402
(iii) Section 311(7) of the Act of October 8,
1982 (15 U.S.C. 4021), is amended by striking
‘‘Commerce’’ and inserting ‘‘Treasury’’.
(j) APPOINTMENT
OF INDUSTRIES BOARDS.—The
President shall appoint industries boards, composed of
representatives of industries in the private sector, to ad-
vise the Secretary of the Treasury and the United States
Trade Representative with respect to functions transferred
to them under this section.
(k) GIFTS AND BEQUESTS.—
(1) IN GENERAL.—The Secretary of State, the
Secretary of the Treasury, and the United States
Trade Representative are authorized to accept, hold,
administer, and utilize gifts and bequests of prop-
erty, both real and personal, for the purpose of aid-
ing or facilitating the performance of functions
transferred to them under this section and section
7232. Gifts and bequests of money and the proceeds
from sales of other property received as gifts or be-
quests shall be deposited in the United States Treas-
ury in a separate fund and shall be disbursed on
order of the Secretary of State, the Secretary of the
Treasury, or the United States Trade Representa-
tive. Property accepted pursuant to this paragraph,
and the proceeds thereof, shall be used as nearly as
403
possible in accordance with the terms of the gift or
bequest.
(2) TAX TREATMENT.—For the purpose of Fed-
eral income, estate, and gift taxes, and State taxes,
property accepted under subsection (a) shall be con-
sidered a gift or bequest to or for use of the United
States.
(3) INVESTMENT.—The Secretary of the Treas-
ury may invest and reinvest in securities of the
United States or in securities guaranteed as to prin-
cipal and interest by the United States any moneys
contained in the fund provided for in subsection (a).
Income accruing from such securities, and from any
other property held by the Secretary of State, the
Secretary of the Treasury, or the United States
Trade Representative pursuant to subsection (a),
shall be deposited to the credit of the fund, and shall
be disbursed upon order of the Secretary of State,
the Secretary of the Treasury, or the United States
Trade Representative.
(l) INFORMATION SHARING.—It is the sense of the
Congress that any department or agency of the United
States that compiles information on international econom-
ics or trade make that information available to other de-
404
partments and agencies performing functions relating to
international trade.
(m) 
TRADE
ADJUSTMENT
ASSISTANCE
FOR
FIRMS.—Chapter 3 of title II of the Trade Act of 1974
(19 U.S.C. 2341 and following) and the items relating to
such chapter in the table of contents for that Act, are re-
pealed.
SEC. 7235. PATENT AND TRADEMARK OFFICE.
(a) TRANSFER TO DEPARTMENT OF JUSTICE.—Ef-
fective as of the date specified in section 7109(a)—
(1) the Patent and Trademark Office shall be
transferred to the Department of Justice; and
(2) all functions which, immediately before such
date, are functions of the Secretary of Commerce
under title 35, United States Code, or any other
provision of law with respect to the functions of the
Patent and Trademark Office, are transferred to the
Attorney General.
(b) FUNDING.—
(1) COSTS PAID FROM FEES.—All costs of the
activities of the Patent and Trademark Office shall
be paid from fees paid to the Office under title 35,
United States Code, the Act of July 5, 1946 (com-
monly known as the ‘‘Trademark Act of 1946’’) (15
U.S.C. 1051 and following), section 10101 of the
405
Omnibus Budget Reconciliation Act of 1990 (35
U.S.C. 41 note), or other provision of law.
(2) FUNDS
AVAILABLE
WITHOUT
APPROPRIA-
TION.—(A) Section 42(c) of title 35, United States
Code, is amended by striking ‘‘to carry out, to the
extent provided in appropriation Acts,’’ and insert-
ing ‘‘, without appropriation, to carry out’’.
(B) Section 10101(b)(2)(B) of the Omnibus
Budget Reconciliation Act of 1990 (35 U.S.C. 41
note) is amended by striking ‘‘to the extent provided
in appropriation Acts’’ and inserting ‘‘without ap-
propriation’’.
(c) ADJUSTMENT OF FEES.—Section 41(f) of title
31, United States Code, is amended to read as follows:
‘‘(f) The Commissioner may adjust the fees estab-
lished under this section on October 1 of each year to
cover the estimated cost to the activities of the Office.’’.
(d) SERVICE
OF INCUMBENTS.—Those individuals
serving as Commissioner of Patents and Trademarks,
Deputy Commissioner of Patents and Trademarks, Assist-
ant Commissioner of Patents, and Assistant Commis-
sioner of Trademarks, immediately before the effective
date specified in section 7109(a), may continue in such
office on and after such effective date until a successor
has taken office. Compensation for any service under this
406
subsection shall be at the rate at which the individual was
compensated immediately before the effective date speci-
fied in section 7109(a).
(e) RULE OF CONSTRUCTION.—For purposes of title
III, the transfer of the Patent and Trademark Office to
the Department of Justice under this section shall be
treated as if it involved a transfer of functions from one
office to another.
(f) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 1 of title 35, United States Code,
is amended to read as follows:
‘‘§ 1. Establishment
‘‘The Patent and Trademark Office is an agency of
the United States within the Department of Justice, where
records, books, drawings, specifications, and other papers
and things pertaining to patents and trademark registra-
tions shall be kept and preserved, except as otherwise pro-
vided by law.’’.
(2) Title 35, United States Code, is amended by
striking ‘‘Secretary of Commerce’’ each place it ap-
pears and inserting ‘‘Attorney General’’.
(3) Section 3 of title 35, United States Code,
is amended by striking subsection (d).
(4) Section 5316 of title 5, United States Code,
is amended by striking
407
‘‘Commissioner of Patents, Department of
Commerce.’’
and inserting
‘‘Commissioner of Patents and Trademarks.’’.
SEC. 7236. TECHNOLOGY ADMINISTRATION.
(a) TECHNOLOGY ADMINISTRATION.—
(1) GENERAL RULE.—Except as otherwise pro-
vided in this section, the Technology Administration
shall be terminated on the effective date specified in
section 7233(a).
(2) OFFICE OF TECHNOLOGY POLICY.—The Of-
fice of Technology Policy is hereby terminated.
(b) NATIONAL
INSTITUTE
OF
STANDARDS
AND
TECHNOLOGY.—
(1) GENERAL RULE.—Except as otherwise pro-
vided in this subsection, the National Institute of
Standards and Technology (in this subsection re-
ferred to as the ‘‘Institute’’) shall be transferred to
the National Science Foundation.
(2) FUNCTIONS OF DIRECTOR.—Except as oth-
erwise provided in this subsection, upon the transfer
under paragraph (1), the Director of the Institute
shall perform all functions relating to the Institute
that, immediately before the effective date specified
in section 7233(a), were functions of the Secretary
408
of Commerce or the Under Secretary of Commerce
for Technology, including the administration of sec-
tion 17 of the Stevenson-Wydler Technology Innova-
tion Act of 1980.
(3) LABORATORIES.—(A) The laboratories of
the Institute shall be transferred to the Commerce
Programs Resolution Agency.
(B) The Commerce Programs Resolution Agen-
cy shall attempt to sell the property of the labora-
tories of the Institute, within 18 months after the
effective date specified in section 7233(a), to a pri-
vate sector entity intending to perform substantially
the same functions as were performed by the labora-
tories of the Institute immediately before such effec-
tive date.
(C) If no offer to purchase property under sub-
paragraph (B) is received within the 18-month pe-
riod described in such subparagraph, the Commerce
Programs Resolution Agency shall submit a report
to the Congress containing recommendations on the
appropriate disposition of the property and functions
of the laboratories of the Institute.
(c) NATIONAL
TECHNICAL
INFORMATION
SERV-
ICE.—
409
(1) SALE OF PROPERTY.—The Commerce Pro-
grams Resolution Agency shall attempt to sell the
property of the National Technical Information
Service, within 18 months after the effective date
specified in section 7233(a), to a private sector en-
tity intending to perform substantially the same
functions as were performed by the National Tech-
nical Information Service immediately before such
effective date.
(2) RECOMMENDATIONS.—If no offer to pur-
chase property under paragraph (1) is received with-
in the 18-month period described in such paragraph,
the Commerce Programs Resolution Agency shall
submit a report to the Congress containing rec-
ommendations on the appropriate disposition of the
property and functions of the National Technical In-
formation Service.
(3) FUNDING.—No Federal funds may be ap-
propriated for the National Technical Information
Service for any fiscal year after fiscal year 1995.
(d) AMENDMENTS.—
(1) NATIONAL INSTITUTE OF STANDARDS AND
TECHNOLOGY
ACT.—The National Institute of
Standards and Technology Act (15 U.S.C. 271 et
seq.) is amended—
410
(A) in section 2(b), by striking paragraph
(1) and redesignating paragraphs (2) through
(11) as paragraphs (1) through (10), respec-
tively;
(B) in section 2(d), by striking ‘‘, including
the programs established under sections 25, 26,
and 28 of this Act’’;
(C) in section 10, by striking ‘‘Advanced’’
in both the section heading and subsection (a),
and inserting in lieu thereof ‘‘Standards and’’;
and
(D) by striking sections 24, 25, 26, and
28.
(2) STEVENSON-WYDLER TECHNOLOGY INNOVA-
TION
ACT
OF
1980.—The Stevenson-Wydler Tech-
nology Innovation Act of 1980 (15 U.S.C. 3701 et
seq.) is amended—
(A) in section 3, by striking paragraph (2)
and redesignating paragraphs (3) through (5)
as paragraphs (2) through (4), respectively;
(B) in section 4, by striking paragraphs
(1), (4), and (13) and redesignating paragraphs
(2), (3), (5), (6), (7), (8), (9), (10), (11), and
(12) as paragraphs (1) through (10), respec-
tively;
411
(C) by striking sections 5, 6, 7, 8, 9, and
10;
(D) in section 11—
(i) by striking ‘‘, the Federal Labora-
tory Consortium for Technology Transfer,’’
in subsection (c)(3);
(ii) by striking ‘‘and the Federal Lab-
oratory Consortium for Technology Trans-
fer’’ in subsection (d)(2);
(iii) by striking ‘‘, and refer such re-
quests’’ and all that follows through ‘‘avail-
able to the Service’’ in subsection (d)(3);
and
(iv) by striking subsection (e); and
(E) in section 17—
(i) by striking ‘‘Subject to paragraph
(2), separate’’ and inserting in lieu thereof
‘‘Separate’’ in subsection (c)(1);
(ii) by striking paragraph (2) of sub-
section (c);
(iii) by redesignating paragraph (3) of
subsection (c) as paragraph (2); and
(iv) by inserting ‘‘administrative’’
after ‘‘funds to carry out’’ in subsection
(f).
412
SEC. 7237. REORGANIZATION OF THE BUREAU OF THE
CENSUS.
(a) IN GENERAL.—Effective as of the date specified
in section 7233(a)—
(1) the Bureau of the Census shall be trans-
ferred to the Department of the Treasury; and
(2) all functions which, immediately before such
date, are functions of the Secretary of Commerce
under title 13, United States Code, shall be trans-
ferred to the Secretary of the Treasury.
(b) INTERIM SERVICE.—The individual serving as the
Director of the Census immediately before the reorganiza-
tion under this section takes effect may continue serving
in that capacity until a successor has taken office. Com-
pensation for any service under this subsection shall be
at the rate at which such individual was compensated im-
mediately before the effective date of the reorganization.
(c) SENSE OF THE CONGRESS.—It is the sense of the
Congress that the Bureau of the Census should—
(1) make appropriate use of any authority af-
forded to it by the Census Address List Improve-
ment Act of 1994 (Public Law 103–430; 108 Stat.
4393), and take measures to ensure the timely im-
plementation of such Act; and
(2) streamline census questionnaires to promote
savings in the collection and tabulation of data.
413
(d) AMENDMENTS.—Effective as of the date specified
in section 7233(a)—
(1) TRANSFER OF THE BUREAU TO THE DE-
PARTMENT OF THE TREASURY.—(A) Section 2 of
title 13, United States Code, is amended by striking
‘‘is continued as’’ through the period and inserting
‘‘is an agency within, and under the jurisdiction of,
the Department of the Treasury.’’.
(B) Subsection (e) of section 12 of the Act of
February 14, 1903 (15 U.S.C. 1511(e)) is repealed.
(2) DEFINITION
OF
SECRETARY.—Title 13,
United States Code, is amended in section 1(2) by
striking ‘‘Secretary of Commerce’’ and inserting
‘‘Secretary of the Treasury’’.
(3) REFERENCES IN TITLE 13, UNITED STATES
CODE, TO THE DEPARTMENT OF COMMERCE.—Title
13, United States Code, is amended in sections 4,
9(a), 23(b), 24(e), 44, 103, 132, 211, 213(b)(2),
221, 222, 223, 224, 225(a), and 241 by striking
‘‘Department of Commerce’’ each place it appears
and inserting ‘‘Department of the Treasury’’.
(4) PROVISIONS RELATING TO THE SECRETARY
OF THE TREASURY.—(A) Section 302 of title 13,
United States Code, is amended by striking the last
sentence thereof.
414
(B) Section 303 of title 13, United States Code,
and the item relating to such section in the analysis
for chapter 9 of such title are repealed.
(C) Section 304(a) of title 13, United States
Code, is amended—
(i) by striking ‘‘Secretary of the Treasury’’
each place it appears and inserting ‘‘Secretary’’;
and
(ii) by striking ‘‘Secretary of Commerce’’
and inserting ‘‘Secretary’’.
(D)(i) Section 401(a) of title 13, United States
Code, is amended by striking ‘‘Secretary of Com-
merce’’ and inserting ‘‘Secretary’’.
(ii) Section 8(e) of the Foreign Direct Invest-
ment and International Financial Data Improve-
ments Act of 1990 (22 U.S.C. 3144(e)) is amended
by striking ‘‘Secretary of Commerce’’ and inserting
‘‘Secretary of the Treasury’’.
(iii) Section 401(a) of title 13, United States
Code, is amended by striking ‘‘Department of Com-
merce’’ and inserting ‘‘Federal Reserve System’’.
(5) COMPENSATION FOR THE POSITION OF DI-
RECTOR OF THE CENSUS.—Section 5315 of title 5,
United States Code, as amended by paragraph (7)
of section 7108(e), is further amended by inserting
415
(in lieu of the item struck by such paragraph) the
following new item:
‘‘Director of the Census, Department of the
Treasury.’’.
(6) CONFIDENTIALITY.—Section 9 of title 13,
United States Code, is amended by adding at the
end the following:
‘‘(c)(1) Nothing in subsection (a)(3) shall be consid-
ered to permit the disclosure of any matter or information
to an officer or employee of the Department of the Treas-
ury who is not referred to in subchapter II if, immediately
before the date specified in section 7233(a) of the Depart-
ment of Commerce Dismantling Act, such disclosure (if
then made by an officer or employee of the Department
of Commerce) would have been impermissible under this
section (as then in effect).
‘‘(2) Paragraph (1) shall not apply with respect to
any disclosure made to the Secretary.’’.
(e) RULE OF CONSTRUCTION.—For purposes of title
III, the reorganization of the Bureau of the Census under
this section shall be treated as if it involved a transfer
of functions from one office to another.
416
SEC. 7238. REORGANIZATION OF THE BUREAU OF ECO-
NOMIC ANALYSIS.
(a) IN GENERAL.—Effective as of the date specified
in section 7233(a)—
(1) the Bureau of Economic Analysis shall be
transferred to the Federal Reserve System; and
(2) all functions which, immediately before such
date, are functions of the Secretary of Commerce
with respect to the Bureau of Economic Analysis
shall be transferred to the Chairman of the Board
of Governors of the Federal Reserve System.
(b) INTERIM SERVICE.—The individual serving as the
Director of the Bureau of Economic Analysis immediately
before the reorganization under this section takes effect
may continue serving in that capacity until a successor
has taken office. Compensation for any service under this
subsection shall be at the rate at which such individual
was compensated immediately before the effective date of
the reorganization.
(c) REPORTS.—Not later than 18 months after the
date of the enactment of this Act, the Director of the Bu-
reau of Economic Analysis shall submit to the Congress
a written report on—
(1) the availability of any private sector re-
sources that may be capable of performing any or all
of the functions of the Bureau of Economic Analy-
417
sis, and the feasibility of having any such functions
so performed; and
(2) the feasibility of implementing a system
under which fees may be assessed by the Bureau of
Economic Analysis in order to defray the costs of
any services performed by the Bureau of Economic
Analysis, when such services are performed other
than on behalf of the Federal Government or an
agency or instrumentality thereof.
(d) RULE OF CONSTRUCTION.—For purposes of title
III, the reorganization of the Bureau of Economic Analy-
sis under this section shall be treated as if it involved a
transfer of functions from one office to another.
SEC. 7239. TERMINATED FUNCTIONS OF NTIA.
The following provisions of law are repealed:
(1) Subpart A of part IV of title III of the
Communications Act of 1934 (47 U.S.C. 390 et
seq.), relating to assistance for public telecommuni-
cations facilities.
(2) Subpart B of part IV of title III of the
Communications Act of 1934 (47 U.S.C. 394 et
seq.), relating to the Endowment for Children’s
Educational Television.
(3) Subpart C of part IV of title III of the
Communications Act of 1934 (47 U.S.C. 395 et
418
seq.), relating to Telecommunications Demonstration
grants.
SEC. 7240. TRANSFER OF SPECTRUM MANAGEMENT FUNC-
TIONS.
There are transferred to the Chairman of the Federal
Communications Commission all functions of the Sec-
retary of Commerce, the Assistant Secretary of Commerce
for Communications and Information, and the National
Telecommunications and Information Administration
under parts A and B of the National Telecommunication
and Information Administration Organization Act.
SEC. 7241. NATIONAL OCEANIC AND ATMOSPHERIC ADMIN-
ISTRATION.
(a) TERMINATION OF AUTHORITY TO MAKE FISH-
ERIES GRANTS.—No financial assistance may be provided
under any of the following laws, except to the extent the
provision of that assistance is a contractual obligation of
the United States on the day before the effective date of
this section:
(1) Section 2 of the Act of August 11, 1939
(15 U.S.C. 713c–3), popularly known as the
‘‘Saltonstall-Kennedy Act’’.
(2) Section 1 of the Act of September 2, 1960
(16 U.S.C. 753a).
419
(3) The Antarctic Marine Living Resources
Convention Act of 1984 (16 U.S.C. 2431 et seq.).
(4) The Anadromous Fish Conservation Act (16
U.S.C. 757a et seq.).
(5) Provisions of the Magnuson Fishery Con-
servation and Management Act (16 U.S.C. 1801 et
seq.) and the Department of Commerce Appropria-
tion Act of 1994 that authorize assistance to State
fishery agencies to enhance their data collection and
analysis systems to respond to coastwise fisheries
management needs.
(6) The Interjurisdictional Fisheries Act of
1986 (16 U.S.C. 4101 et seq.).
(7) Provisions of the Fish and Wildlife Act of
1956 and the Department of Commerce Appropria-
tion Act of 1994 that authorize assistance to States
for a cooperative State and Federal partnership to
provide a continuing source of fisheries statistics to
support fisheries management in the States’ terri-
torial waters and the United States exclusive eco-
nomic zone.
(8) Provisions of the Fish and Wildlife Act of
1956 and the Department of Commerce Appropria-
tion Act of 1994 that authorize assistance to States
for a cooperative program which engages State and
420
Federal agencies in the coordinated collection, man-
agement, and dissemination of fishery-independent
information on marine fisheries in support of State
territorial waters and the United States exclusive
economic zone fisheries management programs.
(9) Provisions of the Act of May 11, 1938 (16
U.S.C. 756–757), popularly known as the Mitchell
Act, and the Department of Commerce Appropria-
tion Act of 1994 that authorize assistance to State
fisheries agencies in the Pacific Northwest to protect
and enhance salmon and steelhead resources in the
region.
(10) Provisions of the Pacific Salmon Treaty
Act of 1985 (16 U.S.C. 3631–3644) and the De-
partment of Commerce Appropriation Act of 1994
that authorize assistance to States in fulfilling re-
sponsibilities under the Pacific Salmon Treaty by
providing administrative, management, and applied
research support to the States to meet the needs of
the Pacific Salmon Commission and international
commitments under the treaty.
(11) Provisions of the Marine Mammal Protec-
tion Act of 1972 (16 U.S.C. 1371–1384) and the
Department of Commerce Appropriation Act of 1994
which authorize assistance to State agencies for the
421
collection and analysis of information on marine
mammals that occur in the State waters and inter-
act with State managed fisheries.
(12) Provisions of the Pacific Salmon Treaty
Act of 1985 (16 U.S.C. 3631–3644) and the De-
partment of Commerce Appropriation Act of 1994
that—
(A) authorize assistance to States to assist
in fulfilling Federal responsibilities under the
Pacific Salmon Treaty by restoring Southeast
Alaska salmon harvests limited by the treaty
and by restoring salmon stocks as quickly as
possible; and
(B) help implement a 1989 ‘‘Understand-
ing between the United States and Canadian
Sections of the Pacific Salmon Commission
Concerning 
Joint 
Enhancement 
of
Transboundary River Salmon Stocks’’.
(b) TERMINATION OF FISHERIES TRADE PROMOTION
PROGRAM.—Section 211 of the Act of December 22, 1989
(15 U.S.C. 1511b) is repealed.
(c) CONFORMING
AMENDMENT
TO
TERMINATE
FISHERIES PROMOTION AND DEVELOPMENT TRANSFERS
AND FUNDS.—Section 2(b) of the Act of August 11, 1939
(15 U.S.C. 713c–3), popularly known as the ‘‘Saltonstall-
422
Kennedy Act’’, is repealed. Amounts remaining, on the ef-
fective date of this section, in the funds established under
that section that are not required for the provision of fi-
nancial assistance that is not otherwise terminated by this
section shall revert to the general fund of the Treasury.
(d) TERMINATION OF AUTHORITY TO GUARANTEE
OBLIGATIONS FOR FISHING VESSEL AND FISHING FACIL-
ITY CONSTRUCTION, ETC.—No new guarantee of an obli-
gation or commitment to guarantee an obligation under
title XI of the Merchant Marine Act, 1936 (46 App.
U.S.C. 1271 et seq.) may be made under authority that
was vested in the Secretary of Commerce on the day be-
fore the effective date of this section (relating to obliga-
tions for fishing vessels or fishing facilities), except to the
extent the making of such a guarantee was a contractual
obligation of the United States on the day before that ef-
fective date.
(e) TERMINATION OF COMPENSATION UNDER FISH-
ERMEN’S PROTECTIVE ACT OF 1967.—No compensation
may be paid under section 10 of the Fishermen’s Protec-
tive Act of 1967 (22 U.S.C. 1980), relating to compensa-
tion for damage, loss, or destruction of fishing vessels or
fishing gear, except to the extent the compensation was
awarded before the effective date of this section.
423
(f) TERMINATION OF COMPENSATION TO FISHERMEN
UNDER
OUTER
CONTINENTAL
SHELF
LANDS
ACT
AMENDMENTS OF 1978.—No compensation may be paid
under title IV of the Outer Continental Shelf Lands Act
Amendments of 1978 (43 U.S.C. 1841 et seq.), except to
the extent the compensation was awarded before the effec-
tive date of this section.
(g) TERMINATION OF MISCELLANEOUS RESEARCH
FUNCTIONS.—The following functions, as vested in per-
sonnel of the National Oceanic and Atmospheric Adminis-
tration on the day before the effective date of this section,
are terminated:
(1) All observation and prediction functions re-
lating to pollution research.
(2) All functions relating to estuarine and
coastal assessment research.
(h) TERMINATION OF NOAA CORPS.—
(1) TERMINATION.—The National Oceanic and
Atmospheric Administration Corps is terminated,
and the assets thereof shall be transferred to the
Commerce Programs Resolution Agency.
(2) DISPOSITION
OF
ASSETS.—The Adminis-
trator of the Commerce Programs Resolution Agen-
cy shall attempt to sell the assets of the National
Oceanic and Atmospheric Administration Corps,
424
within 18 months after the effective date specified in
section 7233(a), to a private sector entity intending
to perform substantially the same functions as were
performed by the National Oceanic and Atmospheric
Administration Corps immediately before such effec-
tive date.
(3) REPORT.—If no offer to purchase assets
under paragraph (2) is received within the 18-month
period described in such paragraph, the Commerce
Programs Resolution Agency shall submit a report
to the Congress containing recommendations on the
appropriate disposition of the assets and functions of
the National Oceanic and Atmospheric Administra-
tion Corps.
(i) DISPOSAL OF NOAA FLEET.—The Secretary of
the Interior—
(1) shall cease modernization of the National
Oceanic and Atmospheric Administration fleet of
vessels and terminate all new construction for that
fleet;
(2) shall promptly dispose of all assets compris-
ing the National Oceanic and Atmospheric Adminis-
tration fleet; and
(3) may not purchase any vessels for the Na-
tional Oceanic and Atmospheric Administration.
425
(j) OFFICE
OF OCEANIC
AND ATMOSPHERIC RE-
SEARCH.—(1) Except as otherwise provided in paragraph
(2) or (3), the Office of Oceanic and Atmospheric Re-
search shall be terminated.
(2) Functions relating to weather research of the Of-
fice of Oceanic and Atmospheric Research shall be trans-
ferred to the National Weather Service.
(3)(A) The laboratories of the Office of Oceanic and
Atmospheric Research shall be transferred to the Com-
merce Programs Resolution Agency.
(B) The Commerce Programs Resolution Agency
shall attempt to sell the property of the laboratories of
the Office of Oceanic and Atmospheric Research, within
18 months after the effective date specified in section
7233(a), to a private sector entity intending to perform
substantially the same functions as were performed by the
laboratories of the Office of Oceanic and Atmospheric Re-
search immediately before such effective date.
(C) If no offer to purchase property under subpara-
graph (B) is received within the 18-month period de-
scribed in such subparagraph, the Commerce Programs
Resolution Agency shall transfer the remaining labora-
tories to the Department of the Interior, which shall sub-
mit a report to the Congress containing recommendations
426
on the appropriate disposition of the property and func-
tions of such laboratories.
(k) NAUTICAL AND AERONAUTICAL CHARTING.—(1)
The nautical and aeronautical charting functions of the
National Oceanic and Atmospheric Administration shall
be transferred to the Defense Mapping Agency.
(2) The Defense Mapping Agency shall terminate any
functions transferred to it under paragraph (1) that are
performed by the private sector.
(l) NESDIS.—(1)(A) The National Environmental
Satellite, Data, and Information System Data Centers
shall be transferred to the Commerce Programs Resolu-
tion Agency.
(B) The Commerce Programs Resolution Agency
shall attempt to sell the property of the National Environ-
mental Satellite, Data, and Information System Data Cen-
ters, within 18 months after the effective date specified
in section 7233(a), to a private sector entity intending to
perform substantially the same functions as were per-
formed by the National Environmental Satellite, Data,
and Information System Data Centers immediately before
such effective date.
(C) If no offer to purchase property under subpara-
graph (B) is received within the 18-month period de-
scribed in such subparagraph, the Commerce Programs
427
Resolution Agency shall submit a report to the Congress
containing recommendations on the appropriate disposi-
tion of the property and functions of the National Envi-
ronmental Satellite, Data, and Information System Data
Centers.
(2) Functions related to weather satellites of the Na-
tional Environmental Satellite, Data, and Information
System shall be transferred to the National Weather Serv-
ice.
(m) NATIONAL WEATHER SERVICE.—(1) The Na-
tional Weather Service is hereby transferred to the De-
partment of the Interior.
(2)(A) The National Weather Service shall terminate
its specialized agricultural, Marine Radiofax, and forestry
weather services, and its Regional Climate Centers.
(B) The National Weather Service may terminate any
other specialized weather services not required by law to
be performed.
(n) NATIONAL MARINE FISHERIES SERVICE.—
(1) 
TRANSFER
OF
ENFORCEMENT
FUNC-
TIONS.—There are transferred to the Secretary of
Transportation all functions relating to law enforce-
ment that on the day before the effective date of this
section were authorized to be performed by the Na-
tional Marine Fisheries Service.
428
(2) TRANSFER
OF
SCIENCE
FUNCTIONS.——
There are transferred to the Director of the United
States Fish and Wildlife Service all functions relat-
ing to science that on the day before the effective
date of this section were authorized to be performed
by the National Marine Fisheries Service.
(3) TRANSFER OF SEAFOOD INSPECTION FUNC-
TIONS.—There are transferred to the Secretary of
Agriculture all functions relating to seafood inspec-
tion that on the day before the effective date of this
section were authorized to be performed by the Na-
tional Marine Fisheries Service.
(o) NATIONAL OCEAN SERVICE.—
(1) TRANSFER
OF
GEODESY
FUNCTIONS.—
There are transferred to the Director of the United
States Geological Survey all functions relating to ge-
odesy that on the day before the effective date of
this section were authorized to be performed by the
National Ocean Service.
(2) TRANSFER
OF
MARINE
AND
ESTUARINE
SANCTUARY FUNCTIONS.—There are transferred to
the Secretary of the Interior all functions relating to
marine and estuarine sanctuaries that on the day
before the effective date of this section were author-
ized to be performed by the National Ocean Service.
429
(p) ENVIRONMENTAL RESEARCH LABORATORIES.—
(1) TRANSFER.—The environmental research
laboratories of the National Oceanic and Atmos-
pheric Administration (other than laboratories of the
Office of Oceanic and Atmospheric Research, re-
ferred to in subsection (j)) shall be transferred to
the Commerce Programs Resolution Agency.
(2) DISPOSAL.—The Commerce Programs Res-
olution Agency shall attempt to sell the property of
the laboratories transferred under paragraph (1),
within 18 months after the effective date specified in
section 7233(a), to a private sector entity intending
to perform substantially the same functions as were
performed by the laboratories before such effective
date.
(3) REPORT.—If no offer to purchase property
under paragraph (2) is received within the 18-month
period described in such paragraph, the Commerce
Programs Resolution Agency shall submit a report
to the Congress containing recommendations on the
appropriate disposition of the property and functions
of the laboratories transferred under paragraph (1).
SEC. 7242. MISCELLANEOUS ABOLISHMENTS.
The following agencies and programs of the Depart-
ment of Commerce are abolished, and the functions of
430
those agencies or programs are abolished except to the ex-
tent otherwise provided in this title:
(1) The Economic Development Administration.
(2) The Minority Business Development Admin-
istration.
(3) The United States Travel and Tourism Ad-
ministration.
(4) The National Telecommunications and In-
formation Administration.
(5) The Advanced Technology Program under
section 28 of the National Institute of Standards
and Technology Act (15 U.S.C. 278n).
(6) The Manufacturing Extension Programs
under sections 25 and 26 of the National Institute
of Standards and Technology Act (15 U.S.C. 278k
and 278l).
SEC. 7243. EFFECTIVE DATE.
(a) IN GENERAL.—Except as provided in subsection
(b), this title shall take effect on the effective date speci-
fied in section 7109(a).
(b) PROVISIONS EFFECTIVE ON DATE OF ENACT-
MENT.—The following provisions of this chapter shall take
effect on the date of the enactment of this Act:
(1) Section 7201.
(2) Section 7206 (a)(2) and (d).
431
(3) Section 7232.
SEC. 7244. SENSE OF CONGRESS REGARDING USER FEES.
It is the sense of the Congress that the head of each
agency that performs a function vested in the agency by
this title should, wherever feasible, explore and implement
user fees for the provision of services in the performance
of that function, to offset operating costs.
CHAPTER 3—MISCELLANEOUS
PROVISIONS
SEC. 7251. REFERENCES.
Any reference in any other Federal law, Executive
order, rule, regulation, or delegation of authority, or any
document of or pertaining to an office from which a func-
tion is transferred by this title—
(1) to the Secretary of Commerce or an officer
of the Department of Commerce, is deemed to refer
to the head of the department or office to which
such function is transferred; or
(2) to the Department of Commerce or an
agency in the Department of Commerce is deemed
to refer to the department or office to which such
function is transferred.
SEC. 7252. EXERCISE OF AUTHORITIES.
Except as otherwise provided by law, a Federal offi-
cial to whom a function is transferred by this title may,
432
for purposes of performing the function, exercise all au-
thorities under any other provision of law that were avail-
able with respect to the performance of that function to
the official responsible for the performance of the function
immediately before the effective date of the transfer of the
function under this title.
SEC. 7253. SAVINGS PROVISIONS.
(a) LEGAL DOCUMENTS.—All orders, determinations,
rules, regulations, permits, grants, loans, contracts, agree-
ments, certificates, licenses, and privileges—
(1) that have been issued, made, granted, or al-
lowed to become effective by the President, the Sec-
retary of Commerce, any officer or employee of any
office transferred by this title, or any other Govern-
ment official, or by a court of competent jurisdic-
tion, in the performance of any function that is
transferred by this title, and
(2) that are in effect on the effective date of
such transfer (or become effective after such date
pursuant to their terms as in effect on such effective
date),
shall continue in effect according to their terms until
modified, terminated, superseded, set aside, or revoked in
accordance with law by the President, any other author-
433
ized official, a court of competent jurisdiction, or operation
of law.
(b) PROCEEDINGS.—This title shall not affect any
proceedings or any application for any benefits, service,
license, permit, certificate, or financial assistance pending
on the date of the enactment of this Act before an office
transferred by this title, but such proceedings and applica-
tions shall be continued. Orders shall be issued in such
proceedings, appeals shall be taken therefrom, and pay-
ments shall be made pursuant to such orders, as if this
title had not been enacted, and orders issued in any such
proceeding shall continue in effect until modified, termi-
nated, superseded, or revoked by a duly authorized official,
by a court of competent jurisdiction, or by operation of
law. Nothing in this subsection shall be considered to pro-
hibit the discontinuance or modification of any such pro-
ceeding under the same terms and conditions and to the
same extent that such proceeding could have been discon-
tinued or modified if this title had not been enacted.
(c) SUITS.—This title shall not affect suits com-
menced before the date of the enactment of this Act, and
in all such suits, proceeding shall be had, appeals taken,
and judgments rendered in the same manner and with the
same effect as if this title had not been enacted.
434
(d) NONABATEMENT OF ACTIONS.—No suit, action,
or other proceeding commenced by or against the Depart-
ment of Commerce or the Secretary of Commerce, or by
or against any individual in the official capacity of such
individual as an officer or employee of an office trans-
ferred by this title, shall abate by reason of the enactment
of this title.
(e) CONTINUANCE OF SUITS.—If any officer of the
Department of Commerce or the Commerce Programs
Resolution Agency in the official capacity of such officer
is party to a suit with respect to a function of the officer,
and under this title such function is transferred to any
other officer or office, then such suit shall be continued
with the other officer or the head of such other office, as
applicable, substituted or added as a party.
SEC. 7254. TRANSFER OF ASSETS.
Except as otherwise provided in this title, so much
of the personnel, property, records, and unexpended bal-
ances of appropriations, allocations, and other funds em-
ployed, used, held, available, or to be made available in
connection with a function transferred to an official or
agency by this title shall be available to the official or the
head of that agency, respectively, at such time or times
as the Director of the Office of Management and Budget
435
directs for use in connection with the functions trans-
ferred.
SEC. 7255. DELEGATION AND ASSIGNMENT.
Except as otherwise expressly prohibited by law or
otherwise provided in this title, an official to whom func-
tions are transferred under this title (including the head
of any office to which functions are transferred under this
title) may delegate any of the functions so transferred to
such officers and employees of the office of the official as
the official may designate, and may authorize successive
redelegations of such functions as may be necessary or ap-
propriate. No delegation of functions under this section
or under any other provision of this title shall relieve the
official to whom a function is transferred under this title
of responsibility for the administration of the function.
SEC. 7256. AUTHORITY OF ADMINISTRATOR WITH RESPECT
TO FUNCTIONS TRANSFERRED.
(a) DETERMINATIONS.—If necessary, the Adminis-
trator shall make any determination of the functions that
are transferred under this title.
(b) INCIDENTAL TRANSFERS.—The Administrator,
at such time or times as the Administrator shall provide,
may make such determinations as may be necessary with
regard to the functions transferred by this title, and to
make such additional incidental dispositions of personnel,
436
assets, liabilities, grants, contracts, property, records, and
unexpended balances of appropriations, authorizations, al-
locations, and other funds held, used, arising from, avail-
able to, or to be made available in connection with such
functions, as may be necessary to carry out the provisions
of this title. The Administrator shall provide for the termi-
nation of the affairs of all entities terminated by this title
and for such further measures and dispositions as may
be necessary to effectuate the purposes of this title.
SEC. 7257. PROPOSED CHANGES IN LAW.
Not later than one year after the date of the enact-
ment of this Act, the Director of the Office of Manage-
ment and Budget shall submit to the Congress a descrip-
tion of any changes in Federal law necessary to reflect
abolishments, transfers, terminations, and disposals under
this title.
SEC. 7258. CERTAIN VESTING OF FUNCTIONS CONSIDERED
TRANSFERS.
For purposes of this title, the vesting of a function
in a department or office pursuant to reestablishment of
an office shall be considered to be the transfer of the
function.
SEC. 7259. DEFINITIONS.
For purposes of this title, the following definitions
apply:
437
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Commerce
Programs Resolution Agency.
(2) AGENCY.—The term ‘‘Agency’’ means the
Commerce Programs Resolution Agency.
(3) FUNCTION.—The term ‘‘function’’ includes
any duty, obligation, power, authority, responsibility,
right, privilege, activity, or program.
(4) OFFICE.—The term ‘‘office’’ includes any
office, administration, agency, bureau, institute,
council, unit, organizational entity, or component
thereof.
(5) WIND-UP PERIOD.—The term ‘‘wind-up pe-
riod’’ means the period beginning on the effective
date specified in section 109(a) and ending on the
termination date specified in section 106(d).
SEC. 7260. LIMITATION ON ANNUAL EXPENDITURES FOR
CONTINUED FUNCTIONS.
The amount expended by the United States each fis-
cal year for performance of a function which immediately
before the effective date of this section was authorized to
be performed by an agency, officer, or employee of the De-
partment of Commerce may not exceed 75 percent of the
total amount expended by the United States for perform-
ance of that function during fiscal year 1994.
438
Subtitle D—Banking and Insurance
Reforms
CHAPTER 1—BANKING EXAMINATION
FEES
SEC. 7301. BANK EXAMINATION FEES.
(a) FDIC EXAMINATION FEES.—Section 10(e)(1) of
the Federal Deposit Insurance Act (12 U.S.C. 1820(e)(1))
is amended to read as follows:
‘‘(1) IN GENERAL.—
‘‘(A) REGULATORY
EXAMINATIONS.—The
cost of conducting any examination under sub-
section (b)(2) of an insured depository institu-
tion described in subparagraph (A) of such sub-
section shall be assessed by the Corporation
against the institution in an amount sufficient
to meet the Corporation’s expenses in carrying
out the examination.
‘‘(B) 
INSURANCE
EXAMINATIONS.—The
cost of conducting any examination of a deposi-
tory institution under subsection (b)(2) or
(b)(3), other than an examination to which sub-
paragraph (A) applies, may be assessed by the
Corporation against the institution to meet the
Corporation’s expenses in carrying out the ex-
amination.’’.
439
(b) FEDERAL
RESERVE
BOARD
EXAMINATION
FEES.—The 2d sentence of the 8th undesignated para-
graph of section 9 of the Federal Reserve Act (12 U.S.C.
326) is amended—
(1) by striking ‘‘may, in the discretion of the
Board of Governors of the Federal Reserve System,
be assessed’’ and inserting ‘‘shall be assessed’’; and
(2) by striking ‘‘and, when so assessed, shall be
paid’’ and inserting ‘‘and shall be paid’’.
(c) TECHNICAL AND CONFORMING AMENDMENT.—
Section 10(b)(2) of the Federal Deposit Insurance Act (12
U.S.C. 1820(b)(2)) is amended by inserting ‘‘an examina-
tion is required under subsection (d)(1) or’’ after ‘‘when-
ever’’.
Subchapter A—Federal Banking Agency
SEC. 7311. ESTABLISHMENT.
(a) IN GENERAL.—There is hereby established an
agency to be known as the Federal Banking Agency (here-
after in this chapter referred to as the ‘‘Agency’’) as an
independent establishment in the executive branch.
(b) INSURED DEPOSITORY INSTITUTION DEFINED.—
For purposes of this chapter, the term ‘‘insured depository
institution’’ has the meaning given to such term in section
3(c) of the Federal Deposit Insurance Act.
440
SEC. 7312. MANAGEMENT.
(a) BOARD OF DIRECTORS.—
(1) IN GENERAL.—The Agency shall be under
the management of a board of directors (hereafter in
this chapter referred to as the ‘‘Board’’) composed
of 7 members—
(A) 1 of whom shall be the Secretary of
the Treasury;
(B) 1 of whom shall be the Chairman of
the Board of Governors of the Federal Reserve
System;
(C) 1 of whom shall be the Chairperson of
the Board of Directors of the Federal Deposit
Insurance Corporation; and
(D) 4 of whom shall be appointed by the
President, by and with the advice and consent
of the Senate.
(2) POLITICAL AFFILIATION.—Not more than 2
members of the Board appointed under paragraph
(1)(D) may be members of the same political party.
(b) CHAIRPERSON AND VICE CHAIRPERSON.—
(1) CHAIRPERSON.—1 of the members of the
Board appointed under subsection (a)(1)(D) shall be
designated by the President, by and with the advice
and consent of the Senate, to serve as Chairperson
of the Board.
441
(2) VICE CHAIRPERSON.—1 of the members of
the Board appointed under subsection (a)(1)(D)
shall be designated by the President, by and with
the advice and consent of the Senate, to serve as
Vice Chairperson of the Board.
(3) ACTING CHAIRPERSON.—In the event of a
vacancy in the position of Chairperson of the Board,
or during the absence or disability of the Chair-
person, the Vice Chairperson shall act as Chair-
person.
(c) TERMS.—
(1) 5-YEAR
TERMS.—Except as provided in
paragraph (4), each member appointed under sub-
section (a)(1)(D) shall be appointed for a term of 5
years.
(2) INTERIM APPOINTMENTS.—Any member ap-
pointed to fill a vacancy occurring before the end of
the term to which such member’s predecessor was
appointed shall be appointed only for the remainder
of such term.
(3) CONTINUATION OF SERVICE.—Any member
may continue to serve after the expiration of the
term of office to which such member was appointed
until a successor has been appointed and qualified.
442
(4) STAGGERED FOR 1ST APPOINTEES.—Of the
members first appointed to the Board under sub-
section (a)(1)(D)—
(A) 1 shall be appointed for a term of 5
years;
(B) 1 shall be appointed for a term of 4
years;
(C) 1 shall be appointed for a term of 3
years; and
(D) 1 shall be appointed for a term of 2
years,
as designated by the President at the time of the
appointment.
(d) VACANCY.—Any vacancy on the Board shall be
filled in the manner in which the original appointment was
made.
(e) INELIGIBILITY FOR OTHER OFFICES.—
(1) RESTRICTIONS ON EMPLOYMENT BY DEPOS-
ITORY
INSTITUTIONS.—No member of the Board
may hold any office, position, or employment in any
insured depository institution or any affiliate (as de-
fined in section 2(k) of the Bank Holding
Company Act of 1956) of an insured depository
institution during—
(A) the time such member is in office; and
443
(B) the 2-year period beginning on the
date such member ceases to serve on the Board.
(2) OTHER RESTRICTIONS DURING SERVICE AS
MEMBER.—No member of the Board may—
(A) be an officer or director of any Federal
reserve bank or Federal home loan bank; or
(B) hold any stock in any insured deposi-
tory institution or any affiliate (as defined in
section 2(k) of the Bank Holding Company Act
of 1956) of an insured depository institution.
(3) CERTIFICATION.—Upon taking office, each
member of the Board shall file a certification under
oath with the secretary of the Board that such mem-
ber has complied with the requirements of this sub-
section.
SEC. 7313. POWERS AND DUTIES.
(a) REGULATION OF NATIONAL BANKS.—
(1) TRANSFER TO AGENCY.—All functions of
the Comptroller of the Currency are hereby trans-
ferred to the Agency.
(2) AGENCY POWERS.—The Agency shall have
all powers, duties, and authority which, before the
date of the enactment of this Act, were vested in the
Comptroller of the Currency under the following pro-
visions of law to the extent such provisions apply to
444
national banks or the office, officers, or employees of
the Comptroller of the Currency:
(A) Chapter nine of title VII and title
LXII of the Revised Statutes.
(B) The Bank Conservation Act.
(C) The Federal Deposit Insurance Act.
(D) The National Bank Receivership Act.
(E) The Act entitled ‘‘An Act additional to
the Act entitled ‘An Act to provide a national
currency secured by a pledge of United States
bonds and to provide for the circulation and re-
demption thereof,’ passed June third, eighteen
hundred and sixty four.’’ and approved March
29, 1886.
(F) The Act entitled ‘‘An Act to provide
for the conversion of national banking associa-
tions into and their merger or consolidation
with State banks, and for other purposes.’’ and
approved August 17, 1950.
(G) The National Bank Consolidation and
Merger Act.
(H) The International Banking Act of
1978.
(I) The Farm Credit Act of 1971.
446
(W) The Federal Deposit Insurance Cor-
poration Improvement Act of 1991.
(X) The Riegle-Neal Interstate Banking
and Branching Efficiency Act of 1994.
(Y) The Riegle Community Development
and Regulatory Improvement Act of 1994.
(Z) The Truth in Savings Act.
(b) REGULATION OF MEMBER BANKS, BANK HOLD-
ING COMPANIES AND AFFILIATES, AND VARIOUS INTER-
NATIONAL BANKING ENTITIES.—
(1) TRANSFER TO AGENCY.—All functions of
the Board of Governors of the Federal Reserve Sys-
tem (and any Federal reserve bank) relating to—
(A) the supervision and regulation of
banks which are members of the Federal Re-
serve System;
(B) the supervision and regulation of bank
holding companies and any subsidiary or affili-
ate of a bank holding company which is not a
depository institution;
(C) the supervision and regulation of com-
panies operating under section 25 or 25A of the
Federal Reserve Act or the International Bank-
ing Act of 1978;
447
(D) the supervision and regulation of any
company which is subject to supervision and
regulation by the Board of Governors under any
title of the Consumer Protection Act; and
(E) the supervision and regulation of any
foreign bank, any branch or agency of a foreign
bank, and any commercial lending company
controlled by a foreign bank,
are hereby transferred to the Agency.
(2) AGENCY POWERS.—The Agency shall have
all powers, duties, and authority which, before the
date of the enactment of this Act, were vested in the
Board of Governors of the Federal Reserve System
under the following provisions of law to the extent
such provisions apply to banks or other companies
described in any subparagraph of paragraph (1):
(A) Sections 6 (other than the 1st and 2d
paragraphs), 9, 19(h), 22(g), 22(h), 23A, 23B,
24(a), 24A, 25, 25A, and 29 of the Federal
Reserve Act.
(B) The Bank Holding Company Act of
1956.
(C) The Bank Holding Company Act
Amendments of 1970.
448
(D) The International Banking Act of
1978.
(E) Sections 20, 31, and 32 of the Na-
tional Banking Act of 1933.
(F) The Federal Deposit Insurance Act.
(G) Any title of the Consumer Credit Pro-
tection Act.
(H) The Bank Protection Act of 1968.
(I) The Home Mortgage Disclosure Act of
1975.
(J) The Community Reinvestment Act of
1977.
(K) The Depository Institution Manage-
ment Interlocks Act.
(L) The Bank Service Corporation Act.
(M) The Federal Financial Institutions
Examination Council Act of 1978.
(N) The Right to Financial Privacy Act of
1978.
(O) The Alternative Mortgage Transaction
Parity Act of 1982.
(P) The International Lending Supervision
Act of 1983.
(Q) The Expedited Funds Availability Act.
449
(R) The Financial Institutions Reform,
Recovery, and Enforcement Act of 1989.
(S) The Federal Deposit Insurance Cor-
poration Improvement Act of 1991.
(T) The Riegle-Neal Interstate Banking
and Branching Efficiency Act of 1994.
(U) The Riegle Community Development
and Regulatory Improvement Act of 1994.
(V) The Truth in Savings Act.
(c) REGULATION
OF SAVINGS ASSOCIATIONS
AND
SAVINGS AND LOAN HOLDING COMPANIES.—
(1) TRANSFER TO AGENCY.—All functions of
the Director of the Office of Thrift Supervision are
hereby transferred to the Agency.
(2) AGENCY POWERS.—The Agency shall have
all powers, duties, and authority which, before the
date of the enactment of this Act, were vested in the
Director of the Office of Thrift Supervision under
the following provisions of law to the extent such
provisions apply to savings associations, savings and
loan holding companies, or the office, officers, or
employees of the Director:
(A) The Home Owners’ Loan Act.
(B) The Federal Deposit Insurance Act.
450
(C) Any title of the Consumer Credit Pro-
tection Act.
(D) The Bank Protection Act of 1968.
(E) The Home Mortgage Disclosure Act of
1975.
(F) The Community Reinvestment Act of
1977.
(G) The Depository Institution Manage-
ment Interlocks Act.
(H) The Bank Service Corporation Act.
(I) The Federal Financial Institutions Ex-
amination Council Act of 1978.
(J) The Right to Financial Privacy Act of
1978.
(K) The Alternative Mortgage Transaction
Parity Act of 1982.
(L) The Expedited Funds Availability Act.
(M) The Financial Institutions Reform,
Recovery, and Enforcement Act of 1989.
(N) The Federal Deposit Insurance Cor-
poration Improvement Act of 1991.
(O) The Resolution Trust Corporation Re-
financing, Restructuring, and Improvement Act
of 1991.
451
(P) The Riegle-Neal Interstate Banking
and Branching Efficiency Act of 1994.
(Q) The Riegle Community Development
and Regulatory Improvement Act of 1994.
(R) The Truth in Savings Act.
(d) REGULATION OF STATE NONMEMBER BANKS.—
(1) TRANSFER TO AGENCY.—All functions of
the Federal Deposit Insurance Corporation relating
to 
the 
supervision 
and 
regulation 
of 
State
nonmember banks, including savings banks, (other
than insurance, conservatorship, or receivership
functions) and foreign banks with insured branches
(as defined in section 3(s)(3) of the Federal Deposit
Insurance Act) are hereby transferred to the Agen-
cy.
(2) AGENCY POWERS.—The Agency shall have
all powers, duties, and authority which, before the
date of the enactment of this Act, were vested in the
Federal Deposit Insurance Corporation or in the
Board of Directors of such Corporation under the
following provisions of law:
(A) Sections 7(a), 20, 21, 22, 27, 30(c),
32, 33, 34, 35, 36, 37, 38, 39, 42, and 44, sub-
sections (b) through (n), (r), (s), (u), and (v)
of section 8, subsections (b)(2)(A), (c), (d), and
452
(e) of section 10, subsections (c) (other than
paragraph (1)), (d), (g), (i), (j), (l), (o), and (p)
of section 18 of the Federal Deposit Insurance
Act.
(B) Any title of the Consumer Credit Pro-
tection Act.
(C) The Depository Institution Manage-
ment Interlocks Act.
(D) The Federal Financial Institutions Ex-
amination Council Act of 1978.
(E) The Home Mortgage Disclosure Act of
1975.
(F) The Right to Financial Privacy Act of
1978.
(G) The Alternative Mortgage Transaction
Parity Act of 1982.
(H) The Bank Service Corporation Act.
(I) The Expedited Funds Availability Act.
(J) The Financial Institutions Reform, Re-
covery, and Enforcement Act of 1989.
(K) The Community Reinvestment Act of
1977.
(L) The Federal Deposit Insurance Cor-
poration Improvement Act of 1991.
453
(M) The Riegle-Neal Interstate Banking
and Branching Efficiency Act of 1994.
(N) The Riegle Community Development
and Regulatory Improvement Act of 1994.
(O) The Truth in Savings Act.
(e) REGULATION OF CREDIT UNIONS.—
(1) TRANSFER TO AGENCY.—All functions of
the National Credit Union Administration relating
to the supervision and regulation of credit unions,
including the National Credit Union Administration
Central Liquidity Facility and the Community De-
velopment Credit Union Revolving Loan Fund,
(other than insurance, conservatorship, or liquidat-
ing agency functions) are hereby transferred to the
Agency.
(2) AGENCY POWERS.—The Agency shall have
all powers, duties, and authority which, before the
date of the enactment of this Act, were vested in the
National Credit Union Administration or the Na-
tional Credit Union Administration Board under the
following provisions of law:
(A) The Federal Credit Union Act.
(B) The Community Development Credit
Union Revolving Loan Fund Transfer Act.
454
(C) Any title of the Consumer Credit Pro-
tection Act.
(D) The Expedited Funds Availability Act.
(E) The Federal Financial Institutions Ex-
amination Council Act of 1978.
(F) The Right to Financial Privacy Act of
1978.
(G) The Truth in Savings Act.
(f) REGULATIONS AND ORDERS.—In addition to any
authority under any Act referred to in subsection (a), (b),
(c), (d), or (e), the Agency may prescribe such regulations
and issue such orders as the Agency may determine to
be appropriate to carry out the purposes of this chapter
and the powers and duties of the Agency under this chap-
ter and any Act referred to in any such subsection.
SEC. 7314. TECHNICAL AND CONFORMING AMENDMENTS
RELATING TO TRANSFERS OF FUNCTIONS.
(a) APPROPRIATE FEDERAL BANKING AGENCY RE-
DEFINED.—Section 3(q) of the Federal Deposit Insurance
Act (12 U.S.C. 1813(q)) is amended to read as follows:
‘‘(q) APPROPRIATE FEDERAL BANKING AGENCY.—
The term ‘appropriate Federal banking agency’ means the
Federal Banking Agency.’’.
455
(b) MEMBERS OF FDIC BOARD.—Section 2(a)(1) of
the Federal Deposit Insurance Act (12 U.S.C. 1812(a)(1))
is amended—
(1) by striking subparagraph (A) and redesig-
nating subparagraphs (B) and (C) as subparagraphs
(A) and (B), respectively;
(2) in subparagraph (A) (as so redesignated by
paragraph (1)), by striking ‘‘Director of the Office
of Thrift Supervision’’ and inserting ‘‘Chairperson of
the Federal Banking Agency’’; and
(3) in subparagraph (B) (as so redesignated by
paragraph (1)), by striking ‘‘3’’ and inserting ‘‘4’’.
Subchapter B—Abolition of Federal Banking
Agencies
SEC. 7321. OFFICE OF COMPTROLLER OF THE CURRENCY
AND POSITION OF COMPTROLLER OF THE
CURRENCY ABOLISHED.
(a) IN GENERAL.—Effective at the end of the 180-
day period beginning on the date of the enactment of this
Act, the Office of the Comptroller of the Currency and
the position of Comptroller of the Currency are hereby
abolished.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
456
(1) Chapter nine of title VII of the Revised
Statutes is amended by striking sections 324, 325,
and 326.
(2) Subchapter I of chapter 3 of title 31,
United States Code, is amended by striking section
307.
SEC. 7322. OFFICE OF THRIFT SUPERVISION AND POSITION
OF DIRECTOR OF THE OFFICE OF THRIFT SU-
PERVISION ABOLISHED.
(a) IN GENERAL.—Effective at the end of the 180-
day period beginning on the date of the enactment of this
Act, the Office of Thrift Supervision and the position of
Director of the Office of Thrift Supervision are hereby
abolished.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 3 of the Home Owners’ Loan Act
(12 U.S.C. 1462a) is amended by striking sub-
sections (a) and (b).
(2) Subchapter I of chapter 3 of title 31,
United States Code, is amended by striking section
309.
SEC. 7323. SAVINGS PROVISIONS.
(a) SAVINGS PROVISIONS RELATING TO THE COMP-
TROLLER OF THE CURRENCY.—
457
(1) EXISTING RIGHTS, DUTIES, AND OBLIGA-
TIONS
NOT
AFFECTED.—Section 7313(a)(1) shall
not affect the validity of any right, duty, or obliga-
tion of the United States, the Comptroller of the
Currency, the Office of the Comptroller of the Cur-
rency, or any other person, which—
(A) arises under or pursuant to any provi-
sion of law referred to in section 7313(a)(2);
and
(B) existed on the day before the date of
the enactment of this Act.
(2) CONTINUATION
OF
SUITS.—No action or
other proceeding commenced by or against the
Comptroller of the Currency or the Office of the
Comptroller of the Currency shall abate by reason of
the enactment of this chapter, except that the Fed-
eral Banking Agency shall be substituted for the
Comptroller or Office as a party to any such action
or proceeding.
(b) SAVINGS PROVISIONS RELATING TO THE BOARD
OF GOVERNORS OF THE FEDERAL RESERVE SYSTEM.—
(1) EXISTING RIGHTS, DUTIES, AND OBLIGA-
TIONS
NOT
AFFECTED.—Section 7313(b)(1) shall
not affect the validity of any right, duty, or obliga-
tion of the United States, the Board of Governors of
458
the Federal Reserve System, or any other person,
which—
(A) arises under or pursuant to any provi-
sion of law referred to in section 7313(b)(2);
and
(B) existed on the day before the date of
the enactment of this Act.
(2) CONTINUATION
OF
SUITS.—No action or
other proceeding commenced by or against the
Board of Governors of the Federal Reserve System
with respect to any function transferred to the Fed-
eral Banking Agency shall abate by reason of the en-
actment of this chapter, except that the Federal
Banking Agency shall be substituted for the Board
of Governors as a party to any such action or pro-
ceeding.
(c) SAVINGS PROVISIONS RELATING TO THE DIREC-
TOR OF THE OFFICE OF THRIFT SUPERVISION.—
(1) EXISTING RIGHTS, DUTIES, AND OBLIGA-
TIONS
NOT
AFFECTED.—Section 7313(c)(1) shall
not affect the validity of any right, duty, or obliga-
tion of the United States, the Director of the Office
of 
Thrift 
Supervision, 
the 
Office 
of 
Thrift
Supervision, or any other person, which—
459
(A) arises under or pursuant to any provi-
sion of law referred to in section 7313(c)(2);
and
(B) existed on the day before the date of
the enactment of this Act.
(2) CONTINUATION
OF
SUITS.—No action or
other proceeding commenced by or against the Di-
rector of the Office of Thrift Supervision or the Of-
fice of Thrift Supervision shall abate by reason of
the enactment of this chapter, except that the Fed-
eral Banking Agency shall be substituted for the
Director or Office as a party to any such action or
proceeding.
(d) SAVINGS PROVISIONS RELATING TO THE FED-
ERAL DEPOSIT INSURANCE CORPORATION.—
(1) EXISTING RIGHTS, DUTIES, AND OBLIGA-
TIONS
NOT
AFFECTED.—Section 7313(d)(1) shall
not affect the validity of any right, duty, or obliga-
tion of the United States, the Federal Deposit In-
surance Corporation, the Board of Directors of such
Corporation, or any other person, which—
(A) arises under or pursuant to any provi-
sion of law referred to in section 7313(d)(2);
and
460
(B) existed on the day before the date of
the enactment of this Act.
(2) CONTINUATION
OF
SUITS.—No action or
other proceeding commenced by or against the Fed-
eral Deposit Insurance Corporation or the Board of
Directors of such Corporation with respect to any
function transferred to the Federal Banking Agency
shall abate by reason of the enactment of this chap-
ter, except that the Federal Banking Agency may be
substituted for the Corporation or Board of Direc-
tors, as the case may be, as a party to any such ac-
tion or proceeding.
(e) SAVINGS PROVISIONS RELATING TO THE NA-
TIONAL CREDIT UNION ADMINISTRATION.—
(1) EXISTING RIGHTS, DUTIES, AND OBLIGA-
TIONS
NOT
AFFECTED.—Section 7313(e)(1) shall
not affect the validity of any right, duty, or obliga-
tion of the United States, the National Credit Union
Administration, the National Credit Union Adminis-
tration Board, or any other person, which—
(A) arises under or pursuant to any provi-
sion of law referred to in section 7313(e)(2);
and
(B) existed on the day before the date of
the enactment of this Act.
461
(2) CONTINUATION
OF
SUITS.—No action or
other proceeding commenced by or against the Na-
tional Credit Union Administration or the National
Credit Union Administration Board with respect to
any function transferred to the Federal Banking
Agency shall abate by reason of the enactment of
this chapter, except that the Federal Banking Agen-
cy may be substituted for the Administration or the
Board, as the case may be, as a party to any such
action or proceeding.
(f) CONTINUATION OF ORDERS, RESOLUTIONS, DE-
TERMINATIONS, AND REGULATIONS.—All orders, resolu-
tions, determinations, and regulations, which—
(1) have been issued, made, prescribed, or al-
lowed to become effective by the Director of the Of-
fice of Thrift Supervision, the Comptroller of the
Currency, the Federal Deposit Insurance Corpora-
tion, the Board of Governors of the Federal Reserve
System, or the National Credit Union Administra-
tion (including orders, resolutions, determinations,
and regulations which relate to the conduct of
conservatorships, 
receiverships, 
or 
liquidating
agents), or by a court of competent jurisdiction, in
the performance of functions which are transferred
by this chapter; and
462
(2) are in effect on the date this Act takes ef-
fect (or become effective after such date pursuant to
the terms of the order, resolution, determination or
regulation, as in effect on such date),
shall continue in effect according to the terms of such or-
ders, resolutions, determinations, and regulations and
shall be enforceable by or against the Federal Banking
Agency until modified, terminated, set aside, or super-
seded in accordance with applicable law by the Agency,
by any court of competent jurisdiction, or by operation of
law.
SEC. 7324. REFERENCES IN FEDERAL LAW TO FEDERAL
BANKING AGENCIES.
(a) COMPTROLLER OF THE CURRENCY AND DIREC-
TOR OF THE OFFICE OF THRIFT SUPERVISION.—Any ref-
erence in any Federal law to the Comptroller of the Cur-
rency, the Office of the Comptroller of the Currency, the
Director of the Office of Thrift Supervision, or the Office
of Thrift Supervision shall be deemed to be a reference
to the Federal Banking Agency.
(b) BOARD OF GOVERNORS OF THE FEDERAL RE-
SERVE SYSTEM.—Any reference in any Federal law to the
Board of Governors of the Federal Reserve System in
connection with any function of the Board under any
465
under this subsection and for amounts paid under para-
graph (4) shall not be construed as unused.’’.
SEC. 7326. PENALTY FOR EARLY REDEMPTION OF SAVINGS
BONDS.
(a) IN GENERAL.—Subsection (b) of section 3105 of
title 31, United States Code, is amended by adding at the
end the following new paragraph:
‘‘(3) In the case of any savings bond which is
redeemed within the 5-year period beginning on the
date the bond is issued, the redemption price paid
on the redemption shall be determined by reducing
the holding period otherwise taken into account by
6 months.’’
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to bonds issued after September
30, 1995.
SEC. 7327. ONE DOLLAR COINS.
(a) COLOR AND CONTENT.—Section 5112(b) of title
31, United States Code, is amended—
(1) in the 1st sentence, by striking ‘‘dollar,’’;
and
(2) by inserting after the 4th sentence, the fol-
lowing new sentence: ‘‘The dollar coin shall be gold-
en in color, have an unreeded edge, have tactile and
visual features that make the denomination of the
466
coin readily discernible, be minted and fabricated in
the United States, and have similar metallic,
anticounterfeiting properties as United States clad
coinage in circulation on the date of the enactment
of the United States One Dollar Coin Act of 1995.’’.
(b) AMERICAN VETERAN DOLLAR COIN.—Section
5112(d)(1) of title 31, United States Code, is amended
by striking the 5th and 6th sentences and inserting the
following new sentences: ‘‘The reverse side of the dollar
shall have a design recognizing America’s veterans. The
Secretary of the Treasury shall select an appropriate de-
sign for the obverse side of the dollar.’’.
(c) EFFECTIVE DATE.—Not later than 18 months
after the date of enactment of this Act, the Secretary of
the Treasury shall place into circulation 1 dollar coins au-
thorized under subsection (a)(1) of section 5112 of title
31, United States Code, which comply with the design re-
quirements of subsections (b) and (d)(1) of such section,
as amended by subsections (a) and (b) of this section. The
Secretary may include such coins in any numismatic set
produced by the United States Mint before the date the
coins are placed in circulation.
SEC. 7328. CEASING ISSUANCE OF ONE DOLLAR NOTES.
(a) IN GENERAL.—After the date that coins de-
scribed in section 2012(c) are first placed in circulation,
467
no Federal reserve bank may order or place into circula-
tion any $1 Federal Reserve note.
(b) EXCEPTION.—The Secretary of the Treasury
shall produce only such Federal Reserve notes of 1 dollar
denomination as are required from time to time to meet
the needs of collectors of this series. Such notes shall be
produced in sheets and sold by the Secretary, in whole,
or in part, at a price that exceeds the face value of the
currency by an amount that, at a minimum, reimburses
the Secretary for the cost of production.
Subtitle E—Specific Commerce and
Housing Program Reforms
SEC. 7401. OBLIGATION LIMITATION FOR MINORITY BUSI-
NESS DEVELOPMENT AGENCY.
The total of obligations incurred in fiscal year 1996
for expenses of the Minority Business Development Agen-
cy described under the heading ‘‘Minority Business Devel-
opment’’ in title II of the Departments of Commerce, Jus-
tice, and State, the Judiciary, and Related Agencies Ap-
propriations Act, 1995 (Public Law 103–317; 108 Stat.
1745–1746) may not exceed $44,733,000.
SEC. 7402. UNITED STATES TRAVEL AND TOURISM ADMIN-
ISTRATION.
Title III of the International Travel Act of 1961 is
repealed, the United States Travel and Tourism Adminis-
468
tration established under section 301 of such Act is termi-
nated, the Tourism Policy Council established under sec-
tion 302 of such Act is terminated, the Travel and Tour-
ism Advisory Board established under section 303 of such
Act is terminated, the officers and employees of the Ad-
ministration, Council, and Board are terminated, and the
functions of the Administration, Council, and Board are
transferred to the Secretary of Transportation.
SEC. 7403. EXPORT ADMINISTRATION.
Not more than $247,000,000 may be made available
to carry out the Export Administration Act of 1979 for
each of fiscal years 1996, 1997, 1998, 1999, and 2000.
SEC. 
7404. 
ASSISTANCE 
FOR 
PUBLIC 
TELECOMMUNI-
CATIONS FACILITIES AND TELECOMMUNI-
CATIONS DEMONSTRATIONS.
(a) REPEAL OF PUBLIC TELECOMMUNICATIONS FA-
CILITIES PROGRAM.—Subpart A of part IV of title III of
the Communications Act of 1934 (47 U.S.C. 390 et seq.)
is repealed.
(b) REPEAL OF TELECOMMUNICATIONS DEMONSTRA-
TION GRANT PROGRAM.—Section 395 of such Act (47
U.S.C. 395) is repealed.
469
SEC. 7405. ABOLISHMENT OF ADVANCED TECHNOLOGY
PROGRAM.
(a) ABOLISHMENT OF PROGRAM.—Section 28 of the
National Institute of Standards and Technology Act (15
U.S.C. 278n) is repealed.
(b) CONFORMING AMENDMENTS.—The National In-
stitute of Standards and Technology Act (15 U.S.C. 271
et seq.) is amended—
(1) in section 2(d), by striking ‘‘sections 25, 26,
and 28’’ and inserting ‘‘sections 25 and 26’’; and
(2) in section 10(h)(1), by striking ‘‘, including
the Program established under section 28,’’.
SEC. 7406. FEES FOR FEDERAL AND FEDERALLY SPON-
SORED ENTERPRISES.
(a) FEES FOR GOVERNMENT SPONSORED ENTER-
PRISES.—
(1) IN GENERAL.—To compensate the Federal
Government for borrowing and financial advantages
derived from the relationship of government-spon-
sored enterprises to the Federal Government and
treatment of such enterprises under Federal law, the
Secretary of the Treasury shall collect a fee from
each Government-sponsored enterprise for each fis-
cal year. The Secretary of the Treasury shall deposit
any such fee collected in the general fund of the
Treasury of the United States.
470
(2) AMOUNT.—The fee under this subsection
for a government-sponsored enterprise for a fiscal
year shall be the following amount:
(A) FANNIE MAE AND FREDDIE MAC.—For
the Federal National Mortgage Association and
the Federal Home Loan Mortgage Corpora-
tion—
(i) for fiscal year 1996, an amount
equal to 0.05 percent of the aggregate
original principal balance of mortgage-
backed securities and substantially equiva-
lent instruments issued or guaranteed by
such enterprise during such year;
(ii) for fiscal year 1997, an amount
equal to 0.10 percent of the aggregate
original principal balance of mortgage-
backed securities and substantially equiva-
lent instruments issued or guaranteed by
such enterprise during such year; and
(iii) for fiscal year 1998 and each fis-
cal year thereafter, an amount equal to
0.15 percent of the aggregate original prin-
cipal balance of mortgage-backed securities
and substantially equivalent instruments
471
issued or guaranteed by such enterprise
during such year.
(B) SALLIE MAE.—For the Student Loan
Marketing Association—
(i) for fiscal year 1996, an amount
equal to 0.10 percent of the aggregate
original principal balance of debt securities
issued by such enterprise during such year;
(ii) for fiscal year 1997, an amount
equal to 0.20 percent of the aggregate
original principal balance of debt securities
issued by such enterprise during such year;
and
(iii) for fiscal year 1998, an amount
equal to 0.30 percent of the aggregate
original principal balance of debt securities
issued by such enterprise during such year.
(C) CONNIE LEE.—For the College Con-
struction Loan Insurance Association—
(i) for fiscal year 1996, an amount
equal to 0.10 percent of the aggregate
original principal balance of bonds insured
or reinsured by such enterprise during
such year;
472
(ii) for fiscal year 1997, an amount
equal to 0.20 percent of the aggregate
original principal balance of bonds insured
or reinsured by such enterprise during
such year; and
(iii) for fiscal year 1998, an amount
equal to 0.30 percent of the aggregate
original principal balance of bonds insured
or reinsured by such enterprise during
such year.
(3) CALCULATION.—The Secretary of the
Treasury shall caclulate the amount of the fee under
this subsection for each fiscal year following the con-
clusion of such fiscal year and shall consult with the
Director of the Office of Federal Housing Enterprise
Oversight in determining the amount of the fees
under paragraph (2)(A).
(4) DEFINITION.—For purposes of this sub-
section, the term ‘‘government sponsored enterprise’’
means—
(A) the College Construction Loan Insur-
ance Association;
(B) the Federal Home Loan Mortgage
Corporation;
473
(C) the Federal National Mortgage Asso-
ciation; and
(D) the Student Loan Marketing Associa-
tion.
(b) GOVERNMENT NATIONAL MORTGAGE ASSOCIA-
TION GUARANTEE FEES.—Section 306(g)(3) of the Na-
tional Housing Act (12 U.S.C. 1721(g)(3)) is amended by
adding at the end the following new subparagraph:
‘‘(F) Notwithstanding any other provision of this
paragraph, the fee charged by the Association for any
guarantee of the timely payment of principal or interest
on any security or note based on or backed by mortgages
shall be—
‘‘(i) 10 basis points for any guarantee made
during fiscal year 1997; and
‘‘(ii) 15 basis points for any guarantee made
after fiscal year 1997.’’.
(c) CONFORMING AMENDMENTS.—
(1) FANNIE MAE.—The first sentence of section
304(f) of the Federal National Mortgage Association
Charter Act (12 U.S.C. 1719(f)) is amended by in-
serting ‘‘and section 7496(a) of the Restructuring a
Limited Government Act,’’ after ‘‘this Act’’.
(2) FREDDIE MAC.—Section 306(i) of the Fed-
eral Home Loan Mortgage Corporation Act (12
474
U.S.C. 1455(i)) is amended by striking ‘‘sections
303(c) and 1316(c) of this Act’’ and inserting ‘‘sub-
section (c) of this section, section 303(c) of this Act,
and section 7406(a) of the Restructuring a Limited
Government Act, and’’
SEC. 7407. EXTENSION OF SPECTRUM AUCTION AUTHORITY
OF THE FEDERAL COMMUNICATIONS COM-
MISSION.
Section 309(j)(11) of the Communications Act of
1934 (47 U.S.C. 309(j)(11)) is amended by striking ‘‘Sep-
tember 30, 1998’’ and inserting ‘‘September 30, 2000’’.
SEC. 7408. BUREAU OF CENSUS.
Amounts made available for salaries and expenses for
the Bureau of the Census for fiscal years 1996 through
2000 may not exceed $128,286,000 for each of such fiscal
years. For the purposes of this section, the term ‘‘salaries
and expenses’’ means the salaries and expenses for which
amounts were appropriated for fiscal year 1995 under the
appropriations account numbered 13–0401–0–1–376 and
identified as available budget authority under item 43.00.
SEC. 7409. COPYRIGHT OFFICE.
Amounts made available for salaries and expenses for
the Copyright Office of the Library of Congress for fiscal
years 1996 through 2000 may not exceed $9,446,000 for
each of such fiscal years. For the purposes of this section,
475
the term ‘‘salaries and expenses’’ means the salaries and
expenses for which amounts were appropriated for fiscal
year 1995 under the appropriations account numbered
03–0102–0–1–376 and identified as available budget au-
thority under item 43.00.
TITLE VIII—TRANSPORTATION
Subtitle A—Air Transportation
Program Reform
SEC. 8001. AIR TRAFFIC CONTROL CORPORATION.
(a) SHORT TITLE.—This section may be cited as the
‘‘Air Traffic Control Service Privatization and Improve-
ment Act of 1995’’.
(b) ESTABLISHMENT OF CORPORATION.—
(1) IN GENERAL.—There is established a non-
profit corporation, to be known as the Airways Cor-
poration, which—
(A) shall operate the air traffic control sys-
tem of the United States after the completion
of transfers of air traffic control facilities, per-
sonnel, and equipment under subsection (j);
(B) except as provided in paragraph (2),
shall not be an agency or establishment of the
United States Government;
476
(C) shall have its principal office in the
District of Columbia and is deemed to be a resi-
dent thereof; and
(D) to the extent consistent with this Act,
shall be subject to the District of Columbia
Business Corporation Act (D.C. Code, Section
29–301 et seq.).
(2) WAR OR NATIONAL EMERGENCY.—
(A) TRANSFER
OF
FUNCTIONS.—In the
event of a declared war or national emergency,
the President may by Executive order tempo-
rarily transfer any functions, personnel, prop-
erty, records, funds, and other matters relating
to the Airways Corporation to the Department
of Defense.
(B) DEVELOPMENT OF PLANS.—The board
of directors of the Airways Corporation, in con-
sultation with the Secretary of Defense, shall
develop plans for the effective discharge of the
functions of the Corporation in the event of a
declared war or national emergency.
(c) INCORPORATION.—
(1) APPOINTMENT
OF
INCORPORATORS.—The
President shall appoint 5 incorporators, by and with
the advice and consent of the Senate, who shall
477
serve as the initial board of directors of the Airways
Corporation until the first annual meeting of stock-
holders, or until a board of directors is elected in ac-
cordance with subsection (e), whichever is later.
(2) 
FUNCTIONS
OF
INCORPORATORS.—The
incorporators 
appointed 
under 
this 
subsection
shall—
(A) subject to approval by the President,
draft and file articles of incorporation for the
Airways Corporation, draft the initial bylaws of
the Corporation, and take any other actions
necessary to the establishment and initial oper-
ation of the Corporation;
(B) arrange for an initial stock offering in
accordance with subsection (d);
(C) establish initial criteria for determining
what is a business aircraft for purposes of sub-
section (d)(1)(C); and
(D) determine limits for liability insurance
appropriate for the Corporation to maintain in
order to cover its liability for actions or inac-
tions taken by or on behalf of the Corporation
and acquire such insurance from nongovern-
mental sources.
478
(3) ARTICLES OF INCORPORATION.—The arti-
cles of incorporation filed by the incorporators in ac-
cordance with paragraph (2)—
(A) shall provide for cumulative voting
under section 27(d) of the District of Columbia
Business Corporation Act (D.C. Code, Section
29–327(d)); and
(B) may be amended, altered, changed, or
repealed by a vote of not less than 662⁄3 percent
of the outstanding shares of the voting capital
stock of the Corporation.
(d) ISSUANCE OF STOCK.—
(1) IN
GENERAL.—The Airways Corporation
may issue and have outstanding, in such numbers
and amounts as it shall determine, shares of capital
stock consisting of 6 classes as follows:
(A) A class of shares to be known as Class
A, consisting of not more than 40 percent of all
shares of common stock issued by the Corpora-
tion, which may only be purchased by air car-
riers.
(B) A class of shares to be known as Class
B, consisting of not more than 20 percent of all
shares of common stock issued by the Corpora-
tion, which may only be purchased by persons
479
who are private pilots but are not employed by
air carriers as pilots.
(C) A class of shares to be known as Class
C, consisting of not more than 10 percent of all
shares of common stock issued by the Corpora-
tion, which may only be purchased by persons
who are not air carriers and who own one or
more business aircraft.
(D) A class of shares to be known as Class
D, consisting of not more than 71⁄2 percent of
all shares of common stock issued by the Cor-
poration, which may only be purchased by per-
sons who are employed by an air carrier as pi-
lots.
(E) A class of shares to be known as Class
E, consisting of not more than 71⁄2 percent of
all shares of common stock issued by the Cor-
poration, which may only be purchased by em-
ployees of the Corporation.
(F) A class of shares to be known as Class
F, consisting of 71⁄2 percent of all shares of
common stock issued by the Corporation, which
shall be issued to the Secretary of Transpor-
tation on behalf of the United States.
480
(G) A class of shares to be known as Class
G, consisting of 71⁄2 percent of all shares of
common stock issued by the Corporation, which
shall be issued to the Secretary of Defense on
behalf of the United States.
(2) PRICE
OF
FIRST
ISSUE.—The shares of
common stock first issued by the Airways Corpora-
tion (other than those shares issued under para-
graphs (1)(F) and (1)(G)) shall be sold at a price
equal to not more than $100 for each share.
(3) VOTING RIGHTS.—
(A) IN GENERAL.—Each share of common
stock in the Airways Corporation—
(i) shall be vested with all voting
rights; and
(ii) shall be entitled to one vote.
(B) ASSIGNMENT.—A person owning one
or more shares of Class A, B, C, D, or E stock
may assign the right to vote all or part of their
shares to any person eligible to own shares of
that class of stock.
(4) INSPECTION AND COPYING RIGHTS.—Not-
withstanding section 45(b) of the District of Colum-
bia Business Corporation Act (D.C. Code, Section
29–345(b)), a stockholder of the Airways Corpora-
481
tion shall have the right to inspect and copy records
of the Corporation pursuant to such section without
regard to the percentage of the Corporation’s stock
the stockholder holds.
(e) DIRECTORS AND OFFICERS.—
(1) BOARD OF DIRECTORS.—
(A) ELECTION.—The Airways Corporation
shall have a board of directors consisting of 15
individuals who are citizens of the United
States, elected annually as follows:
(i) 6 members elected by shareholders
owning one or more shares of Class A
stock.
(ii) 3 members elected by shareholders
owning one or more shares of Class B
stock.
(iii) 2 members elected by sharehold-
ers owning one or more shares of Class C
stock.
(iv) 1 member elected by shareholders
owning one or more shares of Class D
stock.
(v) 1 member elected by shareholders
owning one or more shares of Class E
stock.
482
(vi) 1 member appointed by the Sec-
retary of Transportation.
(vii) 1 member appointed by the Sec-
retary of Defense.
(B) CHAIRMAN.—The board of directors
shall elect one of its members annually to serve
as chairman of the board of directors.
(C) COMPENSATION
AND
EXPENSES.—
Members of the board of directors may receive
compensation in accordance with rules estab-
lished by the board of directors.
(2) PRESIDENT
OF
CORPORATION
AND
AP-
POINTMENT OF OTHER OFFICERS.—
(A) APPOINTMENT.—The Airways Cor-
poration shall have a president and such other
officers as may be appointed by the board of di-
rectors from among persons who are citizens of
the United States. Persons appointed under
this subparagraph shall serve at the pleasure of
the board of directors.
(B) 
COMPENSATION.—Individuals 
ap-
pointed under subparagraph (B) shall be com-
pensated at rates fixed by the board of direc-
tors.
483
(C) DISCLOSURE OF RECEIPT OF OTHER
COMPENSATION.—An officer of the Airways
Corporation shall disclose to the entire board of
directors salary from any source other than the
Corporation during the period of the officer’s
employment by the Corporation.
(e) POWERS.—
(1) IN
GENERAL.—The Airways Corporation
may—
(A) plan, initiate, construct, own, manage,
and operate, by itself or in cooperation with
other entities, an air traffic control system;
(B) furnish, for hire, air traffic control
services to air transportation common carriers
and other operators of civil and military air-
craft;
(C) enter into contracts under which other
entities may operate individual air traffic con-
trol facilities and provide services on behalf of
the Corporation;
(D) acquire, by construction, purchase, or
gift, physical facilities, equipment, and devices
necessary to the operations of the Corporation,
including air traffic control and associated
equipment and facilities;
484
(E) issue voting securities in accordance
with subsection (d);
(F) issue nonvoting securities, bonds, de-
bentures, and other certificates of indebtedness
as may be appropriate; and
(G) conduct or contract for the conduct of
research and development related to the oper-
ations of the Corporation and establish tech-
nical specifications of all elements of the air
traffic control system.
(2) USUAL POWERS.—To conduct activities au-
thorized by paragraph (1), the Airways Corporation
shall have the usual powers conferred upon a cor-
poration by the District of Columbia Business Cor-
poration Act (D.C. Code, Section 29–301 et seq.).
(f) FEES.—
(1) IN
GENERAL.—The Airways Corporation
may establish reasonable nondiscriminatory fees for
the provision of air traffic control services and
charge such fees to air carriers and other business
users of such services. During the 10-year period be-
ginning on the date of the enactment of this Act, the
Corporation 
may 
not 
charge 
such 
fees 
to
nonbusiness users of such services.
485
(2) REVIEW
OF
FEES.—The Secretary of
Transportation shall issue regulations not later than
180 days after the date of the enactment of this Act
for the review and appeal of fees established by the
Airways Corporation under paragraph (1).
(g) FOREIGN BUSINESS NEGOTIATIONS.—
(1) NEGOTIATIONS OF CORPORATION.—When-
ever the Airways Corporation enters into negotia-
tions with any foreign entity with respect to facili-
ties, operations, and services authorized by this sec-
tion to be conducted by the Corporation—
(A) the Corporation shall notify the Sec-
retary of State and the Secretary of Transpor-
tation regarding the initiation, conduct, and
foreign policy implications of such negotiations;
and
(B) the Secretary of State shall advise the
Corporation of relevant foreign policy consider-
ations and, upon request of the Corporation,
shall render such assistance as may be appro-
priate.
(2) NEGOTIATIONS OF SECRETARY OF STATE.—
The Secretary of State shall consult with the Air-
ways Corporation with respect to all negotiations
486
conducted by the Secretary regarding matters which
relate to air traffic control.
(h) SANCTIONS.—
(1) PETITION FOR RELIEF.—Except as other-
wise prohibited by law—
(A) if the Airways Corporation engages in
any activity, or takes any action in furtherance
of any policy, which is inconsistent with the pol-
icy and purposes of this section; or
(B) if any other person—
(i) violates any provision of this sec-
tion;
(ii) obstructs or interferes with any
activity authorized by this section;
(iii) refuses, fails, or neglects to dis-
charge any duty or responsibility under
this section; or
(iv) threatens any such violation, ob-
struction, interference, refusal, failure, or
neglect;
the district court of the United States for any dis-
trict in which such Corporation or other person re-
sides or may be found shall have jurisdiction, upon
petition of the Attorney General of the United
States, to grant such equitable relief as may be nec-
487
essary or appropriate to prevent or terminate such
activity.
(2) PUNISHMENT, LIABILITY, OR
SANCTION
UNDER OTHER PROVISIONS.—Nothing contained in
this subsection shall be considered to relieve any per-
son of any liability, punishment, or sanction under
any other law.
(i) REPORTS.—
(1) CORPORATION.—During the 5-year period
beginning on the date of the enactment of this Act,
the Airways Corporation shall transmit to the Presi-
dent and Congress, annually and at such other times
as it considers appropriate, a comprehensive and de-
tailed report of its operations, activities, and accom-
plishments under this section.
(2) ADMINISTRATOR.—During the 5-year period
beginning on the date of the enactment of this Act,
the Administrator shall transmit to Congress, annu-
ally and at such other times as the Administrator
considers appropriate, an evaluation of the capital
structure of the Airways Corporation so as to assure
Congress that such structure is consistent with the
most efficient and economical operation of the Cor-
poration.
488
(j) TRANSFER
OF FACILITIES, PERSONNEL, AND
EQUIPMENT OF CIVIL AIR TRAFFIC CONTROL SYSTEM.—
(1) IN
GENERAL.—Not later than 180 days
after the date the Senate approves the appointments
of the President under subsection (c)(1), the Sec-
retary of Transportation shall take such action as
may be necessary—
(A) to transfer to the Airways Corporation
all right, title, and interest of the United States
in, and all control of the United States over, all
facilities and equipment under the jurisdiction
of the United States on the date of the enact-
ment of this Act, which are part of the air traf-
fic control system, including the air route traf-
fic centers, terminal radar control centers, VHF
omnidirectional radio stations, long-range and
terminal radar systems, flight service stations,
and related facilities and equipment;
(B) to transfer all right of the United
States in airport control towers, landing aids,
and landing slots to owners of the airport where
such towers and aids are located and to which
such landing slots relates;
(C) to transfer to the Airways Corporation
all personnel who are employed in operating,
489
maintaining, or managing the air traffic control
system on the date of the enactment of this
Act; and
(D) except as provided in paragraph (2),
to terminate the civil service status of air traffic
control personnel.
(2) RETIREMENT BENEFITS.—
(A) IN GENERAL.—Any Federal employee
who is transferred to the Airways Corporation
under this section and who, on the day before
the date of such transfer, is subject to chapter
83 or 84 of title 5, United States Code, shall,
so long as that individual remains continuously
employed by the Airways Corporation, remain
subject to such chapter.
(B) SERVICE TO BE TREATED AS ‘‘GOV-
ERNMENT
EMPLOYMENT’’.—Any 
continuous
employment described in subparagraph (A)
shall be considered to be employment by the
Government of the United States for purposes
of such chapter 83 or 84, as applicable.
(C) CONTRIBUTIONS.—The Airways Cor-
poration shall be considered, for those individ-
uals to whom this paragraph applies, the em-
ploying agency for purposes of such chapter 83
490
or 84, as applicable, and shall be responsible for
making all appropriate employer contributions
thereunder (which, in the case of employer con-
tributions to the Civil Service Retirement and
Disability Fund, shall be as determined by the
Office of Personnel Management).
(k) LIMITATIONS ON FUNDING.—
(1) NO APPROPRIATED FUNDS.—The Airways
Corporation shall not receive any funds from the
Federal Government beyond fees paid for use of the
air traffic control system by the Federal Govern-
ment.
(2) NO
BORROWING
FROM
TREASURY.—The
Airways Corporation may not borrow money from
the Treasury of the United States or receive feder-
ally guaranteed loans.
(l) LIABILITY OF CORPORATION.—Notwithstanding
any other provision of law, the Airways Corporation is im-
mune from all tort liability with respect to the provision
of air traffic control services which is not based on fault.
(m) NONLIABILITY
OF AIR TRAFFIC CONTROL-
LERS.—A person employed by the Airways Corporation as
an air traffic controller may not be held personally liable
by any Federal or State court for negligent actions or in-
actions (other than actions or inactions that constitute
491
gross negligence or that demonstrate a greater disregard
of a duty of care than gross negligence, including inten-
tional tortious conduct) of such person in carrying out any
duty of such person for the Corporation. The Corporation
may be held liable for such actions or inactions.
(n) REDUCTION IN TAX ON TRANSPORTATION OF
PERSONS BY AIR.—
(1) IN GENERAL.—Subsections (a) and (b) of
section 4261 of the Internal Revenue Code of 1986
(relating to transportation of persons by air) are
each amended by striking ‘‘10 percent’’ and insert-
ing ‘‘3.5 percent’’.
(2) EFFECTIVE DATE.—The amendments made
by paragraph (1) shall apply to transportation be-
ginning after the 30th day following the date of the
enactment of this Act but shall not apply to
amounts paid on or before such 30th day.
(o) DEFINITIONS.—As used in this section—
(1) the terms ‘‘airport’’ and ‘‘public-use air-
port’’ have the meaning such terms have under sec-
tion 47102 of title 49, United States Code;
(2) the terms ‘‘air carrier’’, ‘‘aircraft’’, ‘‘air
transportation’’, ‘‘civil aircraft’’, ‘‘citizen of the
United States’’, ‘‘person’’, and ‘‘United States’’ have
492
the meaning such terms have under section 40102
of title 49, United States Code;
(3) the term ‘‘Administration’’ means the Fed-
eral Aviation Administration; and
(4) the term ‘‘Administrator’’ means the Ad-
ministrator of the Federal Aviation Administration.
(p) CONFORMING AMENDMENTS.—Not later than 1
year after the date of the enactment of this Act, the Sec-
retary of Transportation shall submit to Congress such
conforming amendments to the laws of the United States
as the Secretary of Transportation determines are nec-
essary to implement this section.
SEC. 8002. OBLIGATION LIMITATION FOR AIRPORT IM-
PROVEMENT PROGRAM.
Section 47104 of title 49, United States Code, is
amended be adding at the end the following:
‘‘(d) OBLIGATION
LIMITATION.—Notwithstanding
any other provision of law, the Secretary may not incur
obligations under subsection (b) of this section in any of
fiscal years 1996 through 2000 which exceed 75 percent
of the obligations incurred under subsection (b) in fiscal
year 1995.’’.
493
SEC. 8003. TERMINATION OF ESSENTIAL AIR SERVICE PRO-
GRAM.
Sections 41737(d)(2) and 41742 of title 49, United
States Code, are each amended by striking ‘‘1998’’ and
inserting ‘‘1995’’.
SEC. 8004. OBLIGATION LIMITATION FOR FAA OPERATIONS.
The total of obligations incurred in each of fiscal
years 1996, 1997, 1998, 1999, and 2000 for expenses of
the Federal Aviation Administration described under the
heading ‘‘Operations’’ in title I of the Department of
Transportation and Related Agencies Appropriations Act,
1995 (Public Law 103–331; 108 Stat. 2474–2475) may
not exceed $4,581,000 per fiscal year.
SEC. 8005. REPEAL OF AUTHORIZATIONS FOR THE AIRWAY
SCIENCE PROGRAM, COLLEGIATE TRAINING
INITIATIVE, 
AND 
AIR 
CARRIER 
MAINTE-
NANCE 
TECHNICIAN 
TRAINING 
FACILITY
GRANT PROGRAM.
(a) AIRWAY SCIENCE PROGRAM.—All authority for—
(1) the Secretary of Transportation to enter
into grant agreements with universities or colleges
having an airway science curriculum recognized by
the Federal Aviation Administration, to conduct
demonstration projects in the development, advance-
ment, or expansion of airway science programs; and
494
(2) the Federal Aviation Administration to
enter into competitive grant agreements with institu-
tions of higher education having airway science cur-
ricula, and all authorizations to appropriate for such
purposes, as enacted under the head, ‘‘Federal Avia-
tion Administration, Facilities and Equipment’’, in
the Department of Transportation and Related
Agencies Appropriations Acts for fiscal years ending
before October 1, 1993;
is repealed.
(b) COLLEGIATE
TRAINING
INITIATIVE.—Section
362 of the Department of Transportation and Related
Agencies Appropriations Act, 1993 (Public Law 102–
388), is repealed, except that the Administrator of the
Federal Aviation Administration may continue to convert
appointment of persons who have been appointed pursuant
to such section prior to the effective date of this Act from
the excepted service to a career conditional or career ap-
pointment in the competitive civil service, pursuant to sub-
section (c) of such section.
(c) 
AIR
CARRIER
MAINTENANCE
TECHNICIAN
TRAINING FACILITY GRANT PROGRAM.—Section 119 of
Public Law 102–581 (49 U.S.C. App. 1354 note) is re-
pealed.
495
SEC. 8006. FEES FOR USE OF SLOTS AT HIGH DENSITY AIR-
PORTS.
Section 41714 of title 49, United States Code, is
amended—
(1) by redesignating subsection (h) as sub-
section (i); and
(2) by inserting after subsection (g) the follow-
ing:
‘‘(h) FEES.—Not later than September 1, 1995, the
Secretary shall establish fees for the use of slots at high
density airports in an amount sufficient to result in the
collection of $300,000,000 per fiscal year for each fiscal
year beginning after September 30, 1995. The Secretary
shall collect such fees in fiscal year 1996 and each fiscal
year thereafter and shall deposit the amounts collected in
the general fund of the Treasury.’’.
Subtitle B—Highway
Transportation Program Reform
SEC. 8101. TERMINATION OF INTERSTATE COMMERCE COM-
MISSION.
(a) IN GENERAL.—There are transferred to the Sec-
retary, effective January 1, 1994, all functions of the
Commission.
(b) AUTHORITY OF OFFICE OF MANAGEMENT AND
BUDGET.—The Director of the Office of Management and
Budget, in consultation with the Commission and the Sec-
496
retary, may make such determinations as may be nec-
essary with regard to the functions transferred by this sec-
tion, and to make such additional incidental dispositions
of assets, liabilities, contracts, property, and records, as
may be necessary to carry out the provisions of this sec-
tion. The unobligated funds of the Commission shall not
be transferred to the Department of Transportation in
order to carry out the transfer of functions under this sec-
tion, and the number of fulltime employee positions within
the Department of Transportation shall not be increased
as a result of such transfer of functions.
(c) JOINT PLANNING FOR TRANSFER.—The Chair-
man of the Commission and the Secretary shall, beginning
as soon as practicable after the date of enactment of this
section, jointly plan for the orderly transfer of functions
under this section.
(d) INTERIM USE OF INTERSTATE COMMERCE COM-
MISSION PERSONNEL.—Prior to January 1, 1994, and
with the consent of the Commission, the Secretary may
use the services of officers, employees, and other personnel
of the Commission under such terms and conditions as
will reasonably facilitate the orderly transfer of functions
under this section.
(e) SAVINGS PROVISIONS.—
497
(1) IN GENERAL.—All orders, determinations,
rules, regulations, permits, contracts, certificates, li-
censes, and privileges—
(A) which have been issued, made, grant-
ed, or allowed to become effective by any agency
or official thereof, or by a court of competent
jurisdiction, in the performance of any function
which is transferred by this section to the Sec-
retary from the Commission; and
(B) which are in effect immediately before
the transfer of functions by this section,
shall continue in effect according to their terms until
modified, terminated, superseded, set aside, or re-
voked in accordance with law by the Secretary or
any other duly authorized official, by any court of
competent jurisdiction, or by operation of law.
(2) CONTINUATION
OF
PROCEEDINGS.—The
transfer of functions by this section shall not affect
any proceedings, including rulemaking proceedings,
or any application for any license, permit, or certifi-
cate, pending before the Commission immediately
before the transfer takes effect. Such proceedings
and applications shall be continued at the Depart-
ment of Transportation. Orders shall be issued in
such proceedings, and appeals shall be taken there-
498
from, as if this section had not been enacted; and
orders issued in any such proceedings shall continue
in effect until modified, terminated, superseded, or
revoked by the Secretary of Transportation, by a
court of competent jurisdiction, or by operation of
law. Nothing in this subsection shall be deemed to
prohibit the discontinuance or modification of any
such proceeding under the same terms and condi-
tions and to the same extent that such proceeding
could have been discontinued or modified if this sec-
tion had not been enacted.
(3) EFFECT ON PENDING CIVIL ACTIONS.—Ex-
cept as provided in paragraph (5)—
(A) the transfer of any function under this
section shall not affect any civil action relating
to such function which is commenced prior to
the date the transfer takes effect; and
(B) in all such actions, proceedings shall
be had, appeals taken, and judgments rendered,
in the same manner and effect as if this section
had not been enacted.
(4) NONABATEMENT OF ACTIONS.—No action
or other proceeding commenced by or against any
officer in that officer’s official capacity as an officer
of the Commission shall abate by reason of the
499
transfer of any function under this section. No cause
of action by or against the Commission, or by or
against any officer thereof in that officer’s official
capacity, shall abate by reason of the transfer of any
function under this section.
(5) JUDICIAL ADMINISTRATIVE PROVISION.—If
immediately before the transfer of functions by this
section the Commission or any officer thereof in that
officer’s official capacity is a party to an action re-
lating to a function transfer by this section, then
such action shall be continued with the Secretary or
other appropriate official of the Department of
Transportation substituted or added as a party.
(6) REFERENCES.—With respect to any func-
tion transferred by this section and performed on or
after the effective date of the transfer, reference in
any Federal law to the Interstate Commerce Com-
mission or the Commission (insofar as such term re-
fers to the Interstate Commerce Commission), or to
any officer or office thereof, shall be deemed to refer
to the Department of Transportation, or other offi-
cial or component of the Department of Transpor-
tation in which such function vests.
(7) 
EXERCISE
OF
FUNCTIONS
BY
SEC-
RETARY.—In the exercise of any function trans-
500
ferred by this section, the Secretary shall have the
same authority as that vested in the Commission
with respect to such function immediately preceding
its transfer, and actions of the Secretary shall have
the same force and effect as when exercised by the
Commission. Orders and actions of the Secretary in
the exercise of the functions transferred under this
section shall be subject to judicial review to the same
extent and in the same manner as if such orders and
actions had been by the Commission in the exercise
of such functions immediately preceding their trans-
fer. Any statutory requirements relating to notice,
hearings, actions upon the record, or administrative
review that apply to any functions transferred by
this section shall apply to the exercise of such func-
tions by the Secretary.
(f) REPORTS.—No later than July 1, 1994, the Sec-
retary shall submit to the appropriate committees of Con-
gress a report on the functions transferred from the Com-
mission to the Department of Transportation under this
section. The report shall include—
(1) an assessment of benefits compared to costs
associated with each of these functions, both with re-
spect to persons affected directly and to the public
generally;
501
(2) recommendations for the elimination of
functions identified as redundant, or substantially
the same as functions or services which are per-
formed by the Department of Transportation or
other public or private organizations prior to the
transfer of functions under this section; and
(3) recommendations to modify or eliminate
those functions that do not provide substantial eco-
nomic or safety benefits to the general public.
(g) CONFORMING AMENDMENTS.—
(1) EXECUTIVE LEVEL PAY RATES.—
(A) Section 5314 of title 5, United States
Code, is amended by striking ‘‘Chairman, Inter-
state Commerce Commission.’’.
(B) Section 5315 of title 5, United States
Code, is amended by striking ‘‘Members, Inter-
state Commerce Commission.’’.
(2) TERMINATION
OF
COMMISSION.—Sections
10301 through 10308 of title 49, United States
Code, are repealed.
(3) EFFECTIVE DATE.—The amendments made
by this section shall become effective on January 1,
1994.
(h) DEFINITIONS.—In this section—
502
(1) the term ‘‘Commission’’ means the Inter-
state Commerce Commission;
(2) the term ‘‘function’’ means a function,
power, or duty; and
(3) the term ‘‘Secretary’’ means the Secretary
of Transportation.
(i) RESCISSION AND TRANSFER OF FUNDS.—Of the
funds made available under the heading ‘‘Interstate Com-
merce Commission—Salaries and Expenses’’ in the De-
partment of Transportation and Related Agencies Appro-
priations Act, 1994 (Public Law 103–122)—
(1) $18,000,000 is rescinded; and
(2) $15,000,000 shall be transferred to and
merged with the appropriation in such Act for ‘‘DE-
PARTMENT OF TRANSPORTATION—OFFICE
OF THE SECRETARY—Immediate Office of the
Secretary’’.
SEC. 8102. CUSTOMS TONNAGE FEES.
(a) INCREASE IN FEES.—Section 36 of the Act of
August 5, 1909 (46 App. 121, 36 Stat. 111), is amend-
ed—
(1) by striking ‘‘9 cents per ton, not to exceed
in the aggregate 45 cents per ton in any one year,
for fiscal years 1991, 1992, 1993, 1994, 1995,
1996, 1997, 1998’’ and inserting ‘‘24 cents per ton,
503
not to exceed in the aggregate $1.20 per ton in any
one year, for fiscal years 1996, 1997, 1998, 1999,
and 2000’’; and
(2) by striking ‘‘27 cents per ton, not to exceed
$1.35 per ton per annum, for fiscal years 1991,
1992, 1993, 1994, 1995, 1996, 1997, 1998’’ and in-
serting ‘‘71 cents per ton, not to exceed $3.55 per
ton per annum, for fiscal years 1996, 1997, 1998,
1999, and 2000’’.
(b) CONFORMING AMENDMENT.—The Act entitled
‘‘An Act concerning tonnage duties on vessels entering
otherwise than by sea’’, approved March 8, 1910 (36 Stat.
234; 46 App. U.S.C. 132), is amended by striking ‘‘9 cents
per ton, not to exceed in the aggregate 45 cents per ton
in any one year, for fiscal years 1991, 1992, 1993, 1994,
1995, 1996, 1997, and 1998’’ and inserting ‘‘24 cents per
ton, not to exceed in the aggregate $1.20 per ton in any
one year, for fiscal years 1996, 1997, 1998, 1999, and
2000’’.
SEC. 8103. FEES FOR OPERATION OF FOREIGN REPAIR STA-
TIONS.
Not later than September 1, 1995, the Secretary of
Transportation shall establish fees for maintenance and
repairs carried out on aircraft not owned or operated by
the United States, and engines and other parts and com-
504
ponents of such aircraft, at foreign repair stations oper-
ated by the Federal Aviation Administration in an amount
sufficient to cover the cost of operating such stations in
each fiscal year beginning after September 30, 1995. The
Secretary shall collect such fees in fiscal year 1996 and
each fiscal year thereafter and shall deposit the amounts
collected in the general fund of the Treasury.
SEC. 8104. ELIMINATION OF FUNDING FOR HIGHWAY DEM-
ONSTRATION PROJECTS.
(a) REPEAL
OF AUTHORIZATION
OF APPROPRIA-
TIONS.—Sections 1103(b), 1104(b), 1105(f), 1106(a)(2),
1106(b)(2), 1107(b), and 1108(b) of the Intermodal Sur-
face Transportation Efficiency Act of 1991 (105 Stat.
2027–2063) are each amended by striking ‘‘through
1997’’ and inserting ‘‘through 1995’’.
(b) CONFORMING AMENDMENTS.—Sections 1103(c),
1104(c), 1105(g)(2), 1106(a)(3), 1106(b)(3), 1107(c),
and 1108(c) of such Act are each amended by striking
‘‘1995, 1996, and 1997’’ and inserting ‘‘and 1995’’.
Subtitle C—Rail Transportation
Program Reform
SEC. 8201. AMTRAK.
Section 24104(a) of title 49, United States Code, is
amended to read as follows:
505
‘‘(a) IN GENERAL.—There are authorized to be ap-
propriated to the Secretary of Transportation—
‘‘(1) $612,000,000 for fiscal year 1996;
‘‘(2) $612,000,000 for fiscal year 1997;
‘‘(3) $612,000,000 for fiscal year 1998;
‘‘(4) $303,000,000 for fiscal year 1999; and
‘‘(5) $303,000,000 for fiscal year 2000,
for the benefit of Amtrak for capital expenditures under
this part, operating expenses, and payments described in
subsection (c)(1)(A) through (C).’’.
SEC. 8202. ELIMINATION OF FUNDING FOR MAGLEV PROTO-
TYPE DEVELOPMENT PROGRAM.
(a) IN GENERAL.—Section 1036(d) of the Intermodal
Surface Transportation Efficiency Act of 1991 (49 U.S.C.
309 note; 105 Stat. 1986) is amended—
(1) in paragraph (1) by striking ‘‘the following’’
and all that follows through ‘‘DEMONSTRATION PRO-
GRAM.—For’’ and inserting ‘‘for’’; and
(2) in paragraph (2) by striking subparagraph
(A) and by redesignating subparagraphs (B) and (C)
as subparagraphs (A) and (B), respectively.
(b) RESCISSION
OF FUNDS.—Of the funds made
available under the heading ‘‘Federal Railroad Adminis-
tration—Railroad Research and Development’’ in the De-
partment of Transportation and Related Agencies Appro-
506
priations Act, 1994 (Public Law 103–122), $20,000,000
is rescinded, to be derived from magnetic levitation re-
search and analysis activities.
SEC. 8203. LOCAL RAIL FREIGHT ASSISTANCE.
Section 22108(a)(3) of title 49, United States Code,
is amended by striking ‘‘under this subsection to the Sec-
retary for any period after September 30, 1994’’ and in-
serting in lieu thereof ‘‘to the Secretary for any period
after September 30, 1995’’.
SEC. 8204. REDUCTION AND MODIFICATION OF BOATING
SAFETY GRANTS.
(a) TRANSFER OF AMOUNTS FOR STATE BOATING
SAFETY PROGRAMS.—
(1) TRANSFERS.—Section 4(b) of the Act of
August 9, 1950 (16 U.S.C. 777c(b)), is amended to
read as follows:
‘‘(b)(1) Of the balance of each annual appropriation
remaining after making the distribution under subsection
(a), an amount equal to $40,000,000 for fiscal year 1996,
$55,000,000 for fiscal year 1997, and $69,000,000 for
each of fiscal years 1998 and 1999, shall, subject to para-
graph (2), be used as follows:
‘‘(A) A sum equal to $10,000,000 of the
amount available for each of fiscal years 1996
through 1999 shall be available for use by the Sec-
507
retary of the Interior for grants under section
5604(c) of the Clean Vessel Act of 1992. Any por-
tion of such a sum available for a fiscal year that
is not obligated for those grants before the end of
the following fiscal year shall be transferred to the
Secretary of Transportation and shall be expended
by the Secretary of Transportation for State rec-
reational boating safety programs under section
13106 of title 46, United States Code.
‘‘(B) A sum equal to $30,000,000 of the
amount available for fiscal year 1996, $45,000,000
of the amount available for fiscal year 1997, and
$59,000,000 of the amount available for each of fis-
cal years 1998 and 1999, shall be transferred to the
Secretary of Transportation and shall be expended
by the Secretary of Transportation for State rec-
reational boating safety programs under section
13106 of title 46, United States Code.
Any portion of such a sum available for a fiscal year that
is not obligated for those grants before the end of the fol-
lowing fiscal year shall be transferred to the Secretary of
Transportation and shall be expended by the Secretary of
Transportation for State recreational boating safety pro-
grams under section 13106 of title 46, United States
Code.
508
‘‘(2)(A) The amount transferred under paragraph
(1)(B) for a fiscal year shall be reduced by the lesser of—
‘‘(i) the amount appropriated to the Secretary
of Transportation for that fiscal year to carry out
the purposes of section 13106 of title 46, United
States Code, from the Boat Safety Account in the
Aquatic Resources Trust Fund established under
section 9504 of the Internal Revenue Code of 1986;
or
‘‘(ii) $35,000,000; or
‘‘(iii) for fiscal year 1996 only, $30,000,000.
‘‘(B) The amount of any reduction under subpara-
graph (A) shall be apportioned among the several States
under subsection (d) by the Secretary of the Interior.’’.
(2) 
CONFORMING
AMENDMENT.—Section
5604(c)(1) of the Clean Vessel Act of 1992 (33
U.S.C. 1322 note) is amended by striking ‘‘section
4(b)(2) of the Act of August 9, 1950 (16 U.S.C.
777c(b)(2), as amended by this Act)’’ and inserting
‘‘section 4(b)(1) of the Act of August 9, 1950 (16
U.S.C. 777c(b)(1))’’.
(3) LIMITATION
ON
OTHER
DISTRIBUTION.—
Notwithstanding any other provision of law, for fis-
cal year 1996, of the amount appropriated in ac-
cordance with section 3 of the Act of August 9,
509
1950 (16 U.S.C. 777b), $20,000,000 shall be ex-
cluded from the total amount subject to the 18 per-
cent calculation of section 4(a) of such Act (16
U.S.C. 777c(a)).
(b) EXPENDITURE OF AMOUNTS FOR STATE REC-
REATIONAL
BOATING
SAFETY
PROGRAMS.—Section
13106 of title 46, United States Code, is amended—
(1) in subsection (a)(1) by striking the first
sentence and inserting the following: ‘‘Subject to
paragraph (2), the Secretary may expend under con-
tracts with States under this chapter in each fiscal
year for State recreational boating safety programs
an amount equal to the sum of the amount appro-
priated from the Boat Safety Account for that fiscal
year plus the amount transferred to the Secretary
under section 4(b)(1) of the Act of August 9, 1950
(16 U.S.C. 777c(b)(1)) for that fiscal year.’’; and
(2) by amending subsection (c) to read as fol-
lows:
‘‘(c) For expenditure under this chapter for State rec-
reational boating safety programs there are authorized to
be appropriated to the Secretary of Transportation from
the Boat Safety Account established under section 9504
of the Internal Revenue Code of 1986 (26 U.S.C. 9504)
not more than $35,000,000 each fiscal year.’’.
510
Subtitle D—Miscellaneous
Transportation Program Reform
SEC. 8301. FEDERAL AID FOR MASS TRANSIT.
(a) REDUCED FEDERAL SHARE.—
(1) 
COMPREHENSIVE
PLANNING.—Section
5303(h)(5) of title 49, United States Code, is
amended by striking ‘‘80’’ and inserting ‘‘50’’.
(2) BLOCK GRANTS.—Section 5307(e) of such
title is amended by striking ‘‘80’’ and inserting
‘‘50’’.
(3) DISCRETIONARY GRANT PROGRAM.—Section
5309(h) of such title is amended by striking ‘‘80’’
and inserting ‘‘50’’.
(4) RURAL PROGRAM.—Section 5311(g)(2) of
such title is amended by striking ‘‘80’’ and inserting
‘‘50’’.
(5) TRAINING PROGRAMS.—Section 5312(c)(3)
of such title is amended by striking ‘‘75’’ and insert-
ing ‘‘50’’.
(6) NATIONAL MASS TRANSPORTATION INSTI-
TUTE.—Section 5315(d) of such title is amended by
striking ‘‘80’’ and inserting ‘‘50’’.
(7) UNIVERSITY RESEARCH INSTITUTES.—Sec-
tion 5316(f) of such title is amended by inserting
before the period at the end the following: ‘‘; except
511
that the Federal share of the costs of activities con-
ducted with a grant under this section shall be 50
percent’’.
(8) UNIVERSITY TRANSPORTATION CENTERS.—
Section 5317(b)(5)(C) of such title is amended by
striking ‘‘80’’ and inserting ‘‘50’’.
(9) BICYCLE
FACILITIES.—Section 5319 of
such title is amended by striking ‘‘90’’ and inserting
‘‘50’’.
(10) SUSPENDED LIGHT RAIL SYSTEM TECH-
NOLOGY PILOT PROJECT.—Section 5320(i) of such
title is amended by striking ‘‘80’’ and inserting
‘‘50’’.
(11) ACQUISITION OF EQUIPMENT UNDER THE
CLEAN
AIR
AND
AMERICANS
WITH
DISABILITIES
ACTS.—Section 5323(i) of such title is amended by
striking ‘‘90’’ and inserting ‘‘50’’.
(12) PROJECT MANAGEMENT OVERSIGHT.—Sec-
tion 5327(c)(3) of such title is amended by striking
‘‘the entire’’ and inserting ‘‘50 percent of the’’.
(b) ELIMINATION OF OPERATING ASSISTANCE.—
(1) BLOCK GRANTS.—Section 5307 of such title
is amended—
512
(A) in subsection (b)(1) by striking ‘‘im-
provement, and operating’’ and inserting ‘‘and
improvement’’;
(B) in subsection (b)(2) by striking ‘‘that
cannot be used to pay operating expenses under
this section’’;
(C) in subsection (e) by striking the second
sentence;
(D) by striking subsection (f);
(E) in subsection (g)(1) by striking ‘‘(ex-
cept a project for operating expenses)’’; and
(F) 
by 
redesignating 
subsections 
(g)
through (n) as subsections (f) through (m), re-
spectively.
(2) TRANSPORTATION
FACILITIES
TO
MEET
SPECIAL NEEDS.—
(A) IN GENERAL.—Sections 5301(d) and
5310 of such title are repealed.
(B) CONFORMING AMENDMENTS.—Section
5338 of such title is amended—
(i) in subsection (a) by striking
‘‘5310,’’ each place it appears (including
the subsection heading); and
(ii) in subsection (j) by striking para-
graph (2) and by redesignating paragraphs
513
(3), (4), and (5) as paragraphs (2), (3),
and (4), respectively.
(3) RURAL PROGRAM.—Section 5311 of such
title is amended—
(A) in subsection (b) by striking the par-
enthetical phrase;
(B) in subsection (e) by striking ‘‘(1)’’ and
by striking paragraph (2);
(C) in subsection (f)(1)(D) by striking
‘‘operating’’ and all that follows through ‘‘user-
side subsidies, and’’;
(D) in subsection (g)(2) by striking the
second sentence;
(E) by striking subsection (h); and
(F) by redesignating subsections (i) and (j)
as subsections (h) and (i), respectively.
(4) SUSPENDED
LIGHT
RAIL
SYSTEM
TECH-
NOLOGY PILOT PROJECT.—Section 5320 of such title
is amended—
(A) by striking the second sentence of sub-
section (e); and
(B) in subsection (h)—
(i) by striking paragraph (2); and
514
(ii) by redesignating paragraphs (3)
and (4) as paragraphs (2) and (3), respec-
tively.
Subtitle E—Administrative Reform
SEC. 8401. REDUCTION IN OVERHEAD EXPENSES OF DE-
PARTMENT OF TRANSPORTATION.
(a) IN GENERAL.—The amount obligated by the De-
partment of Transportation during fiscal year 1996 for
overhead expenses shall not exceed an amount sufficient
to reduce outlays for such expenses during such fiscal year
(as compared to such outlays during fiscal year 1995) by
$498,000,000.
(b) OVERHEAD EXPENSES.—For purposes of this
section, the term ‘‘overhead expenses’’ means expenses
within the following object classifications established by
the Director of the Office of Management and Budget:
(1) 21.0 (travel and transportation of persons).
(2) 22.0 (transportation of things).
(3) 23.1 (rental payments to GSA).
(4) 23.3 (communications, utilities, and mis-
cellaneous charges).
(5) 24.0 (printing and reproduction).
(6) 25.1 (consulting services).
(7) 25.2 (other services).
(8) 25.5 (research and development contracts).
515
(9) 26.0 (supplies and materials).
(10) 31 (equipment).
TITLE IX—COMMUNITY AND
REGIONAL DEVELOPMENT
Subtitle A—Housing Program
Reforms
SEC. 9001. TERMINATION OF EXPANSION OF RURAL RENT-
AL HOUSING PROGRAM.
Section 515 of the Housing Act of 1949 (42 U.S.C.
1485) is amended by inserting after subsection (g) the fol-
lowing new subsection:
‘‘(h) PROHIBITION OF NEW LOANS.—After the date
of the enactment of the Restructuring a Limited Govern-
ment Act, the Secretary may not make or insure, or enter
into any commitment to make or insure, any loan under
this section.’’.
Subtitle B—Community and Re-
gional 
Development 
Program
Reforms
SEC. 9101. ELIMINATION OF FUNDING FOR ENVIRON-
MENTAL RESEARCH PROGRAMS OF TEN-
NESSEE VALLEY AUTHORITY.
For fiscal years beginning after September 30, 1995,
no amounts may be appropriated to the Tennessee Valley
516
Authority for activities of the Authority’s environmental
research center and national fertilizer research center.
SEC. 9102. ELIMINATION OF CDBG PROGRAM.
(a) REPEAL.—Title I of the Housing and Community
Development Act of 1974 (42 U.S.C. 5301 et seq.) is here-
by repealed.
(b) TRANSITION.—Any amounts appropriated to
carry out title I of the Housing and Community Develop-
ment Act of 1974 before the date of the enactment of this
Act shall be used in accordance with the provisions of such
title as in effect immediately before the enactment of this
Act.
SEC. 9103. TERMINATION OF ECONOMIC DEVELOPMENT
ADMINISTRATION.
(a) IN GENERAL.—The Economic Development Ad-
ministration is terminated.
(b) REPEAL OF ACTS.—The Public Works and Eco-
nomic Development Act of 1965 (42 U.S.C. 3121 et seq.)
and the Local Public Works Capital Development and In-
vestment Act of 1976 (42 U.S.C. 6701 et seq.) are re-
pealed.
(c) CONCLUSION OF OUTSTANDING AFFAIRS.—
(1) IN GENERAL.—The Secretary of Commerce
shall provide for the conclusion of any outstanding
affairs of the Economic Development Administra-
517
tion, including matters affecting the disposition of
personnel.
(2) AUTHORITY.—In carrying out this sub-
section, the Secretary of Commerce may exercise any
authority that was provided to the Secretary under
the Acts repealed by subsection (b), as such Acts
were in effect on the day before the effective date of
this section, and is necessary or appropriate to ad-
minister and fulfill the terms of any grant, contract,
agreement, loan, obligation, debenture, or guarantee
made by the Secretary pursuant to such Acts.
(d) EFFECT OF TERMINATION ON EXPENDITURE OF
FUNDS ALREADY RECEIVED.—Nothing in this section
may be construed to prevent the expenditure of any funds
received from a grant or loan under the Acts repealed by
subsection (b). Such funds shall be subject to such laws
and regulations as applied to the funds on the day before
the effective date of this section.
(e) ECONOMIC DEVELOPMENT REVOLVING FUND.—
(1) CONTINUATION TO FINISH BUSINESS.—The
Economic Development Revolving Fund established
by section 203 of the Public Works and Economic
Development Act of 1965 (42 U.S.C. 3143) shall
continue in existence for the following purposes:
518
(A) COLLECTIONS AND REPAYMENTS.—To
receive collections and repayments in connection
with assistance extended under the Acts re-
pealed by subsection (b).
(B) PAYMENT OF OBLIGATIONS.—To pay
obligations and make expenditures in connec-
tion with the Acts repealed by subsection (b).
(2) TERMINATION OF FUND.—
(A) CERTIFICATION.—When, in the discre-
tion of the Secretary of Commerce, the Eco-
nomic Development Revolving Fund is no
longer necessary to carry out the activities
under paragraph (1), the Secretary of Com-
merce shall certify to the Secretary of the
Treasury that the Economic Development Re-
volving Fund is no longer necessary.
(B) TERMINATION.—Upon receipt of the
certification under subparagraph (A), the Sec-
retary of the Treasury shall terminate the Eco-
nomic Development Revolving Fund and deposit
into the general fund of the Treasury as mis-
cellaneous receipts any moneys remaining in the
Fund. The Secretary of the Treasury shall de-
posit into the general fund of the Treasury any
collections and repayments made after the ter-
519
mination of the Economic Development Revolv-
ing Fund in connection with the Acts repealed
by subsection (b).
(f) EFFECTIVE DATE.—This section shall take effect
on October 1, 1995.
SEC. 9104. TERMINATION OF APPALACHIAN REGIONAL
COMMISSION.
(a) IN GENERAL.—The Appalachian Regional Com-
mission is terminated.
(b) REPEAL OF ACTS.—The Appalachian Regional
Development Act of 1965 (40 U.S.C. App. 1 et seq.) is
repealed.
(c) CONCLUSION OF OUTSTANDING AFFAIRS.—
(1) IN
GENERAL.—The President shall take
such actions as may be necessary and appropriate to
conclude any outstanding affairs of the Appalachian
Regional Commission, including matters affecting
the disposition of personnel.
(2) AUTHORITY.—In carrying out this sub-
section, the President may exercise any authority
that was provided to the Appalachian Regional Com-
mission under the Appalachian Regional Develop-
ment Act of 1965, as in effect on the day before the
effective date of this section, and is necessary or ap-
propriate to administer and fulfill the terms of any
520
grant, contract, loan, or other obligation entered into
by the Appalachian Regional Commission under such
Act.
(d) EXPENDITURE OF FUNDS.—Nothing in this sec-
tion may be construed to prevent the expenditure of any
funds received under the Appalachian Regional Develop-
ment Act of 1965. Such funds shall be subject to such
laws and regulations as applied to the funds on the day
before the effective date of this section.
(e) EFFECTIVE DATE.—This section shall take effect
on October 1, 1995.
SEC. 9105. ELIMINATION OF RURAL DEVELOPMENT LOAN
AND GRANT PROGRAMS.
(a) REPEAL OF THE RURAL ELECTRIFICATION ACT
OF 1936.—The Rural Electrification Act of 1936 (7
U.S.C. 901–950b) is hereby repealed.
(b) ELIMINATION OF CERTAIN PROGRAMS UNDER
THE CONSOLIDATED FARM AND RURAL DEVELOPMENT
ACT.—
(1) Section 304 of the Consolidated Farm and
Rural Development Act (7 U.S.C. 1924) is amended
by striking subsection (b).
(2) Section 306 of such Act (7 U.S.C. 1926) is
hereby repealed.
521
(3) Section 306A of such Act (7 U.S.C. 1926a)
is hereby repealed.
(4) Section 306B of such Act (7 U.S.C. 1926b)
is hereby repealed.
(5) Section 306C of such Act (7 U.S.C. 1926c)
is hereby repealed.
(6) Section 310B of such Act (7 U.S.C. 1932)
is hereby repealed.
(7) Section 312(a) of such Act (7 U.S.C.
1942(a)) is amended in the 1st sentence—
(A) by striking clauses (5), (6), (8), (11),
(12), and (13);
(B) by adding ‘‘or’’ at the end of clause
(9);
(C) by striking the comma at the end of
clause (10) and inserting a period; and
(D) by redesignating clauses (7), (9), and
(10) as clauses (5), (6), and (7), respectively.
(8) Section 312 of such Act (7 U.S.C. 1942) is
amended by striking subsections (b), (c), and (d)
and redesignating subsection (e) as subsection (b).
(c) ELIMINATION OF CERTAIN PROGRAMS UNDER
THE FOOD, AGRICULTURE, CONSERVATION, AND TRADE
ACT OF 1990.—
522
(1) Subtitle B of title XXIII of the Food, Agri-
culture, Conservation, and Trade Act of 1990 (7
U.S.C. 2007–2007e) is hereby repealed.
(2) Section 2322 of such Act (7 U.S.C. 1926–
1) is hereby repealed.
(3) Section 2324 of such Act (7 U.S.C. 1926
note) is hereby repealed.
(4) Section 2326 of such Act (7 U.S.C. 1926b
note) is amended by striking subsection (b).
(5) Subtitle D of title XXIII of such Act (7
U.S.C. 950aaa–950aaa–4 and 1932 note) is hereby
repealed.
(d) ELIMINATION
OF CERTAIN PROGRAM UNDER
THE FOOD SECURITY ACT OF 1985.—Section 1323 of the
Food Security Act of 1985 (7 U.S.C. 1932 note) is hereby
repealed.
(e) CONFORMING AMENDMENTS.—
(1) CONSOLIDATED FARM AND RURAL DEVEL-
OPMENT ACT AMENDMENTS.—
(A) Section 307(a)(3) of the Consolidated
Farm and Rural Development Act (7 U.S.C.
1927(a)(3)) is amended—
(i) in subparagraph (A), by striking
‘‘and essential community facilities’’; and
(ii) by striking subparagraph (C).
523
(B) Section 307(a) of such Act (7 U.S.C.
1927(a)) is amended by striking paragraph (4).
(C) Section 307(a)(5) of such Act (7
U.S.C. 1927(a)(5)) is amended—
(i) by striking ‘‘(A) Except as pro-
vided in subparagraph (B), the’’ and in-
serting ‘‘The’’; and
(ii) by striking subparagraph (B).
(D) Section 307(a)(6)(B) of such Act (7
U.S.C. 1927(a)(6)(B)) is amended—
(i) by adding ‘‘and’’ at the end of
clause (i);
(ii) by striking clauses (ii) through
(vi); and
(iii) by redesignating clause (vii) as
clause (ii).
(E) Section 307(c) of such Act (7 U.S.C.
1927(c)) is amended by striking ‘‘, and for obli-
gations in connection with loans to associations
under section 306, shall take liens on the facil-
ity or such other security as he may determine
to be necessary’’.
(F) Section 309(g)(1) of such Act (7
U.S.C. 1929(g)(1)) is amended by striking ‘‘the
last sentence of section 306(a)(1),’’.
524
(G) Section 309A(a) of such Act (7 U.S.C.
1929a(a)) is amended by inserting ‘‘(as such
sections were in effect before the effective date
of the Restructuring a Limited Government
Act),’’ after ‘‘312(b),’’.
(H) Section 309A(g) of such Act (7 U.S.C.
1930(g)) is amended—
(i) by striking paragraph (1); and
(ii) in paragraph (8), by striking
‘‘make grants under sections 306(a) and
310B of this title,’’.
(I) Section 310A of such Act (7 U.S.C.
1931) is amended by striking ‘‘, the last sen-
tence of section 306(a)(1),’’.
(J) Section 316(a) of such Act (7 U.S.C.
1946(a)) is amended by striking paragraph (3).
(K) Section 317 of such Act (7 U.S.C.
1947) is amended by striking ‘‘(except section
312(b))’’.
(L) Section 333A(a) of such Act (7 U.S.C.
1983a(a)) is amended by striking paragraph
(4).
(M) Section 344 of such Act (7 U.S.C.
1994) is hereby repealed.
525
(N) Section 353A of such Act (7 U.S.C.
2001a) is amended by inserting ‘‘(as in effect
before the effective date of the Restructuring a
Limited Government Act)’’ before the period.
(O) Section 365 of such Act (7 U.S.C.
2008) is hereby repealed.
(P) Section 366 of such Act (7 U.S.C.
2008a) is hereby repealed.
(Q) Section 367 of such Act (7 U.S.C.
2008b) is hereby repealed.
(R) Section 368 of such Act (7 U.S.C.
2008b) is hereby repealed.
(2) DEPARTMENT
OF
AGRICULTURE
REORGA-
NIZATION ACT OF 1994 AMENDMENTS.—
(A) Section 233(b) of the Department of
Agriculture Reorganization Act of 1994 (7
U.S.C. 6943(b)) is amended by striking para-
graph (2) and redesignating paragraph (3) as
paragraph (2).
(B) Section 234(b) of such Act (7 U.S.C.
6944(b)) is amended by striking paragraphs (1)
and (3) and redesignating paragraphs (2), (4),
and (5) as paragraphs (1) through (3), respec-
tively.
526
(3) COOPERATIVE FORESTRY ASSISTANCE ACT
OF 1978 AMENDMENT.—Section 10(b)(3) of the Co-
operative Forestry Assistance Act of 1978 (7 U.S.C.
2106(b)(3)) is amended by inserting ‘‘, as in effect
before the effective date of the Restructuring a Lim-
ited Government Act’’ before the period.
(4) AGRICULTURAL
ACT
OF
1970
AMEND-
MENT.—Section 901(b) of the Agricultural Act of
1970 (42 U.S.C. 3122(b)) is amended by inserting
‘‘, as in effect before the effective date of the Re-
structuring a Limited Government Act’’ before the
period.
(5) ROBERT
T. STAFFORD
DISASTER
RELIEF
AND EMERGENCY ASSISTANCE ACT AMENDMENTS.—
Section 310(a) of the Robert T. Stafford Disaster
Relief and Emergency Assistance Act (42 U.S.C.
5153(a)) is amended by striking paragraph (4) and
redesignating paragraphs (5) through (7) as para-
graphs (4) through (6), respectively.
(f) NO EFFECT ON EXISTING CONTRACTS AND OBLI-
GATIONS.—The amendments made by this section shall
not be construed to affect any right, power, or duty grant-
ed pursuant to any contract entered into or obligation
made before the effective date of this Act.
527
(g) SALE OF OUTSTANDING RURAL DEVELOPMENT
LOANS.—
(1) IN GENERAL.—Notwithstanding any other
provision of law, not later than the end of the 3-year
period that begins with the effective date of this Act,
the Secretary of Agriculture shall sell to private in-
vestors all interests of the United States in all quali-
fied loans made before such effective date that are
outstanding at the time of the sale, for cash only, on
the most favorable terms to the Federal Government
that are then obtainable.
(2) QUALIFIED
LOAN
DEFINED.—As used in
paragraph (1), the term ‘‘qualified loan’’ means a
loan made or insured under—
(A) the Rural Electrification Act of 1936
(as in effect before the effective date of this
Act);
(B) section 304(b), 306, 306C, 310B, or
clause (5), (6), (8), (11), (12), or (13) of sub-
section (a), or subsection (b) or (c), of section
312, of the Consolidated Farm and Rural De-
velopment Act (as so in effect); or
(C) subtitle B of title XXIII, or section
2322 or 2324, of the Food, Agriculture, Con-
528
servation, and Trade Act of 1990 (as so in ef-
fect).
Subtitle C—Administrative
Reforms
SEC. 9201. OPERATION OF INDIAN PROGRAMS.
Amounts made available for the operation of Indian
programs for fiscal years 1996 through 2000 may not ex-
ceed $1,443,244,000 for each of such fiscal years. For the
purposes of this section, the term ‘‘operation of Indian
programs’’ means those programs, projects, and activities
for which amounts were appropriated for fiscal year 1995
under the appropriations account numbered 14–2100–0–
1–999, as adjusted under item 90.00 (relating to adjust-
ments to gross budget authority and outlays).
SEC. 9202. BUREAU OF INDIAN AFFAIRS CONSTRUCTION.
Amounts appropriated for construction with respect
to the Bureau of Indian Affairs for fiscal years 1996
through 2000 may not exceed $83,111,000 for each of
such fiscal years. For the purposes of this section, the
term ‘‘construction with respect to the Bureau of Indian
Affairs’’ means those programs, projects, and activities for
which amounts were appropriated for fiscal year 1995
under the appropriations account numbered 14–2301–0–
1–452 and identified as budget authority under item
40.00.
529
TITLE X—EDUCATION AND
TRAINING
Subtitle A—Job Training Reform
SEC. 10001. SHORT TITLE.
This subtitle may be cited as the ‘‘Employment En-
hancement Reform Act’’.
CHAPTER 1—BLOCK GRANTS TO STATES
SEC. 10011. STATEMENT OF PURPOSE.
It is the purpose of this chapter to establish a block
grant program to prepare individuals for employment in
the labor force by increasing their occupational and edu-
cational skills, resulting in improved long-term employ-
ability, increased employment and earnings, and reduced
welfare dependency.
SEC. 10012. AUTHORIZATION.
(a) GRANTS TO STATES.—The Secretary of Labor
may provide grants to States for the purpose of providing
employment assistance to eligible individuals in such
States in accordance with this chapter.
(b) GRANTS TO INDIAN TRIBES AND MIGRANT AND
SEASONAL FARMWORKER ORGANIZATIONS.—Not more
than 5 percent of the amount appropriated to carry out
this chapter for a fiscal year may be used by the Secretary
to provide grants to Indian tribes and migrant and sea-
sonal farmworker organizations for the purpose of provid-
531
(3) 331⁄3 percent shall be allocated on the basis
of the relative number of economically disadvantaged
adults within each State as compared to the total
number of economically disadvantaged adults in all
States.
SEC. 10014. APPLICATION.
The Secretary may provide a grant to a State under
section 10012 only if such State submits to the Secretary
an application which contains such information as the Sec-
retary may reasonably require, including a description of
the program to be established by the State under section
10015.
SEC. 10015. USE OF AMOUNTS.
(a) ESTABLISHMENT OF EMPLOYMENT ASSISTANCE
PROGRAM.—
(1) IN GENERAL.—The Secretary may provide a
grant to a State under section 10012 only if such
State agrees that it will use all amounts received
from such grant to establish a program to provide
employment assistance to eligible individuals de-
scribed in paragraph (2).
(2) ELIGIBLE
INDIVIDUALS.—An individual
shall be eligible to receive employment assistance
under the program if such individual—
532
(A) has attained the age of 14 and is eco-
nomically disadvantaged;
(B)(i) has been terminated or laid off or
who has received a notice of termination or lay-
off from employment, is eligible for or has ex-
hausted entitlement to unemployment com-
pensation, and is unlikely to return to the indi-
vidual’s previous industry or occupation;
(ii) has been terminated, has received no-
tice of termination, or has reason to believe that
such individual will be terminated or receive no-
tice of termination or lay off from employment,
as a result of any permanent closure of or any
substantial layoff at a plant, facility, or enter-
prise; or
(iii) was self-employed (including farmers
and ranchers) and is unemployed as a result of
general economic conditions in the community
in which the individual resides or because of
natural disasters, subject to regulations pre-
scribed by the Secretary;
(C) is an individual with a disability;
(D) is a member of the Armed Forces who
is being separated under other than adverse
conditions;
533
(E) is a veteran who is unemployed; or
(F) is a displaced homemaker.
(b) CONDUCT OF PROGRAM.—In carrying out the
program described in subsection (a), the State shall meet
the following requirements:
(1)(A) The State shall ensure the profiling and
evaluation of eligible individuals for the purpose of
determining the amount of employment assistance
services, including, subject to subparagraph (B), the
amount of supportive services, if appropriate, to be
provided to such individuals. In profiling and evalu-
ating such individuals, the State shall classify indi-
viduals in 1 of the following 3 categories:
(i) Job-ready and in need of placement
services.
(ii) Job-ready and in need of remedial
skills enhancement.
(iii) Non-job-ready and in need of remedial
education.
(B) The State shall ensure that eligible individ-
uals receive information relating to the provision of
supportive services from sources other than under
this subchapter for the purpose of participating in
the program under this subchapter.
534
(2) The State shall provide appropriate employ-
ment assistance services to eligible individuals based
upon the classification of the individual in the cat-
egories described in clauses (i) through (iii) of para-
graph (1)(A). Such assistance may not be used to
provide stipends or direct payments to individuals
for participation in the program, including payments
for supportive services, except that such assistance
may include payments for transportation costs,
based on need, of such individuals for participation
in the program.
(3) The State shall monitor the rate at which
individuals in the program successfully obtain em-
ployment after separation from the program in ac-
cordance with the following criteria:
(A) With respect to individuals classified in
the category described in paragraph (1)(A)(i),
employment for a period of not less than 6
months under which—
(i) the individual works an average of
at least 35 hours per week; and
(ii) the individual receives wages equal
to not less than 65 percent of the average
wages received for employment during the
535
2-year period ending on the date of enroll-
ment in the program.
(B) With respect to individuals classified
in 
the 
category 
described 
in 
paragraph
(1)(A)(ii)—
(i) demonstration of proficiency of
those skill areas of the individual assessed
as deficient; and
(ii) employment for a period of not
less than 6 months in accordance with the
requirements described in subparagraph
(A).
(C) With respect to individuals classified in
the 
category 
described 
in 
paragraph
(1)(A)(iii)—
(i) demonstration of proficiency in
education and skills commensurate with a
high school degree; and
(ii) employment for a period of not
less than 6 months in accordance with the
requirements described in subparagraph
(A).
(4) The State shall, to the extent practicable,
establish one-stop-shop centers throughout the State
at which eligible individuals are provided information
536
on the various types of employment assistance serv-
ices available under the program and at which such
individuals are profiled and evaluated in accordance
with paragraph (1)(A).
(c) DISCRETIONARY ACTIVITIES.—In carrying out
the program described in subsection (a), the State may
carry out the following activities:
(1) The State may allow eligible individuals to
participate in education and job search activities for
non-traditional employment.
(2) The State may establish a State employ-
ment coordinating council (or designate a similar ex-
isting council) which will—
(A) study the emerging economic and em-
ployment trends, job creation opportunities, and
other employment and job training needs of in-
dividuals in the State;
(B) based upon the study conducted under
subparagraph (A), propose additional appro-
priate activities to be carried out under the pro-
gram; and
(C) report the results of the study con-
ducted under subparagraph (A) and the pro-
posed additional appropriate activities under
subparagraph (B) to—
537
(i) the State agency responsible for
carrying out the program;
(ii) the Governor; and
(iii) the State legislature.
SEC. 10016. REPORTS.
(a) REPORT TO THE SECRETARY.—Not later than 1
year after the date on which a State receives amounts
from a grant under section 10012, and in each subsequent
fiscal year in which the State receives amounts from such
grant, the State shall submit to the Secretary a report
containing—
(1) the total number of individuals who applied
for participation in the program in the fiscal year;
(2) the total number of individuals enrolled in
the program in the fiscal year and the total number
of individuals who have re-enrolled in the program
for such fiscal year;
(3) the period of time spent in the program by
individuals who have separated from the program
and the rate at which such individuals successfully
obtained employment after such separation in ac-
cordance with the criteria described in subpara-
graphs (A) through (C) of section 10015(b)(3); and
(4) any other appropriate information requested
by the Secretary.
538
(b) REPORT TO CONGRESS.—The Secretary shall an-
nually submit to the Congress a report containing—
(1) a compilation of the information contained
in the reports received by the Secretary under sub-
section (a); and
(2) an evaluation of the block grant program
under this subchapter.
SEC. 10017. REDUCTION OR TERMINATION OF PAYMENTS
UNDER GRANT.
(a) DETERMINATION OF SUCCESS IN PLACING INDI-
VIDUALS IN EMPLOYMENT.—
(1) IN GENERAL.—The Secretary shall deter-
mine, based upon the information contained in the
reports submitted by a State under section
10016(a), whether or not the State has been suc-
cessful in placing individuals in employment during
each 2-year period under the program.
(2) CRITERIA.—In making a determination
under paragraph (1), the Secretary shall take into
consideration appropriate criteria, including the gen-
eral economic conditions of the State during the 2-
year period referred to in such paragraph.
(b) REDUCTION OR TERMINATION OF PAYMENTS.—
If the Secretary determines under subsection (a) that a
State has not been successful in placing individuals in em-
539
ployment during any 2-year period under the program, the
Secretary may—
(1) reduce the amount of payments under the
grant to such State for subsequent fiscal years; or
(2) terminate payments under the grant to such
State.
(c) CONTINUATION OF PAYMENTS.—The Secretary
may reinstate payments or increase payments under a
grant with respect to a State that the Secretary has deter-
mined under subsection (a) has not been successful in
placing individuals in employment in accordance with sub-
section (b), if the Secretary subsequently determines that
such State has implemented appropriate modifications to
the program.
SEC. 10018. DEFINITIONS.
For the purposes of this chapter, the following defini-
tions apply:
(1) AREA OF SUBSTANTIAL UNEMPLOYMENT.—
The term ‘‘area of substantial unemployment’’
means any area which has an average rate of unem-
ployment of at least 6.5 percent for the most recent
twelve months as determined by the Secretary. De-
terminations of areas of substantial unemployment
shall be made once each fiscal year.
540
(2) 
ECONOMICALLY
DISADVANTAGED.—The
term ‘‘economically disadvantaged’’ means an indi-
vidual who—
(A) receives, or is a member of a family
which receives, cash welfare payments under a
Federal, State, or local welfare program;
(B) has, or is a member of a family which
has, received a total family income for the six-
month period prior to application for the pro-
gram involved (exclusive of unemployment com-
pensation, child support payments, and welfare
payments) which, in relation to family size, was
not in excess of the higher of—
(i) the official poverty line (as defined
by the Office of Management and Budget,
and revised annually in accordance with
section 673(2) of the Omnibus Budget
Reconciliation Act of 1981 (42 U.S.C.
9902(2)); or
(ii) 70 percent of the lower living
standard income level;
(C) is receiving (or has been determined
within the 6-month period prior to the applica-
tion for the program involved to be eligible to
541
receive) food stamps pursuant to the Food
Stamp Act of 1977;
(D) qualifies as a homeless individual
under subsections (a) and (c) of section 103 of
the Stewart B. McKinney Homeless Assistance
Act;
(E) is a foster child on behalf of whom
State or local government payments are made;
(F) in cases permitted by regulations of
the Secretary, is an individual with a disability
whose own income meets the requirements of
subparagraph (A) or (B), but who is a member
of a family whose income does not meet such
requirements; or
(G) is an individual meeting appropriate
criteria approved by the State.
(3) INDIVIDUAL WITH A DISABILITY.—The term
‘‘individual with a disability’’ means an individual
who has a physical or mental disability which for
such individual constitutes or results in a substantial
handicap to employment.
(4) LOW-INCOME
LEVEL.—The term ‘‘low-in-
come level’’ means $7,000 with respect to income in
1969, and for any later year means that amount
which bears the same relationship to $7,000 as the
542
Consumer Price Index for that year bears to the
Consumer Price Index for 1969, rounded to the
nearest $1,000.
(5) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Labor.
(6) STATE.—The term ‘‘State’’ means each of
the several States, the District of Columbia, the
Commonwealth of Puerto Rico, the Commonwealth
of the Northern Mariana Islands, American Samoa,
Guam, the Virgin Islands, the Federated States of
Micronesia, the Republic of the Marshall Islands,
and the Republic of Palau.
(7) UNEMPLOYED
INDIVIDUALS.—The term
‘‘unemployed individuals’’ means individuals who are
without jobs and who want and are available for
work. The determination of whether individuals are
without jobs shall be made in accordance with the
criteria used by the Bureau of Labor Statistics of
the Department of Labor in defining individuals as
unemployed.
(8) VETERAN.—The term ‘‘veteran’’ means an
individual who served in the active military, naval, or
air service, and who was discharged or released
therefrom under conditions other than dishonorable.
543
(9) VOCATIONAL EDUCATION.—The term ‘‘vo-
cational education’’ means organized educational
programs offering a sequence of courses which are
directly related to the preparation of individuals in
paid or unpaid employment in current or emerging
occupations requiring other than a baccalaureate or
advanced degree. Such programs shall include com-
petency-based applied learning which contributes to
an individual’s academic knowledge, higher-order
reasoning, and problem-solving skills, work attitudes,
general employability skills, and the occupational-
specific skills necessary for economic independence
as a productive and contributing member of society.
Such term also includes applied technology edu-
cation.
(10) DISPLACED HOMEMAKER.—The term ‘‘dis-
placed homemaker’’ means an individual who has
been providing unpaid services to family members in
the home and who—
(A) has been dependent either—
(i) on public assistance and whose
youngest child is within 2 years of losing
eligibility under part A of title IV of the
Social Security Act (42 U.S.C. 601 et
seq.); or
544
(ii) on the income of another family
member but is no longer supported by that
income; and
(B) is unemployed or underemployed and is
experiencing difficulty in obtaining or upgrad-
ing employment.
(11) 
NONTRADITIONAL
EMPLOYMENT.—The
term ‘‘nontraditional employment’’ means occupa-
tions or fields of work where women or men, as the
case may be, comprise less than 25 percent of the
individuals employed in such occupation or field of
work.
SEC. 10019. TRANSFER OF FUNDS.
Notwithstanding any other provision of law, any
amounts appropriated to carry out any provision of law
specified in part 2 of chapter 2 which are not obligated
or expended on or after the end of the first fiscal year
beginning after the date of the enactment of this sub-
chapter shall be made available to carry out this sub-
chapter.
SEC. 10020. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appro-
priated to carry out this chapter $8,000,000,000 for each
of the fiscal years 1997 through 2001.
545
(b) AVAILABILITY.—Amounts appropriated pursuant
to the authorization of appropriations in subsection (a) are
authorized to remain available until expended.
CHAPTER 2—CONSOLIDATION AND RE-
PEAL OF CERTAIN FEDERAL EMPLOY-
MENT ASSISTANCE PROGRAMS
PART 1—CONSOLIDATION OF PROGRAMS
SEC. 10031. CERTAIN COMMUNITY-BASED PROJECTS RE-
GARDING HEALTH CARE FOR THE HOME-
LESS; CONFORMING AMENDMENT REGARD-
ING PUBLIC LAW 102–321.
The Stewart B. McKinney Homeless Assistance Act
(Public Law 100–77) is amended by striking section 612
(relating to homeless individuals with chronic mental ill-
ness).
SEC. 10032. CERTAIN EMPLOYMENT-RELATED PROGRAMS
UNDER REHABILITATION ACT OF 1973.
(a) SUPPORTED EMPLOYMENT
FOR INDIVIDUALS
WITH MOST SEVERE DISABILITIES.—Section 101(a) of
the Rehabilitation Act of 1973 (29 U.S.C. 721(a)) is
amended—
(1) in paragraph (5), by amending subpara-
graph (B) to read as follows:
‘‘(B) provide satisfactory assurances to the Commis-
sioner that the State has studied and considered a broad
546
variety of means for providing services to individuals with
the most severe disabilities, including the provision of serv-
ices leading to supported employment; and’’; and
(2) by amending paragraph (25) to read as fol-
lows:
‘‘(25) provide assurances satisfactory to the Sec-
retary that the State has an acceptable plan for developing
a collaborative program with appropriate entities to pro-
vide supported employment services for individuals with
the most severe disabilities who require supported employ-
ment services to enter or retain competitive employment;’’.
(b) SPECIAL RECREATION ACTIVITIES AND SERV-
ICES.—
(1) IN GENERAL.—Section 101(a)(12) of the
Rehabilitation Act of 1973 (29 U.S.C. 721(a)(12))
is amended—
(A) in subparagraph (A), by striking
‘‘and’’ after the semicolon at the end;
(B) in subparagraph (B), by adding ‘‘and’’
after the semicolon at the end; and
(C) by adding at the end the following sub-
paragraph:
‘‘(C) provide for entering into agreements with the
operators of community rehabilitation programs or to
make awards of grants or contracts to nonprofit private
547
organizations, for the provision of special recreation activi-
ties and services, that are, whenever possible, provided in
settings with peers who are not individuals with disabil-
ities;’’.
(2) SCOPE
OF
SERVICES.—Section 103(a) of
the Rehabilitation Act of 1973 (29 U.S.C. 723(a))
is amended—
(A) in paragraph (15), by striking ‘‘and’’
after the semicolon at the end;
(B) in paragraph (16), by striking the pe-
riod at the end and inserting ‘‘; and’’; and
(C) by adding at the end the following
paragraph:
‘‘(17) special recreation activities and serv-
ices.’’.
(c) PROJECTS WITH INDUSTRY.—Section 101(a) of
the Rehabilitation Act of 1973 (29 U.S.C. 721(a)) is
amended—
(1) in paragraph (35), by striking ‘‘and’’ after
the semicolon at the end;
(2) in paragraph (36), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following para-
graph:
548
‘‘(37) provide satisfactory assurances to the Commis-
sioner that the State has awarded grants to individual em-
ployers, community rehabilitation program providers,
labor unions, trade associations, Indian tribes, tribal orga-
nizations, designated States units, and other entities that
are jointly financed to create and expand job and career
opportunities for individuals with disabilities, which pro-
vide training in realistic work settings, job placements, de-
velopment and modification of jobs and career opportuni-
ties, and distribution of rehabilitation technology, includ-
ing necessary support services.’’.
(d) DEFINITIONS.—Section 7 of the Rehabilitation
Act of 1973 (29 U.S.C. 706) is amended by adding at
the end the following paragraph:
‘‘(36) The term ‘special recreation activities and serv-
ices’ means activities and services that provide individuals
with disabilities with recreational activities and related ex-
periences to aid in the employment, mobility, socialization,
independence, and community integration of such individ-
uals. These may include, but are not limited to, vocational
skills development, leisure education, leisure networking,
leisure resource development, physical education and
sports, scouting and camping, 4-H activities, music, danc-
ing, handicrafts, art, and homemaking.’’.
(e) CONFORMING PROVISIONS.—
549
(1) REPEALS.—The Rehabilitation Act of 1973
(29 U.S.C. 701 et seq.) is amended by striking the
following provisions:
(A) Subsection (c) of section 311.
(B) Section 316.
(C) Parts B and C of title VI.
(2) FUNDING.—Section 100(b)(1) of the Reha-
bilitation Act of 1973 (29 U.S.C. 720(b)(1)) is
amended by adding at the end the following: ‘‘(For
fiscal year 1996, in determining the amount to be
appropriated under the preceding sentence, the
amount appropriated for fiscal year 1995 under this
subsection is deemed to be the sum of the aggregate
amount appropriated for carrying out section 311(c),
section 316, and parts B and C of title VI and the
amount actually appropriated under this subsection
for fiscal year 1994.)’’.
(3) REDESIGNATIONS; CROSS-REFERENCES.—
The Rehabilitation Act of 1973 (29 U.S.C. 701 et
seq.) is amended—
(A) in section 101(a)(5)(A), by striking
‘‘including individuals served under part C of
title VI of this Act’’;
550
(B) in section 310, by striking ‘‘sections
311(d), 311(e), 312, and 316’’ and inserting
‘‘sections 311(c), 311(d), and 312’’;
(C) in section 311, by redesignating sub-
sections (d) through (f) as subsections (c)
through (e), respectively;
(D) in title VI, by redesignating part D as
part B; and
(E) in section 802(j)—
(i) in paragraph (1), by striking
‘‘Consistent with’’ and all that follows
through ‘‘the Commissioner may’’ and in-
serting ‘‘The Commissioner may’’; and
(ii) in paragraph (3)(B), by striking
clause (ii) and redesignating clauses (iii)
through (vi) as clauses (ii) through (v), re-
spectively.
PART 2—REPEAL OF PROGRAMS
SEC. 10041. HIGHER EDUCATION FOR STUDENTS FROM MI-
GRANT AND SEASONAL FARMWORKER FAMI-
LIES.
Subpart 5 of part A of title IV of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1070d–2) is repealed.
551
SEC. 10042. CERTAIN VETERANS PROGRAMS.
(a) DISABLED VETERANS OUTREACH PROGRAM AND
LOCAL VETERANS EMPLOYMENT REPRESENTATIVE PRO-
GRAM.—Sections 4103A, 4104, and 4104A of title 38,
United States Code, are repealed.
(b) 
HOMELESS
VETERANS
REINTEGRATION
PROJECT.—Section 738 of Public Law 100–77 (42 U.S.C.
11448) is repealed.
(c) 
CONFORMING
AMENDMENTS.—(1) 
Section
3117(a)(2) of title 38, United States Code, is amended—
(A) by striking subparagraph (B) and redesig-
nating subparagraph (C) as subparagraph (B); and
(B) by inserting ‘‘and’’ after the semicolon at
the end of subparagraph (A).
(2) Section 3672(d) of title 38, United States Code,
is amended by striking ‘‘and shall utilize’’ and all that fol-
lows through the end thereof and inserting in lieu thereof
a period.
(3) Section 4102A(b) of title 38, United States Code,
is amended—
(A) by inserting ‘‘and’’ at the end of paragraph
(4);
(B) by striking paragraphs (5) and (7) of sub-
section (b);
552
(C) by redesignating paragraph (6) as para-
graph (5) and in that paragraph by striking ‘‘; and’’
and inserting a period; and
(D) by striking subsection (c).
(4) Section 4106(a) of title 38, United States Code,
is amended—
(A) in the fifth sentence—
(i) by striking ‘‘in all of the States for the
purposes specified in paragraph (5) of section
4102A(b) of this title and’’; and
(ii) by striking ‘‘sections.’’ and inserting
‘‘section.’’; and
(B) in the sixth sentence, by striking ‘‘and of
the proposed numbers, by State, of disabled veter-
ans’ outreach program specialists appointed under
section 4103A of this title and local veterans’ em-
ployment representatives assigned under section
4104 of this title,’’.
(5) Section 4107(c) of title 38, United States Code,
is amended—
(A) by inserting ‘‘and’’ at the end of paragraph
(3);
(B) by striking paragraph (4);
(C) by redesignating paragraph (5) as para-
graph (4) and in that paragraph—
553
(i) by striking ‘‘including an evaluation of
the effectiveness of such programs during such
program year in meeting the requirements of
section 4102A(b) of this title,’’; and
(ii) by striking ‘‘(including’’ and all that
follows through ‘‘representatives)’’.
(6) Section 739(b) of Public Law 100–77 (42 U.S.C.
11449) is amended by striking ‘‘other than section 738
and for the program under section 738’’.
(7) The table of sections for chapter 41 of title 38,
United States Code, is amended by striking the items re-
lating to sections 4103A, 4104, and 4104A.
SEC. 10043. FOSTER GRANDPARENT AND SENIOR COMPAN-
ION 
PROGRAMS 
AND 
PROGRAMS 
UNDER
OLDER AMERICANS ACT OF 1965.
(a) FOSTER GRANDPARENT AND SENIOR COMPANION
PROGRAMS.—The Domestic Volunteer Service Act (42
U.S.C. 4950 et seq.) is amended—
(1) in section 200—
(A) in paragraph (1) by inserting ‘‘and’’ at
the end,
(B) in paragraph (2) by striking the semi-
colon at the end and inserting a period, and
(C) by striking paragraphs (3) and (4),
(2) in title II—
554
(A) by striking parts B and C, and
(B) in part D—
(i) by redesignating such part as part
B,
(ii) in sections 221 and 225 by strik-
ing ‘‘parts A, B, and C’’ each place it ap-
pears and inserting ‘‘part A’’, and
(iii) by redesignating part E as part
C,
(3) in section 416(f)(2) by striking ‘‘parts (B)
and’’ and inserting ‘‘part’’,
(4) in section 421—
(A) by striking paragraphs (9), (10), (17),
and (18), and
(B) in paragraph (14) by striking ‘‘(B),
(C), and (E)’’ and inserting ‘‘and (C)’’,
(5) in section 502—
(A) by striking subsections (b) and (c),
and
(B) in subsection (d)—
(i) by striking ‘‘part E’’ and inserting
‘‘part C’’, and
(ii) by redesignating such subsection
as subsection (c), and
555
(6) in section 503(d) by striking ‘‘part E’’ and
inserting ‘‘part C’’.
(b) AMENDMENT TO THE OLDER AMERICANS ACT OF
1965.—Title V of the Older Americans Act of 1965 (42
U.S.C. 3056–3056i) is repealed.
SEC. 10044. JOB TRAINING PARTNERSHIP ACT.
(a) IN GENERAL.—The Job Training Partnership
Act (29 U.S.C. 1501 et seq.), except sections 421 through
439 of such Act (29 U.S.C. 1691 et seq.) (relating to the
Job Corps), is hereby repealed.
(b) CONFORMING AMENDMENTS TO JOB CORPS.—
The Job Training Partnership Act (29 U.S.C. 1501 et
seq.) is amended—
(1) by redesignating sections 421 through 439
as sections 1 through 20, respectively;
(2) in section 1 (as redesignated), by striking
‘‘part’’ each place it appears and inserting ‘‘Act’’;
(3) in section 3(4) (as redesignated), by strik-
ing ‘‘sections 424 and 425’’ and inserting ‘‘sections
4 and 5’’;
(4) in section 4 (as redesignated)—
(A) in subsection (a), by striking ‘‘entities
administering programs under title II of this
Act,’’; and
556
(B) in subsection (b), by striking ‘‘part’’
and inserting ‘‘Act’’;
(5) in section 6 (as redesignated)—
(A) in subsection (a), by striking ‘‘section
428’’ and inserting ‘‘section 8’’; and
(B) by striking subsection (d);
(6) in section 7 (as redesignated)—
(A) by striking subsection (b); and
(B) by redesignating subsection (c) as sub-
section (b);
(7) in section 13 (as redesignated)—
(A) in subsection (a)(4), by striking ‘‘part’’
and inserting ‘‘Act’’;
(B) in subsection (c)(1), by striking ‘‘and
activities authorized under sections 452 and
453’’; and
(C) in subsection (e), by striking ‘‘section
431’’ and inserting ‘‘section 11’’;
(8) in section 14 (as redesignated)—
(A) in subsection (a)—
(i) in the matter preceding paragraph
(1), by striking ‘‘section 427’’ and insert-
ing ‘‘section 7’’; and
(ii) in paragraph 4(A), by striking
‘‘section 428’’ and inserting ‘‘section 8’’;
557
(B) in subsection (c)(3), by striking ‘‘sec-
tion 423’’ and inserting ‘‘section 3’’;
(C) in subsection (d), by striking ‘‘sections
424 and 425’’ and inserting ‘‘sections 4 and 5’’;
and
(D) in subsection (e), by striking ‘‘, pursu-
ant to section 452(d),’’;
(9) in section 16 (as redesignated), by striking
‘‘part’’ each place it appears and inserting ‘‘Act’’;
(10) in section 19 (as redesignated), by striking
‘‘part’’ each place it appears and inserting ‘‘Act’’;
(11) in section 20 (as redesignated), by striking
‘‘part’’ and inserting ‘‘Act’’; and
(12) by adding at the end the following new
section:
‘‘SEC. 21. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this Act—
‘‘(1) $1,098,000,000 for fiscal year 1997;
‘‘(2) $1,128,000,000 for fiscal year 1998;
‘‘(3) $1,158,000,000 for fiscal year 1999;
‘‘(4) $1,189,000,000 for fiscal year 2000; and
‘‘(5) $1,221,000,000 for fiscal year 2001.’’.
558
SEC. 10045. APPALACHIAN VOCATIONAL AND OTHER EDU-
CATION FACILITIES AND OPERATIONS PRO-
GRAM.
Section 211 of the Appalachian Regional Develop-
ment Act of 1965 (40 U.S.C. App. 211) is repealed.
SEC. 10046. TARGETED JOBS CREDIT.
(a) IN GENERAL.—Part IV of subchapter A of chap-
ter 1 of the Internal Revenue Code of 1986 is amended
by striking subpart F (relating to rules for computing tar-
geted jobs credit).
(b) TECHNICAL AMENDMENTS.—
(1) Subsection (b) of section 38 of such Code
is amended by striking paragraph (2) and by redes-
ignating the succeeding paragraphs accordingly.
(2) The table of subparts for part IV of sub-
chapter A of chapter 1 of such Code is amended by
striking the item relating to subpart F.
SEC. 10047. SERVICE MEMBERS OCCUPATIONAL CONVER-
SION AND TRAINING ACT OF 1992.
The Service Members Occupational Conversion and
Training Act of 1992 (10 U.S.C. 1143 note) is repealed.
SEC. 10048. ADULT EDUCATION PROGRAMS.
The Adult Education Act (20 U.S.C. 1201 et seq.)
is repealed.
559
SEC. 10049. VOCATIONAL EDUCATION PROGRAMS.
The Carl D. Perkins Vocational and Applied Tech-
nology Education Act (20 U.S.C. 2301 et seq.) is repealed.
SEC. 10050. NATIONAL LITERACY PROGRAMS.
The National Literacy Act of 1991 (20 U.S.C. 1211–
2) is repealed.
SEC. 10051. INDIAN EMPLOYMENT, TRAINING AND RELATED
SERVICES DEMONSTRATION PROGRAM.
The Indian Employment, Training and Related Serv-
ices Demonstration Act of 1992 (25 U.S.C. 3401 et seq.)
is repealed.
SEC. 10052. SPECIAL PROVISIONS RELATING TO INDIAN
TRIBES.
Subsection (i) of section 682 of the Social Security
Act (42 U.S.C. 682(i)) is repealed.
SEC. 10053. LITERACY CORPS.
Section 109 of the Domestic Volunteer Service Act
of 1973 (42 U.S.C. 4959) is repealed.
SEC. 10054. MISCELLANEOUS REPEALERS.
The following provisions of law are hereby repealed:
(1) The Act of June 6, 1933 (29 U.S.C. 49 et
seq.; commonly referred to as the ‘‘Wagner-Peyser
Act’’).
(2) Subtitle A of title VII of Stewart B. McKin-
ney Homeless Assistance Act (42 U.S.C. 11421 et
seq.).
560
(3) Subtitle C of title VII of Stewart B. McKin-
ney Homeless Assistance Act (42 U.S.C. 11441 et
seq.).
(4) Chapter 2 of title II of the Trade Act of
1974 (19 U.S.C. 2271 and following) and the items
relating to such chapter in the table of contents of
such Act.
(5) Section 402 of the Homeownership and Op-
portunity Through HOPE Act (42 U.S.C. 12870).
(6) Section 204 of the Immigration Reform and
Control Act of 1986 (8 U.S.C. 1255a note).
Subtitle B—Department Reform
CHAPTER 1—SHORT TITLE; FINDINGS;
AND PURPOSE
SEC. 10101. SHORT TITLE.
This subtitle may be cited as the ‘‘Back to Basics
Education Reform Act’’.
SEC. 10102. FINDINGS.
The Congress finds the following:
(1) Principles of federalism embodied in the
Constitution of the United States entrust authority
over issues of educational policy to the States and
the people and a Federal Department of Education
is inconsistent with such principles.
561
(2) Tradition and experience dictate that the
governance and management of schools in the
United States are best performed by parents, teach-
ers and communities.
(3) The intrusion by the Department of Edu-
cation into education policy has not benefited the
quality of education in this nation.
(4) The Department of Education has weak-
ened the ability of parents to make essential deci-
sions about their children’s education and has un-
dermined the capacity of communities to govern
their schools.
(5) In the 15 years of its existence, the Depart-
ment of Education has grown from 130 programs
and a budget of $14 billion to over 240 separately
authorized programs which cost almost $32 billion
annually. Meanwhile, education performance has
stagnated or deteriorated.
(6) Since 1980, the year the Federal role in
education was elevated to department status, the
graduation rate has dropped 1.3 percent. Only 71.2
percent of students who enroll in the ninth grade
now graduate from high school.
562
(7) The Department of Education has fostered
over-regulation, standardization, bureaucratization,
and litigation in United States education.
(8) The Department of Education expends
large amounts of money on its own maintenance and
overhead. As an organization, it is inefficient, ill-
managed, and wasteful.
(9) Recent tests reflect poor results in mathe-
matics and reading for American students compared
with students from other nations.
(10) Only through initiatives led by parents and
local communities with the power to act can the
United States elevate educational performance to-
ward an acceptable level.
(11) The Department of Education has been
hostile to many promising reform ideas.
SEC. 10103. PURPOSES.
The purposes of this subtitle are—
(1) to improve the quality of elementary and
secondary and higher education programs in the Na-
tion.
(2) to return the responsibility and authority
for education to parents, teachers, communities, stu-
dents, and States, and provide them greater control
over education spending.
563
(3) to ensure that the Federal Government does
not overregulate and interfere in the decisionmaking
of parents, local communities, teachers, and students
regarding education.
(4) to ensure that Americans are able to com-
pete in the global economy of the 21st century.
CHAPTER 2—ABOLITION OF DEPARTMENT
OF EDUCATION
Subchapter A—Transfer of Functions to Of-
fice in Department of Health and Human
Services
SEC. 10111. ABOLITION OF DEPARTMENT.
The Department of Education is abolished.
SEC. 10112. ESTABLISHMENT AND SUNSET OF OFFICE OF
ECONOMIC OPPORTUNITIES IN THE DEPART-
MENT OF HEALTH AND HUMAN SERVICES,
AND TRANSFER OF FUNCTIONS.
(a) ESTABLISHMENT OF OFFICE.—There is estab-
lished in the Department of Health and Human Services
the Office of Economic Opportunities.
(b) DIRECTOR.—
(1) IN GENERAL.—There shall be at the head
of the Office a Director for Economic Opportunities,
who shall be appointed by the President and con-
firmed with the advice and consent of the Senate.
564
The Office shall be administered under the super-
vision and direction of the Assistant Secretary for
the Administration for Families and Children. The
Director for Economic Opportunities shall receive
compensation at the rate prescribed for level V of
the Executive Schedule under section 5315 of title
5, United States Code.
(2) 
INITIAL
APPOINTMENT
OF
ADMINIS-
TRATOR.—Notwithstanding any other provision of
this subtitle or any other law, the President may, at
any time after the date of the enactment of this Act,
appoint an individual to serve as Director of Eco-
nomic Opportunities, as such position is established
under paragraph (1). An appointment under this
paragraph may not be construed to affect the posi-
tion of Secretary of Education or the authority of
the Secretary before the effective date specified in
section 10119(a).
(c) DUTIES.—The Director shall be responsible for—
(1) the administration of all functions of the
Office pursuant to section 10112 and other provi-
sions of law;
(2) the administration and wind-up of any out-
standing obligations of the Federal Government
565
under any programs terminated or repealed by this
subtitle; and
(3) taking such other actions as may be nec-
essary to wind up any outstanding affairs of the De-
partment of Education and the Office.
(d) TRANSFER OF FUNCTIONS.—Except as otherwise
provided in this subtitle, the Director shall perform all
functions that, immediately before the effective date of
this section under section 10119(a), were functions of the
Department of Education (or any office of the Depart-
ment) or were performed by the Secretary of Education
or any other officer or employee of the Department in the
capacity as such officer or employee.
(e) ABOLITION OF OFFICE.—The Office and all of
its functions are abolished effective upon the expiration
of the authorization for the programs under its jurisdic-
tion.
SEC. 10113. PRINCIPAL OFFICERS.
(a) DIRECTORS.—There shall be in the Office—
(1) an Assistant Director of Childhood School-
ing; and
(2) an Assistant Director of Advanced School-
ing.
566
(b) APPOINTMENT.—Each of the Assistant Directors
in the Office of Economic Opportunities shall be appointed
by the Secretary of Health and Human Services.
SEC. 10114. CONTINUATION OF SERVICE OF DEPARTMENT
OFFICER.
(a) CONTINUATION OF SERVICE OF SECRETARY.—
The individual serving as the Secretary of Education on
the effective date of this chapter may serve as Director
until the date an individual is appointed under this chap-
ter to the position of Director, or until the end of the 120-
day period provided for in section 3348 of title 5, United
States Code (relating to limitations on the period of time
a vacancy may be filled temporarily), whichever is earlier.
(b) COMPENSATION FOR CONTINUED SERVICE.—Any
individual who acts as the Director under subsection (a)
after the effective date of this chapter and before the first
appointment of a person to such position after such date
shall be compensated pursuant to section 10112(b)(1) for
so serving or acting.
SEC. 10115. REORGANIZATION.
The Secretary of Health and Human Services may
allocate or reallocate any function of the Office pursuant
to this subtitle among the officers of the Office, and may,
in accordance with the transfer of functions by this sub-
title, consolidate, alter, or discontinue in the Office any
567
organizational entities that were entities of the Depart-
ment of Education, as the Secretary of Health and
Human Services considers necessary or appropriate. Not-
withstanding any other provision of law, the Secretary of
Health and Human Services may not transfer any func-
tion or personnel of the Office to any agency outside of
the Office.
SEC. 10116. PLAN FOR WINDING UP AFFAIRS.
Not later than the effective date specified in section
10119, the President shall submit to the Congress a plan
for winding up the affairs of the Department of Education
in accordance with this subtitle.
SEC. 10117. GAO REPORT.
Not later than 180 days after the date of enactment
of this Act, the Comptroller General of the United States
shall submit to the Congress a report which shall include
recommendations for the most efficient means of achiev-
ing, in accordance with this subtitle—
(1) the complete abolition of the Department of
Education; and
(2) the termination or transfer or other con-
tinuation of functions of the Department of Edu-
cation.
568
SEC. 10118. CONFORMING AMENDMENTS.
(a) PRESIDENTIAL SUCCESSION.—Section 19(d)(1)
of title 3, United States Code, is amended by striking
‘‘Secretary of Education,’’.
(b) EXECUTIVE DEPARTMENTS.—Section 101 of title
5, United States Code, is amended by striking the follow-
ing item: ‘‘The Department of Education.’’.
(c) SECRETARY’S COMPENSATION.—Section 5312 of
title 5, United States Code, is amended by striking the
following item: ‘‘Secretary of Education.’’.
(d) COMPENSATION FOR POSITIONS AT LEVEL II.—
Section 5313 of title 5, United States Code, is amended
by striking the following item: ‘‘Deputy Secretary of Edu-
cation.’’.
(e) COMPENSATION FOR POSITIONS AT LEVEL III.—
Section 5314 of title 5, United States Code, is amended
by striking the following item: ‘‘Under Secretary of Edu-
cation.’’;
(f) COMPENSATION FOR POSITIONS AT LEVEL IV.—
Section 5315 of title 5, United States Code, is amended—
(1) by striking the following items: ‘‘Assistant
Secretaries of Education (10). ‘‘General Counsel,
Department of Education. ‘‘Inspector General, De-
partment of Education.’’;
(2) by striking the following item: ‘‘Chief Fi-
nancial Officer, Department of Education.’’; and
569
(3) by striking the following item: ‘‘Liaison for
Community and Junior Colleges, Department of
Education.’’.
(g) COMPENSATION FOR POSITIONS AT LEVEL V.—
Section 5316 of title 5, United States Code, is amended
by striking the following item: ‘‘Additional officers, De-
partment of Education (4).’’.
(h) INSPECTOR GENERAL ACT OF 1978.—The In-
spector General Act of 1978 (5 U.S.C. App.) is amend-
ed—
(1) in section 9(a)(1), by striking subparagraph
(D);
(2) in section 11(1), by striking ‘‘Education,’’;
and
(3) in section 11(2), by striking ‘‘Education,’’.
SEC. 10119. EFFECTIVE DATE.
(a) IN GENERAL.—Except as provided in subsection
(b), this chapter shall take effect on the date that is one
year after the date of enactment of this Act.
(b) INITIAL APPOINTMENT OF DIRECTOR.—The fol-
lowing provisions of this chapter shall take effect on the
date of enactment of this Act:
(1) Section 10116.
(2) Section 10117.
570
SEC. 10120. LIMITATION ON EXPENDITURES.
The amount expended by the United States each fis-
cal year for the administration of a function transferred
by this subtitle shall not exceed 70 percent of the total
amount expended for the administration of that function
during fiscal year 1995.
CHAPTER 3—EDUCATION PROGRAMS
Subchapter A—Elementary and Secondary
Education
PART I—ELEMENTARY AND SECONDARY
EDUCATION BLOCK GRANT PROGRAM
SEC. 10131. GOALS OF ELEMENTARY AND SECONDARY EDU-
CATION BLOCK GRANT PROGRAM.
The Director of the Office of Economic Opportunities
under the Administration for Children and Families in the
Department of Health and Human Services is authorized
to provide the Governor of each State that complies with
the requirements of section 10133 a grant in an amount
determined under section 10135.
SEC. 10132. PROGRAM AUTHORIZED.
Each State shall, subject to the requirements of this
subtitle and appropriations Acts, receive a grant under
this subtitle in each fiscal year to carry out the purposes
of this subtitle.
571
SEC. 10133. STATE ELIGIBILITY.
(a) IN GENERAL.—To be eligible to receive a grant
under this subtitle, a State shall submit an application to
the Director of Economic Opportunities which contains
the assurances required by this chapter. Such application
must be submitted at such time, in such form and manner
as the Director may reasonably require.
(b) ASSURANCES.—Such application shall include the
following assurances:
(1) IMPROVE EDUCATION.—The Governor shall
use funds received to improve education.
(2) DISTRIBUTION.—The Governor shall estab-
lish a procedure to distribute funds to local edu-
cational entities or to provide services to children at-
tending local educational entities.
(3) ASSURANCES
FROM
LOCAL
EDUCATIONAL
ENTITIES.—The Governor shall require a local edu-
cational entity that seeks funds under this chapter
to provide assurances that—
(A) funds will be used to improve edu-
cation;
(B) parents, members of the community,
and community leaders will be involved in deci-
sionmaking at the local level; and
572
(C) such entity that receives funds under
this chapter will comply with Federal civil
rights laws.
SEC. 10134. GENERAL STATE REQUIREMENTS.
(a) FUNDS FOR LOCAL USE.—
(1) IN GENERAL.—Not less than 98 percent of
the amount of funds received by a State under this
chapter shall be made available to local educational
entities.
(2) LOCAL
DISCRETION.—A local educational
entity that receives funds from a State will have the
discretion to spend funds received from the State to
develop programs that improve education.
(b) ADMINISTRATIVE COSTS.—Not more than 2 per-
cent of funds received under this chapter may be used by
a State or a local educational entity for administrative
purposes.
SEC. 10135. AMOUNT OF STATE ALLOTMENT.
(a) IN GENERAL.—Except as provided in subsections
(b) and (c), there shall be allotted to each State, which
for purposes of this section shall not include the terri-
tories, an amount which bears the same ratio to the
amount of funds appropriated for this chapter in any fis-
cal year as the population of children, aged 5 through 17
573
years of age, of such State bears to the population of such
children of all the States.
(b) STATE MINIMUM.—Of the total amount appro-
priated to carry out this subtitle in any fiscal year each
State shall receive not less than one quarter of one percent
of such amounts.
(c) SET ASIDE FOR TERRITORIES.—Of the amount
allotted under subsection (a), the Director shall allot not
more than one quarter of one percent among Puerto Rico,
the Commonwealth of the Northern Mariana Islands,
American Samoa, Guam, and the Virgin Islands.
SEC. 10136. LOCAL FISCAL ACCOUNTABILITY.
A local educational entity that receives funds from
a State under this subtitle in any fiscal year shall be re-
quired to make reasonably available—
(1) a proposed budget regarding how such
funds shall be used; and
(2) an accounting of the actual use of such
funds at the end of such entity’s fiscal year.
SEC. 10137. PARTICIPATION OF CHILDREN ENROLLED IN
PRIVATE SCHOOLS.
(a) SECULAR, NEUTRAL, NONIDEOLOGICAL.—Any
educational services or other benefits, including materials
and equipment, provided to children enrolled in private
schools shall be secular, neutral, and nonideological.
574
(b) BYPASS.—
(1) IN GENERAL.—If under law a State is pro-
hibited from providing for the participation under
this chapter of eligible children enrolled in private el-
ementary and secondary schools, the Office of Eco-
nomic Opportunities, at the request of the Governor,
shall arrange for services for such children to the ex-
tent consistent with the number of eligible children
identified under section 10135 in a local educational
agency who are enrolled in private elementary and
secondary schools.
(2) EQUITABLE
SERVICES.—Services provided
under this section shall be equitable in comparison
to services and other benefits provided for public
school children participating in programs under this
chapter.
(3) REDUCTION.—The amount of funds appro-
priated to the State pursuant to section 10135 shall
be reduced by the amount necessary to carry out
this section.
SEC. 10138. DEFINITIONS.
Except as otherwise provided, for the purposes of this
subtitle, the following terms have the following meanings:
(1) DIRECTOR.—The term ‘‘Director’’ means
the Director of Economic Opportunities under the
575
Administration for Children and Families in the De-
partment of Health and Human Services.
(2) LOCAL EDUCATIONAL ENTITY.—The term
‘‘local educational entity’’ means a local educational
agency or public or a private elementary or second-
ary school.
(2) STATE.—The term ‘‘State’’ means any of
the several States, the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands,
American Samoa, Guam, and the Commonwealth of
the Northern Mariana Islands.
SEC. 10139. AUTHORIZATION OF APPROPRIATIONS.
There 
are 
authorized 
to 
be 
appropriated
$9,000,000,000 for each of the fiscal years 1998 through
2000 to carry out the programs authorized under this sub-
title.
PART II—OTHER ELEMENTARY AND SECONDARY
EDUCATION PROGRAMS
SEC. 10141. AMENDMENTS AND REPEALS OF CERTAIN EDU-
CATION PROVISIONS.
(a) ELEMENTARY AND SECONDARY EDUCATION ACT
OF 1965.—
(1) IN GENERAL.—Titles I, II, III, IV, V, VI,
VII, X, XI, XII, XIII, XIV, and parts B and C of
576
title IX of the Elementary and Secondary Education
Act of 1965 are repealed.
(2) IMPACT AID.—(A) Section 8003 of the Ele-
mentary and Secondary Education Act of 1965 (20
U.S.C. 7703) is amended by striking subsection (e)
of such section.
(B) Except as provided under subparagraph
(A), the programs provided under title VIII of the
Elementary and Secondary Education Act of 1965
shall be administered by the Department of Defense
through the Assistant Secretary for Force Manage-
ment Policy.
(3) INDIAN EDUCATION.—Part A of title IX of
the Elementary and Secondary Education Act of
1965 shall be administered by the Department of
the Interior through the Assistant Secretary for In-
dian Affairs.
(b) GOALS 2000: EDUCATE AMERICA ACT.—Goals
2000: Educate America Act is repealed.
(c) SCHOOL-TO-WORK OPPORTUNITIES ACT.—The
School-to-Work Opportunities Act is repealed.
(d) GENERAL EDUCATION PROVISIONS ACT.—Parts
D and F, sections 422, 424, 425, 427, 428, 429, 433,
439, and 443, and paragraph (3) of section 431(a) of the
General Education Provisions Act are repealed.
577
(e) NATIONAL
EDUCATION
STATISTICS
ACT
OF
1994.—The National Education Statistics Act of 1994 is
repealed.
(f) EFFECTIVE DATE.—The repeals and transfers
made by subsections (a), (b), (c), and (d) shall take effect
on the date that is one year after the date of enactment
of this Act.
Subchapter II—Conforming Amendments to
the Individuals with Disabilities Edu-
cation Act
SEC. 10142. AMENDMENTS TO PROVISIONS REFERENCING
SECRETARY OF EDUCATION AND DEPART-
MENT OF EDUCATION.
(a) TRANSFER OF AUTHORITY FROM SECRETARY OF
EDUCATION TO SECRETARY OF HEALTH AND HUMAN
SERVICES.—The Individuals with Disabilities Education
Act (20 U.S.C. 1400 et seq.) is amended in sections
602(a)(14), 611(f), and 684(b)(5) by striking ‘‘Secretary
of Education’’ each place such term appears and inserting
‘‘Secretary of Health and Human Services’’.
(b) TRANSFER OF AUTHORITY FROM DEPARTMENT
OF EDUCATION
TO DEPARTMENT
OF HEALTH
AND
HUMAN SERVICES.—The Individuals with Disabilities
Education Act (20 U.S.C. 1400 et seq.) is amended in
sections 610 and 621(a)(3) by striking ‘‘Department of
578
Education’’ each place such term appears and inserting
‘‘Department of Health and Human Services’’.
SEC. 10143. AMENDMENTS TO DEFINITIONS.
(a) DEFINITION OF EXCESS COSTS.—Subparagraph
(A) of section 602(a)(21) of the Individuals with Disabil-
ities Education Act (20 U.S.C. 1401(a)(21)(A)) is amend-
ed to read as follows:
‘‘(A) amounts received—
‘‘(i) under this part, or
‘‘(ii) under subchapter I of chapter 3
of the Back to Basics Education Act,
and’’.
(b) DEFINITION OF NATIVE LANGUAGE.—Paragraph
(22) of section 602(a) of the Individuals with Disabilities
Education Act (20 U.S.C. 1401(a)(22)) is amended to
read as follows:
‘‘(22) The term ‘native language’, when used
with reference to an individual of limited-English
proficiency, means the language normally used by
the individual, or in the case of an individual aged
3 through 21, the language normally used by the
parents of the individual.’’.
579
SEC. 10144. TRANSFER OF ADMINISTERING AUTHORITY TO
OFFICE OF ECONOMIC OPPORTUNITIES.
The Individuals with Disabilities Education Act (20
U.S.C. 1400 et seq.) is amended—
(1) by striking section 603 and inserting the
following:
‘‘OFFICE OF ECONOMIC OPPORTUNITIES
‘‘SEC. 603. The Secretary of Health and Human
Services, acting through the Director for Economic Oppor-
tunities, shall administer and carry out this subtitle. The
Office of Economic Opportunities shall be the principal
agency in the Department of Health and Human Services
for administering and carrying out programs and activities
concerning the education and training of individuals with
disabilities.’’;
(2) in section 621(f)(1), by striking ‘‘Office of
Special Education Programs’’ and inserting ‘‘Office
of Economic Opportunities’’; and
(3) in section 685(b)(1), by striking ‘‘Office of
Special Education Programs;’’ and inserting ‘‘Office
of Economic Opportunities;’’.
SEC. 10145. OUTREACH SERVICES FOR CERTAIN INSTITU-
TIONS OF HIGHER EDUCATION.
Subclause (II) of section 610(j)(2)(C)(ii) of the Indi-
viduals with Disabilities Education Act (20 U.S.C.
1409(j)(2)(C)(ii)(II)) is amended to read as follows:
580
‘‘(II) institutions of higher education which
have an enrollment with includes a substantial
percentage of needy students (as determined by
the Director) and the average educational and
general expenditures of which are low, per full-
time equivalent undergraduate student, in com-
parison with the average educational and gen-
eral expenditures per full-time equivalent under-
graduate student of institutions that offer simi-
lar instruction;’’.
Subchapter III—Higher Education Programs
PART I—ELIMINATION AND REDUCTION OF
PROGRAMS
SEC. 10151. REPEAL OF HIGHER EDUCATION LAWS.
(a) IN GENERAL.—Except as provided in subsection
(b) and (c), the Higher Education Act of 1965 (20 U.S.C.
1001) is repealed effective one year after the date of the
enactment of this Act.
(b) EXCEPTIONS.—Subsection (a) shall not apply to
the following:
(1) The first section, containing the short title
of such Act.
(2) Subpart 1 of part A of title IV, relating to
Pell Grants.
581
(3) Part B of such title, relating to the Federal
Family Education Loan Program.
(4) Part E of such title, relating to Perkins
Loans.
(5) Parts F, G, and H of such title, relating to
needs analysis, general provisions, and the program
integrity triad.
(6) Section 1201, relating to definitions.
(c) CONTINUING AUTHORITY TO COLLECT LOANS.—
Subsection (a) shall not affect the authority of the United
States to collect any loan made under any provision re-
pealed by such subsection.
(d) PERKINS LOANS.—Section 461(b) of the Higher
Education Act of 1965 is amended to read as follows:
‘‘(b) CONTRIBUTIONS DISCONTINUED.—No funds
are authorized to be appropriated for fiscal year 1996 or
any succeeding year for the purpose of making contribu-
tions to student loan funds established under this part.’’.
(e) LIMITATION ON FUNDS FOR HOWARD UNIVER-
SITY.—Section 8 of the Act of March 2, 1867 is amend-
ed—
(1) by inserting ‘‘(a)’’ after ‘‘SEC. 8.’’; and
(2) by adding at the end the following new sub-
section:
582
‘‘(b) Notwithstanding subsection (a) and any provi-
sion of the Howard University Endowment Act, the total
amount that is authorized to be appropriated pursuant to
this section and such Endowment Act shall not exceed the
total amount appropriated pursuant to this section and
such Endowment Act for fiscal year 1995, and of such
total amount—
‘‘(1) not less than 30 percent of the amount ap-
propriated for fiscal year 1998 shall be appropriated
for purposes of such Endowment Act;
‘‘(2) not less than 60 percent of the amount ap-
propriated for fiscal year 1999 shall be appropriated
for purposes of such Endowment Act; and
‘‘(3) not less than 100 percent of the amount
appropriated for fiscal year 2000 shall be appro-
priated for purposes of such Endowment Act.
Notwithstanding subsection (a) and any provision of the
Howard University Endowment Act, no funds are author-
ized to be appropriated pursuant to this section or such
Endowment Act for fiscal year 2001 or any succeeding
fiscal year.’’.
SEC. 10152. AMENDMENT TO THE FEDERAL CREDIT RE-
FORM ACT.
(a) AMENDMENT.—Section 502(5)(B) of the Con-
gressional Budget Act is amended to read as follows:
583
‘‘(B) The cost of a direct loan shall be the
net present value, at the time when the direct
loan is disbursed, of the following cash flows for
the estimated life of the loan—
‘‘(i) loan disbursements;
‘‘(ii) repayments of principal;
‘‘(iii) payments of interest and other
payments by or to the Government over
the life of the loan after adjusting for esti-
mated defaults, prepayments, fees, pen-
alties and other recoveries; and
‘‘(iv) in the case of a direct loan made
pursuant to a program for which the Office
of Management and Budget estimates that
for the coming fiscal year (or for any prior
fiscal year) loan commitments will equal or
exceed $5,000,000,000, direct expenses, in-
cluding but not limited to the following: ex-
penses arising from activities related to
credit extension; loan origination; loan
servicing; technical assistance; training;
program promotion; payments to contrac-
tors, other government entities, and pro-
gram participants; collection of delinquent
584
loans; and write-off and close-out of
loans.’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to all fiscal years beginning on
or after October 1, 1995, and to statutory changes made
on or after the date of enactment of this Act.
SEC. 10153. SALE OF FDSL LOAN PORTFOLIOS.
The Higher Education Act of 1965 Act (20 U.S.C.
1087h) is amended by inserting after section 458 the fol-
lowing new section:
‘‘SEC. 459. SALE OF FEDERAL DIRECT STUDENT LOAN
PORTFOLIOS.
‘‘(a) AUCTION SALES OF LOAN PORTFOLIOS.—The
Secretary shall conduct auctions to sell the outstanding
portfolio of loans made pursuant to this part. Such auc-
tions shall consist of sales of portfolios representative of
the overall characteristics of the direct loans held by the
Secretary. Auctions shall be held for portfolios of not less
than $40,000,000 of loans per sale. The first sale of loans
shall take place not later than 120 days after the date
of enactment of this section, and shall not include Federal
guarantees or reinsurance against the contingency of bor-
rower default, death, or disability.
‘‘(b) LOAN
TERMS
SUBJECT
TO
PROMISSORY
NOTE.—Such loans shall be subject to the terms and con-
585
ditions as specified in the borrower promissory note, and
shall not be subject to further Federal regulations pursu-
ant to this subtitle.
‘‘(c) DISPOSITION OF PROCEEDS.—All proceeds re-
ceived as a result of the auctions conducted pursuant to
this part shall be returned to the United States Depart-
ment of the Treasury after deduction of expenses incurred
by the Department of Education in connection with the
auctions required pursuant to this section.’’.
SEC. 10154. STUDENT LOAN PROGRAM; STATEMENT OF
POLICY.
The Congress finds that the Federal student loan
programs should be reviewed to evaluate whether reforms
need to be made to the programs based on the principles
of risk sharing, market-based orientation, privatization,
and deregulation.
SEC. 10155. ELIMINATION OF IN-SCHOOL INTEREST SUB-
SIDIES.
(a) GUARANTEED LOANS.—Section 428(a) of the
Higher Education Act of 1965 (20 U.S.C. 1078(a)) is
amended by adding at the end the following new para-
graph:
‘‘(8) TERMINATION OF INTEREST SUBSIDIES.—
Notwithstanding paragraph (3), no portion of the in-
terest shall be paid by the Secretary under this sub-
586
section on any loan made on or after October 1,
1995. Interest on the unpaid principal amount of
any such loan—
‘‘(A) which accrues prior to the beginning
of the repayment period of the loan, or
‘‘(B) which accrues during a period in
which principal need not be paid (whether or
not such principal is in fact paid) by reason of
a provision described in subsection (b)(1)(M) of
this section or in section 427(a)(2)(C),
shall, at the option of the borrower—
‘‘(i) be paid monthly or quarterly, or
‘‘(ii) be added by the lender to the prin-
cipal amount of the loan at the commencement
of the repayment period.’’.
PART II—HIGHER EDUCATION BLOCK GRANT
SEC. 10161. PURPOSE.
It is the purpose of this part to authorize block grants
to States to assist institutions of higher education in order
to improve access to higher education and to improve the
quality of educational programs.
SEC. 10162. DISTRIBUTION OF FUNDS.
(a) IN GENERAL.—From the funds appropriated
under section 10165, the Director shall allocate to the
Governor of each State that has submitted the assurances
587
required by section 10163 an amount that bears the same
ratio to the amount so appropriated as the number of stu-
dents enrolled in institutions of higher education in such
State bears to the total number of students so enrolled
in all the States.
(b) EXCEPTION FOR SMALL STATES.—Notwithstand-
ing subsection (a), no State shall be allocated less than
0.25 percent of the funds appropriated under section
10165.
(c) DETERMINATION OF NUMBER OF STUDENTS.—
The Director shall determine the number of students in
each State on the basis of a certification from the Gov-
ernor of each State.
SEC. 10163. STATE ASSURANCES.
Any State seeking to obtain an allocation under sec-
tion 10162 shall submit to the Director an application
that contains the following assurances:
(1) The Governor of such State will establish a
procedure for the distribution of funds to participat-
ing institutions of higher education.
(2) The Governor will use the funds obtained
under this part only for the improvement of higher
education.
(3) The Governor will require each participating
institution to submit assurances to the State that
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they will use funds obtained under this part only for
the improvement of higher education.
(4) The Governor will require each participating
institution to submit assurances that the institution
will comply with Federal civil rights laws.
SEC. 10164. USE OF FUNDS.
(a) IN GENERAL.—Any funds obtained by a partici-
pating institution under this part may, subject to the pro-
visions of this part, be used for any existing or new pro-
gram.
(b) LIMITATION ON ADMINISTRATIVE COSTS.—Not
more than 2 percent of the funds allocated to any State
or institution under this chapter may be used for adminis-
trative costs.
SEC. 10165. PUBLIC DISCLOSURE.
Institutions receiving funding under this chapter
shall make reasonably available to the community, par-
ents, and students a listing of the uses of such funds.
SEC. 10166. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out
this subtitle $2,000,000,000 for each of fiscal years 1998
through 2000.
SEC. 10167. DEFINITIONS.
As used in this subtitle—
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(1) unless otherwise provided, the terms used in
this part that are defined in section 1201 of the
Higher Education Act of 1965 have the meanings
provided in such section;
(2) the term ‘‘State’’ means the several States
and the District of Columbia; and
(3) the term ‘‘Director’’ means the Director of
Economic Opportunities in the Department of
Health and Human Services.
Subchapter IV—Miscellaneous Provisions
SEC. 10171. CONSTRUCTION.
Notwithstanding the provisions of this subtitle, noth-
ing in this subtitle shall be construed to affect continued
funding for Galludet University, the American Printing
House for the Blind, or the National Institute for the Deaf
at fiscal year 1995 levels through fiscal year 2000.
SEC. 10172. REGULATIONS.
For purposes of this chapter, the Secretary of Health
and Human Services shall consult with Congress before
issuing regulations regarding the grants provided under
part I of subchapter A and part II of subchapter C of
this chapter and shall only issue regulations that are nec-
essary for the timely distribution of funds to the States.
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SEC. 10173. CONSOLIDATED APPLICATION.
The Secretary of Health and Human Services shall
provide for a consolidated application for grants provided
under part I of subchapter A and part II of subchapter
C of this chapter. Consolidated applications also shall be
permitted at the local level.
SEC. 10174. APPROPRIATIONS.
The amount that is authorized to be appropriated for
programs under part II of subchapter A, subchapter B,
and part I of subchapter C shall not exceed the amount
appropriated for such programs for fiscal year 1995. Such
programs shall be authorized through fiscal year 2000.
SEC. 10175. FEDERAL CIVIL RIGHTS.
(a) IN GENERAL.—
(1) APPLICABILITY.—Nothing in this chapter
shall be construed to affect the applicability of civil
rights laws relating to any program established,
transferred, or consolidated under this subtitle.
(2) DUTIES.—The Secretary of Health and
Human Services shall be responsible for carrying out
any other civil rights functions performed by the
Secretary of Education as such functions were per-
formed on the day before the date of the enactment
of this Act.
(b) HEALTH AND HUMAN SERVICES.—The Director
of the Office of Civil Rights of the Department of Health
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and Human Services shall submit a report annually to the
Secretary of Health and Human Services, the President,
and the appropriate committees of Congress summarizing
the compliance and enforcement activities of the Office of
Civil Rights as such activities pertain to the Office of Eco-
nomic Opportunities. The report shall identify significant
civil rights or compliance problems for which the Office
of Civil Rights has made a recommendation for corrective
action and which, in the judgment of the Director of the
Office of Civil Rights, adequate progress is not being
made.
(c) DEPARTMENT OF JUSTICE.—The Assistant At-
torney General in charge of the Civil Rights Division of
the Department of Justice shall submit annually a report
to the Attorney General, the President, and the appro-
priate committees of Congress summarizing the activities
of the Civil Rights Division as such activities pertain to
the grantees of programs authorized by this subtitle.
CHAPTER 4—GENERAL PROVISIONS
SEC. 10181. REFERENCES.
Any reference in any other Federal law, Executive
order, rule, regulation, or delegation of authority, or any
document of or pertaining to an office from which a func-
tion is transferred by this subtitle—
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(1) to the Secretary of Education or an officer
of the Department of Education, is deemed to refer
to the head of the department or office to which
such function is transferred; or
(2) to the Department of Education is deemed
to refer to the department or office to which such
function is transferred.
SEC. 10182. EXERCISE OF AUTHORITIES.
Except as otherwise provided by law, a Federal offi-
cial to whom a function is transferred by this subtitle may,
for purposes of performing the function, exercise all au-
thorities under any other provision of law that were avail-
able with respect to the performance of that function to
the official responsible for the performance of the function
immediately before the transfer of the function under this
subtitle.
SEC. 10183. SAVINGS PROVISIONS.
(a) LEGAL DOCUMENTS.—All orders, determinations,
rules, regulations, permits, grants, loans, contracts, agree-
ments, certificates, licenses, and privileges—
(1) that have been issued, made, granted, or al-
lowed to become effective by the President, the Sec-
retary of Education, any officer or employee of any
office transferred by this subtitle, or any other Gov-
ernment official, or by a court of competent jurisdic-
593
tion, in the performance of any function that is
transferred by this subtitle, and
(2) that are in effect on the date of such trans-
fer (or become effective after such date pursuant to
their terms as in effect on the date of such transfer),
shall continue in effect according to their terms until
modified, terminated, superseded, set aside, or revoked in
accordance with law by the President, any other author-
ized official, a court of competent jurisdiction, or operation
of law.
(b) PROCEEDINGS.—This subtitle shall not affect any
proceedings or any application for any benefits, service,
license, permit, certificate, or financial assistance pending
on the effective date of this chapter with respect to a func-
tion transferred by this subtitle, but such proceedings and
applications shall be continued. Orders shall be issued in
such proceedings, appeals shall be taken therefrom, and
payments shall be made pursuant to such orders, as if this
subtitle had not been enacted, and orders issued in any
such proceeding shall continue in effect until modified, ter-
minated, superseded, or revoked by a duly authorized offi-
cial, by a court of competent jurisdiction, or by operation
of law. Nothing in this subsection shall be considered to
prohibit the discontinuance or modification of any such
proceeding under the same terms and conditions and to
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the same extent that such proceeding could have been dis-
continued or modified if this subtitle had not been enacted.
(c) SUITS.—This subtitle shall not affect suits com-
menced before the effective date of this chapter and in
all such suits, proceeding shall be had, appeals taken, and
judgments rendered in the same manner and with the
same effect as if this subtitle had not been enacted.
(d) NONABATEMENT OF ACTIONS.—No suit, action,
or other proceeding commenced by or against the Depart-
ment of Education or the Secretary of Education, or by
or against any individual in the official capacity of such
individual as an officer or employee of an office trans-
ferred by this subtitle, shall abate by reason of the enact-
ment of this Act.
(e) CONTINUANCE OF SUITS.—If, before the effective
date of this chapter, any officer of the Department of
Education in the official capacity of such officer is party
to a suit with respect to a function of the officer, and
under this subtitle such function is transferred to any
other officer or office, then such suit shall be continued
with the other officer or the head of such other office, as
applicable, substituted or added as a party.
SEC. 10184. TRANSFER OF ASSETS.
Except as otherwise provided in this subtitle, so much
of the personnel, property, records, and unexpended bal-