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(B) the substitution of the new index will
result in an interest rate substantially similar to
the rate in effect at the time the original index
became unavailable.
SEC. 2244. REFERENCES IN FEDERAL LAW TO DIRECTOR OF
THE OFFICE OF THRIFT SUPERVISION.
Effective January 1, 1998, any reference in any Fed-
eral law to the Director of the Office of Thrift Supervision
or the Office of Thrift Supervision shall be deemed to be
a reference to the appropriate Federal banking agency (as
defined in section 3(q) of the Federal Deposit Insurance
Act).
SEC. 2245. RECONFIGURATION OF BOARD OF DIRECTORS
OF FDIC AS A RESULT OF REMOVAL OF DI-
RECTOR OF THE OFFICE OF THRIFT SUPER-
VISION.
(a) IN GENERAL.—Section 2(a)(1) of the Federal
Deposit Insurance Act (12 U.S.C. 1812(a)(1)) is amended
to read as follows:
‘‘(1) IN
GENERAL.—The management of the
Corporation shall be vested in a Board of Directors
consisting of 3 members—
‘‘(A) 1 of whom shall be the Comptroller of
the Currency; and
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‘‘(B) 2 of whom shall be appointed by the
President, by and with the advice and consent
of the Senate, from among individuals who are
citizens of the United States.’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 2(a)(2) of the Federal Deposit In-
surance Act (12 U.S.C. 1812(a)(2)) is amended—
(A) by striking ‘‘February 28, 1993’’ and
inserting ‘‘January 1, 1998’’; and
(B) by striking ‘‘3’’ and inserting ‘‘2’’.
(2) Section 2(d)(2) of the Federal Deposit In-
surance Act (12 U.S.C. 1812(d)(2)) is amended—
(A) by striking ‘‘or the office of Director
of the Office of Thrift Supervision’’;
(B) by striking ‘‘or such Director’’;
(C) by striking ‘‘or the Acting Director of
the Office of Thrift Supervision, as the case
may be’’; and
(D) by striking ‘‘or Director’’.
(c) EFFECTIVE DATE.—The amendments made by
subsections (a) and (b) shall take effect on January 1,
1998.
(d) DESIGNATION OF ABOLISHED POSITION.—Unless
there is a vacancy in the position of an appointed member
of the Board of Directors as of January 1, 1998, the
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President, consistent with the requirements of section
2(a)(2) of the Federal Deposit Insurance Act, shall des-
ignate which of the 3 positions of appointed member of
such Board of Directors shall be abolished pursuant to
the amendment made by subsection (a).
Subtitle C—Community
Reinvestment Act Amendments
SEC. 2301. EXPRESSION OF CONGRESSIONAL INTENT.
Subsection (b) of section 802 of the Community Rein-
vestment Act of 1977 (12 U.S.C. 2901) is amended to
read as follows:
‘‘(b) It is the purpose of this title to require each ap-
propriate Federal financial supervisory agency to use its
authority, when examining financial institutions, to en-
courage such institutions to help meet the credit needs of
the local communities in which they are chartered consist-
ent with the safe and sound operation of such institutions.
When examining financial institutions, a supervisory agen-
cy shall not impose additional burden, recordkeeping, or
reporting upon such institutions.’’.
SEC. 2302. COMMUNITY REINVESTMENT ACT EXEMPTION.
The Community Reinvestment Act of 1977 (12
U.S.C. 2901 et seq.) is amended by adding at the end
the following new section:
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‘‘SEC. 809. TREATMENT OF SMALL FINANCIAL INSTITU-
TIONS.
‘‘(a) IN GENERAL.—In lieu of being evaluated under
section 806A and receiving a written evaluation under sec-
tion 807, an eligible regulated financial institution shall
make a notice, signed by the president, available to the
public that—
‘‘(1) lists the type of credit and services that
the institution provides to help meet the credit needs
of the local community; and
‘‘(2) states that the institution helps meet the
credit needs of the local communities in which the
institution operates, including low- and moderate-in-
come neighborhoods.
‘‘(b) ELIGIBLE
REGULATED
FINANCIAL
INSTITU-
TIONS.—
‘‘(1) IN GENERAL.—A regulated financial insti-
tution shall be eligible for purposes of subsection (a)
if the institution and any bank holding company
which controls such institution have aggregate assets
of not more than $100,000,000.
‘‘(2) 
ANNUAL
ADJUSTMENT.—The 
dollar
amount in paragraph (1) shall be adjusted annually
after December 31, 1994, by the annual percentage
increase in the Consumer Price Index for Urban
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Wage Earners and Clerical Workers published by
the Bureau of Labor Statistics.
‘‘(c) EXEMPTION FROM OTHER REQUIREMENTS.—A
regulated financial institution which has complied with the
notice requirements of subsection (a) shall not be subject
to section 804 and any regulations prescribed under sec-
tion 806.’’.
SEC. 2303. SELF-CERTIFICATION OF CRA COMPLIANCE.
Section 804 of the Community Reinvestment Act of
1977 (12 U.S.C. 2903) is amended by adding at the end
the following new subsection (c):
‘‘(c) SELF-CERTIFICATION OF CRA COMPLIANCE.—
‘‘(1) CERTIFICATION.—In lieu of being evalu-
ated under section 806A and receiving a written
evaluation under section 807, a qualifying financial
institution may elect to self-certify to the appro-
priate Federal financial supervisory agency that such
institution is in compliance with the goals of this
title.
‘‘(2) QUALIFYING INSTITUTION.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the term ‘qualifying institution’
means a financial institution which—
‘‘(i) has not more than $250 million
in assets;
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‘‘(ii) has not been found to have en-
gaged in a pattern or practice of illegal
discrimination under the Fair Housing Act
or the Equal Credit Opportunity Act for
the preceding 5-year calendar period; and
‘‘(iii) received rating under section
807(b)(2) of ‘satisfactory’ or ‘outstanding’
in the most recent evaluation of such insti-
tution under this title.
‘‘(B) ANNUAL
ADJUSTMENT.—The dollar
amount in subparagraph (A) shall be adjusted
annually after December 31, 1994, by the an-
nual percentage increase in the Consumer Price
Index for Urban Wage Earners and Clerical
Workers published by the Bureau of Labor
Statistics.
‘‘(3) PUBLIC NOTICE.—
‘‘(A) IN GENERAL.—A qualifying institu-
tion shall maintain in every branch a public no-
tice stating that—
‘‘(i) the institution has self-certified
that the institution is satisfactorily helping
to meet the credit needs of its community;
‘‘(ii) the institution maintains—
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‘‘(I) at the main office of such in-
stitution, a public file which contains
a copy of the self-certification to the
appropriate Federal financial super-
visory agency; and
‘‘(II) a map delineating the com-
munity served by the institution;
‘‘(iii) a list of the types of credit and
services that the institution provides to the
community served by the institution;
‘‘(iv) such other information that the
institution believes demonstrates the insti-
tution’s record of helping to meet the cred-
it needs of its community; and
‘‘(v) every public comment or letter to
the institution (and any response by the
institution) received within the previous 2-
year period about the record of the institu-
tion of helping to meet the credit needs of
its community.
‘‘(B) PUBLIC FILE.—A qualifying institu-
tion shall maintain a public file containing the
contents described in this paragraph at the in-
stitution’s main office.
‘‘(4) RATING.—
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‘‘(A) IN GENERAL.—A qualifying institu-
tion shall be deemed to have a rating of a ‘sat-
isfactory record of meeting community credit
needs’ for the purposes of this section and sec-
tion 806A(c).
‘‘(B) PUBLICATION.—Each Federal finan-
cial supervisory agency shall publish in the Fed-
eral Register once each month a list of institu-
tions that have self-certified during the previous
month.
‘‘(C) PUBLICATION CONSTITUTES DISCLO-
SURE.—Publication of the name of the institu-
tion in the Federal Register as having self-cer-
tified shall constitute disclosure of the rating of
the institution to the public for purposes of sec-
tions 806A and 807.
‘‘(5) REGULATORY REVIEW.—
‘‘(A) ASSESSMENT.—During each exam-
ination for safety and soundness, a qualifying
institution’s supervisory agency shall, as part of
the agency’s review of the institution’s loans,
assess whether the institution’s basis for its
self-certification is reasonable based on the pub-
lic notice and the information contained in the
public file pursuant to paragraph (3).
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‘‘(B) 
EXAMINATION
IF
SELF-CERTIFI-
CATION IS NOT REASONABLE.—If the agency
determines that the institution’s basis for the
institution’s self-certification is not reasonable,
the agency shall schedule an examination of the
institution for the purpose of assessing the in-
stitution’s record of helping to meet the credit
needs of its community.
‘‘(C) 
REVOCATION
OF
SELF-CERTIFI-
CATION.—If an assessment pursuant to sub-
paragraph (B) results in a less than ‘satisfac-
tory’ rating, the agency shall revoke the institu-
tion’s self-certification and substitute a written
evaluation as provided under section 807.
‘‘(D) PERIOD OF INELIGIBILITY FOR SELF-
CERTIFICATION.—An institution whose self-cer-
tification has been revoked may not self-certify
pursuant to this subsection during the 5 years
succeeding the year in which the self-certifi-
cation is revoked.
‘‘(E) SUBSEQUENT
ELIGIBILITY.—After
the end of the period of ineligibility described in
subparagraph (D), an institution which meets
the requirements for self-certification may elect
to self-certify.
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‘‘(6) PROHIBITION
ON
ADDITIONAL
REQUIRE-
MENTS.—No appropriate Federal financial super-
visory agency may impose any additional require-
ments, whether by regulation or otherwise, relating
to the self-certification procedure under this sub-
section.’’.
SEC. 2304. COMMUNITY INPUT AND CONCLUSIVE RATING.
(a) CONFORMING AMENDMENT.—Section 804(a) of
the Community Reinvestment Act of 1977 (12 U.S.C.
2903) is amended by inserting ‘‘conducted in accordance
with section 806A,’’ after ‘‘financial institution,’’.
(b) COMMUNITY INPUT AND CONCLUSIVE RATING.—
The Community Reinvestment Act of 1977 (12 U.S.C.
2901 et seq.) is amended by inserting after section 806
the following new section:
‘‘SEC. 806A. COMMUNITY INPUT AND CONCLUSIVE RATING.
‘‘(a) PUBLICATION OF EXAM SCHEDULE AND OPPOR-
TUNITY FOR COMMENT.—
‘‘(1) PUBLICATION OF NOTICE.—Each appro-
priate Federal financial supervisory agency shall—
‘‘(A) publish in the Federal Register, 30
days before the beginning of a calendar quarter,
a listing of institutions scheduled for evaluation
for compliance with this title during such cal-
endar quarter; and
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‘‘(B) provide opportunity for written com-
ments from the community on the performance,
under this title, of each institution scheduled
for evaluation.
‘‘(2) COMMENT
PERIOD.—Written comments
may not be submitted to an appropriate Federal fi-
nancial supervisory agency pursuant to paragraph
(1) after the end of the 30-day period beginning on
the first day of the calendar quarter.
‘‘(3) COPY OF COMMENTS.—The agency shall
provide a copy of such comments to the institution.
‘‘(b) EVALUATION.—The appropriate Federal finan-
cial supervisory agency shall—
‘‘(1) evaluate the institution in accordance with
the standards contained in section 804; and
‘‘(2) prepare and publish a written evaluation of
the institution as required under section 807.
‘‘(c) RECONSIDERATION OF RATING.—
‘‘(1) REQUEST FOR RECONSIDERATION.—A re-
consideration of an institution’s rating referred to in
section 807(b)(1)(C), may be requested within 30
days of the rating’s disclosure to the public.
‘‘(2) PROCEDURES FOR REQUEST.—Any such
request shall be made in writing and filed with the
appropriate Federal financial supervisory agency,
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and may be filed by the institution or a member of
the community.
‘‘(3) BASIS FOR REQUEST.—Any request for re-
consideration under this subsection shall be based on
significant issues of a substantive nature which are
relevant to the delineated community of the institu-
tion and, in the case of a request by a member of
the community, shall be limited to issues previously
raised in comments submitted pursuant to sub-
section (a).
‘‘(4) COMPLETION
OF
REVIEW.—The appro-
priate Federal financial supervisory agency shall
complete any requested reconsideration within 30
days of the filing of the request.
‘‘(d) CONCLUSIVE RATING.—
‘‘(1) IN GENERAL.—An institution’s rating shall
become conclusive on the later of—
‘‘(A) 30 days after the rating is disclosed
to the public; or
‘‘(B) the completion of any requested re-
consideration by the Federal financial super-
visory agency.
‘‘(2) RATING CONCLUSIVE OF MEETING COMMU-
NITY CREDIT NEEDS.—An institution’s rating shall
be the conclusive assessment of the institution’s
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record of meeting the credit needs of its community
for purposes of section 804 until the institution’s
next rating, developed pursuant to an examination,
becomes conclusive.
‘‘(3) SAFE HARBOR.—Institutions which have
received a ‘satisfactory’ or ‘outstanding’ rating shall
be deemed to have met the purposes of section 804.
‘‘(4) RULE OF CONSTRUCTION.—Notwithstand-
ing any other provision of law, no provision of this
section shall be construed as granting a cause of ac-
tion to any person.’’.
(c) OVERALL EVALUATION OF INSTITUTION.—Para-
graph (2) of section 804(a) of the Community Reinvest-
ment Act of 1977 (12 U.S.C. 2903(a)) is amended to read
as follows:
‘‘(2) take such record into account in the over-
all evaluation of the condition of the institution by
the appropriate Federal financial supervisory agen-
cy.’’.
SEC. 2305. SPECIAL PURPOSE FINANCIAL INSTITUTIONS.
(a) IN GENERAL.—Section 804 of the Community
Reinvestment Act of 1977 (12 U.S.C. 2903) is amended
by inserting after subsection (c) (as added by section 2303
of this subtitle) the following new subsection:
‘‘(d) SPECIAL PURPOSE INSTITUTIONS.—
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‘‘(1) IN GENERAL.—In conducting assessments
pursuant to this section at any special purpose insti-
tution, the appropriate Federal financial supervisory
agency shall—
‘‘(A) consider the nature of business such
institution is involved in; and
‘‘(B) assess and take into account the
record of the institution commensurate with the
amount of deposits (as defined in section 3(1)
of the Federal Deposit Insurance Act) received
by such institution.
‘‘(2) STANDARDS.—Each appropriate Federal
financial supervisory agency shall develop standards
under which special purpose institutions may be
deemed to have complied with the requirements of
this title which are consistent with the specific na-
ture of such businesses.’’.
(b) SPECIAL PURPOSE INSTITUTION DEFINED.—
Section 803 of the Community Reinvestment Act of 1977
(12 U.S.C. 2902) is amended by adding at the end the
following new paragraph:
‘‘(5) SPECIAL
PURPOSE
INSTITUTIONS.—The
term ‘special purpose institution’ means a financial
institution that does not generally accept deposits
from the public in amounts of less than $100,000,
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such as wholesale, credit card, and trust institu-
tions.’’.
SEC. 2306. INCREASED INCENTIVES FOR LENDING TO LOW-
AND MODERATE-INCOME COMMUNITIES.
(a) IN GENERAL.—Section 804(b) of the Community
Reinvestment Act of 1977 (12 U.S.C. 2903(b)) is amend-
ed to read as follows:
‘‘(b) POSITIVE CONSIDERATION OF CERTAIN LOANS
AND INVESTMENTS.—In assessing and taking into ac-
count the records of a regulated financial institution under
subsection (a), the appropriate Federal financial super-
visory agency shall—
‘‘(1) consider as a positive factor, consistent
with the safe and sound operation of the institution,
the institution’s investment in or loan to—
‘‘(A) any minority depository institution or
women’s depository institution (as such terms
are defined in section 808(b)) or any low-in-
come credit union;
‘‘(B) any joint venture or other entity or
project which promotes the public welfare in
any distressed community (as defined by such
agency) whether or not the distressed commu-
nity is located in the local community in which
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the regulated financial institution is chartered
to do business; and
‘‘(C) targeted low- and moderate-income
communities, including real property loans to
such communities; and
‘‘(2) consider equally with other factors capital
investment, loan participation, and other ventures
undertaken by the institution in cooperation with—
‘‘(A) minority- and women-owned financial
institutions and low-income credit unions to the
extent that these activities help meet the credit
needs of the local communities in which such
institutions are chartered; and
‘‘(B) community development corporations
in extending credit and other financial services
principally to low- and moderate-income persons
and small businesses to the extent that such
community development corporations help meet
the credit needs of the local communities served
by the majority-owned institution.’’.
(b) AMENDMENT TO DEFINITIONS.—Section 803 of
the Community Reinvestment Act of 1977 (12 U.S.C.
2902) is amended by inserting after paragraph (5) (as
added by section 2305(b) of this subtitle) the following
new paragraph:
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‘‘(6) STATE
BANK
SUPERVISOR.—The term
‘State bank supervisor’ has the same meaning as in
section 3(r) of the Federal Deposit Insurance Act.’’.
(c) TECHNICAL CORRECTION.—The 1st of the 2
paragraphs designated as paragraph (2) of section 803 of
the Community Reinvestment Act of 1977 (12 U.S.C.
2902) is amended to read as follows:
‘‘(D) the Director of the Office of Thrift
Supervision with respect to any savings associa-
tion (the deposits of which are insured by the
Federal Deposit Insurance Corporation) and
any savings and loan holding company (other
than a company which is a bank holding com-
pany);’’.
SEC. 2307. PROHIBITION ON ADDITIONAL REPORTING
UNDER CRA.
Section 806 of the Community Reinvestment Act of
1977 (12 U.S.C. 2905) is amended to read as follows:
‘‘SEC. 806. REGULATIONS.
‘‘(a) IN GENERAL.—
‘‘(1) 
PUBLICATION
REQUIREMENT.—Regula-
tions to carry out the purposes of this title shall be
published by each appropriate Federal financial su-
pervisory agency.
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‘‘(2) PROHIBITION
ON
ADDITIONAL
RECORD-
KEEPING.—Regulations prescribed and policy state-
ments, commentary, examiner guidance, or other su-
pervisory material issued under this title shall not
impose any additional recordkeeping on a financial
institution.
‘‘(3) PROHIBITION
ON
LOAN
DATA
COLLEC-
TION.—No loan data may be required to be collected
and reported by a financial institution and no such
data may be made public by any Federal financial
supervisory agency under this title.’’.
SEC. 2308. TECHNICAL AMENDMENT.
Section 807(b)(1)(B) of the Community Reinvest-
ment Act (12 U.S.C. 2906) is amended by striking ‘‘The
information’’ and inserting ‘‘In the case of a regulated fi-
nancial institution that maintains domestic branches in 2
or more States, the information’’.
SEC. 2309. DUPLICATIVE REPORTING.
Section 10(g) of the Federal Home Loan Bank Act
(12 U.S.C. 1430(g)) is amended by adding at the end the
following new paragraph (3):
‘‘(3) SPECIAL RULE.—This subsection shall not
apply to members receiving a grade of ‘outstanding’
or ‘satisfactory’ under section 807 of the Community
Reinvestment Act of 1977.’’.
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SEC. 2310. CRA CONGRESSIONAL OVERSIGHT.
(a) SENSE OF CONGRESS RELATING TO AGGRESSIVE
OVERSIGHT.—It is the sense of the Congress that the ap-
propriate committees of the House of Representatives and
the Senate should exercise aggressive oversight of the
adoption and implementation of any regulation by any ap-
propriate Federal financial supervisory agency under the
Community Reinvestment Act of 1977 after the date of
the enactment of this Act.
(b) AGENCY REPORTS REQUIRED.—
(1) IN GENERAL.—Each appropriate Federal fi-
nancial supervisory agency shall submit a report to
the Congress by December 31, 1996, and by Decem-
ber 31, 1997, on the implementation of all regula-
tions prescribed by such agency under the Commu-
nity Reinvestment Act of 1977 after the date of the
enactment of this Act.
(2) REQUIREMENTS
RELATING
TO
PREPARA-
TION OF REPORTS.—In preparing each report re-
quired under paragraph (1), each appropriate Fed-
eral financial supervisory agency shall—
(A) solicit and include comments from reg-
ulated financial institutions with respect to the
regulations which are the subject of the report;
and
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(B) include quantifiable measures of the
cost savings achieved under the regulations
which are the subject of the report and the ef-
fectiveness of such regulations in achieving the
purposes of the Community Reinvestment Act
of 1977.
(3) DEFINITIONS.—For purposes of this sec-
tion, the terms ‘‘appropriate Federal financial super-
visory agency’’ and ‘‘regulated financial institution’’
have the same meanings as in section 803 of the
Community Reinvestment Act of 1977.
SEC. 2311. CONSULTATION AMONG EXAMINERS.
Section 10 of the Federal Deposit Insurance Act (12
U.S.C. 1820) is amended by adding at the end the follow-
ing new subsection:
‘‘(j) CONSULTATION AMONG EXAMINERS.—
‘‘(1) IN GENERAL.—Each appropriate Federal
banking agency shall take such action as may be
necessary to ensure that examiners employed by the
agency—
‘‘(A) consult on examination activities with
respect to any depository institution; and
‘‘(B) achieve an agreement and resolve any
inconsistencies on the recommendations to be
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given to such institution as a consequence of
any examinations.
‘‘(2) 
EXAMINER-IN-CHARGE.—Each 
agency
shall consider appointing an examiner-in-charge with
respect to a depository institution to ensure con-
sultation on examination activities among all of the
agency’s examiners involved in examinations of such
institution.’’.
SEC. 2312. LIMITATION ON REGULATIONS.
Section 806 of the Community Reinvestment Act of
1977 (12 U.S.C. 2905) (as amended by section 2307) is
amended by adding at the end the following new sub-
sections:
‘‘(b) LIMITATION ON REGULATIONS.—No regulation
may be prescribed under this title by any Federal agency
which would—
‘‘(1) require any regulated financial institution
to—
‘‘(A) make any loan or enter into any
other agreement on the basis of any discrimina-
tory criteria prohibited under any law of the
United States; or
‘‘(B) make any loan to, or enter into any
other agreement with, any uncreditworthy per-
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son that would jeopardize the safety and sound-
ness of such institution; or
‘‘(2) prevent or hinder in any way a financial
institution’s full responsibility to provide credit to all
segments of the community.
‘‘(c) ENCOURAGE LOANS TO CREDITWORTHY BOR-
ROWERS.—Regulations prescribed under this title shall en-
courage regulated financial institutions to make loans and
extend credit to all creditworthy persons, consistent with
safety and soundness.’’.
Subtitle D—Phase-Down of
Oversight Board
SEC. 2401. TERMINATION OF AUTHORITY OF OVERSIGHT
BOARD TO EMPLOY STAFF.
(a) IN GENERAL.—Section 21A(a) of the Federal
Home Loan Bank Act (12 U.S.C. 1441a(a)) is amended
by adding at the end the following new paragraph:
‘‘(17) PHASED-DOWN
OPERATION
OF
OVER-
SIGHT BOARD FOLLOWING TERMINATION OF COR-
PORATION.—
‘‘(A) TERMINATION OF AUTHORITY TO EM-
PLOY STAFF.—Except as provided in subpara-
graph (B), the authority of the Thrift Depositor
Protection Oversight Board under paragraph
(5) to establish officer and employee positions,
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to compensate officers and employees of the
Board, to provide other benefits for officers and
employees of the Board, and to utilize staff of
any other department or agency shall terminate
as of December 31, 1995.
‘‘(B) LIMITED AUTHORITY FOR DETAILING
STAFF FROM OTHER AGENCIES.—If the Thrift
Depositor Protection Oversight Board deter-
mines that any staff is required to carry out the
functions of the Board after the authority to
employ staff terminates under subparagraph
(A), the Board shall—
‘‘(i) utilize employees of any other de-
partment or agency in accordance with
paragraph (5)(F) to carry out the staff
functions which have been determined to
be necessary; and
‘‘(i) submit a report to the Congress
containing—
‘‘(I) the number of staff positions
which the Board has determined are
necessary to carry out the Board’s
functions after the termination of the
Corporation;
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‘‘(II) a justification for such de-
termination; and
‘‘(III) an estimate of the length
of the period for which such staff po-
sitions will be required.’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Subparagraphs (B), (C), (D), and (E) of
section 21A(a)(5) of the Federal Home Loan Bank
Act (12 U.S.C. 1441a(a)(5)) are each amended by
inserting ‘‘subject to paragraph (17)(A),’’ after the
closing parenthesis of the subparagraph designation.
(2) Section 21A(a)(5)(F) of the Federal Home
Loan Bank Act (12 U.S.C. 1441a(a)(5)(F)) is
amended by inserting ‘‘subject to subparagraphs (A)
and (B) of paragraph (17) and’’ after ‘‘(F)’’.
TITLE III—COMMITTEE ON
COMMERCE
Subtitle A—Communications
CHAPTER 1—SPECTRUM AUCTIONS
SEC. 3001. SPECTRUM AUCTIONS.
(a) EXTENSION AND EXPANSION OF AUCTION AU-
THORITY.—
(1) AMENDMENTS.—Section 309(j) of the Com-
munications Act of 1934 (47 U.S.C. 309(j)) is
amended—
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(A) by striking paragraphs (1) and (2) and
inserting in lieu thereof the following:
‘‘(1) GENERAL AUTHORITY.—If, consistent with
the obligations described in paragraph (6)(E), mutu-
ally exclusive applications are accepted for any ini-
tial license or construction permit which will involve
an exclusive use of the electromagnetic spectrum,
then the Commission shall grant such license or per-
mit to a qualified applicant through a system of
competitive bidding that meets the requirements of
this subsection.
‘‘(2) EXEMPTIONS.—The competitive bidding
authority granted by this subsection shall not apply
to licenses or construction permits issued by the
Commission—
‘‘(A) that, as the result of the Commission
carrying out the obligations described in para-
graph (6)(E), are not mutually exclusive;
‘‘(B) for public safety radio services, in-
cluding non-Government uses that protect the
safety of life, health, and property and that are
not made commercially available to the public;
or
‘‘(C) for initial licenses or construction
permits for new terrestrial digital television
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services assigned by the Commission to existing
terrestrial broadcast licensees to replace their
current television licenses.’’; and
(B) by striking ‘‘1998’’ in paragraph (11)
and inserting ‘‘2002’’.
(2) CONFORMING AMENDMENT.—Subsection (i)
of section 309 of such Act is repealed.
(3) EFFECTIVE DATE.—The amendment made
by paragraph (1)(A) shall not apply with respect to
any license or permit for which the Federal Commu-
nications Commission has accepted mutually exclu-
sive applications on or before the date of enactment
of this Act.
(b) COMMISSION OBLIGATION TO MAKE ADDITIONAL
SPECTRUM AVAILABLE BY AUCTION.—
(1) IN
GENERAL.—The Federal Communica-
tions Commission shall complete all actions nec-
essary to permit the assignment, by September 30,
2002, by competitive bidding pursuant to section
309(j) of the Communications Act of 1934 (47
U.S.C. 309(j)) of licenses for the use of bands of
frequencies that—
(A) individually span not less than 25
megahertz, unless a combination of smaller
bands can, notwithstanding the provisions of
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paragraph (7) of such section, reasonably be ex-
pected to produce greater receipts;
(B) in the aggregate span not less than
100 megahertz;
(C) are located below 3 gigahertz; and
(D) have not, as of the date of enactment
of this Act—
(i) been designated by Commission
regulation for assignment pursuant to such
section; or
(ii) been identified by the Secretary of
Commerce pursuant to section 113 of the
National Telecommunications and Infor-
mation Administration Organization Act.
The Commission shall conduct the competitive
bidding for not less than one-half of such aggre-
gate spectrum by September 30, 2000.
(2) CRITERIA FOR REASSIGNMENT.—In making
available bands of frequencies for competitive bid-
ding pursuant to paragraph (1), the Commission
shall—
(A) seek to promote the most efficient use
of the spectrum;
(B) take into account the cost to incum-
bent licensees of relocating existing uses to
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other bands of frequencies or other means of
communication;
(C) take into account the needs of public
safety radio services; and
(D) comply with the requirements of inter-
national agreements concerning spectrum allo-
cations.
(3) NOTIFICATION TO NTIA.—The Commission
shall notify the Secretary of Commerce if—
(A) the Commission is not able to provide
for the effective relocation of incumbent licens-
ees to bands of frequencies that are available to
the Commission for assignment; and
(B) the Commission has identified bands
of frequencies that are—
(i) suitable for the relocation of such
licensees; and
(ii) allocated for Federal Government
use, but that could be reallocated pursuant
to part B of the National Telecommuni-
cations and Information Administration
Organization Act (as amended by this
Act).
(c) IDENTIFICATION AND REALLOCATION OF FRE-
QUENCIES.—The National Telecommunications and Infor-
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mation Administration Organization Act (47 U.S.C. 901
et seq.) is amended—
(1) in section 113, by adding at the end the fol-
lowing new subsection:
‘‘(f) ADDITIONAL REALLOCATION REPORT.—If the
Secretary receives a notice from the Commission pursuant
to section 3001(b)(3) of the Seven-Year Balanced Budget
Reconciliation Act of 1995, the Secretary shall prepare
and submit to the President and the Congress a report
recommending for reallocation for use other than by Fed-
eral Government stations under section 305 of the 1934
Act (47 U.S.C. 305), bands of frequencies that are suit-
able for the uses identified in the Commission’s notice.’’;
(2) in section 114(a)(1), by striking ‘‘(a) or
(d)(1)’’ and inserting ‘‘(a), (d)(1), or (f)’’.
(d) COMPLETION OF C-BLOCK PCS AUCTION.—The
Federal Communications Commission shall commence the
Broadband Personal Communications Services C-Block
auction described in the Commission’s Sixth Report and
Order in DP Docket 93–253 (FCC 93–510, released July
18, 1995) not later than December 4, 1995. The Commis-
sion’s competitive bidding rules governing such auction,
as set forth in such Sixth Report and Order, are hereby
ratified and adopted as a matter of Federal law.
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(e) MODIFICATION OF AUCTION POLICY TO PRE-
SERVE AUCTION VALUE OF SPECTRUM.—The voluntary
negotiation period for relocating fixed microwave licensees
to frequency bands other than those allocated for licensed
emerging technology services (including licensed personal
communications services), established by the Commis-
sion’s Third Report and Order in ET Docket No. 92–9,
shall expire one year after the date of acceptance by the
Commission of applications for such licensed emerging
technology services. The mandatory negotiation period for
relocating fixed microwave licensees to frequency bands
other than those allocated for licensed emerging tech-
nology services (including licensed personal communica-
tions services), established in such Third Report and
Order, shall expire two years after the date of acceptance
by the Commission of applications for such licensed
emerging technology services.
(f) 
IDENTIFICATION
AND
REALLOCATION
OF
AUCTIONABLE
FREQUENCIES.—The 
National 
Tele-
communications and Information Administration Organi-
zation Act (47 U.S.C. 901 et seq.) is amended—
(1) in section 113(b)—
(A) by striking the heading of paragraph
(1) and inserting ‘‘INITIAL REALLOCATION RE-
PORT’’;
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(B) by inserting ‘‘in the first report re-
quired by subsection (a)’’ after ‘‘recommend for
reallocation’’ in paragraph (1);
(C) by inserting ‘‘or (3)’’ after ‘‘paragraph
(1)’’ each place it appears in paragraph (2);
and
(D) by inserting after paragraph (2) the
following new paragraph:
‘‘(3) SECOND REALLOCATION REPORT.—In ac-
cordance with the provisions of this section, the Sec-
retary shall recommend for reallocation in the sec-
ond report required by subsection (a), for use other
than by Federal Government stations under section
305 of the 1934 Act (47 U.S.C. 305), a single fre-
quency band that spans not less than an additional
20 megahertz, that is located below 3 gigahertz, and
that meets the criteria specified in paragraphs (1)
through (5) of subsection (a).’’; and
(2) in section 115—
(A) in subsection (b), by striking ‘‘the re-
port required by section 113(a)’’ and inserting
‘‘the initial reallocation report required by sec-
tion 113(a)’’; and
(B) by adding at the end the following new
subsection:
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‘‘(c) ALLOCATION
AND
ASSIGNMENT
OF
FRE-
QUENCIES IDENTIFIED IN THE SECOND REALLOCATION
REPORT.—With respect to the frequencies made available
for reallocation pursuant to section 113(b)(3), the Com-
mission shall, not later than 1 year after receipt of the
second reallocation report required by such section, pre-
pare, submit to the President and the Congress, and im-
plement, a plan for the allocation and assignment under
the 1934 Act of such frequencies. Such plan shall propose
the immediate allocation and assignment of all such fre-
quencies in accordance with section 309(j).’’.
CHAPTER 2—FEDERAL COMMUNICATIONS
COMMISSION AUTHORIZATION
SEC. 3011. SHORT TITLE.
This chapter may be cited as the ‘‘Federal Commu-
nications Commission Authorization Act of 1995’’.
SEC. 3012. EXTENSION OF AUTHORITY.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section
6 of the Communications Act of 1934 (47 U.S.C. 156)
is amended to read as follows:
‘‘SEC. 6. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated for the ad-
ministration of this Act by the Commission $186,000,000
for fiscal year 1996, together with such sums as may be
necessary for increases resulting from adjustments in sal-
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ary, pay, retirement, other employee benefits required by
law, and other nondiscretionary costs, for fiscal year 1996.
Of the sum appropriated in each fiscal year under this
section, a portion, in an amount determined under sections
8(b) and 9(b), shall be derived from fees authorized by
sections 8 and 9.’’.
(b) TRAVEL AND REIMBURSEMENT PROGRAM.—Sec-
tion 4(g)(2) of the Communications Act of 1934 (47
U.S.C. 154(g)(2)) is amended to read as follows:
‘‘(2) The Commission shall submit to the appropriate
committees of Congress, and publish in the Federal Reg-
ister, semiannual reports specifying the reimbursements
which the Commission has accepted under section 1353
of title 31, United States Code.’’.
(c) COMMUNICATIONS SUPPORT FROM OLDER AMER-
ICANS.—Section 6(a) of the Federal Communications
Commission Authorization Act of 1988 (47 U.S.C. 154
note) is amended by striking ‘‘fiscal years 1992 and 1993’’
and inserting ‘‘fiscal year 1996’’.
SEC. 3013. APPLICATION FEES.
(a) ADJUSTMENT
OF APPLICATION FEE SCHED-
ULE.—Section 8(b) of the Communications Act of 1934
(47 U.S.C. 158(b)) is amended to read as follows:
‘‘(b)(1) For fiscal year 1996 and each fiscal year
thereafter, the Commission shall, by regulation, modify
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the application fees by proportionate increases or de-
creases so as to result in estimated total collections for
the fiscal year equal to—
‘‘(A) $40,000,000; plus
‘‘(B) an additional amount, specified in an ap-
propriation Act for the Commission for that fiscal
year to be collected and credited to such appropria-
tion, not to exceed the amount by which the nec-
essary expenses for the costs described in paragraph
(5) exceeds $40,000,000.
‘‘(2) In making adjustments pursuant to this para-
graph the Commission may round such fees to the nearest
$5.00 in the case of fees under $100, or to the nearest
$20 in the case of fees of $100 or more. The Commission
shall transmit to the Congress notification of any adjust-
ment made pursuant to this paragraph immediately upon
the adoption of such adjustment.
‘‘(3) The Commission is authorized to continue to col-
lect fees at the prior year’s rate until the effective date
of fee adjustments or amendments made pursuant to para-
graphs (1) and (4).
‘‘(4) The Commission shall, by regulation, add, de-
lete, or reclassify services, categories, applications, or
other filings subject to application fees to reflect additions,
deletions, or changes in the nature of its services or au-
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thorization of service processes as a consequence of Com-
mission rulemaking proceedings or changes in law.
‘‘(5) Any modified fees established under paragraph
(4) shall be derived by determining the full-time equivalent
number of employees performing application activities, ad-
justed to take into account other expenses that are reason-
ably related to the cost of processing the application or
filing, including all executive and legal costs incurred by
the Commission in the discharge of these functions, and
other factors that the Commission determines are nec-
essary in the public interest. The Commission shall—
‘‘(A) transmit to the Congress notification of
any proposed modification made pursuant to this
paragraph immediately upon adoption of such pro-
posal; and
‘‘(B) transmit to the Congress notification of
any modification made pursuant to this paragraph
immediately upon adoption of such modification.
‘‘(6) Increases or decreases in application fees made
pursuant to this subsection shall not be subject to judicial
review.’’.
(b) TREATMENT OF ADDITIONAL COLLECTIONS.—
Section 8(e) of such Act is amended to read as follows:
‘‘(e) Of the moneys received from fees authorized
under this section—
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‘‘(1) $40,000,000 shall be deposited in the gen-
eral fund of the Treasury to reimburse the United
States for amounts appropriated for use by the
Commission in carrying out its functions under this
Act; and
‘‘(2) the remainder shall be deposited as an off-
setting collection in, and credited to, the account
providing appropriations to carry out the functions
of the Commission.’’.
(c) SCHEDULE OF APPLICATION FEES FOR PCS.—
The schedule of application fees in section 8(g) of such
Act is amended by adding, at the end of the portion under
the heading ‘‘COMMON CARRIER SERVICES’’, the following
new item:
‘‘23. Personal communications services
‘‘a. Initial or new application .......................................................
230.00
‘‘b. Amendment to pending application .......................................
35.00
‘‘c. Application for assignment or transfer of control .................
230.00
‘‘d. Application for renewal of license ..........................................
35.00
‘‘e. Request for special temporary authority ...............................
200.00
‘‘f. Notification of completion of construction .............................
35.00
‘‘g. Request to combine service areas ..........................................
50.00’’.
(d) VANITY CALL SIGNS.—
(1) LIFETIME LICENSE FEES.—
(A) AMENDMENT.—The schedule of appli-
cation fees in section 8(g) of such Act is further
amended by adding, at the end of the portion
under the heading ‘‘PRIVATE RADIO SERVICES’’,
the following new item:
‘‘11. Amateur vanity call signs ........................................ 150.00’’.
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(B) TREATMENT
OF
RECEIPTS.—Moneys
received from fees established under the amend-
ment made by this subsection shall be deposited
as an offsetting collection in, and credited to,
the account providing appropriations to carry
out the functions of the Commission.
(2) TERMINATION
OF
ANNUAL
REGULATORY
FEES.—The schedule of regulatory fees in section
9(g) of such Act (47 U.S.C. 159(g)) is amended by
striking the following item from the fees applicable
to the Private Radio Bureau:
‘‘Amateur vanity call-signs .........................................................
7’’.
SEC. 3014. REGULATORY FEES.
(a) EXECUTIVE AND LEGAL COSTS.—Section 9(a)(1)
of the Communications Act of 1934 (47 U.S.C. 159(a)(1))
is amended by inserting before the period at the end the
following: ‘‘, and all executive and legal costs incurred by
the Commission in the discharge of these functions’’.
(b) ESTABLISHMENT
AND ADJUSTMENT.—Section
9(b) of such Act is amended—
(1) in paragraph (4)(B), by striking ‘‘90 days’’
and inserting ‘‘45 days’’; and
(2) by adding at the end the following new
paragraph:
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‘‘(5) EFFECTIVE DATE OF ADJUSTMENTS.—The
Commission is authorized to continue to collect fees
at the prior year’s rate until the effective date of fee
adjustments or amendments made pursuant to para-
graph (2) or (3).’’.
(c) REGULATORY FEES FOR SATELLITE TV OPER-
ATIONS.—The schedule of regulatory fees in section 9(g)
of such Act is amended, in the fees applicable to the Mass
Media Bureau, by inserting after each of the items per-
taining to construction permits in the fees applicable to
VHF commercial and UHF commercial TV the following
new item:
‘‘Terrestrial television satellite operations .................................................
500’’.
(d) GOVERNMENTAL ENTITIES USE FOR COMMON
CARRIER PURPOSES.—Section 9(h) of such Act is amend-
ed by adding at the end the following new sentence: ‘‘The
exceptions provided by this subsection for governmental
entities shall not be applicable to any services that are pro-
vided on a commercial basis in competition with another
carrier.’’.
(e) INFORMATION REQUIRED IN CONNECTION WITH
ADJUSTMENT OF REGULATORY FEES.—Title I of such
Act is amended—
(1) in section 9, by striking subsection (i); and
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(2) by inserting after section 9 the following
new section:
‘‘SEC. 10. ACCOUNTING SYSTEM AND ADJUSTMENT INFOR-
MATION.
‘‘(a) ACCOUNTING SYSTEM REQUIRED.—The Com-
mission shall develop accounting systems for the purposes
of making the adjustments authorized by sections 8 and
9. The Commission shall annually prepare and submit to
the Congress an analysis of such systems and shall annu-
ally afford interested persons the opportunity to submit
comments concerning the allocation of the costs of per-
forming the functions described in section 8(a)(5) and
9(a)(1) in making such adjustments in the schedules re-
quired by sections 8 and 9.
‘‘(b) INFORMATION REQUIRED IN CONNECTION WITH
ADJUSTMENT
OF
APPLICATION
AND
REGULATORY
FEES.—
‘‘(1) SCHEDULE OF REQUESTED AMOUNTS.—
No later than May 1 of each calendar year, the
Commission shall prepare and transmit to the Com-
mittees of Congress responsible for the Commis-
sion’s authorization and appropriations a detailed
schedule of the amounts requested by the Presi-
dent’s budget to be appropriated for the ensuing fis-
cal year for the activities described in sections
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8(a)(5) and 9(a)(1), allocated by bureaus, divisions,
and offices of the Commission.
‘‘(2) EXPLANATORY STATEMENT.—If the Com-
mission anticipates increases in the application fees
or regulatory fees applicable to any applicant, li-
censee, or unit subject to payment of fees, the Com-
mission shall submit to the Congress by May 1 of
such calendar year a statement explaining the rela-
tionship between any such increases and either (A)
increases in the amounts requested to be appro-
priated for Commission activities in connection with
such applicants, licensees, or units subject to pay-
ment of fees, or (B) additional activities to be per-
formed with respect to such applicants, licensees, or
units.
‘‘(3) DEFINITION.—For purposes of this sub-
section, the term ‘amount requested by the Presi-
dent’s budget’ shall include any adjustments to such
requests that are made by May 1 of such calendar
year. If any such adjustment is made after May 1,
the Commission shall provide such Committees with
updated schedules and statements containing the in-
formation required by this subsection within 10 days
after the date of any such adjustment.’’.
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SEC. 3015. INSPECTION OF SHIP RADIO STATIONS.
(a) AUTHORITY TO DESIGNATE ENTITIES TO IN-
SPECT.—Section 4(f)(3) of the Communications Act of
1934 (47 U.S.C. 154(f)(3)) is amended by inserting before
the period at the end the following: ‘‘: And provided fur-
ther, That, in the alternative, an entity designated by the
Commission may make the inspections referred to in this
paragraph’’.
(b) CONDUCT OF INSPECTIONS.—Section 362(b) of
such Act (47 U.S.C. 362(b)) is amended to read as
follows:
‘‘(b) Every ship of the United States that is subject
to this part shall have the equipment and apparatus pre-
scribed therein inspected at least once each year by the
Commission or an entity designated by the Commission.
If, after such inspection, the Commission is satisfied that
all relevant provisions of this Act and the station license
have been complied with, the fact shall be certified to on
the station license by the Commission. The Commission
shall make such additional inspections at frequent inter-
vals as the Commission determines may be necessary to
ensure compliance with the requirements of this Act. The
Commission may, upon a finding that the public interest
could be served thereby—
‘‘(1) waive the annual inspection required under
this section for a period of up to 90 days for the sole
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purpose of enabling a vessel to complete its voyage
and proceed to a port in the United States where an
inspection can be held; or
‘‘(2) waive the annual inspection required under
this section for a vessel that is in compliance with
the radio provisions of the Safety Convention and
that is operating solely in waters beyond the juris-
diction of the United States, provided that such in-
spection shall be performed within 30 days of such
vessel’s return to the United States.’’.
(c) INSPECTION BY OTHER ENTITIES.—Section 385
of such Act (47 U.S.C. 385) is amended by inserting ‘‘or
an entity designated by the Commission’’ after ‘‘The Com-
mission’’.
SEC. 3016. EXPEDITED ITFS PROCESSING.
Section 5(c)(1) of the Communications Act of 1934
(47 U.S.C. 155(c)(1)) is amended by striking the last sen-
tence and inserting the following: ‘‘Except for cases involv-
ing the authorization of service in the Instructional Tele-
vision Fixed Service, or as otherwise provided in this Act,
nothing in this paragraph shall authorize the Commission
to provide for the conduct, by any person or persons other
than persons referred to in paragraph (2) or (3) of section
556(b) of title 5, United States Code, of any hearing to
which such section applies.’’.
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SEC. 3017. TARIFF REJECTION AUTHORITY.
Section 203(d) of the Communications Act of 1934
(47 U.S.C. 203(d)) is amended by inserting after the first
sentence the following new sentences: ‘‘The Commission
may, after affording interested parties an opportunity to
comment, reject a proposed tariff filing in whole or in
part, if the filing or any part thereof is patently unlawful.
In evaluating whether a proposed tariff filing is patently
unlawful, the Commission may consider additional infor-
mation filed by the carrier or any interested party and
shall presume the facts alleged by the carrier to be true.’’.
SEC. 3018. REFUND AUTHORITY.
Title II of the Communications Act of 1934 (47
U.S.C. 201 et seq.) is amended by adding at the end there-
of the following new section:
‘‘SEC. 230. REFUND AUTHORITY.
‘‘In addition to any other provision of this Act under
which the Commission may order refunds, the Commission
may require by order the refund of such portion of any
charge by any carrier or carriers as results from a viola-
tion of section 220 (a), (b), or (d) or 221 (c) or (d) or
of any of the rules promulgated pursuant to such sections
or pursuant to section 215, 218, or 219. Such refunds
shall be ordered only to the extent that the Commission
or a court finds that such violation resulted in unlawful
charges and shall be made to such persons or classes of
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persons as the Commission determines reasonably rep-
resent the persons from whom amounts were improperly
received by reason of such violation. No refunds shall be
required under this section unless—
‘‘(1) the Commission issues an order advising
the carrier of its potential refund liability and pro-
vides the carrier with an opportunity to file written
comments as to why refunds should not be required;
and
‘‘(2) such order is issued not later than 5 years
after the date the charge was paid.
In the case of a continuing violation, a violation shall be
considered to occur on each date that the violation is re-
peated.’’.
SEC. 3019. LICENSING OF AVIATION AND MARITIME SERV-
ICES BY RULE.
Section 307(e) of the Communications Act of 1934
(47 U.S.C. 307(e)) is amended to read as follows:
‘‘(e)(1) Notwithstanding any license requirement es-
tablished in this Act, if the Commission determines that
such authorization serves the public interest, convenience,
and necessity, the Commission may by rule authorize the
operation of radio stations without individual licenses in
the following radio services: (A) the aviation radio service
for aircraft stations operated on domestic flights when
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such aircraft are not otherwise required to carry a radio
station; and (B) the maritime radio service for ship sta-
tions navigated on domestic voyages when such ships are
not otherwise required to carry a radio station.
‘‘(2) Any radio station operator who is authorized by
the Commission to operate without an individual license
shall comply with all other provisions of this Act and with
rules prescribed by the Commission under this Act.
‘‘(3) For purposes of this subsection, the terms ‘air-
craft station’ and ‘ship station’ shall have the meanings
given them by the Commission by rule.’’.
SEC. 3020. AUCTION TECHNICAL AMENDMENTS.
(a) FUNDING AVAILABILITY.—Section 309(j)(8)(B)
of the Communications Act of 1934 (47 U.S.C.
309(j)(8)(B)) is amended by adding at the end the follow-
ing new sentence: ‘‘Such offsetting collections are author-
ized to remain available until expended.’’.
(b) ESCROW
OF DEPOSITS.—Section 309(j)(8) of
such Act is further amended by adding at the end the fol-
lowing new subparagraph:
‘‘(C) ESCROW OF DEPOSIT.—The Commis-
sion is authorized, based on the competitive bid-
ding methodology selected, to provide for the
deposit of moneys for bids in an interest-bear-
ing account until such time as the Commission
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accepts a deposit from the high bidder. All in-
terest earned on bid moneys received from the
winning bidder shall be deposited into the gen-
eral fund of the Treasury. All interest earned
on bid moneys deposited from unsuccessful bid-
ders, less any applicable fees and penalties,
shall be paid to those bidders.’’.
SEC. 3021. FORFEITURES FOR VIOLATIONS IMPERILING
SAFETY OF LIFE.
(a) ADMINISTRATIVE SANCTIONS.—Section 312(a) of
the Communications Act of 1934 (47 U.S.C. 312(a)) is
amended—
(1) by striking ‘‘or’’ at the end of paragraph
(6);
(2) by striking the period at the end of para-
graph (7) and inserting ‘‘; or’’; and
(3) by adding at the end the following new
paragraph:
‘‘(8) for failure to comply with any requirement
of this Act or the Commission’s rules that imperils
the safety of life.’’.
(b) FORFEITURES.—Section 503(b)(1) of such Act
(47 U.S.C. 503(b)(1)) is amended—
(1) by striking ‘‘or’’ at the end of subparagraph
(C);
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(2) by striking the semicolon at the end of sub-
paragraph (D) and inserting ‘‘; or’’; and
(3) by adding after subparagraph (D) the fol-
lowing new subparagraph:
‘‘(E) failed to comply with any requirement of
this Act or the Commission’s rules that imperils the
safety of life;’’.
SEC. 3022. USE OF EXPERTS AND CONSULTANTS.
Section 4(f)(1) of the Communications Act of 1934
(47 U.S.C. 154) is amended by adding at the end thereof
the following: ‘‘The Commission may also procure the
services of experts and consultants in accordance with sec-
tion 3109 of title 5, United States Code, relating to ap-
pointments in the Federal Service, at rates of compensa-
tion for individuals not to exceed the daily rate equivalent
to the maximum rate payable for senior-level positions
under section 5276 of title 5, United States Code.’’.
SEC. 3023. STATUTE OF LIMITATIONS FOR FORFEITURE
PROCEEDINGS AGAINST COMMON CARRIERS.
Section 503(b)(6) of the Communications Act of
1934 (47 U.S.C. 503(b)(6)) is amended—
(1) by striking ‘‘or’’ at the end of subparagraph
(A);
(2) by inserting ‘‘and is not a common carrier’’
after ‘‘title III of this Act’’ in subparagraph (B);
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(3) by redesignating subparagraph (B) as sub-
paragraph (C); and
(4) by inserting after subparagraph (A) the fol-
lowing new subparagraph:
‘‘(B) such person is a common carrier and the
required notice of apparent liability is issued more
than 5 years after the date the violation charged oc-
curred; or’’.
SEC. 3024. UTILIZATION OF FM BAND FOR ASSISTIVE DE-
VICES FOR HEARING IMPAIRED INDIVID-
UALS.
Within 6 months after the date of enactment of this
Act, the Federal Communications Commission shall report
to the Congress on the existing and future use of the FM
band to facilitate the use of auditory assistive devices for
individuals with hearing impairments. In preparing such
report, the Commission shall consider—
(1) the potential for utilizing FM band auditory
assistive devices to comply with the American with
Disabilities Act;
(2) the impact on such compliance of the vul-
nerability of such devices to harmful interference
from radio licensees; and
(3) alternative frequency allocations that could
facilitate such compliance.
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SEC. 3025. TECHNICAL AMENDMENT.
Section 302(d)(1) of the Communications Act of
1934 (47 U.S.C. 309(d)(1)) is amended—
(1) in subparagraph (A), by striking ‘‘allocated
to the domestic cellular radio telecommunications
service’’ and inserting ‘‘utilized to provide commer-
cial mobile service (as defined in section 332(d))’’;
and
(2) in subparagraph (C), by striking ‘‘cellular’’
and inserting ‘‘commercial mobile service’’.
Subtitle B—Nuclear Regulatory
Commission Annual Charge
SEC. 3031. NUCLEAR REGULATORY COMMISSION ANNUAL
CHARGES.
Section 6101(a)(3) of the Omnibus Budget Reconcili-
ation Act of 1990 (42 U.S.C. 2214(a)(3)) is amended by
striking ‘‘September 30, 1998’’ and inserting ‘‘September
30, 2002’’.
Subtitle C—United States
Enrichment Corporation
SEC. 3035. SHORT TITLE AND REFERENCE.
(a) SHORT TITLE.—This subtitle may be cited as the
‘‘USEC Privatization Act’’.
(b) REFERENCE.—Except as otherwise expressly pro-
vided, whenever in this subtitle an amendment or repeal
is expressed in terms of an amendment to, or repeal of,
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a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the
Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.).
SEC. 3036. PRODUCTION FACILITY.
Paragraph v. of section 11 (42 U.S.C. 2014 v.) is
amended by striking ‘‘or the construction and operation
of a uranium enrichment production facility using Atomic
Vapor Laser Isotope Separation technology’’.
SEC. 3037. DEFINITIONS.
Section 1201 (42 U.S.C. 2297) is amended—
(1) in paragraph (4), by inserting before the pe-
riod the following: ‘‘and any successor corporation
established through privatization of the Corpora-
tion’’;
(2) by redesignating paragraphs (10) through
(13) as paragraphs (14) through (17), respectively,
and by inserting after paragraph (9) the following
new paragraphs:
‘‘(10) The term ‘low-level radioactive waste’ has
the meaning given such term in section 102(9) of
the Low-Level Radioactive Waste Policy Amend-
ments Act of 1985 (42 U.S.C. 2021b(9)).
‘‘(11) The term ‘mixed waste’ has the meaning
given such term in section 1004(41) of the Solid
Waste Disposal Act (42 U.S.C. 6903(41)).
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‘‘(12) The term ‘privatization’ means the trans-
fer of ownership of the Corporation to private inves-
tors pursuant to chapter 25.
‘‘(13) The term ‘privatization date’ means the
date on which 100 percent of ownership of the Cor-
poration has been transferred to private investors.’’;
(3) by inserting after paragraph (17) (as redes-
ignated) the following new paragraph:
‘‘(18) The term ‘transition date’ means July 1,
1993.’’;
(4) by redesignating the unredesignated para-
graph (14) as paragraph (19); and
(5) by adding the following new paragraphs
after paragraph (19):
‘‘(20) The term ‘gaseous diffusion plants’
means the Paducah Gaseous Diffusion Plant at Pa-
ducah, Kentucky and the Portsmouth Gaseous Dif-
fusion Plant at Piketon, Ohio.
‘‘(21) The term ‘private corporation’ means the
corporation established under section 1503.
‘‘(22) The term ‘Russian HEU agreement’
means the Agreement Between the Government of
the United States of America and the Government
of the Russian Federation Concerning the Disposi-
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tion of Highly Enriched Uranium Extracted from
Nuclear Weapons, dated February 18, 1993.
‘‘(23) The term ‘Suspension Agreement’ means
the Agreement to Suspend the Antidumping Inves-
tigation on Uranium from the Russian Federation,
as amended.’’.
SEC. 3038. EMPLOYEES OF THE CORPORATION.
(a) PARAGRAPHS (1) AND (2).—Section 1305(e) (42
U.S.C. 2297b–4(e)) is amended by striking paragraphs
(1) and (2) and inserting in thereof the following:
‘‘(1) IN GENERAL.—
‘‘(A) Privatization shall not diminish the
accrued, vested pension benefits of employees of
the Corporation’s operating contractor at the
two gaseous diffusion plants.
‘‘(B) In the event that the private corpora-
tion terminates or changes the contractor at ei-
ther or both of the gaseous diffusion plants, the
plan sponsor or other appropriate fiduciary of
the pension plan covering employees of the
prior operating contractor shall arrange for the
transfer of all plan assets and liabilities relating
to accrued pension benefits of such plan’s par-
ticipants and beneficiaries from such plan to a
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pension plan sponsored by the new contractor
or the private corporation, as the case may be.
‘‘(C) Any employer (including the private
corporation or any contractor of the private cor-
poration) at a gaseous diffusion plant shall
abide by the terms of any unexpired collective
bargaining agreement covering employees in
bargaining units at the plant and in effect on
the privatization date until the expiration of the
agreement.
‘‘(D) In the event of a plant closing or
mass layoff (as such terms are defined in sec-
tion 2101(a) (2) and (3) of title 29, United
States Code) at either of the gaseous diffusion
plants, the Secretary of Energy shall treat such
plant as a Department of Energy defense nu-
clear facility and any person employed by an
operating contractor on the privatization date
at either plant as a Department of Energy em-
ployee for purposes of sections 3161 through
3163 of the National Defense Authorization Act
for Fiscal Year 1993 (42 U.S.C. 7274h–7274j).
‘‘(E) The Department of Energy and the
private corporation shall continue to fund post-
retirement health benefits for persons employed
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by an operating contractor at either of the gas-
eous diffusion plants at substantially the same
level of coverage as eligible retirees are entitled
to receive on the privatization date, consistent
with clauses (i) through (iii), except that the
Department of Energy, the private corporations
and the operating contractor shall have the
right to implement cost-saving measures, in-
cluding (but not limited to) preferred provider
organizations, managed care programs, manda-
tory second opinions before surgery or other
medical procedures, and mandatory use of ge-
neric drugs, that do not materially diminish the
overall quality of the medical care provided—
‘‘(i) persons eligible for this coverage
shall be limited to persons who retired
from active employment at one of the gase-
ous diffusion plants as of the privatization
date, as vested participants in a pension
plan maintained either by the Corpora-
tion’s operating contractor or by a contrac-
tor employed prior to July 1, 1993, by the
Department of Energy to operate either of
the gaseous diffusion plants and persons
who, as of the privatization date, are em-
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ployed by the Corporation’s operating con-
tractor and are vested participants in a
pension plan maintained either by the Cor-
poration’s operating contractor or by a
contractor employed prior to July 1, 1993,
by the Department of Energy to operate
either of the gaseous diffusion plants;
‘‘(ii) for persons who retired from em-
ployment with an operating contractor
prior to July 1, 1993, the Department of
Energy shall fund the entire cost of post-
retirement health benefits; and
‘‘(iii) for persons who retire from em-
ployment with an operating contractor
after July 1, 1993, the Department of En-
ergy and the private corporation shall fund
the cost of postretirement health benefits
in proportion to the retired persons’ years
and months of service at a gaseous diffu-
sion plant under their respective manage-
ment.’’.
(b) PARAGRAPH
(4).—Paragraph (4) of section
1305(e) (42 U.S.C. 2297b–4(e)(4)) is amended—
(1) by striking ‘‘AND DETAILEES’’ in the head-
ing;
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(2) by striking the first sentence;
(3) in the second sentence, by inserting ‘‘from
other Federal employment’’ after ‘‘transfer to the
Corporation’’; and
(4) by striking the last sentence.
SEC. 3039. MARKETING AND CONTRACTING AUTHORITY.
(a) MARKETING AUTHORITY.—Section 1401(a) (42
U.S.C. 2297c(a)) is amended effective on the privatization
date (as defined in section 1201(13) of the Atomic Energy
Act of 1954)—
(1) by amending the subsection heading to read
‘‘MARKETING AUTHORITY.—’’; and
(2) by striking the first sentence.
(b) TRANSFER OF CONTRACTS.—Section 1401(b) (42
U.S.C. 2297c(b)) is amended—
(1) in paragraph (2)(B), by adding at the end
the following: ‘‘The privatization of the Corporation
shall not affect the terms of, or the rights or obliga-
tions of the parties to, any such power purchase con-
tract.’’; and
(2) by adding at the end the following:
‘‘(3) EFFECT OF TRANSFER.—
‘‘(A) As a result of the transfer pursuant
to paragraph (1), all rights, privileges, and ben-
efits under such contracts, agreements, and
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leases, including the right to amend, modify, ex-
tend, revise, or terminate any of such contracts,
agreements, or leases were irrevocably assigned
to the Corporation for its exclusive benefit.
‘‘(B) Notwithstanding the transfer pursu-
ant to paragraph (1), the United States shall
remain obligated to the parties to the contracts,
agreements, and leases transferred pursuant to
paragraph (1) for the performance of the obli-
gations of the United States thereunder during
the term thereof. The Corporation shall reim-
burse the United States for any amount paid by
the United States in respect of such obligations
arising after the privatization date to the extent
such amount is a legal and valid obligation of
the Corporation then due.
‘‘(C) After the privatization date, upon any
material amendment, modification, extension,
revision, replacement, or termination of any
contract, agreement, or lease transferred under
paragraph (1), the United States shall be re-
leased from further obligation under such con-
tract, agreement, or lease, except that such ac-
tion shall not release the United States from
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obligations arising under such contract, agree-
ment, or lease prior to such time.’’.
(c) PRICING.—Section 1402 (42 U.S.C. 2297c–1) is
amended to read as follows:
‘‘SEC. 1402. PRICING.
‘‘The Corporation shall establish prices for its prod-
ucts, materials, and services provided to customers on a
basis that will allow it to attain the normal business objec-
tives of a profitmaking corporation.’’.
(d) LEASING OF GASEOUS DIFFUSION FACILITIES OF
DEPARTMENT.—Effective on the privatization date (as de-
fined in section 1201(13) of the Atomic Energy Act of
1954), section 1403 (42 U.S.C. 2297c–2) is amended by
adding at the end the following:
‘‘(h) LOW-LEVEL RADIOACTIVE WASTE AND MIXED
WASTE.—
‘‘(1) RESPONSIBILITY
OF
THE
DEPARTMENT;
COSTS.—
‘‘(A) With respect to low-level radioactive
waste and mixed waste generated by the Cor-
poration as a result of the operation of the fa-
cilities and related property leased by the Cor-
poration pursuant to subsection (a) or as a re-
sult of treatment of such wastes at a location
other than the facilities and related property
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leased by the Corporation pursuant to sub-
section (a) the Department, at the request of
the Corporation, shall—
‘‘(i) accept for treatment or disposal
of all such wastes for which treatment or
disposal technologies and capacities exist,
whether within the Department or else-
where; and
‘‘(ii) accept for storage (or ultimately
treatment or disposal) all such wastes for
which treatment and disposal technologies
or capacities do not exist, pending develop-
ment of such technologies or availability of
such capacities for such wastes.
‘‘(B) All low-level wastes and mixed wastes
that the Department accepts for treatment,
storage, or disposal pursuant to subparagraph
(A) shall, for the purpose of any permits, li-
censes, authorizations, agreements, or orders
involving the Department and other Federal
agencies or State or local governments, be
deemed to be generated by the Department and
the Department shall handle such wastes in ac-
cordance with any such permits, licenses, au-
thorizations, agreements, or orders. The De-
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partment shall obtain any additional permits, li-
censes, or authorizations necessary to handle
such wastes, shall amend any such agreements
or orders as necessary to handle such wastes,
and shall handle such wastes in accordance
therewith.
‘‘(C) The Corporation shall reimburse the
Department for the treatment, storage, or dis-
posal of low-level radioactive waste or mixed
waste pursuant to subparagraph (A) in an
amount equal to the Department’s costs but in
no event greater than an amount equal to that
which would be charged by commercial, State,
regional, or interstate compact entities for
treatment, storage, or disposal of such waste.
‘‘(2) AGREEMENTS
WITH
OTHER
PERSONS.—
The Corporation may also enter into agreements for
the treatment, storage, or disposal of low-level radio-
active waste and mixed waste generated by the Cor-
poration as a result of the operation of the facilities
and related property leased by the Corporation pur-
suant to subsection (a) with any person other than
the Department that is authorized by applicable laws
and regulations to treat, store, or dispose of such
wastes.’’.
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(e) LIABILITIES.—
(1) Subsection (a) of section 1406 (42 U.S.C.
2297c–5(a)) is amended—
(A) by inserting ‘‘AND PRIVATIZATION’’
after ‘‘TRANSITION’’ in the heading; and
(B) by adding at the end the following:
‘‘As of the privatization date, all liabilities at-
tributable to the operation of the Corporation
from the transition date to the privatization
date shall be direct liabilities of the United
States.’’.
(2) Subsection (b) of section 1406 (42 U.S.C.
2297c–5(b)) is amended—
(A) by inserting ‘‘AND PRIVATIZATION’’
after ‘‘TRANSITION’’ in the heading; and
(B) by adding at the end the following:
‘‘As of the privatization date, any judgment en-
tered against the Corporation imposing liability
arising out of the operation of the Corporation
from the transition date to the privatization
date shall be considered a judgment against the
United States.’’.
(3) Subsection (d) of section 1406 (42 U.S.C.
2297c–5(d)) is amended—
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(A) by inserting ‘‘AND PRIVATIZATION’’
after ‘‘TRANSITION’’ in the heading; and
(B) by striking ‘‘the transition date’’ and
inserting ‘‘the privatization date (or, in the
event the privatization date does not occur, the
transition date)’’.
(f) TRANSFER OF URANIUM.—
(1) AMENDMENT.—Title II (42 U.S.C. 2297 et
seq.) is amended by redesignating section 1408 as
section 1409 and by inserting after section 1407 the
following:
‘‘SEC. 1408. URANIUM TRANSFERS AND SALES.
‘‘(a) TRANSFERS AND SALES BY THE SECRETARY.—
The Secretary shall not provide enrichment services or
transfer or sell any uranium (including natural or enriched
uranium in any form) to any person except as provided
in this section.
‘‘(b) RUSSIAN HEU.—
‘‘(1) TRANFERS.—Prior to December 31, 1996,
the United States Executive Agent under the Rus-
sian HEU Agreement shall transfer to the Secretary
without charge an amount of uranium hexafluoride
equivalent to the natural uranium component of low-
enriched uranium derived from at least 18 metric
tons of highly enriched uranium purchased from the
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Russian Executive Agent under the Russian HEU
Agreement. 
The 
quantity 
of 
such 
uranium
hexafluoride delivered to the Secretary shall be
based on a tails assay of 0.30 U235. Title to ura-
nium hexafluoride delivered to the Secretary pursu-
ant to this paragraph shall transfer to the Secretary
upon delivery of such material to the Secretary. Ura-
nium hexafluoride delivered to the Secretary pursu-
ant to this paragraph shall be deemed to be of Rus-
sian origin.
‘‘(2) CONTRACTS.—Within 7 years of the date
of enactment of the USEC Privatization Act, the
Secretary shall enter into contracts to sell the ura-
nium hexafluoride transferred to the Secretary pur-
suant to paragraph (1). Such uranium hexafluoride
shall be sold—
‘‘(A) at any time for use in the United
States for the purpose of overfeeding;
‘‘(B) at any time for use outside the
United States; and
‘‘(C) for consumption by end users in the
United States not prior to January 1, 2002, in
volumes not to exceed 3 million pounds U3O8
equivalent per year.
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‘‘(3) URANIUM HEXAFLUORIDE.—With respect
to all low-enriched uranium that is delivered to the
United States Executive Agent under the Russian
HEU Agreement after January 1, 1997, the United
States Executive Agent shall, upon request of the
Russian Executive Agent, deliver to the Russian Ex-
ecutive Agent an amount of uranium hexafluoride
equivalent to the natural uranium component of
such low-enriched uranium simultaneously with the
delivery of such low-enriched uranium. The quantity
of such uranium hexafluoride delivered to the Rus-
sian Executive Agent shall be based on a tails assay
of 0.30 U235. Title to uranium hexafluoride deliv-
ered to the Russian Executive Agent pursuant to
this paragraph shall transfer to the Russian Execu-
tive Agent upon delivery of such material to the
Russian Executive Agent at a North American facil-
ity designated by the Russian Executive Agent. Ura-
nium hexafluoride delivered to the Russian Execu-
tive Agent pursuant to this paragraph shall be
deemed to be of Russian origin. Such uranium
hexafluoride may be sold to any person or entity
consistent with the limitations on delivery to end
users set forth in this subsection. Nothing in this
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subsection shall restrict the sale of the conversion
component of such uranium hexafluoride.
‘‘(4) INDEPENDENT PARTY.—In the event that
the Russian Executive Agent does not request deliv-
ery of the natural uranium component of any low-
enriched uranium, as contemplated in paragraph (3),
within 90 days of the date such low-enriched ura-
nium is delivered to the United States Executive
Agent, then the United States Executive Agent shall
engage an independent party through a competitive
selection process to auction an amount of uranium
hexafluoride equivalent to the natural uranium com-
ponent of such low-enriched uranium. Such inde-
pendent party shall sell such uranium hexafluoride
to any person or entity consistent with the limita-
tions set forth in this subsection. The independent
entity shall pay to the Russian Executive Agent the
proceeds of any such auction less all transaction and
other administrative costs. The quantity of such ura-
nium hexafluoride auctioned shall be based on a tails
assay of 0.30 U235. Title to uranium hexafluoride
auctioned pursuant to this paragraph shall transfer
to the buyer of such material upon delivery of such
material to the buyer. Uranium hexafluoride auc-
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tioned pursuant to this paragraph shall be deemed
to be of Russian origin.
‘‘(5) CONSUMPTION.—Except as provided in
paragraphs (6) and (7), uranium hexafluoride deliv-
ered to the Secretary under paragraph (1) or the
Russian Executive Agent under paragraph (3) or
auctioned pursuant to paragraph (4), may not be de-
livered for consumption by end users in the United
States prior to January 1, 1998 and thereafter only
in accordance with the following schedule:
Annual Maximum Deliveries to
End Users
‘‘Year
(millions lbs. U3O8 equivalent)
1998– .............................................
2 million lbs. U3O8 equivalent
1999– .............................................
4 million lbs. U3O8 equivalent
2000– .............................................
6 million lbs. U3O8 equivalent
2001– .............................................
8 million lbs. U3O8 equivalent
2002– .............................................
10 million lbs. U3O8 equivalent
2003– .............................................
12 million lbs. U3O8 equivalent
2004– .............................................
14 million lbs. U3O8 equivalent
2005 and each year thereafter ......
16 million lbs. U3O8 equivalent
‘‘(6) MATCHED SALES.—Uranium hexafluoride
delivered to the Secretary under paragraph (1) or
the Russian Executive Agent under paragraph (3) or
auctioned pursuant to paragraph (4) may be sold at
any time as Russian-origin natural uranium in a
sale with an equal portion of U.S.-origin natural
uranium pursuant to the Suspension Agreement and
in such case shall not be counted against the annual
maximum deliveries set forth in paragraph (5).
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‘‘(7) OVERFEEDING.—Uranium hexafluoride de-
livered to the Secretary under paragraph (1) or the
Russian Executive Agent under paragraph (3) or
auctioned pursuant to paragraph (4) may be sold at
any time for use in the United States for the pur-
pose of overfeeding in the operations of enrichment
facilities.
‘‘(c) TRANSFERS TO THE CORPORATION.—(1) Before
the privatization date, the Secretary may transfer to the
Corporation without charge the low enriched uranium
from up to 50 metric tons of highly enriched uranium and
up to 7,000 metric tons of natural uranium, subject to
the restrictions in subsection (b)(2).
‘‘(2) The Corporation (or its successor) may not de-
liver for commercial end use—
‘‘(A) any of the natural uranium transferred
under this subsection before January 1, 1998;
‘‘(B) more than 10 percent of the natural ura-
nium (by uranium hexafluoride equivalent content)
transferred under this subsection or more than 4
million pounds, whichever is less, in any calendar
year after 1997; or
‘‘(C) more than 800,000 separative work units
of low-enriched uranium transferred under this sub-
section in any calendar year.
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‘‘(d) INVENTORY SALES.—(1) In addition to the
transfers authorized under subsection (b), the Secretary
may, from time to time, sell natural and low-enriched ura-
nium (including low-enriched uranium derived from highly
enriched uranium) from the Department of Energy s
stockpile.
‘‘(2) Except as provided in subsections (b) and (d),
no sale or transfer of natural or low-enriched uranium
shall be made unless—
‘‘(A) the President determines that the material
is not necessary to national security needs,
‘‘(B) the Secretary determines that the sale of
the material will not have an adverse impact on the
domestic uranium mining and enrichment industries,
taking into account the sales of uranium under the
Russian HEU Agreement and the Suspension Agree-
ment, and
‘‘(C) the price paid to the Secretary will not be
less than the fair market value of the material.
‘‘(e) GOVERNMENT TRANSFERS.—Notwithstanding
subsection (c), the Secretary may transfer or sell low-en-
riched uranium—
‘‘(1) to a federal agency if the material is trans-
ferred for the use of the receiving agency without
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any resale or transfer to another entity and the ma-
terial does not meet commercial specifications;
‘‘(2) to any person for national security pur-
poses, as determined by the Secretary; or
‘‘(3) to any state or local agency or nonprofit,
charitable, or educational institution for use other
than the generation of electricity for commercial
use.’’.
(2) CONFORMING AMENDMENT.—The table of
contents for chapter 24 is amended by redesignating
the item relating to section 1408 as the item relat-
ing to section 1409 and by inserting after the item
for section 1407 the following:
‘‘Sec. 1408. Uranium transfers and sales.’’.
SEC. 3040. PRIVATIZATION OF THE CORPORATION.
(a) ESTABLISHMENT OF PRIVATE CORPORATION.—
Chapter 25 (42 U.S.C. 2297d et seq.) is amended by add-
ing at the end the following new section:
‘‘SEC. 1503. ESTABLISHMENT OF PRIVATE CORPORATION.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—In order to facilitate pri-
vatization, the Corporation may provide for the es-
tablishment of a private corporation organized under
the laws of any of the several States. Such corpora-
tion shall have among its purposes the following:
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‘‘(A) To help maintain a reliable and eco-
nomical domestic source of uranium enrichment
services.
‘‘(B) To undertake any and all activities as
provided in its corporate charter.
‘‘(2) AUTHORITIES.—The corporation estab-
lished pursuant to paragraph (1) shall be authorized
to—
‘‘(A) enrich uranium, provide for uranium
to be enriched by others, or acquire enriched
uranium (including low-enriched uranium de-
rived from highly enriched uranium);
‘‘(B) conduct, or provide for conducting,
those research and development activities relat-
ed to uranium enrichment and related processes
and activities the corporation considers nec-
essary or advisable to maintain itself as a com-
mercial enterprise operating on a profitable and
efficient basis;
‘‘(C) enter into transactions regarding ura-
nium, enriched uranium, or depleted uranium
with—
‘‘(i) persons licensed under section 53,
63, 103, or 104 in accordance with the li-
censes held by those persons;
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‘‘(ii) persons in accordance with, and
within the period of, an agreement for co-
operation arranged under section 123; or
‘‘(iii) persons otherwise authorized by
law to enter into such transactions;
‘‘(D) enter into contracts with persons li-
censed under section 53, 63, 103, or 104, for
as long as the corporation considers necessary
or desirable, to provide uranium or uranium en-
richment and related services;
‘‘(E) enter into contracts to provide ura-
nium or uranium enrichment and related serv-
ices in accordance with, and within the period
of, an agreement for cooperation arranged
under section 123 or as otherwise authorized by
law; and
‘‘(F) take any and all such other actions as
are permitted by the law of the jurisdiction of
incorporation of the corporation.
‘‘(3) TRANSFER OF ASSETS.—For purposes of
implementing the privatization, the Corporation may
transfer some or all of its assets and obligations to
the corporation established pursuant to this section,
including—
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‘‘(A) all of the Corporation’s assets and
obligations, including all of the Corporation’s
rights, duties, and obligations accruing subse-
quent to the privatization date under contracts,
agreements, and leases entered into by the Cor-
poration before the privatization date, including
all uranium enrichment contracts and power
purchase contracts;
‘‘(B) all funds in accounts of the Corpora-
tion held by the Treasury or on deposit with
any bank or other financial institution;
‘‘(C) all of the Corporation’s rights, duties,
and obligations, accruing subsequent to the pri-
vatization date, under the power purchase con-
tracts covered by section 1401(b)(2)(B);
‘‘(D) all of the Corporation’s rights, duties,
and obligations, accruing subsequent to the pri-
vatization date, under the lease agreement be-
tween the Department and the Corporation exe-
cuted by the Department and the Corporation
pursuant to section 1403; and
‘‘(E) all of the Corporation’s records, in-
cluding all of the papers and other documentary
materials, regardless of physical form or char-
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acteristics, made or received by the Corpora-
tion.
‘‘(4) MERGER OR CONSOLIDATION.—For pur-
poses of implementing the privatization, the Cor-
poration may merge or consolidate with the corpora-
tion established pursuant to subsection (a)(1) if such
action is contemplated by the plan for privatization
approved by the President under section 1502(b).
The Board shall have exclusive authority to approve
such merger or consolidation and to take all further
actions necessary to consummate such merger or
consolidation, and no action by or in respect of
shareholders shall be required. The merger or con-
solidation shall be effected in accordance with, and
have the effects of a merger or consolidation under,
the laws of the jurisdiction of incorporation of the
surviving corporation, and all rights and benefits
provided under this title to the Corporation shall
apply to the surviving corporation as if it were the
Corporation.
‘‘(b) OSHA REQUIREMENTS.—For purposes of the
regulation of radiological and nonradiological hazards
under the Occupational Safety and Health Act of 1970,
the corporation established pursuant to subsection (a)(1)
shall be treated in the same manner as other employers
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licensed by the Nuclear Regulatory Commission. Any
interagency agreement entered into between the Nuclear
Regulatory Commission and the Occupational Safety and
Health Administration governing the scope of their respec-
tive regulatory authorities shall apply to the corporation
as if the corporation were a Nuclear Regulatory Commis-
sion licensee.
‘‘(c) LEGAL STATUS OF PRIVATE CORPORATION.—
‘‘(1) NOT FEDERAL AGENCY.—The Corporation
established pursuant to subsection (a)(1) shall not
be an agency, instrumentality, or establishment of
the United States Government and shall not be a
Government corporation or Government-controlled
corporation.
‘‘(2) 
NO
RECOURSE
AGAINST
UNITED
STATES.—Obligations of the Corporation established
pursuant to subsection (a)(1) shall not be obliga-
tions of, or guaranteed as to principal or interest by,
the Corporation or the United States, and the obli-
gations shall so plainly state.
‘‘(3) NO CLAIMS COURT JURISDICTION.—No ac-
tion under section 1491 of title 28, United States
Code, shall be allowable against the United States
based on the actions of the Corporation established
pursuant to subsection (a)(1).
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‘‘(d) BOARD OF DIRECTOR’S ELECTION AFTER PUB-
LIC OFFERING.—In the event that the privatization is im-
plemented by means of a public offering, an election of
the members of the board of directors of the Corporation
by the shareholders shall be conducted before the end of
the 1-year period beginning the date shares are first of-
fered to the public pursuant to such public offering.
‘‘(e) ADEQUATE PROCEEDS.—The Secretary of En-
ergy shall not allow the privatization of the Corporation
unless before the sale date the Secretary determines that
the estimated sum of the gross proceeds from the sale of
the Corporation will be an adequate amount.’’.
(b) OWNERSHIP
LIMITATIONS.—Chapter 25 (as
amended by subsection (a)) is amended by adding at the
end the following new section:
‘‘SEC. 1504. OWNERSHIP LIMITATIONS.
‘‘(a) SECURITIES LIMITATION.—In the event that the
privatization is implemented by means of a public offering,
during a period of 3 years beginning on the privatization
date, no person, directly or indirectly, may acquire or hold
securities representing more than 10 percent of the total
votes of all outstanding voting securities of the Corpora-
tion.
‘‘(b) APPLICATION.—Subsection (a) shall not apply—
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‘‘(1) to any employee stock ownership plan of
the Corporation,
‘‘(2) to underwriting syndicates holding shares
for resale, or
‘‘(3) in the case of shares beneficially held for
others, to commercial banks, broker-dealers, clearing
corporations, or other nominees.
‘‘(c) ACQUISITIONS.—No director, officer, or em-
ployee of the Corporation may acquire any securities, or
any right to acquire securities, of the Corporation—
‘‘(1) in the public offering of securities of the
Corporation in the implementation of the privatiza-
tion,
‘‘(2) pursuant to any agreement, arrangement,
or understanding entered into before the privatiza-
tion date, or
‘‘(3) before the election of directors of the Cor-
poration under section 1503(d) on any terms more
favorable than those offered to the general public.’’.
(c) EXEMPTION FROM LIABILITY.—Chapter 25 (as
amended by subsection (b)) is amended by adding at the
end the following new section:
‘‘SEC. 1505. EXEMPTION FROM LIABILITY.
‘‘(a) IN GENERAL.—No director, officer, employee, or
agent of the Corporation shall be liable, for money dam-
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ages or otherwise, to any party if, with respect to the sub-
ject matter of the action, suit, or proceeding, such person
was fulfilling a duty, in connection with any action taken
in connection with the privatization, which such person in
good faith reasonably believed to be required by law or
vested in such person.
‘‘(b) EXCEPTION.—The privatization shall be subject
to the Securities Act of 1933 and the Securities Exchange
Act of 1934. The exemption set forth in subsection (a)
shall not apply to claims arising under such Acts or under
the Constitution or laws of any State, territory, or posses-
sion of the United States relating to transactions in secu-
rities, which claims are in connection with a public offer-
ing implementing the privatization.
‘‘(c) SECURITIES LAWS APPLICABLE.—Any offering
or sale of securities by the Corporation established pursu-
ant to section 1503(a)(1) shall be subject to the Securities
Act of 1933, the Securities Exchange Act of 1934 and
the provisions of the Constitution and laws of any State,
territory, or possession of the United States relating to
transactions in securities.’’.
(d) RESOLUTION OF CERTAIN ISSUES.—Chapter 25
(as amended by subsection (c)) is amended by adding at
the end the following new section:
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‘‘SEC. 1506. RESOLUTION OF CERTAIN ISSUES.
‘‘(a) CORPORATION ACTIONS.—Notwithstanding any
provision of any agreement to which the Corporation is
a party, the Corporation shall not be considered to be in
breach, default, or violation of any such agreement be-
cause of any provision of this chapter or any action the
Corporation is required to take under this chapter.
‘‘(b) RIGHT TO SUE WITHDRAWN.—The United
States hereby withdraws any stated or implied consent for
the United States, or any agent or officer of the United
States, to be sued by any person for any legal, equitable,
or other relief with respect to any claim arising out of,
or resulting from, acts or omissions under this chapter.’’.
(e) CONFORMING AMENDMENT.—The table of con-
tents for chapter 25 is amended by inserting after the item
for section 1502 the following:
‘‘Sec. 1503. Establishment of Private Corporation.
‘‘Sec. 1504. Ownership Limitations.
‘‘Sec. 1505. Exemption from Liability.
‘‘Sec. 1506. Resolution of Certain Issues.’’.
(f) Section 193 (42 U.S.C. 2243) is amended by add-
ing at the end the following:
‘‘(f) LIMITATION.—If the privatization of the United
States Enrichment Corporation results in the Corporation
being—
‘‘(1) owned, controlled, or dominated by a for-
eign corporation or a foreign government, or
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‘‘(2) otherwise inimical to the common defense
or security of the United States,
any license held by the Corporation under sections 53 and
63 shall be terminated.’’.
(g) PERIOD FOR CONGRESSIONAL REVIEW.—Section
1502(d) (42 U.S.C. 2297d–1(d)) is amended by striking
‘‘less than 60 days after notification of the Congress’’ and
inserting ‘‘less than 60 days after the date of the report
to Congress by the Comptroller General under subsection
(c)’’.
SEC. 3041. PERIODIC CERTIFICATION OF COMPLIANCE.
Section 1701(c)(2) (42 U.S.C. 2297f(c)(2)) is
amended by striking ‘‘ANNUAL APPLICATION FOR CER-
TIFICATE OF COMPLIANCE.—The Corporation shall apply
at least annually to the Nuclear Regulatory Commission
for a certificate of compliance under paragraph (1).’’ and
inserting ‘‘PERIODIC APPLICATION FOR CERTIFICATE OF
COMPLIANCE.—The Corporation shall apply to the Nu-
clear Regulatory Commission for a certificate of compli-
ance under paragraph (1) periodically, as determined by
the Nuclear Regulatory Commission, but not less than
every 5 years.’’.
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SEC. 3042. LICENSING OF OTHER TECHNOLOGIES.
Subsection (a) of section 1702 (42 U.S.C. 2297f–
1(a)) is amended by striking ‘‘other than’’ and inserting
‘‘including’’.
SEC. 3043. CONFORMING AMENDMENTS.
(a) REPEALS IN ATOMIC ENERGY ACT OF 1954 AS
OF THE PRIVATIZATION DATE.—
(1) REPEALS.—As of the privatization date (as
defined in section 1201(13) of the Atomic Energy
Act of 1954), the following sections (as in effect on
such privatization date) of the Atomic Energy Act of
1954 are repealed:
(A) Section 1202.
(B) Sections 1301 through 1304.
(C) Sections 1306 through 1316.
(D) Sections 1404 and 1405.
(E) Section 1601.
(F) Sections 1603 through 1607.
(2) CONFORMING AMENDMENT.—The table of
contents of such Act is amended by repealing the
items referring to sections repealed by paragraph
(1).
(b) STATUTORY MODIFICATIONS.—As of such privat-
ization date, the following shall take effect:
(1) For purposes of title I of the Atomic En-
ergy Act of 1954, all references in such Act to the
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‘‘United States Enrichment Corporation’’ shall be
deemed to be references to the corporation estab-
lished pursuant to section 1503 of the Atomic En-
ergy Act of 1954 (as added by section 3036(a)).
(2) Section 1018(1) of the Energy Policy Act of
1992 (42 U.S.C. 2296b–7(1)) is amended by strik-
ing ‘‘the United States’’ and all that follows through
the period and inserting ‘‘the corporation referred to
in section 1201(4) of the Atomic Energy Act of
1954.’’.
(3) Section 9101(3) of title 31, United States
Code, is amended by striking subparagraph (N), as
added by section 902(b) of Public Law 102–486.
(c) REVISION OF SECTION 1305.—As of such privat-
ization date, section 1305 of the Atomic Energy Act of
1954 (42 U.S.C 2297b–4) is amended—
(1) by repealing subsections (a), (b), (c), and
(d), and
(2) in subsection (e)—
(A) by striking the subsection designation
and heading,
(B) by redesignating paragraph (1) (as
added by section 3038(a)) as subsection (a),
striking ‘‘IN GENERAL.—’’ and inserting ‘‘IN
GENERAL.—’’, redesignating subparagraphs (A)
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through (E) as paragraphs (1) through (5) (re-
designating in such paragraph, clauses (i)
through (iii) as subparagraphs (A) through
(C)), striking ‘‘clauses (i) through (iii)’’ in
paragraph (5) and inserting ‘‘subparagraphs
(A) through (C)’’, and by moving the margins
2-ems to the left,
(C) by striking paragraph (3), and
(D) by redesignating paragraph (4) (as
amended by section 3038(b)) as subsection (b),
and by moving the margins 2-ems to the left.
Subtitle D—Waste Isolation Pilot
Project
SEC. 3045. SHORT TITLE AND REFERENCE.
(a) SHORT TITLE.—This subtitle may be cited as the
‘‘Waste Isolation Pilot Plant Land Withdrawal Amend-
ment Act’’.
(b) REFERENCE.—Except as otherwise expressly pro-
vided, whenever in this subtitle an amendment or repeal
is expressed in terms of an amendment to, or repeal of,
a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the
Waste Isolation Pilot Plant Land Withdrawal Act (Public
Law 102–579).
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SEC. 3046. DEFINITIONS.
Paragraphs (18) and (19) of section 2 are repealed.
SEC. 3047. TEST PHASE AND RETRIEVAL PLANS.
Section 5 is repealed.
SEC. 3048. TEST PHASE ACTIVITIES.
Section 6 is amended—
(1) by repealing subsections (a) and (b),
(2) by repealing paragraph (1) of subsection
(c),
(3) by repealing subparagraph (A) of paragraph
(2) of subsection (c),
(4) by redesignating subsection (c) as sub-
section (a), by striking the subsection heading and
the matter before paragraph (1) and inserting
‘‘STUDY.—The following study shall be conducted:’’,
by striking ‘‘(2) REMOTE-HANDLED WASTE.—’’, by
striking ‘‘(B) STUDY.—’’, and by redesignating
clauses (i), (ii), and (iii) as paragraphs (1), (2), and
(3), respectively, and moving them 4-ems to the left,
and
(5) by redesignating subsection (d) as sub-
section (b).
SEC. 3049. DISPOSAL OPERATIONS.
Section 7(b) is repealed.
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SEC. 3050. ENVIRONMENTAL PROTECTION AGENCY DIS-
POSAL REGULATIONS.
(a) SECTION 8(d)(1).—Section 8(d)(1) is amended by
striking subparagraphs (B), (C), and (D) and by adding
after subparagraph (A) the following:
‘‘(B) COMMENTS
OF
ADMINISTRATOR.—
Within 2 months of receipt of the application
under subparagraph (A), the Administrator
shall provide the Secretary with any comments
on the Secretary’s application. Within one
month of the receipt of such comments, the
Secretary shall, to the extent practicable, incor-
porate the Administrator’s comments in the
Secretary’s application. The comments of the
Administrator provided to the Secretary should
also be transmitted to the appropriate commit-
tees of jurisdiction in the House of Representa-
tives and the Senate.’’.
(b) SECTION 8(d) (2), (3).—Section 8(d) is amended
by striking paragraphs (2) and (3), by striking ‘‘(1) COM-
PLIANCE WITH DISPOSAL REGULATIONS.—’’, and by re-
designating subparagraphs (A) and (B) of paragraph (1),
as amended by subsection (a), as paragraphs (1) and (2),
respectively, and moving them 2-ems to the left.
(c) SECTION 8(f).—Subsection (f) of section 8 is
amended—
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(1) by amending the subsection heading to read
‘‘PERIODIC REVIEW’’, and
(2) by amending paragraph (2) to read as fol-
lows:
‘‘(2) REVIEW
BY
THE
ADMINISTRATOR.—The
Administrator shall, not later than 6 months after
receiving a submission under paragraph (1), com-
ment on whether or not the WIPP facility continues
to be in compliance with the final disposition regula-
tions.’’.
(d) SECTION 8(g).—Section 8(g) is amended to read
as follows:
‘‘(g) ENGINEERED AND NATURAL BARRIERS, ETC.—
The Secretary should determine whether or not engineered
barriers or natural barriers, or both, will be required at
WIPP consistent with regulations published as part 191
of 40 C.F.R.’’.
SEC. 3051. COMPLIANCE WITH ENVIRONMENTAL LAWS AND
REGULATIONS.
(a) SECTION 9(a)(1).—Section 9(a)(1) is amended by
adding after and below subparagraph (H) the following:
‘‘With respect to transuranic mixed waste designated
by the Secretary for disposal at WIPP, such waste
is exempt from the land disposal restrictions pub-
lished at part 268 of 40 C.F.R. because compliance
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with the environmental radiation protection stand-
ards published at part 191 of 40 C.F.R. renders
compliance with the land disposal restrictions unnec-
essary to achieve desired environmental protection
and a no migration variance is not required for dis-
posal of transuranic mixed waste at WIPP.’’.
(b) SECTION 9(b).—Subsection (b) of section 9 is re-
pealed.
(c) SECTIONS 9(c), (d).—Subsections (c) and (d) of
section 9 are repealed.
SEC. 3052. RETRIEVABILITY.
Section 10 is amended to read as follows:
‘‘SEC. 10. TRANSURANIC WASTE.
‘‘It is the intent of Congress that a decision will be
made by the Secretary with respect to the disposal of
transuranic waste no later than March 31, 1997.’’.
SEC. 3053. DECOMMISSIONING OF WIPP.
Section 13 is amended—
(1) by repealing subsection (a), and
(2) in subsection (b), by striking ‘‘(b) MANAGE-
MENT PLAN FOR THE WITHDRAWAL AFTER DECOM-
MISSIONING.—Within 5 years after the date of the
enactment of this Act, the’’ and inserting ‘‘The’’.
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SEC. 3054. ECONOMIC ASSISTANCE AND MISCELLANEOUS
PAYMENTS.
Section 15(a) is amended—
(1) by striking ‘‘to the Secretary for payments
to the State $20,000,000 for each of the 15 fiscal
years beginning with the fiscal year in which the
transport of transuranic waste to WIPP is initiated’’
and inserting ‘‘to the State $20,000,000 for each of
the 15 fiscal years beginning with the date of the en-
actment of the Waste Isolation Pilot Plant Land
Withdrawal Amendment Act’’, and
(2) by adding at the end the following: ‘‘An ap-
propriation to the State shall be in addition to any
appropriation for WIPP.’’.
SEC. 3055. NON-DEFENSE WASTE.
Section 7(a) is amended by redesignating paragraph
(3) as paragraph (4) and by inserting after paragraph (2)
the following:
‘‘(3) NONDEFENSE WASTE.—Within the capac-
ity prescribed by paragraph (4), WIPP may receive
transuranic waste from the Secretary which did not
result from a defense activity.’’.
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Subtitle E—Strategic Petroleum
Reserve
SEC. 3071. LEASE OF EXCESS STRATEGIC PETROLEUM RE-
SERVE CAPACITY.
(a) AMENDMENT.—Part B of title I of the Energy
Policy and Conservation Act (42 U.S.C. 151 et seq.) is
amended by adding at the end the following new section:
‘‘USE OF UNDERUTILIZED FACILITIES
‘‘SEC. 168. (a) AUTHORITY.—Notwithstanding any
other provision of this title, the Secretary, by lease or oth-
erwise, for any term and under such other conditions as
the Secretary considers necessary or appropriate, may
store in underutilized Strategic Petroleum Reserve facili-
ties petroleum product owned by a foreign government or
its representative.
‘‘(b) CONDITIONS OF WITHDRAWAL.—The lessee or
occupier of facilities under subsection (a) may not with-
draw petroleum product from those facilities more fre-
quently than once every 5 years, unless an earlier
drawdown is required to comply with the terms of the
International Energy Agreement or to respond to a na-
tional energy emergency involving the disruption of more
than 5 percent of the lessee’s or occupier’s imports.
‘‘(c) PRIORITY ACCESS.—When a drawdown of the
reserve is ordered pursuant to section 161, the United
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States shall have priority access, over a lessee or occupier
of facilities under subsection (a), to distribution facilities,
including pipelines and terminals.
‘‘(d) STATUS OF STORED PETROLEUM PRODUCT.—
Petroleum product stored under this section is not part
of the Reserve, and may be exported from the United
States.’’.
(b) TABLE OF CONTENTS AMENDMENT.—The table
of contents of part B of title I of the Energy Policy and
Conservation Act is amended by adding at the end the
following new item:
‘‘Sec. 168. Use of underutilized facilities.’’.
Subtitle F—FDA Export Reform
and Enhancement Act
SEC. 3081. SHORT TITLE.
This Act may be cited as the ‘‘FDA Export Reform
and Enhancement Act of 1995’’.
SEC. 3082. EXPORT OF NEW DRUGS.
Section 801(e) of the Federal Food, Drug, and Cos-
metic Act (21 U.S.C. 381(e)) is amended—
(1) in paragraph (1), by inserting after ‘‘under
this Act’’ the following: ‘‘or in violation of section
505 or section 351 of the Public Health Service
Act’’,
(2) in paragraph (1), by striking the last sen-
tence, and
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(3) by amending paragraph (2) to read as fol-
lows:
‘‘(2) Paragraph (1) does not apply to the export of—
‘‘(A) any device—
‘‘(i) which does not comply with an appli-
cable requirement under section 514 or 515,
‘‘(ii) which under section 520(g) is exempt
from either such section, or
‘‘(iii) which is a banned device under sec-
tion 516, or
‘‘(B) any drug (including a biological product)
which does not comply with an applicable require-
ment under section 505 or 512 or section 351 of the
Public Health Service Act,
unless the device or drug is in compliance with the require-
ments of paragraph (1) and if the device or drug is to
be exported to a country which is not a member of the
World Trade Organization, the person exporting it has no-
tified the Secretary of the export at least 30 days before
the export and has included in such notice the name of
the product, the country to which the product is being ex-
ported, and a brief description of the medical need for
such device or drug in such country. In the case of a device
or drug for which an export notice is required under this
paragraph, the Secretary may prohibit the export of such
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device or drug if the Secretary determines that the possi-
bility of the reimportation of the device or drug into the
United States presents an imminent hazard to the public
health and safety of the United States and the only means
of limiting the hazard is to prohibit the export of the de-
vice or drug.’’.
SEC. 3083. EXPORT OF CERTAIN UNAPPROVED PRODUCTS.
Section 802 (21 U.S.C. 382) is repealed.
SEC. 3084. PARTIALLY PROCESSED BIOLOGICAL PROD-
UCTS.
Subsection (h) of section 351 of the Public Health
Service Act (42 U.S.C. 262) is amended to read as follows:
‘‘(h) A partially-processed biological product which—
‘‘(1) is not in a form applicable to the preven-
tion, treatment, or cure of diseases or injuries of
man,
‘‘(2) is not intended for sale in the United
States, and
‘‘(3) is intended for further manufacture into
final dosage form outside the United States,
shall be subject to no restriction on its export under this
Act or the Federal, Food, Drug, and Cosmetic Act (21
U.S.C. 321 et seq.).’’
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TITLE IV—COMMITTEE ON ECO-
NOMIC 
AND 
EDUCATIONAL
OPPORTUNITIES
SEC. 4000. TABLE OF CONTENTS.
The table of contents for this title is as follows:
TITLE IV—ECONOMIC AND EDUCATIONAL OPPORTUNITIES
Subtitle A—Higher Education
Sec. 4001. Short title; effective date.
Sec. 4002. Termination of direct lending.
Sec. 4003. Elimination of grace period interest subsidies.
Sec. 4004. Plus program reductions.
Sec. 4005. Loan transfer fee.
Sec. 4006. Lender fees to guaranty agencies.
Sec. 4007. Additional loan program changes.
Sec. 4008. Use of reserve funds to purchase defaulted loans.
Sec. 4009. Extension of period a guaranty agency must hold a defaulted loan.
Sec. 4010. Privatization of College Construction Loan Insurance Association.
Sec. 4011. Eligible institution.
Sec. 4012. Extension of program duration.
Subtitle B—Service Contract Repeal
Sec. 4101. Service Contract Act of 1965.
Subtitle C—Provisions Relating to the Employee Retirement Income Security
Act of 1974
Sec. 4201. Waiver of minimum period for joint and survivor annuity expla-
nation before annuity starting date.
Subtitle A—Higher Education
SEC. 4001. SHORT TITLE; EFFECTIVE DATE.
(a) SHORT TITLE.—This subtitle may be cited as the
‘‘Higher Education Program Efficiency Act of 1995’’.
(b) EFFECTIVE DATE.—Except as otherwise provided
therein, the amendments made by this subtitle shall take
effect on January 1, 1996.
SEC. 4002. TERMINATION OF DIRECT LENDING.
(a) TERMINATION OF AUTHORITY.—
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(1) PROGRAM AUTHORITY.—Section 451(a) of
the Higher Education Act of 1965 (20 U.S.C.
1087a(a)) is amended by inserting ‘‘and ending
June 30, 1996’’ after ‘‘period beginning July 1,
1994’’.
(2) TERMINATION OF FUNDING.—Section 452
of such Act (20 U.S.C. 1087b) is amended by add-
ing at the end the following new subsection:
‘‘(e) TERMINATION
OF FUNDING.—The Secretary
shall not provide funds under this section for loans for
any academic year beginning on or after July 1, 1996.
The Secretary shall not pay any fees pursuant to sub-
section (b) of this section on or after January 1, 1996.’’.
(3) TERMINATION
OF
AUTHORITY
TO
ENTER
NEW AGREEMENTS.—Section 453(a) of such Act (20
U.S.C. 1087c(a)) is amended—
(A) in paragraph (1), by inserting ‘‘and
ending before July 1, 1996’’ after ‘‘academic
years beginning on or after July 1, 1994’’;
(B) in paragraph (2)—
(i) by inserting ‘‘and’’ after the semi-
colon at the end of subparagraph (A);
(ii) by striking the semicolon at the
end of subparagraph (B) and inserting a
period; and
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(iii) by striking subparagraphs (C)
and (D); and
(C) by striking paragraph (3) and redesig-
nating paragraph (4) as paragraph (3).
(b) ADMINISTRATIVE COST AMENDMENTS.—Section
458 of such Act (20 U.S.C. 1087h) of such Act is amend-
ed—
(1) by striking subsection (d);
(2) by redesignating subsections (b) and (c) as
subsections (f) and (g), respectively; and
(3) by striking subsection (a) and inserting the
following:
‘‘(a) IN GENERAL.—
‘‘(1) DIRECT
ADMINISTRATIVE
COSTS.—Each
fiscal year there shall be available to the Secretary
of Education, from funds not otherwise appro-
priated, funds to be obligated for the subsidy costs
of direct administrative costs under this part, sub-
ject to subsection (b) of this section.
‘‘(2) INDIRECT ADMINISTRATIVE COSTS.—There
shall also be available from funds available from
funds not otherwise appropriated, funds to be obli-
gated for indirect administrative costs under this
part and part B, subject to subsection (c) of this
section, not to exceed (from such funds not other-
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wise appropriated) $260,000,000 in fiscal year
1994, 
$345,000,000 
in 
fiscal 
year 
1995,
$110,000,000 in fiscal year 1996 (of which
$40,000,000 shall be available for administrative
cost allowances for guaranty agencies for October
through December of 1995), and $70,000,000 in
each of the fiscal years 1997 through 2002.
‘‘(3) REDUCTION.—The amount authorized to
be made available for fiscal year 1997 under para-
graph (2) shall be reduced by the amount of any un-
obligated unexpended funds available to carry out
this subsection for any fiscal year prior to fiscal year
1996.
‘‘(b) SUBSIDY COSTS.—For purposes of this section,
‘subsidy cost’ means the estimated long-term cost to the
Federal Government of direct administrative expenses cal-
culated on a net present value basis.
‘‘(c) DIRECT ADMINISTRATIVE EXPENSES.—For pur-
poses of this section, ‘direct administrative expenses’ shall
consist of the cost of—
‘‘(1) activities related to credit extension, loan
origination, loan servicing, management of contrac-
tors, and payments to contractors, other government
entities, and program participants;
‘‘(2) collection of delinquent loans; and
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‘‘(3) write-off and closeout of loans.
‘‘(d) INDIRECT ADMINISTRATIVE EXPENSES.—For
purposes of this section, ‘indirect administrative expenses’
shall consist of the cost of—
‘‘(1) personnel engaged in developing program
regulations, policy, and administrative guidelines;
‘‘(2) audits of institutions and contractors;
‘‘(3) program reviews; and
‘‘(4) other oversight of the program.
‘‘(e) LIMITATION ON PART D EXPENDITURES.—For
any fiscal year, expenditures for indirect administrative
expenses and for loan servicing for loans made pursuant
to this part shall not exceed 30 percent of funds available
pursuant to paragraph (2) for such fiscal year.’’.
(c) ELIMINATION
OF
TRANSITION
TO
DIRECT
LOANS.—Such Act is further amended—
(1) 
in 
section 
422(c)(7) 
(20 
U.S.C.
1072(c)(7))—
(A) by striking ‘‘during the transition’’ and
all that follows through ‘‘part D of this title’’
in subparagraph (A); and
(B) by striking ‘‘section 428(c)(10)(F)(v)’’
in subparagraph (B) and inserting ‘‘section
428(c)(9)(F)(v)’’;
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(2) in section 428(c)(8) (20 U.S.C. 1078(c)(8)),
by striking subparagraph (B) and inserting the fol-
lowing:
‘‘(B) Prior to making such determination for
any guaranty agency, the Secretary shall, in con-
sultation with the guaranty agency, develop criteria
to determine whether such guaranty agency has
made adequate collection efforts. In determining
whether a guaranty agency’s collection efforts have
met such criteria, the Secretary shall consider the
agency’s record of success in collecting on defaulted
loans, the age of the loans, and the amount of recent
payments received on the loans.’’;
(3) in section 428(c)(9)(E)—
(A) by inserting ‘‘or’’ after the semicolon
at the end of clause (iv);
(B) by striking ‘‘; or’’ at the end of clause
(v) and inserting a period; and
(C) by striking clause (vi);
(4) in clause (vii) of section 428(c)(9)(F)—
(A) by inserting ‘‘and’’ before ‘‘to avoid
disruption’’; and
(B) by striking ‘‘, and to ensure an orderly
transition’’ and all that follows through the end
of such clause and inserting a period;
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(5) in section 428(c)(9)(K), by striking ‘‘the
progress of the transition from the loan programs
under this part to’’ and inserting ‘‘the integrity and
administration of’’;
(6) in section 428(e)(1)(B)(ii), by striking
‘‘during the transition’’ and all that follows through
‘‘part D of this title’’;
(7) in section 428(e)(3), by striking ‘‘of transi-
tion’’;
(8) in section 428(j)(3)—
(A) by striking ‘‘DURING TRANSITION TO
DIRECT LENDING’’; and
(B) by striking ‘‘during the transition’’
and all that follows through ‘‘part D of this
title,’’ in subparagraph (A) and inserting a
comma;
(9) 
in 
section 
453(c)(2) 
(20 
U.S.C.
1087c(c)(2)), by striking ‘‘TRANSITION’’ and insert-
ing ‘‘INSTITUTIONAL’’;
(10) in section 453(c), by striking paragraph
(3); and
(11) in section 456(b) (20 U.S.C. 1087f(b))—
(A) by inserting ‘‘and’’ after the semicolon
at the end of paragraph (3);
(B) by striking paragraph (4);
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(C) by redesignating paragraph (5) as
paragraph (4); and
(D) in such paragraph (4) (as redesig-
nated), by striking ‘‘successful operation’’ and
inserting ‘‘integrity and efficiency’’.
(d) ADDITIONAL CONFORMING AMENDMENTS.—
(1) ABILITY OF PART D BORROWERS TO OBTAIN
FEDERAL STAFFORD CONSOLIDATION LOANS.—Sec-
tion 428C(a)(4) of such Act (20 U.S.C. 1078–
3(a)(4)) is amended—
(A) by redesignating subparagraphs (C)
and (D) as subparagraphs (D) and (E); and
(B) by inserting after subparagraph (B)
the following new subparagraph:
‘‘(C) made under part D of this title;’’.
(2) 
CONFORMING
AMENDMENTS.—Section
428C(b) of such Act (20 U.S.C. 1078–3(b)) is
amended by striking paragraph (5).
SEC. 4003. ELIMINATION OF GRACE PERIOD INTEREST SUB-
SIDIES.
Section 428(a)(3) of the Higher Education Act of
1965 (20 U.S.C. 1078(a)(3)) is amended by adding at the
end the following new subparagraph:
‘‘(C) Notwithstanding subparagraph (A), no
portion of the interest which accrues after the stu-
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dent ceases to carry at an eligible institution at least
one-half the normal full-time academic workload (as
determined by the institution) and prior to the be-
ginning of the repayment period of the loan shall be
paid by the Secretary under this subsection on any
loan made on or after January 1, 1996. Interest on
the unpaid principal amount of any such loan during
the interval described in the preceding sentence
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.’’.
SEC. 4004. PLUS PROGRAM REDUCTIONS.
(a) LOAN LIMITS.—Section 428B(b) of the Higher
Education Act of 1965 (20 U.S.C. 1078-2(b)) is amend-
ed—
(1) by striking ‘‘(b) LIMITATION BASED
ON
NEED.—’’ and inserting the following:
‘‘(b) ANNUAL LIMITS.—
‘‘(1) LIMITATION BASED ON NEED.—’’;
(2) by inserting before the last sentence thereof
the following:
‘‘(3) LIMITATION COMPUTED ON BASIS OF AC-
TUAL PAYMENTS.—’’; and
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(3) by inserting before paragraph (3) (as des-
ignated by the amendment made by paragraph (2)
of this subsection) the following new paragraph:
‘‘(2) DOLLAR
LIMITATION.—Subject to para-
graph (1), the maximum amount parents may bor-
row for one student in any academic year or its
equivalent (as defined by regulations of the Sec-
retary) is $15,000.’’.
(b) INTEREST REBATE.—Section 428B of such Act
is further amended by adding at the end the following new
subsection:
‘‘(f) INTEREST REBATE.—
‘‘(1) REBATE
REQUIRED.—Each holder of a
loan under this section made on or after the date of
enactment of this subsection, shall pay, on June 30
and December 31 of each year, to the Secretary a
rebate of subsidies in an amount equal to 0.8 per-
cent of the outstanding principal balance of loans
held on such date. Payment of such rebate shall be
made not later than 60 days after each such date.
‘‘(2) DEPOSIT
OF
REBATES.—The Secretary
shall deposit all fees collected pursuant to paragraph
(1) into the insurance fund established in section
431.’’.
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(c) 
PLUS
LOANS
INTEREST
RATES.—Section
427A(c)(4) of such Act (20 U.S.C. 1077a(c)(4)) is amend-
ed by adding at the end the following new subparagraph:
‘‘(F) Notwithstanding subparagraphs (A), (D),
and (E), for any loan made pursuant to section
428B for which the first disbursement is made on or
after January 1, 1996—
‘‘(i) subparagraph (B) shall be applied by
substituting ‘4.0’ for ‘3.25’; and
‘‘(ii) the interest rate shall not exceed 11
percent.’’.
(d) CONFORMING AMENDMENT.—Section 427A(h) of
such Act (20 U.S.C. 1077a(h)) is amended—
(1) by striking paragraph (2); and
(2) by redesignating paragraph (3) as para-
graph (2).
SEC. 4005. LOAN TRANSFER FEE.
Section 428(b)(2) of the Higher Education Act of
1965 (20 U.S.C. 1078(b)(2)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (E);
(2) by striking the period at the end of sub-
paragraph (F) and inserting ‘‘; and’’; and
(3) by adding at the end thereof the following
new subparagraph:
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‘‘(G) provide that, if a lender or holder, on
or after January 1, 1996, sells, transfers, or as-
signs a loan under this part, then the transferee
shall pay to the Secretary a transfer fee in an
amount equal to 0.20 percent of the principal
of the loan, which transfer fee shall be depos-
ited into the insurance fund established in sec-
tion 431, except that the provisions of this sub-
paragraph shall not apply to any such sale,
transfer, or assignment by a lender or holder to
such lender’s or holder’s affiliate or pursuant to
a merger or other consolidation transaction.’’.
SEC. 4006. LENDER FEES TO GUARANTY AGENCIES.
Subsection (f) of section 428 of the Higher Education
Act of 1965 (20 U.S.C. 1078(f)) is amended to read as
follows:
‘‘(f) PAYMENTS OF CERTAIN COSTS.—
‘‘(1) PAYMENTS FROM LENDERS.—With respect
to any loan under this part for which the first dis-
bursement is made on or after January 1, 1996, the
originating lender shall remit to the guaranty agency
which guarantees the loan, a fee equal to 0.70 per-
cent of the principal amount of the loan.
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‘‘(2) USE OF PAYMENTS.—Payments made pur-
suant to paragraph (1) shall be used for the pur-
poses of—
‘‘(A) the administrative costs of collections
of loans;
‘‘(B) the administrative costs of preclaim
assistance and other predefault activities;
‘‘(C) the administrative costs of monitoring
the enrollment and repayment status of stu-
dents; and
‘‘(D) other such costs related to the stu-
dent loan insurance program.
‘‘(3) TIMING OF PAYMENTS.—Payments made
pursuant to paragraph (1) shall be made at the time
insurance premiums on such loans are paid to the
guaranty agency.
‘‘(4) PROHIBITION
ON
PASS-THROUGH.—No
part of any payments required by this section shall
be assessed or collected, directly or indirectly, from
any borrower under this part.’’.
SEC. 4007. ADDITIONAL LOAN PROGRAM CHANGES.
(a) RESERVE FUNDS.—
(1) AMENDMENTS
TO
SECTION
422.—Section
422 of the Higher Education Act of 1965 (20
U.S.C. 1072) is amended—
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(A) in the last sentence of subsection
(a)(2), by striking ‘‘Except as provided in sec-
tion 428(c)(10)(E) or (F), such unencumbered’’
and inserting ‘‘Such’’;
(B) in subsection (g)(1), by striking ‘‘or
the program authorized by part D of this title’’
each place it appears;
(C) in subsection (g)(1)(D), by striking
‘‘(A) or (B)’’ and inserting ‘‘(A), (B), or (C)’’;
and
(D) in subsection (g), by striking para-
graph (4) and inserting the following:
‘‘(4) DISPOSITION OF FUNDS RETURNED TO OR
RECOVERED BY THE SECRETARY.—Any funds that
are returned to or otherwise recovered by the Sec-
retary pursuant to this subsection shall be returned
to the Treasury of the United States for purposes of
reducing the Federal debt and shall be deposited
into the special account under section 3113(d) of
title 31, United States Code.’’.
(2) AMENDMENTS
TO
SECTION
428.—Section
428(c)(9)(A) of such Act (20 U.S.C. 1078(c)(9)(A))
is amended—
(A) by inserting ‘‘and’’ after the semicolon
at the end of clause (i);
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(B) by striking ‘‘; and’’ at the end of
clause (ii) and inserting a period; and
(C) by striking clause (iii).
(b) APPLICATION FOR PART B LOANS USING FREE
FEDERAL APPLICATION.—
(1) SINGLE FORM REQUIRED.—Section 483(a)
of such Act (20 U.S.C. 1090(a)) is amended—
(A) in paragraph (1)—
(i) by inserting ‘‘B,’’ after ‘‘assistance
under parts A,’’;
(ii) by striking ‘‘and to determine the
need of a student for the purpose of part
B of this title’’; and
(iii) by striking the last sentence and
inserting the following: ‘‘Such form may be
in an electronic or any other format (sub-
ject to section 485B) in order to facilitate
use by borrowers and institutions.’’; and
(B) in paragraph (3), by striking ‘‘and
States shall receive,’’ and inserting ‘‘, any guar-
anty agency authorized by any such institution,
and States shall receive, at their request and’’.
(2) USE
OF
ELECTRONIC
FORMS.—Section
483(a) of such Act is further amended by adding the
following new paragraph after paragraph (4):
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‘‘(5) ELECTRONIC FORMS.—(A) The Secretary,
in cooperation with representatives of institutions of
higher education, eligible lenders, and guaranty
agencies, shall prescribe an electronic version of the
form described in subsection (a)(1). Such electronic
form shall not require signatures to be collected at
the time such form is submitted if the data con-
tained in the electronic form is certified in one or
more separate writings. The Secretary shall pre-
scribe the initial electronic form not later than 90
days after the date of enactment of this paragraph.
‘‘(B) Nothing in this Act shall preclude the use
of the electronic form prescribed under subpara-
graph (A) through software developed, produced,
distributed (including by diskette, modem or net-
work communication, or otherwise) or collected by
eligible lenders, guaranty agencies, eligible institu-
tions, or consortia thereof. Such organization or con-
sortium shall submit such electronic form to the Sec-
retary for review prior to its use. If such electronic
form is inconsistent with the provisions of this part,
the Secretary shall notify the submitting organiza-
tion or consortium of his objection within 30 days
of such submission, and shall specifically identify the
necessary changes. In the absence of such an objec-
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tion the organization or consortium may use the
electronic form as submitted. No fee may be charged
in connection with use of the electronic form, or of
any other electronic forms used in conjunction with
such form in applying for Federal or State student
financial assistance.’’.
(c) AMENDMENTS TO ELIGIBLE LENDER DEFINI-
TION.—Section 435(d)(1) of such Act (20 U.S.C. 1085)
is amended—
(1) by inserting before the semicolon at the end
of subparagraph (A) the following: ‘‘; and in deter-
mining whether the making or holding of loans to
students and parents under this part is the primary
consumer credit function of the eligible lender, loans
made or held as trustee or in a trust capacity for
the benefit of a third party shall not be considered’’;
(2) by striking ‘‘and’’ at the end of subpara-
graph (I);
(3) in subparagraph (J), by striking the period
and inserting ‘‘; and’’; and
(4) by adding at the end the following new sub-
paragraph:
‘‘(K) a wholly owned subsidiary of a pub-
licly-held holding company which, as of the date
of enactment of this subparagraph, through one
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or more subsidiaries (i) acts as a finance com-
pany, and (ii) participates in the program au-
thorized by this part pursuant to subparagraph
(C).’’.
(d) ADDITIONAL AMENDMENTS TO SECTION 428.—
(1) AMENDMENTS.—Section 428 of such Act is
further amended—
(A) in subsection (b)(1)(G), by striking
‘‘98 percent’’ and inserting ‘‘95 percent’’;
(B) in subsection (b)(1)(X), by striking
‘‘section 428(c)(10)’’ and inserting ‘‘section
428(c)(9)’’;
(C) in subsection (c)(1)(A), by striking
‘‘98 percent’’ and inserting ‘‘96 percent’’;
(D) in subsection (c)(1)(B)(i), by striking
‘‘88 percent’’ and inserting ‘‘86 percent’’;
(E) in subsection (c)(1)(B)(ii), by striking
‘‘78 percent’’ and inserting ‘‘76 percent’’;
(F) in subsection (c)(9)(C)(ii), by striking
‘‘80 percent’’ and inserting ‘‘76 percent’’;
(G) in subsection (c)(9)(I) by inserting ‘‘on
the record’’ after ‘‘for a hearing’’;
(H) in subsection (j)(2)(A), by striking
‘‘60’’ and inserting ‘‘15’’;
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(I) in subsection (j)(2)(B), by striking
‘‘two rejections’’ and inserting ‘‘one rejection’’;
and
(J) in subsection (l)—
(i) by striking paragraph (2); and
(ii) by striking ‘‘(1) ASSISTANCE RE-
QUIRED.—’’.
(2) EFFECTIVE DATE.—The amendments made
by subparagraphs (A) and (C) through (F) of para-
graph (1) of this subsection shall apply to loans on
which the first disbursement of principal is made on
or after January 1, 1996.
(e) REINSURANCE PERCENTAGE UNDER SECTION
428I.—Section 428I of such Act (20 U.S.C. 1078–9) is
amended in subsection (b)(1)—
(1) by striking ‘‘100 PERCENT’’ in the heading
and inserting ‘‘95 PERCENT’’; and
(2) by striking ‘‘100 percent’’ and inserting ‘‘95
percent’’.
(f) LOAN FEES FROM LENDERS.—Section 438(d)(2)
of such Act (20 U.S.C. 1087–1(d)(2)) is amended to read
as follows:
‘‘(2) AMOUNT OF LOAN FEES.—The amount of
the loan fee which shall be deducted under para-
graph (1) shall be—
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‘‘(A) 0.50 percent of the principal amount
of the loan, for any loan under this part for
which the first disbursement was made on or
after October 1, 1993, and before January 1,
1996; or
‘‘(B) 0.30 percent of the principal amount
of the loan, for any loan under this part for
which the first disbursement was made on or
after January 1, 1996.’’.
(g) SMALL LENDER AUDIT EXEMPTION.—Section
428(b)(1)(U)(iii) 
of 
such 
Act 
(20 
U.S.C.
1078(b)(1)(U)(iii)) is amended—
(1) by inserting ‘‘in the case of any lender that
originates or holds more than $5,000,000 in prin-
cipal on loans made under this title in any fiscal
year,’’ before ‘‘for (I)’’;
(2) by inserting ‘‘such’’ before ‘‘lender at least
once’’;
(3) by inserting ‘‘such’’ before ‘‘a lender that is
audited’’; and
(4) by striking ‘‘if the lender’’ and inserting ‘‘if
such lender’’.
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SEC. 4008. USE OF RESERVE FUNDS TO PURCHASE DE-
FAULTED LOANS.
Section 422 of the Higher Education Act of 1965 (20
U.S.C. 1072) is amended by adding at the end the follow-
ing new subsection:
‘‘(h) USE OF RESERVE FUNDS TO PURCHASE DE-
FAULTED LOANS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), a guaranty agency shall use not less than
50 percent of such agency’s reserve funds to pur-
chase and hold defaulted loans that are guaranteed
by such agency and for which a claim for insurance
is filed with such agency by an eligible lender after
the date of enactment of this subsection. The
amount of such purchases shall be considered as re-
serve funds under this section and used in the cal-
culation of the minimum reserve level under section
428(c)(9).
‘‘(2) SPECIAL RULE.—A guaranty agency shall
not be required to use its reserve funds to purchase
and hold defaulted loans in accordance with para-
graph (1) to the extent that—
‘‘(A) the dollar volume of insurance claims
filed with such agency does not amount to 50
percent of such agency’s available reserve
funds; or
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‘‘(B) such use is prohibited by State law;
or
‘‘(C) such use will compromise the ability
of the guaranty agency to pay program ex-
penses.’’.
SEC. 4009. EXTENSION OF PERIOD A GUARANTY AGENCY
MUST HOLD A DEFAULTED LOAN.
(a) EXEMPTION
FOR
EXTENDED
HOLDING
PE-
RIOD.—The last sentence of section 428(c)(1)(A) of the
Higher Education Act of 1965 (20 U.S.C. 1078(c)(1)(A))
is amended by striking out ‘‘A guaranty agency’’ and in-
serting ‘‘Except as provided in section 428K, a guaranty
agency’’.
(b) NEW EXTENDED HOLDING PERIOD PROGRAM.—
Part B of title IV of such Act (20 U.S.C. 1071 et seq.)
is amended by inserting after section 428J the following
new section:
‘‘SEC. 428K. GUARANTOR PURCHASE OF CLAIMS WITH RE-
SERVE FUNDS.
‘‘(a) LOANS SUBJECT TO EXTENDED HOLDING PE-
RIOD.—Except as provided in subsection (b), a guaranty
agency shall file a claim for reimbursement with respect
to losses (resulting from the default of a student borrower)
subject to reimbursement by the Secretary pursuant to
section 428(c)(1) not less than 180 days nor more than
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225 days after the guaranty agency discharges such agen-
cy’s insurance obligation on a loan insured under this
part. Such claim shall include losses on the unpaid prin-
cipal and accrued interest of any such loan, including in-
terest accrued from the date of such discharge to the date
such agency files the claim for reimbursement from the
Secretary.
‘‘(b) LOANS EXCLUDED FROM EXTENDED HOLD-
ING.—A guaranty agency may file a claim with respect
to losses subject to reimbursement by the Secretary pursu-
ant to section 428(c)(1) prior to 180 days after the date
the guaranty agency discharges such agency’s insurance
obligation on a loan insured under this part, if—
‘‘(1) such agency used 50 percent or more of
such agency’s reserve funds to purchase or hold
loans in accordance with section 422(h);
‘‘(2) such claim is based on an inability to lo-
cate the borrower and the guaranty agency certifies
to the Secretary that—
‘‘(A) diligent attempts were made to locate
the borrower through the use of reasonable
skip-tracing techniques in accordance with sec-
tion 428(c)(2)(G); and
‘‘(B) such skip-tracing attempts to locate
the borrower were unsuccessful; or
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‘‘(3) the guaranty agency determines that the
borrower is unlikely to possess the financial re-
sources to begin repaying the loan prior to 180 days
after default by the borrower.
‘‘(c) GUARANTY AGENCY EFFORTS DURING EX-
TENDED HOLDING PERIOD.—A guaranty agency shall at-
tempt to bring a loan described in subsection (a) into re-
payment status prior to 180 days after the date the guar-
anty agency discharges its insurance obligation on the
loan, so that no claim for reimbursement by the Secretary
is necessary. Upon securing payment satisfactory to the
guaranty agency during the 180-day period, such agency
shall, if practicable, sell such loan to an eligible lender.
Such loan shall not be sold to an eligible lender that the
guaranty agency determines has substantially failed to ex-
ercise the due diligence required of lenders under this
part.
‘‘(d) REGULATION
PROHIBITED.—The Secretary
shall not regulate the collection activities of a guaranty
agency with respect to a loan described in subsection (a)
for which reinsurance has not been paid under section
428(c)(1).’’.
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SEC. 4010. PRIVATIZATION OF COLLEGE CONSTRUCTION
LOAN INSURANCE ASSOCIATION.
(a) REPEAL OF STATUTORY RESTRICTIONS.—Part D
of title VII of the Higher Education Act of 1965 (20
U.S.C. 1132f et seq.) is repealed.
(b) STATUS OF THE CORPORATION.—
(1) STATUS OF THE CORPORATION.—The Cor-
poration shall not be an agency, instrumentality, or
establishment of the United States Government and
shall not be a ‘‘Government corporation’’ nor a
‘‘Government controlled corporation’’ as defined in
section 103 of title 5, United States Code. No action
under section 1491 of title 28, United States Code
(commonly known as the Tucker Act), shall be al-
lowable against the United States based on the ac-
tions of the Corporation.
(2) CORPORATE
POWERS.—The Corporation
shall have the power to engage in any business or
other activities for which corporations may be orga-
nized under the laws of any State of the United
States or the District of Columbia. The Corporation
shall have the power to enter into contracts, to exe-
cute instruments, to incur liabilities, to provide prod-
ucts and services, and to do all things as are nec-
essary or incidental to the proper management of its
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affairs and the efficient operation of a private, for-
profit business.
(3) LIMITATION ON OWNERSHIP OF STOCK.—
Except as provided in subsection (d)(2) of this sec-
tion, no stock of the Corporation may be sold or is-
sued to an agency, instrumentality, or establishment
of the United States Government, to a Government
corporation or a Government controlled corporation
(as such terms are defined in section 103 of title 5,
United States Code), or to a Government sponsored
enterprise (as such term is defined in section 622 of
title 2, United States Code). The Student Loan
Marketing Association shall not own any stock of
the Corporation, except that it may retain the stock
it owns on the date of enactment. The Student Loan
Marketing Association shall not control the oper-
ation of the Corporation, except that the Student
Loan Marketing Association may participate in the
election of directors as a shareholder, and may con-
tinue to exercise its right to appoint directors under
section 754 of the Higher Education Act of 1965 as
long as that section is in effect. The Student Loan
Marketing Association shall not provide financial
support or guarantees to the Corporation. Notwith-
standing the prohibitions in this subsection, the
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United States may pursue any remedy against a
holder of the Corporation’s stock to which it would
otherwise be entitled.
(c) RELATED PRIVATIZATION REQUIREMENTS.—
(1) NOTICE
REQUIREMENTS.—During the 5-
year period following the date of the enactment of
this Act, the Corporation shall include in any docu-
ment offering the Corporation’s securities, in any
contracts for insurance, guarantee, or reinsurance of
obligations, and in any advertisement or promotional
material, a statement that—
(A) the Corporation is not a Government-
sponsored enterprise or instrumentality of the
United States; and
(B) the Corporation’s obligations are not
guaranteed by the full faith and credit of the
United States.
(2) CORPORATE CHARTER.—The Corporation’s
charter shall be amended as necessary and without
delay to conform the requirements of this Act.
(3) CORPORATE NAME.—The name of the Cor-
poration, or of any direct or indirect subsidiary
thereof, may not contain the term ‘‘College Con-
struction Loan Insurance Association’’.
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(4) ARTICLES OF INCORPORATION.—The Cor-
poration shall amend its articles of incorporation
without delay to reflect that one of the purposes of
the Corporation shall be to guarantee, insure and re-
insure bonds, leases, and other evidences of debt of
educational institutions, including Historically Black
Colleges and Universities and other academic insti-
tutions which are ranked in the lower investment
grade category using a nationally recognized credit
rating system.
(5) TRANSITION REQUIREMENTS.—
(A) REQUIREMENTS UNTIL STOCK SALE.—
Notwithstanding subsection (a), the require-
ments of section 754 of the Higher Education
Act of 1965 (20 U.S.C. 1132f–3), as in exist-
ence as of the day before enactment of this Act,
shall continue to be effective until the day im-
mediately following the date of closing of the
purchase of the Secretary’s stock (or the date
of closing of the final purchase, in the case of
multiple transactions) pursuant to subsection
(d) of this section.
(B) REPORTS AFTER STOCK SALE.—The
Corporation shall, not later than March 30 of
the first full calendar year immediately follow-
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ing the sale pursuant to subsection (d), and
each of the 2 succeeding years, submit to the
Secretary of Education a report describing the
Corporation’s efforts to assist in the financing
of 
education 
facilities 
projects, 
including
projects for elementary, secondary, and post-
secondary educational institution infrastructure,
and detailing, on a project-by-project basis, the
Corporation’s business dealings with edu-
cational institutions that are rated by a nation-
ally recognized statistical rating organization at
or below the organization’s third highest rat-
ings.
(d) SALE OF FEDERALLY OWNED STOCK.—
(1) SALE OF STOCK REQUIRED.—The Secretary
of the Treasury shall make every effort to sell, pur-
suant to section 324 of title 31, United States Code,
the stock of the Corporation owned by the Secretary
of Education not later than 6 months after the date
of the enactment of this Act.
(2) PURCHASE BY THE CORPORATION.—In the
event that the Secretary of the Treasury is unable
to sell the stock, or any portion thereof, at a price
acceptable to the Secretary of Education and the
Secretary of the Treasury, the Corporation shall
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purchase, within the period specified in paragraph
(1), such stock at a price determined by the Sec-
retary of the Treasury and acceptable to the Cor-
poration based on independent appraisal by one or
more nationally recognized financial firms, except
that such price shall not exceed the value of the Sec-
retary’s stock as determined by the Congressional
Budget Office in House Report 104–153, dated
June 22, 1995. Such firms shall be selected by the
Secretary of the Treasury in consultation with the
Secretary of Education and the Corporation.
(e) ASSISTANCE BY THE CORPORATION.—The Cor-
poration shall provide such assistance as the Secretary of
the Treasury and the Secretary of Education may require
to facilitate the sale of the stock under this section.
(f) DEFINITION.—As used in this section, the term
‘‘Corporation’’ means the Corporation established pursu-
ant to the provision of law repealed by subsection (a).
SEC. 4011. ELIGIBLE INSTITUTION.
(a) AMENDMENTS.—Section 481(b) of the Higher
Education Act of 1965 (20 U.S.C. 1088(b)) is amended—
(1) by inserting before the period at the end of
the first sentence the following: ‘‘on the basis of a
review by the institution’s independent auditor using
generally accepted accounting principles’’; and
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(2) by inserting after the end of such first sen-
tence the following new sentences: ‘‘For the purposes
of clause (6), revenues from sources that are not de-
rived from funds provided under this title include
revenues from programs of education or training
that do not meet the definition of an eligible pro-
gram in subsection (e), but are provided on a con-
tractual basis under Federal, State, or local training
programs, or to business and industry. For the pur-
poses of determining whether an institution meets
the requirements of clause (6), the Secretary shall
not consider the financial information of any institu-
tion for a fiscal year began on or before April 30,
1994.’’.
(b) EFFECTIVE DATE.—Notwithstanding section 713
of this Act, the amendments made by subsection (a) shall
apply to any determination made on or after July 1, 1994,
by the Secretary of Education pursuant to section
481(b)(6) of the Higher Education Act of 1965.
SEC. 4012. EXTENSION OF PROGRAM DURATION.
Part B of title IV of the Higher Education Act of
1965 is amended—
(1) in section 424(a) (20 U.S.C. 1074(a)), by
striking ‘‘1998’’ and inserting ‘‘2002’’;
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(2) 
in 
section 
428(a)(5) 
(20 
U.S.C.
1078(a)(5))—
(A) by striking ‘‘2002’’ and inserting
‘‘2006’’; and
(B) by striking ‘‘1998’’ and inserting
‘‘2002’’; and
(3) in section 428C(e) (20 U.S.C. 1078-3(e)),
by striking the first sentence and inserting ‘‘The au-
thority to make loans under this section expires at
the close of September 30, 2002.’’.
Subtitle B—Service Contract
Repeal
SEC. 4101. SERVICE CONTRACT ACT OF 1965.
(a) REPEAL.—The Service Contract Act of 1965 (41
U.S.C. 351 et seq.) is repealed.
(b) APPLICATION.—The amendment made by sub-
section (a) shall not apply to a contract which was entered
into before the 45th day after the date of the enactment
of this Act and to which the Service Contract Act of 1965
applied.
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Subtitle C—Provisions Relating to
the Employee Retirement In-
come Security Act of 1974
SEC. 4201. WAIVER OF MINIMUM PERIOD FOR JOINT AND
SURVIVOR ANNUITY EXPLANATION BEFORE
ANNUITY STARTING DATE.
(a) GENERAL
RULE.—For purposes of section
205(c)(3)(A) of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1055(c)(3)(A)), the minimum pe-
riod prescribed by the Secretary of the Treasury between
the date that the explanation referred to in such section
is provided and the annuity starting date shall not apply
if waived by the participant and, if applicable, the partici-
pant’s spouse.
(b) EFFECTIVE DATE.—Subsection (a) shall apply to
plan years beginning after December 31, 1995.
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TITLE V—COMMITTEE ON GOV-
ERNMENT 
REFORM 
AND
OVERSIGHT
Subtitle A—Federal Employee and
Congressional Benefits; Avail-
ability of Surplus Property for
Homeless Assistance
SEC. 5001. EXTENSION OF DELAY IN COST-OF-LIVING AD-
JUSTMENTS IN FEDERAL EMPLOYEE RETIRE-
MENT BENEFITS THROUGH FISCAL YEAR
2002.
Section 11001(a) of the Omnibus Budget Reconcili-
ation Act of 1993 (Public Law 103–66; 107 Stat. 408)
is amended in the matter preceding paragraph (1) by
striking out ‘‘or 1996,’’ and inserting in lieu thereof
‘‘1996, 1997, 1998, 1999, 2000, 2001, or 2002,’’.
SEC. 5002. INCREASED CONTRIBUTIONS TO FEDERAL CI-
VILIAN RETIREMENT SYSTEMS.
(a) CIVIL SERVICE RETIREMENT SYSTEM.—
(1) DEDUCTIONS.—The first sentence of section
8334(a)(1) of title 5, United States Code, is amend-
ed to read as follows: ‘‘The employing agency shall
deduct and withhold from the basic pay of an em-
ployee, Member, Congressional employee, law en-
forcement officer, firefighter, bankruptcy judge,
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judge of the United States Court of Appeals for the
Armed Forces, United States magistrate, Claims
Court judge, or member of the Capitol Police, as the
case may be, the percentage of basic pay applicable
under subsection (c).’’.
(2) AGENCY CONTRIBUTIONS.—
(A) INCREASE IN AGENCY CONTRIBUTIONS
DURING
CALENDAR
YEARS
1996
THROUGH
2002.—Section 8334(a)(1) of title 5, United
States Code (as amended by this section) is fur-
ther amended—
(i) by inserting ‘‘(A)’’ after ‘‘(1)’’; and
(ii) by adding at the end thereof the
following new subparagraph:
‘‘(B)(i) 
Notwithstanding 
subparagraph
(A), the agency contribution under the second
sentence of such subparagraph, during the pe-
riod beginning on January 1, 1996, through
December 31, 2002—
‘‘(I) for each employing agency (other
than the United States Postal Service)
shall be 8.5 percent of the basic pay of an
employee, Congressional employee, and a
Member of Congress, 9 percent of the
basic pay of a law enforcement officer, a
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member of the Capitol Police, and a fire-
fighter, and 9.5 percent of the basic pay of
a Claims Court judge, a United States
magistrate, a judge of the United States
Court of Appeals for the Armed Services,
and a bankruptcy judge, as the case may
be; and
‘‘(II) for the United States Postal
Service shall be 7 percent of the basic pay
of an employee and 9 percent of the basic
pay of a law enforcement officer.’’.
(B) NO REDUCTION IN AGENCY CONTRIBU-
TIONS BY THE POSTAL SERVICE.—Agency con-
tributions by the United States Postal Service
under section 8348(h) of title 5, United States
Code—
(i) shall not be reduced as a result of
the amendments made under paragraph
(3) of this subsection; and
(ii) shall be computed as though such
amendments had not been enacted.
(3) INDIVIDUAL DEDUCTIONS, WITHHOLDINGS,
AND DEPOSITS.—The table under section 8334(c) of
title 5, United States Code, is amended—
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(A) in the matter relating to an employee
by striking out
‘‘7 ........
After December 31,
1969.’’
and inserting in lieu thereof the following:
‘‘7 ........
January 1, 1970, to De-
cember 31, 1995.
7.25 ...
January 1, 1996, to De-
cember 31, 1996.
7.4 .....
January 1, 1997, to De-
cember 31, 1997.
7.5 .....
January 1, 1998, to De-
cember 31, 2002.
7 ........
After December 31,
2002.’’;
(B) in the matter relating to a Member or
employee for Congressional employee service by
striking out
‘‘71⁄2 ....
After December 31,
1969.’’
and inserting in lieu thereof the following:
‘‘7.5 .....
January 1, 1970, to De-
cember 31, 1995.
7.25 ...
January 1, 1996, to De-
cember 31, 1996.
7.4 .....
January 1, 1997, to De-
cember 31, 1997.
7.5 .....
January 1, 1998, to De-
cember 31, 2002.
7 ........
After December 31,
2002.’’;
(C) in the matter relating to a Member for
Member service by striking out
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‘‘8 ........
After December 31,
1969.’’
and inserting in lieu thereof the following:
‘‘8 ........
January 1, 1970, to De-
cember 31, 1995.
7.25 ...
January 1, 1996, to De-
cember 31, 1996.
7.4 .....
January 1, 1997, to De-
cember 31, 1997.
7.5 .....
January 1, 1998, to De-
cember 31, 2002.
7 ........
After December 31,
2002.’’;
(D) in the matter relating to a law enforce-
ment officer for law enforcement service and
firefighter for firefighter service by striking out
‘‘71⁄2 ....
After December 31,
1974.’’
and inserting in lieu thereof the following:
‘‘7.5 .....
January 1, 1975, to De-
cember 31, 1995.
7.75 ...
January 1, 1996, to De-
cember 31, 1996.
7.9 .....
January 1, 1997, to De-
cember 31, 1997.
8 ........
January 1, 1998, to De-
cember 31, 2002.
7.5 .....
After December 31,
2002.’’;
(E) in the matter relating to a bankruptcy
judge by striking out
‘‘8 ........
After December 31,
1983.’’
and inserting in lieu thereof the following:
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‘‘8 ........
January 1, 1984, to De-
cember 31, 1995.
8.25 ...
January 1, 1996, to De-
cember 31, 1996.
8.4 .....
January 1, 1997, to De-
cember 31, 1997.
8.5 .....
January 1, 1998, to De-
cember 31, 2002.
8 ........
After December 31,
2002.’’;
(F) in the matter relating to a judge of the
United States Court of Appeals for the Armed
Forces for service as a judge of that court by
striking out
‘‘8 ........
On and after the date of
the enactment of the
Department of De-
fense Authorization
Act, 1984.’’
and inserting in lieu thereof the following:
‘‘8 ........
The date of the enact-
ment of the Depart-
ment of Defense Au-
thorization Act, 1984,
to December 31,
1995.
8.25 ...
January 1, 1996, to De-
cember 31, 1996.
8.4 .....
January 1, 1997, to De-
cember 31, 1997.
8.5 .....
January 1, 1998, to De-
cember 31, 2002.
8 ........
After December 31,
2002.’’;
(G) in the matter relating to a United
States magistrate by striking out
‘‘8 ........
After September 30,
1987.’’
and inserting in lieu thereof the following:
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‘‘8 ........
October 1, 1987, to De-
cember 31, 1995.
8.25 ...
January 1, 1996, to De-
cember 31, 1996.
8.4 .....
January 1, 1997, to De-
cember 31, 1997.
8.5 .....
January 1, 1998, to De-
cember 31, 2002.
8 ........
After December 31,
2002.’’;
(H) in the matter relating to a Claims
Court judge by striking out
‘‘8 ........
After September 30,
1988.’’
and inserting in lieu thereof the following:
‘‘8 ........
October 1, 1988, to De-
cember 31, 1995.
8.25 ...
January 1, 1996, to De-
cember 31, 1996.
8.4 .....
January 1, 1997, to De-
cember 31, 1997.
8.5 .....
January 1, 1998, to De-
cember 31, 2002.
8 ........
After December 31,
2002.’’;
and
(I) by inserting after the matter relating to
a Claims Court judge the following:
‘‘Member of the Capitol Police ..................
2.5 .......
August 1, 1920, to
June 30, 1926.
‘‘3.5 .....
July 1, 1926, to June
30, 1942.
‘‘5 ........
July 1, 1942, to June
30, 1948.
‘‘6 ........
July 1, 1948, to Octo-
ber 31, 1956.
‘‘6.5 .....
November 1, 1956, to
December 31, 1969.
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‘‘7.5 .....
January 1, 1970, to De-
cember 31, 1995.
‘‘7.75 ...
January 1, 1996, to De-
cember 31, 1996.
‘‘7.9 .....
January 1, 1997, to De-
cember 31, 1997.
‘‘8 ........
January 1, 1998, to De-
cember 31, 2002.
‘‘7.5 .....
After December 31,
2002.’’.
(4) OTHER SERVICE.—
(A) MILITARY SERVICE.—Section 8334(j)
of title 5, United States Code, is amended—
(i) in paragraph (1)(A) by inserting
‘‘and subject to paragraph (5),’’ after ‘‘Ex-
cept as provided in subparagraph (B),’’;
and
(ii) by adding at the end thereof the
following new paragraph:
‘‘(5) Effective with respect to any period of military
service after December 31, 1995, the percentage of basic
pay under section 204 of title 37 payable under paragraph
(1) shall be equal to the same percentage as would be ap-
plicable under section 8334(c) for that same period for
service as an employee, subject to paragraph (1)(B).’’.
(B) 
VOLUNTEER
SERVICE.—Section
8334(l) of title 5, United States Code, is
amended—
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(i) in paragraph (1) by adding at the
end thereof the following: ‘‘This paragraph
shall be subject to paragraph (4).’’; and
(ii) by adding at the end thereof the
following new paragraph:
‘‘(4) Effective with respect to any period of service
after December 31, 1995, the percentage of the readjust-
ment allowance or stipend (as the case may be) payable
under paragraph (1) shall be equal to the same percentage
as would be applicable under section 8334(c) for that same
period for service as an employee.’’.
(b) FEDERAL EMPLOYEES RETIREMENT SYSTEM.—
(1) 
INDIVIDUAL
DEDUCTIONS
AND
WITHHOLDINGS.—
(A) IN GENERAL.—Section 8422(a) of title
5, United States Code, is amended by striking
out paragraph (2) and inserting in lieu thereof
the following:
‘‘(2) The percentage to be deducted and withheld
from basic pay for any pay period shall be equal to—
‘‘(A) the applicable percentage under paragraph
(3), minus
‘‘(B) the percentage then in effect under section
3101(a) of the Internal Revenue Code of 1986 (re-
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lating to rate of tax for old-age, survivors, and dis-
ability insurance).
‘‘(3) The applicable percentage under this paragraph,
for civilian service shall be as follows:
‘‘Per-
centage
of basic
pay
Service period
Employee ...................................................
7 ..........
Before January 1,
1996.
7.25 .....
January 1, 1996, to De-
cember 31, 1996.
7.4 .......
January 1, 1997, to De-
cember 31, 1997.
7.5 .......
January 1, 1998, to De-
cember 31, 2002.
7 ..........
After December 31,
2002.
Congressional employee ...........................
7.5 .......
Before January 1,
1996.
7.25 .....
January 1, 1996, to De-
cember 31, 1996.
7.4 .......
January 1, 1997, to De-
cember 31, 1997.
7.5 .......
January 1, 1998, to De-
cember 31, 2002.
7 ..........
After December 31,
2002.
Member ....................................................
7.5 .......
Before January 1,
1996.
7.25 .....
January 1, 1996, to De-
cember 31, 1996.
7.4 .......
January 1, 1997, to De-
cember 31, 1997.
7.5 .......
January 1, 1998, to De-
cember 31, 2002.
7 ..........
After December 31,
2002.
Law enforcement officer, firefighter,
member of the Capitol Police, or air
traffic controller.
7.5 .......
Before January 1,
1996.
7.75 .....
January 1, 1996, to De-
cember 31, 1996.
7.9 .......
January 1, 1997, to De-
cember 31, 1997.
8 ..........
January 1, 1998, to De-
cember 31, 2002.
7.5 .......
After December 31,
2002.’’
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(B) MILITARY SERVICE.—Section 8422(e)
of title 5, United States Code, is amended—
(i) in paragraph (1)(A) by inserting
‘‘and subject to paragraph (6),’’ after ‘‘Ex-
cept as provided in subparagraph (B),’’;
and
(ii) by adding at the end thereof the
following:
‘‘(6) The percentage of basic pay under section
204 of title 37 payable under paragraph (1), with
respect to any period of military service performed
during—
‘‘(A) January 1, 1996, through December
31, 1996, shall be 3.25 percent;
‘‘(B) January 1, 1997, through December
31, 1997, shall be 3.4 percent; and
‘‘(C) January 1, 1998, through December
31, 2002, shall be 3.5 percent.’’.
(C) 
VOLUNTEER
SERVICE.—Section
8422(f) of title 5, United States Code, is
amended—
(i) in paragraph (1) by adding at the
end thereof the following: ‘‘This paragraph
shall be subject to paragraph (4).’’; and
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(ii) by adding at the end the follow-
ing:
‘‘(4) The percentage of the readjustment allow-
ance or stipend (as the case may be) payable under
paragraph (1), with respect to any period of volun-
teer service performed during—
‘‘(A) January 1, 1996, through December
31, 1996, shall be 3.25 percent;
‘‘(B) January 1, 1997, through December
31, 1997, shall be 3.4 percent; and
‘‘(C) January 1, 1998, through December
31, 2002, shall be 3.5 percent.’’.
(2) NO
REDUCTION
IN
AGENCY
CONTRIBU-
TIONS.—Agency contributions under section 8423
(a) and (b) of title 5, United States Code, shall not
be reduced as a result of the amendments made
under paragraph (1) of this subsection.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the first day of the first
applicable pay period beginning on or after January 1,
1996.
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SEC. 5003. FEDERAL RETIREMENT PROVISIONS RELATING
TO MEMBERS OF CONGRESS AND CONGRES-
SIONAL EMPLOYEES.
(a) RELATING TO THE YEARS OF SERVICE AS A
MEMBER OF CONGRESS AND CONGRESSIONAL EMPLOY-
EES FOR PURPOSES OF COMPUTING AN ANNUITY.—
(1) CSRS.—Section 8339 of title 5, United
States Code, is amended—
(A) in subsection (a) by inserting ‘‘or
Member’’ after ‘‘employee’’; and
(B) by striking out subsections (b) and (c).
(2) FERS.—Section 8415 of title 5, United
States Code, is amended—
(A) by striking out subsections (b) and (c);
(B) in subsections (a) and (g) by inserting
‘‘or Member’’ after ‘‘employee’’ each place it
appears; and
(C) in subsection (g)(2) by striking out
‘‘Congressional employee’’.
(3) CAPITOL POLICE.—Section 8339(q) of title
5, United States Code, is amended—
(A) by striking ‘‘subsection (b),’’ and in-
serting ‘‘subsection (b) (as last in effect),’’; and
(B) by striking ‘‘subsection (b)(2),’’ and
inserting ‘‘subsection (b)(2) (as last in effect),’’.
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(b) ADMINISTRATIVE REGULATIONS.—The Secretary
of the Senate and the Clerk of the House of Representa-
tives, in consultation with the Office of Personnel Manage-
ment, may prescribe regulations to carry out the provi-
sions of this section and the amendments made by this
section for applicable employees and Members of Con-
gress.
(c) EFFECTIVE DATES.—
(1) YEARS
OF
SERVICE; ANNUITY
COMPUTA-
TION.—(A) The amendments made by subsection (a)
shall take effect on the date of the enactment of this
Act and shall apply only with respect to the com-
putation of an annuity relating to—
(i) the service of a Member of Congress as
a Member or as a Congressional employee per-
formed on or after January 1, 1996; and
(ii) the service of a Congressional employee
as a Congressional employee performed on or
after January 1, 1996.
(B) An annuity shall be computed as though
the amendments made under subsection (a) had not
been enacted with respect to—
(i) the service of a Member of Congress as
a Member or a Congressional employee or mili-
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tary service performed before January 1, 1996;
and
(ii) the service of a Congressional employee
as a Congressional employee or military service
performed before January 1, 1996.
(2) REGULATIONS.—The provisions of sub-
section (b) shall take effect on the date of the enact-
ment of this Act.
SEC. 5004. FEDERAL EMPLOYEES RETIREMENT SECURITY
COMMISSION.
(a) ESTABLISHMENT.—There shall be established in
the legislative branch a commission to be known as the
‘‘Federal Employees Retirement Security Commission’’
(hereinafter in this section referred to as the ‘‘Commis-
sion’’).
(b) MEMBERS.—
(1) APPOINTMENT.—The Commission shall be
composed of 7 members, to be appointed within 30
days after the date of the enactment of this Act, as
follows:
(A) 2 members appointed by the Speaker
of the House of Representatives.
(B) 2 members appointed by the majority
leader of the Senate.
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(C) 1 member appointed by the minority
leader of the House of Representatives.
(D) 1 member appointed by the minority
leader of the Senate.
(E) 1 member appointed by the President.
(2) CHAIRMAN; VICE CHAIRMAN.—The members
of the Commission shall select 1 of the members to
be the Chairman and another to be the Vice Chair-
man of the Commission.
(3) TERMS.—Each member shall be appointed
for the life of the Commission.
(4) PAY AND TRAVEL EXPENSES.—
(A) PAY
GENERALLY.—Each member,
other than the Chairman, shall be paid at a
rate not to exceed the daily equivalent of the
annual rate of basic pay payable for level IV of
the Executive Schedule under section 5315 of
title 5, United States Code, for each day (in-
cluding travel time) during which such member
is engaged in the actual performance of duties
vested in the Commission.
(B) PAY FOR THE CHAIRMAN.—The Chair-
man shall be paid, for each day referred to in
subparagraph (A), at a rate not to exceed the
daily equivalent of the annual rate of basic pay
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payable for level III of the Executive Schedule
under section 5314 of title 5, United States
Code.
(C) TRAVEL EXPENSES.—Each member of
the Commission shall, subject to the availability
of appropriations and in such amounts as may
be provided by such Act, be allowed travel ex-
penses in the same manner as any individual
employed intermittently by the Government is
allowed travel expenses under section 5703 of
title 5, United States Code.
(D) GOVERNMENT EMPLOYEES AND MEM-
BERS
OF
CONGRESS.—Notwithstanding any
other provision of this paragraph, members of
the Commission who are full-time officers or
employees of the United States or Members of
Congress may not receive additional pay, allow-
ances, or benefits by reason of their service on
the Commission, except for travel expenses
under subparagraph (C).
(5) VACANCIES.—A vacancy in the Commission
shall be filled in the manner in which the original
appointment was made.
(c) MEETINGS.—
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(1) OPEN
MEETINGS.—Each meeting of the
Commission, other than meetings in which classified
information is to be discussed, shall be open to the
public.
(2) ACCESS BY REQUEST.—
(A) IN GENERAL.—All the proceedings, in-
formation, and deliberations of the Commission
shall be open, upon request, to the Chairman
and the ranking minority party member of the
respective committees under subparagraph (B)
or such chairmen or ranking minority party
members of subcommittees of any such commit-
tee as may be designated by the Chairman or
ranking minority party member, respectively, of
such committee.
(B) IDENTIFICATION
OF
COMMITTEES.—
The committees under this subparagraph are as
follows:
(i) The Committee on Government
Reform and Oversight of the House of
Representatives.
(ii) The Committee on National Secu-
rity of the House of Representatives.
(iii) The Committee on Governmental
Affairs of the Senate.
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(iv) The Committee on Armed Serv-
ices of the Senate.
(3) FIRST
MEETING.—The Commission shall
hold its first meeting within 60 days after the date
of the enactment of this Act.
(d) DIRECTOR; STAFF.—
(1) DIRECTOR.—The Commission shall have a
Director, who—
(A) shall be appointed by the Commission;
and
(B) shall be paid at a rate not to exceed
the rate of basic pay payable for level IV of the
Executive Schedule under section 5315 of title
5, United States Code.
(2) STAFF.—
(A) APPOINTMENTS; PAY.—The Director,
with the approval of the Commission, may ap-
point and fix the pay of additional personnel,
except that no individual so appointed may re-
ceive pay at a rate in excess of the maximum
rate of basic pay payable under section 5376 of
title 5, United States Code, for positions classi-
fied above GS-15 of the General Schedule.
(B) DETAILS FROM CONGRESSIONAL COM-
MITTEES AND OFFICES.—Upon the request of
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the Director, the chairman of any standing
committee or other committee of either House
or both Houses of the Congress, or the head of
any other congressional office, may detail any
of the personnel of that committee or office to
the Commission to assist the Commission in
carrying out its duties under this Act.
(C) ASSISTANCE FROM GAO.—The Comp-
troller General of the United States shall pro-
vide assistance, including the detailing of em-
ployees, to the Commission in accordance with
an agreement entered into with the Commis-
sion.
(e) DUTIES.—
(1) IN GENERAL.—The Commission shall study
and, within 7 months after the date of the enact-
ment of this Act, submit to the Congress a written
report on—
(A) the financial soundness of the retire-
ment systems for Government employees (in-
cluding employees of nonappropriated fund in-
strumentalities) and members of the uniformed
services;
(B) the cost and level of benefits provided
by the Civil Service Retirement System, the
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Federal Employees’ Retirement System, and
the other retirement systems under subpara-
graph (A), as compared with the cost and level
of benefits of retirement systems prevalent in
the private sector;
(C) the appropriate level and design of
benefits of an alternative retirement system and
modifications of existing systems to achieve the
objectives described in paragraph (2); and
(D) the cost and suitability of benefits pro-
vided by the military retirement system, and
their appropriateness in light of current and
projected military readiness requirements.
(2) CONSIDERATIONS.—The considerations de-
scribed in this paragraph are as follows:
(A) Portability of benefits, consistent with
the greater mobility anticipated with respect to
the workforce of the 21st century.
(B) Financial soundness, consistent with
the requirements of the Employee Retirement
Income Security Act of 1974 and the require-
ments that must be met in order to qualify to
be insured by the Pension Benefit Guarantee
Corporation.
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(C) The Government’s presence in a wide
range of occupations and local labor markets,
and the need for retirement benefits to be rep-
resentative of the level of benefits received by
most Americans in the private sector in order
to allow the Government to recruit and retain
a qualified workforce.
(D) Total compensation trends in the pri-
vate sector, including the use of cafeteria plans.
(3) CONTENTS.—The Commission’s report shall
contain a detailed statement of the findings and con-
clusions of the Commission, together with its rec-
ommendations for any legislation that the Commis-
sion considers appropriate.
(f) OTHER AUTHORITY.—
(1) EXPERTS AND CONSULTANTS.—The Com-
mission may procure by contract, to the extent funds
are available, the temporary or intermittent services
of experts or consultants subject to the same terms
and conditions as would apply under section 3109 of
title 5, United States Code, in the case of an Execu-
tive agency.
(2) LEASES.—The Commission may lease space
and acquire personal property to the extent funds
are available.
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(g) FUNDING.—There are authorized to be appro-
priated to the Commission such funds as are necessary
to carry out its duties under this Act. Such funds shall
remain available until expended.
(h) TERMINATION.—The Commission shall cease to
exist 30 days after submitting its report to the Congress
under subsection (e).
SEC. 5005. REPEAL OF AUTHORIZATION OF TRANSITIONAL
APPROPRIATIONS FOR THE UNITED STATES
POSTAL SERVICE.
(a) REPEAL.—
(1) IN
GENERAL.—Section 2004 of title 39,
United States Code, is repealed.
(2) TECHNICAL
AND
CONFORMING
AMEND-
MENTS.—
(A) The table of sections for chapter 20 of
such title is amended by repealing the item re-
lating to section 2004.
(B) Section 2003(e)(2) of such title is
amended by striking ‘‘sections 2401 and 2004’’
each place it appears and inserting ‘‘section
2401’’.
(b) CLARIFICATION THAT LIABILITIES FORMERLY
PAID PURSUANT TO SECTION 2004 REMAIN LIABILITIES
PAYABLE BY THE POSTAL SERVICE.—Section 2003 of
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title 39, United States Code, is amended by adding at the
end the following:
‘‘(h) Liabilities of the former Post Office Department
to the Employees’ Compensation Fund (appropriations for
which were authorized by former section 2004, as in effect
before the effective date of this subsection) shall be liabil-
ities of the Postal Service payable out of the Fund.’’.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—This section and the amend-
ments made by this section shall be effective as of
October 1, 1995.
(2) PROVISIONS RELATING TO PAYMENTS FOR
FISCAL YEAR 1996.—
(A) AMOUNTS
NOT
YET
PAID.—No pay-
ment may be made to the Postal Service Fund,
on or after the date of the enactment of this
Act, pursuant to any appropriation for fiscal
year 1996 authorized by section 2004 of title
39, United States Code (as in effect before the
effective date of this section).
(B) AMOUNTS PAID.—If any payment to
the Postal Service Fund is or has been made
pursuant to an appropriation for fiscal year
1996 authorized by such section 2004, then an
amount equal to the amount of such payment
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shall be paid from such Fund into the Treasury
as miscellaneous receipts.
SEC. 5006. AVAILABILITY OF SURPLUS PROPERTY FOR
HOMELESS ASSISTANCE.
(a) REPEAL.—(1) Title V of the Stewart B. McKin-
ney Homeless Assistance Act (42 U.S.C. 11411 et seq.)
is repealed.
(2) The table of contents in section 101(b) of that
Act is amended by striking the items relating to title V.
(3) This subsection shall be effective October 1, 1995.
(b) AUTHORITY
TO
TRANSFER
SURPLUS
REAL
PROPERTY FOR HOUSING USE.—Section 203 of the Fed-
eral Property and Administrative Services Act of 1949 (40
U.S.C. 484) is amended by adding at the end the
following:
‘‘(r) Under such regulations as the Administrator
may prescribe, and in consultation with appropriate local
governmental authorities, the Administrator may transfer
to any nonprofit organization which exists for the primary
purpose of providing housing or housing assistance for
homeless individuals or families, such surplus real prop-
erty, including buildings, fixtures, and equipment situated
thereon, as is needed for housing use.
‘‘(s)(1) Under such regulations as the Administrator
may prescribe, and in consultation with appropriate local
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governmental authorities, the Administrator may transfer
to any non-profit organization which exists for the primary
purpose of providing housing or housing assistance for
low-income individuals or families such surplus real prop-
erty, including buildings, fixtures, and equipment situated
thereon, as is needed for housing use.
‘‘(2) In making transfers under this subsection, the
Administrator shall take such actions, which may include
grant agreements with an organization receiving a grant,
as may be necessary to ensure that—
‘‘(A) assistance provided under this subsection
is used to facilitate and encourage homeownership
opportunities through the construction of self-help
housing, under terms which require that the person
receiving the assistance contribute a significant
amount of labor toward the construction; and
‘‘(B) the dwellings constructed with property
transferred under this subsection shall be quality
dwellings that comply with local building and safety
codes and standards and shall be available at prices
below the prevailing market prices.’’.
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Subtitle B—Debt Collection
Improvement Act of 1995
SEC 5201. SHORT TITLE.
This subtitle may be cited as the ‘‘Debt Collection
Improvement Act of 1995’’.
SEC. 5202. TABLE OF CONTENTS.
The table of contents for this subtitle is as follows:
Sec. 5201. Short title.
Sec. 5202. Table of contents.
Sec. 5203. Effective date.
Sec. 5204. Purposes.
PART I—GENERAL DEBT COLLECTION INITIATIVES
SUBPART A—GENERAL OFFSET AUTHORITY
Sec. 5211. Expansion of administrative offset authority.
Sec. 5212. Enhancement of administrative offset authority.
Sec. 5213. Exemption from computer matching requirements under the Privacy
Act of 1974.
Sec. 5214. Use of administrative offset authority for debts to States.
Sec. 5215. Technical and conforming amendments.
SUBPART B—SALARY OFFSET AUTHORITY
Sec. 5221. Enhancement of salary offset authority.
SUBPART C—TAXPAYER IDENTIFYING NUMBERS
Sec. 5231. Access to debtor information.
Sec. 5232. Barring delinquent Federal debtors from obtaining Federal loans or
loan guarantees.
SUBPART D—EXPANSION AND ENHANCEMENT OF COLLECTION AUTHORITIES
Sec. 5241. Disclosure to consumer reporting agencies and commercial reporting
agencies.
Sec. 5242. Contracts for collection services.
Sec. 5243. Cross-servicing partnerships and centralization of debt collection ac-
tivities in the Department of the Treasury.
Sec. 5244. Compromise of claims.
Sec. 5245. Wage garnishment requirement.
Sec. 5246. Debt sales by agencies.
Sec. 5247. Adjustments of administrative debt.
Sec. 5248. Dissemination of information regarding identity of delinquent debt-
ors.
SUBPART E—FEDERAL CIVIL MONETARY PENALTIES
Sec. 5251. Adjusting Federal civil monetary penalties for inflation.
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SUBPART F—GAIN SHARING
Sec. 5261. Debt collection improvement account.
SUBPART G—TAX REFUND OFFSET AUTHORITY
Sec. 5271. Expanding tax refund offset authority.
Sec. 5272. Expanding authority to collect past-due support.
SUBPART H—DISBURSEMENTS
Sec. 5281. Electronic funds transfer.
Sec. 5282. Requirement to include taxpayer identifying number with payment
voucher.
SUBPART I—MISCELLANEOUS
Sec. 5291. Miscellaneous amendments to definitions.
Sec. 5292. Monitoring and reporting.
Sec. 5293. Review of standards and policies for compromise or write-down of
delinquent debts.
PART II—JUSTICE DEBT MANAGEMENT
Sec. 5301. Expanded use of private attorneys.
Sec. 5302. Nonjudicial foreclosure of mortgages.
SEC. 5203. EFFECTIVE DATE.
Except as otherwise provided in this subtitle, the pro-
visions of this subtitle and the amendments made by this
subtitle shall become effective October 1, 1995.
SEC. 5204. PURPOSES.
The purposes of this subtitle are the following:
(1) To maximize collections of delinquent debts
owed to the Government by ensuring quick action to
enforce recovery of debts and the use of all appro-
priate collection tools.
(2) To minimize the costs of debt collection by
consolidating related functions and activities and
utilizing interagency teams.
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(3) To reduce losses arising from debt manage-
ment activities by requiring proper screening of po-
tential borrowers, aggressive monitoring of all ac-
counts, and sharing of information within and
among Federal agencies.
(4) To ensure that the public is fully informed
of the Federal Government’s debt collection policies
and that debtors are cognizant of their financial ob-
ligations to repay amounts owed to the Federal Gov-
ernment.
(5) To ensure that debtors have all appropriate
due process rights, including the ability to verify,
challenge, and compromise claims, and access to ad-
ministrative appeals procedures which are both rea-
sonable and protect the interests of the United
States.
(6) To encourage agencies, when appropriate,
to sell delinquent debt, particularly debts with un-
derlying collateral.
(7) To rely on the experience and expertise of
private sector professionals to provide debt collection
services to Federal agencies.
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PART I—GENERAL DEBT COLLECTION
INITIATIVES
Subpart A—General Offset Authority
SEC. 5211. EXPANSION OF ADMINISTRATIVE OFFSET AU-
THORITY.
Chapter 37 of title 31, United States Code, is amend-
ed—
(1) in each of sections 3711, 3716, 3717, and
3718, by striking ‘‘the head of an executive or legis-
lative agency’’ each place it appears and inserting
‘‘the head of an executive, judicial, or legislative
agency’’; and
(2) by amending section 3701(a)(4) to read as
follows:
‘‘(4) ‘executive, judicial, or legislative agency’
means a department, agency, court, court adminis-
trative office, or instrumentality in the executive, ju-
dicial, or legislative branch of government, including
government corporations.’’.
SEC. 5212. ENHANCEMENT OF ADMINISTRATIVE OFFSET
AUTHORITY.
(a) PERSONS SUBJECT TO ADMINISTRATIVE OFF-
SET.—Section 3701(c) of title 31, United States Code, is
amended to read as follows:
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‘‘(c) In sections 3716 and 3717 of this title, the term
‘person’ does not include an agency of the United States
Government.’’.
(b) REQUIREMENTS
AND
PROCEDURES.—Section
3716 of title 31, United States Code, is amended—
(1) by amending subsection (b) to read as fol-
lows:
‘‘(b) Before collecting a claim by administrative off-
set, the head of an executive, judicial, or legislative agency
must either—
‘‘(1) adopt, without change, regulations on col-
lecting by administrative offset promulgated by the
Department of Justice, the General Accounting Of-
fice, or the Department of the Treasury; or
‘‘(2) prescribe regulations on collecting by ad-
ministrative offset consistent with the regulations re-
ferred to in paragraph (1).’’;
(2) by amending subsection (c)(2) to read as
follows:
‘‘(2) when a statute explicitly prohibits using
administrative offset or setoff to collect the claim or
type of claim involved.’’;
(3) by redesignating subsection (c) as sub-
section (e); and
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(4) by inserting after subsection (b) the follow-
ing new subsections:
‘‘(c)(1)(A) Except as otherwise provided in this sub-
section, a disbursing official of the Department of the
Treasury, the Department of Defense, the United States
Postal Service, or any other government corporation, or
any disbursing official of the United States designated by
the Secretary of the Treasury, shall offset at least annu-
ally the amount of a payment which a payment certifying
agency has certified to the disbursing official for disburse-
ment, by an amount equal to the amount of a claim which
a creditor agency has certified to the Secretary of the
Treasury pursuant to this subsection.
‘‘(B) An agency that designates disbursing officials
pursuant to section 3321(c) of this title is not required
to certify claims arising out of its operations to the Sec-
retary of the Treasury before such agency’s disbursing of-
ficials offset such claims.
‘‘(C) Payments certified by the Department of Edu-
cation under a program administered by the Secretary of
Education under title IV of the Higher Education Act of
1965 shall not be subject to administrative offset under
this subsection.
‘‘(2) Neither the disbursing official nor the payment
certifying agency shall be liable—
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‘‘(A) for the amount of the administrative offset
on the basis that the underlying obligation, rep-
resented by the payment before the administrative
offset was taken, was not satisfied; or
‘‘(B) for failure to provide timely notice under
paragraph (8).
‘‘(3) The Secretary of the Treasury shall exempt from
administrative offset under this subsection payments
under means-tested programs when requested by the head
of the respective agency. The Secretary may exempt other
payments from administrative offset under this subsection
upon the written request of the head of a payment certify-
ing agency. A written request for exemption of other pay-
ments must provide justification for the exemption under
standards prescribed by the Secretary. Such standards
shall give due consideration to whether administrative off-
set would tend to interfere substantially with or defeat the
purposes of the payment certifying agency’s program. The
Secretary shall report to the Congress annually on exemp-
tions granted under this section.
‘‘(4) The Secretary of the Treasury may charge a fee
sufficient to cover the full cost of implementing this sub-
section. The fee may be collected either by the retention
of a portion of amounts collected pursuant to this sub-
section, or by billing the agency referring or transferring
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a claim for those amounts. Fees charged to the agencies
shall be based on actual administrative offsets completed.
Amounts received by the United States as fees under this
subsection shall be deposited into the account of the De-
partment of the Treasury under section 3711(g)(4) of this
title, and shall be collected and accounted for in accord-
ance with the provisions of that section.
‘‘(5) The Secretary of the Treasury may disclose to
a creditor agency the current address of any payee and
any data related to certifying and authorizing payments
to a payee in accordance with section 552a of title 5, Unit-
ed States Code, even if the payment has been exempt from
administrative offset. If a payment is made electronically,
the Secretary may obtain the current address of the payee
from the institution receiving the payment. Upon request
by the Secretary, the institution receiving the payment
shall report the current address of the payee to the Sec-
retary.
‘‘(6) The Secretary of the Treasury may prescribe
such rules, regulations, and procedures as the Secretary
of the Treasury considers necessary to carry out this sub-
section. The Secretary shall consult with the heads of af-
fected agencies in the development of such rules, regula-
tions, and procedures.
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‘‘(7) Any Federal agency that is owed by a person
a past due, legally enforceable nontax debt that is over
180 days delinquent, including nontax debt administered
by a third party acting as an agent for the Federal Gov-
ernment, shall notify the Secretary of the Treasury of all
such nontax debts for purposes of administrative offset
under this subsection.
‘‘(8)(A) The disbursing official conducting an admin-
istrative offset with respect to a payment to a payee shall
notify the payee in writing of—
‘‘(i) the occurrence of the administrative offset
to satisfy a past due legally enforceable debt, includ-
ing a description of the type and amount of the pay-
ment otherwise payable to the payee against which
the offset was executed;
‘‘(ii) the identity of the creditor agency request-
ing the offset; and
‘‘(iii) a contact point within the creditor agency
that will handle concerns regarding the offset.
‘‘(B) If the payment to be offset is a periodic benefit
payment, the disbursing official shall take reasonable
steps, as determined by the Secretary of the Treasury, to
provide the notice to the payee not later than the date
on which the payee is otherwise scheduled to receive the
payment, or as soon as practical thereafter, but no later
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than the date of the administrative offset. Notwithstand-
ing the preceding sentence, the failure of the debtor to
receive such notice shall not impair the legality of such
administrative offset.
‘‘(9) A levy pursuant to the Internal Revenue Code
of 1986 shall take precedence over requests for adminis-
trative offset pursuant to other laws.
‘‘(d) Nothing in this section is intended to prohibit
the use of any other administrative offset authority exist-
ing under statute or common law.’’.
(c) NONTAX DEBT OR CLAIM DEFINED.—Section
3701 of title 31, United States Code, is amended—
(1) in subsection (b) by inserting ‘‘and sub-
section (a)(8) of this section’’ after ‘‘of this chap-
ter’’; and
(2) in subsection (a) by adding at the end the
following new paragraph:
‘‘(8) ‘nontax’ means, with respect to any debt
or claim, any debt or claim other than a debt or
claim under the Internal Revenue Code of 1986.’’.
SEC. 5213. EXEMPTION FROM COMPUTER MATCHING RE-
QUIREMENTS UNDER THE PRIVACY ACT OF
1974.
Section 3716 of title 31, United States Code, as
amended by section 5212(b) of this subtitle, is further
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amended by adding at the end the following new sub-
sections:
‘‘(f) The Secretary may waive the requirements of
sections 552a(o) and (p) of title 5 for administrative offset
or claims collection upon written certification by the head
of the executive, judicial, or legislative agency seeking to
collect the claim that the requirements of subsection (a)
of this section have been met.
‘‘(g) The Data Integrity Board of the Department
of the Treasury established under 552a(u) of title 5 shall
review and include in reports under paragraph (3)(D) of
that section a description of any matching activities con-
ducted under this section. If the Secretary has granted
a waiver under subsection (f) of this section, no other
Data Integrity Board is required to take any action under
section 552a(u) of title 5.’’.
SEC. 5214. USE OF ADMINISTRATIVE OFFSET AUTHORITY
FOR DEBTS TO STATES.
Section 3716 of title 31, United States Code, as
amended by sections 5212 and 5213 of this subtitle, is
further amended by adding at the end the following new
subsection:
‘‘(h)(1) The Secretary may, in the discretion of the
Secretary, apply subsection (a) with respect to any past-
due, legally-enforceable debt owed to a State if—
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‘‘(A) the appropriate State disbursing official
requests that an offset be performed; and
‘‘(B) a reciprocal agreement with the State is in
effect which contains, at a minimum—
‘‘(i) requirements substantially equivalent
to subsection (b) of this section; and
‘‘(ii) any other requirements which the
Secretary considers appropriate to facilitate the
offset and prevent duplicative efforts.
‘‘(2) This subsection does not apply to—
‘‘(A) the collection of a debt or claim on which
the administrative costs associated with the collec-
tion of the debt or claim exceed the amount of the
debt or claim;
‘‘(B) any collection of any other type, class, or
amount of claim, as the Secretary considers nec-
essary to protect the interest of the United States;
or
‘‘(C) the disbursement of any class or type of
payment exempted by the Secretary of the Treasury
at the request of a Federal agency.’’.
SEC. 5215. TECHNICAL AND CONFORMING AMENDMENTS.
(a) TITLE 31.—Title 31, United States Code, is
amended—
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(1) in section 3322(a), by inserting ‘‘section
3716 and section 3720A of this title and’’ after ‘‘Ex-
cept as provided in’’;
(2) in section 3325(a)(3), by inserting ‘‘or pur-
suant to payment intercepts or offsets pursuant to
section 3716 or 3720A of this title,’’ after ‘‘vouch-
er’’; and
(3) in each of sections 3711(e)(2) and 3717(h)
by inserting ‘‘, the Secretary of the Treasury,’’ after
‘‘Attorney General’’.
(b) INTERNAL REVENUE CODE
OF 1986.—Sub-
section 6103(l)(10)(A) of the Internal Revenue Code of
1986 (26 U.S.C. 6103(l)(10)(A)) is amended—
(1) in subparagraph (A), by inserting ‘‘and to
officers and employees of the Department of the
Treasury in connection with such reduction’’ after
‘‘6402’’; and
(2) in subparagraph (B), by inserting ‘‘and offi-
cers and employees of the Department of the Treas-
ury’’ after ‘‘agency’’ the first place it appears.
Subpart B—Salary Offset Authority
SEC. 5221. ENHANCEMENT OF SALARY OFFSET AUTHORITY.
Section 5514 of title 5, United States Code, is
amended—
(1) in subsection (a)—
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(A) by adding at the end of paragraph (1)
the following: ‘‘All Federal agencies to which
debts are owed and which have outstanding de-
linquent debts shall participate in a computer
match at least annually of their delinquent debt
records with records of Federal employees to
identify those employees who are delinquent in
repayment of those debts. The preceding sen-
tence shall not apply to any debt under the In-
ternal Revenue Code of 1986. Matched Federal
employee records shall include, but shall not be
limited to, records of active Civil Service em-
ployees government-wide, military active duty
personnel, military reservists, United States
Postal Service employees, employees of other
government corporations, and seasonal and
temporary employees. The Secretary of the
Treasury shall establish and maintain an inter-
agency consortium to implement centralized sal-
ary offset computer matching, and promulgate
regulations for this program. Agencies that per-
form centralized salary offset computer match-
ing services under this subsection are author-
ized to charge a fee sufficient to cover the full
cost for such services.’’;
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(B) by redesignating paragraphs (3) and
(4) as paragraphs (4) and (5), respectively;
(C) by inserting after paragraph (2) the
following new paragraph:
‘‘(3) Paragraph (2) shall not apply to routine intra-
agency adjustments of pay that are attributable to clerical
or administrative errors or delays in processing pay docu-
ments that have occurred within the four pay periods pre-
ceding the adjustment and to any adjustment that
amounts to $50 or less, if at the time of such adjustment,
or as soon thereafter as practical, the individual is pro-
vided written notice of the nature and the amount of the
adjustment and a point of contact for contesting such ad-
justment.’’; and
(D) by amending paragraph (5)(B) (as re-
designated by subparagraph (B) of this para-
graph) to read as follows:
‘‘(B) ‘agency’ includes executive depart-
ments and agencies, the United States Postal
Service, the Postal Rate Commission, the Sen-
ate, the House of Representatives, and any
court, court administrative office, or instrumen-
tality in the judicial or legislative branches of
the Government, and government corpora-
tions.’’;
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(2) by adding after subsection (c) the following
new subsection:
‘‘(d) A levy pursuant to the Internal Revenue Code
of 1986 shall take precedence over deductions under this
section.’’.
Subpart C—Taxpayer Identifying Numbers
SEC. 5231. ACCESS TO DEBTOR INFORMATION.
Section 4 of the Debt Collection Act of 1982 (Public
Law 97–365, 96 Stat. 1749, 26 U.S.C. 6103 note) is
amended—
(1) in subsection (b), by striking ‘‘For purposes
of this section’’ and inserting ‘‘For purposes of sub-
section (a)’’; and
(2) by adding at the end the following new sub-
sections:
‘‘(c) FEDERAL AGENCIES.—
‘‘(1) IN GENERAL.—Each Federal agency shall
require each person doing business with that agency
to furnish to that agency such person’s taxpayer
identifying number.
‘‘(2) DOING BUSINESS.—For purposes of this
subsection, a person shall be considered to be doing
business with a Federal agency if the person is—
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‘‘(4) DEFINITIONS.—For purposes of this sub-
section—
‘‘(A) the term ‘taxpayer identifying num-
ber’ has the meaning given such term in section
6109 of the Internal Revenue Code of 1986 (26
U.S.C. 6109); and
‘‘(B) the term ‘person’—
‘‘(i) subject to clause (ii), means an
individual, sole proprietorship, partnership,
corporation, or nonprofit organization, or
any other form of business association; and
‘‘(ii) does not include debtors under
third party claims of the United States,
other than debtors owing claims resulting
from petroleum pricing violations.
‘‘(d) ACCESS TO DEBTOR INFORMATION.—Notwith-
standing section 552a(b) of title 5, United States Code,
creditor agencies to which a delinquent claim is owed, and
their agents, may match their debtor records with Depart-
ment of Health and Human Services and Department of
Labor records to obtain names (including names of em-
ployees), name controls, names of employers, social secu-
rity account numbers, addresses (including addresses of
employers), and dates of birth. The Department of Health
and Human Services and the Department of Labor shall
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release that information to creditor agencies and may
charge reasonable fees sufficient to pay the costs associ-
ated with that release.
‘‘(e) ELECTRONIC PAYMENTS.—If a payment is made
electronically by any executive, judicial, or legislative agen-
cy, the Secretary of the Treasury may obtain from the
institution receiving the payment the taxpayer identifica-
tion number of any joint holder of the account to which
the payment is made. Upon request of the Secretary, the
institution receiving the payment shall report the taxpayer
identification number of the joint holder to the Sec-
retary.’’.
SEC. 5232. BARRING DELINQUENT FEDERAL DEBTORS
FROM OBTAINING FEDERAL LOANS OR LOAN
GUARANTEES.
(a) IN GENERAL.—Title 31, United States Code, is
amended by inserting after section 3720A the following
new section:
‘‘§ 3720B. Barring delinquent Federal debtors from
obtaining Federal loans or loan guaran-
tees
‘‘(a) Unless this subsection is waived by the head of
a Federal agency, a person may not obtain any Federal
financial assistance in the form of a loan (other than a
disaster loan) or loan guarantee administered by the agen-
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cy if the person has an outstanding debt (other than a
debt under the Internal Revenue Code of 1986) with any
Federal agency which is in a delinquent status, as deter-
mined under standards prescribed by the Secretary of the
Treasury. Such a person may obtain additional loans or
loan guarantees only after such delinquency is resolved in
accordance with those standards. The Secretary of the
Treasury may exempt, at the request of an agency, any
class of claims.
‘‘(b) The head of a Federal agency may delegate the
waiver authority under subsection (a) to the Chief Finan-
cial Officer of the agency. The waiver authority may be
redelegated only to the Deputy Chief Financial Officer of
the agency.
‘‘(c) For purposes of this section, the term ‘person’
means—
‘‘(1) an individual; or
‘‘(2) any sole proprietorship, partnership, cor-
poration, nonprofit organization, or other form of
business association.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for subchapter II of chapter 37 of title 31, United States
Code, is amended by inserting after the item relating to
section 3720A the following new item:
‘‘3720B. Barring delinquent Federal debtors from obtaining Federal loans or
loan guarantees.’’.
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Subpart D—Expansion and Enhancement of
Collection Authorities
SEC. 5241. DISCLOSURE TO CONSUMER REPORTING AGEN-
CIES AND COMMERCIAL REPORTING AGEN-
CIES.
Section 3711(f) of title 31, United States Code, is
amended—
(1) by striking ‘‘may’’ the first place it appears
and inserting ‘‘shall’’;
(2) by striking ‘‘an individual’’ each place it ap-
pears and inserting ‘‘a covered person’’;
(3) by striking ‘‘the individual’’ each place it
appears and inserting ‘‘the covered person’’; and
(4) by adding at the end the following new
paragraphs:
‘‘(4) The head of each executive agency shall require,
as a condition for guaranteeing any loan, financing, or
other extension of credit under any law to a covered per-
son, that the lender provide information relating to the
extension of credit to consumer reporting agencies or com-
mercial reporting agencies, as appropriate.
‘‘(5) The head of each executive agency may provide
to a consumer reporting agency or commercial reporting
agency information from a system of records that a cov-
ered person is responsible for a claim which is current,
if notice required by section 552a(e)(4) of title 5 indicates
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that information in the system may be disclosed to a
consumer reporting agency or commercial reporting agen-
cy, respectively.
‘‘(6) In this subsection, the term ‘covered person’
means an individual, a sole proprietorship, a corporation
(including a nonprofit corporation), or any other form of
business association.’’.
SEC. 5242. CONTRACTS FOR COLLECTION SERVICES.
Section 3718 of title 31, United States Code, is
amended—
(1) in subsection (a), by striking the first sen-
tence and inserting the following: ‘‘Under conditions
the head of an executive, judicial, or legislative agen-
cy considers appropriate, the head of the agency
may enter into a contract with a person for collec-
tion service to recover indebtedness owed, or to lo-
cate or recover assets of, the United States Govern-
ment. The head of an agency may not enter into a
contract under the preceding sentence to locate or
recover assets of the United States held by a State
government or financial institution unless that agen-
cy has established procedures approved by the Sec-
retary of the Treasury to identify and recover such
assets.’’; and
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(2) in subsection (d), by inserting ‘‘, or to lo-
cate or recover assets of,’’ after ‘‘owed’’.
SEC. 5243. CROSS-SERVICING PARTNERSHIPS AND CEN-
TRALIZATION OF DEBT COLLECTION ACTIVI-
TIES IN THE DEPARTMENT OF THE TREAS-
URY.
Section 3711 of title 31, United States Code, is
amended by adding at the end the following new sub-
sections:
‘‘(g)(1) If a nontax debt or claim owed to the United
States has been delinquent for a period of 180 days—
‘‘(A) the head of the executive, judicial, or legis-
lative agency that administers the program that gave
rise to the debt or claim shall transfer the debt or
claim to the Secretary of the Treasury; and
‘‘(B) upon such transfer the Secretary of the
Treasury shall take appropriate action to collect or
terminate collection actions on the debt or claim.
‘‘(2) Paragraph (1) shall not apply—
‘‘(A) to any debt or claim that—
‘‘(i) is in litigation or foreclosure;
‘‘(ii) will be disposed of under an asset
sales program within 1 year after the date the
debt or claim is first delinquent, or a greater
period of time if a delay would be in the best
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interests of the United States, as determined by
the Secretary of the Treasury;
‘‘(iii) has been referred to a private collec-
tion contractor for collection for a period of
time determined by the Secretary of the Treas-
ury;
‘‘(iv) has been referred by, or with the con-
sent of, the Secretary of the Treasury to a debt
collection center for a period of time determined
by the Secretary of the Treasury; or
‘‘(v) will be collected under internal offset,
if such offset is sufficient to collect the claim
within 3 years after the date the debt or claim
is first delinquent; and
‘‘(B) to any other specific class of debt or
claim, as determined by the Secretary of the Treas-
ury at the request of the head of an executive, judi-
cial, or legislative agency or otherwise.
‘‘(3) For purposes of this section, the Secretary of
the Treasury may designate, and withdraw such designa-
tion of debt collection centers operated by other Federal
agencies. The Secretary of the Treasury shall designate
such centers on the basis of their performance in collecting
delinquent claims owed to the Government.
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‘‘(4) At the discretion of the Secretary of the Treas-
ury, referral of a nontax claim may be made to—
‘‘(A) any executive department or agency oper-
ating a debt collection center for servicing, collec-
tion, compromise, or suspension or termination of
collection action;
‘‘(B) a contractor operating under a contract
for servicing or collection action; or
‘‘(C) the Department of Justice for litigation.
‘‘(5) nontax claims referred or transferred under this
section shall be serviced, collected, or compromised, or col-
lection action thereon suspended or terminated, in accord-
ance with otherwise applicable statutory requirements and
authorities. Executive departments and agencies operating
debt collection centers may enter into agreements with the
Secretary of the Treasury to carry out the purposes of
this subsection. The Secretary of the Treasury shall—
‘‘(A) maintain competition in carrying out this
subsection;
‘‘(B) maximize collections of delinquent debts
by placing delinquent debts quickly;
‘‘(C) maintain a schedule of contractors and
debt collection centers eligible for referral of claims;
and
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‘‘(D) refer delinquent debts to the person most
appropriate to collect the type or amount of claim
involved.
‘‘(6) Any agency operating a debt collection center
to which nontax claims are referred or transferred under
this subsection may charge a fee sufficient to cover the
full cost of implementing this subsection. The agency
transferring or referring the nontax claim shall be charged
the fee, and the agency charging the fee shall collect such
fee by retaining the amount of the fee from amounts col-
lected pursuant to this subsection. Agencies may agree to
pay through a different method, or to fund an activity
from another account or from revenue received from the
procedure described under section 3720C of this title.
Amounts charged under this subsection concerning delin-
quent claims may be considered as costs pursuant to sec-
tion 3717(e) of this title.
‘‘(7) Notwithstanding any other law concerning the
depositing and collection of Federal payments, including
section 3302(b) of this title, agencies collecting fees may
retain the fees from amounts collected. Any fee charged
pursuant to this subsection shall be deposited into an ac-
count to be determined by the executive department or
agency operating the debt collection center charging the
fee (in this subsection referred to in this section as the
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‘Account’). Amounts deposited in the Account shall be
available until expended to cover costs associated with the
implementation and operation of Governmentwide debt
collection activities. Costs properly chargeable to the Ac-
count include—
‘‘(A) the costs of computer hardware and soft-
ware, word processing and telecommunications
equipment, and other equipment, supplies, and fur-
niture;
‘‘(B) personnel training and travel costs;
‘‘(C) other personnel and administrative costs;
‘‘(D) the costs of any contract for identification,
billing, or collection services; and
‘‘(E) reasonable costs incurred by the Secretary
of the Treasury, including services and utilities pro-
vided by the Secretary, and administration of the
Account.
‘‘(8) Not later than January 1 of each year, there
shall be deposited into the Treasury as miscellaneous re-
ceipts an amount equal to the amount of unobligated bal-
ances remaining in the Account at the close of business
on September 30 of the preceding year, minus any part
of such balance that the executive department or agency
operating the debt collection center determines is nec-
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essary to cover or defray the costs under this subsection
for the fiscal year in which the deposit is made.
‘‘(9) To carry out the purposes of this subsection, the
Secretary of the Treasury may prescribe such rules, regu-
lations, and procedures as the Secretary considers nec-
essary.
‘‘(h)(1) The head of an executive, judicial, or legisla-
tive agency acting under subsection (a)(1), (2), or (3) of
this section to collect a claim, compromise a claim, or ter-
minate collection action on a claim may obtain a consumer
report (as that term is defined in section 603 of the Fair
Credit Reporting Act (15 U.S.C. 1681a)) or comparable
credit information on any person who is liable for the
claim.
‘‘(2) The obtaining of a consumer report under this
subsection is deemed to be a circumstance or purpose au-
thorized or listed under section 604 of the Fair Credit Re-
porting Act (15 U.S.C. 1681b).’’.
SEC. 5244. COMPROMISE OF CLAIMS.
Section 11 of the Administrative Dispute Resolution
Act (Public Law 101–552, 104 Stat. 2736, 5 U.S.C. 571
note) is amended by adding at the end the following sen-
tence: ‘‘This section shall not apply to section 8(b) of this
Act.’’.
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SEC. 5245. WAGE GARNISHMENT REQUIREMENT.
(a) IN GENERAL.—Chapter 37 of title 31, United
States Code, is amended in subchapter II by adding after
section 3720C, as added by section 5261 of this subtitle,
the following new section:
‘‘§ 3720D. Garnishment
‘‘(a) Notwithstanding any provision of State law, the
head of an executive, judicial, or legislative agency that
administers a program that gives rise to a delinquent
nontax debt owed to the United States by an individual
may in accordance with this section garnish the disposable
pay of the individual to collect the amount owed, if the
individual is not currently making required repayment in
accordance with any agreement between the agency head
and the individual.
‘‘(b) In carrying out any garnishment of disposable
pay of an individual under subsection (a), the head of an
executive, judicial, or legislative agency shall comply with
the following requirements:
‘‘(1) The amount deducted under this section
for any pay period may not exceed 15 percent of dis-
posable pay, except that a greater percentage may
be deducted with the written consent of the individ-
ual.
‘‘(2) The individual shall be provided written
notice, sent by mail to the individual’s last known
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address, a minimum of 30 days prior to the initi-
ation of proceedings, from the head of the executive,
judicial, or legislative agency, informing the individ-
ual of—
‘‘(A) the nature and amount of the debt to
be collected;
‘‘(B) the intention of the agency to initiate
proceedings to collect the debt through deduc-
tions from pay; and
‘‘(C) an explanation of the rights of the in-
dividual under this section.
‘‘(3) The individual shall be provided an oppor-
tunity to inspect and copy records relating to the
debt.
‘‘(4) The individual shall be provided an oppor-
tunity to enter into a written agreement with the ex-
ecutive, judicial, or legislative agency, under terms
agreeable to the head of the agency, to establish a
schedule for repayment of the debt.
‘‘(5) The individual shall be provided an oppor-
tunity for a hearing in accordance with subsection
(c) on the determination of the head of the execu-
tive, judicial, or legislative agency concerning—
‘‘(A) the existence or the amount of the
debt, and
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‘‘(B) in the case of an individual whose re-
payment schedule is established other than by
a written agreement pursuant to paragraph (4),
the terms of the repayment schedule.
‘‘(6) If the individual has been reemployed with-
in 12 months after having been involuntarily sepa-
rated from employment, no amount may be deducted
from the disposable pay of the individual until the
individual has been reemployed continuously for at
least 12 months.
‘‘(c)(1) A hearing under subsection (b)(5) shall be
provided prior to issuance of a garnishment order if the
individual, on or before the 15th day following the mailing
of the notice described in subsection (b)(2), and in accord-
ance with such procedures as the head of the executive,
judicial, or legislative agency may prescribe, files a petition
requesting such a hearing.
‘‘(2) If the individual does not file a petition request-
ing a hearing prior to such date, the head of the agency
shall provide the individual a hearing under subsection
(a)(5) upon request, but such hearing need not be pro-
vided prior to issuance of a garnishment order.
‘‘(3) The hearing official shall issue a final decision
at the earliest practicable date, but not later than 60 days
after the filing of the petition requesting the hearing.
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‘‘(d) The notice to the employer of the withholding
order shall contain only such information as may be nec-
essary for the employer to comply with the withholding
order.
‘‘(e)(1) An employer may not discharge from employ-
ment, refuse to employ, or take disciplinary action against
an individual subject to wage withholding in accordance
with this section by reason of the fact that the individual’s
wages have been subject to garnishment under this sec-
tion, and such individual may sue in a State or Federal
court of competent jurisdiction any employer who takes
such action.
‘‘(2) The court shall award attorneys’ fees to a pre-
vailing employee and, in its discretion, may order rein-
statement of the individual, award punitive damages and
back pay to the employee, or order such other remedy as
may be reasonably necessary.
‘‘(f)(1) The employer of an individual—
‘‘(A) shall pay to the head of an executive, judi-
cial, or legislative agency as directed in a withhold-
ing order issued in an action under this section with
respect to the individual, and
‘‘(B) shall be liable for any amount that the
employer fails to withhold from wages due an em-
ployee following receipt by such employer of notice
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of the withholding order, plus attorneys’ fees, costs,
and, in the court’s discretion, punitive damages.
‘‘(2)(A) The head of an executive, judicial, or legisla-
tive agency may sue an employer in a State or Federal
court of competent jurisdiction to recover amounts for
which the employer is liable under paragraph (1)(B).
‘‘(B) A suit under this paragraph may not be filed
before the termination of the collection action, unless ear-
lier filing is necessary to avoid expiration of any applicable
statute of limitations period.
‘‘(3) Notwithstanding paragraphs (1) and (2), an em-
ployer shall not be required to vary its normal pay and
disbursement cycles in order to comply with this sub-
section.
‘‘(g) For the purpose of this section, the term ‘dispos-
able pay’ means that part of the compensation of any indi-
vidual from an employer remaining after the deduction of
any amounts required by any other law to be withheld.
‘‘(h) The Secretary of the Treasury shall issue regula-
tions to implement this section.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for subchapter II of chapter 37 of title 31, United States
Code, is amended by inserting after the item relating to
section 3720C (as added by section 5261 of this subtitle)
the following new item:
‘‘3720D. Garnishment.’’.