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‘‘(C) consider any appropriate changes to part
D of title VII, relating to the College Construction
Loan Insurance Association; and
‘‘(D) be considered by the Secretaries of Edu-
cation and the Treasury in developing any legislative
proposals concerning any changes to the status of
the Association as a Government-Sponsored Enter-
prise or its duties under the Federal Family
Education Loan Program.
‘‘(2) The Secretaries of Education and the Treasury
are directed to work with the Association to ensure that
any changes in the Association’s status, operations, or
purposes are carried out efficiently and effectively.’’.
AUTHORITY TO USE OPTICALLY IMAGED DOCUMENTS
SEC. 219. (a) Section 484A of the Act is amended—
(1) in the heading, by adding a semicolon and
‘‘OPTICALLY
IMAGED
DOCUMENTS’’ after ‘‘LIMITA-
TIONS’’; and
(2) by adding at the end thereof the following
new subsection:
‘‘(c)(1) IN GENERAL.—It is the purpose of this sub-
section to—
‘‘(A) allow the Secretary to use optical imaging
technology to store and retrieve documents and
records, including promissory notes and repayment
agreements, required for the administration of the
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programs authorized under part D of this title, or
for the administration of loans made under part B
of this title that have been assigned to the Secretary;
‘‘(B) permit the Secretary to destroy originals
of such documents and records, including promissory
notes and repayment agreements, after they have
been optically imaged, thereby achieving significant
savings in storage and retrieval costs; and
‘‘(C) ensure that the Secretary may introduce
as evidence in any proceeding with respect to the
programs or loans described in subparagraph (A)
optically imaged documents and records, including
promissory notes and repayment agreements.
‘‘(2) Notwithstanding any other provision of Federal
or State law, an optically imaged copy of any document
or record, including a promissory note or repayment
agreement, may be introduced as evidence in any proceed-
ing with respect to the programs or loans described in
paragraph (1)(A) in any Federal or State court, or other
tribunal, and such optically imaged copy shall be admissi-
ble in any court or tribunal of the United States or any
State as if it were the original document or record and
have the same force and effect as the original.
‘‘(3) Nothing in this subsection shall be interpreted
to preclude the admissibility of a duplicate of a document
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or record required for the administration of the programs
or loans described in paragraph (1)(A) made by a tech-
nology other than optical imaging consistent with the Fed-
eral Rules of Evidence and section 1732 of title 28 of the
United States Code, or applicable State law.
‘‘(4) Nothing in this subsection shall be interpreted
to preclude the admissibility of an optically imaged copy
of any document or record in a proceeding outside the
scope of this subsection consistent with the Federal Rules
of Evidence and section 1732 of title 28 of the United
States Code, or applicable State law.’’.
(b) Section 432 of the Act is amended by adding at
the end thereof the following new subsection:
‘‘(q) OPTICALLY
IMAGED
DOCUMENTS.—Records
maintained in accordance with section 484A(c) may be
used in any proceeding, as permitted by section 484A(c),
with respect to a loan that was made under this part and
has been assigned to the Secretary.’’.
(c) Section 487 of the Act is amended by adding at
the end thereof the following new subsection:
‘‘(f) USE OF OPTICALLY IMAGED DOCUMENTS.—In
any proceeding with respect to a program or activity under
part D of this title, or with respect to a loan made under
part B of this title that has been assigned to the Sec-
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retary, records maintained in accordance with section
484A may be used as provided in that section.’’.
PART B—AMENDMENTS TO OTHER LAWS
DISCLOSURE OF TAX RETURN INFORMATION
SEC. 221. (a) Section 6103(a)(3) of the Internal Rev-
enue Code of 1986 (26 U.S.C. 6103(a)(3); relating to con-
fidentiality and disclosure of returns and return informa-
tion; hereinafter referred to as ‘‘the Code’’) is amended
by striking out ‘‘(l)(12)’’ and inserting in lieu thereof ‘‘(l)
(10), (12), or (13)’’.
(b) Section 6103(l) of the Code is amended—
(1) in paragraph (10)(B), by striking out ‘‘offi-
cers and employees of an agency receiving return in-
formation under subparagraph (A) shall use such in-
formation’’ and inserting in lieu thereof ‘‘return in-
formation disclosed under subparagraph (A) may be
used by officers and employees of an agency, and by
officers, employees, and agents of the Department of
Education,’’; and
(2) at the end thereof, by adding a new para-
graph to read as follows:
‘‘(13) DISCLOSURE OF RETURN INFORMATION
TO CARRY OUT INCOME CONTINGENT REPAYMENT
OF STUDENT LOANS.—
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‘‘(A) IN
GENERAL.—The Secretary may,
upon written request from the Secretary of
Education, disclose to officers and employees of
the Department of Education return informa-
tion with respect to a taxpayer who has received
a Federal loan under a student loan program
and whose loan repayment amounts are based
in whole or in part on the taxpayer’s income.
Such return information shall be limited to—
‘‘(i) taxpayer identity information
with respect to such taxpayer;
‘‘(ii) the filing status of such tax-
payer; and
‘‘(iii) the adjusted gross income of
such taxpayer (as defined in section 62).
‘‘(B) RESTRICTION ON USE OF DISCLOSED
INFORMATION.—Return information disclosed
under subparagraph (A) may be used by offi-
cers, employees, and agents of the Department
of Education only for the purposes of, and to
the extent necessary in, establishing an appro-
priate income contingent repayment level under
a student loan program.
‘‘(C) DEFINITIONS.—For purposes of this
paragraph, the term ‘student loan program’
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means the program authorized under part D of
title IV of the Higher Education Act of 1965
and includes loans under parts B and E of title
IV the Higher Education Act of 1965 that are
in default and have been assigned to the De-
partment of Education.’’.
(c) Section 6103(m)(4) of the Code is amended—
(1) in the heading, by inserting ‘‘OWE
AN
OVERPAYMENT
ON
FEDERAL
PELL
GRANTS
OR’’ immediately after ‘‘INDIVIDUALS WHO’’;
(2) in subparagraph (A)—
(A) by redesignating clauses (i) and (ii) as
subclauses (I) and (II); and
(B) by striking out ‘‘of any taxpayer who’’
and inserting in lieu thereof ‘‘of any taxpayer—
‘‘(i) who owes an overpayment of a
grant awarded to that taxpayer under sub-
part 1 of part A of title IV of the Higher
Education Act of 1965, or
‘‘(ii) who’’;
(3) in subparagraph (B)—
(A) in clause (i), by striking out ‘‘under
part B’’ and inserting in lieu thereof ‘‘under
part B or D’’; and
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(B) in clause (ii), by striking out ‘‘under
part E’’ and inserting in lieu thereof ‘‘under
subpart 1 of part A, part D, or E’’;
(d) Section 6103(p) of the Code is amended—
(1) in paragraph (3)(A), by striking out ‘‘(11),
or (12), (m)’’ and inserting in lieu thereof ‘‘(11),
(12), or (13), (m)’’;
(2) in paragraph (4)—
(A) in the matter preceding subparagraph
(A), by striking out ‘‘(10), or (11),’’ and insert-
ing in lieu thereof ‘‘(10), (11), or (13),’’;
(B) in subparagraph (F)(ii), by striking
out ‘‘(11), or (12),’’ and inserting in lieu there-
of ‘‘(11), (12), or (13),’’; and
(C) in the flush left material after sub-
paragraph (F), by striking out ‘‘under sub-
section (1)(12)(B)’’ and inserting in lieu thereof
‘‘under paragraph (10), (12)(B), or (13) of sub-
section (1)’’.
(e) Subchapter A of chapter 64 of the Code is further
amended by adding at the end thereof the following new
section:
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‘‘SEC. 6306. COLLECTION OF PAYMENTS ON FEDERAL DI-
RECT STUDENT LOANS.
‘‘Upon a determination by the President under sec-
tion 457(c)(2) of the Higher Education Act of 1965 con-
cerning the implementation of a plan for the repayment
of Federal Direct Student Loans through wage withhold-
ing or other means by the Internal Revenue Service, the
Secretary of the Treasury may enter into an agreement
with the Secretary of Education to provide for the collec-
tion of payments on loans made pursuant to part D of
title IV of such Act. Notwithstanding any other provision
of law, the Secretary of the Treasury may assess and col-
lect such payments as though they were additional income
taxes due, and may establish such procedures and conven-
tions as are necessary under such agreement, including
those related to withholding, payment of estimated tax,
allocation of payments, and dispute resolution.’’.
(f) Section 7213(a)(2) of the Code is amended by
striking out ‘‘(10) or (12)’’ and inserting in lieu thereof
‘‘(10), (12), or (13),’’.
AMENDMENT TO THE BALANCED BUDGET AND
EMERGENCY DEFICIT CONTROL ACT OF 1985
SEC. 222. The Balanced Budget and Emergency Def-
icit Control Act of 1985 is amended—
(1) in section 252(c)(1)(B), by striking out
‘‘guaranteed’’;
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(2) in section 256(b)—
(A) by striking out the subsection heading
and inserting in lieu thereof the following: ‘‘EF-
FECT
OF
ORDERS
ON
STUDENT
LOAN
PRO-
GRAMS.—’’;
(B) by inserting immediately after the
paragraph heading the following: ‘‘FEDERAL
FAMILY EDUCATION LOAN PROGRAM.—(A)’’;
(C) by redesignating paragraphs (2) and
(3) as subparagraphs (A) and (B), respectively;
(D) in paragraph (1)(A) (as redesignated
in subparagraph (B)), by striking out ‘‘de-
scribed in paragraphs (2) and (3)’’ and insert-
ing in lieu thereof ‘‘described in subparagraphs
(B) and (C)’’;
(E) in paragraph (1)(B) (as redesignated
in subparagraph (C)), by redesignating sub-
paragraphs (A) and (B) as clauses (i) and (ii),
respectively; and
(F) by adding at the end thereof the fol-
lowing new paragraph:
‘‘(1) FEDERAL
DIRECT
STUDENT
LOAN
PRO-
GRAM.—(A) Any reductions that are required to be
achieved from the Federal Direct Student Loan pro-
gram operated under part D of title IV of the
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Higher Education Act of 1965 as a consequence of
an order issued pursuant to section 254, shall be
achieved only by the application of the measures de-
scribed in subparagraph (B).
‘‘(B) For any loan made during the period be-
ginning on the date that an order issued under sec-
tion 254 takes effect with respect to a fiscal year,
and ending at the close of such fiscal year, the loan
fee that is authorized to be collected pursuant to
section 456(c) of such Act shall be increased by 0.50
percent.’’.
TITLE III—EFFECTIVE DATES
SEC. 301. (a) Except as otherwise provided in this
section, the amendments made by this title shall be effec-
tive upon enactment.
(b) The amendments made by section 213 of this Act
shall be effective for loans made in accordance with section
428 for periods of instruction beginning on or after July
1, 1993, or made on or after July 1, 1993, in the case
of loans made in accordance with section 428A, 428B, or
428C of the Act.
(c) The amendments made by section 216 of this Act
shall be effective on October 1, 1994.
(d) The amendments made by section 217 of this Act
shall be effective for loans made on or after July 1, 1994.
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