Housing and Urban Development for

17 which settlement occurred after January 1, 1992, in ac18 cordance with such section.

19 HOUSING FOR SPECIAL POPULATIONS: ELDERLY AND

20 DISABLED

21 For capital advances, including amendments to cap22 ital advance contracts, and for project rental assistance

23 and amendments thereto, for Supportive Housing for the

24 Elderly under section 202 of the Housing Act of 1959,

25 as amended, $595,000,000 (increased by $100,000,000),

26 to remain available until expended.
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1 For capital advances, including amendments to cap2 ital advance contracts, and for project rental assistance

3 and amendments thereto, for Supportive Housing for Per4 sons with Disabilities under section 811 of the Cranston5 Gonzalez National Affordable Housing Act, $174,000,000

6 (increased by $40,000,000), to remain available until ex7 pended, of which 25 percent shall be used for tenant-based

8 rental assistance under section 8(o) of the United States

9 Housing Act of 1937 (42 U.S.C. 1437(o)), in addition to

10 any other amounts available for section 8(o).

11 The Secretary may waive any provision of section 202

12 of the Housing Act of 1959 and section 811 of the Cran13 ston-Gonzalez National Affordable Housing Act (including

14 the provisions governing the terms and conditions of

15 project rental assistance) that the Secretary determines is

16 not necessary to achieve the objectives of these programs,

17 or that otherwise impedes the ability to develop, operate

18 or administer projects assisted under these programs, and

19 may make provision for alternative conditions or terms

20 where appropriate.

21 FLEXIBLE SUBSIDY FUND

22 (INCLUDING TRANSFER OF FUNDS)

23 From the fund established by section 236(g) of the

24 National Housing Act, as amended, all uncommitted bal25 ances of excess rental charges as of September 30, 1996,
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1 and any collection during fiscal year 1997, shall be trans2 ferred, as authorized under such section, to the fund au3 thorized under section 201(j) of the Housing and Commu4 nity Development Amendments of 1978, as amended.

5 RENTAL HOUSING ASSISTANCE

6 (RESCISSION)

7 The limitation otherwise applicable to the maximum

8 payments that may be required in any fiscal year by all

9 contracts entered into under section 236 of the National

10 Housing Act (12 U.S.C. 1715z–1) is reduced in fiscal year

11 1997 by not more than $2,000,000 in uncommitted bal12 ances of authorizations provided for this purpose in appro13 priations Acts.

14 PUBLIC AND INDIAN HOUSING

15 HOUSING CERTIFICATE FUND

16 For tenant-based assistance under section 8 of the

17 United States Housing Act of 1937 (42 U.S.C. 1437f),

18 as amended, $166,000,000, to remain available until ex19 pended: Provided, That of the total amount provided

20 under this head, $50,000,000 shall be for nonelderly dis21 abled families relocating pursuant to designation of a pub22 lic housing development under section 7 of such Act: Pro23 vided further, That the remainder of the amount provided

24 under this head shall be used only for housing assistance

25 for relocating residents of properties (i) that are eligible
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1 for assistance under the Low Income Housing Preserva2 tion and Resident Homeownership Act of 1990

3 (LIHPRHA) or the Emergency Low-Income Housing

4 Preservation Act of 1987 (ELIHPA) in accordance with

5 the terms and conditions of the tenth and eleventh provi6 sos of the second undesignated paragraph under the head

7 ‘‘Annual Contributions for Assisted Housing’’ in Public

8 Law 104–134; (ii) that are owned by the Secretary and

9 being disposed of; (iii) for which section 8 assistance is

10 allocated under subsection (f) of section 204 of this Act

11 (relating to portfolio reengineering); or (iv) subject to spe12 cial workout assistance team intervention compliance ac13 tions: Provided further, That notwithstanding any other

14 provision of law, a public housing agency administering

15 certificate or voucher assistance provided under subsection

16 (b) or (o) of section 8 of the United States Housing Act

17 of 1937, as amended, shall delay for 3 months, the use

18 of any amounts of such assistance (or the certificate or

19 voucher representing assistance amounts) made available

20 by the termination during fiscal year 1997 of such assist21 ance on behalf of any family for any reason, but not later

22 than October 1, 1997, with the exception of any certifi23 cates assigned or committed to project-based assistance as

24 permitted otherwise by the Act, accomplished prior to the

25 effective date of this Act: Provided further, That section
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1 8(c)(2)(A) of the United States Housing Act of 1937, as

2 amended (42 U.S.C. 1437f(c)(2)(A)) is further amend3 ed—

4 (1) in the third sentence by inserting ‘‘and fis5 cal year 1997’’ after ‘‘1995’’; and

6 (2) in the last sentence by inserting ‘‘and fiscal

7 year 1997’’ after ‘‘1995’’.

8 PUBLIC HOUSING OPERATING FUND

9 For payments to public housing agencies and Indian

10 housing authorities for operating subsidies for low-income

11 housing projects as authorized by section 9 of the United

12 States Housing Act of 1937, as amended (42 U.S.C.

13 1437g), $2,850,000,000.

14 PUBLIC HOUSING CAPITAL FUND

15 (INCLUDING TRANSFERS OF FUNDS)

16 For the Public Housing Capital Fund program under

17 the United States Housing Act of 1937, as amended (42

18 U.S.C. 1437), $2,700,000,000, to remain available until

19 expended, of which $2,415,000,000 shall be for mod20 ernization of existing public housing projects;

21 $200,000,000 for Indian Housing Development;

22 $50,000,000 for grants to public housing agencies (includ23 ing Indian housing authorities), nonprofit corporations,

24 and other appropriate entities for a supportive services

25 program to assist residents of public and assisted housing,
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1 former residents of such housing receiving tenant-based

2 assistance under section 8 of such Act, and other low-in3 come families and individuals, principally for the benefit

4 of public housing residents, to become self-sufficient;

5 $20,000,000 for technical assistance for the inspection of

6 public housing units, contract expertise, and training and

7 technical assistance directly or indirectly, under grants,

8 contracts, or cooperative agreements, to assist in the over9 sight and management of public and Indian housing

10 (whether or not the housing is being modernized with as11 sistance under this proviso) or tenant-based assistance, in12 cluding, but not limited to, an annual resident survey,

13 data collection and analysis, training and technical assist14 ance by or to officials and employees of the department

15 and of public housing agencies and to residents in connec16 tion with the public and Indian housing program or for

17 carrying out activities under section 6(j) of the Act;

18 $10,000,000 for the Tenant Opportunity Program; and

19 $5,000,000 for the Jobs-Plus Demonstration for Public

20 Housing families: Provided, That all obligated and unobli21 gated balances as of the end of fiscal year 1996 heretofore

22 provided for the development or acquisition costs of public

23 housing (including public housing for Indian families), for

24 modernization of existing public housing projects (includ25 ing such projects for Indian families), for public and In-
26

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1 dian housing amendments, for modernization and develop2 ment technical assistance, for lease adjustments for the

3 section 23 program, and for the Family Investment Cen4 ters program shall be transferred to amounts made avail5 able under this heading.

6 REVITALIZATION OF SEVERELY DISTRESSED PUBLIC

7 HOUSING (HOPE VII)

8 For grants to public housing agencies for assisting

9 in the demolition of obsolete public housing projects or

10 portions thereof, the revitalization (where appropriate) of

11 sites (including remaining public housing units) on which

12 such projects are located, replacement housing which will

13 avoid or lessen concentrations of very low-income families,

14 and tenant-based assistance in accordance with section 8

15 of the United States Housing Act of 1937; and for provid16 ing replacement housing and assisting tenants to be dis17 placed by the demolition, $550,000,000, to remain avail18 able until expended, of which the Secretary may use up

19 to $2,500,000 for technical assistance, to be provided di20 rectly or indirectly by grants, contracts or cooperative

21 agreements, including training and cost of necessary travel

22 for participants in such training, by or to officials and em23 ployees of the Department and of public housing agencies

24 and to residents: Provided, That, notwithstanding any

25 other provision of law, the funds made available to the

26 Housing Authority of New Orleans under HOPE VI for
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1 purposes of Desire Homes, shall not be obligated or ex2 pended for on-site construction until an independent third

3 party has determined whether the site is appropriate.

4 DRUG ELIMINATION GRANTS FOR LOW-INCOME HOUSING

5 (INCLUDING TRANSFER OF FUNDS)

6 For grants to public and Indian housing agencies for

7 use in eliminating crime in public housing projects author8 ized by 42 U.S.C. 11901–11908, for grants for federally

9 assisted low-income housing authorized by 42 U.S.C.

10 11909, and for drug information clearinghouse services

11 authorized by 42 U.S.C. 11921–11925, $290,000,000, to

12 remain available until expended, $10,000,000 of which

13 shall be for grants, technical assistance, contracts and

14 other assistance training, program assessment, and execu15 tion for or on behalf of public housing agencies and resi16 dent organizations (including the cost of necessary travel

17 for participants in such training), $5,000,000 of which

18 shall be used in connection with efforts to combat violent

19 crime in public and assisted housing under the Operation

20 Safe Home program administered by the Inspector Gen21 eral of the Department of Housing and Urban Develop22 ment, and $5,000,000 of which shall be transferred to the

23 Office of Inspector General for Operation Safe Home: Pro24 vided, That the term ‘‘drug-related crime’’, as defined in
28

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1 42 U.S.C. 11905(2), shall also include other types of

2 crime as determined by the Secretary.

3 Ω14æDEVELOPMENT OF ADDITIONAL NEW SUBSIDIZED

4 HOUSING

5 For assistance for the purchase, construction, acquisi6 tion, or development of additional public and subsidized

7 housing units for low income families under the United

8 States Housing Act of 1937, as amended (‘‘the Act’’ herein)

9 (42 U.S.C. 1437), not otherwise provided for, $969,464,442,

10 to remain available until expended: Provided, That of the

11 total amount provided under this head, $595,000,000 shall

12 be for capital advances, including amendments to capital

13 advance contracts, for housing for the elderly, as authorized

14 by section 202 of the Housing Act of 1959, as amended,

15 and for project rental assistance, and amendments to con16 tracts for project rental assistance, for supportive housing

17 for the elderly under section 202(c)(2) of the Housing Act

18 of 1959; and $174,000,000 shall be for capital advances,

19 including amendments to capital advance contracts, for

20 supportive housing for persons with disabilities, as author21 ized by section 811 of the Cranston-Gonzalez National Af22 fordable Housing Act; and for project rental assistance, and

23 amendments to contracts for project rental assistance, for

24 supportive housing for persons with disabilities as author25 ized by section 811 of the Cranston-Gonzalez National Af-
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1 fordable Housing Act: Provided further, That the Secretary

2 may designate up to 25 percent of the amounts earmarked

3 under this paragraph for section 811 of the Cranston-Gon4 zalez National Affordable Housing Act for tenant-based as5 sistance, as authorized under that section, which assistance

6 is five years in duration: Provided further, That the Sec7 retary may waive any provision of section 202 of the Hous8 ing Act of 1959 and section 811 of the National Affordable

9 Housing Act (including the provisions governing the terms

10 and conditions of project rental assistance and tenant-based

11 assistance) that the Secretary determines is not necessary

12 to achieve the objectives of these programs, or that otherwise

13 impedes the ability to develop, operate or administer

14 projects assisted under these programs, and may make pro15 vision for alternative conditions or terms where appro16 priate: Provided further, That of the total amount provided

17 under this head, $200,000,000 shall be for the development

18 or acquisition cost of public housing for Indian families,

19 including amounts for housing under the mutual help

20 homeownership opportunity program under section 202 of

21 the Act (42 U.S.C. 1437bb): Provided further, That of the

22 total amount provided under this head, the Secretary shall

23 provide $464,442 to the Utah Housing Finance Agency, in

24 lieu of amounts lost to such agency in bond refinancings
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1 during 1994, for its use in accordance with the immediately

2 preceding proviso.

3 PREVENTION OF RESIDENT DISPLACEMENT

4 For activities and assistance to prevent the involun5 tary displacement of low-income families, the elderly and

6 the disabled because of the loss of affordable housing stock,

7 expiration of subsidy contracts or expiration of use restric8 tions, or other changes in housing assistance arrangements,

9 $4,775,000,000, to remain available until expended: Pro10 vided, That of the total amount provided under this head,

11 $3,800,000,000 shall be for assistance under the United

12 States Housing Act of 1937 (42 U.S.C. 1437) for use in

13 connection with expiring or terminating section 8 subsidy

14 contracts: Provided further, That the Secretary may deter15 mine not to apply section 8(o)(6)(B) of the Act to housing

16 vouchers during fiscal year 1997: Provided further, That

17 of the total amount provided under this head, $800,000,000

18 shall be for amendments to section 8 contracts other than

19 contracts for projects developed under section 202 of the

20 Housing Act of 1959, as amended: Provided further, That

21 of the total amount provided under this head, $175,000,000

22 shall be for assistance under the United States Housing Act

23 of 1937 (42 U.S.C. 1437) for nonelderly disabled families

24 relocating pursuant to designation of a public housing de25 velopment under section 7 of such Act, for a demonstration

26 linking housing assistance to State welfare reform initia-
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1 tives to help families make the transition from welfare to

2 work and for housing assistance for relocating residents of

3 properties (i) that are owned by the Secretary and being

4 disposed of; (ii) that are discontinuing section 8 project5 based assistance; or (iii) subject to special workout assist6 ance team intervention compliance actions: Provided, That

7 of the total amount made available under this head,

8 $50,000,000 shall be made available to nonelderly disabled

9 families affected by the designation of a public housing de10 velopment under section 7 of such Act or the establishment

11 of preferences in accordance with section 651 of the Housing

12 and Community Development Act of 1992 (42 U.S.C.

13 13611).

14 PRESERVING EXISTING HOUSING INVESTMENT

15 For operating, maintaining, revitalizing, rehabilitat16 ing, preserving, and protecting existing housing develop17 ments for low income families, the elderly and the disabled,

18 $6,740,000,000, to remain available until expended: Pro19 vided, That of the total amount made available under this

20 head, $2,900,000,000 shall be available for payments to

21 public housing agencies and Indian housing authorities for

22 operating subsidies for low-income housing projects as au23 thorized by section 9 of the United States Housing Act of

24 1937, as amended (42 U.S.C. 1437g): Provided further,

25 That of the total amount made available under this head,

26 $2,500,000,000 shall be available for modernization of exist-
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1 ing public housing projects as authorized under section 14

2 of the United States Housing Act of 1937, as amended (42

3 U.S.C. 1437l): Provided further, That of the total amount

4 made available under this head, $550,000,000 shall be for

5 grants to public housing agencies for assisting in the demo6 lition of obsolete public housing projects or portions thereof,

7 the revitalization (where appropriate) of sites (including re8 maining public housing units) on which such projects are

9 located, replacement housing which will avoid or lessen con10 centrations of very low-income families, and tenant-based

11 assistance in accordance with section 8 of the United States

12 Housing Act of 1937; and for providing replacement hous13 ing and assisting tenants to be displaced by the demolition,

14 of which the Secretary may use up to $2,500,000 for tech15 nical assistance, to be provided directly or indirectly by

16 grants, contracts or cooperative agreements, including

17 training and cost of necessary travel for participants in

18 such training, by or to officials and employees of the De19 partment and of public housing agencies and to residents:

20 Provided further, That of the total amount provided under

21 this head, $500,000,000 shall be available for use in con22 junction with properties that are eligible for assistance

23 under the Low Income Housing Preservation and Resident

24 Homeownership Act of 1990 (LIHPRHA) or the Emergency

25 Low-Income Housing Preservation Act of 1987 (ELIHPA):
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1 Provided further, That amounts recaptured from interest

2 reduction payment contracts for section 236 projects whose

3 owners prepay their mortgages during fiscal year 1997 shall

4 be rescinded: Provided further, That the Secretary may con5 tinue to impose a moratorium on the acceptance of initial

6 notices of intent by potential recipients of such funding:

7 Provided further, That funding shall be limited to: (1) ten8 ant-based assistance under the terms of the tenth and elev9 enth provisos of the second undesignated paragraph under

10 the ‘‘Annual Contributions for Assisted Housing’’ head of

11 the Departments of Veterans Affairs and Housing and

12 Urban Development, and Independent Agencies Appropria13 tions Act, 1996; (2) plans of action for sales of projects to

14 nonprofit organizations, tenant-sponsored organizations

15 and other priority purchasers; (3) projects that are subject

16 to a repayment or settlement agreement that was executed

17 between the owner and the Secretary prior to September

18 1, 1995; (4) projects for which submissions were delayed

19 as a result of their location in areas that were designated

20 as a Federal disaster area in a Presidential Disaster Dec21 laration; and (5) projects whose processing was, in fact, or

22 in practical effect, suspended, deferred, or interrupted for

23 a period of nine months or more because of differing inter24 pretations, by the Secretary and an owner concerning the

25 timing of the ability of an uninsured section 236 property
34

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1 to prepay or by the Secretary and a State or local rent

2 regulatory agency, concerning the effect of a presumptively

3 applicable State or local rent control law or regulation on

4 the determination of preservation value under section 213

5 of LIHPRHA, as amended, if the owner of such project filed

6 a notice of intent to extend the low-income affordability re7 strictions of the housing, or transfer to a qualified pur8 chaser who would extend such restrictions, on or before No9 vember 1, 1993: Provided further, That priority shall be

10 given to funding tenant-based assistance under the terms

11 of the tenth and eleventh provisos of the second undesignated

12 paragraph under the ‘‘Annual Contributions for Assisted

13 Housing’’ head of the Departments of Veterans Affairs and

14 Housing and Urban Development, and Independent Agen15 cies Appropriations Act, 1996, and plans of action for sales

16 of projects to nonprofit organizations, tenant-sponsored or17 ganizations, and other priority purchasers: Provided fur18 ther, That the Secretary may give priority to funding ap19 proved plans of action for the following projects: (1) projects

20 that are subject to a repayment or settlement agreement that

21 was executed between the owner and the Secretary prior to

22 September 1, 1995; (2) projects for which submissions were

23 delayed as a result of their location in areas that were des24 ignated as a Federal disaster area in a Presidential Disas25 ter Declaration; and (3) projects whose processing was, in
35

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1 fact, or in practical effect, suspended, deferred, or inter2 rupted for a period of nine months or more because of differ3 ing interpretations, by the Secretary and an owner concern4 ing the timing of the ability of an uninsured section 236

5 property to prepay or by the Secretary and a State or local

6 rent regulatory agency, concerning the effect of a presump7 tively applicable State or local rent control law or regula8 tion on the determination of preservation value under sec9 tion 213 of LIHPRHA, as amended, if the owner of such

10 project filed a notice of intent to extend the low-income af11 fordability restrictions of the housing, or transfer to a quali12 fied purchaser who would extend such restrictions, on or

13 before November 1, 1993: Provided further, That section

14 241(f) of the National Housing Act is repealed and insur15 ance under such section shall not be offered as an incentive

16 under LIHPRHA and ELIHPA: Provided further, That a

17 capital loan may be provided as an incentive under

18 LIHPRHA or ELIHPA on such terms and conditions as

19 the Secretary may prescribe: Provided further, That the fol20 lowing provisos under the second undesignated heading

21 under the ‘‘Annual Contributions for Assisted Housing’’

22 head of the Departments of Veterans Affairs and Housing

23 and Urban Development, and Independent Agencies Appro24 priations Act, 1996 shall continue in effect: the fourth pro25 viso, the sixth proviso, the seventh proviso, the ninth pro-
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1 viso, the tenth proviso, the eleventh proviso, and the twelfth

2 proviso: Provided further, That notwithstanding any other

3 provision of law, effective October 1, 1997, the Secretary

4 shall suspend further funding of plans of action: Provided

5 further, That of the total amount provided under this head

6 $290,000,000 shall be for grants to public and Indian hous7 ing agencies for use in eliminating crime in public housing

8 projects authorized by 42 U.S.C. 11901–11908, for grants

9 for federally assisted low-income housing authorized by 42

10 U.S.C. 11909, and for drug information clearinghouse serv11 ices authorized by 42 U.S.C. 11921–11925, of which

12 $10,000,000 shall be for grants, technical assistance, con13 tracts and other assistance training, program assessment,

14 and execution for or on behalf of public housing agencies

15 and resident organizations (including the cost of necessary

16 travel for participants in such training), up to $5,000,000

17 of which may be used in connection with efforts to combat

18 violent crime in public and assisted housing under the Op19 eration Safe Home program administered by the Inspector

20 General of the Department of Housing and Urban Develop21 ment, and up to $5,000,000 of which may be provided to

22 the Office of Inspector General for Operation Safe Home:

23 Provided further, That the term ‘‘drug-related crime’’, as

24 defined in 42 U.S.C. 11905(2), shall also include other types

25 of crime as determined by the Secretary: Provided further,
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1 That notwithstanding section 5130(c) of the Anti-Drug

2 Abuse Act of 1988 (42 U.S.C. 11909(c)), the Secretary may

3 determine not to use any such funds to provide public hous4 ing youth sports grants.

5 INDIAN HOUSING LOAN GUARANTEE FUND PROGRAM

6 ACCOUNT

7 For the cost of guaranteed loans, as authorized by

8 section 184 of the Housing and Community Development

9 Act of 1992 (106 Stat. 3739), $3,000,000: Provided, That

10 such costs, including the costs of modifying such loans,

11 shall be as defined in section 502 of the Congressional

12 Budget Act of 1974, as amended: Provided further, That

13 these funds are available to subsidize total loan principal,

14 any part of which is to be guaranteed, not to exceed

15 $36,900,000.

16 COMMUNITY PLANNING AND DEVELOPMENT

17 COMMUNITY DEVELOPMENT BLOCK GRANTS FUND

18 (INCLUDING TRANSFER OF FUNDS)

19 For grants to States and units of general local gov20 ernment and for related expenses, not otherwise provided

21 for, to carry out a community development grants pro22 gram as authorized by title I of the Housing and Commu23 nity Development Act of 1974, as amended (the ‘‘Act’’

24 herein) (42 U.S.C. 5301), $4,600,000,000, to remain

25 available until September 30, 1999, Ω15æof which
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1 $300,000,000 shall become available for obligation on

2 September 30, 1997, and of which Ω16æ$61,400,000

3 $68,500,000 shall be for grants to Indian tribes notwith4 standing section 106(a)(1) of the Act: Provided, That

5 $2,100,000 shall be available as a grant to the Housing

6 Assistance Council, Ω17æ$1,000,000 $1,500,000 shall be

7 available as a grant to the National American Indian

8 Housing Council, and $49,000,000 shall be available for

9 grants pursuant to section 107 of such Act, including up

10 to $14,000,000 for the development and operation of a

11 management information system: Provided further, That

12 not to exceed 20 percent of any grant made with funds

13 appropriated herein (other than a grant made available

14 under the preceding proviso to the Housing Assistance

15 Council or the National American Indian Housing Coun16 cil, or a grant using funds under section 107(b)(3) of the

17 Housing and Community Development Act of 1974, as

18 amended) shall be expended for ‘‘Planning and Manage19 ment Development’’ and ‘‘Administration’’ as defined in

20 regulations promulgated by the Department: Provided fur21 ther, That for fiscal year 1997 and thereafter, section

22 105(a)(25) of such Act, shall continue to be effective and

23 the termination and conforming provisions of section

24 907(b)(2) of the Cranston-Gonzalez National Affordable

25 Housing Act shall not be effective: Provided further, That
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1 section 916(f) of the Cranston-Gonzalez National Afford2 able Housing Act is repealed.

3 Ω18æOf the amount provided under this heading, the

4 Secretary of Housing and Urban Development may use up

5 to $50,000,000 for grants to public housing agencies (in6 cluding Indian housing authorities), nonprofit corpora7 tions, and other appropriate entities for a supportive serv8 ices program to assist residents of public and assisted hous9 ing, former residents of such housing receiving tenant-based

10 assistance under section 8 of such Act (42 U.S.C. 1437f),

11 and other low-income families and individuals to become

12 self-sufficient: Provided, That the program shall provide

13 supportive services, principally for the benefit of public

14 housing residents, to the elderly and the disabled, and to

15 families with children where the head of household would

16 benefit from the receipt of supportive services and is work17 ing, seeking work, or is preparing for work by participating

18 in job training or educational programs: Provided further,

19 That the supportive services shall include congregate serv20 ices for the elderly and disabled, service coordinators, and

21 coordinated educational, training, and other supportive

22 services, including academic skills training, job search as23 sistance, assistance related to retaining employment, voca24 tional and entrepreneurship development and support pro25 grams, transportation, and child care: Provided further,
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1 That the Secretary shall require applications to dem2 onstrate firm commitments of funding or services from other

3 sources: Provided further, That the Secretary shall select

4 public and Indian housing agencies to receive assistance

5 under this head on a competitive basis, taking into account

6 the quality of the proposed program (including any innova7 tive approaches), the extent of the proposed coordination of

8 supportive services, the extent of commitments of funding

9 or services from other sources, the extent to which the pro10 posed program includes reasonably achievable, quantifiable

11 goals for measuring performance under the program over

12 a three-year period, the extent of success an agency has had

13 in carrying out other comparable initiatives, and other ap14 propriate criteria established by the Secretary.

15 Ω19æOf the amount made available under this head16 ing, notwithstanding any other provision of law,

17 $20,000,000 shall be available for grants to entities manag18 ing or operating public housing developments, federally-as19 sisted multifamily-housing developments, or other multi20 family-housing developments for low-income families sup21 ported by non-Federal governmental entities or similar

22 housing developments supported by nonprofit private

23 sources, to reimburse local law enforcement entities for ad24 ditional police presence in and around such housing devel25 opments; to provide or augment such security services by
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1 other entities or employees of the recipient agency; to assist

2 in the investigation and/or prosecution of drug related

3 criminal activity in and around such developments; and

4 to provide assistance for the development of capital im5 provements at such developments directly relating to the se6 curity of such developments: Provided, That such grants

7 shall be made on a competitive basis as specified in section

8 102 of the HUD Reform Act.

9 Of the amount made available under this heading,

10 notwithstanding any other provision of law,

11 Ω20æ$20,000,000 $40,000,000 shall be available for

12 youthbuild program activities authorized by subtitle D of

13 title IV of the Cranston-Gonzalez National Affordable

14 Housing Act, as amended, and such activities shall be an

15 eligible activity with respect to any funds made available

16 under this heading.

17 Of the amount made available under this heading,

18 notwithstanding any other provision of law, $60,000,000

19 shall be available for the lead-based paint hazard reduc20 tion program as authorized under sections 1011 and 1053

21 of the Residential Lead-Based Hazard Reduction Act of

22 1992.

23 For the cost of guaranteed loans, $31,750,000, as au24 thorized by section 108 of the Housing and Community

25 Development Act of 1974: Provided, That such costs, in-
42

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1 cluding the cost of modifying such loans, shall be as de2 fined in section 502 of the Congressional Budget Act of

3 1974, as amended: Provided further, That these funds are

4 available to subsidize total loan principal, any part of

5 which is to be guaranteed, not to exceed $1,500,000,000,

6 notwithstanding any aggregate limitation on outstanding

7 obligations guaranteed in section 108(k) of the Housing

8 and Community Development Act of 1974. In addition,

9 for administrative expenses to carry out the guaranteed

10 loan program, $675,000 which shall be transferred to and

11 merged with the appropriation for Ω21ædepartmental sala12 ries and expenses.

13 HOME INVESTMENT PARTNERSHIPS PROGRAM

14 For the HOME investment partnerships program, as

15 authorized under title II of the Cranston-Gonzalez Na16 tional Affordable Housing Act (Public Law 101–625), as

17 amended, $1,400,000,000, to remain available until ex18 pended: Provided, That $21,000,000 shall be available for

19 grants to Indian Tribes: Provided further, That up to 0.5

20 percent, but not less than $7,000,000, shall be available

21 for the development and operation of a management infor22 mation system: Provided further, That $15,000,000 shall

23 be available for Housing Counseling under section 106 of

24 the Housing and Urban Development Act of 1968.
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1 HOMELESS ASSISTANCE FUNDS

2 For the emergency shelter grants program (as au3 thorized under subtitle B of title IV of the Stewart B.

4 McKinney Homeless Assistance Act (Public Law 100–77),

5 as amended); the supportive housing program (as author6 ized under subtitle C of title IV of such Act); the section

7 8 moderate rehabilitation single room occupancy program

8 (as authorized under the United States Housing Act of

9 1937, as amended) to assist homeless individuals pursuant

10 to section 441 of the Stewart B. McKinney Homeless As11 sistance Act; and the shelter plus care program (as au12 thorized under subtitle F of title IV of such Act),

13 $823,000,000, to remain available until expended.

14 HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS

15 (INCLUDING TRANSFER OF FUNDS)

16 For carrying out the Housing Opportunities for Per17 sons with AIDS program, as authorized by the AIDS

18 Housing Opportunity Act (42 U.S.C. 12901),

19 $171,000,000, to remain available until expended: Pro20 vided, That any amounts previously appropriated for such

21 program, and any related assets and liabilities, in the ‘‘An22 nual contributions for assisted housing’’ account, shall be

23 transferred to and merged with amounts in this account.
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1 FEDERAL HOUSING ADMINISTRATION

2 FHA—MUTUAL MORTGAGE INSURANCE PROGRAM

3 ACCOUNT

4 (INCLUDING TRANSFERS OF FUNDS)

5 During fiscal year 1997, commitments to guarantee

6 loans to carry out the purposes of section 203(b) of the

7 National Housing Act, as amended, shall not exceed a loan

8 principal of $110,000,000,000: Provided, That during fis9 cal year 1997, the Secretary shall sell assigned mortgage

10 notes having an unpaid principal balance of up to

11 $2,000,000,000, which notes were originally insured under

12 section 203(b) of the National Housing Act: Provided fur13 ther, That the Secretary may use the amount of any nega14 tive subsidy resulting from the sale of such assigned mort15 gage notes during fiscal year 1997 for the purposes in16 cluded under this heading.

17 During fiscal year 1997, obligations to make direct

18 loans to carry out the purposes of section 204(g) of the

19 National Housing Act, as amended, shall not exceed

20 $200,000,000: Provided, That the foregoing amount shall

21 be for loans to nonprofit and governmental entities in con22 nection with sales of single family real properties owned

23 by the Secretary and formerly insured under section 203

24 of such Act.
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1 For administrative expenses necessary to carry out

2 the guaranteed and direct loan program,

3 Ω22æ$341,595,000 $350,595,000, to be derived from the

4 FHA-mutual mortgage insurance guaranteed loans receipt

5 account, of which not to exceed Ω23æ$334,483,000

6 $343,483,000 shall be transferred to the appropriation for

7 departmental salaries and expenses; and of which not to

8 exceed $7,112,000 shall be transferred to the appropria9 tion for the Office of Inspector General.

10 FHA—GENERAL AND SPECIAL RISK PROGRAM ACCOUNT

11 (INCLUDING TRANSFERS OF FUNDS)

12 For the cost of guaranteed loans, as authorized by

13 sections 238 and 519 of the National Housing Act (12

14 U.S.C. 1715z–3 and 1735c), including the cost of loan

15 guarantee modifications (as that term is defined in section

16 502 of the Congressional Budget Act of 1974, as amend17 ed) $85,000,0000, to remain available until expended:

18 Provided, That these funds are available to subsidize total

19 loan principal, any part of which is to be guaranteed, of

20 up to $17,400,000,000: Provided further, That during fis21 cal year 1997, the Secretary shall sell assigned notes hav22 ing an unpaid principal balance of up to $2,500,000,000,

23 which notes are held by the Secretary under the General

24 Insurance and Special Risk Insurance funds: Provided fur25 ther, That any amounts made available in any prior appro-
46

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1 priations Act for the cost (as such term is defined in sec2 tion 502 of the Congressional Budget Act of 1974) of

3 guaranteed loans that are obligations of the funds estab4 lished under section 238 or 519 of the National Housing

5 Act that have not been obligated or that are deobligated

6 shall be available to the Secretary of Housing and Urban

7 Development in connection with the making of such guar8 antees and shall remain available until expended, notwith9 standing the expiration of any period of availability other10 wise applicable to such amounts.

11 Gross obligations for the principal amount of direct

12 loans, as authorized by sections 204(g), 207(l), 238(a),

13 and 519(a) of the National Housing Act, shall not exceed

14 $120,000,000; of which not to exceed $100,000,000 shall

15 be for bridge financing in connection with the sale of mul16 tifamily real properties owned by the Secretary and for17 merly insured under such Act; and of which not to exceed

18 $20,000,000 shall be for loans to nonprofit and govern19 mental entities in connection with the sale of single-family

20 real properties owned by the Secretary and formerly in21 sured under such Act.

22 In addition, for administrative expenses necessary to

23 carry out the guaranteed and direct loan programs,

24 Ω24æ$202,470,000, of which $198,299,000 $207,470,000,

25 of which $203,299,000 shall be transferred to the appro-
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1 priation for Ω25ædepartmental salaries and expenses; and

2 of which $4,171,000 shall be transferred to the appropria3 tion for the Office of Inspector General.

4 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION

5 GUARANTEES OF MORTGAGE-BACKED SECURITIES LOAN

6 GUARANTEE PROGRAM ACCOUNT

7 (INCLUDING TRANSFER OF FUNDS)

8 During fiscal year 1997, new commitments to issue

9 guarantees to carry out the purposes of section 306 of the

10 National Housing Act, as amended (12 U.S.C. 1721(g)),

11 shall not exceed $110,000,000,000.

12 For administrative expenses necessary to carry out

13 the guaranteed mortgage-backed securities program,

14 Ω26æ$9,101,000 $9,383,000, to be derived from the

15 GNMA-guarantees of mortgage-backed securities guaran16 teed loan receipt account, of which not to exceed

17 Ω27æ$9,101,000 $9,383,000 shall be transferred to the ap18 propriation for Ω28ædepartmental salaries and expenses.

19 POLICY DEVELOPMENT AND RESEARCH

20 RESEARCH AND TECHNOLOGY

21 For contracts, grants, and necessary expenses of pro22 grams of research and studies relating to housing and

23 urban problems, not otherwise provided for, as authorized

24 by title V of the Housing and Urban Development Act

25 of 1970, as amended (12 U.S.C. 1701z–1 et seq.), includ-
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1 ing carrying out the functions of the Secretary under sec2 tion 1(a)(1)(i) of Reorganization Plan No. 2 of 1968,

3 $34,000,000, to remain available until September 30,

4 1998.

5 FAIR HOUSING AND EQUAL OPPORTUNITY

6 FAIR HOUSING ACTIVITIES

7 For contracts, grants, and other assistance, not oth8 erwise provided for, as authorized by title VIII of the Civil

9 Rights Act of 1968, as amended by the Fair Housing

10 Amendments Act of 1988, and for contracts with qualified

11 fair housing enforcement organizations, as authorized by

12 section 561 of the Housing and Community Development

13 Act of 1987, as amended, $30,000,000, to remain avail14 able until September 30, 1998, of which $15,000,000 shall

15 be to carry out activities pursuant to section 561.

16 MANAGEMENT AND ADMINISTRATION

17 SALARIES AND EXPENSES

18 (INCLUDING TRANSFER OF FUNDS)

19 For necessary administrative and non-administrative

20 expenses of the Department of Housing and Urban Devel21 opment, not otherwise provided for, including not to ex22 ceed $7,000 for official reception and representation ex23 penses, Ω29æ$962,558,000 (reduced by $1,411,000) (re24 duced by $42,000,000) $976,840,000, of which

25 Ω30æ$532,782,000 $546,782,000 shall be provided from
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1 the various funds of the Federal Housing Administration,

2 Ω31æ$9,101,000 $9,383,000 shall be provided from funds

3 of the Government National Mortgage Association, and

4 $675,000 shall be provided from the Community Develop5 ment Grants Program account.

6 OFFICE OF INSPECTOR GENERAL

7 (INCLUDING TRANSFER OF FUNDS)

8 For necessary expenses of the Office of Inspector

9 General in carrying out the provisions of the Inspector

10 General Act of 1978, as amended, $52,850,000, of which

11 $11,283,000 shall be provided from the various funds of

12 the Federal Housing Administration and $5,000,000 shall

13 be Ω32æprovided transferred from the amount earmarked

14 for Operation Safe Home in the Drug elimination grants

15 for low income housing account.

16 OFFICE OF FEDERAL HOUSING ENTERPRISE OVERSIGHT

17 SALARIES AND EXPENSES

18 (INCLUDING TRANSFER OF FUNDS)

19 For carrying out the Federal Housing Enterprise Fi20 nancial Safety and Soundness Act of 1992,

21 Ω33æ$14,895,000 $15,751,000, to remain available until

22 expended, from the Federal Housing Enterprise Oversight

23 Fund: Provided, That such amounts shall be collected by

24 the Director as authorized by section 1316(a) and (b) of

25 such Act, and deposited in the Fund under section 1316(f)

26 of such Act.
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1 ADMINISTRATIVE PROVISIONS

2 Ω34æSEC. 201. MINIMUM RENTS.—Notwithstanding

3 section 3(a) and 8(o)(2) of the United States Housing Act

4 of 1937, as amended, for fiscal year 1997—

5 (1) public housing agencies shall require each

6 family who is assisted under the certificate or mod7 erate rehabilitation program under section 8 of such

8 Act to pay a minimum monthly rent of up to $25;

9 (2) public housing agencies shall reduce the

10 monthly assistance payment on behalf of each family

11 who is assisted under the voucher program under

12 section 8 of such Act so that the family pays a mini13 mum monthly rent of up to $25;

14 (3) with respect to housing assisted under other

15 programs for rental assistance under section 8 of

16 such Act, the Secretary shall require each family

17 who is assisted under such program to pay a mini18 mum monthly rent of up to $25; and

19 (4) public housing agencies shall require each

20 family who is assisted under the public housing pro21 gram (including public housing for Indian families)

22 to pay a minimum monthly rent of up to $25.

23 SEC. 201. EXTENDERS.—(a) PUBLIC HOUSING FUND24 ING FLEXIBILITY.—Section 201(a)(2) of the Departments of

25 Veterans Affairs and Housing and Urban Development, and
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1 Independent Agencies Appropriations Act, 1996 is amended

2 by striking ‘‘1996’’ and inserting ‘‘1997’’.

3 (b) ONE-FOR-ONE REPLACEMENT OF PUBLIC AND IN4 DIAN HOUSING.—Section 1002(d) of Public Law 104–19 is

5 amended by striking ‘‘before September 30, 1996’’ and in6 serting ‘‘on or before September 30, 1997’’.

7 (c) PUBLIC AND ASSISTED HOUSING RENTS, INCOME

8 ADJUSTMENTS, AND PREFERENCES.—(1) Section 402(a) of

9 the Balanced Budget Downpayment Act, I is amended by

10 inserting after ‘‘1995’’ the following: ‘‘, and effective for fis11 cal year 1997’’.

12 (2) Section 402(f) of such Act is amended by striking

13 ‘‘fiscal year 1996’’ and inserting ‘‘fiscal years 1996 and

14 1997’’.

15 (3) The second sentence of section 230 of the Depart16 ments of Veterans Affairs and Housing and Urban Develop17 ment, and Independent Agencies Appropriations Act, 1996

18 is amended by inserting before the period the following:

19 ‘‘during the entire time the family receives assistance under

20 the United States Housing Act of 1937’’.

21 (d) APPLICABILITY TO IHAS.—In accordance with

22 section 201(b)(2) of the United States Housing Act of 1937,

23 the amendments made by subsections (a), (b), and (c) shall

24 apply to public housing developed or operated pursuant to
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1 a contract between the Secretary of Housing and Urban De2 velopment and an Indian housing authority.

3 (e) STREAMLINING SECTION 8 TENANT-BASED ASSIST4 ANCE.—Section 203(d) of the Departments of Veterans Af5 fairs and Housing and Urban Development, and Independ6 ent Agencies Appropriations Act, 1996 is amended by strik7 ing ‘‘fiscal year 1996’’ and inserting ‘‘fiscal years 1996 and

8 1997’’.

9 (f) SECTION 8 FAIR MARKET RENTALS AND DELAY IN

10 REISSUANCE.—(1) The first sentence of section 403(a) of

11 the Balanced Budget Downpayment Act, I, is amended by

12 striking ‘‘1996’’ and inserting ‘‘1997’’.

13 (2) Section 403(c) of such Act is amended—

14 (A) by striking ‘‘fiscal year 1996’’ and inserting

15 ‘‘fiscal years 1996 and 1997’’; and

16 (B) by inserting before the semicolon the follow17 ing: ‘‘for assistance made available during fiscal year

18 1996 and October 1, 1997 for assistance made avail19 able during fiscal year 1997’’.

20 (g) SECTION 8 RENT ADJUSTMENTS.—Section

21 8(c)(2)(A) of the United States Housing Act of 1937 is

22 amended—

23 (1) in the third sentence by inserting ‘‘, fiscal

24 year 1996 prior to April 26, 1996, and fiscal year

25 1997’’ after ‘‘1995’’;
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1 (2) in the fourth sentence, by striking ‘‘For’’ and

2 inserting ‘‘Except for assistance under the certificate

3 program, for’’;

4 (3) after the fourth sentence, by inserting the fol5 lowing new sentence: ‘‘In the case of assistance under

6 the certificate program, 0.01 shall be subtracted from

7 the amount of the annual adjustment factor (except

8 that the factor shall not be reduced to less than 1.0),

9 and the adjusted rent shall not exceed the rent for a

10 comparable unassisted unit of similar quality, type,

11 and age in the market area.’’; and

12 (4) in the last sentence, by—

13 (A) striking ‘‘sentence’’ and inserting ‘‘two

14 sentences’’; and

15 (B) inserting ‘‘, fiscal year 1996 prior to

16 April 26, 1996, and fiscal year 1997’’ after

17 ‘‘1995’’.

18 SEC. 202. ADMINISTRATIVE FEES.—Notwithstand19 ing section 8(q) of the United States Housing Act of 1937,

20 as amended—

21 (a) The Secretary shall establish fees for the cost of

22 administering the certificate, voucher and moderate reha23 bilitation programs.

24 (1)(A) For fiscal year 1997, the fee for each

25 month for which a dwelling unit is covered by an as-
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1 sistance contract shall be 7.5 percent of the base

2 amount, adjusted as provided herein, in the case of

3 an agency that, on an annual basis, is administering

4 a program of no more than 600 units, and 7 percent

5 of the base amount, adjusted as provided herein, for

6 each additional unit above 600.

7 (B) The base amount shall be the higher of—

8 (i) the fair market rental for fiscal year

9 1993 for a 2-bedroom existing rental dwelling

10 unit in the market area of the agency; and

11 (ii) such fair market rental for fiscal year

12 1994, but not more than 103.5 percent of the

13 amount determined under clause (i).

14 (C) The base amount shall be adjusted to re15 flect changes in the wage data or other objectively

16 measurable data that reflect the costs of administer17 ing the program during fiscal year 1996; except that

18 the Secretary may require that the base amount be

19 not less than a minimum amount and not more than

20 a maximum amount.

21 (2) For subsequent fiscal years, the Secretary

22 shall publish a notice in the Federal Register, for

23 each geographic area, establishing the amount of the

24 fee that would apply for the agencies administering

25 the program, based on changes in wage data or
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1 other objectively measurable data that reflect the

2 cost of administering the program, as determined by

3 the Secretary.

4 (3) The Secretary may increase the fee if nec5 essary to reflect higher costs of administering small

6 programs and programs operating over large geo7 graphic areas.

8 (4) The Secretary may decrease the fee for

9 PHA-owned units.

10 (b) Beginning in fiscal year 1997 and thereafter, the

11 Secretary shall also establish reasonable fees (as deter12 mined by the Secretary) for—

13 (1) the costs of preliminary expenses, in the

14 amount of $500, for a public housing agency, but

15 only in the first year it administers a tenant-based

16 assistance program under the United States Hous17 ing Act of 1937 and only if, immediately before the

18 effective date of this Act, it was not administering

19 a tenant-based assistance program under the 1937

20 Act (as in effect immediately before the effective

21 date of this Act), in connection with its initial incre22 ment of assistance received;

23 (2) the costs incurred in assisting families who

24 experience difficulty (as determined by the Sec-
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1 retary) in obtaining appropriate housing under the

2 program; and

3 (3) extraordinary costs approved by the Sec4 retary.

5 SEC. 203. SINGLE FAMILY ASSIGNMENT PRO6 GRAM.—Section 407(c) of the Balanced Budget Downpay7 ment Act, I (12 U.S.C. 1710 note), is amended by striking

8 ‘‘October 1, 1996’’ and inserting ‘‘October 1, 1997’’.

9 SEC. 204. FLEXIBLE AUTHORITY.—During fiscal

10 year 1997 and fiscal years thereafter, the Secretary may

11 manage and dispose of multifamily properties owned by

12 the Secretary and multifamily mortgages held by the Sec13 retary on such terms and conditions as the Secretary may

14 determine, notwithstanding any other provision of law.

15 Ω35æSEC. 205. USE OF AVAILABLE FUNDING FOR

16 HOMEOWNERSHIP.—Up to $20,000,000 of amounts of unob17 ligated balances that are or become available from the Nehe18 miah Housing Opportunity Grant program, repealed under

19 section 289(b) of the Cranston-Gonzalez National Affordable

20 Housing Act, Public Law 101–625, shall be available for

21 use for activities relating to promotion and implementation

22 of homeownership in targeted geographic areas, as deter23 mined by the Secretary.

24 Ω36æSEC. 206. DEBT FORGIVENESS.—The Secretary

25 of Housing and Urban Development shall cancel the indebt-
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1 edness of the Greene County Rural Health Center relating

2 to a loan received under the Public Facility Loan program

3 to establish the health center (Loan #Mis–22–PFL0096).

4 The Greene County Rural Health Center is hereby relieved

5 of all liability to the Federal Government for such loan and

6 any fees and charges payable in connection with such loan.

7 Ω37æSEC. 207. FLEXIBLE SUBSIDY FUND.—From the

8 fund established by section 236(g) of the National Housing

9 Act, as amended, all uncommitted balances of excess rental

10 charges as of September 30, 1996, and any collection during

11 fiscal year 1997, shall be transferred, as authorized under

12 such section, to the fund authorized under section 201(j)

13 of the Housing and Community Development Amendments

14 of 1978, as amended.

15 Ω38æSEC. 208. RENTAL HOUSING ASSISTANCE.—The

16 limitation otherwise applicable to the maximum payments

17 that may be required in any fiscal year by all contracts

18 entered into under section 236 of the National Housing Act

19 (12 U.S.C. 1715z–1) is reduced in fiscal year 1997 by not

20 more than $2,000,000 in uncommitted balances of author21 izations provided for this purpose in appropriations Acts.

22 Ω39æSEC. 209. D.C. MODERNIZATION FUNDING.—Not23 withstanding the provisions of section 14(k)(5)(D) of the

24 United States Housing Act of 1937, the withheld mod25 ernization funds that became credited in fiscal years 1993,
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1 1994 and 1995, due to the troubled status of the former De2 partment of Public and Assisted Housing of the District

3 of Columbia, shall be made available without diminution

4 to its successor, the District of Columbia Housing Author5 ity, at such time between the effective date of this Act and

6 the end of fiscal year 1998 as the District of Columbia

7 Housing Authority is no longer deemed ‘‘mod-troubled’’

8 under section 6(j)(2)(A)(i) of such Act; after fiscal year

9 1998, the District of Columbia Housing Authority shall be10 come subject to the provisions of section 14(k)(5)(D) of such

11 Act should it remain mod-troubled.

12 Ω40æSEC. 210. FINANCING ADJUSTMENT FACTORS.—

13 Fifty per centum of the amounts of budget authority, or

14 in lieu thereof 50 per centum of the cash amounts associated

15 with such budget authority, that are recaptured from

16 projects described in section 1012(a) of the Stewart B.

17 McKinney Homeless Assistance Amendments Act of 1988

18 (Public Law 100–628, 102 Stat. 3224, 3268) shall be re19 scinded, or in the case of cash, shall be remitted to the

20 Treasury, and such amounts of budget authority or cash

21 recaptured and not rescinded or remitted to the Treasury

22 shall be used by State housing finance agencies or local gov23 ernments or local housing agencies with projects approved

24 by the Secretary of Housing and Urban Development for
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1 which settlement occurred after January 1, 1992, in accord2 ance with such section.

3 Ω41æSEC. 211. SECTION 8 CONTRACT RENEWAL AUTHORITY.

4 (a) DEFINITIONS.—For purposes of this section—

5 (1) the term ‘‘expiring contract’’ means a con6 tract for project-based assistance under section 8 of

7 the United States Housing Act of 1937 that expires

8 during fiscal year 1997;

9 (2) the term ‘‘family’’ has the same meaning as

10 in section 3(b) of the United States Housing Act of

11 1937;

12 (3) the term ‘‘multifamily housing project’’

13 means a property consisting of more than 4 dwelling

14 units that is covered in whole or in part by a con15 tract for project-based assistance under section 8 of

16 the United States Housing Act of 1937;

17 (4) the term ‘‘owner’’ has the same meaning as

18 in section 8(f) of the United States Housing Act of

19 1937;

20 (5) the term ‘‘project-based assistance’’ means

21 rental assistance under section 8 of the United States

22 Housing Act of 1937 that is attached to a multifam23 ily housing project;
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1 (6) the term ‘‘public agency’’ means a State

2 housing finance agency, a local housing agency, or

3 other agency with a public purpose and status;

4 (7) the term ‘‘Secretary’’ means the Secretary of

5 Housing and Urban Development; and

6 (8) the term ‘‘tenant-based assistance’’ has the

7 same meaning as in section 8(f) of the United States

8 Housing Act of 1937.

9 (b) SECTION 8 CONTRACT RENEWAL AUTHORITY.—

10 (1) IN GENERAL.—Notwithstanding section

11 405(a) of the Balanced Budget Downpayment Act, I,

12 upon the request of the owner of a multifamily hous13 ing project that is covered by an expiring contract,

14 the Secretary shall use amounts made available for

15 the renewal of assistance under section 8 of the Unit16 ed States Housing Act of 1937 to renew the expiring

17 contract as project-based assistance for a period of not

18 more than 1 year, at rent levels that are equal to

19 those under the expiring contract as of the date on

20 which the contract expires, only if those rent levels do

21 not exceed 120 percent of fair market rent for the

22 market area in which the project is located.

23 (2) EXEMPTION FOR STATE AND LOCAL HOUSING

24 AGENCY PROJECTS.—Notwithstanding paragraph (1),

25 upon the expiration of an expiring contract with rent
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1 levels that exceed the percentage described in that

2 paragraph, if the Secretary determines that the pri3 mary financing or mortgage insurance for the multi4 family housing project that is covered by that expir5 ing contract was provided by a public agency, the

6 Secretary shall, upon the request of the public agency,

7 renew the expiring contract—

8 (A) for a period of not more than 1 year;

9 and

10 (B) at rent levels that are equal to those

11 under the expiring contract as of the date on

12 which the contract expires.

13 (3) INELIGIBLE CONTRACTS.—

14 (A) PARTICIPATION IN DEMONSTRATION.—

15 For contracts covering a multifamily housing

16 project that expire during fiscal year 1997 with

17 rent levels that exceed the percentage described in

18 paragraph (1), the Secretary shall, at the request

19 of the owner of the project, include that multi20 family housing project in the demonstration pro21 gram under section 212 of this Act. The Sec22 retary shall ensure, to the maximum extent prac23 ticable, that a project in the demonstration is

24 maintained as affordable for low-income families

25 for the maximum feasible period of time.
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1 (B) EFFECT OF MATERIAL ADVERSE AC2 TIONS OR OMISSIONS.—Notwithstanding para3 graph (1) or any other provision of law, the Sec4 retary shall not renew an expiring contract if

5 the Secretary determines that the owner of the

6 multifamily housing project has engaged in ma7 terial adverse financial or managerial actions or

8 omissions with regard to the project (or with re9 gard to other similar projects if the Secretary de10 termines that such actions or omissions con11 stitute a pattern of mismanagement that would

12 warrant suspension or debarment by the Sec13 retary).

14 (C) TRANSFER OF PROPERTY.—For prop15 erties disqualified from the demonstration pro16 gram because of actions by an owner or pur17 chaser in accordance with subparagraph (B), the

18 Secretary shall establish procedures to facilitate

19 the voluntary sale or transfer of the property,

20 with a preference for tenant organizations and

21 tenant-endorsed community-based nonprofit and

22 public agency purchasers meeting such reason23 able qualifications as may be established by the

24 Secretary.
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1 (4) TENANT PROTECTIONS.—To the extent pro2 vided in advance in an appropriations Act, any fam3 ily residing in an assisted unit in a multifamily

4 housing project that is covered by an expiring con5 tract that is not renewed, shall be offered tenant-based

6 assistance before the date on which the contract ex7 pires or is not renewed.

8 SEC. 212. FHA MULTIFAMILY DEMONSTRATION AUTHORITY.

9 (a) IN GENERAL.—

10 (1) REPEAL.—

11 (A) IN GENERAL.—Section 210 of the De12 partments of Veterans Affairs and Housing and

13 Urban Development and Independent Agencies

14 Appropriations Act, 1996 (110 Stat. 1321) is re15 pealed.

16 (B) EXCEPTION.—Notwithstanding the re17 peal under subparagraph (A), amounts made

18 available under section 210(f) the Departments

19 of Veterans Affairs and Housing and Urban De20 velopment and Independent Agencies Appropria21 tions Act, 1996 shall remain available for the

22 demonstration program under this section

23 through the end of fiscal year 1997.

24 (2) SAVINGS PROVISIONS.—Nothing in this sec25 tion shall be construed to affect any commitment en-
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1 tered into before the date of enactment of this Act

2 under the demonstration program under section 210

3 of the Departments of Veterans Affairs and Housing

4 and Urban Development and Independent Agencies

5 Appropriations Act, 1996.

6 (3) DEFINITIONS.—For purposes of this sec7 tion—

8 (A) the term ‘‘affordable’’ means, with re9 spect to a dwelling unit, a unit for which the

10 rents are restricted to the rent levels established

11 under a mortgage restructuring;

12 (B) the term ‘‘demonstration program’’

13 means the program established under subsection

14 (b);

15 (C) the term ‘‘designee’’ means a third16 party public agency that enters into an arrange17 ment with the Secretary under subsection (b)(3);

18 (D) the term ‘‘expiring contract’’ means a

19 contract for project-based assistance under sec20 tion 8 of the United States Housing Act of 1937

21 that expires during fiscal year 1997;

22 (E) the term ‘‘family’’ has the same mean23 ing as in section 3(b) of the United States Hous24 ing Act of 1937;
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1 (F) the term ‘‘multifamily housing project’’

2 means a property consisting of more than 4

3 dwelling units that is covered in whole or in

4 part by a contract for project-based assistance;

5 (G) the term ‘‘owner’’ has the same meaning

6 as in section 8(f) of the United States Housing

7 Act of 1937;

8 (H) the term ‘‘project-based assistance’’

9 means rental assistance under section 8 of the

10 United States Housing Act of 1937 that is at11 tached to a multifamily housing project;

12 (I) the term ‘‘Secretary’’ means the Sec13 retary of Housing and Urban Development; and

14 (J) the term ‘‘tenant-based assistance’’ has

15 the same meaning as in section 8(f) of the Unit16 ed States Housing Act of 1937.

17 (b) DEMONSTRATION AUTHORITY.—

18 (1) IN GENERAL.—The Secretary shall admin19 ister a demonstration program with respect to multi20 family projects—

21 (A) whose owners agree to participate;

22 (B) with rents on units assisted under sec23 tion 8 of the United States Housing Act of 1937

24 that are, in the aggregate, in excess of 120 per-
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1 cent of the fair market rent of the market area

2 in which the project is located; and

3 (C) the mortgages of which are insured

4 under the National Housing Act.

5 (2) PURPOSE.—The demonstration program

6 shall be designed to test the feasibility and desirabil7 ity of—

8 (A) ensuring, to the maximum extent prac9 ticable, that the debt service and operating ex10 penses, including adequate reserves, attributable

11 to such multifamily projects can be supported at

12 the comparable market rent with or without

13 mortgage insurance under the National Housing

14 Act and with or without additional subsidies;

15 (B) utilizing project-based assistance, while

16 taking into account the capital needs of the

17 projects and the need for assistance to low- and

18 very low-income families in such projects; and

19 (C) preserving low-income rental housing

20 affordability and availability while reducing the

21 long-term cost of project-based assistance.

22 (3) DESIGNEES.—In carrying out the dem23 onstration program, the Secretary may enter into ar24 rangements with one or more third-party public enti25 ties, under which the Secretary may provide for the
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1 assumption by the designee (by delegation, by con2 tract, or otherwise) of some or all of the functions, ob3 ligations, and benefits of the Secretary.

4 (c) GOALS.—

5 (1) IN GENERAL.—The Secretary shall carry out

6 the demonstration program in a manner that will

7 protect the financial interests of the Federal Govern8 ment through debt restructuring and subsidy reduc9 tion and, in the least costly fashion, address the goals

10 of—

11 (A) maintaining existing affordable housing

12 stock in a decent, safe, and sanitary condition;

13 (B) minimizing the involuntary displace14 ment of tenants;

15 (C) taking into account housing market

16 conditions;

17 (D) encouraging responsible ownership and

18 management of property;

19 (E) minimizing any adverse income tax

20 impact on property owners; and

21 (F) minimizing any adverse impacts on

22 residential neighborhoods and local communities.

23 (2) BALANCE OF COMPETING GOALS.—In deter24 mining the manner in which a mortgage is to be re25 structured or a subsidy reduced under this subsection,
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1 the Secretary may balance competing goals relating to

2 individual projects in a manner that will further the

3 purposes of this section.

4 (d) JOINT VENTURE ARRANGEMENTS.—

5 (1) IN GENERAL.—In carrying out the dem6 onstration program, the Secretary may enter into

7 joint venture arrangements with designees, under

8 which the Secretary may provide for the assumption

9 by the third parties (by delegation, by contract, or

10 otherwise) of some or all of the functions, obligations,

11 and benefits of the Secretary.

12 (2) PREFERENCE.—In entering into any ar13 rangement under this subsection, the Secretary shall

14 give preference to State housing finance agencies and

15 local housing agencies to act as designees to the extent

16 such agencies are determined to be qualified by the

17 Secretary.

18 (3) PUBLIC AGENCIES.—Each joint venture ar19 rangement entered into under this subsection shall in20 clude a public agency as the primary partner.

21 (4) DESIGNEE PARTNERSHIPS.—For purposes of

22 any joint venture arrangement under this subsection,

23 designees are encouraged to develop partnerships with

24 each other, and to contract or subcontract with other

25 entities, including—
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1 (A) public housing agencies;

2 (B) financial institutions;

3 (C) mortgage servicers;

4 (D) nonprofit and for-profit housing orga5 nizations;

6 (E) the Federal National Mortgage Associa7 tion;

8 (F) the Federal Home Loan Mortgage Cor9 poration;

10 (G) Federal Home Loan Banks; and

11 (H) other State or local mortgage insurance

12 companies or bank lending consortia.

13 (e) LONG-TERM AFFORDABILITY.—After the renewal of

14 a section 8 contract pursuant to a restructuring under this

15 section, the owner shall accept each offer to renew the section

16 8 contract, for a period of 20 years from the date of the

17 renewal under the demonstration, if the offer to renew is

18 on terms and conditions, as agreed to by the Secretary or

19 designee and the owner under a restructuring.

20 (f) PROCEDURES.—

21 (1) NOTICE OF PARTICIPATION IN DEMONSTRA22 TION.—Not later than 45 days before the date of expi23 ration of an expiring contract (or such later date, as

24 determined by the Secretary, for good cause), the

25 owner of the multifamily housing project covered by
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1 that expiring contract shall notify the Secretary or

2 designee of the owner’s intent to participate in the

3 demonstration program.

4 (2) DEMONSTRATION CONTRACT.—Upon receipt

5 of a notice under paragraph (1), the owner and the

6 Secretary or designee shall enter into a demonstration

7 contract, which shall provide for initial section 8

8 project-based rents at the same rent levels as those

9 under the expiring contract or, if practical, the budg10 et-based rent to cover debt service, reasonable operat11 ing expenses (including reasonable and appropriate

12 services), and a reasonable return on equity, as deter13 mined solely by the Secretary. The demonstration

14 contract shall be for the minimum term necessary for

15 the rents and mortgages of the multifamily housing

16 project to be restructured under the demonstration

17 program.

18 (g) HUD-OWNED AND HUD-HELD MORTGAGES.—For

19 purposes of carrying out the demonstration program—

20 (1) the Secretary may manage and dispose of

21 multifamily properties owned by the Secretary and

22 multifamily mortgages held by the Secretary, on such

23 terms and conditions as the Secretary may determine,

24 without regard to any other provision of law; and
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1 (2) as provided under subsection (b)(3), the Sec2 retary may delegate to one or more designees the au3 thority to carry out some or all of the functions and

4 responsibilities of the Secretary in connection with

5 mortgages held by the Secretary under the National

6 Housing Act.

7 (h) DEMONSTRATION ACTIONS.—For purposes of car8 rying out the demonstration program, and in order to en9 sure that contract rights are not abrogated, subject to such

10 third party consents as are necessary (if any), including

11 consent by the Government National Mortgage Association

12 if it owns a mortgage insured by the Secretary, consent by

13 an issuer under the mortgage-backed securities program of

14 the Association, subject to the responsibilities of the issuer

15 to its security holders and the Association under such pro16 gram, and consent by parties to any contractual agreement

17 which the Secretary proposes to modify or discontinue, the

18 Secretary or, except with respect to paragraph (2), designee,

19 shall take not less than 1 of the actions specified in para20 graphs (6), (7), and (8) and may take any of the following

21 actions:

22 (1) REMOVAL OF RESTRICTIONS.—

23 (A) IN GENERAL.—Notwithstanding any

24 other provision of law, and subject to the agree25 ment of the owner of the project and after con-
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1 sultation with the tenants of the project, the Sec2 retary or designee may remove, relinquish, extin3 guish, modify, or agree to the removal of any

4 mortgage, regulatory agreement, project-based as5 sistance contract, use agreement, or restriction

6 that had been imposed or required by the Sec7 retary, including restrictions on distributions of

8 income which the Secretary or designee deter9 mines would interfere with the ability of the

10 project to operate without above-market rents.

11 (B) ACCUMULATED RESIDUAL RECEIPTS.—

12 The Secretary or designee may require an owner

13 of a property assisted under the section 8 new

14 construction/substantial rehabilitation program

15 under the United States Housing Act of 1937 to

16 apply any accumulated residual receipts toward

17 effecting the purposes of this section.

18 (2) REINSURANCE.—With respect to not more

19 than 5,000 units during fiscal year 1997, the Sec20 retary may enter into contracts to purchase reinsur21 ance, or enter into participations or otherwise trans22 fer economic interest in contracts of insurance or in

23 the premiums paid, or due to be paid, on such insur24 ance to the designee, on such terms and conditions as

25 the Secretary may determine.
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1 (3) INDUCE PARTICIPATION OF THIRD PAR2 TIES.—Notwithstanding any other provision of law,

3 of amounts made available under appropriations

4 Acts, including amounts made available under this

5 section, the Secretary or designee may enter into such

6 agreements, provide such concessions, incur such costs,

7 make such grants (including grants to cover all or a

8 portion of the rehabilitation costs for a project) and

9 other payments, and provide other valuable consider10 ation, as may reasonably be necessary to induce par11 ticipation of owners, lenders, servicers, third parties,

12 and other entities in the demonstration program, in13 cluding the use of fees for contract administration

14 under section 8 of the United States Housing Act of

15 1937 for purposes of any contract restructured or re16 newed under the demonstration program.

17 (4) FULL OR PARTIAL PAYMENT OF CLAIM.—Not18 withstanding any other provision of law, the Sec19 retary may make a full payment of claim or partial

20 payment of claim prior to default.

21 (5) CREDIT ENHANCEMENT.—

22 (A) IN GENERAL.—The Secretary or des23 ignee may provide FHA multifamily mortgage

24 insurance, reinsurance, or other credit enhance25 ment alternatives, including retaining the exist-
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1 ing FHA mortgage insurance on a restructured

2 first mortgage at market value or using the mul3 tifamily risk-sharing mortgage programs, as pro4 vided under section 542 of the Housing and

5 Community Development Act of 1992.

6 (B) EFFECT OF LIMITATIONS.—Any limita7 tions on the number of units available for mort8 gage insurance under section 542 shall not apply

9 to insurance issued for purposes of the dem10 onstration program.

11 (C) MAXIMUM PERCENTAGE.—During fiscal

12 year 1997, not more than 10 percent of multi13 family housing projects with expiring contracts

14 may be restructured without FHA insurance,

15 unless otherwise agreed by the owner of a project.

16 (D) CREDIT SUBSIDY.—Subject to the fund17 ing restrictions under subsection (l), any credit

18 subsidy costs of providing mortgage insurance

19 shall be paid from the General Insurance Fund

20 and the Special Risk Insurance Fund.

21 (6) MORTGAGE RESTRUCTURING.—

22 (A) IN GENERAL.—The Secretary or des23 ignee may restructure mortgages to provide a re24 structured first mortgage to cover debt service

25 and operating expenses at the market rent, and
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1 a second mortgage equal to the difference between

2 the restructured first mortgage and the mortgage

3 balance of the eligible multifamily housing

4 project at the time of restructuring.

5 (B) INTEREST RATE ON SECOND MORT6 GAGE.—The second mortgage shall bear interest

7 at a rate not to exceed the applicable Federal

8 rate for a term not to exceed 40 years.

9 (C) TIMING OF PAYMENTS.—If the first

10 mortgage remains outstanding, payments of in11 terest and principal on the second mortgage shall

12 be made from all excess project income only after

13 the payment of all reasonable and necessary op14 erating expenses (including deposits in a reserve

15 for replacement), debt service on the first mort16 gage, and such other expenditures as may be ap17 proved by the Secretary.

18 (D) ASSUMPTION OF SECOND MORTGAGE.—

19 The second mortgage shall be assumable by any

20 subsequent purchaser of the multifamily housing

21 project.

22 (E) DISPOSITION OF PROPERTY.—The bal23 ance of the principal and accrued interest due

24 under the second mortgage shall be fully payable
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1 upon disposition of the property, unless the

2 mortgage is assumed under subparagraph (D).

3 (F) SECOND MORTGAGE REPAYMENT.—The

4 owner shall begin repayment of the second mort5 gage upon full payment of the first mortgage in

6 equal monthly installments in an amount equal

7 to the monthly principal and interest payments

8 formerly paid under the first mortgage.

9 (G) FAILURE TO COMPLY.—The principal

10 and interest of a second mortgage shall be imme11 diately due and payable upon a finding by the

12 Secretary that an owner has failed to materially

13 comply with this section or any applicable re14 quirement of the United States Housing Act of

15 1937 in relation to the project at issue.

16 (H) CREDIT SUBSIDY.—Subject to the fund17 ing restrictions under subsection (l), any credit

18 subsidy costs of providing a second mortgage

19 shall be paid from the General Insurance Fund

20 and the Special Risk Insurance Fund.

21 (7) DEBT FORGIVENESS.—The Secretary or des22 ignee, for good cause and at the request of the owner

23 of a multifamily housing project, may forgive at the

24 time of the restructuring of a mortgage any portion

25 of a debt on the project that exceeds the market value
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1 of the project. In exchange for debt forgiveness under

2 this paragraph, the project shall remain affordable to

3 low-income families for a period of 20 years, unless

4 otherwise provided by the Secretary.

5 (8) BUDGET-BASED RENTS.—During fiscal year

6 1997, the Secretary or designee may renew an expir7 ing contract, for a period of not more than 1 year,

8 at a budget-based rent that covers debt service, reason9 able operating expenses (including all reasonable and

10 appropriate services), and a reasonable return on eq11 uity, as determined solely by the Secretary, but that

12 does not exceed the rent levels under the expiring con13 tract. The Secretary may establish a preference under

14 the demonstration program for budget-based rents for

15 unique housing projects, such as projects designated

16 for occupancy by elderly families in rural areas.

17 (i) COMMUNITY AND TENANT INPUT.—In carrying out

18 this section, the Secretary shall develop procedures to pro19 vide appropriate and timely notice, including an oppor20 tunity for comment, to officials of the unit of general local

21 government affected, the community in which the project

22 is situated, and the tenants of the project.

23 (j) LIMITATION ON DEMONSTRATION AUTHORITY.—

24 The Secretary shall carry out the demonstration program

25 with respect to mortgages not to exceed 50,000 units.
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1 (k) PRIORITY FOR PARTICIPATION.—The Secretary or

2 designee shall give priority for participation in the dem3 onstration program to any owner of an eligible multifamily

4 housing project with an expiring contract for project-based

5 assistance.

6 (l) FUNDING.—In addition to the $30,000,000 made

7 available under section 210 of the Departments of Veterans

8 Affairs and Housing and Urban Development and Inde9 pendent Agencies Appropriations Act, 1996 (110 Stat.

10 1321), for the costs (including any credit subsidy costs asso11 ciated with providing direct loans or mortgage insurance)

12 of modifying and restructuring loans held or guaranteed

13 by the Federal Housing Administration, as authorized

14 under this section, $10,000,000, are hereby appropriated,

15 to remain available until September 30, 1998.

16 (m) REPORT TO CONGRESS.—

17 (1) IN GENERAL.—

18 (A) BIANNUAL REPORTS.—Not less than bi19 annually, the Secretary shall submit to the Con20 gress a report describing and assessing the pro21 grams carried out under the demonstration pro22 gram.

23 (B) FINAL REPORT.—Not later than 6

24 months after the end of the demonstration pro-
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1 gram, the Secretary shall submit to the Congress

2 a final report on the demonstration program.

3 (2) CONTENTS.—Each report submitted under

4 paragraph (1) shall include—

5 (A) any findings and recommendations for

6 legislative action; and

7 (B) a description of the status of each mul8 tifamily housing project selected for the dem9 onstration program.

10 (3) CONTENTS OF FINAL REPORT.—The report

11 submitted under paragraph (1)(B) may include—

12 (A) with respect to each multifamily hous13 ing project participating in the demonstration

14 program, information relating to—

15 (i) the size of the project;

16 (ii) the geographic locations of the

17 project, by State and region;

18 (iii) the physical and financial condi19 tion of the project;

20 (iv) the occupancy profile of the

21 project, including the income, family size,

22 race, and ethnic origin of the tenants, and

23 the rents paid by those tenants;

24 (v) a description of actions undertaken

25 pursuant to this section, including a de-
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1 scription of the effectiveness of such actions

2 and any impediments to the transfer or sale

3 of the projects;

4 (vi) a description of the extent to

5 which the demonstration program has dis6 placed tenants of the project;

7 (vii) a description of the impact to

8 which the demonstration program has af9 fected the localities and communities in

10 which the projects are located; and

11 (viii) a description of the extent to

12 which the demonstration program has af13 fected the owners of the projects; and

14 (B) a description of any of the functions

15 performed in connection with this section that

16 are transferred or contracted out to public or

17 private entities or to State entities.

18 Ω42æSEC. 213. HAWAIIAN HOME LANDS.—Section

19 282 of the Cranston-Gonzalez National Affordable Housing

20 Act (42 U.S.C. 12832) is amended by adding at the end

21 the following new sentence: ‘‘The Secretary may waive this

22 section in connection with the use of funds made available

23 under this title on lands set aside under the Hawaiian

24 Homes Commission Act, 1920 (42 Stat. 108).’’.
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1 Ω43æSEC. 214. INVOLUNTARY SEPARATIONS.—In

2 order to avoid or minimize the need for involuntary separa3 tions due to a reduction in force, departmental restructur4 ing, reorganization, transfer of function, or similar action

5 affecting the Department of Housing and Urban Develop6 ment, the Secretary shall establish a program under which

7 separation pay, subject to the availability of appropriated

8 funds, may be offered to encourage employees to separate

9 from service voluntarily, whether by retirement or resigna10 tion: Provided, That payments to individual employees

11 shall not exceed $25,000: Provided further, That in addition

12 to any other payments which it is required to make under

13 subchapter III of chapter 83 or chapter 84 of title 5, United

14 States Code, HUD shall remit to the Office of Personnel

15 Management for deposit in the Treasury of the United

16 States to the credit of the Civil Service Retirement and Dis17 ability Fund on amount equal to 15 percent of the final

18 basic pay of each employee who is covered under subchapter

19 III of chapter 83 or chapter 84 of title 5 to whom a vol20 untary separation incentive has been paid under this para21 graph.

22 Ω44æSEC. 215. REQUIREMENT FOR HUD TO MAIN23 TAIN PUBLIC NOTICE AND COMMENT RULEMAKING.—The

24 Secretary of Housing and Urban Development shall main25 tain all current requirements under part 10 of the Depart-
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1 ment of Housing and Urban Development’s regulations (24

2 CFR part 10) with respect to the Department’s policies and

3 procedures for the promulgation and issuance of rules, in4 cluding the use of public participation in the rulemaking

5 process.

6 Ω45æSEC. 216. COMMUNITY DEVELOPMENT BLOCK GRANTS.

7 Section 102(a)(6)(D) of the Housing and Community

8 Development Act of 1974 (42 U.S.C. 5302(a)(6)(D)) is

9 amended—

10 (1) in clause (iv), by striking ‘‘or’’ at the end;

11 (2) in clause (v), by striking the period at the

12 end and inserting ‘‘; or’’; and

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

14 clause:

15 ‘‘(vi) has entered into a local cooperation

16 agreement with a metropolitan city that received

17 assistance under section 106 because of such clas18 sification, and has elected under paragraph (4)

19 to have its population included with the popu20 lation of the county for the purposes of qualify21 ing as an urban county, except that to qualify

22 as an urban county under this clause, the county

23 must—

24 ‘‘(I) have a combined population of not

25 less than 210,000, excluding any metropoli-
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1 tan city located in the county that is not re2 linquishing its metropolitan city classifica3 tion, according to the 1990 decennial census

4 of the Bureau of the Census of the Depart5 ment of Commerce;

6 ‘‘(II) including any metropolitan cities

7 located in the county, have had a decrease

8 in population of 10,061 from 1992 to 1994,

9 according to the estimates of the Bureau of

10 the Census of the Department of Commerce;

11 and

12 ‘‘(III) have had a Federal naval instal13 lation that was more than 100 years old

14 closed by action of the Base Closure and Re15 alignment Commission appointed for 1993

16 under the Base Closure and Realignment

17 Act of 1990, directly resulting in a loss of

18 employment by more than 7,000 Federal

19 Government civilian employees and more

20 than 15,000 active duty military personnel,

21 which naval installation was located within

22 1 mile of an enterprise community des23 ignated by the Secretary pursuant to section

24 1391 of the Internal Revenue Code of 1986,

25 which enterprise community has a popu-
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1 lation of not less than 20,000, according to

2 the 1990 decennial census of the Bureau of

3 the Census of the Department of Com4 merce.’’.

5 Ω46æSEC. 217. FAIR HOUSING AND FREE SPEECH.

6 None of the amounts made available under this Act

7 may be used during fiscal year 1997 to investigate or pros8 ecute under the Fair Housing Act any otherwise lawful ac9 tivity engaged in by one or more persons, including the fil10 ing or maintaining of a nonfrivolous legal action, that is

11 engaged in solely for the purpose of achieving or preventing

12 action by a government official or entity, or a court of com13 petent jurisdiction.

14 Ω47æSEC. 218. MORTGAGE INSURANCE.

15 None of the funds appropriated under this Act may

16 be used to give final approval to any proposal to provide

17 mortgage insurance having a value in excess of

18 $250,000,000 for any project financing for which may be

19 guaranteed under section 220 of the National Housing Act

20 (12 U.S.C. 1715k), unless the Secretary has transmitted to

21 the President pro tempore of the Senate and the Speaker

22 of the House the Secretary’s justification for such guarantee

23 and no final approval shall be given until the justification

24 has laid before the Congress for a period of not less than

25 30 days.
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1 TITLE III

2 INDEPENDENT AGENCIES

3 AMERICAN BATTLE MONUMENTS COMMISSION

4 SALARIES AND EXPENSES

5 For necessary expenses, not otherwise provided for,

6 of the American Battle Monuments Commission, including

7 the acquisition of land or interest in land in foreign coun8 tries; purchases and repair of uniforms for caretakers of

9 national cemeteries and monuments outside of the United

10 States and its territories and possessions; rent of office

11 and garage space in foreign countries; purchase (one for

12 replacement only) and hire of passenger motor vehicles;

13 and insurance of official motor vehicles in foreign coun14 tries, when required by law of such countries;

15 $22,265,000, to remain available until expended: Pro16 vided, That where station allowance has been authorized

17 by the Department of the Army for officers of the Army

18 serving the Army at certain foreign stations, the same al19 lowance shall be authorized for officers of the Armed

20 Forces assigned to the Commission while serving at the

21 same foreign stations, and this appropriation is hereby

22 made available for the payment of such allowance: Pro23 vided further, That when traveling on business of the Com24 mission, officers of the Armed Forces serving as members

25 or as Secretary of the Commission may be reimbursed for
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1 expenses as provided for civilian members of the Commis2 sion: Provided further, That the Commission shall reim3 burse other Government agencies, including the Armed

4 Forces, for salary, pay, and allowances of personnel as5 signed to it.

6 DEPARTMENT OF THE TREASURY

7 COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS

8 COMMUNITY DEVELOPMENT FINANCIAL INSTITUTIONS

9 FUND PROGRAM ACCOUNT

10 For grants, loans, and technical assistance to qualify11 ing community development lenders, and administrative

12 expenses of the Fund, $45,000,000, to remain available

13 until September 30, 1998, of which $8,000,000 may be

14 used for the cost of direct loans, and up to $800,000 may

15 be used for administrative expenses to carry out the direct

16 loan program: Provided, That the cost of direct loans, in17 cluding the cost of modifying such loans, shall be as de18 fined in section 502 of the Congressional Budget Act of

19 1974: Provided further, That not more than $19,400,000

20 of the funds made available under this heading may be

21 used for programs and activities authorized in section 114

22 of the Community Development Banking and Financial

23 Institutions Act of 1994.
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1 CONSUMER PRODUCT SAFETY COMMISSION

2 SALARIES AND EXPENSES

3 For necessary expenses of the Consumer Product

4 Safety Commission, including hire of passenger motor ve5 hicles, services as authorized by 5 U.S.C. 3109, but at

6 rates for individuals not to exceed the per diem rate equiv7 alent to the rate for GS–18, purchase of nominal awards

8 to recognize non-Federal officials’ contributions to Com9 mission activities, and not to exceed $500 for official re10 ception and representation expenses, $42,500,000.

11 CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

12 NATIONAL AND COMMUNITY SERVICE PROGRAMS

13 OPERATING EXPENSES

14 (INCLUDING TRANSFER OF FUNDS)

15 For necessary expenses for the Corporation for Na16 tional and Community Service (referred to in the matter

17 under this heading as the ‘‘Corporation’’) in carrying out

18 programs, activities, and initiatives under the National

19 and Community Service Act of 1990 (referred to in the

20 matter under this heading as the ‘‘Act’’) (42 U.S.C. 12501

21 et seq.), Ω48æ$365,000,000 $400,500,000, of which

22 $265,000,000 shall be available for obligation from Sep23 tember 1, 1997, through September 30, 1998: Provided,

24 That not more than $25,000,000 shall be available for ad25 ministrative expenses authorized under section 501(a)(4)
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1 of the Act (42 U.S.C. 12671(a)(4)): Provided further,

2 That not more than $2,500 shall be for official reception

3 and representation expenses: Provided further, That not

4 more than Ω49æ$40,000,000 $59,000,000, to remain avail5 able without fiscal year limitation, shall be transferred to

6 the National Service Trust account for educational awards

7 authorized under subtitle D of title I of the Act (42 U.S.C.

8 12601 et seq.): Provided further, That not more than

9 Ω50æ$201,000,000 $215,000,000 of the amount provided

10 under this heading shall be available for grants under the

11 National Service Trust program authorized under subtitle

12 C of title I of the Act (42 U.S.C. 12571 et seq.) (relating

13 to activities including the Americorps program)Ω51æ, of

14 which not more than $40,000,000 may be used to admin15 ister, reimburse or support any national service program

16 authorized under section 121(d)(2) of such Act (42 U.S.C.

17 12581(d)(2)): Provided further, That not more than

18 Ω52æ$5,000,000 $5,500,000 of the funds made available

19 under this heading shall be made available for the Points

20 of Light Foundation for activities authorized under title

21 III of the Act (42 U.S.C. 12661 et seq.): Provided further,

22 That no funds shall be available for national service pro23 grams run by Federal agencies authorized under section

24 121(b) of such Act (42 U.S.C. 12571(b)): Provided fur25 ther, That to the maximum extent feasible, funds appro-
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1 priated in the preceding proviso shall be provided in a

2 manner that is consistent with the recommendations of

3 peer review panels in order to ensure that priority is given

4 to programs that demonstrate quality, innovation,

5 replicability, and sustainability: Provided further, That not

6 more than Ω53æ$17,500,000 $18,000,000 of the funds

7 made available under this heading shall be available for

8 the Civilian Community Corps authorized under subtitle

9 E of title I of the Act (42 U.S.C. 12611 et seq.): Provided

10 further, That not more than Ω54æ$41,500,000

11 $43,000,000 shall be available for school-based and com12 munity-based service-learning programs authorized under

13 subtitle B of title I of the Act (42 U.S.C. 12521 et seq.):

14 Provided further, That not more than $30,000,000 shall

15 be available for quality and innovation activities author16 ized under subtitle H of title I of the Act (42 U.S.C.

17 12853 et seq.): Provided further, That not more than

18 $5,000,000 shall be available for audits and other evalua19 tions authorized under section 179 of the Act (42 U.S.C.

20 12639): Provided further, That no funds from any other

21 appropriation, or from funds otherwise made available to

22 the Corporation, shall be used to pay for personnel com23 pensation and benefits, travel, or any other administrative

24 expense for the Board of Directors, the Office of the Chief

25 Executive Officer, the Office of the Managing Director,
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1 the Office of the Chief Financial Officer, the Office of Na2 tional and Community Service Programs, the Civilian

3 Community Corps, or any field office or staff of the Cor4 poration working on the National and Community Service

5 or Civilian Community Corps programs: Provided further,

6 That to the maximum extent practicable, the Corporation

7 shall increase significantly the level of matching funds and

8 in-kind contributions provided by the private sector, shall

9 expand significantly the number of educational awards

10 provided under subtitle D of title I, and shall reduce the

11 total Federal costs per participant in all programs.

12 OFFICE OF INSPECTOR GENERAL

13 For necessary expenses of the Office of Inspector

14 General in carrying out the provisions of the Inspector

15 General Act of 1978, as amended, $2,000,000.

16 COURT OF VETERANS APPEALS

17 SALARIES AND EXPENSES

18 For necessary expenses for the operation of the Unit19 ed States Court of Veterans Appeals as authorized by 38

20 U.S.C. sections 7251–7292, $9,229,000 Ω55æ(increased

21 by $1,411,000), of which Ω56æ$634,000 $700,000, to re22 main available until September 30, 1998, shall be avail23 able for the purpose of providing financial assistance as

24 described, and in accordance with the process and report-
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1 ing procedures set forth, under this heading in Public Law

2 102–227.

3 DEPARTMENT OF DEFENSE—CIVIL

4 CEMETERIAL EXPENSES, ARMY

5 SALARIES AND EXPENSES

6 For necessary expenses, as authorized by law, for

7 maintenance, operation, and improvement of Arlington

8 National Cemetery and Soldiers’ and Airmen’s Home Na9 tional Cemetery, including the purchase of one passenger

10 motor vehicle for replacement only, and not to exceed

11 $1,000 for official reception and representation expenses,

12 $11,600,000, to remain available until expended.

13 ENVIRONMENTAL PROTECTION AGENCY

14 SCIENCE AND TECHNOLOGY

15 For science and technology, including research and

16 development activities, which shall include research and

17 development activities under the Comprehensive Environ18 mental Response, Compensation, and Liability Act of

19 1980 (CERCLA), as amended; necessary expenses for per20 sonnel and related costs and travel expenses, including

21 uniforms, or allowances therefore, as authorized by 5

22 U.S.C. 5901–5902; services as authorized by 5 U.S.C.

23 3109, but at rates for individuals not to exceed the per

24 diem rate equivalent to the rate for GS–18; procurement

25 of laboratory equipment and supplies; other operating ex-
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1 penses in support of research and development; construc2 tion, alteration, repair, rehabilitation and renovation of fa3 cilities, not to exceed $75,000 per project,

4 Ω57æ$540,000,000 (reduced by $1,500,000)

5 $545,000,000, which shall remain available until Septem6 ber 30, 1998.

7 ENVIRONMENTAL PROGRAMS AND MANAGEMENT

8 For environmental programs and management, in9 cluding necessary expenses, not otherwise provided for, for

10 personnel and related costs and travel expenses, including

11 uniforms, or allowances therefore, as authorized by 5

12 U.S.C. 5901–5902; services as authorized by 5 U.S.C.

13 3109, but at rates for individuals not to exceed the per

14 diem rate equivalent to the rate for GS–18; hire of pas15 senger motor vehicles; hire, maintenance, and operation

16 of aircraft; purchase of reprints; library memberships in

17 societies or associations which issue publications to mem18 bers only or at a price to members lower than to subscrib19 ers who are not members; construction, alteration, repair,

20 rehabilitation, and renovation of facilities, not to exceed

21 $75,000 per project; and not to exceed $6,000 for official

22 reception and representation expenses,

23 Ω58æ$1,703,000,000 (increased by $1,500,000)

24 $1,713,000,000, which shall remain available until Septem25 ber 30, 1998.
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1 OFFICE OF INSPECTOR GENERAL

2 For necessary expenses of the Office of Inspector

3 General in carrying out the provisions of the Inspector

4 General Act of 1978, as amended, and for construction,

5 alteration, repair, rehabilitation, and renovation of facili6 ties, not to exceed $75,000 per project, $28,500,000.

7 BUILDINGS AND FACILITIES

8 For construction, repair, improvement, extension, al9 teration, and purchase of fixed equipment or facilities of,

10 or for use by, the Environmental Protection Agency,

11 Ω59æ$107,220,000 $27,220,000, to remain available until

12 expendedΩ60æ:–Provided, That EPA is authorized to es13 tablish and construct a consolidated research facility at

14 Research Triangle Park, North Carolina, at a maximum

15 total construction cost of $232,000,000, and to obligate

16 such monies as are made available by this Act for this

17 purpose: Provided further, That EPA is authorized to con18 struct such facility through multi-year contracts incremen19 tally funded through appropriations hereafter made avail20 able for this project: Provided further, That, notwithstand21 ing the previous provisos, for monies obligated pursuant

22 to this authority, EPA may not obligate monies in excess

23 of those provided in advance in annual appropriations, and

24 such contracts shall clearly provide for this limitation.
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1 HAZARDOUS SUBSTANCE SUPERFUND

2 (INCLUDING TRANSFER OF FUNDS)

3 For necessary expenses to carry out the Comprehen4 sive Environmental Response, Compensation, and Liabil5 ity Act of 1980 (CERCLA), as amended, including sec6 tions 111 (c)(3), (c)(5), (c)(6), and (e)(4) (42 U.S.C.

7 9611), and for construction, alteration, repair, rehabilita8 tion, and renovation of facilities, not to exceed $75,000

9 per project; not to exceed Ω61æ$2,201,200,000

10 $1,394,245,000 (of which $100,000,000 shall not become

11 available until September 1, 1997), to remain available

12 until expended, consisting of Ω62æ$1,951,200,000

13 $1,144,245,000 as authorized by section 517(a) of the

14 Superfund Amendments and Reauthorization Act of 1986

15 (SARA), as amended by Public Law 101–508, and

16 $250,000,000 as a payment from general revenues to the

17 Hazardous Substance Superfund as authorized by section

18 517(b) of SARA, as amended by Public Law 101–508:

19 Provided, That funds appropriated under this heading

20 may be allocated to other Federal agencies in accordance

21 with section 111(a) of CERCLA: Provided further, That

22 $11,000,000 of the funds appropriated under this heading

23 shall be transferred to the ‘‘Office of Inspector General’’

24 appropriation to remain available until September 30,

25 1997: Provided further, That notwithstanding section
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1 111(m) of CERCLA or any other provision of law, not

2 to exceed Ω63æ$59,000,000 $64,000,000 of the funds ap3 propriated under this heading shall be available to the

4 Agency for Toxic Substances and Disease Registry to

5 carry out activities described in sections 104(i), 111(c)(4),

6 and 111(c)(14) of CERCLA and section 118(f) of the

7 Superfund Amendments and Reauthorization Act of 1986:

8 Provided further, That $35,000,000 of the funds appro9 priated under this heading shall be transferred to the

10 ‘‘Science and technology’’ appropriation to remain avail11 able until September 30, 1998: Provided further, That

12 none of the funds appropriated under this heading shall

13 be available for the Agency for Toxic Substances and Dis14 ease Registry to issue in excess of 40 toxicological profiles

15 pursuant to section 104(i) of CERCLA during fiscal year

16 1997Ω64æ:–Provided further, That $861,000,000 of the

17 funds appropriated under this heading shall become avail18 able for obligation only upon the enactment of future ap19 propriations legislation that specifically makes these funds

20 available for obligationΩ65æ: Provided further, That

21 $1,200,000 of the funds appropriatated under this head22 ing shall be used by the Agency for Toxic Substances and

23 Disease Registry to conduct a health effects study of the

24 Toms River Cancer Cluster in the Toms River area in the

25 State of New Jersey.
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1 LEAKING UNDERGROUND STORAGE TANK TRUST FUND

2 (INCLUDING TRANSFER OF FUNDS)

3 For necessary expenses to carry out leaking under4 ground storage tank cleanup activities authorized by sec5 tion 205 of the Superfund Amendments and Reauthoriza6 tion Act of 1986, and for construction, alteration, repair,

7 rehabilitation, and renovation of facilities, not to exceed

8 $75,000 per project, Ω66æ$46,500,000 (increased by

9 $20,000,000) $60,000,000, to remain available until ex10 pended: Provided, That no more than $7,000,000 shall be

11 available for administrative expenses: Provided further,

12 That $577,000 shall be transferred to the ‘‘Office of In13 spector General’’ appropriation to remain available until

14 September 30, 1997.

15 OIL SPILL RESPONSE

16 (INCLUDING TRANSFER OF FUNDS)

17 For expenses necessary to carry out the Environ18 mental Protection Agency’s responsibilities under the Oil

19 Pollution Act of 1990, $15,000,000, to be derived from

20 the Oil Spill Liability trust fund, and to remain available

21 until expended: Provided, That not more than $8,000,000

22 of these funds shall be available for administrative ex23 penses.
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1 STATE AND TRIBAL ASSISTANCE GRANTS

2 For environmental programs and infrastructure as3 sistance, including capitalization grants for State revolv4 ing funds and performance partnership grants,

5 Ω67æ$2,768,207,000 $2,815,207,000, to remain available

6 until expended, of which Ω68æ$1,800,000,000

7 $1,976,000,000 shall be for making capitalization grants

8 for State revolving funds to support water infrastructure

9 financing; $100,000,000 for architectural, engineering,

10 planning, design, construction and related activities in

11 connection with the construction of high priority water

12 and wastewater facilities in the area of the United States13 Mexico Border, after consultation with the appropriate

14 border commission; $50,000,000 for grants to the State

15 of Texas, which shall be matched by an equal amount of

16 State funds from State resources, for the purpose of im17 proving wastewater treatment for colonias; $15,000,000

18 for grants to the State of Alaska subject to an appropriate

19 cost share as determined by the Administrator, to address

20 Ω69æwater supply and wastewater infrastructure needs of

21 rural and Alaska Native Villages; Ω70æ$129,000,000 for

22 making grants for the construction of wastewater treat23 ment facilities and the development of groundwater in ac24 cordance with the terms and conditions specified for such

25 grants in the Report accompanying this Act; and
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1 $674,207,000 for grants to States and federally recog2 nized tribes for multi-media or single media pollution pre3 vention, control and abatement and related activities pur4 suant to the provisions set forth under this heading in

5 Public Law 104–134: Provided, That, from funds appro6 priated under this heading, the Administrator may make

7 grants to federally recognized Indian governments for the

8 development of multi-media environmental programs:

9 Ω71æProvided further, That notwithstanding any other

10 provision of law, beginning in fiscal year 1997 the Admin11 istrator may make grants to States, from funds available

12 for obligation in the State under title II of the Federal

13 Water Pollution Control Act, as amended, for administering

14 the completion and closeout of the State’s construction

15 grants program, based on a budget annually negotiated

16 with the State: Provided further, That of the

17 Ω72æ$1,800,000,000 $1,976,000,000 for capitalization

18 grants for State revolving funds to support water infra19 structure financing, Ω73æ$450,000,000 $1,275,000,000

20 shall be for drinking water State revolving fundsΩ74æ, but

21 if no drinking water State revolving fund legislation is en22 acted by June 1, 1997, these funds shall immediately be

23 available for making capitalization grants under title VI

24 of the Federal Water Pollution Control Act, as amended

25 Ω75æ: Provided further, That the funds made available in
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1 Public Law 103–327 for a grant to the City of Bangor,

2 Maine, in accordance with House Report 103–715, shall be

3 available for a grant to that city for meeting combined

4 sewer overflow requirements Ω76æ: Provided further, That,

5 notwithstanding any other provision of law, a State that

6 did not receive, in fiscal year 1996, grants under title VI

7 of the Federal Water Pollution Control Act, as amended,

8 that obligated all the funds allotted to it from the

9 $725,000,000 that became available for that purpose on Au10 gust 1, 1996, may receive reallotted funds from the fiscal

11 year 1996 appropriation, provided the State receives such

12 grants in fiscal year 1997.

13 WORKING CAPITAL FUND

14 (INCLUDING TRANSFER OF FUNDS)

15 There is hereby established in the Treasury a fran16 chise fund pilot to be known as the ‘‘Working capital

17 fund’’, as authorized by section 403 of Public Law 103–

18 356, to be available as provided in such section for ex19 penses and equipment necessary for the maintenance and

20 operation of such administrative services as the Adminis21 trator determines may be performed more advantageously

22 as central services: Provided, That any inventories, equip23 ment, and other assets pertaining to the services to be pro24 vided by such fund, either on hand or on order, less the

25 related liabilities or unpaid obligations, and any appropria-
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1 tions made hereafter for the purpose of providing capital,

2 shall be used to capitalize such fund: Provided further,

3 That such fund shall be paid in advance from funds avail4 able to the Agency and other Federal agencies for which

5 such centralized services are performed, at rates which will

6 return in full all expenses of operation, including accrued

7 leave, depreciation of fund plant and equipment, amortiza8 tion of automated data processing (ADP) software and

9 systems (either acquired or donated), and an amount nec10 essary to maintain a reasonable operating reserve, as de11 termined by the Administrator: Provided further, That

12 such fund shall provide services on a competitive basis:

13 Provided further, That an amount not to exceed four per14 cent of the total annual income to such fund may be re15 tained in the fund for fiscal year 1997 and each fiscal

16 year thereafter, to remain available until expended, to be

17 used for the acquisition of capital equipment and for the

18 improvement and implementation of Agency financial

19 management, ADP, and other support systems: Provided

20 further, That no later than thirty days after the end of

21 each fiscal year amounts in excess of this reserve limita22 tion shall be transferred to the Treasury: Provided further,

23 That such franchise fund pilot shall terminate pursuant

24 to section 403(f) of Public Law 103–356.
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1 Ω77æADMINISTRATIVE PROVISION

2 SEC. 301. Notwithstanding any other provision of

3 law, funds made available in this Act to the Environmental

4 Protection Agency for any account, program or project

5 may be transferred to Science and Technology for nec6 essary research activities, subject to the terms and condi7 tions set forth in the Report accompanying this Act.

8 EXECUTIVE OFFICE OF THE PRESIDENT

9 OFFICE OF SCIENCE AND TECHNOLOGY POLICY

10 For necessary expenses of the Office of Science and

11 Technology Policy, in carrying out the purposes of the Na12 tional Science and Technology Policy, Organization, and

13 Priorities Act of 1976 (42 U.S.C. 6601 and 6671), hire

14 of passenger motor vehicles, and services as authorized by

15 5 U.S.C. 3109, not to exceed $2,500 for official reception

16 and representation expenses, and rental of conference

17 rooms in the District of Columbia, $4,932,000.

18 COUNCIL ON ENVIRONMENTAL QUALITY AND OFFICE OF

19 ENVIRONMENTAL QUALITY

20 For necessary expenses to continue functions as21 signed to the Council on Environmental Quality and Office

22 of Environmental Quality pursuant to the National Envi23 ronmental Policy Act of 1969, the Environmental Quality

24 Improvement Act of 1970, and Reorganization Plan No.

25 1 of 1977, Ω78æ$2,250,000 $2,436,000.
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1 FEDERAL EMERGENCY MANAGEMENT AGENCY

2 DISASTER RELIEF

3 For necessary expenses in carrying out the Robert

4 T. Stafford Disaster Relief and Emergency Assistance Act

5 (42 U.S.C. 5121 et seq.), Ω79æ$1,120,000,000

6 $1,320,000,000, and, notwithstanding 42 U.S.C. 5203, to

7 become available for obligation on September 30, 1997,

8 and remain available until expended Ω80æ: Provided, That

9 no money appropriated for the Federal Emergency Manage10 ment Agency may be expended for the repair of yacht har11 bors or golf courses except for debris removal: Provided fur12 ther, That no money appropriated for the Federal Emer13 gency Management Agency may be expended for tree or

14 shrub replacement except in public parks: Provided further,

15 That any funds used for repair of any recreational facilities

16 shall be limited to debris removal and the repair of rec17 reational buildings only.

18 DISASTER ASSISTANCE DIRECT LOAN PROGRAM ACCOUNT

19 For the cost of direct loans, $1,385,000, as author20 ized by section 319 of the Robert T. Stafford Disaster Re21 lief and Emergency Assistance Act (42 U.S.C. 5121 et

22 seq.): Provided, That such costs, including the cost of

23 modifying such loans, shall be as defined in section 502

24 of the Congressional Budget Act of 1974, as amended:

25 Provided further, That these funds are available to sub-
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1 sidize gross obligations for the principal amount of direct

2 loans not to exceed $25,000,000.

3 In addition, for administrative expenses to carry out

4 the direct loan program, $548,000.

5 SALARIES AND EXPENSES

6 For necessary expenses, not otherwise provided for,

7 including hire and purchase of motor vehicles (31 U.S.C.

8 1343); uniforms, or allowances therefor, as authorized by

9 5 U.S.C. 5901–5902; services as authorized by 5 U.S.C.

10 3109, but at rates for individuals not to exceed the per

11 diem rate equivalent to the rate for GS–18; expenses of

12 attendance of cooperating officials and individuals at

13 meetings concerned with the work of emergency prepared14 ness; transportation in connection with the continuity of

15 Government programs to the same extent and in the same

16 manner as permitted the Secretary of a Military Depart17 ment under 10 U.S.C. 2632; and not to exceed $2,500

18 for official reception and representation expenses,

19 Ω81æ$168,000,000 $166,733,000.

20 OFFICE OF INSPECTOR GENERAL

21 For necessary expenses of the Office of Inspector

22 General in carrying out the provisions of the Inspector

23 General Act of 1978, as amended, Ω82æ$4,533,000

24 $4,673,000.
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1 EMERGENCY MANAGEMENT PLANNING AND ASSISTANCE

2 For necessary expenses, not otherwise provided for,

3 to carry out activities under the National Flood Insurance

4 Act of 1968, as amended, and the Flood Disaster Protec5 tion Act of 1973, as amended (42 U.S.C. 4001 et seq.),

6 the Robert T. Stafford Disaster Relief and Emergency As7 sistance Act (42 U.S.C. 5121 et seq.), the Earthquake

8 Hazards Reduction Act of 1977, as amended (42 U.S.C.

9 7701 et seq.), the Federal Fire Prevention and Control

10 Act of 1974, as amended (15 U.S.C. 2201 et seq.), the

11 Defense Production Act of 1950, as amended (50 U.S.C.

12 App. 2061 et seq.), sections 107 and 303 of the National

13 Security Act of 1947, as amended (50 U.S.C. 404–405),

14 and Reorganization Plan No. 3 of 1978,

15 Ω83æ$209,101,000 $199,101,000.

16 EMERGENCY FOOD AND SHELTER PROGRAM

17 To carry out an emergency food and shelter program

18 pursuant to title III of Public Law 100–77, as amended,

19 $100,000,000: Provided, That total administrative costs

20 shall not exceed three and one-half percent of the total

21 appropriation.

22 NATIONAL FLOOD INSURANCE FUND

23 For activities under the National Flood Insurance

24 Act of 1968, the Flood Disaster Protection Act of 1973,

25 and the National Flood Insurance Reform Act of 1994,
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1 not to exceed $20,981,000 for salaries and expenses asso2 ciated with flood mitigation and flood insurance oper3 ations, and not to exceed $78,464,000 for flood mitigation,

4 including up to $20,000,000 for expenses under section

5 1366 of the National Flood Insurance Act, which amount

6 shall be available until September 30, 1998. Ω84æThe first

7 sentence of section 1376(c) of the National Flood Insurance

8 Act of 1968, as amended (42 U.S.C. 4026), is amended by

9 striking all after ‘‘this subchapter’’ and inserting ‘‘such

10 sums as may be necessary through September 30, 1997 for

11 studies under this title’’. In fiscal year 1997, no funds in

12 excess of (1) $47,000,000 for operating expenses, (2)

13 $335,680,000 for agents’ commissions and taxes, and (3)

14 $35,000,000 for interest on Treasury borrowings shall be

15 available from the National Flood Insurance Fund without

16 prior notice to the Committees on Appropriations. For fis17 cal year 1997, flood insurance rates shall not exceed the

18 level authorized by the National Flood Insurance Reform

19 Act of 1994. Ω85æSection 1319 of the National Flood In20 surance Act of 1968, as amended (42 U.S.C. 4026), is

21 amended by striking out September 30, 1996.’’ and insert22 ing ‘‘September 30, 1997’’.

23 WORKING CAPITAL FUND

24 For the establishment of a working capital fund for

25 the Federal Emergency Management Agency, to be avail26 able without fiscal year limitation, for expenses and equip-
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1 ment necessary for maintenance and operations of such

2 administrative services as the Director determines may be

3 performed more advantageously as central services: Pro4 vided, That any inventories, equipment, and other assets

5 pertaining to the services to be provided by such fund, ei6 ther on hand or on order, less the related liabilities or un7 paid obligations, and any appropriations made hereafter

8 for the purpose of providing capital, shall be used to cap9 italize such fund: Provided further, That such fund shall

10 be reimbursed or credited with advance payments from ap11 plicable appropriations and funds of the Federal Emer12 gency Management Agency, other Federal agencies, and

13 other sources authorized by law for which such centralized

14 services are performed, including supplies, materials, and

15 services, at rates that will return in full all expenses of

16 operation, including accrued leave, depreciation of fund

17 plant and equipment, amortization of automated data

18 processing (ADP) software and systems (either acquired

19 or donated), and an amount necessary to maintain a rea20 sonable operating reserve as determined by the Director:

21 Provided further, That income of such fund may be re22 tained, to remain available until expended, for purposes

23 of the fund: Provided further, That fees for services shall

24 be established by the Director at a level to cover the total

25 estimated costs of providing such services, such fees to be
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1 deposited in the fund shall remain available until expended

2 for purposes of the fund: Provided further, That such fund

3 shall terminate in a manner consistent with section 403(f)

4 of Public Law 103–356.

5 ADMINISTRATIVE PROVISION

6 The Director of the Federal Emergency Management

7 Agency shall promulgate through rulemaking a methodol8 ogy for assessment and collection of fees to be assessed

9 and collected beginning in fiscal year 1997 applicable to

10 persons subject to the Federal Emergency Management

11 Agency’s radiological emergency preparedness regulations.

12 The aggregate charges assessed pursuant to this section

13 during fiscal year 1997 shall approximate, but not be less

14 than, 100 per centum of the amounts anticipated by the

15 Federal Emergency Management Agency to be obligated

16 for its radiological emergency preparedness program for

17 such fiscal year. The methodology for assessment and col18 lection of fees shall be fair and equitable, and shall reflect

19 the full amount of costs of providing radiological emer20 gency planning, preparedness, response and associated

21 services. Such fees shall be assessed in a manner that re22 flects the use of agency resources for classes of regulated

23 persons and the administrative costs of collecting such

24 fees. Fees received pursuant to this section shall be depos25 ited in the general fund of the Treasury as offsetting re-
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1 ceipts. Assessment and collection of such fees are only au2 thorized during fiscal year 1997.

3 GENERAL SERVICES ADMINISTRATION

4 CONSUMER INFORMATION CENTER FUND

5 For necessary expenses of the Consumer Information

6 Center, including services authorized by 5 U.S.C. 3109,

7 $2,260,000, to be deposited into the Consumer Informa8 tion Center Fund: Provided, That the appropriations, rev9 enues and collections deposited into the fund shall be

10 available for necessary expenses of Consumer Information

11 Center activities in the aggregate amount of $7,500,000.

12 Ω86æAdministrative expenses of the Consumer Informa13 tion Center in fiscal year 1997 shall not exceed

14 $2,602,000. Appropriations, revenues, and collections ac15 cruing to this fund during fiscal year 1997 in excess of

16 $7,500,000 shall remain in the fund and shall not be avail17 able for expenditure except as authorized in appropria18 tions ActsΩ87æ:–Provided further, That notwithstanding

19 any other provision of law, the Consumer Information

20 Center may accept and deposit to this account, during fis21 cal year 1997, gifts for the purpose of defraying its costs

22 of printing, publishing, and distributing consumer infor23 mation and educational material; may expend up to

24 $1,100,000 of those gifts for those purposes, in addition

25 to amounts otherwise appropriated; and the balance shall
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1 remain available for expenditure for such purpose to the

2 extent authorized in subsequent appropriations Acts: Pro3 vided further, That notwithstanding any other provision of

4 law, the Consumer Information Center may accept and de5 posit to this account, during fiscal year 1997 and hereafter,

6 gifts for the purpose of defraying its costs of printing, pub7 lishing, and distributing consumer information and edu8 cational materials and undertaking other consumer infor9 mation activities; may expend those gifts for those purposes,

10 in addition to amounts appropriated or otherwise made

11 available; and the balance shall remain available for ex12 penditure for such purpose.

13 NATIONAL AERONAUTICS AND SPACE ADMINISTRATION

14 HUMAN SPACE FLIGHT

15 For necessary expenses, not otherwise provided for,

16 in the conduct and support of human space flight research

17 and development activities, including research, develop18 ment, operations, and services; maintenance; construction

19 of facilities including repair, rehabilitation, and modifica20 tion of real and personal property, and acquisition or con21 demnation of real property, as authorized by law; space

22 flight, spacecraft control and communications activities in23 cluding operations, production, and services; and pur24 chase, lease, charter, maintenance and operation of mis-
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1 sion and administrative aircraft, $5,362,900,000, to re2 main available until September 30, 1998.

3 SCIENCE, AERONAUTICS AND TECHNOLOGY

4 For necessary expenses, not otherwise provided for,

5 in the conduct and support of science, aeronautics and

6 technology research and development activities, including

7 research, development, operations, and services; mainte8 nance; construction of facilities including repair, rehabili9 tation, and modification of real and personal property, and

10 acquisition or condemnation of real property, as author11 ized by law; space flight, spacecraft control and commu12 nications activities including operations, production, and

13 services; and purchase, lease, charter, maintenance and

14 operation of mission and administrative aircraft,

15 Ω88æ$5,662,100,000 $5,762,100,000, to remain available

16 until September 30, 1998. Chapter VII of Public Law

17 104–6 is amended under the heading, ‘‘National Aero18 nautics and Space Administration’’ by replacing ‘‘Septem19 ber 30, 1997’’ with ‘‘September 30, 1998’’ and ‘‘1996’’

20 with ‘‘1997’’.

21 MISSION SUPPORT

22 For necessary expenses, not otherwise provided for,

23 in carrying out mission support for human space flight

24 programs and science, aeronautical, and technology pro25 grams, including research operations and support; space
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1 communications activities including operations, production

2 and services; maintenance; construction of facilities in3 cluding repair, rehabilitation, and modification of facili4 ties, minor construction of new facilities and additions to

5 existing facilities, facility planning and design, environ6 mental compliance and restoration, and acquisition or con7 demnation of real property, as authorized by law; program

8 management; personnel and related costs, including uni9 forms or allowances therefor, as authorized by 5 U.S.C.

10 5901–5902; travel expenses; purchase, lease charter,

11 maintenance, and operation of mission and administrative

12 aircraft; not to exceed $35,000 for official reception and

13 representation expenses; and purchase (not to exceed 33

14 for replacement only) and hire of passenger motor vehi15 cles; $2,562,200,000, to remain available until September

16 30, 1998.

17 OFFICE OF INSPECTOR GENERAL

18 For necessary expenses of the Office of Inspector

19 General in carrying out the Inspector General Act of 1978,

20 as amended, $17,000,000.

21 ADMINISTRATIVE PROVISIONS

22 (INCLUDING TRANSFER OF FUNDS)

23 Notwithstanding the limitation on the availability of

24 funds appropriated for ‘‘Human space flight’’, ‘‘Science,

25 aeronautics and technology’’, or ‘‘Mission support’’ by this

26 appropriations Act, when (1) any activity has been initi-
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1 ated by the incurrence of obligations for construction of

2 facilities as authorized by law, or (2) amounts are pro3 vided for full-funding for the Tracking and Data Relay

4 Satellite (TDRS) replenishment program, such amount

5 available for such activity shall remain available until ex6 pended. This provision does not apply to the amounts ap7 propriated in ‘‘Mission support’’ pursuant to the author8 ization for repair, rehabilitation and modification of facili9 ties, minor construction of new facilities and additions to

10 existing facilities, and facility planning and design.

11 Notwithstanding the limitation on the availability of

12 funds appropriated for ‘‘Human space flight’’, ‘‘Science,

13 aeronautics and technology’’, or ‘‘Mission support’’ by this

14 appropriations Act, the amounts appropriated for con15 struction of facilities shall remain available until Septem16 ber 30, 1999.

17 Notwithstanding the limitation on the availability of

18 funds appropriated for ‘‘Mission support’’ and ‘‘Office of

19 Inspector General’’, amounts made available by this Act

20 for personnel and related costs and travel expenses of the

21 National Aeronautics and Space Administration shall re22 main available until September 30, 1997 and may be used

23 to enter into contracts for training, investigations, cost as24 sociated with personnel relocation, and for other services,

25 to be provided during the next fiscal year.
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1 Ω89æIn order to avoid or minimize the need for invol2 untary separations due to a reduction in force, installation

3 closure, reorganization, transfer of function, or similar ac4 tion affecting the National Aeronautics and Space Admin5 istration, the Administrator shall establish a program

6 under which separation pay, subject to the availability of

7 appropriated funds, may be offered to encourage employees

8 to separate from service voluntarily, whether by retirement

9 or resignation: Provided, That payments to individual em10 ployees shall not exceed $25,000: Provided further, That in

11 addition to any other payments which it is required to

12 make under subchapter III of chapter 83 or chapter 84 of

13 title 5, United States Code, NASA shall remit to the Office

14 of Personnel Management for deposit in the Treasury of the

15 United States to the credit of the Civil Service Retirement

16 and Disability Fund an amount equal to 15 percent of the

17 final basic pay of each employee who is covered under sub18 chapter III of chapter 83 or chapter 84 of title 5 to whom

19 a voluntary separation incentive has been paid under this

20 paragraph.

21 NATIONAL CREDIT UNION ADMINISTRATION

22 CENTRAL LIQUIDITY FACILITY

23 During fiscal year 1997, gross obligations of the

24 Central Liquidity Facility for the principal amount of new

25 direct loans to member credit unions, as authorized by the
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1 National Credit Union Central Liquidity Facility Act (12

2 U.S.C. 1795), shall not exceed $600,000,000: Provided,

3 That administrative expenses of the Central Liquidity Fa4 cility in fiscal year 1997 shall not exceed $560,000: Pro5 vided further, That $1,000,000, together with amounts of

6 principal and interest on loans repaid, to be available until

7 expended, is available for loans to community development

8 credit unions.

9 NATIONAL SCIENCE FOUNDATION

10 RESEARCH AND RELATED ACTIVITIES

11 For necessary expenses in carrying out the National

12 Science Foundation Act of 1950, as amended (42 U.S.C.

13 1861–1875), and the Act to establish a National Medal

14 of Science (42 U.S.C. 1880–1881); services as authorized

15 by 5 U.S.C. 3109; maintenance and operation of aircraft

16 and purchase of flight services for research support; acqui17 sition of aircraft; Ω90æ$2,422,000,000 (increased by

18 $9,110,000) $2,432,000,000, of which not to exceed

19 $226,000,000 shall remain available until expended for

20 Polar research and operations support, and for reimburse21 ment to other Federal agencies for operational and science

22 support and logistical and other related activities for the

23 United States Antarctic program; the balance to remain

24 available until September 30, 1998: Provided, That re25 ceipts for scientific support services and materials fur-
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1 nished by the National Research Centers and other Na2 tional Science Foundation supported research facilities

3 may be credited to this appropriation: Provided further,

4 That to the extent that the amount appropriated is less

5 than the total amount authorized to be appropriated for

6 included program activities, all amounts, including floors

7 and ceilings, specified in the authorizing Act for those pro8 gram activities or their subactivities shall be reduced pro9 portionally.

10 MAJOR RESEARCH EQUIPMENT

11 For necessary expenses of major construction

12 projects pursuant to the National Science Foundation Act

13 of 1950, as amended, $80,000,000, to remain available

14 until expended.

15 EDUCATION AND HUMAN RESOURCES

16 For necessary expenses in carrying out science and

17 engineering education and human resources programs and

18 activities pursuant to the National Science Foundation

19 Act of 1950, as amended (42 U.S.C. 1861–1875), includ20 ing services as authorized by 5 U.S.C. 3109 and rental

21 of conference rooms in the District of Columbia,

22 Ω91æ$612,000,000 $624,000,000, to remain available until

23 September 30, 1998: Provided, That to the extent that

24 the amount of this appropriation is less than the total

25 amount authorized to be appropriated for included pro-
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1 gram activities, all amounts, including floors and ceilings,

2 specified in the authorizing Act for those program activi3 ties or their subactivities shall be reduced proportionally.

4 SALARIES AND EXPENSES

5 For necessary salaries and expenses of the National

6 Science Foundation Act of 1950, as amended (42 U.S.C.

7 1861–1875); services authorized by 5 U.S.C. 3109; hire

8 of passenger motor vehicles; not to exceed $9,000 for offi9 cial reception and representation expenses; uniforms or al10 lowances therefor, as authorized by 5 U.S.C. 5901–5902;

11 rental of conference rooms in the District of Columbia;

12 reimbursement of the General Services Administration for

13 security guard services and headquarters relocation;

14 $134,310,000 Ω92æ(reduced by $9,110,000): Provided,

15 That contracts may be entered into under salaries and ex16 penses in fiscal year 1997 for maintenance and operation

17 of facilities, and for other services, to be provided during

18 the next fiscal year.

19 OFFICE OF INSPECTOR GENERAL

20 For necessary expenses of the Office of Inspector

21 General as authorized by the Inspector General Act of

22 1978, as amended, $4,690,000, to remain available until

23 September 30, 1998.
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1 NEIGHBORHOOD REINVESTMENT CORPORATION

2 PAYMENT TO THE NEIGHBORHOOD REINVESTMENT

3 CORPORATION

4 For payment to the Neighborhood Reinvestment Cor5 poration for use in neighborhood reinvestment activities,

6 as authorized by the Neighborhood Reinvestment Corpora7 tion Act (42 U.S.C. 8101–8107), Ω93æ$50,000,000

8 $49,900,000.

9 SELECTIVE SERVICE SYSTEM

10 SALARIES AND EXPENSES

11 For necessary expenses of the Selective Service Sys12 tem, including expenses of attendance at meetings and of

13 training for uniformed personnel assigned to the Selective

14 Service System, as authorized by 5 U.S.C. 4101–4118 for

15 civilian employees; and not to exceed $1,000 for official

16 reception and representation expenses; $22,930,000: Pro17 vided, That during the current fiscal year, the President

18 may exempt this appropriation from the provisions of 31

19 U.S.C. 1341, whenever he deems such action to be nec20 essary in the interest of national defense: Provided further,

21 That none of the funds appropriated by this Act may be

22 expended for or in connection with the induction of any

23 person into the Armed Forces of the United States.
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1 TITLE IV—GENERAL PROVISIONS

2 SEC. 401. Where appropriations in titles I, II, and

3 III of this Act are expendable for travel expenses and no

4 specific limitation has been placed thereon, the expendi5 tures for such travel expenses may not exceed the amounts

6 set forth therefore in the budget estimates submitted for

7 the appropriations: Provided, Ω94æThat this provision does

8 not apply to accounts that do not contain an object classi9 fication for travel: Provided further, That this section shall

10 not apply to travel performed by uncompensated officials

11 of local boards and appeal boards of the Selective Service

12 System; to travel performed directly in connection with

13 care and treatment of medical beneficiaries of the Depart14 ment of Veterans Affairs; to travel performed in connec15 tion with major disasters or emergencies declared or deter16 mined by the President under the provisions of the Robert

17 T. Stafford Disaster Relief and Emergency Assistance

18 Act; to travel performed by the Offices of Inspector Gen19 eral in connection with audits and investigations; or to

20 payments to interagency motor pools where separately set

21 forth in the budget schedules: Provided further, That if

22 appropriations in titles I, II, and III exceed the amounts

23 set forth in budget estimates initially submitted for such

24 appropriations, the expenditures for travel may cor-
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1 respondingly exceed the amounts therefore set forth in the

2 estimates in the same proportion.

3 SEC. 402. Appropriations and funds available for the

4 administrative expenses of the Department of Housing

5 and Urban Development and the Selective Service System

6 shall be available in the current fiscal year for purchase

7 of uniforms, or allowances therefor, as authorized by 5

8 U.S.C. 5901–5902; hire of passenger motor vehicles; and

9 services as authorized by 5 U.S.C. 3109.

10 SEC. 403. Funds of the Department of Housing and

11 Urban Development subject to the Government Corpora12 tion Control Act or section 402 of the Housing Act of

13 1950 shall be available, without regard to the limitations

14 on administrative expenses, for legal services on a contract

15 or fee basis, and for utilizing and making payment for

16 services and facilities of Federal National Mortgage Asso17 ciation, Government National Mortgage Association, Fed18 eral Home Loan Mortgage Corporation, Federal Financ19 ing Bank, Federal Reserve banks or any member thereof,

20 Federal Home Loan banks, and any insured bank within

21 the meaning of the Federal Deposit Insurance Corporation

22 Act, as amended (12 U.S.C. 1811–1831).

23 SEC. 404. No part of any appropriation contained in

24 this Act shall remain available for obligation beyond the

25 current fiscal year unless expressly so provided herein.
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1 SEC. 405. No funds appropriated by this Act may be

2 expended—

3 (1) pursuant to a certification of an officer or

4 employee of the United States unless—

5 (A) such certification is accompanied by,

6 or is part of, a voucher or abstract which de7 scribes the payee or payees and the items or

8 services for which such expenditure is being

9 made, or

10 (B) the expenditure of funds pursuant to

11 such certification, and without such a voucher

12 or abstract, is specifically authorized by law;

13 and

14 (2) unless such expenditure is subject to audit

15 by the General Accounting Office or is specifically

16 exempt by law from such audit.

17 SEC. 406. None of the funds provided in this Act to

18 any department or agency may be expended for the trans19 portation of any officer or employee of such department

20 or agency between his domicile and his place of employ21 ment, with the exception of any officer or employee au22 thorized such transportation under 31 U.S.C. 1344 or 5

23 U.S.C. 7905.

24 SEC. 407. None of the funds provided in this Act may

25 be used for payment, through grants or contracts, to re-
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1 cipients that do not share in the cost of conducting re2 search resulting from proposals not specifically solicited

3 by the Government: Provided, That the extent of cost

4 sharing by the recipient shall reflect the mutuality of in5 terest of the grantee or contractor and the Government

6 in the research.

7 SEC. 408. None of the funds in this Act may be used,

8 directly or through grants, to pay or to provide reimburse9 ment for payment of the salary of a consultant (whether

10 retained by the Federal Government or a grantee) at more

11 than the daily equivalent of the rate paid for Level IV

12 of the Executive Schedule, unless specifically authorized

13 by law.

14 SEC. 409. None of the funds provided in this Act

15 shall be used to pay the expenses of, or otherwise com16 pensate, non-Federal parties intervening in regulatory or

17 adjudicatory proceedings. Nothing herein affects the au18 thority of the Consumer Product Safety Commission pur19 suant to section 7 of the Consumer Product Safety Act

20 (15 U.S.C. 2056 et seq.).

21 SEC. 410. Except as otherwise provided under exist22 ing law or under an existing Executive order issued pursu23 ant to an existing law, the obligation or expenditure of

24 any appropriation under this Act for contracts for any

25 consulting service shall be limited to contracts which are
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1 (1) a matter of public record and available for public in2 spection, and (2) thereafter included in a publicly available

3 list of all contracts entered into within twenty-four months

4 prior to the date on which the list is made available to

5 the public and of all contracts on which performance has

6 not been completed by such date. The list required by the

7 preceding sentence shall be updated quarterly and shall

8 include a narrative description of the work to be per9 formed under each such contract.

10 SEC. 411. Except as otherwise provided by law, no

11 part of any appropriation contained in this Act shall be

12 obligated or expended by any executive agency, as referred

13 to in the Office of Federal Procurement Policy Act (41

14 U.S.C. 401 et seq.), for a contract for services unless such

15 executive agency (1) has awarded and entered into such

16 contract in full compliance with such Act and the regula17 tions promulgated thereunder, and (2) requires any report

18 prepared pursuant to such contract, including plans, eval19 uations, studies, analyses and manuals, and any report

20 prepared by the agency which is substantially derived from

21 or substantially includes any report prepared pursuant to

22 such contract, to contain information concerning (A) the

23 contract pursuant to which the report was prepared, and

24 (B) the contractor who prepared the report pursuant to

25 such contract.
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1 SEC. 412. Except as otherwise provided in section

2 406, none of the funds provided in this Act to any depart3 ment or agency shall be obligated or expended to provide

4 a personal cook, chauffeur, or other personal servants to

5 any officer or employee of such department or agency.

6 SEC. 413. None of the funds provided in this Act to

7 any department or agency shall be obligated or expended

8 to procure passenger automobiles as defined in 15 U.S.C.

9 2001 with an EPA estimated miles per gallon average of

10 less than 22 miles per gallon.

11 SEC. 414. None of the funds appropriated in title I

12 of this Act shall be used to enter into any new lease of

13 real property if the estimated annual rental is more than

14 $300,000 unless the Secretary submits, in writing, a re15 port to the Committees on Appropriations of the Congress

16 and a period of 30 days has expired following the date

17 on which the report is received by the Committees on Ap18 propriations.

19 SEC. 415. (a) PURCHASE OF AMERICAN-MADE

20 EQUIPMENT AND PRODUCTS.—It is the sense of the Con21 gress that, to the greatest extent practicable, all equip22 ment and products purchased with funds made available

23 in this Act should be American-made.

24 (b) NOTICE REQUIREMENT.—In providing financial

25 assistance to, or entering into any contract with, any en-
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1 tity using funds made available in this Act, the head of

2 each Federal agency, to the greatest extent practicable,

3 shall provide to such entity a notice describing the state4 ment made in subsection (a) by the Congress.

5 SEC. 416. None of the funds appropriated in this Act

6 may be used to implement any cap on reimbursements to

7 grantees for indirect costs, except as published in Office

8 of Management and Budget Circular A–21.

9 SEC. 417. Such sums as may be necessary for fiscal

10 year 1997 pay raises for programs funded by this Act shall

11 be absorbed within the levels appropriated in this Act.

12 SEC. 418. None of the funds made available in this

13 Act may be used for any program, project, or activity,

14 when it is made known to the Federal entity or official

15 to which the funds are made available that the program,

16 project, or activity is not in compliance with any Federal

17 law relating to risk assessment, the protection of private

18 property rights, or unfunded mandates.

19 SEC. 419. Such funds as may be necessary to carry

20 out the orderly termination of the Office of Consumer Af21 fairs shall be made available from funds appropriated to

22 the Department of Health and Human Services for fiscal

23 year 1997.

24 SEC. 420. Corporations and agencies of the Depart25 ment of Housing and Urban Development which are sub-
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1 ject to the Government Corporation Control Act, as

2 amended, are hereby authorized to make such expendi3 tures, within the limits of funds and borrowing authority

4 available to each such corporation or agency and in accord

5 with law, and to make such contracts and commitments

6 without regard to fiscal year limitations as provided by

7 section 104 of the Act as may be necessary in carrying

8 out the programs set forth in the budget for 1997 for such

9 corporation or agency except as hereinafter provided: Pro10 vided, That collections of these corporations and agencies

11 may be used for new loan or mortgage purchase commit12 ments only to the extent expressly provided for in this Act

13 (unless such loans are in support of other forms of assist14 ance provided for in this or prior appropriations Acts), ex15 cept that this proviso shall not apply to the mortgage in16 surance or guaranty operations of these corporations, or

17 where loans or mortgage purchases are necessary to pro18 tect the financial interest of the United States Govern19 ment.

20 Ω95æSEC. 421. (a) The purpose of this section is to

21 provide for the special needs of certain children of Vietnam

22 veterans who were born with the birth defect spina bifida,

23 possibly as the result of the exposure of one or both parents

24 to herbicides during active service in the Republic of Viet-
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1 nam during the Vietnam era, through the provision of

2 health care and monetary benefits.

3 (b)(1) Part II of title 38, United States Code, is

4 amended by inserting after chapter 17 the following new

5 chapter:

6 ‘‘CHAPTER 18—BENEFITS FOR CHILDREN

7 OF VIETNAM VETERANS WHO ARE

8 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.

9 ‘‘§ 1801. Definitions

10 ‘‘For the purposes of this chapter—

11 ‘‘(1) The term ‘child’, with respect to a Vietnam

12 veteran, means a natural child of the Vietnam vet13 eran, regardless of age or marital status, who was

14 conceived after the date on which the veteran first en15 tered the Republic of Vietnam during the Vietnam

16 era.

17 ‘‘(2) The term ‘Vietnam veteran’ means a vet18 eran who performed active military, naval, or air

19 service in the Republic of Vietnam during the Viet20 nam era.
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1 ‘‘§ 1802. Spina bifida conditions covered

2 ‘‘This chapter applies with respect to all forms and

3 manifestations of spina bifida except spina bifida occulta.

4 ‘‘§ 1803. Health care

5 ‘‘(a) In accordance with regulations which the Sec6 retary shall prescribe, the Secretary shall provide a child

7 of a Vietnam veteran who is suffering from spina bifida

8 with such health care as the Secretary determines is needed

9 by the child for the spina bifida or any disability that is

10 associated with such condition.

11 ‘‘(b) The Secretary may provide health care under this

12 section directly or by contract or other arrangement with

13 any health care provider.

14 ‘‘(c) For the purposes of this section—

15 ‘‘(1) The term ‘health care’—

16 ‘‘(A) means home care, hospital care, nurs17 ing home care, outpatient care, preventive care,

18 habilitative and rehabilitative care, case man19 agement, and respite care; and

20 ‘‘(B) includes—

21 ‘‘(i) the training of appropriate mem22 bers of a child’s family or household in the

23 care of the child; and

24 ‘‘(ii) the provision of such pharma25 ceuticals, supplies, equipment, devices, ap26 pliances, assistive technology, direct trans-
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1 portation costs to and from approved

2 sources of health care, and other materials

3 as the Secretary determines necessary.

4 ‘‘(2) The term ‘health care provider’ includes

5 specialized spina bifida clinics, health care plans, in6 surers, organizations, institutions, and any other en7 tity or individual who furnishes health care that the

8 Secretary determines authorized under this section.

9 ‘‘(3) The term ‘home care’ means outpatient

10 care, habilitative and rehabilitative care, preventive

11 health services, and health-related services furnished

12 to an individual in the individual’s home or other

13 place of residence.

14 ‘‘(4) The term ‘hospital care’ means care and

15 treatment for a disability furnished to an individual

16 who has been admitted to a hospital as a patient.

17 ‘‘(5) The term ‘nursing home care’ means care

18 and treatment for a disability furnished to an indi19 vidual who has been admitted to a nursing home as

20 a resident.

21 ‘‘(6) The term ‘outpatient care’ means care and

22 treatment of a disability, and preventive health serv23 ices, furnished to an individual other than hospital

24 care or nursing home care.
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1 ‘‘(7) The term ‘preventive care’ means care and

2 treatment furnished to prevent disability or illness,

3 including periodic examinations, immunizations, pa4 tient health education, and such other services as the

5 Secretary determines necessary to provide effective

6 and economical preventive health care.

7 ‘‘(8) The term ‘habilitative and rehabilitative

8 care’ means such professional, counseling, and guid9 ance services and treatment programs (other than vo10 cational training under section 1804 of this title) as

11 are necessary to develop, maintain, or restore, to the

12 maximum extent practicable, the functioning of a dis13 abled person.

14 ‘‘(9) The term ‘respite care’ means care furnished

15 on an intermittent basis for a limited period to an

16 individual who resides primarily in a private resi17 dence when such care will help the individual to con18 tinue residing in such private residence.

19 ‘‘§ 1804. Vocational training and rehabilitation

20 ‘‘(a) Pursuant to such regulations as the Secretary

21 may prescribe, the Secretary may provide vocational train22 ing under this section to a child of a Vietnam veteran who

23 is suffering from spina bifida if the Secretary determines

24 that the achievement of a vocational goal by such child is

25 reasonably feasible.
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1 ‘‘(b) Any program of vocational training for a child

2 under this section shall be designed in consultation with

3 the child in order to meet the child’s individual needs and

4 shall be set forth in an individualized written plan of voca5 tional rehabilitation.

6 ‘‘(c)(1) A vocational training program for a child

7 under this section—

8 ‘‘(A) shall consist of such vocationally oriented

9 services and assistance, including such placement and

10 post-placement services and personal and work ad11 justment training, as the Secretary determines are

12 necessary to enable the child to prepare for and par13 ticipate in vocational training or employment; and

14 ‘‘(B) may include a program of education at an

15 institution of higher education if the Secretary deter16 mines that the program of education is predomi17 nantly vocational in content.

18 ‘‘(2) A vocational training program under this sub19 section may not include the provision of any loan or sub20 sistence allowance or any automobile adaptive equipment.

21 ‘‘(d)(1) Except as provided in paragraph (2) and sub22 ject to subsection (e)(2), a vocational training program

23 under this section may not exceed 24 months.

24 ‘‘(2) The Secretary may grant an extension of a voca25 tional training program for a child under this section for
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1 up to 24 additional months if the Secretary determines that

2 the extension is necessary in order for the child to achieve

3 a vocational goal identified (before the end of the first 24

4 months of such program) in the written plan of vocational

5 rehabilitation formulated for the child pursuant to sub6 section (b).

7 ‘‘(e)(1) A child who is pursuing a program of voca8 tional training under this section and is also eligible for

9 assistance under a program under chapter 35 of this title

10 may not receive assistance under both such programs con11 currently. The child shall elect (in such form and manner

12 as the Secretary may prescribe) the program under which

13 the child is to receive assistance.

14 ‘‘(2) The aggregate period for which a child may re15 ceive assistance under this section and chapter 35 of this

16 title may not exceed 48 months (or the part-time equivalent

17 thereof).

18 ‘‘§ 1805. Monetary allowance

19 ‘‘(a) The Secretary shall pay a monthly allowance

20 under this chapter to any child of a Vietnam veteran for

21 any disability resulting from spina bifida suffered by such

22 child.

23 ‘‘(b)(1) The amount of the allowance paid to a child

24 under this section shall be based on the degree of disability

25 suffered by the child, as determined in accordance with such
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1 schedule for rating disabilities resulting from spina bifida

2 as the Secretary may prescribe.

3 ‘‘(2) The Secretary shall, in prescribing the rating

4 schedule for the purposes of this section, establish three levels

5 of disability upon which the amount of the allowance pro6 vided by this section shall be based.

7 ‘‘(3) The amounts of the allowance shall be $200 per

8 month for the lowest level of disability prescribed, $700 per

9 month for the intermediate level of disability prescribed,

10 and $1,200 per month for the highest level of disability pre11 scribed. Such amounts are subject to adjustment under sec12 tion 5312 of this title.

13 ‘‘(c) Notwithstanding any other provision of law, re14 ceipt by a child of an allowance under this section shall

15 not impair, infringe, or otherwise affect the right of the

16 child to receive any other benefit to which the child may

17 otherwise be entitled under any law administered by the

18 Secretary, nor shall receipt of such an allowance impair,

19 infringe, or otherwise affect the right of any individual to

20 receive any benefit to which the individual is entitled under

21 any law administered by the Secretary that is based on the

22 child’s relationship to the individual.

23 ‘‘(d) Notwithstanding any other provision of law, the

24 allowance paid to a child under this section shall not be

25 considered income or resources in determining eligibility for
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1 or the amount of benefits under any Federal or federally

2 assisted program.

3 ‘‘§ 1806. Effective date of awards

4 ‘‘The effective date for an award of benefits under this

5 chapter shall be fixed in accordance with the facts found,

6 but shall not be earlier than the date of receipt of applica7 tion for the benefits.’’.

8 (2) The tables of chapters before part I and at the be9 ginning of part II of such title are each amended by insert10 ing after the item referring to chapter 17 the following new

11 item:

‘‘18. Benefits for Children of Vietnam Veterans Who Are

Born With Spina Bifida .......................................... 1801’’.

12 (c) Section 5312 of title 38, United States Code, is

13 amended—

14 (1) in subsection (a)—

15 (A) by striking out ‘‘and the rate of in16 creased pension’’ and inserting in lieu thereof ‘‘,

17 the rate of increased pension’’; and

18 (B) by inserting after ‘‘on account of chil19 dren,’’ the following: ‘‘and each rate of monthly

20 allowance paid under section 1805 of this title,’’;

21 and

22 (2) in subsection (c)(1), by striking out ‘‘and

23 1542’’ and inserting in lieu thereof ‘‘1542, and 1805’’.
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1 (d) This section and the amendments made by this sec2 tion shall take effect on January 1, 1997.

3 SEC. 422. (a) Section 1151 of title 38, United States

4 Code, is amended—

5 (1) by striking out the first sentence and insert6 ing in lieu thereof the following:

7 ‘‘(a) Compensation under this chapter and dependency

8 and indemnity compensation under chapter 13 of this title

9 shall be awarded for a qualifying additional disability or

10 a qualifying death of a veteran in the same manner as if

11 such additional disability or death were service-connected.

12 For purposes of this section, a disability or death is a quali13 fying additional disability or qualifying death if the dis14 ability or death was not the result of the veteran’s willful

15 misconduct and—

16 ‘‘(1) the disability or death was caused by hos17 pital care, medical or surgical treatment, or examina18 tion furnished the veteran under any law adminis19 tered by the Secretary, either by a Department em20 ployee or in a Department facility as defined in sec21 tion 1701(3)(A) of this title, and the proximate cause

22 of the disability or death was—

23 ‘‘(A) carelessness, negligence, lack of proper

24 skill, error in judgment, or similar instance of

25 fault on the part of the Department in furnish-
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1 ing the hospital care, medical or surgical treat2 ment, or examination; or

3 ‘‘(B) an event not reasonably foreseeable; or

4 ‘‘(2) the disability or death was proximately

5 caused by the provision of training and rehabilitation

6 services by the Secretary (including by a service-pro7 vider used by the Secretary for such purpose under

8 section 3115 of this title) as part of an approved re9 habilitation program under chapter 31 of this title.’’;

10 and

11 (2) in the second sentence—

12 (A) by redesignating that sentence as sub13 section (b);

14 (B) by striking out ‘‘, aggravation,’’ both

15 places it appears; and

16 (C) by striking out ‘‘sentence’’ and sub17 stituting in lieu thereof ‘‘subsection’’.

18 (b)(1) The amendments made by subsection (a) shall

19 take effect on October 1, 1996.

20 (2) Section 1151 of title 38, United States Code (as

21 amended by subsection (a)), shall govern all administrative

22 and judicial determinations of eligibility for benefits under

23 such section that are made with respect to claims filed on

24 or after the effective date set forth in paragraph (1), includ25 ing those based on original applications and applications
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1 seeking to reopen, revise, reconsider, or otherwise readju2 dicate on any basis claims for benefits under such section

3 1151 or any provision of law that is a predecessor of such

4 section.

5 Ω96æSEC. 421. None of the funds appropriated or

6 otherwise made available by this Act may be used to pay

7 the salaries of personnel who approve a contract for the

8 purchase, lease, or acquisition in any manner of super9 computing equipment or services after a preliminary de10 termination, as defined in 19 U.S.C. 1673b, or final deter11 mination, as defined in 19 U.S.C. 1673d, by the Depart12 ment of Commerce that an organization providing such

13 supercomputing equipment or services has offered such

14 product at other than fair value.

15 Ω97æSEC. 422. None of the funds made available in

16 this Act for the National Aeronautics and Space Adminis17 tration may be used for the National Center for Science

18 Literacy, Education and Technology at the American Mu19 seum of Natural History.

20 Ω98æSEC. 423. (a) DENIAL OF FUNDS FOR PRE21 VENTING ROTC ACCESS TO CAMPUS.—None of the funds

22 made available in this Act may be provided by contract

23 or by grant (including a grant of funds to be available

24 for student aid) to an institution of higher education when

25 it is made known to the Federal official having authority
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1 to obligate or expend such funds that the institution (or

2 any subelement thereof) has a policy or practice (regard3 less of when implemented) that prohibits, or in effect pre4 vents—

5 (1) the maintaining, establishing, or operation

6 of a unit of the Senior Reserve Officer Training

7 Corps (in accordance with section 654 of title 10,

8 United States Code, and other applicable Federal

9 laws) at the institution (or subelement); or

10 (2) a student at the institution (or subelement)

11 from enrolling in a unit of the Senior Reserve Offi12 cer Training Corps at another institution of higher

13 education.

14 (b) EXCEPTION.—The limitation established in sub15 section (a) shall not apply to an institution of higher edu16 cation when it is made known to the Federal official hav17 ing authority to obligate or expend such funds that—

18 (1) the institution (or subelement) has ceased

19 the policy or practice described in such subsection;

20 or

21 (2) the institution has a longstanding policy of

22 pacifism based on historical religious affiliation.

23 Ω99æSEC. 424. (a) DENIAL OF FUNDS FOR PRE24 VENTING FEDERAL MILITARY RECRUITING ON CAM25 PUS.—None of the funds made available in this Act may
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1 be provided by contract or grant (including a grant of

2 funds to be available for student aid) to any institution

3 of higher education when it is made known to the Federal

4 official having authority to obligate or expend such funds

5 that the institution (or any subelement thereof) has a pol6 icy or practice (regardless of when implemented) that pro7 hibits, or in effect prevents—

8 (1) entry to campuses, or access to students

9 (who are 17 years of age or older) on campuses, for

10 purposes of Federal military recruiting; or

11 (2) access to the following information pertain12 ing to students (who are 17 years of age or older)

13 for purposes of Federal military recruiting: student

14 names, addresses, telephone listings, dates and

15 places of birth, levels of education, degrees received,

16 prior military experience, and the most recent pre17 vious educational institutions enrolled in by the stu18 dents.

19 (b) EXCEPTION.—The limitation established in sub20 section (a) shall not apply to an institution of higher edu21 cation when it is made known to the Federal official hav22 ing authority to obligate or expend such funds that—

23 (1) the institution (or subelement) has ceased

24 the policy or practice described in such subsection;

25 or
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1 (2) the institution has a longstanding policy of

2 pacifism based on historical religious affiliation.

3 Ω100æSEC. 425. None of the funds made available

4 in this Act may be obligated or expended to enter into

5 or renew a contract with an entity when it is made known

6 to the Federal official having authority to obligate or ex7 pend such funds that—

8 (1) such entity is otherwise a contractor with

9 the United States and is subject to the requirement

10 in section 4212(d) of title 38, United States Code,

11 regarding submission of an annual report to the Sec12 retary of Labor concerning employment of certain

13 veterans; and

14 (2) such entity has not submitted a report as

15 required by that section for the most recent year for

16 which such requirement was applicable to such en17 tity.

18 Ω101æSEC. 426. The amount provided in title I for

19 ‘‘Veterans Health Administration—Medical Care’’ is here20 by increased by, the amount provided in title I for ‘‘De21 partmental Administration—General operating expenses’’

22 is hereby increased by, and the total of the amounts of

23 budget authority provided in this Act for payments not

24 required by law for the fiscal year ending September 30,

25 1997 (other than any amount of budget authority provided
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1 in title I and any such amount provided in title III for

2 the American Battle Monuments Commission, the Court

3 of Veterans Appeals, or Cemeterial Expenses, Army), is

4 hereby reduced by, $40,000,000, $17,000,000, and 0.40

5 percent, respectively.

6 Ω102æSEC. 427. The amounts otherwise provided by

7 this Act are revised by increasing the amount made avail8 able for ‘‘Veterans Health Administration—Medical

9 Care’’, increasing the amount made available for ‘‘Veter10 ans Health Administration—Medical and Prosthetic Re11 search’’, reducing the amount made available for ‘‘Cor12 poration for National and Community Service—National

13 and Community Service Programs Operating Expenses’’,

14 and reducing the amount made available for ‘‘Corporation

15 for National and Community Service—Office of Inspector

16 General’’, by $20,000,000, $20,000,000, $365,000,000,

17 and $2,000,000, respectively.

18 Ω103æSEC. 428. None of the funds made available

19 in this Act may be used by the Environmental Protection

20 Agency to issue, reissue, or renew any approval or author21 ization for any facility to store or dispose of poly22 chlorinated biphenyls when it is made known to the Fed23 eral official having authority to obligate or expend such

24 funds that there is in effect at the time of the issuance,

25 reissuance, or renewal a rule authorizing any person to
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1 import into the customs territory of the United States for

2 treatment or disposal any polychlorinated biphenyls, or

3 polychlorinated biphenyl items, at concentrations of more

4 than 50 parts per million.

5 Ω104æSEC. 429. None of the funds made available

6 to the Environmental Protection Agency under the head7 ing ‘‘Hazardous Substance Superfund’’ may be used to

8 implement any retroactive liability discount reimburse9 ment described in the amendment made by section 201

10 of H.R. 2500, as introduced on October 18, 1995.

11 SEC. 430. FHA MORTGAGE INSURANCE PRE12 MIUMS.—Section 203(c)(2)(A) of the National Housing

13 Act (12 U.S.C. 1709(c)(2)(A)) is amended by inserting

14 after the first sentence the following new sentence: ‘‘In

15 the case of mortgage for which the mortgagor is a first16 time homebuyer who completes a program of counseling

17 with respect to the responsibilities and financial manage18 ment involved in homeownership that is approved by the

19 Secretary, the premium payment under this subparagraph

20 shall not exceed 2.0 percent of the amount of the original

21 insured principal obligation of the mortgage.’’.

22 SEC. 431. (a) AUTHORITY TO USE AMOUNTS BOR23 ROWED FROM FAMILY MEMBERS FOR DOWNPAYMENTS

24 ON FHA-INSURED LOANS.—Section 203(b)(9) of the Na25 tional Housing Act (12 U.S.C. 1709(b)(9)) is amended by
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1 inserting before the period at the end the following: ‘‘: Pro2 vided further, That for purposes of this paragraph, the

3 Secretary shall consider as cash or its equivalent any

4 amounts borrowed from a family member (as such term

5 is defined in section 201), subject only to the requirements

6 that, in any case in which the repayment of such borrowed

7 amounts is secured by a lien against the property, such

8 lien shall be subordinate to the mortgage and the sum of

9 the principal obligation of the mortgage and the obligation

10 secured by such lien may not exceed 100 percent of the

11 appraised value of the property plus any initial service

12 charges, appraisal, inspection, and other fees in connection

13 with the mortgage’’.

14 (b) DEFINITION OF FAMILY MEMBER.—Section 201

15 of the National Housing Act (12 U.S.C. 1707) is amended

16 by adding at the end the following new subsections:

17 ‘‘(e) The term ‘family member’ means, with respect

18 to a mortgagor under such section, a child, parent, or

19 grandparent of the mortgagor (or the mortgagor’s

20 spouse). In determining whether any of the relationships

21 referred to in the preceding sentence exist, a legally adopt22 ed son or daughter of an individual (and a child who is

23 a member of an individual’s household, if placed with such

24 individual by an authorized placement agency for legal

25 adoption by such individual), and a foster child of an indi-
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1 vidual, shall be treated as a child of such individual by

2 blood.

3 ‘‘(f) The term ‘child’ means, with respect to a mort4 gagor under such section, a son, stepson, daughter, or

5 stepdaughter of such mortgagor.’’.

6 Ω105æSEC. 432. Sections 401 and 402 of the bill,

7 H.R. 1708, 104th Congress, as introduced in the House

8 of Representatives on May 24, 1995, are hereby enacted

9 into law.

10 SEC. 432. CALCULATION OF DOWNPAYMENT.

11 Section 203(b) of the National Housing Act (12 U.S.C.

12 1709(b)) is amended by adding at the end the following new

13 paragraph:

14 ‘‘(10) ALASKA AND HAWAII.—

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

16 other provision of this subsection, with respect to

17 a mortgage originated in the State of Alaska or

18 the State of Hawaii, involve a principal obliga19 tion not in excess of the sum of—

20 ‘‘(i) the amount of the mortgage insur21 ance premium paid at the time the mort22 gage is insured; and

23 ‘‘(ii)(I) in the case of a mortgage for a

24 property with an appraised value equal to
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1 or less than $50,000, 98.75 percent of the

2 appraised value of the property;

3 ‘‘(II) in the case of a mortgage for a

4 property with an appraised value in excess

5 of $50,000 but not in excess of $125,000,

6 97.65 percent of the appraised value of the

7 property;

8 ‘‘(III) in the case of a mortgage for a

9 property with an appraised value in excess

10 of $125,000, 97.15 percent of the appraised

11 value of the property; or

12 ‘‘(IV) notwithstanding subclauses (II)

13 and (III), in the case of a mortgage for a

14 property with an appraised value in excess

15 of $50,000 that is located in an area of the

16 State for which the average closing cost ex17 ceeds 2.10 percent of the average, for the

18 State, of the sale price of properties located

19 in the State for which mortgages have been

20 executed, 97.75 percent of the appraised

21 value of the property.

22 ‘‘(B) AVERAGE CLOSING COST.—For pur23 poses of this paragraph, the term ‘average closing

24 cost’ means, with respect to a State, the average,

25 for mortgages executed for properties that are lo-
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1 cated within the State, of the total amounts (as

2 determined by the Secretary) of initial service

3 charges, appraisal, inspection, and other fees (as

4 the Secretary shall approve) that are paid in

5 connection with such mortgages.’’.

6 SEC. 433. DELEGATION OF SINGLE FAMILY MORTGAGE

7 INSURING AUTHORITY TO DIRECT ENDORSEMENT MORTGA8 GEES.—Title II of the National Housing Act (12 U.S.C.

9 1707 et seq.) is amended by adding at the end the following

10 new section:

11 ‘‘DELEGATION OF INSURING AUTHORITY TO DIRECT

12 ENDORSEMENT MORTGAGEES

13 ‘‘SEC. 256.(a) AUTHORITY.—The Secretary may dele14 gate, to one or more mortgages approved by the Secretary

15 under the direct endorsement program, the authority of the

16 Secretary under this Act to insure mortgages involving

17 property upon which there is located a dwelling designed

18 principally for occupancy by 1 to 4 families.

19 ‘‘(b) CONSIDERATIONS.—In determining whether to

20 delegate authority to a mortgagee under this section, the

21 Secretary shall consider the experience and performance of

22 the mortgagee compared to the default rate of all insured

23 mortgages in comparable markets, and such other factors

24 as the Secretary determines appropriate to minimize risk

25 of loss to the insurance funds under this Act.

26 ‘‘(c) ENFORCEMENT OF INSURANCE REQUIREMENTS.—
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1 ‘‘(1) IN GENERAL.—If the Secretary determines

2 that a mortgage insured by a mortgagee pursuant to

3 delegation of authority under this section was not

4 originated in accordance with the requirements estab5 lished by the Secretary, and the Secretary pays an in6 surance claim with respect to the mortgage within a

7 reasonable period specified by the Secretary, the Sec8 retary may require the mortgagee approved under

9 this section to indemnify the Secretary for the loss.

10 ‘‘(2) FRAUD OR MISREPRESENTATION.—If fraud

11 or misrepresentation was involved in connection with

12 the origination, the Secretary may require the mort13 gagee approved under this section to indemnify the

14 Secretary for the loss regardless of when an insurance

15 claim is paid.

16 ‘‘(d) TERMINATION OF MORTGAGEE’S AUTHORITY.—If

17 a mortgagee to which the Secretary has made a delegation

18 under this section violates the requirements and procedures

19 established by the Secretary or the Secretary determines

20 that other good cause exists, the Secretary may cancel a

21 delegation of authority under this section to the mortgagee

22 by giving notice to the mortgagee. Such a cancellation shall

23 be effective upon receipt of the notice by the mortgagee or

24 at a later date specified by the Secretary. A decision by
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1 the Secretary to cancel a delegation shall be final and con2 clusive and shall not be subject to judicial review.

3 ‘‘(e) REQUIREMENTS AND PROCEDURES.—Before ap4 proving a delegation under this section, the Secretary shall

5 issue regulations establishing appropriate requirements and

6 procedures, including requirements and procedures govern7 ing the indemnification of the Secretary by the Mortgagee.’’.

8 Ω106æSEC. 433. None of the funds made available

9 in this Act for the National Aeronautics and Space Admin10 istration may be used to carry out, or pay the salaries

11 of personnel who carry out, the Bion 11 and Bion 12

12 projects.

13 Ω107æSEC. 434. SENSE OF THE SENATE WITH REGARD TO

14 COMPLIANCE WITH INTERNATIONAL OBLIGA15 TIONS.

16 (a) FINDINGS.—Congress finds that—

17 (1) in response to a dispute settlement finding

18 against the United States by the World Trade Orga19 nization, the United States informed the World Trade

20 Organization on June 19, 1996, that the United

21 States intends to meet its international obligations to

22 the World Trade Organization with respect to the En23 vironmental Protection Agency’s requirements on im24 ported reformulated and conventional gasoline;
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1 (2) the Environmental Protection Agency has

2 initiated an open process to examine any and all op3 tions for compliance with international obligations of

4 the United States in which a key criterion will be

5 fully protecting public health and the environment;

6 and

7 (3) many United States environmental and in8 dustrial organizations are concerned about the ‘‘Regu9 lation of Fuels and Fuel Additives: Individual For10 eign Refinery Baseline Requirements for Reformu11 lated Gasoline’’ proposed on May 3, 1994 (59 Fed.

12 Reg. 84).

13 (b) SENSE OF THE SENATE.—It is the sense of the Sen14 ate that, in evaluating any option for compliance with

15 international obligations, the Administrator of the Envi16 ronmental Protection Agency should—

17 (1) take fully into account the protection of pub18 lic health and the environment and the international

19 obligations of the United States as a member of the

20 World Trade Organization;

21 (2) ensure that the compliance review process not

22 result in the degradation of the gasoline quality re23 quired by the Clean Air Act (42 U.S.C. 7401 et seq.)

24 with respect to conventional and reformulated gaso25 line;
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1 (3) not recognize individual foreign refiner base2 lines unless the Administrator determines that the is3 sues of auditing, inspection of foreign facilities, and

4 enforcement have been adequately addressed; and

5 (4) provide a full and open administrative proc6 ess in the formulation of any final rule.

7 Ω108æSEC. 435. IMPLEMENTATION OF COMPREHENSIVE CON8 SERVATION AND MANAGEMENT PLANS.

9 Notwithstanding section 320(g) of the Federal Water

10 Pollution Control Act (33 U.S.C. 1330(g)), funds made

11 available pursuant to authorization under such section for

12 fiscal year 1997 and prior fiscal years may be used for im13 plementing comprehensive conservation and management

14 plans.

15 Ω109æSEC. 436. (a) PLAN.—(1) The Secretary of Vet16 erans Affairs shall develop a plan for the allocation of

17 health care resources (including personnel and funds) of the

18 Department of Veterans Affairs among the health care Net19 works of the Department so as to ensure that veterans who

20 have similar economic status and eligibility priority and

21 who are eligible for medical care have similar access to such

22 care regardless of the region of the United States in which

23 such veterans reside.

24 (2) The plan shall—
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1 (A) reflect, to the maximum extent possible, the

2 Veterans Integrated Service Network developed by the

3 Department to account for forecasts in expected work4 load and to ensure fairness to facilities that provide

5 cost-efficient health care; and

6 (B) include—

7 (i) procedures to identify reasons for vari8 ations in operating costs among similar facilities

9 where Network allocations are based on similar

10 unit costs for similar services and workload;

11 (ii) ways to improve the allocation of re12 sources so as to promote efficient use of resources

13 and provision of quality health care;

14 (iii) adjustments to unit costs in subsection

15 (a) to reflect factors which directly influence the

16 cost of health care delivery within each Network

17 and where such factors are not under the control

18 of Network or Department management; and

19 (iv) include forecasts in expected workload

20 and consideration of the demand for VA health

21 care that may not be reflected in current work22 load projections.

23 (3) The Secretary shall prepare the plan in consulta24 tion with the Under Secretary of Health of the Department

25 of Veterans Affairs.
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1 (b) PLAN ELEMENTS.—The plan under subsection (a)

2 shall set forth—

3 (1) milestones for achieving the goal referred to

4 in paragraph (1) of that subsection; and

5 (2) a means of evaluating the success of the Sec6 retary in meeting the goal.

7 (c) SUBMITTAL TO CONGRESS.—The Secretary shall

8 submit to Congress the plan developed under subsection (a)

9 not later than 180 days after the date of the enactment of

10 this Act.

11 (d) IMPLEMENTATION.—The Secretary shall imple12 ment the plan developed under subsection (a) not later than

13 60 days after submitting the plan to Congress under sub14 section (c), unless within that time the Secretary notifies

15 Congress that the plan will not be implemented in that time

16 and includes with the notification an explanation why the

17 plan will not be implemented in that time.

18 Ω110æSEC. 437. GAO AUDIT ON STAFFING AND CON19 TRACTING.—The Comptroller General shall audit the oper20 ations of the Office of Federal Housing Enterprise Oversight

21 concerning staff organization, expertise, capacity, and con22 tracting authority to ensure that the office resources and

23 contract authority are adequate and that they are being

24 used appropriately to ensure that the Federal National

25 Mortgage Association and the Federal Home Loan Mortgage
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1 Corporation are adequately capitalized and operating safe2 ly.

3 Ω111æSEC. 438. None of the funds appropriated or

4 otherwise made available to the National Aeronautics and

5 Space Administration by this Act, or any other Act enacted

6 before the date of the enactment of this Act, may be used

7 by the Administrator of the National Aeronautics and

8 Space Administration to relocate aircraft of the National

9 Aeronautics and Space Administration to Dryden Flight

10 Research Center, California, for purposes of the consolida11 tion of such aircraft.

12 Ω112æSEC. 439. REVISION OF NAME OF JAPAN–UNIT13 ED STATES FRIENDSHIP COMMISSION.—(1)(A) The first

14 sentence of section 4(a) of the Japan–United States Friend15 ship Act (22 U.S.C. 2903(a)) is amended by striking out

16 ‘‘Japan–United States Friendship Commission’’ and in17 serting in lieu thereof ‘‘United States–Japan Commission’’.

18 (B) The section heading of such section is amended to

19 read as follows:

20 ‘‘UNITED STATES–JAPAN COMMISSION’’.

21 (2) Subsection (c) of section 3 of that Act (22 U.S.C.

22 2902) is amended by striking out ‘‘Japan–United States

23 Friendship Commission’’ and inserting in lieu thereof

24 ‘‘United States–Japan Commission’’.
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1 (3) Any reference to the Japan–United States Friend2 ship Commission in any Federal law, Executive order, reg3 ulation, delegation of authority, or other document shall be

4 deemed to refer to the United States–Japan Commission.

5 Ω113æSEC. 440. (a) Subject to the concurrence of the

6 Administrator of the General Services Administration

7 (GSA) and notwithstanding section 707 of Public Law

8 103–433, the Administrator of the National Aeronautics

9 and Space Administration may convey to the city of Dow10 ney, California, all right, title, and interest of the United

11 States in and to a parcel of real property, including im12 provements thereon, consisting of approximately 60 acres

13 and known as Parcels III, IV, V, and VI of the NASA In14 dustrial Plant, Downey, California.

15 (b)(1) DELAY IN PAYMENT OF CONSIDERATION.—After

16 the end of the 20-year period beginning on the date on

17 which the conveyance under subsection (a) is completed, the

18 City of Downey shall pay to the United States an amount

19 equal to fair market value of the conveyed property as of

20 the date of the conveyance from NASA.

21 (2) EFFECT OF RECONVEYANCE BY THE CITY.—If the

22 City of Downey reconveys all or any part of the conveyed

23 property during such 20-year period, the City shall pay to

24 the United States an amount equal to the fair market value

25 of the reconveyed property as of the time of the reconvey-
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1 ance, excluding the value of any improvements made to the

2 property by the City.

3 (3) DETERMINATION OF FAIR MARKET VALUE.—The

4 Administrator of NASA shall determine fair market value

5 in accordance with Federal appraisal standards and proce6 dures.

7 (4) TREATMENT OF LEASES.—The Administrator of

8 NASA may treat a lease of the property within such 20-

9 year period as a reconveyance if the Administrator deter10 mines that the lease is being used to avoid application of

11 paragraph (b)(2).

12 (5) DEPOSIT OF PROCEEDS.—The Administrator of

13 NASA shall deposit any proceeds received under this sub14 section in the special account established pursuant to sec15 tion 204(h)(2) of the Federal Property and Administrative

16 Services Act of 1949 (40 U.S.C. 485(h)(2)).

17 (c) The exact acreage and legal description of the real

18 property to be conveyed under subsection (a) shall be deter19 mined by a survey satisfactory to the Administrator. The

20 cost of the survey shall be borne by the City of Downey,

21 California.

22 (d) The Administrator may require such additional

23 terms and conditions in connection with the conveyance

24 under subsection (a) as the Administrator considers appro25 priate to protect the interests of the United States.
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1 (e) If the City at any time after the conveyance of the

2 property under subsection (a) notifies the Administrator

3 that the City no longer wishes to retain the property, it

4 may convey the property under the terms of subsection (b),

5 or, it may revert all right, title, and interest in and to the

6 property (including any facilities, equipment, or fixtures

7 conveyed, but excluding the value of any improvements

8 made to the property by the City) to the United States, and

9 the United States shall have the right of immediate entry

10 onto the property.

11 Ω114æTITLE V

12 SUPPLEMENTAL

13 Ω115æDEPARTMENT OF VETERANS AFFAIRS

14 VETERANS BENEFITS ADMINISTRATION

15 COMPENSATION AND PENSIONS

16 For an additional amount for ‘‘Compensation and

17 Pensions’’, $100,000,000, to be made available upon enact18 ment of this Act, to remain available until expended.

19 Ω116æDEPARTMENT OF HOUSING AND URBAN

20 DEVELOPMENT

21 GOVERNMENT NATIONAL MORTGAGE ASSOCIATION

22 GUARANTEES OF MORTGAGE BACKED SECURITIES LOAN

23 GUARANTEE PROGRAM ACCOUNT

24 During fiscal year 1996 and in addition to commit25 ments previously provided, additional commitments to issue
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1 guarantees to carry out section 306 of the National Housing

2 Act, as amended (12 U.S.C. 1721(g)), shall not exceed

3 $20,000,000,000.

4 Ω117æTITLE VI—NEWBORNS’ AND

5 MOTHERS’ HEALTH PROTEC6 TION ACT OF 1996

7 SEC. 601. SHORT TITLE.

8 This title may be cited as the ‘‘Newborns’ and Mothers’

9 Health Protection Act of 1996’’.

10 SEC. 602. FINDINGS.

11 Congress finds that—

12 (1) the length of post-delivery inpatient care

13 should be based on the unique characteristics of each

14 mother and her newborn child, taking into consider15 ation the health of the mother, the health and stability

16 of the newborn, the ability and confidence of the

17 mother and father to care for the newborn, the ade18 quacy of support systems at home, and the access of

19 the mother and newborn to appropriate follow-up

20 health care; and

21 (2) the timing of the discharge of a mother and

22 her newborn child from the hospital should be made

23 by the attending provider in consultation with the

24 mother.
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1 SEC. 603. REQUIRED COVERAGE FOR MINIMUM HOSPITAL

2 STAY FOLLOWING BIRTH.

3 (a) IN GENERAL.—Except as provided in subsection

4 (b), a health plan or an employee health benefit plan that

5 provides maternity benefits, including benefits for child6 birth, shall ensure that coverage is provided with respect

7 to a mother who is a participant, beneficiary, or policy8 holder under such plan and her newborn child for a mini9 mum of 48 hours of inpatient length of stay following a

10 normal vaginal delivery, and a minimum of 96 hours of

11 inpatient length of stay following a caesarean section, with12 out requiring the attending provider to obtain authoriza13 tion from the health plan or employee health benefit plan.

14 (b) EXCEPTION.—Notwithstanding subsection (a), a

15 health plan or an employee health benefit plan shall not

16 be required to provide coverage for post-delivery inpatient

17 length of stay for a mother who is a participant, bene18 ficiary, or policyholder under such plan and her newborn

19 child for the period referred to in subsection (a) if—

20 (1) a decision to discharge the mother and her

21 newborn child prior to the expiration of such period

22 is made by the attending provider in consultation

23 with the mother; and

24 (2) the health plan or employee health benefit

25 plan provides coverage for post-delivery follow-up care

26 as described in section 604.
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1 SEC. 604. POST-DELIVERY FOLLOW-UP CARE.

2 (a) IN GENERAL.—

3 (1) GENERAL RULE.—In the case of a decision to

4 discharge a mother and her newborn child from the

5 inpatient setting prior to the expiration of 48 hours

6 following a normal vaginal delivery or 96 hours fol7 lowing a caesarean section, the health plan or em8 ployee health benefit plan shall provide coverage for

9 timely post-delivery care. Such health care shall be

10 provided to a mother and her newborn child by a reg11 istered nurse, physician, nurse practitioner, nurse

12 midwife or physician assistant experienced in mater13 nal and child health in—

14 (A) the home, a provider’s office, a hospital,

15 a birthing center, an intermediate care facility,

16 a federally qualified health center, a federally

17 qualified rural health clinic, or a State health

18 department maternity clinic; or

19 (B) another setting determined appropriate

20 under regulations promulgated by the Secretary,

21 in consultation with the Secretary of Health and

22 Human Services.

23 The attending provider in consultation with the

24 mother shall decide the most appropriate location for

25 follow-up care.
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1 (2) CONSIDERATIONS BY SECRETARY.—In pro2 mulgating regulations under paragraph (1)(B), the

3 Secretary shall consider telemedicine and other inno4 vative means to provide follow-up care and shall con5 sider care in both urban and rural settings.

6 (b) TIMELY CARE.—As used in subsection (a), the term

7 ‘‘timely post-delivery care’’ means health care that is pro8 vided—

9 (1) following the discharge of a mother and her

10 newborn child from the inpatient setting; and

11 (2) in a manner that meets the health care needs

12 of the mother and her newborn child, that provides for

13 the appropriate monitoring of the conditions of the

14 mother and child, and that occurs not later than the

15 72-hour period immediately following discharge.

16 (c) CONSISTENCY WITH STATE LAW.—The Secretary

17 shall, with respect to regulations promulgated under sub18 section (a) concerning appropriate post-delivery care set19 tings, ensure that, to the extent practicable, such regulations

20 are consistent with State licensing and practice laws.

21 SEC. 605. PROHIBITIONS.

22 In implementing the requirements of this title, a health

23 plan or an employee health benefit plan may not—

24 (1) deny enrollment, renewal, or continued cov25 erage to a mother and her newborn child who are
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1 participants, beneficiaries or policyholders based on

2 compliance with this title;

3 (2) provide monetary payments or rebates to

4 mothers to encourage such mothers to request less than

5 the minimum coverage required under this title;

6 (3) penalize or otherwise reduce or limit the re7 imbursement of an attending provider because such

8 provider provided treatment to an individual patient

9 in accordance with this title; or

10 (4) provide incentives (monetary or otherwise) to

11 an attending provider to induce such provider to pro12 vide treatment to an individual policyholder, partici13 pant, or beneficiary in a manner inconsistent with

14 this title.

15 SEC. 606. NOTICE.

16 (a) EMPLOYEE HEALTH BENEFIT PLAN.—An em17 ployee health benefit plan shall provide conspicuous notice

18 to each participant regarding coverage required under this

19 Act not later than 120 days after the date of enactment

20 of this title, and as part of its summary plan description.

21 (b) HEALTH PLAN.—A health plan shall provide notice

22 to each policyholder regarding coverage required under this

23 title. Such notice shall be in writing, prominently posi24 tioned, and be transmitted—
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1 (1) in a mailing made within 120 days of the

2 date of enactment of this title by such plan to the pol3 icyholder; and

4 (2) as part of the annual informational packet

5 sent to the policyholder.

6 SEC. 607. APPLICABILITY.

7 (a) CONSTRUCTION.—

8 (1) IN GENERAL.—A requirement or standard

9 imposed under this title on a health plan shall be

10 deemed to be a requirement or standard imposed on

11 the health plan issuer. Such requirements or stand12 ards shall be enforced by the State insurance commis13 sioner for the State involved or the official or officials

14 designated by the State to enforce the requirements of

15 this title. In the case of a health plan offered by a

16 health plan issuer in connection with an employee

17 health benefit plan, the requirements or standards im18 posed under this title shall be enforced with respect to

19 the health plan issuer by the State insurance commis20 sioner for the State involved or the official or officials

21 designated by the State to enforce the requirements of

22 this title.

23 (2) LIMITATION.—Except as provided in section

24 608(c), the Secretary shall not enforce the require25 ments or standards of this title as they relate to
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1 health plan issuers or health plans. In no case shall

2 a State enforce the requirements or standards of this

3 title as they relate to employee health benefit plans.

4 (b) ERISA.—Nothing in this title shall be construed

5 to affect or modify the provisions of section 514 of the Em6 ployee Retirement Income Security Act of 1974 (29 U.S.C.

7 1144).

8 (c) EFFECT ON MOTHER.—Nothing in this title shall

9 be construed to require that a mother who is a participant,

10 beneficiary, or policyholder covered under this title—

11 (1) give birth in a hospital; or

12 (2) stay in the hospital for a fixed period of time

13 following the birth of her child.

14 (d) LEVEL AND TYPE OF REIMBURSEMENTS.—Nothing

15 in this title shall be construed to prevent a health plan or

16 an employee health benefit plan from negotiating the level

17 and type of reimbursement with an attending provider for

18 care provided in accordance with this title.

19 SEC. 608. ENFORCEMENT.

20 (a) HEALTH PLAN ISSUERS.—Each State shall require

21 that each health plan issued, sold, renewed, offered for sale

22 or operated in such State by a health plan issuer meet the

23 standards established under this title. A State shall submit

24 such information as required by the Secretary demonstrat-
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1 ing effective implementation of the requirements of this

2 title.

3 (b) EMPLOYEE HEALTH BENEFIT PLANS.—With re4 spect to employee health benefit plans, the standards estab5 lished under this title shall be enforced in the same manner

6 as provided for under sections 502, 504, 506, and 510 of

7 the Employee Retirement Income Security Act of 1974 (29

8 U.S.C. 1132, 1134, 1136, and 1140). The civil penalties

9 contained in paragraphs (1) and (2) of section 502(c) of

10 such Act (29 U.S.C. 1132(c)(1) and (2)) shall apply to any

11 information required by the Secretary to be disclosed and

12 reported under this section.

13 (c) FAILURE TO ENFORCE.—In the case of the failure

14 of a State to substantially enforce the standards and re15 quirements set forth in this title with respect to health

16 plans, the Secretary, in consultation with the Secretary of

17 Health and Human Services, shall enforce the standards

18 of this title in such State. In the case of a State that fails

19 to substantially enforce the standards set forth in this title,

20 each health plan issuer operating in such State shall be sub21 ject to civil enforcement as provided for under sections 502,

22 504, 506, and 510 of the Employee Retirement Income Se23 curity Act of 1974 (29 U.S.C. 1132, 1134, 1136, and 1140).

24 The civil penalties contained in paragraphs (1) and (2) of

25 section 502(c) of such Act (29 U.S.C. 1132(c)(1) and (2))
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1 shall apply to any information required by the Secretary

2 to be disclosed and reported under this section.

3 (d) REGULATIONS.—The Secretary, in consultation

4 with the Secretary of Health and Human Services, may

5 promulgate such regulations as may be necessary or appro6 priate to carry out this title.

7 SEC. 609. DEFINITIONS.

8 As used in this title:

9 (1) ATTENDING PROVIDER.—The term ‘‘attend10 ing provider’’ shall include—

11 (A) the obstetrician-gynecologists, pediatri12 cians, family physicians, and other physicians

13 primarily responsible for the care of a mother

14 and newborn; and

15 (B) the nurse midwives and nurse practi16 tioners primarily responsible for the care of a

17 mother and her newborn child in accordance

18 with State licensure and certification laws.

19 (2) BENEFICIARY.—The term ‘‘beneficiary’’ has

20 the meaning given such term under section 3(8) of the

21 Employee Retirement Income Security Act of 1974

22 (29 U.S.C. 1002(8)).

23 (3) EMPLOYEE HEALTH BENEFIT PLAN.—

24 (A) IN GENERAL.—The term ‘‘employee

25 health benefit plan’’ means any employee welfare
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1 benefit plan, governmental plan, or church plan

2 (as defined under paragraphs (1), (32), and (33)

3 of section 3 of the Employee Retirement Income

4 Security Act of 1974 (29 U.S.C. 1002 (1), (32),

5 and (33))) that provides or pays for health bene6 fits (such as provider and hospital benefits) for

7 participants and beneficiaries whether—

8 (i) directly;

9 (ii) through a health plan offered by a

10 health plan issuer as defined in paragraph

11 (4); or

12 (iii) otherwise.

13 (B) RULE OF CONSTRUCTION.—An em14 ployee health benefit plan shall not be construed

15 to be a health plan or a health plan issuer.

16 (C) ARRANGEMENTS NOT INCLUDED.—Such

17 term does not include the following, or any com18 bination thereof:

19 (i) Coverage only for accident, or dis20 ability income insurance, or any combina21 tion thereof.

22 (ii) Medicare supplemental health in23 surance (as defined under section

24 1882(g)(1) of the Social Security Act).
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1 (iii) Coverage issued as a supplement

2 to liability insurance.

3 (iv) Liability insurance, including

4 general liability insurance and automobile

5 liability insurance.

6 (v) Workers compensation or similar

7 insurance.

8 (vi) Automobile medical payment in9 surance.

10 (vii) Coverage for a specified disease or

11 illness.

12 (viii) Hospital or fixed indemnity in13 surance.

14 (ix) Short-term limited duration insur15 ance.

16 (x) Credit-only, dental-only, or vision17 only insurance.

18 (xi) A health insurance policy provid19 ing benefits only for long-term care, nursing

20 home care, home health care, community21 based care, or any combination thereof.

22 (4) GROUP PURCHASER.—The term ‘‘group pur23 chaser’’ means any person (as defined under para24 graph (9) of section 3 of the Employee Retirement In25 come Security Act of 1974 (29 U.S.C. 1002(9)) or en-
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1 tity that purchases or pays for health benefits (such

2 as provider or hospital benefits) on behalf of partici3 pants or beneficiaries in connection with an employee

4 health benefit plan.

5 (5) HEALTH PLAN.—

6 (A) IN GENERAL.—The term ‘‘health plan’’

7 means any group health plan or individual

8 health plan.

9 (B) GROUP HEALTH PLAN.—The term

10 ‘‘group health plan’’ means any contract, policy,

11 certificate or other arrangement offered by a

12 health plan issuer to a group purchaser that pro13 vides or pays for health benefits (such as pro14 vider and hospital benefits) in connection with

15 an employee health benefit plan.

16 (C) INDIVIDUAL HEALTH PLAN.—The term

17 ‘‘individual health plan’’ means any contract,

18 policy, certificate or other arrangement offered to

19 individuals by a health plan issuer that provides

20 or pays for health benefits (such as provider and

21 hospital benefits) and that is not a group health

22 plan.

23 (D) ARRANGEMENTS NOT INCLUDED.—Such

24 term does not include the following, or any com25 bination thereof:
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1 (i) Coverage only for accident, or dis2 ability income insurance, or any combina3 tion thereof.

4 (ii) Medicare supplemental health in5 surance (as defined under section

6 1882(g)(1) of the Social Security Act).

7 (iii) Coverage issued as a supplement

8 to liability insurance.

9 (iv) Liability insurance, including

10 general liability insurance and automobile

11 liability insurance.

12 (v) Workers compensation or similar

13 insurance.

14 (vi) Automobile medical payment in15 surance.

16 (vii) Coverage for a specified disease or

17 illness.

18 (viii) Hospital or fixed indemnity in19 surance.

20 (ix) Short-term limited duration insur21 ance.

22 (x) Credit-only, dental-only, or vision23 only insurance.

24 (xi) A health insurance policy provid25 ing benefits only for long-term care, nursing
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1 home care, home health care, community2 based care, or any combination thereof.

3 (E) CERTAIN PLANS INCLUDED.—Such term

4 includes any plan or arrangement not described

5 in any clause of subparagraph (D) which pro6 vides for benefit payments, on a periodic basis,

7 for—

8 (i) a specified disease or illness, or

9 (ii) a period of hospitalization,

10 without regard to the costs incurred or services

11 rendered during the period to which the pay12 ments relate.

13 (6) HEALTH PLAN ISSUER.—The term ‘‘health

14 plan issuer’’ means any entity that is licensed (prior

15 to or after the date of enactment of this title) by a

16 State to offer a health plan.

17 (7) PARTICIPANT.—The term ‘‘participant’’ has

18 the meaning given such term under section 3(7) of the

19 Employee Retirement Income Security Act of 1974

20 (29 U.S.C. 1002(7)).

21 (8) SECRETARY.—The term ‘‘Secretary’’ unless

22 otherwise specified means the Secretary of Labor.
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1 SEC. 610. PREEMPTION.

2 (a) IN GENERAL.—The provisions of sections 603, 605,

3 and 606 relating to inpatient care shall not preempt a State

4 law or regulation—

5 (1) that provides greater protections to patients

6 or policyholders than those required in this title;

7 (2) that requires health plans to provide coverage

8 for at least 48 hours of inpatient length of stay fol9 lowing a normal vaginal delivery, and at least 96

10 hours of inpatient length of stay following a caesar11 ean section;

12 (3) that requires health plans to provide coverage

13 for maternity and pediatric care in accordance with

14 guidelines established by the American College of Ob15 stetricians and Gynecologists, the American Academy

16 of Pediatrics, or other established professional medical

17 associations; or

18 (4) that leaves decisions regarding appropriate

19 length of stay entirely to the attending provider, in

20 consultation with the mother.

21 (b) FOLLOW-UP CARE.—The provisions of section 604

22 relating to follow-up care shall not preempt those provisions

23 of State law or regulation that provide comparable or great24 er protection to patients or policyholders than those re25 quired under this title or that provide mothers and
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1 newborns with an option of timely post delivery follow-up

2 care (as defined in section 604(b)) in the home.

3 (c) EMPLOYEE HEALTH BENEFIT PLANS.—Nothing in

4 this section affects the application of this title to employee

5 health benefit plans, as defined in section 609(3).

6 SEC. 611. REPORTS TO CONGRESS CONCERNING CHILD7 BIRTH.

8 (a) FINDINGS.—Congress finds that—

9 (1) childbirth is one part of a continuum of ex10 perience that includes prepregnancy, pregnancy and

11 prenatal care, labor and delivery, the immediate

12 postpartum period, and a longer period of adjustment

13 for the newborn, the mother, and the family;

14 (2) health care practices across this continuum

15 are changing in response to health care financing and

16 delivery system changes, science and clinical research,

17 and patient preferences; and

18 (3) there is a need to—

19 (A) examine the issues and consequences as20 sociated with the length of hospital stays follow21 ing childbirth;

22 (B) examine the follow-up practices for

23 mothers and newborns used in conjunction with

24 shorter hospital stays;
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1 (C) identify appropriate health care prac2 tices and procedures with regard to the hospital

3 discharge of newborns and mothers;

4 (D) examine the extent to which such care

5 is affected by family and environmental factors;

6 and

7 (E) examine the content of care during hos8 pital stays following childbirth.

9 (b) ADVISORY PANEL.—

10 (1) IN GENERAL.—Not later than 90 days after

11 the date of enactment of this title, the Secretary of

12 Health and Human Services shall establish an advi13 sory panel (hereafter referred to in this section as the

14 ‘‘advisory panel’’) to—

15 (A) guide and review methods, procedures,

16 and data collection necessary to conduct the

17 study described in subsection (c) that is intended

18 to enhance the quality, safety, and effectiveness

19 of health care services provided to mothers and

20 newborns;

21 (B) develop a consensus among the members

22 of the advisory panel regarding the appropriate23 ness of the specific requirements of this title; and

24 (C) prepare and submit to the Secretary of

25 Health and Human Services, as part of the re-
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1 port of the Secretary submitted under subsection

2 (d), a report summarizing the consensus devel3 oped under subparagraph (B) if any, including

4 the reasons for not reaching such a consensus.

5 (2) PARTICIPATION.—

6 (A) DEPARTMENT REPRESENTATIVES.—The

7 Secretary of Health and Human Services shall

8 ensure that representatives from within the De9 partment of Health and Human Services that

10 have expertise in the area of maternal and child

11 health or in outcomes research are appointed to

12 the advisory panel established under paragraph

13 (1).

14 (B) REPRESENTATIVES OF PUBLIC AND PRI15 VATE SECTOR ENTITIES.—

16 (i) IN GENERAL.—The Secretary of

17 Health and Human Services shall ensure

18 that members of the advisory panel include

19 representatives of public and private sector

20 entities having knowledge or experience in

21 one or more of the following areas:

22 (I) Patient care.

23 (II) Patient education.

24 (III) Quality assurance.

25 (IV) Outcomes research.
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1 (V) Consumer issues.

2 (ii) REQUIREMENT.—The panel shall

3 include representatives from each of the fol4 lowing categories:

5 (I) Health care practitioners.

6 (II) Health plans.

7 (III) Hospitals.

8 (IV) Employers.

9 (V) States.

10 (VI) Consumers.

11 (c) STUDIES.—

12 (1) IN GENERAL.—The Secretary of Health and

13 Human Services shall conduct a study of—

14 (A) the factors affecting the continuum of

15 care with respect to maternal and child health

16 care, including outcomes following childbirth;

17 (B) the factors determining the length of

18 hospital stay following childbirth;

19 (C) the diversity of negative or positive out20 comes affecting mothers, infants, and families;

21 (D) the manner in which post natal care

22 has changed over time and the manner in which

23 that care has adapted or related to changes in

24 the length of hospital stay, taking into account—
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1 (i) the types of post natal care avail2 able and the extent to which such care is

3 accessed; and

4 (ii) the challenges associated with pro5 viding post natal care to all populations,

6 including vulnerable populations, and solu7 tions for overcoming these challenges; and

8 (E) the financial incentives that may—

9 (i) impact the health of newborns and

10 mothers; and

11 (ii) influence the clinical decisionmak12 ing of health care providers.

13 (2) RESOURCES.—The Secretary of Health and

14 Human Services shall provide to the advisory panel

15 the resources necessary to carry out the duties of the

16 advisory panel.

17 (d) REPORTS.—

18 (1) IN GENERAL.—The Secretary of Health and

19 Human Services shall prepare and submit to the

20 Committee on Labor and Human Resources of the

21 Senate and the Committee on Commerce of the House

22 of Representatives a report that contains—

23 (A) a summary of the study conducted

24 under subsection (c);
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1 (B) a summary of the best practices used in

2 the public and private sectors for the care of

3 newborns and mothers;

4 (C) recommendations for improvements in

5 prenatal care, post natal care, delivery and fol6 low-up care, and whether the implementation of

7 such improvements should be accomplished by

8 the private health care sector, Federal or State

9 governments, or any combination thereof; and

10 (D) limitations on the databases in exist11 ence on the date of enactment of this title.

12 (2) SUBMISSION OF REPORTS.—The Secretary of

13 Health and Human Services shall prepare and sub14 mit to the Committees referred to in paragraph (1)—

15 (A) an initial report concerning the study

16 conducted under subsection (c) and the report re17 quired under subsection (d), not later than 18

18 months after the date of enactment of this title;

19 (B) an interim report concerning such

20 study and report not later than 3 years after the

21 date of enactment of this title; and

22 (C) a final report concerning such study

23 and report not later than 5 years after the date

24 of enactment of this title.
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1 (e) TERMINATION OF PANEL.—The advisory panel

2 shall terminate on the date that occurs 60 days after the

3 date on which the last report is submitted under this sec4 tion.

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

6 (a) IN GENERAL.—Notwithstanding any other provi7 sion of law, the Administrator of General Services shall dis8 pose of by sale at fair market value all rights, title, and

9 interests of the United States in and to the land of, and

10 improvements to, Governors Island, New York.

11 (b) RIGHT OF FIRST REFUSAL.—Before a sale is made

12 under subsection (a) to any other parties, the State of New

13 York and the city of New York shall be given the right of

14 first refusal to purchase all or part of Governors Island.

15 Such right may be exercised by either the State of New York

16 or the city of New York or by both parties acting jointly.

17 (c) PROCEEDS.—Proceeds from the disposal of Gov18 ernors Island under subsection (a) shall be deposited in the

19 general fund of the Treasury and credited as miscellaneous

20 receipts.

21 SEC. 613. SALE OF AIR RIGHTS.

22 (a) IN GENERAL.—Notwithstanding any other provi23 sion of law, the Administrator of General Services shall sell,

24 at fair market value and in a manner to be determined

25 by the Administrator, the air rights adjacent to Washington
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1 Union Station described in subsection (b), including air

2 rights conveyed to the Administrator under subsection (d).

3 The Administrator shall complete the sale by such date as

4 is necessary to ensure that the proceeds from the sale will

5 be deposited in accordance with subsection (c).

6 (b) DESCRIPTION.—The air rights referred to in sub7 section (a) total approximately 16.5 acres and are depicted

8 on the plat map of the District of Columbia as follows:

9 (1) Part of lot 172, square 720.

10 (2) Part of lots 172 and 823, square 720.

11 (3) Part of lot 811, square 717.

12 (c) PROCEEDS.—Before September 30, 1997, proceeds

13 from the sale of air rights under subsection (a) shall be de14 posited in the general fund of the Treasury and credited

15 as miscellaneous receipts.

16 (d) CONVEYANCE OF AMTRAK AIR RIGHTS.—

17 (1) GENERAL RULE.—As a condition of future

18 Federal financial assistance, Amtrak shall convey to

19 the Administrator of General Services on or before

20 December 31, 1996, at no charge, all of the air rights

21 of Amtrak described in subsection (b).

22 (2) FAILURE TO COMPLY.—If Amtrak does not

23 meet the condition established by paragraph (1), Am24 trak shall be prohibited from obligating Federal funds

25 after March 1, 1997.
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1 SEC. 614. EFFECTIVE DATE.

2 Except as otherwise provided for in this title, the pro3 visions of this title shall apply as follows:

4 (1) With respect to health plans, such provisions

5 shall apply to such plans on the first day of the con6 tract year beginning on or after January 1, 1998.

7 (2) With respect to employee health benefit plans,

8 such provisions shall apply to such plans on the first

9 day of the first plan year beginning on or after Janu10 ary 1, 1998.

11 Ω118æTITLE VII—MENTAL HEALTH

12 PARITY

13 SEC. 701. SHORT TITLE.

14 This title may be cited as the ‘‘Mental Health Parity

15 Act of 1996’’.

16 SEC. 702. PLAN PROTECTIONS FOR INDIVIDUALS WITH A

17 MENTAL ILLNESS.

18 (a) PERMISSIBLE COVERAGE LIMITS UNDER A GROUP

19 HEALTH PLAN.—

20 (1) AGGREGATE LIFETIME LIMITS.—

21 (A) IN GENERAL.—With respect to a group

22 health plan offered by a health insurance issuer,

23 that applies an aggregate lifetime limit to plan

24 payments for medical or surgical services covered

25 under the plan, if such plan also provides a

26 mental health benefit such plan shall—
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1 (i) include plan payments made for

2 mental health services under the plan in

3 such aggregate lifetime limit; or

4 (ii) establish a separate aggregate life5 time limit applicable to plan payments for

6 mental health services under which the dol7 lar amount of such limit (with respect to

8 mental health services) is equal to or greater

9 than the dollar amount of the aggregate life10 time limit on plan payments for medical or

11 surgical services.

12 (B) NO LIFETIME LIMIT.—With respect to a

13 group health plan offered by a health insurance

14 issuer, that does not apply an aggregate lifetime

15 limit to plan payments for medical or surgical

16 services covered under the plan, such plan may

17 not apply an aggregate lifetime limit to plan

18 payments for mental health services covered

19 under the plan.

20 (2) ANNUAL LIMITS.—

21 (A) IN GENERAL.—With respect to a group

22 health plan offered by a health insurance issuer,

23 that applies an annual limit to plan payments

24 for medical or surgical services covered under the
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1 plan, if such plan also provides a mental health

2 benefit such plan shall—

3 (i) include plan payments made for

4 mental health services under the plan in

5 such annual limit; or

6 (ii) establish a separate annual limit

7 applicable to plan payments for mental

8 health services under which the dollar

9 amount of such limit (with respect to men10 tal health services) is equal to or greater

11 than the dollar amount of the annual limit

12 on plan payments for medical or surgical

13 services.

14 (B) NO ANNUAL LIMIT.—With respect to a

15 group health plan offered by a health insurance

16 issuer, that does not apply an annual limit to

17 plan payments for medical or surgical services

18 covered under the plan, such plan may not apply

19 an annual limit to plan payments for mental

20 health services covered under the plan.

21 (b) RULE OF CONSTRUCTION.—

22 (1) IN GENERAL.—Nothing in this section shall

23 be construed as prohibiting a group health plan of24 fered by a health insurance issuer, from—
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1 (A) utilizing other forms of cost contain2 ment not prohibited under subsection (a); or

3 (B) applying requirements that make dis4 tinctions between acute care and chronic care.

5 (2) NONAPPLICABILITY.—This section shall not

6 apply to—

7 (A) substance abuse or chemical dependency

8 benefits; or

9 (B) health benefits or health plans paid for

10 under title XVIII or XIX of the Social Security

11 Act.

12 (3) STATE LAW.—Nothing in this section shall be

13 construed to preempt any State law that provides for

14 greater parity with respect to mental health benefits

15 than that required under this section.

16 (c) SMALL EMPLOYER EXEMPTION.—

17 (1) IN GENERAL.—This section shall not apply

18 to plans maintained by employers that employ less

19 than 26 employees.

20 (2) APPLICATION OF CERTAIN RULES IN DETER21 MINATION OF EMPLOYER SIZE.—For purposes of this

22 subsection—

23 (A) APPLICATION OF AGGREGATION RULE

24 FOR EMPLOYERS.—All persons treated as a sin25 gle employer under subsection (b), (c), (m), or
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1 (o) of section 414 of the Internal Revenue Code

2 of 1986 shall be treated as 1 employer.

3 (B) EMPLOYERS NOT IN EXISTENCE IN PRE4 CEDING YEAR.—In the case of an employer which

5 was not in existence throughout the preceding

6 calendar year, the determination of whether such

7 employer is a small employer shall be based on

8 the average number of employees that it is rea9 sonably expected such employer will employ on

10 business days in the current calendar year.

11 (C) PREDECESSORS.—Any reference in this

12 subsection to an employer shall include a ref13 erence to any predecessor of such employer.

14 SEC. 703. DEFINITIONS.

15 For purposes of this title:

16 (1) GROUP HEALTH PLAN.—

17 (A) IN GENERAL.—The term ‘‘group health

18 plan’’ means an employee welfare benefit plan

19 (as defined in section 3(1) of the Employee Re20 tirement Income Security Act of 1974) to the ex21 tent that the plan provides medical care (as de22 fined in paragraph (2)) and including items and

23 services paid for as medical care) to employees or

24 their dependents (as defined under the terms of
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1 the plan) directly or through insurance, reim2 bursement, or otherwise.

3 (B) MEDICAL CARE.—The term ‘‘medical

4 care’’ means amounts paid for—

5 (i) the diagnosis, cure, mitigation,

6 treatment, or prevention of disease, or

7 amounts paid for the purpose of affecting

8 any structure or function of the body,

9 (ii) amounts paid for transportation

10 primarily for and essential to medical care

11 referred to in clause (i), and

12 (iii) amounts paid for insurance cover13 ing medical care referred to in clauses (i)

14 and (ii).

15 (2) HEALTH INSURANCE COVERAGE.—The term

16 ‘‘health insurance coverage’’ means benefits consisting

17 of medical care (provided directly, through insurance

18 or reimbursement, or otherwise and including items

19 and services paid for as medical care) under any hos20 pital or medical service policy or certificate, hospital

21 or medical service plan contract, or health mainte22 nance organization contract offered by a health insur23 ance issuer.

24 (3) HEALTH INSURANCE ISSUER.—The term

25 ‘‘health insurance issuer’’ means an insurance com-
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1 pany, insurance service, or insurance organization

2 (including a health maintenance organization, as de3 fined in paragraph (4)) which is licensed to engage

4 in the business of insurance in a State and which is

5 subject to State law which regulates insurance (with6 in the meaning of section 514(b)(2) of the Employee

7 Retirement Income Security Act of 1974), and in8 cludes a plan sponsor described in section 3(16)(B) of

9 the Employee Retirement Income Security Act of

10 1974 in the case of a group health plan which is an

11 employee welfare benefit plan (as defined in section

12 3(1) of such Act). Such term does not include a group

13 health plan.

14 (4) HEALTH MAINTENANCE ORGANIZATION.—The

15 term ‘‘health maintenance organization’’ means—

16 (A) a federally qualified health maintenance

17 organization (as defined in section 1301(a) of the

18 Public Health Service Act),

19 (B) an organization recognized under State

20 law as a health maintenance organization, or

21 (C) a similar organization regulated under

22 State law for solvency in the same manner and

23 to the same extent as such a health maintenance

24 organization.
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1 (5) STATE.—The term ‘‘State’’ means each of the

2 several States, the District of Columbia, Puerto Rico,

3 the Virgin Islands, Guam, American Samoa, and the

4 Northern Mariana Islands.

5 SEC. 704. SUNSET.

6 Sections 701 through 703 shall cease to be effective on

7 September 30, 2001.

8 SEC. 705. FEDERAL EMPLOYEE HEALTH BENEFIT PROGRAM.

9 For the Federal Employee Health Benefit Program,

10 sections 701 through 703 will take effect on October 1, 1997.

11 SEC. 706. EXEMPTION.

12 Notwithstanding the provisions of this title, if the pro13 visions of this title result in a 1 percent or greater increase

14 in the cost of a group health plan’s premiums, the purchaser

15 is exempt from the provisions of this title.

16 This Act may be cited as the ‘‘Departments of Veter17 ans Affairs and Housing and Urban Development, and

18 Independent Agencies Appropriations Act, 1997’’.

Passed the House of Representatives June 26, 1996.

Attest: ROBIN H. CARLE,

Clerk.

Passed the Senate September 5, 1996.

Attest: KELLY D. JOHNSTON,

Secretary.