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Payment under title XIX may be made for any
quarter with respect to a State plan or plan amendment
in effect during such quarter, if submitted in or prior to
such quarter and approved in that or any subsequent
quarter.
PAYMENTS TO HEALTH CARE TRUST FUNDS
For payment to the Federal Hospital Insurance
and the Federal Supplementary Medical Insurance Trust
Funds, as provided under sections 217(g) and 1844 of
the Social Security Act, sections 103(c) and 111(d) of
the Social Security Amendments of 1965, section 278(d)
of Public Law 97–248, and for administrative expenses
incurred pursuant to section 201(g) of the Social Secu-
rity Act, $60,079,000,000.
PROGRAM MANAGEMENT
For carrying out, except as otherwise provided, ti-
tles XI, XVIII, and XIX of the Social Security Act, title
XIII of the Public Health Service Act, and the Clinical
Laboratory Improvement Amendments of 1988, not to
exceed $1,735,125,000 to be transferred from the Fed-
eral Hospital Insurance and the Federal Supplementary
Medical Insurance Trust Funds, as authorized by section
201(g) of the Social Security Act; together with all funds
collected in accordance with section 353 of the Public
Health Service Act, the latter funds to remain available
until expended, together with such sums as may be col-
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lected from authorized user fees and the sale of data,
which shall remain available until expended: Provided,
That all funds derived in accordance with 31 U.S.C.
9701 from organizations established under title XIII of
the Public Health Service Act are to be credited to and
available for carrying out the purposes of this appropria-
tion.
HEALTH MAINTENANCE ORGANIZATION LOAN AND LOAN
GUARANTEE FUND
For carrying out subsections (d) and (e) of section
1308 of the Public Health Service Act, any amounts re-
ceived by the Secretary in connection with loans and loan
guarantees under title XIII of the Public Health Service
Act, to be available without fiscal year limitation for the
payment of outstanding obligations. During fiscal year
1997, no commitments for direct loans or loan guaran-
tees shall be made.
ADMINISTRATION FOR CHILDREN AND FAMILIES
FAMILY SUPPORT PAYMENTS TO STATES
For making payments of such sums as necessary
to each State for carrying out the program of Aid to
Families with Dependent Children under title IV–A of
the Social Security Act in fiscal year 1997 before the ef-
fective date of the program of Temporary Assistance to
Needy Families (TANF) with respect to such State: Pro-
vided, That the sum of the amounts available to a State
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with respect to expenditures under such title IV–A in fis-
cal year 1997 under this appropriation and under such
title IV–A as amended by the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996 shall not
exceed the limitations under section 116(b) of such Act.
For making payments to States for carrying out
title IV–A (other than section 402(g)(6)) of the Social
Security Act in calendar quarters prior to October 1,
1996, such sums as may be necessary.
For making payments to States or other non-Fed-
eral entities under titles I, IV–D, X, XI, XIV, and XVI
of the Social Security Act and the Act of July 5, 1960
(24 U.S.C. ch. 9), $2,158,000,000 to remain available
until expended.
For making, after May 31 of the current fiscal
year, payments to States or other non-Federal entities
under titles I, IV–D, X, XI, XIV, and XVI of the Social
Security Act, for the last three months of the current
year for unanticipated costs, incurred for the current fis-
cal year, such sums as may be necessary.
For making payments to States or other non-Fed-
eral entities under titles I, IV–D, X, XI, XIV, and XVI
of the Social Security Act and the Act of July 5, 1960
(24 U.S.C. ch. 9) for the first quarter of fiscal year
1998, $607,000,000, to remain available until expended.
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JOB OPPORTUNITIES AND BASIC SKILLS
For carrying out aid to families with dependent
children work programs, as authorized by part F of title
IV of the Social Security Act, $1,000,000,000.
LOW INCOME HOME ENERGY ASSISTANCE
For making payments under title XXVI of the
Omnibus 
Budget 
Reconciliation 
Act 
of 
1981,
$1,000,000,000.
For making payments under title XXVI of the
Omnibus 
Budget 
Reconciliation 
Act 
of 
1981,
$1,000,000,000, to be available for obligation in the pe-
riod October 1, 1997 through September 30, 1998.
REFUGEE AND ENTRANT ASSISTANCE
For making payments for refugee and entrant as-
sistance activities authorized by title IV of the Immigra-
tion and Nationality Act and section 501 of the Refugee
Education Assistance Act of 1980 (Public Law 96–422),
$412,076,000: Provided, That funds appropriated pursu-
ant to section 414(a) of the Immigration and Nationality
Act under Public Law 103–333 for fiscal year 1995 shall
be available for the costs of assistance provided and other
activities conducted in such year and in fiscal years 1996
and 1997.
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CHILD CARE AND DEVELOPMENT BLOCK GRANT
(INCLUDING TRANSFER OF FUNDS)
For carrying out sections 658A through 658R of
the Omnibus Budget Reconciliation Act of 1981 (The
Child Care and Development Block Grant Act of 1990),
$956,120,000, of which $937,000,000 shall become avail-
able on October 1, 1997 and shall remain available
through 
September 
30, 
1998: 
Provided, 
That
$19,120,000 shall become available for obligation on Oc-
tober 1, 1996 for child care resource and referral and
school-aged child care activities, of which $6,120,000
shall be derived from an amount that shall be transferred
from the amount appropriated under section 452(j) of
the Social Security Act (42 U.S.C. 652(j)) for fiscal year
1996 and remaining available for expenditure.
SOCIAL SERVICES BLOCK GRANT
For making grants to States pursuant to section
2002 of the Social Security Act, $2,500,000,000: Pro-
vided, That notwithstanding section 2003(c) of such Act,
as amended, the amount specified for allocation under
such section for fiscal year 1997 shall be $2,500,000,000.
CHILDREN AND FAMILIES SERVICES PROGRAMS
(INCLUDING RESCISSIONS)
For carrying out, except as otherwise provided,
the Runaway and Homeless Youth Act, the Developmen-
tal Disabilities Assistance and Bill of Rights Act, the
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Head Start Act, the Child Abuse Prevention and Treat-
ment Act, the Temporary Child Care for Children with
Disabilities and Crisis Nurseries Act of 1986, section
429A, part B of title IV of the Social Security Act, sec-
tion 413 of the Social Security Act, the Family Violence
Prevention and Services Act, the Native American Pro-
grams Act of 1974, title II of Public Law 95–266 (adop-
tion opportunities), the Abandoned Infants Assistance
Act of 1988, and part B(1) of title IV of the Social Secu-
rity Act; for making payments under the Community
Services Block Grant Act; and for necessary administra-
tive expenses to carry out said Acts and titles I, IV, X,
XI, XIV, XVI, and XX of the Social Security Act, the
Act of July 5, 1960 (24 U.S.C. ch. 9), the Omnibus
Budget Reconciliation Act of 1981, title IV of the Immi-
gration and Nationality Act, section 501 of the Refugee
Education Assistance Act of 1980, and section 126 and
titles IV and V of Public Law 100–485, $5,363,569,000,
of which $536,432,000 shall be for making payments
under the Community Services Block Grant Act: Pro-
vided, That to the extent Community Services Block
Grant funds are distributed as grant funds by a State to
an eligible entity as provided under the Act, and have not
been expended by such entity, they shall remain with
such entity for carryover into the next fiscal year for ex-
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penditure by such entity consistent with program pur-
poses: Provided further, That of the amount appropriated
for fiscal year 1997 under section 672(a) of the Commu-
nity Services Block Grant Act, the Secretary shall use up
to one percent of the funds available to correct allocation
errors that occurred in fiscal year 1995 and fiscal year
1996 to ensure that the minimum allotment to each
State for each of fiscal years 1995 and 1996 would be
$2,222,460: Provided further, That no more than one-half
of one percent of the funds available under section 672(a)
shall be used for the purposes of section 674(a) of the
Community Services Block Grant Act.
In addition, $20,000,000, to be derived from the
Violent Crime Reduction Trust Fund, for carrying out
sections 40155, 40211 and 40241 of Public Law 103–
322.
Funds appropriated for fiscal year 1996 and fiscal
year 1997 under section 429A(e), part B of title IV of
the Social Security Act shall be reduced by $6,000,000
in each such year.
Funds appropriated for fiscal year 1997 under
section 413(h)(1) of the Social Security Act shall be re-
duced by $15,000,000.
FAMILY PRESERVATION AND SUPPORT
For carrying out section 430 of the Social Secu-
rity Act, $240,000,000.
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PAYMENTS TO STATES FOR FOSTER CARE AND ADOPTION
ASSISTANCE
For making payments to States or other non-Fed-
eral entities, under title IV–E of the Social Security Act,
$4,445,031,000.
For making payments to States or other non-Fed-
eral entities, under title IV–E of the Social Security Act,
for the first quarter of fiscal year 1998, $1,111,000,000.
ADMINISTRATION ON AGING
AGING SERVICES PROGRAMS
For carrying out, to the extent not otherwise pro-
vided, the Older Americans Act of 1965, as amended,
$830,168,000: Provided, That notwithstanding section
308(b)(1) of such Act, the amounts available to each
State for administration of the State plan under title III
of such Act shall be reduced not more than 5 percent
below the amount that was available to such State for
such purpose for fiscal year 1995: Provided further, That
in considering grant applications for nutrition services for
elder Indian recipients, the Assistant Secretary shall pro-
vide maximum flexibility to applicants who seek to take
into account subsistence, local customs and other charac-
teristics that are appropriate to the unique cultural, re-
gional and geographic needs of the American Indian,
Alaskan and Hawaiian native communities to be served.
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OFFICE OF THE SECRETARY
GENERAL DEPARTMENTAL MANAGEMENT
For necessary expenses, not otherwise provided,
for general departmental management, including hire of
six sedans, and for carrying out titles III, XVII, and XX
of the Public Health Service Act, $174,523,000, together
with $5,851,000, to be transferred and expended as au-
thorized by section 201(g)(1) of the Social Security Act
from the Hospital Insurance Trust Fund and the Supple-
mental Medical Insurance Trust Fund: Provided, That of
the funds made available under this heading for carrying
out title XVII of the Public Health Service Act,
$11,500,000 shall be available until expended for extra-
mural construction: Provided further, That notwithstand-
ing section 2010 (b) and (c) under title XX of the Public
Health Service Act, as amended, of the funds made avail-
able under this heading, $10,879,000 shall be for activi-
ties specified under section 2003(b)(2) of title XX of the
Public Health Service Act, as amended, and of which
$9,011,000 shall be for prevention grants under section
510(b)(2) of title V of the Social Security Act, as amend-
ed: Provided further, That of the amount provided,
$5,775,000 is designated by Congress as an emergency
requirement pursuant to section 251(b)(2)(D)(i) of the
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Balanced Budget and Emergency Deficit Control Act of
1985, as amended.
OFFICE OF INSPECTOR GENERAL
For expenses necessary for the Office of Inspector
General in carrying out the provisions of the Inspector
General Act of 1978, as amended, $32,999,000, together
with any funds, to remain available until expended, that
represent the equitable share from the forfeiture of prop-
erty in investigations in which the Office of Inspector
General participated, and which are transferred to the
Office of Inspector General by the Department of Jus-
tice, the Department of the Treasury, or the United
States Postal Service.
OFFICE FOR CIVIL RIGHTS
For expenses necessary for the Office for Civil
Rights, $16,216,000, together with not to exceed
$3,314,000, to be transferred and expended as author-
ized by section 201(g)(1) of the Social Security Act from
the Hospital Insurance Trust Fund and the Supple-
mental Medical Insurance Trust Fund.
POLICY RESEARCH
For carrying out, to the extent not otherwise pro-
vided, research studies under section 1110 of the Social
Security Act and section 301(l) of Public Law 104–191,
$18,500,000: Provided, That $9,500,000, to remain
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available until September 30, 1998, shall be for carrying
out section 301(l) of Public Law 104–191.
GENERAL PROVISIONS
SEC. 201. Funds appropriated in this title shall be
available for not to exceed $37,000 for official reception
and representation expenses when specifically approved
by the Secretary.
SEC. 202. The Secretary shall make available
through assignment not more than 60 employees of the
Public Health Service to assist in child survival activities
and to work in AIDS programs through and with funds
provided by the Agency for International Development,
the United Nations International Children’s Emergency
Fund or the World Health Organization.
SEC. 203. None of the funds appropriated under
this Act may be used to implement section 399L(b) of
the Public Health Service Act or section 1503 of the Na-
tional Institutes of Health Revitalization Act of 1993,
Public Law 103–43.
SEC. 204. None of the funds made available by
this Act may be used to withhold payment to any State
under the Child Abuse Prevention and Treatment Act by
reason of a determination that the State is not in compli-
ance with section 1340.2(d)(2)(ii) of title 45 of the Code
of Federal Regulations. This provision expires upon the
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date of enactment of the reauthorization of the Child
Abuse Prevention and Treatment Act.
SEC. 205. None of the funds appropriated in this
Act for the National Institutes of Health and the Sub-
stance Abuse and Mental Health Services Administration
shall be used to pay the salary of an individual, through
a grant or other extramural mechanism, at a rate in ex-
cess of $125,000 per year.
SEC. 206. None of the funds appropriated in this
Act may be expended pursuant to section 241 of the Pub-
lic Health Service Act, except for funds specifically pro-
vided for in this Act, or for other taps and assessments
made by any office located in the Department of Health
and Human Services, prior to the Secretary’s preparation
and submission of a report to the Committee on Appro-
priations of the Senate and of the House detailing the
planned uses of such funds.
(TRANSFER OF FUNDS)
SEC. 207. Of the funds appropriated or otherwise
made available for the Department of Health and Human
Services, General Departmental Management, for fiscal
year 1997, the Secretary of Health and Human Services
shall transfer to the Office of the Inspector General such
sums as may be necessary for any expenses with respect
to the provision of security protection for the Secretary
of Health and Human Services.
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SEC. 208. None of the funds appropriated in this
Act may be obligated or expended for the Federal Council
on Aging under the Older Americans Act or the Advisory
Board on Child Abuse and Neglect under the Child
Abuse Prevention and Treatment Act.
(TRANSFER OF FUNDS)
SEC. 209. Not to exceed 1 percent of any discre-
tionary funds (pursuant to the Balanced Budget and
Emergency Deficit Control Act, as amended) which are
appropriated for the current fiscal year for the Depart-
ment of Health and Human Services in this Act may be
transferred between appropriations, but no such appro-
priation shall be increased by more than 3 percent by any
such transfer: Provided, That the Appropriations Com-
mittees of both House of Congress are notified at least
fifteen days in advance of any transfer.
(TRANSFER OF FUNDS)
SEC. 210. The Director of the National Institutes
of Health, jointly with the Director of the Office of AIDS
Research, may transfer up to 3 percent among institutes,
centers, and divisions from the total amounts identified
by these two Directors as funding for research pertaining
to the human immunodeficiency virus: Provided, That the
Congress is promptly notified of the transfer.
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(TRANSFER OF FUNDS)
SEC. 211. Of the amounts made available in this
Act for the National Institutes of Health, the amount for
research related to the human immunodeficiency virus, as
jointly determined by the Director of NIH and the Direc-
tor of the Office of AIDS Research, shall be made avail-
able to the ‘‘Office of AIDS Research’’ account. The Di-
rector of the Office of AIDS Research shall transfer from
such account amounts necessary to carry out section
2353(d)(3) of the Public Health Service Act.
SEC. 212. Not later than January 1, 1997, the
Administrator of the Health Care Financing Administra-
tion, with the advice and technical assistance of the
Agency for Health Care Policy and Research, shall trans-
mit to the appropriate committees of the Congress a re-
port including—
(1) a review of all available studies and research
data on the treatment of end-stage emphysema and
chronic obstructive pulmonary disease by both unilateral
and bilateral lung volume reduction surgery, involving
both invasive and noninvasive surgery and supplemental
surgical methods, including laser applications; and
(2) a recommendation, based on such review, as to
the appropriateness of Medicare coverage of such proce-
dures and the conditions, if necessary, that facilities and
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physicians should be required to meet, to ensure the effi-
cacy of such procedures, as more detailed clinical studies
are conducted.
SEC. 213. Section 304(a)(1) of the Family Vio-
lence 
Prevention 
and 
Services 
Act 
(42 
U.S.C.
10403(a)(1)) is amended by striking ‘‘$200,000’’ and in-
serting ‘‘$400,000’’.
SEC. 214. The new clinical research center at the
National Institutes of Health is hereby named the Mark
O. Hatfield Clinical Research Center.
SEC. 215. Section 345 of Public Law 104–193 is
amended by replacing ‘‘section 457(a)’’ wherever it ap-
pears with ‘‘a plan approved under this part’’. Amounts
available under such section shall be calculated as though
such section were effective October 1, 1995.
This title may be cited as the ‘‘Department of
Health and Human Services Appropriations Act, 1997’’.
TITLE III—DEPARTMENT OF EDUCATION
EDUCATION REFORM
For carrying out activities authorized by titles III
and IV of the Goals 2000: Educate America Act and the
School-to-Work Opportunities Act, $691,000,000, of
which $476,000,000 for the Goals 2000: Educate Amer-
ica Act and $200,000,000 for the School-to-Work Oppor-
tunities Act shall become available on July 1, 1997, and
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remain available through September 30, 1998: Provided,
That none of the funds appropriated under this heading
shall be obligated or expended to carry out section
304(a)(2)(A) of the Goals 2000: Educate America Act.
EDUCATION FOR THE DISADVANTAGED
For carrying out title I of the Elementary and
Secondary Education Act of 1965, and section 418A of
the Higher Education Act, $7,698,469,000, of which
$6,380,114,000 shall become available on July 1, 1997,
and shall remain available through September 30, 1998,
and of which $1,298,386,000 shall become available on
October 1, 1997 and shall remain available through Sep-
tember 30, 1998, for academic year 1997–1998: Pro-
vided, That $6,194,850,000 shall be available for basic
grants under section 1124: Provided further, That up to
$3,500,000 of these funds shall be available to the Sec-
retary on October 1, 1996, to obtain updated local-edu-
cational-agency-level census poverty data from the Bu-
reau of the Census: Provided further, That $999,249,000
shall be available for concentration grants under section
1124(A) and $7,000,000 shall be available for evalua-
tions under section 1501.
IMPACT AID
For carrying out programs of financial assistance
to federally affected schools authorized by title VIII of
the Elementary and Secondary Education Act of 1965,
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$730,000,000, of which $615,500,000 shall be for basic
support payments under section 8003(b), $40,000,000
shall be for payments for children with disabilities under
section 8003(d), $52,000,000, to remain available until
expended, shall be for payments under section 8003(f),
$5,000,000 shall be for construction under section 8007,
and $17,500,000 shall be for Federal property payments
under section 8002.
SCHOOL IMPROVEMENT PROGRAMS
For carrying out school improvement activities au-
thorized by titles II, IV–A–1, V–A and B, VI, IX, X and
XIII of the Elementary and Secondary Education Act of
1965; the Stewart B. McKinney Homeless Assistance
Act; and the Civil Rights Act of 1964; $1,425,631,000,
of which $1,202,478,000 shall become available on July
1, 1997, and remain available through September 30,
1998: Provided, That of the amount appropriated,
$310,000,000 shall be for Eisenhower professional devel-
opment State grants under title II–B and $310,000,000
shall be for innovative education program strategies State
grants under title VI–A.
BILINGUAL AND IMMIGRANT EDUCATION
For carrying out, to the extent not otherwise pro-
vided, bilingual, foreign language and immigrant edu-
cation activities authorized by parts A and C and section
7203 of title VII of the Elementary and Secondary Edu-
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cation 
Act, 
without 
regard 
to 
section 
7103(b),
$261,700,000, of which $100,000,000 shall be for immi-
grant education programs authorized by part C: Pro-
vided, That State educational agencies may use all, or
any part of, their part C allocation for competitive grants
to local educational agencies: Provided further, That the
Department of Education should only support instruc-
tional programs which ensure that students completely
master English in a timely fashion (a period of three to
five years) while meeting rigorous achievement standards
in the academic content areas.
SPECIAL EDUCATION
For carrying out parts B, C, D, E, F, G, and H
and section 610(j)(2)(C) of the Individuals with Disabil-
ities 
Education 
Act, 
$4,036,000,000, 
of 
which
$3,783,685,000 shall become available for obligation on
July 1, 1997, and shall remain available through Septem-
ber 30, 1998: Provided, That the Republic of the Mar-
shall Islands, the Federated States of Micronesia, and
the Republic of Palau shall continue to be eligible to re-
ceive funds under the Individuals with Disabilities Edu-
cation Act consistent with the provisions of Public Law
104–134: Provided further, That the entities that received
competitive awards for direct services to children under
section 611 of the Individuals with Disabilities Education
Act in accordance with the competition required in Public
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Law 104–134 shall continue to be funded, without com-
petition, in the same amounts as under Public Law 104–
134.
REHABILITATION SERVICES AND DISABILITY RESEARCH
For carrying out, to the extent not otherwise pro-
vided, the Rehabilitation Act of 1973, the Technology-Re-
lated Assistance for Individuals with Disabilities Act, and
the Helen Keller National Center Act, as amended,
$2,509,447,000.
SPECIAL INSTITUTIONS FOR PERSONS WITH
DISABILITIES
AMERICAN PRINTING HOUSE FOR THE BLIND
For carrying out the Act of March 3, 1879, as
amended (20 U.S.C. 101 et seq.), $6,680,000.
NATIONAL TECHNICAL INSTITUTE FOR THE DEAF
For the National Technical Institute for the Deaf
under titles I and II of the Education of the Deaf Act
of 1986 (20 U.S.C. 4301 et seq.), $43,041,000: Provided,
That from the amount available, the Institute may at its
discretion use funds for the endowment program as au-
thorized under section 207.
GALLAUDET UNIVERSITY
For the Kendall Demonstration Elementary
School, the Model Secondary School for the Deaf, and
the partial support of Gallaudet University under titles I
and II of the Education of the Deaf Act of 1986 (20
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U.S.C. 4301 et seq.), $79,182,000: Provided, That from
the amount available, the University may at its discretion
use funds for the endowment program as authorized
under section 207.
VOCATIONAL AND ADULT EDUCATION
For carrying out, to the extent not otherwise pro-
vided, the Carl D. Perkins Vocational and Applied Tech-
nology Education Act, the Adult Education Act, and the
National Literacy Act of 1991, $1,486,531,000, of which
$4,500,000 shall be for the National Institute for Lit-
eracy; and of which $1,483,612,000 shall become avail-
able on July 1, 1997 and shall remain available through
September 30, 1998: Provided, That, of the amounts
made available for title II of the Carl D. Perkins Voca-
tional 
and 
Applied 
Technology 
Education 
Act,
$4,500,000 shall be used by the Secretary for national
programs under title IV, without regard to section 451:
Provided further, That, in addition, the Secretary may re-
serve up to $9,000,000 under section 101(a)(1)(A) of the
Carl D. Perkins Vocational and Applied Technology Edu-
cation Act, without regard to section 451: Provided fur-
ther, That the Secretary may reserve up to $5,000,000
under section 313(d) of the Adult Education Act for ac-
tivities carried out under section 383 of that Act: Pro-
vided further, That no funds shall be awarded to a State
Council under section 112(f) of the Carl D. Perkins Vo-
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cational and Applied Technology Education Act, and no
State shall be required to operate such a Council.
STUDENT FINANCIAL ASSISTANCE
For carrying out subparts 1, 3, and 4, of part A,
part C and part E of title IV of the Higher Education
Act of 1965, as amended, $7,560,407,000, which shall
remain available through September 30, 1998.
The maximum Pell Grant for which a student
shall be eligible during award year 1997–1998 shall be
$2,700: Provided, That notwithstanding section 401(g) of
the Act, if the Secretary determines, prior to publication
of the payment schedule for such award year, that the
amount included within this appropriation for Pell Grant
awards in such award year, and any funds available from
the fiscal year 1996 appropriation for Pell Grant awards,
are insufficient to satisfy fully all such awards for which
students are eligible, as calculated under section 401(b)
of the Act, the amount paid for each such award shall
be reduced by either a fixed or variable percentage, or by
a fixed dollar amount, as determined in accordance with
a schedule of reductions established by the Secretary for
this purpose.
FEDERAL FAMILY EDUCATION LOAN PROGRAM ACCOUNT
For Federal administrative expenses to carry out
guaranteed student loans authorized by title IV, part B,
of the Higher Education Act, as amended, $46,572,000.
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HIGHER EDUCATION
For carrying out, to the extent not otherwise pro-
vided, parts A and B of title III, without regard to sec-
tion 360(a)(1)(B)(ii), titles IV, V, VI, VII, and IX, part
A and subpart 1 of part B of title X, and title XI of the
Higher Education Act of 1965, as amended, Public Law
102–423 and the Mutual Educational and Cultural Ex-
change Act of 1961; $879,054,000, of which $15,673,000
for interest subsidies under title VII of the Higher Edu-
cation Act, as amended, shall remain available until ex-
pended: Provided, That funds available for part D of title
IX of the Higher Education Act shall be available to fund
noncompeting continuation awards for academic year
1997–1998 for fellowships awarded originally under part
B of title IX of said Act, under the terms and conditions
of part B: Provided further, That $5,931,000 of the
funds available for part D of title IX of the Higher Edu-
cation Act shall be available to fund new and noncompet-
ing continuation awards for academic year 1997–1998
for fellowships awarded under part C of title IX of said
Act, under the terms and conditions of part C: Provided
further, That notwithstanding sections 419D, 419E, and
419H of the Higher Education Act, as amended, scholar-
ships made under title IV, part A, subpart 6 shall be pro-
rated to maintain the same number of new scholarships
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in fiscal year 1997 as in fiscal year 1996: Provided fur-
ther, That $3,000,000, to remain available until ex-
pended, shall be for the George H.W. Bush fellowship
program, if authorized by April 1, 1997: Provided further,
That $3,000,000, to remain available until expended,
shall be for the Edmund S. Muskie Foundation to estab-
lish an endowment fund to provide income to support
such foundation on a continuing basis, if authorized by
April 1, 1997: Provided further, That $3,000,000, to re-
main available until expended, shall be for the Claiborne
Pell Institute for International Relations and Public Pol-
icy at Salve Regina University in Newport, Rhode Island,
if authorized by April 1, 1997: Provided further, That
$1,000,000, to remain available until expended, shall be
for the Calvin Coolidge Memorial Foundation, if author-
ized by April 1, 1997: Provided further, That, of the
amounts made available under title X, part A of the
Higher Education Act, $2,000,000 shall be awarded to
the Pennsylvania Educational Telecommunications Ex-
change Network.
HOWARD UNIVERSITY
For partial support of Howard University (20
U.S.C. 121 et seq.), $196,000,000: Provided, That from
the amount available, the University may at its discretion
use funds for the endowment program as authorized
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under the Howard University Endowment Act (Public
Law 98–480).
HIGHER EDUCATION FACILITIES LOANS
The Secretary is hereby authorized to make such
expenditures, within the limits of funds available under
this heading and in accord with law, and to make such
contracts and commitments without regard to fiscal year
limitation, as provided by section 104 of the Government
Corporation Control Act (31 U.S.C. 9104), as may be
necessary in carrying out the program for the current fis-
cal year.
COLLEGE HOUSING AND ACADEMIC FACILITIES LOANS
PROGRAM
For administrative expenses to carry out the exist-
ing direct loan program of college housing and academic
facilities loans entered into pursuant to title VII, part C,
of the Higher Education Act, as amended, $698,000.
COLLEGE HOUSING LOANS
Pursuant to title VII, part C of the Higher Edu-
cation Act, as amended, for necessary expenses of the col-
lege housing loans program, the Secretary shall make ex-
penditures and enter into contracts without regard to fis-
cal year limitation using loan repayments and other re-
sources available to this account. Any unobligated bal-
ances becoming available from fixed fees paid into this
account pursuant to 12 U.S.C. 1749d, relating to pay-
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ment of costs for inspections and site visits, shall be
available for the operating expenses of this account.
HISTORICALLY BLACK COLLEGE AND UNIVERSITY
CAPITAL FINANCING, PROGRAM ACCOUNT
The total amount of bonds insured pursuant to
section 724 of title VII, part B of the Higher Education
Act shall not exceed $357,000,000, and the cost, as de-
fined in section 502 of the Congressional Budget Act of
1974, of such bonds shall not exceed zero.
For administrative expenses to carry out the His-
torically Black College and University Capital Financing
Program entered into pursuant to title VII, part B of the
Higher Education Act, as amended, $104,000.
EDUCATION RESEARCH, STATISTICS, AND IMPROVEMENT
For carrying out activities authorized by the Edu-
cational Research, Development, Dissemination, and Im-
provement Act of 1994, including part E; the National
Education Statistics Act of 1994; section 2102, sections
3132, 3136 and 3141, parts B, C, and D of title III and
parts A, B, I, and K and section 10601 of title X, and
part C of title XIII of the Elementary and Secondary
Education Act of 1965, as amended, and title VI of Pub-
lic 
Law 
103–227, 
$598,350,000: 
Provided, 
That
$200,000,000 shall be for section 3132, $56,965,000
shall be for section 3136 and $10,000,000 shall be for
section 3141 of the Elementary and Secondary Education
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Act: Provided further, That notwithstanding any other
provision of law, one-half of one percent of the amount
available for section 3132 of the Elementary and Second-
ary Education Act of 1965, as amended, shall be set
aside for the outlying areas to be distributed among the
outlying areas on the basis of their relative need as deter-
mined by the Secretary in accordance with the purposes
of the program: Provided further, That, notwithstanding
section 3131(b) of said Act, if any State educational
agency does not apply for a grant under section 3132,
that State’s allotment under section 3131 shall be re-
served by the Secretary for grants to local educational
agencies in the State that apply directly to the Secretary
according to the terms and conditions announced by the
Secretary in the Federal Register: Provided further, That,
of the amount available for title III, part B of the Ele-
mentary and Secondary Education Act of 1965, as
amended, funds shall be awarded to continue the Iowa
Communication Network statewide fiber optic demonstra-
tion and $2,000,000 shall be awarded to the Southeast-
ern Pennsylvania Consortium for Higher Education for
the establishment of local and wide area computer net-
works to provide instructional resources to students and
faculty: Provided further, That none of the funds appro-
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priated in this paragraph may be obligated or expended
for the Goals 2000 Community Partnerships Program.
LIBRARIES
Notwithstanding title VII of this Act, for carrying
out titles I, II, III, and IV of the Library Services and
Construction Act, and title II–B of the Higher Education
Act, $136,369,000, of which $16,369,000 shall be used
to carry out the provisions of title II of the Library Serv-
ices and Construction Act and shall remain available
until expended; and $2,500,000 shall be for section 222
and $5,000,000 shall be for section 223 of the Higher
Education Act: Provided, That $1,000,000 shall be com-
petitively awarded to a nonprofit regional social tolerance
resource center, operating tolerance tools and prejudice
reduction programs and multimedia tolerance and geno-
cide exhibits: Provided further, That $1,500,000 shall be
for the continuation of a demonstration project making
information available for public use by connecting
Internet to a multistate consortium and a historical soci-
ety: Provided further, That $1,000,000 shall be for con-
tinuation of catalog conversion of research and doctoral
institutions and networking of local libraries under the
fiber optics demonstration initiated in Public Law 102–
394 under section 223 of the Higher Education Act: Pro-
vided further, That each State or local recipient of funds
under titles I, II, III, and IV of the Library Services and
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Construction Act may use any such funds to plan for any
library program or activity authorized under title VII of
this Act and conduct any other activity reasonably nec-
essary to provide for an orderly and effective transition
to the operation of library programs or activities under
title VII of this Act.
DEPARTMENTAL MANAGEMENT
PROGRAM ADMINISTRATION
For carrying out, to the extent not otherwise pro-
vided, the Department of Education Organization Act,
including rental of conference rooms in the District of
Columbia and hire of two passenger motor vehicles,
$327,000,000.
OFFICE FOR CIVIL RIGHTS
For expenses necessary for the Office for Civil
Rights, as authorized by section 203 of the Department
of Education Organization Act, $55,000,000.
OFFICE OF THE INSPECTOR GENERAL
For expenses necessary for the Office of the In-
spector General, as authorized by section 212 of the De-
partment of Education Organization Act, $30,000,000.
GENERAL PROVISIONS
SEC. 301. No funds appropriated in this Act may
be used for the transportation of students or teachers (or
for the purchase of equipment for such transportation) in
order to overcome racial imbalance in any school or
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school system, or for the transportation of students or
teachers (or for the purchase of equipment for such
transportation) in order to carry out a plan of racial de-
segregation of any school or school system.
SEC. 302. None of the funds contained in this Act
shall be used to require, directly or indirectly, the trans-
portation of any student to a school other than the school
which is nearest the student’s home, except for a student
requiring special education, to the school offering such
special education, in order to comply with title VI of the
Civil Rights Act of 1964. For the purpose of this section
an indirect requirement of transportation of students in-
cludes the transportation of students to carry out a plan
involving the reorganization of the grade structure of
schools, the pairing of schools, or the clustering of
schools, or any combination of grade restructuring, pair-
ing or clustering. The prohibition described in this sec-
tion does not include the establishment of magnet
schools.
SEC. 303. No funds appropriated under this Act
may be used to prevent the implementation of programs
of voluntary prayer and meditation in the public schools.
SEC. 304. Notwithstanding any other provision of
law, funds available under section 458 of the Higher
Education Act shall not exceed $491,000,000 for fiscal
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year 1997. The Department of Education shall use
$80,000,000 of the amounts provided for payment of ad-
ministrative cost allowances to guaranty agencies for fis-
cal year 1996. For fiscal year 1997, the Department of
Education shall pay administrative costs to guaranty
agencies, calculated on the basis of 0.85 percent of the
total principal amount of loans upon which insurance was
issued on or after October 1, 1996: Provided, That such
administrative costs shall be paid only on the first
$8,200,000,000 of the principal amount of loans upon
which insurance was issued on or after October 1, 1996
by such guaranty agencies, and shall not exceed a total
of $70,000,000. Such payments are to be paid quarterly,
and receipt of such funds and uses of such funds shall
be in accordance with section 428(f) of the Higher Edu-
cation Act.
Notwithstanding section 458 of the Higher Edu-
cation Act, the Secretary may not use funds available
under that section or any other section for subsequent
fiscal years for administrative expenses of the William D.
Ford Direct Loan Program. The Secretary may not re-
quire the return of guaranty agency reserve funds during
fiscal year 1997, except after consultation with both the
Chairmen and ranking members of the House Economic
and Educational Opportunities Committee and the Sen-
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ate Labor and Human Resources Committee. Any reserve
funds recovered by the Secretary shall be returned to the
Treasury of the United States for purposes of reducing
the Federal deficit.
No funds available to the Secretary may be used
for (1) the hiring of advertising agencies or other third
parties to provide advertising services for student loan
programs prior to January 1, 1997, or (2) payment of
administrative fees relating to the William D. Ford Di-
rect Loan Program to institutions of higher education.
SEC. 305. None of the funds appropriated in this
Act may be obligated or expended to carry out section
621(b) of Public Law 101–589.
(TRANSFER OF FUNDS)
SEC. 306. Not to exceed 1 percent of any discre-
tionary funds (pursuant to the Balanced Budget and
Emergency Deficit Control Act, as amended) which are
appropriated for the current fiscal year for the Depart-
ment of Education in this Act may be transferred be-
tween appropriations, but no such appropriation shall be
increased by more than 3 percent by any such transfer:
Provided, That the Appropriations Committees of both
Houses of Congress are notified at least fifteen days in
advance of any transfer.
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SEC. 307. (a) Section 8003(f)(3)(A)(i) of the Ele-
mentary and Secondary Education Act of 1965 (20
U.S.C. 7703(f)(3)(A)(i)) is amended—
(1) in the matter preceding subclause (I), by
striking ‘‘The Secretary’’ and all that follows
through ‘‘greater of—’’ and inserting the following:
‘‘The Secretary, in conjunction with the local edu-
cational agency, shall first determine each of the fol-
lowing:’’;
(2) in each of subclauses (I) through (III), by
striking ‘‘the average’’ each place it appears the first
time in each such subclause and inserting ‘‘The av-
erage’’;
(3) in subclause (I), by striking the semicolon
and inserting a period;
(4) in subclause (II), by striking ‘‘: or’’ and in-
serting a period; and
(5) by adding at the end the following:
‘‘The local educational agency shall select one of
the amounts determined under subclause (I), (II), or
(III) for purposes of the remaining computations under
this subparagraph.’’.
(b) The amendments made by subsection (a) shall
apply with respect to fiscal years beginning with fiscal
year 1995.
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SEC. 308. Section 485(e)(9) of the Higher Edu-
cation Act of 1965 is amended by striking out ‘‘June 30’’
in the second sentence of such section and inserting ‘‘Au-
gust 30’’.
This title may be cited as the ‘‘Department of
Education Appropriations Act, 1997’’.
TITLE IV—RELATED AGENCIES
ARMED FORCES RETIREMENT HOME
For expenses necessary for the Armed Forces Re-
tirement Home to operate and maintain the United
States Soldiers’ and Airmen’s Home and the United
States Naval Home, to be paid from funds available in
the Armed Forces Retirement Home Trust Fund,
$56,204,000, of which $432,000 shall remain available
until expended for construction and renovation of the
physical plants at the United States Soldiers’ and Air-
men’s Home and the United States Naval Home: Pro-
vided, That this appropriation shall not be available for
the payment of hospitalization of members of the Sol-
diers’ and Airmen’s Home in United States Army hos-
pitals at rates in excess of those prescribed by the Sec-
retary of the Army upon recommendation of the Board
of Commissioners and the Surgeon General of the Army.
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CORPORATION FOR NATIONAL AND COMMUNITY SERVICE
DOMESTIC VOLUNTEER SERVICE PROGRAMS, OPERATING
EXPENSES
For expenses necessary for the Corporation for
National and Community Service to carry out the provi-
sions of the Domestic Volunteer Service Act of 1973, as
amended, $213,969,000.
CORPORATION FOR PUBLIC BROADCASTING
For payment to the Corporation for Public Broad-
casting, as authorized by the Communications Act of
1934, an amount which shall be available within limita-
tions specified by that Act, for the fiscal year 1999,
$250,000,000: Provided, That no funds made available to
the Corporation for Public Broadcasting by this Act shall
be used to pay for receptions, parties, or similar forms
of entertainment for Government officials or employees:
Provided further, That none of the funds contained in
this paragraph shall be available or used to aid or sup-
port any program or activity from which any person is
excluded, or is denied benefits, or is discriminated
against, on the basis of race, color, national origin, reli-
gion, or sex.
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FEDERAL MEDIATION AND CONCILIATION SERVICE
SALARIES AND EXPENSES
For expenses necessary for the Federal Mediation
and Conciliation Service to carry out the functions vested
in it by the Labor Management Relations Act, 1947 (29
U.S.C. 171–180, 182–183), including hire of passenger
motor vehicles; and for expenses necessary for the Labor-
Management Cooperation Act of 1978 (29 U.S.C. 175a);
and for expenses necessary for the Service to carry out
the functions vested in it by the Civil Service Reform Act,
Public Law 95–454 (5 U.S.C. chapter 71), $32,579,000
including $1,500,000, to remain available through Sep-
tember 30, 1998, for activities authorized by the Labor-
Management Cooperation Act of 1978 (29 U.S.C. 175a):
Provided, That notwithstanding 31 U.S.C. 3302, fees
charged, up to full-cost recovery, for special training ac-
tivities and for arbitration services shall be credited to
and merged with this account, and shall remain available
until expended: Provided further, That fees for arbitration
services shall be available only for education, training,
and professional development of the agency workforce:
Provided further, That the Director of the Service is au-
thorized to accept on behalf of the United States gifts of
services and real, personal, or other property in the aid
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of any projects or functions within the Director’s jurisdic-
tion.
FEDERAL MINE SAFETY AND HEALTH REVIEW
COMMISSION
SALARIES AND EXPENSES
For expenses necessary for the Federal Mine
Safety and Health Review Commission (30 U.S.C. 801 et
seq.), $6,060,000.
NATIONAL COMMISSION ON LIBRARIES AND
INFORMATION SCIENCE
SALARIES AND EXPENSES
For necessary expenses for the National Commis-
sion on Libraries and Information Science, established by
the Act of July 20, 1970 (Public Law 91–345, as amend-
ed by Public Law 102–95), $897,000.
NATIONAL COUNCIL ON DISABILITY
SALARIES AND EXPENSES
For expenses necessary for the National Council
on Disability as authorized by title IV of the Rehabilita-
tion Act of 1973, as amended, $1,793,000.
NATIONAL EDUCATION GOALS PANEL
For expenses necessary for the National Edu-
cation Goals Panel, as authorized by title II, part A of
the Goals 2000: Educate America Act, $1,500,000.
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NATIONAL LABOR RELATIONS BOARD
SALARIES AND EXPENSES
For expenses necessary for the National Labor
Relations Board to carry out the functions vested in it
by the Labor-Management Relations Act, 1947, as
amended (29 U.S.C. 141–167), and other laws,
$175,000,000: Provided, That no part of this appropria-
tion shall be available to organize or assist in organizing
agricultural laborers or used in connection with investiga-
tions, hearings, directives, or orders concerning bargain-
ing units composed of agricultural laborers as referred to
in section 2(3) of the Act of July 5, 1935 (29 U.S.C.
152), and as amended by the Labor-Management Rela-
tions Act, 1947, as amended, and as defined in section
3(f) of the Act of June 25, 1938 (29 U.S.C. 203), and
including in said definition employees engaged in the
maintenance and operation of ditches, canals, reservoirs,
and waterways when maintained or operated on a mu-
tual, nonprofit basis and at least 95 per centum of the
water stored or supplied thereby is used for farming pur-
poses: Provided further, That none of the funds made
available by this Act shall be used in any way to promul-
gate a final rule (altering 29 CFR part 103) regarding
single location bargaining units in representation cases.
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NATIONAL MEDIATION BOARD
SALARIES AND EXPENSES
For expenses necessary to carry out the provisions
of the Railway Labor Act, as amended (45 U.S.C. 151–
188), including emergency boards appointed by the Presi-
dent, $8,300,000: Provided, That unobligated balances at
the end of fiscal year 1997 not needed for emergency
boards shall remain available for other statutory purposes
through September 30, 1998.
OCCUPATIONAL SAFETY AND HEALTH REVIEW
COMMISSION
SALARIES AND EXPENSES
For expenses necessary for the Occupational Safe-
ty and Health Review Commission (29 U.S.C. 661),
$7,753,000.
PHYSICIAN PAYMENT REVIEW COMMISSION
SALARIES AND EXPENSES
For expenses necessary to carry out section
1845(a) of the Social Security Act, $3,263,000, to be
transferred to this appropriation from the Federal Sup-
plementary Medical Insurance Trust Fund.
PROSPECTIVE PAYMENT ASSESSMENT COMMISSION
SALARIES AND EXPENSES
For expenses necessary to carry out section
1886(e) of the Social Security Act, $3,263,000, to be
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transferred to this appropriation from the Federal Hos-
pital Insurance and the Federal Supplementary Medical
Insurance Trust Funds.
SOCIAL SECURITY ADMINISTRATION
PAYMENTS TO SOCIAL SECURITY TRUST FUNDS
For payment to the Federal Old-Age and Survi-
vors Insurance and the Federal Disability Insurance trust
funds, as provided under sections 201(m), 228(g), and
1131(b)(2) of the Social Security Act, $20,923,000.
In addition, to reimburse these trust funds for ad-
ministrative expenses to carry out sections 9704 and
9706 
of 
the 
Internal 
Revenue 
Code 
of 
1986,
$10,000,000, to remain available until expended.
SPECIAL BENEFITS FOR DISABLED COAL MINERS
For carrying out title IV of the Federal Mine
Safety and Health Act of 1977, $460,070,000, to remain
available until expended.
For making, after July 31 of the current fiscal
year, benefit payments to individuals under title IV of the
Federal Mine Safety and Health Act of 1977, for costs
incurred in the current fiscal year, such amounts as may
be necessary.
For making benefit payments under title IV of the
Federal Mine Safety and Health Act 1977 for the first
quarter of fiscal year 1998, $160,000,000, to remain
available until expended.
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SUPPLEMENTAL SECURITY INCOME PROGRAM
For carrying out titles XI and XVI of the Social
Security Act, section 401 of Public Law 92–603, section
212 of Public Law 93–66, as amended, and section 405
of Public Law 95–216, including payment to the Social
Security trust funds for administrative expenses incurred
pursuant to section 201(g)(1) of the Social Security Act,
$19,372,010,000, to remain available until expended:
Provided, That any portion of the funds provided to a
State in the current fiscal year and not obligated by the
State during that year shall be returned to the Treasury.
From funds provided under the previous para-
graph, not less than $100,000,000 shall be available for
payment to the Social Security trust funds for adminis-
trative expenses for conducting continuing disability re-
views.
In addition, $175,000,000, to remain available
until September 30, 1998, for payment to the Social Se-
curity trust funds for administrative expenses for con-
tinuing disability reviews as authorized by section 103 of
Public Law 104–121 and Supplemental Security Income
administrative work as authorized by Public Law 104–
193. The term ‘‘continuing disability reviews’’ means re-
views and redetermination as defined under section
201(g)(1)(A) of the Social Security Act as amended, and
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reviews and redeterminations authorized under section
211 of Public Law 104–193.
For making, after June 15 of the current fiscal
year, benefit payments to individuals under title XVI of
the Social Security Act, for unanticipated costs incurred
for the current fiscal year, such sums as may be nec-
essary.
For carrying out title XVI of the Social Security
Act for the first quarter of fiscal year 1998,
$9,690,000,000, to remain available until expended.
LIMITATION ON ADMINISTRATIVE EXPENSES
For necessary expenses, including the hire of two
passenger motor vehicles, and not to exceed $10,000 for
official reception and representation expenses, not more
than $5,873,382,000 may be expended, as authorized by
section 201(g)(1) of the Social Security Act or as nec-
essary to carry out sections 9704 and 9706 of the Inter-
nal Revenue Code of 1986 from any one or all of the
trust funds referred to therein: Provided, That reimburse-
ment to the trust funds under this heading for adminis-
trative expenses to carry out sections 9704 and 9706 of
the Internal Revenue Code of 1986 shall be made, with
interest, not later than September 30, 1988: Provided
further, That not less than $1,268,000 shall be for the
Social Security Advisory Board: Provided further, That
unobligated balances at the end of fiscal year 1997 not
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needed for fiscal year 1997 shall remain available until
expended for a state-of-the-art computing network, in-
cluding related equipment and administrative expenses
associated solely with this network.
From funds provided under the previous para-
graph, not less than $200,000,000 shall be available for
conducting continuing disability reviews.
In addition to funding already available under this
heading, and subject to the same terms and conditions,
$310,000,000, to remain available until September 30,
1998, for continuing disability reviews as authorized by
section 103 of Public Law 104–121 and Supplemental
Security Income administrative work as authorized by
Public Law 104–193. The term ‘‘continuing disability re-
views’’ means reviews and redetermination as defined
under section 201(g)(1)(A) of the Social Security Act as
amended, and reviews and redeterminations authorized
under section 211 of Public Law 104–193.
In addition to funding already available under this
heading, and subject to the same terms and conditions,
$234,895,000, which shall remain available until ex-
pended, to invest in a state-of-the-art computing network,
including related equipment and administrative expenses
associated solely with this network, for the Social Secu-
rity Administration and the State Disability Determina-
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tion Services, may be expended from any or all of the
trust funds as authorized by section 201(g)(1) of the So-
cial Security Act.
OFFICE OF INSPECTOR GENERAL
For expenses necessary for the Office of Inspector
General in carrying out the provisions of the Inspector
General Act of 1978, as amended, $6,335,000, together
with not to exceed $31,089,000, to be transferred and ex-
pended as authorized by section 201(g)(1) of the Social
Security Act from the Federal Old-Age and Survivors In-
surance Trust Fund and the Federal Disability Insurance
Trust Fund.
RAILROAD RETIREMENT BOARD
DUAL BENEFITS PAYMENTS ACCOUNT
For payment to the Dual Benefits Payments Ac-
count, authorized under section 15(d) of the Railroad Re-
tirement Act of 1974, $223,000,000, which shall include
amounts becoming available in fiscal year 1997 pursuant
to section 224(c)(1)(B) of Public Law 98–76; and in ad-
dition, an amount, not to exceed 2 percent of the amount
provided herein, shall be available proportional to the
amount by which the product of recipients and the aver-
age benefit received exceeds $223,000,000: Provided,
That the total amount provided herein shall be credited
in 12 approximately equal amounts on the first day of
each month in the fiscal year.
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FEDERAL PAYMENTS TO THE RAILROAD RETIREMENT
ACCOUNTS
For payment to the accounts established in the
Treasury for the payment of benefits under the Railroad
Retirement Act for interest earned on unnegotiated
checks, $300,000, to remain available through September
30, 1998, which shall be the maximum amount available
for payment pursuant to section 417 of Public Law 98–
76.
LIMITATION ON ADMINISTRATION
For necessary expenses for the Railroad Retire-
ment Board for administration of the Railroad Retire-
ment Act and the Railroad Unemployment Insurance
Act, $87,898,000, to be derived in such amounts as de-
termined by the Board from the railroad retirement ac-
counts and from moneys credited to the railroad unem-
ployment insurance administration fund.
LIMITATION ON THE OFFICE OF INSPECTOR GENERAL
For expenses necessary for the Office of Inspector
General for audit, investigatory and review activities, as
authorized by the Inspector General Act of 1978, as
amended, not more than $5,404,000, to be derived from
the railroad retirement accounts and railroad unemploy-
ment insurance account: Provided, That none of the
funds made available in this Act may be transferred to
the Office from the Department of Health and Human
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Services, or used to carry out any such transfer: Provided
further, That none of the funds made available in this
paragraph may be used for any audit, investigation, or
review of the Medicare program.
UNITED STATES INSTITUTE OF PEACE
OPERATING EXPENSES
For necessary expenses of the United States Insti-
tute of Peace as authorized in the United States Institute
of Peace Act, $11,160,000.
TITLE V—GENERAL PROVISIONS
SEC. 501. The Secretaries of Labor, Health and
Human Services, and Education are authorized to trans-
fer unexpended balances of prior appropriations to ac-
counts corresponding to current appropriations provided
in this Act: Provided, That such transferred balances are
used for the same purpose, and for the same periods of
time, for which they were originally appropriated.
SEC. 502. No part of any appropriation contained
in this Act shall remain available for obligation beyond
the current fiscal year unless expressly so provided here-
in.
SEC. 503. (a) No part of any appropriation con-
tained in this Act shall be used, other than for normal
and recognized executive-legislative relationships, for pub-
licity or propaganda purposes, for the preparation, dis-
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tribution, or use of any kit, pamphlet, booklet, publica-
tion, radio, television, or video presentation designed to
support or defeat legislation pending before the Congress,
except in presentation to the Congress itself or any State
legislature, except in presentation to the Congress or any
State legislative body itself.
(b) No part of any appropriation contained in this
Act shall be used to pay the salary or expenses of any
grant or contract recipient, or agent acting for such re-
cipient, related to any activity designed to influence legis-
lation or appropriations pending before the Congress or
any State legislature.
SEC. 504. The Secretaries of Labor and Edu-
cation are each authorized to make available not to ex-
ceed $15,000 from funds available for salaries and ex-
penses under titles I and III, respectively, for official re-
ception and representation expenses; the Director of the
Federal Mediation and Conciliation Service is authorized
to make available for official reception and representation
expenses not to exceed $2,500 from the funds available
for ‘‘Salaries and expenses, Federal Mediation and Con-
ciliation Service’’; and the Chairman of the National Me-
diation Board is authorized to make available for official
reception and representation expenses not to exceed
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$2,500 from funds available for ‘‘Salaries and expenses,
National Mediation Board’’.
SEC. 505. Notwithstanding any other provision of
this Act, no funds appropriated under this Act shall be
used to carry out any program of distributing sterile nee-
dles for the hypodermic injection of any illegal drug un-
less the Secretary of Health and Human Services deter-
mines that such programs are effective in preventing the
spread of HIV and do not encourage the use of illegal
drugs.
SEC. 506. (a) PURCHASE
OF AMERICAN-MADE
EQUIPMENT AND PRODUCTS.—It is the sense of the Con-
gress that, to the greatest extent practicable, all equip-
ment and products purchased with funds made available
in this Act should be American-made.
(b) NOTICE REQUIREMENT.—In providing finan-
cial assistance to, or entering into any contract with, any
entity using funds made available in this Act, the head
of each Federal agency, to the greatest extent prac-
ticable, shall provide to such entity a notice describing
the statement made in subsection (a) by the Congress.
(c) PROHIBITION OF CONTRACTS WITH PERSONS
FALSELY LABELING PRODUCTS AS MADE IN AMERICA.—
If it has been finally determined by a court or Federal
agency that any person intentionally affixed a label bear-
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ing a ‘‘Made in America’’ inscription, or any inscription
with the same meaning, to any product sold in or shipped
to the United States that is not made in the United
States, the person shall be ineligible to receive any con-
tract or subcontract made with funds made available in
this Act, pursuant to the debarment, suspension, and in-
eligibility procedures described in sections 9.400 through
9.409 of title 48, code of Federal Regulations.
SEC. 507. When issuing statements, press re-
leases, requests for proposals, bid solicitations and other
documents describing projects or programs funded in
whole or in part with Federal money, all grantees receiv-
ing Federal funds included in this Act, including but not
limited to State and local governments and recipients of
Federal research grants, shall clearly state (1) the per-
centage of the total costs of the program or project which
will be financed with Federal money, (2) the dollar
amount of Federal funds for the project or program, and
(3) percentage and dollar amount of the total costs of the
project or program that will be financed by nongovern-
mental sources.
SEC. 508. None of the funds appropriated under
this Act shall be expended for any abortion except when
it is made known to the Federal entity or official to
which funds are appropriated under this Act that such
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procedure is necessary to save the life of the mother or
that the pregnancy is the result of an act of rape or in-
cest.
SEC. 509. Notwithstanding any other provision of
law—
(1) no amount may be transferred from an ap-
propriation account for the Departments of Labor,
Health and Human Services, and Education except
as authorized in this or any subsequent appropria-
tion Act, or in the Act establishing the program or
activity for which funds are contained in this Act;
(2) no department, agency, or other entity,
other than the one responsible for administering the
program or activity for which an appropriation is
made in this Act, may exercise authority for the tim-
ing of the obligation and expenditure of such appro-
priation, or for the purpose for which it is obligated
and expended, except to the extent and in the man-
ner otherwise provided in sections 1512 and 1513 of
title 31, United States Code; and
(3) no funds provided under this Act shall be
available for the salary (or any part thereof) of an
employee who is reassigned on a temporary detail
basis to another position in the employing agency or
department or in any other agency or department,
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unless the detail is independently approved by the
head of the employing department of agency.
SEC. 510. None of the funds made available in
this Act may be used for the expenses of an electronic
benefit transfer (EBT) task force.
SEC. 511. None of the funds made available in
this Act may be used to enforce the requirements of sec-
tion 428(b)(1)(U)(iii) of the Higher Education Act of
1965 with respect to any lender when it is made known
to the Federal official having authority to obligate or ex-
pend such funds that the lender has a loan portfolio
under part B of title IV of such Act that is equal to
or less than $5,000,000.
SEC. 512. (a) None of the funds made available
in this Act may be used for—
(1) the creation of a human embryo or embryos
for research purposes; or
(2) research in which a human embryo or em-
bryos are destroyed, discarded, or knowingly sub-
jected to risk of injury or death greater than that
allowed for research on fetuses in utero under 45
CFR 46.208(a)(2) and section 498(b) of the Public
Health Service Act (42 U.S.C. 289g(b)).
(b) For purposes of this section, the term ‘‘human
embryo or embryos’’ include any organism, not protected
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as a human subject under 45 CFR 46 as of the date of
the enactment of this Act, that is derived by fertilization,
parthenogenesis, cloning, or any other means from one or
more human gametes.
SEC. 513. (a) LIMITATION ON USE OF FUNDS
FOR PROMOTION
OF LEGALIZATION
OF CONTROLLED
SUBSTANCES.—None of the funds made available in this
Act may be used for any activity when it is made known
to the Federal official having authority to obligate or ex-
pend such funds that the activity promotes the legaliza-
tion of any drug or other substance included in schedule
I of the schedules of controlled substances established by
section 202 of the Controlled Substances Act (21 U.S.C.
812).
(b) EXCEPTIONS.—The limitation in subsection
(a) shall not apply when it is made known to the Federal
official having authority to obligate or expend such funds
that there is significant medical evidence of a therapeutic
advantage to the use of such drug or other substance or
that Federally-sponsored clinical trials are being con-
ducted to determine therapeutic advantage.
SEC. 514. (a) DENIAL OF FUNDS FOR PREVENT-
ING ROTC ACCESS
TO CAMPUS.—None of the funds
made available in this or any other Departments of
Labor, Health and Human Services, and Education, and
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Related Agencies Appropriations Act for any fiscal year
may be provided by contract or by grant (including a
grant of funds to be available for student aid) to a cov-
ered educational entity if the Secretary of Defense deter-
mines that the covered educational entity has a policy or
practice (regardless of when implemented) that either
prohibits, or in effect prevents—
(1) the maintaining, establishing, or operation
of a unit of the Senior Reserve Officer Training
Corps (in accordance with section 654 of title 10,
United States Code, and other applicable Federal
laws) at the covered educational entity; or
(2) a student at the covered educational entity
from enrolling in a unit of the Senior Reserve Offi-
cer Training Corps at another institution of higher
education.
(b) DENIAL OF FUNDS FOR PREVENTING FED-
ERAL MILITARY RECRUITING ON CAMPUS.—None of the
funds made available in this or any other Departments
of Labor, Health and Human Services, and Education,
and Related Agencies Appropriations Act for any fiscal
year may be provided by contract or by grant (including
a grant of funds to be available for student aid) to a cov-
ered educational entity if the Secretary of Defense deter-
mines that the covered educational entity has a policy or
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practice (regardless of when implemented) that either
prohibits, or in effect prevents—
(1) entry to campuses, or access to students
(who are 17 years of age or older) on campuses, for
purposes of Federal military recruiting; or
(2) access by military recruiters for purposes of
Federal military recruiting to the following informa-
tion pertaining to students (who are 17 years of age
or older) enrolled at the covered educational entity:
(A) student names, addresses, and tele-
phone listings; and
(B) if known, student ages, levels of edu-
cation, and majors.
(c) EXCEPTIONS.—The limitation established in
subsection (a) or (b) shall not apply to a covered edu-
cational entity if the Secretary of Defense determines
that—
(1) the covered educational entity has ceased
the policy or practice described in such subsection;
(2) the institution of higher education involved
has a longstanding policy of pacifism based on his-
torical religious affiliation; or
(3) the institution of higher education involved
is prohibited by the law of any State, or by the order
of any State court, from allowing Senior Reserve Of-
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ficer Training Corps activities or Federal military
recruiting on campus, except that this paragraph
shall apply only during the one-year period begin-
ning on the effective date of this section.
(d) NOTICE OF DETERMINATIONS.—Whenever the
Secretary of Defense makes a determination under sub-
section (a), (b), or (c), the Secretary—
(1) shall transmit a notice of the determination
to the Secretary of Education and to the Congress;
and
(2) shall publish in the Federal Register a no-
tice of the determination and the effect of the deter-
mination on the eligibility of the covered educational
entity for contracts and grants.
(e) SEMIANNUAL
NOTICE
IN
FEDERAL
REG-
ISTER.—The Secretary of Defense shall publish in the
Federal Register once every 6 months a list of each cov-
ered educational entity that is currently ineligible for con-
tracts and grants by reason of a determination of the
Secretary under subsection (a) or (b).
(f) COVERED EDUCATIONAL ENTITY.—For pur-
poses of this section, the term ‘‘covered educational en-
tity’’ means an institution of higher education, or a sub-
element of an institution of higher education.
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(g) EFFECTIVE DATE.—This section shall take ef-
fect upon the expiration of the 180-day period beginning
on the date of the enactment of this Act, by which date
the Secretary of Defense shall have published final regu-
lations in consultation with the Secretary of Education to
carry out this section.
SEC. 515. (a) TECHNICAL
AMENDMENT
TO
OTHER
ROTC 
AND
MILITARY
RECRUITING
PROVI-
SIONS.—Sections 508 and 509 of the Energy and Water
Development Appropriations Act, 1997, are amended by
striking ‘‘when it is made known to the Federal official
having authority to obligate or expend such funds’’ each
place it appears and inserting ‘‘if the Secretary of De-
fense determines’’.
(b) EFFECTIVE DATE.—Sections 508 and 509 of
the Energy and Water Development Appropriations Act,
1997, shall not take effect until the expiration of the
180-day period beginning on the date of the enactment
of this Act, by which date the Secretary of Defense shall
have published final regulations to carry out such sec-
tions (as amended by subsection (a)).
SEC. 516. None of the funds made available in
this Act may be obligated or expended to enter into or
renew a contract with an entity when it is made known
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to the Federal official having authority to obligate or ex-
pend such funds that—
(1) such entity is otherwise a contractor with
the United States and is subject to the requirement
in section 4212(d) of title 38, United States Code,
regarding submission of an annual report to the Sec-
retary of Labor concerning employment of certain
veterans; and
(2) such entity has not submitted a report as
required by that section for the most recent year for
which such requirement was applicable to such en-
tity.
SEC. 517. (a) Notwithstanding any provision of
the Carl D. Perkins Vocational and Applied Technology
Act (as such Act was in effect on September 24, 1990),
a State shall be deemed to have met the requirements of
section 503 of such Act with respect to decisions ap-
pealed by applications filed on April 30, 1993 and Octo-
ber 29, 1993 under section 452(b) of the General Edu-
cation Provisions Act.
(b) Subsection (a) shall take effect on October 1,
1996.
SEC. 518. None of the funds appropriated in this
Act may be made available to any entity under title X
of the Public Health Service Act unless it is made known
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to the Federal official having authority to obligate or ex-
pend such funds that the applicant for the award certifies
to the Secretary that it encourages family participation
in the decision of the minor to seek family planning serv-
ices.
SEC. 519. Of the budgetary resources available to
agencies in this Act for salaries and expenses during fis-
cal year 1997, $30,500,000, to be allocated by the Office
of Management and Budget, are permanently canceled:
Provided, That the foregoing provision shall not apply to
the Food and Drug Administration and the Indian
Health Service: Provided further, That amounts available
in this Act for congressional and legislative affairs, public
affairs, and intergovernmental affairs activities are here-
by reduced by $2,000,000.
SEC. 520. VOLUNTARY SEPARATION INCENTIVES
FOR EMPLOYEES OF CERTAIN FEDERAL AGENCIES.—(a)
DEFINITIONS.—For the purposes of this section—
(1) the term ‘‘agency’’ means the Railroad Re-
tirement Board and the Office of Inspector General
of the Railroad Retirement Board;
(2) the term ‘‘employee’’ means an employee
(as defined by section 2105 of title 5, United States
Code) who is employed by an agency, is serving
under an appointment without time limitation, and
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has been currently employed for a continuous period
of at least 3 years, but does not include—
(A) a reemployed annuitant under sub-
chapter III of chapter 83 or chapter 84 of title
5, United States Code, or another retirement
system for employees of the agency;
(B) an employee having a disability on the
basis of which such employee is or would be eli-
gible for disability retirement under subchapter
III of chapter 83 or chapter 84 of title 5, Unit-
ed States Code, or another retirement system
for employees of the agency;
(C) an employee who is in receipt of a spe-
cific notice of involuntary separation for mis-
conduct or unacceptable performance;
(D) an employee who, upon completing an
additional period of service as referred to in
section 3(b)(2)(B)(ii) of the Federal Workforce
Restructuring Act of 1994 (5 U.S.C. 5597
note), would qualify for a voluntary separation
incentive payment under section 3 of such Act;
(E) an employee who has previously re-
ceived any voluntary separation incentive pay-
ment by the Federal Government under this
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section or any other authority and has not re-
paid such payment;
(F) an employee covered by statutory re-
employment rights who is on transfer to an-
other organization; or
(G) any employee who, during the twenty-
four-month period preceding the date of separa-
tion, has received a recruitment or relocation
bonus under section 5753 of title 5, United
States Code, or who, within the twelve-month
period preceding the date of separation, re-
ceived a retention allowance under section 5754
of title 5, United States Code.
(b) AGENCY STRATEGIC PLAN.—
(1) IN GENERAL.—The three-member Railroad
Retirement Board, prior to obligating any resources
for voluntary separation incentive payments, shall
submit to the House and Senate Committees on Ap-
propriations and the Committee on Governmental
Affairs of the Senate and the Committee on Govern-
ment Reform and Oversight of the House of Rep-
resentatives a strategic plan outlining the intended
use of such incentive payments and a proposed orga-
nizational chart for the agency once such incentive
payments have been completed.
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(2) CONTENTS.—The agency’s plan shall in-
clude—
(A) the positions and functions to be re-
duced or eliminated, identified by organizational
unit, geographic location, occupational category
and grade level;
(B) the number and amounts of voluntary
separation incentive payments to be offered;
and
(C) a description of how the agency will
operate without the eliminated positions and
functions.
(c) AUTHORITY TO PROVIDE VOLUNTARY SEPA-
RATION INCENTIVE PAYMENTS.—
(1) IN GENERAL.—A voluntary separation in-
centive payment under this section may be paid by
an agency to any employee only to the extent nec-
essary to eliminate the positions and functions iden-
tified by the strategic plan.
(2) AMOUNT AND TREATMENT OF PAYMENTS.—
A voluntary separation incentive payment—
(A) shall be paid in a lump sum after the
employee’s separation;
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(B) shall be paid from appropriations or
funds available for the payment of the basic pay
of the employees;
(C) shall be equal to the lesser of—
(i) an amount equal to the amount
the employee would be entitled to receive
under section 5595(c) of title 5, United
States Code; or
(ii) an amount determined by the
agency head not to exceed $25,000;
(D) may not be made except in the case of
any qualifying employee who voluntarily sepa-
rates (whether by retirement or resignation) be-
fore September 30, 1997;
(E) shall not be a basis for payment, and
shall not be included in the computation, of any
other type of Government benefit; and
(F) shall not be taken into account in de-
termining the amount of any severance pay to
which the employee may be entitled under sec-
tion 5595 of title 5, United States Code, based
on any other separation.
(d) ADDITIONAL
AGENCY
CONTRIBUTIONS
TO
THE RETIREMENT FUND.—
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(1) IN
GENERAL.—In addition to any other
payments which it is required to make under sub-
chapter III of chapter 83 of title 5, United States
Code, an agency shall remit to the Office of Person-
nel Management for deposit in the Treasury of the
United States to the credit of the Civil Service Re-
tirement and Disability Fund an amount equal to 15
percent of the final basic pay of each employee of
the agency who is covered under subchapter III of
chapter 83 or chapter 84 of title 5, United States
Code, to whom a voluntary separation incentive has
been paid under this section.
(2) DEFINITION.—For the purpose of para-
graph (1), the term ‘‘final basic pay’’, with respect
to an employee, means the total amount of basic pay
which would be payable for a year of service by such
employee, computed using the employee’s final rate
of basic pay, and if last serving on other than a full-
time basis, with appropriate adjustment therefor.
(e) EFFECT
OF
SUBSEQUENT
EMPLOYMENT
WITH THE GOVERNMENT.—An individual who has re-
ceived a voluntary separation incentive payment under
this section and accepts any employment for compensa-
tion with the Government of the United States, or who
works for any agency of the United States Government
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through a personal services contract, within 5 years after
the date of the separation on which the payment is based
shall be required to pay, prior to the individual’s first day
of employment, the entire amount of the incentive pay-
ment to the agency that paid the incentive payment.
(f) REDUCTION OF AGENCY EMPLOYMENT LEV-
ELS.—
(1) IN GENERAL.—The total number of funded
employee positions in the agency shall be reduced by
one position for each vacancy created by the separa-
tion of any employee who has received, or is due to
receive, a voluntary separation incentive payment
under this section. For the purposes of this sub-
section, positions shall be counted on a full-time-
equivalent basis.
(2) ENFORCEMENT.—The President, through
the Office of Management and Budget, shall monitor
the agency and take any action necessary to ensure
that the requirements of this subsection are met.
(g) EFFECTIVE DATE.—This section shall take ef-
fect October 1, 1996.
SEC. 521. CORRECTION OF EFFECTIVE DATE.—
Effective on the day after the date of enactment of the
Health Centers Consolidation Act of 1996, section 5 of
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that Act is amended by striking ‘‘October 1, 1997’’ and
inserting ‘‘October 1, 1996’’.
TITLE VI—REORGANIZATION AND PRIVATIZA-
TION OF SALLIE MAE AND CONNIE LEE
SEC. 601. SHORT TITLE.
This title may be cited as the ‘‘Student Loan Market-
ing Association Reorganization Act of 1996’’.
SEC. 602. REORGANIZATION OF THE STUDENT LOAN MAR-
KETING ASSOCIATION THROUGH THE FOR-
MATION OF A HOLDING COMPANY.
(a) AMENDMENT.—Part B of title IV of the Higher
Education Act of 1965 (20 U.S.C. 1071 et seq.) is amend-
ed by inserting after section 439 (20 U.S.C. 1087–2) the
following new section:
‘‘SEC. 440. REORGANIZATION OF THE STUDENT LOAN MAR-
KETING ASSOCIATION THROUGH THE FOR-
MATION OF A HOLDING COMPANY.
‘‘(a) ACTIONS BY THE ASSOCIATION’S BOARD OF DI-
RECTORS.—The Board of Directors of the Association
shall take or cause to be taken all such action as the Board
of Directors deems necessary or appropriate to effect,
upon the shareholder approval described in subsection (b),
a restructuring of the common stock ownership of the As-
sociation, as set forth in a plan of reorganization adopted
by the Board of Directors (the terms of which shall be
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consistent with this section) so that all of the outstanding
common shares of the Association shall be directly owned
by a Holding Company. Such actions may include, in the
Board of Director’s discretion, a merger of a wholly owned
subsidiary of the Holding Company with and into the As-
sociation, which would have the effect provided in the plan
of reorganization and the law of the jurisdiction in which
such subsidiary is incorporated. As part of the restructur-
ing, the Board of Directors may cause—
‘‘(1) the common shares of the Association to
be converted, on the reorganization effective date, to
common shares of the Holding Company on a one
for one basis, consistent with applicable State or
District of Columbia law; and
‘‘(2) Holding Company common shares to be
registered with the Securities and Exchange Com-
mission.
‘‘(b) SHAREHOLDER APPROVAL.—The plan of reor-
ganization adopted by the Board of Directors pursuant to
subsection (a) shall be submitted to common shareholders
of the Association for their approval. The reorganization
shall occur on the reorganization effective date, provided
that the plan of reorganization has been approved by the
affirmative votes, cast in person or by proxy, of the holders
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the Association is merely continuing to acquire loans
as a lender of last resort pursuant to section 439(q)
or under an agreement with the Secretary described
in paragraph (6).
‘‘(2) TRANSFER OF CERTAIN PROPERTY.—
‘‘(A) IN GENERAL.—Except as provided in
this section, on the reorganization effective date
or as soon as practicable thereafter, the Asso-
ciation shall use the Association’s best efforts to
transfer to the Holding Company or any sub-
sidiary of the Holding Company (or both), as
directed by the Holding Company, all real and
personal property of the Association (both tan-
gible and intangible) other than the remaining
property. Subject to the preceding sentence,
such transferred property shall include all right,
title, and interest in—
‘‘(i) direct or indirect subsidiaries of
the Association (excluding special purpose
funding companies in existence on the date
of enactment of this section and any inter-
est in any government-sponsored enter-
prise);
‘‘(ii) contracts, leases, and other
agreements of the Association;
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‘‘(iii) licenses and other intellectual
property of the Association; and
‘‘(iv) any other property of the Asso-
ciation.
‘‘(B) CONSTRUCTION.—Nothing in this
paragraph shall be construed to prohibit the As-
sociation from transferring remaining property
from time to time to the Holding Company or
any subsidiary of the Holding Company, subject
to the provisions of paragraph (4).
‘‘(3) TRANSFER OF PERSONNEL.—On the reor-
ganization effective date, employees of the Associa-
tion shall become employees of the Holding Com-
pany (or any subsidiary of the Holding Company),
and the Holding Company (or any subsidiary of the
Holding Company) shall provide all necessary and
appropriate management and operational support
(including loan servicing) to the Association, as re-
quested by the Association. The Association, how-
ever, may obtain such management and operational
support from persons or entities not associated with
the Holding Company.
‘‘(4) DIVIDENDS.—The Association may pay
dividends in the form of cash or noncash distribu-
tions so long as at the time of the declaration of
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such dividends, after giving effect to the payment of
such dividends as of the date of such declaration by
the Board of Directors of the Association, the Asso-
ciation’s capital would be in compliance with the
capital standards and requirements set forth in sec-
tion 439(r). If, at any time after the reorganization
effective date, the Association fails to comply with
such capital standards, the Holding Company shall
transfer with due diligence to the Association addi-
tional capital in such amounts as are necessary to
ensure that the Association again complies with the
capital standards.
‘‘(5) CERTIFICATION
PRIOR
TO
DIVIDEND.—
Prior to the payment of any dividend under para-
graph (4), the Association shall certify to the Sec-
retary of the Treasury that the payment of the divi-
dend will be made in compliance with paragraph (4)
and shall provide copies of all calculations needed to
make such certification.
‘‘(6) RESTRICTIONS ON NEW BUSINESS ACTIV-
ITY OR ACQUISITION OF ASSETS BY ASSOCIATION.—
‘‘(A) IN GENERAL.—After the reorganiza-
tion effective date, the Association shall not en-
gage in any new business activities or acquire
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any additional program assets described in sec-
tion 439(d) other than in connection with—
‘‘(i) student loan purchases through
September 30, 2007;
‘‘(ii) contractual commitments for fu-
ture warehousing advances, or pursuant to
letters of credit or standby bond purchase
agreements, which are outstanding as of
the reorganization effective date;
‘‘(iii) the Association serving as a
lender-of-last-resort pursuant to section
439(q); and
‘‘(iv) the Association’s purchase of
loans insured under this part, if the Sec-
retary, with the approval of the Secretary
of the Treasury, enters into an agreement
with the Association for the continuation
or resumption of the Association’s second-
ary market purchase program because the
Secretary determines there is inadequate
liquidity for loans made under this part.
‘‘(B) AGREEMENT.—The Secretary is au-
thorized to enter into an agreement described in
clause (iv) of subparagraph (A) with the Asso-
ciation covering such secondary market activi-
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ties. Any agreement entered into under such
clause shall cover a period of 12 months, but
may be renewed if the Secretary determines
that liquidity remains inadequate. The fee pro-
vided under section 439(h)(7) shall not apply to
loans acquired under any such agreement with
the Secretary.
‘‘(7) ISSUANCE OF DEBT OBLIGATIONS DURING
THE TRANSITION PERIOD; ATTRIBUTES OF DEBT OB-
LIGATIONS.—After the reorganization effective date,
the Association shall not issue debt obligations which
mature later than September 30, 2008, except in
connection with serving as a lender-of-last-resort
pursuant to section 439(q) or with purchasing loans
under an agreement with the Secretary as described
in paragraph (6). Nothing in this section shall mod-
ify the attributes accorded the debt obligations of
the Association by section 439, regardless of whether
such debt obligations are incurred prior to, or at any
time following, the reorganization effective date or
are transferred to a trust in accordance with sub-
section (d).
‘‘(8) MONITORING
OF
SAFETY
AND
SOUND-
NESS.—
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‘‘(A) OBLIGATION TO OBTAIN, MAINTAIN,
AND REPORT INFORMATION.—The Association
shall obtain such information and make and
keep such records as the Secretary of the
Treasury may from time to time prescribe con-
cerning—
‘‘(i) the financial risk to the Associa-
tion resulting from the activities of any as-
sociated person, to the extent such activi-
ties are reasonably likely to have a mate-
rial impact on the financial condition of
the Association, including the Association’s
capital ratio, the Association’s liquidity, or
the Association’s ability to conduct and fi-
nance the Association’s operations; and
‘‘(ii) the Association’s policies, proce-
dures, and systems for monitoring and
controlling any such financial risk.
‘‘(B) SUMMARY REPORTS.—The Secretary
of the Treasury may require summary reports
of the information described in subparagraph
(A) to be filed no more frequently than quar-
terly. If, as a result of adverse market condi-
tions or based on reports provided pursuant to
this subparagraph or other available informa-
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tion, the Secretary of the Treasury has con-
cerns regarding the financial or operational con-
dition of the Association, the Secretary of the
Treasury may, notwithstanding the preceding
sentence and subparagraph (A), require the As-
sociation to make reports concerning the activi-
ties of any associated person whose business ac-
tivities are reasonably likely to have a material
impact on the financial or operational condition
of the Association.
‘‘(C) SEPARATE OPERATION OF CORPORA-
TIONS.—
‘‘(i) IN GENERAL.—The funds and as-
sets of the Association shall at all times be
maintained separately from the funds and
assets of the Holding Company or any sub-
sidiary of the Holding Company and may
be used by the Association solely to carry
out the Association’s purposes and to fulfill
the Association’s obligations.
‘‘(ii) BOOKS AND RECORDS.—The As-
sociation shall maintain books and records
that clearly reflect the assets and liabilities
of the Association, separate from the as-
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sets and liabilities of the Holding Company
or any subsidiary of the Holding Company.
‘‘(iii) CORPORATE OFFICE.—The As-
sociation shall maintain a corporate office
that is physically separate from any office
of the Holding Company or any subsidiary
of the Holding Company.
‘‘(iv) DIRECTOR.—No director of the
Association who is appointed by the Presi-
dent pursuant to section 439(c)(1)(A) may
serve as a director of the Holding Com-
pany.
‘‘(v) ONE OFFICER REQUIREMENT.—
At least one officer of the Association shall
be an officer solely of the Association.
‘‘(vi) 
TRANSACTIONS.—Transactions
between the Association and the Holding
Company or any subsidiary of the Holding
Company, including any loan servicing ar-
rangements, shall be on terms no less fa-
vorable to the Association than the Asso-
ciation could obtain from an unrelated
third party offering comparable services.
‘‘(vii) 
CREDIT
PROHIBITION.—The
Association shall not extend credit to the
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Holding Company or any subsidiary of the
Holding Company nor guarantee or pro-
vide any credit enhancement to any debt
obligations of the Holding Company or any
subsidiary of the Holding Company.
‘‘(viii) AMOUNTS
COLLECTED.—Any
amounts collected on behalf of the Associa-
tion by the Holding Company or any sub-
sidiary of the Holding Company with re-
spect to the assets of the Association, pur-
suant to a servicing contract or other ar-
rangement between the Association and the
Holding Company or any subsidiary of the
Holding Company, shall be collected solely
for the benefit of the Association and shall
be immediately deposited by the Holding
Company or such subsidiary to an account
under the sole control of the Association.
‘‘(D) ENCUMBRANCE
OF
ASSETS.—Not-
withstanding any Federal or State law, rule, or
regulation, or legal or equitable principle, doc-
trine, or theory to the contrary, under no cir-
cumstances shall the assets of the Association
be available or used to pay claims or debts of
or incurred by the Holding Company. Nothing
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in this subparagraph shall be construed to limit
the right of the Association to pay dividends
not otherwise prohibited under this subpara-
graph or to limit any liability of the Holding
Company explicitly provided for in this section.
‘‘(E) HOLDING
COMPANY
ACTIVITIES.—
After the reorganization effective date and prior
to the dissolution date, all business activities of
the Holding Company shall be conducted
through subsidiaries of the Holding Company.
‘‘(F) CONFIDENTIALITY.—Any information
provided by the Association pursuant to this
section shall be subject to the same confiden-
tiality 
obligations 
contained 
in 
section
439(r)(12).
‘‘(G) DEFINITION.—For purposes of this
paragraph, the term ‘associated person’ means
any person, other than a natural person, who is
directly or indirectly controlling, controlled by,
or under common control with, the Association.
‘‘(9) ISSUANCE OF STOCK WARRANTS.—
‘‘(A) IN GENERAL.—On the reorganization
effective date, the Holding Company shall issue
to the District of Columbia Financial Respon-
sibility and Management Assistance Authority a
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number of stock warrants that is equal to one
percent of the outstanding shares of the Asso-
ciation, determined as of the last day of the fis-
cal quarter preceding the date of enactment of
this section, with each stock warrant entitling
the holder of the stock warrant to purchase
from the Holding Company one share of the
registered common stock of the Holding Com-
pany or the Holding Company’s successors or
assigns, at any time on or before September 30,
2008. The exercise price for such warrants shall
be an amount equal to the average closing price
of the common stock of the Association for the
20 business days prior to the date of enactment
of this section on the exchange or market which
is then the primary exchange or market for the
common stock of the Association. The number
of shares of Holding Company common stock
subject to each stock warrant and the exercise
price of each stock warrant shall be adjusted as
necessary to reflect—
‘‘(i) the conversion of Association
common stock into Holding Company com-
mon stock as part of the plan of reorga-
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nization approved by the Association’s
shareholders; and
‘‘(ii) any issuance or sale of stock (in-
cluding issuance or sale of treasury stock),
stock split, recapitalization, reorganization,
or other corporate event, if agreed to by
the Secretary of the Treasury and the As-
sociation.
‘‘(B) AUTHORITY TO SELL OR EXERCISE
STOCK WARRANTS; DEPOSIT OF PROCEEDS.—
The District of Columbia Financial Responsibil-
ity and Management Assistance Authority is
authorized to sell or exercise the stock warrants
described in subparagraph (A). The District of
Columbia Financial Responsibility and Manage-
ment Assistance Authority shall deposit into the
account established under section 3(e) of the
Student Loan Marketing Association Reorga-
nization Act of 1996 amounts collected from
the sale and proceeds resulting from the exer-
cise of the stock warrants pursuant to this sub-
paragraph.
‘‘(10) RESTRICTIONS ON TRANSFER OF ASSO-
CIATION
SHARES
AND
BANKRUPTCY
OF
ASSOCIA-
TION.—After the reorganization effective date, the
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Holding Company shall not sell, pledge, or otherwise
transfer the outstanding shares of the Association,
or agree to or cause the liquidation of the Associa-
tion or cause the Association to file a petition for
bankruptcy under title 11, United States Code, with-
out prior approval of the Secretary of the Treasury
and the Secretary of Education.
‘‘(d) TERMINATION OF THE ASSOCIATION.—In the
event the shareholders of the Association approve a plan
of reorganization under subsection (b), the Association
shall dissolve, and the Association’s separate existence
shall terminate on September 30, 2008, after discharge
of all outstanding debt obligations and liquidation pursu-
ant to this subsection. The Association may dissolve pur-
suant to this subsection prior to such date by notifying
the Secretary of Education and the Secretary of the
Treasury of the Association’s intention to dissolve, unless
within 60 days after receipt of such notice the Secretary
of Education notifies the Association that the Association
continues to be needed to serve as a lender of last resort
pursuant to section 439(q) or continues to be needed to
purchase loans under an agreement with the Secretary de-
scribed in subsection (c)(6). On the dissolution date, the
Association shall take the following actions:
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‘‘(1) ESTABLISHMENT OF A TRUST.—The Asso-
ciation shall, under the terms of an irrevocable trust
agreement that is in form and substance satisfactory
to the Secretary of the Treasury, the Association
and the appointed trustee, irrevocably transfer all
remaining obligations of the Association to the trust
and irrevocably deposit or cause to be deposited into
such trust, to be held as trust funds solely for the
benefit of holders of the remaining obligations,
money or direct noncallable obligations of the United
States or any agency thereof for which payment the
full faith and credit of the United States is pledged,
maturing as to principal and interest in such
amounts and at such times as are determined by the
Secretary of the Treasury to be sufficient, without
consideration of any significant reinvestment of such
interest, to pay the principal of, and interest on, the
remaining obligations in accordance with their
terms. To the extent the Association cannot provide
money or qualifying obligations in the amount re-
quired, the Holding Company shall be required to
transfer money or qualifying obligations to the trust
in the amount necessary to prevent any deficiency.
‘‘(2) USE OF TRUST ASSETS.—All money, obli-
gations, or financial assets deposited into the trust
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pursuant to this subsection shall be applied by the
trustee to the payment of the remaining obligations
assumed by the trust.
‘‘(3) OBLIGATIONS NOT TRANSFERRED TO THE
TRUST.—The Association shall make proper provi-
sion for all other obligations of the Association not
transferred to the trust, including the repurchase or
redemption, or the making of proper provision for
the repurchase or redemption, of any preferred stock
of the Association outstanding. Any obligations of
the Association which cannot be fully satisfied shall
become liabilities of the Holding Company as of the
date of dissolution.
‘‘(4) TRANSFER OF REMAINING ASSETS.—After
compliance with paragraphs (1) and (3), any re-
maining assets of the trust shall be transferred to
the Holding Company or any subsidiary of the Hold-
ing Company, as directed by the Holding Company.
‘‘(e) OPERATION OF THE HOLDING COMPANY.—In
the event the shareholders of the Association approve the
plan of reorganization under subsection (b), the following
provisions shall apply beginning on the reorganization ef-
fective date:
‘‘(1) HOLDING
COMPANY
BOARD
OF
DIREC-
TORS.—The number of members and composition of
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the Board of Directors of the Holding Company
shall be determined as set forth in the Holding Com-
pany’s charter or like instrument (as amended from
time to time) or bylaws (as amended from time to
time) and as permitted under the laws of the juris-
diction of the Holding Company’s incorporation.
‘‘(2) HOLDING COMPANY NAME.—The names of
the Holding Company and any subsidiary of the
Holding Company (other than the Association)—
‘‘(A) may not contain the name ‘Student
Loan Marketing Association’; and
‘‘(B) may contain, to the extent permitted
by applicable State or District of Columbia law,
‘Sallie Mae’ or variations thereof, or such other
names as the Board of Directors of the Associa-
tion or the Holding Company deems appro-
priate.
‘‘(3) USE OF SALLIE MAE NAME.—Subject to
paragraph (2), the Association may assign to the
Holding Company, or any subsidiary of the Holding
Company, the ‘Sallie Mae’ name as a trademark or
service mark, except that neither the Holding Com-
pany nor any subsidiary of the Holding Company
(other than the Association or any subsidiary of the
Association) may use the ‘Sallie Mae’ name on, or
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to identify the issuer of, any debt obligation or other
security offered or sold by the Holding Company or
any subsidiary of the Holding Company (other than
a debt obligation or other security issued to and held
by the Holding Company or any subsidiary of the
Holding Company). The Association shall remit to
the account established under section 3(e) of the
Student Loan Marketing Association Reorganization
Act of 1996, $5,000,000, within 60 days of the reor-
ganization effective date as compensation for the
right to assign the ‘Sallie Mae’ name as a trademark
or service mark.
‘‘(4) DISCLOSURE
REQUIRED.—Until 3 years
after the dissolution date, the Holding Company,
and any subsidiary of the Holding Company (other
than the Association), shall prominently display—
‘‘(A) in any document offering the Holding
Company’s securities, a statement that the obli-
gations of the Holding Company and any sub-
sidiary of the Holding Company are not guar-
anteed by the full faith and credit of the United
States; and
‘‘(B) in any advertisement or promotional
materials which use the ‘Sallie Mae’ name or
mark, a statement that neither the Holding
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Company nor any subsidiary of the Holding
Company is a government-sponsored enterprise
or instrumentality of the United States.
‘‘(f) STRICT CONSTRUCTION.—Except as specifically
set forth in this section, nothing in this section shall be
construed to limit the authority of the Association as a
federally chartered corporation, or of the Holding Com-
pany as a State or District of Columbia chartered corpora-
tion.
‘‘(g) RIGHT TO ENFORCE.—The Secretary of Edu-
cation or the Secretary of the Treasury, as appropriate,
may request that the Attorney General bring an action
in the United States District Court for the District of Co-
lumbia for the enforcement of any provision of this sec-
tion, or may, under the direction or control of the Attorney
General, bring such an action. Such court shall have juris-
diction and power to order and require compliance with
this section.
‘‘(h) DEADLINE FOR REORGANIZATION EFFECTIVE
DATE.—This section shall be of no further force and effect
in the event that the reorganization effective date does not
occur on or before 18 months after the date of enactment
of this section.
‘‘(i) DEFINITIONS.—For purposes of this section:
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‘‘(1) ASSOCIATION.—The term ‘Association’
means the Student Loan Marketing Association.
‘‘(2) DISSOLUTION DATE.—The term ‘dissolu-
tion date’ means September 30, 2008, or such ear-
lier date as the Secretary of Education permits the
transfer of remaining obligations in accordance with
subsection (d).
‘‘(3) HOLDING COMPANY.—The term ‘Holding
Company’ means the new business corporation es-
tablished pursuant to this section by the Association
under the laws of any State of the United States or
the District of Columbia for the purposes of the re-
organization and restructuring described in sub-
section (a).
‘‘(4) REMAINING OBLIGATIONS.—The term ‘re-
maining obligations’ means the debt obligations of
the Association outstanding as of the dissolution
date.
‘‘(5) REMAINING
PROPERTY.—The term ‘re-
maining property’ means the following assets and li-
abilities of the Association which are outstanding as
of the reorganization effective date:
‘‘(A) Debt obligations issued by the Asso-
ciation.
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‘‘(B) Contracts relating to interest rate,
currency, or commodity positions or protections.
‘‘(C) Investment securities owned by the
Association.
‘‘(D) Any instruments, assets, or agree-
ments described in section 439(d) (including,
without limitation, all student loans and agree-
ments relating to the purchase and sale of stu-
dent loans, forward purchase and lending com-
mitments, warehousing advances, academic fa-
cilities obligations, letters of credit, standby
bond purchase agreements, liquidity agree-
ments, and student loan revenue bonds or other
loans).
‘‘(E) Except as specifically prohibited by
this section or section 439, any other nonmate-
rial assets or liabilities of the Association which
the Association’s Board of Directors determines
to be necessary or appropriate to the Associa-
tion’s operations.
‘‘(6) REORGANIZATION.—The term ‘reorganiza-
tion’ means the restructuring event or events (in-
cluding any merger event) giving effect to the Hold-
ing Company structure described in subsection (a).
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‘‘(7) REORGANIZATION EFFECTIVE DATE.—The
term ‘reorganization effective date’ means the effec-
tive date of the reorganization as determined by the
Board of Directors of the Association, which shall
not be earlier than the date that shareholder ap-
proval is obtained pursuant to subsection (b) and
shall not be later than the date that is 18 months
after the date of enactment of this section.
‘‘(8) 
SUBSIDIARY.—The 
term 
‘subsidiary’
means one or more direct or indirect subsidiaries.’’.
(b) TECHNICAL AMENDMENTS.—
(1) ELIGIBLE LENDER.—
(A) AMENDMENTS TO THE HIGHER EDU-
CATION ACT.—
(i) DEFINITION OF ELIGIBLE LEND-
ER.—Section 435(d)(1)(F) of the Higher
Education 
Act 
of 
1965 
(20 
U.S.C.
1085(d)(1)(F)) is amended by inserting
after ‘‘Student Loan Marketing Associa-
tion’’ the following: ‘‘or the Holding Com-
pany of the Student Loan Marketing Asso-
ciation, including any subsidiary of the
Holding Company, created pursuant to
section 440,’’.
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(ii) DEFINITION OF ELIGIBLE LEND-
ER
AND
FEDERAL
CONSOLIDATION
LOANS.—Sections 
435(d)(1)(G) 
and
428C(a)(1)(A) of such Act (20 U.S.C.
1085(d)(1)(G) and 1078–3(a)(1)(A)) are
each amended by inserting after ‘‘Student
Loan Marketing Association’’ the follow-
ing: ‘‘or the Holding Company of the Stu-
dent Loan Marketing Association, includ-
ing any subsidiary of the Holding Com-
pany, created pursuant to section 440’’.
(B) EFFECTIVE DATE.—The amendments
made by this paragraph shall take effect on the
reorganization effective date as defined in sec-
tion 440(h) of the Higher Education Act of
1965 (as added by subsection (a)).
(2) ENFORCEMENT
OF
SAFETY
AND
SOUND-
NESS REQUIREMENTS.—Section 439(r) of the High-
er Education Act of 1965 (20 U.S.C. 1087–2(r)) is
amended—
(A) in the first sentence of paragraph (12),
by inserting ‘‘or the Association’s associated
persons’’ after ‘‘by the Association’’;
(B) by redesignating paragraph (13) as
paragraph (15); and
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(C) by inserting after paragraph (12) the
following new paragraph:
‘‘(13) ENFORCEMENT OF SAFETY AND SOUND-
NESS REQUIREMENTS.—The Secretary of Education
or the Secretary of the Treasury, as appropriate,
may request that the Attorney General bring an ac-
tion in the United States District Court for the Dis-
trict of Columbia for the enforcement of any provi-
sion of this section, or may, under the direction or
control of the Attorney General, bring such an ac-
tion. Such court shall have jurisdiction and power to
order and require compliance with this section.’’.
(3) FINANCIAL SAFETY AND SOUNDNESS.—Sec-
tion 439(r) of the Higher Education Act of 1965
(20 U.S.C. 1087–2(r)) is further amended—
(A) in paragraph (1)—
(i) by striking ‘‘and’’ at the end of
subparagraph (A);
(ii) by striking the period at the end
of subparagraph (B) and inserting ‘‘;
and’’; and
(iii) by adding at the end the follow-
ing new subparagraph:
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whether the requirements of this section and
section 440 are being met.’’; and
(ii) by adding at the end the following
new subparagraph:
‘‘(D) ANNUAL ASSESSMENT.—
‘‘(i) IN
GENERAL.—For each fiscal year
beginning on or after October 1, 1996, the Sec-
retary of the Treasury may establish and collect
from the Association an assessment (or assess-
ments) in amounts sufficient to provide for rea-
sonable costs and expenses of carrying out the
duties of the Secretary of the Treasury under
this section and section 440 during such fiscal
year. In no event may the total amount so as-
sessed exceed, for any fiscal year, $800,000, ad-
justed for each fiscal year ending after Septem-
ber 30, 1997, by the ratio of the Consumer
Price Index for All Urban Consumers (issued
by the Bureau of Labor Statistics) for the final
month of the fiscal year preceding the fiscal
year for which the assessment is made to the
Consumer Price Index for All Urban Consum-
ers for September 1997.
‘‘(ii) DEPOSIT.—Amounts collected from
assessments under this subparagraph shall be
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deposited in an account within the Treasury of
the United States as designated by the Sec-
retary of the Treasury for that purpose. The
Secretary of the Treasury is authorized and di-
rected to pay out of any funds available in such
account the reasonable costs and expenses of
carrying out the duties of the Secretary of the
Treasury under this section and section 440.
None of the funds deposited into such account
shall be available for any purpose other than
making payments for such costs and ex-
penses.’’; and
(C) by inserting after paragraph (13) (as
added by paragraph (2)(C)) the following new
paragraph:
‘‘(14) ACTIONS BY SECRETARY.—
‘‘(A) IN GENERAL.—For any fiscal quarter
ending after January 1, 2000, the Association
shall have a capital ratio of at least 2.25 per-
cent. The Secretary of the Treasury may, when-
ever such capital ratio is not met, take any one
or more of the actions described in paragraph
(7), except that—
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‘‘(i) the capital ratio to be restored
pursuant to paragraph (7)(D) shall be
2.25 percent; and
‘‘(ii) if the relevant capital ratio is in
excess of or equal to 2 percent for such
quarter, the Secretary of the Treasury
shall defer taking any of the actions set
forth in paragraph (7) until the next suc-
ceeding quarter and may then proceed with
any such action only if the capital ratio of
the Association remains below 2.25 per-
cent.
‘‘(B) APPLICABILITY.—The provisions of
paragraphs (4), (5), (6), (8), (9), (10), and
(11) shall be of no further application to the
Association for any period after January 1,
2000.’’.
(4) INFORMATION
REQUIRED; DIVIDENDS.—
Section 439(r) of the Higher Education Act of 1965
(20 U.S.C. 1087–2(r)) is further amended—
(A) by adding at the end of paragraph (2)
(as amended in paragraph (3)(B)(ii)) the fol-
lowing new subparagraph:
‘‘(E) OBLIGATION TO OBTAIN, MAINTAIN, AND
REPORT INFORMATION.—
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‘‘(i) IN GENERAL.—The Association shall
obtain such information and make and keep
such records as the Secretary of the Treasury
may from time to time prescribe concerning—
‘‘(I) the financial risk to the Associa-
tion resulting from the activities of any as-
sociated person, to the extent such activi-
ties are reasonably likely to have a mate-
rial impact on the financial condition of
the Association, including the Association’s
capital ratio, the Association’s liquidity, or
the Association’s ability to conduct and fi-
nance the Association’s operations; and
‘‘(II) the Association’s policies, proce-
dures, and systems for monitoring and
controlling any such financial risk.
‘‘(ii) SUMMARY REPORTS.—The Secretary
of the Treasury may require summary reports
of such information to be filed no more fre-
quently than quarterly. If, as a result of ad-
verse market conditions or based on reports
provided pursuant to this subparagraph or
other available information, the Secretary of the
Treasury has concerns regarding the financial
or operational condition of the Association, the
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Secretary of the Treasury may, notwithstanding
the preceding sentence and clause (i), require
the Association to make reports concerning the
activities of any associated person, whose busi-
ness activities are reasonably likely to have a
material impact on the financial or operational
condition of the Association.
‘‘(iii) DEFINITION.—For purposes of this
subparagraph, the term ‘associated person’
means any person, other than a natural person,
directly or indirectly controlling, controlled by,
or under common control with the Associa-
tion.’’; and
(B) by adding at the end the following new
paragraphs:
‘‘(16) DIVIDENDS.—The Association may pay
dividends in the form of cash or noncash distribu-
tions so long as at the time of the declaration of
such dividends, after giving effect to the payment of
such dividends as of the date of such declaration by
the Board of Directors of the Association, the Asso-
ciation’s capital would be in compliance with the
capital standards set forth in this section.
‘‘(17) CERTIFICATION PRIOR TO PAYMENT OF
DIVIDEND.—Prior to the payment of any dividend
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under paragraph (16), the Association shall certify
to the Secretary of the Treasury that the payment
of the dividend will be made in compliance with
paragraph (16) and shall provide copies of all cal-
culations needed to make such certification.’’.
(c) SUNSET OF THE ASSOCIATION’S CHARTER IF NO
REORGANIZATION PLAN OCCURS.—Section 439 of the
Higher Education Act of 1965 (20 U.S.C. 1087–2) is
amended by adding at the end the following new sub-
section:
‘‘(s) CHARTER SUNSET.—
‘‘(1) APPLICATION OF PROVISIONS.—This sub-
section applies beginning 18 months and one day
after the date of enactment of this subsection if no
reorganization of the Association occurs in accord-
ance with the provisions of section 440.
‘‘(2) SUNSET PLAN.—
‘‘(A) PLAN SUBMISSION BY THE ASSOCIA-
TION.—Not later than July 1, 2007, the Asso-
ciation shall submit to the Secretary of the
Treasury and to the Chairman and Ranking
Member of the Committee on Labor and
Human Resources of the Senate and the Chair-
man and Ranking Member of the Committee on
Economic and Educational Opportunities of the
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House of Representatives, a detailed plan for
the orderly winding up, by July 1, 2013, of
business activities conducted pursuant to the
charter set forth in this section. Such plan
shall—
‘‘(i) ensure that the Association will
have adequate assets to transfer to a trust,
as provided in this subsection, to ensure
full payment of remaining obligations of
the Association in accordance with the
terms of such obligations;
‘‘(ii) provide that all assets not used
to pay liabilities shall be distributed to
shareholders as provided in this subsection;
and
‘‘(iii) provide that the operations of
the Association shall remain separate and
distinct from that of any entity to which
the assets of the Association are trans-
ferred.
‘‘(B) AMENDMENT OF THE PLAN BY THE
ASSOCIATION.—The Association shall from time
to time amend such plan to reflect changed cir-
cumstances, and submit such amendments to
the Secretary of the Treasury and to the Chair-
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man and Ranking Minority Member of the
Committee on Labor and Human Resources of
the Senate and Chairman and Ranking Minor-
ity Member of the Committee on Economic and
Educational Opportunities of the House of Rep-
resentatives. In no case may any amendment
extend the date for full implementation of the
plan beyond the dissolution date provided in
paragraph (3).
‘‘(C) PLAN MONITORING.—The Secretary
of the Treasury shall monitor the Association’s
compliance with the plan and shall continue to
review the plan (including any amendments
thereto).
‘‘(D) AMENDMENT OF THE PLAN BY THE
SECRETARY OF THE TREASURY.—The Secretary
of the Treasury may require the Association to
amend the plan (including any amendments to
the plan), if the Secretary of the Treasury
deems such amendments necessary to ensure
full payment of all obligations of the Associa-
tion.
‘‘(E) IMPLEMENTATION BY THE ASSOCIA-
TION.—The Association shall promptly imple-
ment the plan (including any amendments to
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the plan, whether such amendments are made
by the Association or are required to be made
by the Secretary of the Treasury).
‘‘(3) DISSOLUTION OF THE ASSOCIATION.—The
Association shall dissolve and the Association’s sepa-
rate existence shall terminate on July 1, 2013, after
discharge of all outstanding debt obligations and liq-
uidation pursuant to this subsection. The Associa-
tion may dissolve pursuant to this subsection prior
to such date by notifying the Secretary of Education
and the Secretary of the Treasury of the Associa-
tion’s intention to dissolve, unless within 60 days of
receipt of such notice the Secretary of Education no-
tifies the Association that the Association continues
to be needed to serve as a lender of last resort pur-
suant to subsection (q) or continues to be needed to
purchase loans under an agreement with the Sec-
retary described in paragraph (4)(A). On the dis-
solution date, the Association shall take the follow-
ing actions:
‘‘(A) ESTABLISHMENT OF A TRUST.—The
Association shall, under the terms of an irrev-
ocable trust agreement in form and substance
satisfactory to the Secretary of the Treasury,
the Association, and the appointed trustee, ir-
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revocably transfer all remaining obligations of
the Association to a trust and irrevocably de-
posit or cause to be deposited into such trust,
to be held as trust funds solely for the benefit
of holders of the remaining obligations, money
or direct noncallable obligations of the United
States or any agency thereof for which payment
the full faith and credit of the United States is
pledged, maturing as to principal and interest
in such amounts and at such times as are de-
termined by the Secretary of the Treasury to be
sufficient, without consideration of any signifi-
cant reinvestment of such interest, to pay the
principal of, and interest on, the remaining obli-
gations in accordance with their terms.
‘‘(B) USE OF TRUST ASSETS.—All money,
obligations, or financial assets deposited into
the trust pursuant to this subsection shall be
applied by the trustee to the payment of the re-
maining obligations assumed by the trust. Upon
the fulfillment of the trustee’s duties under the
trust, any remaining assets of the trust shall be
transferred to the persons who, at the time of
the dissolution, were the shareholders of the As-
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sociation, or to the legal successors or assigns
of such persons.
‘‘(C) OBLIGATIONS NOT TRANSFERRED TO
THE TRUST.—The Association shall make prop-
er provision for all other obligations of the As-
sociation, including the repurchase or redemp-
tion, or the making of proper provision for the
repurchase or redemption, of any preferred
stock of the Association outstanding.
‘‘(D) TRANSFER OF REMAINING ASSETS.—
After compliance with subparagraphs (A) and
(C), the Association shall transfer to the share-
holders of the Association any remaining assets
of the Association.
‘‘(4) RESTRICTIONS
RELATING
TO
WINDING
UP.—
‘‘(A) RESTRICTIONS ON NEW BUSINESS AC-
TIVITY OR ACQUISITION OF ASSETS BY THE AS-
SOCIATION.—
‘‘(i) IN GENERAL.—Beginning on July
1, 2009, the Association shall not engage
in any new business activities or acquire
any additional program assets (including
acquiring assets pursuant to contractual
commitments) described in subsection (d)
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other than in connection with the Associa-
tion—
‘‘(I) serving as a lender of last
resort pursuant to subsection (q); and
‘‘(II) purchasing loans insured
under this part, if the Secretary, with
the approval of the Secretary of the
Treasury, enters into an agreement
with the Association for the continu-
ation or resumption of the Associa-
tion’s secondary market purchase pro-
gram because the Secretary deter-
mines there is inadequate liquidity for
loans made under this part.
‘‘(ii) AGREEMENT.—The Secretary is
authorized to enter into an agreement de-
scribed in subclause (II) of clause (i) with
the Association covering such secondary
market activities. Any agreement entered
into under such subclause shall cover a pe-
riod of 12 months, but may be renewed if
the Secretary determines that liquidity re-
mains inadequate. The fee provided under
subsection (h)(7) shall not apply to loans
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acquired under any such agreement with
the Secretary.
‘‘(B) ISSUANCE
OF
DEBT
OBLIGATIONS
DURING THE WIND UP PERIOD; ATTRIBUTES OF
DEBT OBLIGATIONS.—The Association shall not
issue debt obligations which mature later than
July 1, 2013, except in connection with serving
as a lender of last resort pursuant to subsection
(q) or with purchasing loans under an agree-
ment with the Secretary as described in sub-
paragraph (A). Nothing in this subsection shall
modify the attributes accorded the debt obliga-
tions of the Association by this section, regard-
less of whether such debt obligations are trans-
ferred to a trust in accordance with paragraph
(3).
‘‘(C) USE
OF
ASSOCIATION
NAME.—The
Association may not transfer or permit the use
of the name ‘Student Loan Marketing Associa-
tion’, ‘Sallie Mae’, or any variation thereof, to
or by any entity other than a subsidiary of the
Association.’’.
(d) REPEALS.—
(1) IN GENERAL.—Sections 439 of the Higher
Education Act of 1965 (20 U.S.C. 1087–2) and 440
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of such Act (as added by subsection (a) of this sec-
tion) are repealed.
(2) EFFECTIVE DATE.—The repeals made by
paragraph (1) shall be effective one year after—
(A) the date on which all of the obligations
of the trust established under section 440(d)(1)
of the Higher Education Act of 1965 (as added
by subsection (a)) have been extinguished, if a
reorganization occurs in accordance with section
440 of such Act; or
(B) the date on which all of the obligations
of the trust established under subsection
439(s)(3)(A) of such Act (as added by sub-
section (c)) have been extinguished, if a reorga-
nization does not occur in accordance with sec-
tion 440 of such Act.
(e) ASSOCIATION NAMES.—Upon dissolution in ac-
cordance with section 439(s) of the Higher Education Act
of 1965 (20 U.S.C. 1087–2), the names ‘‘Student Loan
Marketing Association’’, ‘‘Sallie Mae’’, and any variations
thereof may not be used by any entity engaged in any
business similar to the business conducted pursuant to
section 439 of such Act (as such section was in effect on
the date of enactment of this Act) without the approval
of the Secretary of the Treasury.
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(f) RIGHT TO ENFORCE.—The Secretary of Edu-
cation or the Secretary of the Treasury, as appropriate,
may request that the Attorney General bring an action
in the United States District Court for the District of Co-
lumbia for the enforcement of any provision of subsection
(e), or may, under the direction or control of the Attorney
General, bring such an action. Such court shall have juris-
diction and power to order and require compliance with
subsection (e).
SEC. 603. CONNIE LEE PRIVATIZATION.
(a) STATUS OF THE CORPORATION AND CORPORATE
POWERS; OBLIGATIONS
NOT
FEDERALLY
GUARAN-
TEED.—
(1) STATUS OF THE CORPORATION.—The Cor-
poration shall not be an agency, instrumentality, or
establishment of the United States Government, nor
a Government corporation, nor a Government con-
trolled corporation, as such terms are defined in sec-
tion 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 allow-
able against the United States based on the actions
of the Corporation.
(2) CORPORATE
POWERS.—The Corporation
shall be subject to the provisions of this section, and,
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to the extent not inconsistent with this section, to
the District of Columbia Business Corporation Act
(or the comparable law of another State, if applica-
ble). The Corporation shall have the powers con-
ferred upon a corporation by the District of Colum-
bia Business Corporation Act (or such other applica-
ble State law) as from time to time in effect in order
to conduct the Corporation’s affairs as a private,
for-profit corporation and to carry out the Corpora-
tion’s purposes and activities incidental thereto. The
Corporation shall have the power to enter into con-
tracts, to execute instruments, to incur liabilities, to
provide products and services, and to do all things
as are necessary or incidental to the proper manage-
ment of the Corporation’s affairs and the efficient
operation of a private, for-profit business.
(3) LIMITATION ON OWNERSHIP OF STOCK.—
(A) STUDENT LOAN MARKETING ASSOCIA-
TION.—The Student Loan Marketing Associa-
tion shall not increase its share of the owner-
ship of the Corporation in excess of 42 percent
of the shares of stock of the Corporation out-
standing on the date of enactment of this Act.
The Student Loan Marketing Association shall
not control the operation of the Corporation,
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except that the Student Loan Marketing Asso-
ciation may participate in the election of direc-
tors as a shareholder, and may continue to ex-
ercise the Student Loan Marketing Associa-
tion’s right to appoint directors under section
754 of the Higher Education Act of 1965 (20
U.S.C. 1132f–3) as long as that section is in ef-
fect.
(B) PROHIBITION.—Until such time as the
Secretary of the Treasury sells the stock of the
Corporation owned by the Secretary of Edu-
cation pursuant to subsection (c), the Student
Loan Marketing Association shall not provide
financial support or guarantees to the Corpora-
tion.
(C) FINANCIAL
SUPPORT
OR
GUARAN-
TEES.—After the Secretary of the Treasury
sells the stock of the Corporation owned by the
Secretary of Education pursuant to subsection
(c), the Student Loan Marketing Association
may provide financial support or guarantees to
the Corporation, if such support or guarantees
are subject to terms and conditions that are no
more advantageous to the Corporation than the
terms and conditions the Student Loan Market-
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ing Association provides to other entities, in-
cluding, where applicable, other monoline finan-
cial guaranty corporations in which the Student
Loan Marketing Association has no ownership
interest.
(4) NO FEDERAL GUARANTEE.—
(A) OBLIGATIONS INSURED BY THE COR-
PORATION.—
(i) FULL FAITH AND CREDIT OF THE
UNITED STATES.—No obligation that is in-
sured, guaranteed, or otherwise backed by
the Corporation shall be deemed to be an
obligation that is guaranteed by the full
faith and credit of the United States.
(ii) STUDENT LOAN MARKETING ASSO-
CIATION.—No obligation that is insured,
guaranteed, or otherwise backed by the
Corporation shall be deemed to be an obli-
gation that is guaranteed by the Student
Loan Marketing Association.
(iii) SPECIAL RULE.—This paragraph
shall not affect the determination of
whether such obligation is guaranteed for
purposes of Federal income taxes.
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(B) SECURITIES OFFERED BY THE COR-
PORATION.—No debt or equity securities of the
Corporation shall be deemed to be guaranteed
by the full faith and credit of the United
States.
(5) DEFINITION.—The term ‘‘Corporation’’ as
used in this section means the College Construction
Loan Insurance Association as in existence on the
day before the date of enactment of this Act, and
any successor corporation.
(b) RELATED PRIVATIZATION REQUIREMENTS.—
(1) NOTICE REQUIREMENTS.—
(A) IN GENERAL.—During the six-year pe-
riod following the date of enactment of this Act,
the Corporation shall include, in each of the
Corporation’s contracts for the insurance, guar-
antee, or reinsurance of obligations, and in each
document offering debt or equity securities of
the Corporation, a prominent statement provid-
ing notice that—
(i) such obligations or such securities,
as the case may be, are not obligations of
the United States, nor are such obligations
or such securities, as the case may be,
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guaranteed in any way by the full faith
and credit of the United States; and
(ii) the Corporation is not an instru-
mentality of the United States.
(B) ADDITIONAL
NOTICE.—During the
five-year period following the sale of stock pur-
suant to subsection (c)(1), in addition to the
notice requirements in subparagraph (A), the
Corporation shall include, in each of the con-
tracts and documents referred to in such sub-
paragraph, a prominent statement providing no-
tice that the United States is not an investor in
the Corporation.
(2) CORPORATE CHARTER.—The Corporation’s
charter shall be amended as necessary and without
delay to conform to the requirements of this section.
(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’’, or any sub-
stantially similar variation thereof.
(4) ARTICLES OF INCORPORATION.—The Cor-
poration shall amend the Corporation’s articles of
incorporation without delay to reflect that one of the
purposes of the Corporation shall be to guarantee,
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insure, and reinsure bonds, leases, and other evi-
dences of debt of educational institutions, including
Historically Black Colleges and Universities and
other academic institutions which are ranked in the
lower investment grade category using a nationally
recognized credit rating system.
(5) REQUIREMENTS UNTIL STOCK SALE.—Not-
withstanding subsection (d), the requirements of sec-
tions 754 and 760 of the Higher Education Act of
1965 (20 U.S.C. 1132f–3 and 1132f–9), as such
sections were in effect on the day before the date of
enactment of this Act, shall continue to be effective
until the day immediately following the date of clos-
ing of the purchase of the Secretary of Education’s
stock (or the date of closing of the final purchase,
in the case of multiple transactions) pursuant to
subsection (c)(1) of this Act.
(c) SALE OF FEDERALLY OWNED STOCK.—
(1) PURCHASE
BY
THE
CORPORATION.—The
Secretary of the Treasury shall sell and the Corpora-
tion shall purchase, within 90 days after the date of
enactment of this Act, the stock of the Corporation
held by the Secretary of Education at a price deter-
mined by the binding, independent appraisal of a na-
tionally recognized financial firm, except that the
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90-day period may be extended by mutual agreement
of the Secretary of the Treasury and the Corpora-
tion to not more than 150 days after the date of en-
actment of this Act. The appraiser shall be jointly
selected by the Secretary of the Treasury and the
Corporation. In the event that the Secretary of the
Treasury and the Corporation cannot agree on the
appraiser, then the Secretary of the Treasury and
the Corporation shall name an independent third
party to select the appraiser.
(2) REIMBURSEMENT OF COSTS AND EXPENSES
OF SALE.—The Secretary of the Treasury shall be
reimbursed from the proceeds of the sale of the
stock under this subsection for all reasonable costs
and expenses related to such sale, except that one-
half of all reasonable costs and expenses relating to
the independent appraisal under paragraph (1) shall
be borne by the Corporation.
(3) DEPOSIT
INTO
ACCOUNT.—Amounts col-
lected from the sale of stock pursuant to this sub-
section that are not used to reimburse the Secretary
of the Treasury pursuant to paragraph (2) shall be
deposited into the account established under sub-
section (e).
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(4) ASSISTANCE BY THE CORPORATION.—The
Corporation shall provide such assistance as the Sec-
retary of the Treasury and the Secretary of Edu-
cation may require to facilitate the sale of the stock
under this subsection.
(5) REPORT TO CONGRESS.—Not later than 6
months after the date of enactment of this Act, the
Secretary of the Treasury shall report to the appro-
priate committees of Congress on the completion and
terms of the sale of stock of the Corporation pursu-
ant to this subsection.
(d) REPEAL OF STATUTORY RESTRICTIONS AND
RELATED PROVISIONS.—Part D of title VII of the High-
er Education Act of 1965 (20 U.S.C. 1132f et seq.) is
repealed.
(e) ESTABLISHMENT OF ACCOUNT.—
(1) IN GENERAL.—Notwithstanding any other
provision of law, the District of Columbia Financial
Responsibility and Management Assistance Author-
ity shall establish an account to receive—
(A) amounts collected from the sale and
proceeds resulting from the exercise of stock
warrants pursuant to section 440(c)(9) of the
Higher Education Act of 1965;
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(B) amounts and proceeds remitted as
compensation for the right to assign the ‘‘Sallie
Mae’’ name as a trademark or service mark
pursuant to section 440(e)(3) of the Higher
Education Act of 1965; and
(C) amounts and proceeds collected from
the sale of the stock of the Corporation and de-
posited pursuant to subsection (c)(3).
(2) AMOUNTS AND PROCEEDS.—
(A) AMOUNTS AND PROCEEDS RELATING
TO SALLIE MAE.—The amounts and proceeds
described in subparagraphs (A) and (B) of
paragraph (1) shall be used to finance public el-
ementary and secondary school facility con-
struction and repair within the District of Co-
lumbia or to carry out the District of Columbia
School Reform Act of 1995.
(B) AMOUNTS AND PROCEEDS RELATING
TO CONNIE LEE.—The amounts and proceeds
described in subparagraph (C) of paragraph (1)
shall be used to finance public elementary and
secondary school facility construction and repair
within the District of Columbia.
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SEC. 604. DISCRIMINATION IN SECONDARY MARKETS PRO-
HIBITED.
Part B of title IV of the Higher Education Act of
1965 (20 U.S.C. 1071 et seq.) is amended by adding
after section 440 (as added by section 602) the following
new section:
‘‘SEC. 440A. DISCRIMINATION IN SECONDARY MARKETS
PROHIBITED.
‘‘The Student Loan Marketing Association (and,
if the Association is privatized under section 440, any
successor entity functioning as a secondary market for
loans under this part, including the Holding Company
described in such section) shall not engage directly or in-
directly in any pattern or practice that results in a denial
of a borrower’s access to loans under this part because
of the borrower’s race, sex, color, religion, national origin,
age, disability status, income, attendance at a particular
eligible institution, length of the borrower’s educational
program, or the borrower’s academic year at an eligible
institution.’’.
TITLE VII—MUSEUM AND LIBRARY SERVICES
ACT OF 1996
SECTION 701. SHORT TITLE.
This title may be cited as the ‘‘Museum and Li-
brary Services Act of 1996’’.
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SEC. 702. MUSEUM AND LIBRARY SERVICES.
The Museum Services Act (20 U.S.C. 961 et seq.)
is amended to read as follows:
‘‘TITLE II—MUSEUM AND LIBRARY SERVICES
‘‘Subtitle A—General Provisions
‘‘SEC. 201. SHORT TITLE.
‘‘This title may be cited as the ‘Museum and Li-
brary Services Act’.
‘‘SEC. 202. GENERAL DEFINITIONS.
‘‘As used in this title:
‘‘(1) COMMISSION.—The term ‘Commission’
means the National Commission on Libraries and
Information Science established under section 3 of
the National Commission on Libraries and Informa-
tion Sciences Act (20 U.S.C. 1502).
‘‘(2) DIRECTOR.—The term ‘Director’ means
the Director of the Institute appointed under section
204.
‘‘(3) INSTITUTE.—The term ‘Institute’ means
the Institute of Museum and Library Services estab-
lished under section 203.
‘‘(4) MUSEUM
BOARD.—The term ‘Museum
Board’ means the National Museum Services Board
established under section 275.
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‘‘SEC. 203. INSTITUTE OF MUSEUM AND LIBRARY SERVICES.
‘‘(a) ESTABLISHMENT.—There is established,
within the National Foundation on the Arts and the Hu-
manities, an Institute of Museum and Library Services.
‘‘(b) OFFICES.—The Institute shall consist of an
Office of Museum Services and an Office of Library Serv-
ices. There shall be a National Museum Services Board
in the Office of Museum Services.
‘‘SEC. 204. DIRECTOR OF THE INSTITUTE.
‘‘(a) APPOINTMENT.—
‘‘(1) IN
GENERAL.—The Institute shall be
headed by a Director, appointed by the President, by
and with the advice and consent of the Senate.
‘‘(2) TERM.—The Director shall serve for a
term of 4 years.
‘‘(3) QUALIFICATIONS.—Beginning with the
first individual appointed to the position of Director
after the date of enactment of the Museum and Li-
brary Services Act of 1996, every second individual
so appointed shall be appointed from among individ-
uals who have special competence with regard to li-
brary and information services. Beginning with the
second individual appointed to the position of Direc-
tor after the date of enactment of the Museum and
Library Services Act of 1996, every second individ-
ual so appointed shall be appointed from among in-
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dividuals who have special competence with regard
to museum services.
‘‘(b) COMPENSATION.—The Director may be com-
pensated at the rate provided for level III of the Execu-
tive Schedule under section 5314 of title 5, United States
Code.
‘‘(c) DUTIES AND POWERS.—The Director shall
perform such duties and exercise such powers as may be
prescribed by law, including awarding financial assistance
for activities described in this title.
‘‘(d) NONDELEGATION.—The Director shall not
delegate any of the functions of the Director to any per-
son who is not an officer or employee of the Institute.
‘‘(e) COORDINATION.—The
Director
shall en-
sure
coordination
of
the
policies
and activities of
the Institute with the policies and activities of other
agencies and offices of the Federal Government hav-
ing interest in and responsibilities for the improvement of
museums and libraries and information services.
‘‘SEC. 205. DEPUTY DIRECTORS.
‘‘The Office of Library Services shall be headed
by a Deputy Director, who shall be appointed by the Di-
rector from among individuals who have a graduate de-
gree in library science and expertise in library and infor-
mation services. The Office of Museum Services shall be
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headed by a Deputy Director, who shall be appointed by
the Director from among individuals who have expertise
in museum services.
‘‘SEC. 206. PERSONNEL.
‘‘(a) IN GENERAL.—The Director may, in accord-
ance with applicable provisions of title 5, United States
Code, appoint and determine the compensation of such
employees as the Director determines to be necessary to
carry out the duties of the Institute.
‘‘(b) VOLUNTARY SERVICES.—The Director may
accept and utilize the voluntary services of individuals
and reimburse the individuals for travel expenses, includ-
ing per diem in lieu of subsistence, in the same amounts
and to the same extent as authorized under section 5703
of title 5, United States Code, for persons employed
intermittently in Federal Government service.
‘‘SEC. 207. CONTRIBUTIONS.
‘‘The Institute is authorized to solicit, accept, re-
ceive, and invest in the name of the United States, gifts,
bequests, or devises of money and other property or serv-
ices and to use such property of services in furtherance
of the functions of the Institute. Any proceeds from such
gifts, bequests, or devises, after acceptance by the Insti-
tute, shall be paid by the donor or the representative of
the donor to the Director. The Director shall enter the
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proceeds in a special-interest bearing account to the cred-
it of the Institute for the purposes specified in each case.
‘‘Subtitle B—Library Services and Technology
‘‘SEC. 211. SHORT TITLE.
‘‘This subtitle may be cited as the ‘Library Serv-
ices and Technology Act’.
‘‘SEC. 212. PURPOSE.
‘‘It is the purpose of this subtitle—
‘‘(1) to consolidate Federal library service pro-
grams;
‘‘(2) to stimulate excellence and promote access
to learning and information resources in all types of
libraries for individuals of all ages;
‘‘(3) to promote library services that provide all
users access to information through State, regional,
national and international electronic networks;
‘‘(4) to provide linkages among and be-
tween libraries; and
‘‘(5) to promote targeted library services to peo-
ple of diverse geographic, cultural, and socio-
economic backgrounds, to individuals with disabil-
ities, and to people with limited functional literacy
or information skills.
SEC. 213. DEFINITIONS.
‘‘As used in this subtitle:
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‘‘(1) INDIAN TRIBE.—The term ‘Indian tribe’
means any tribe, band, nation, or other organized
group or community, including any Alaska native
village, regional corporation, or village corporation,
as defined in or established pursuant to the Alaska
Native Claims Settlement Act (43 U.S.C. 1601 et
seq.), which is recognized by the Secretary of the In-
terior as eligible for the special programs and serv-
ices provided by the United States to Indians be-
cause of their status as Indians.
‘‘(2) LIBRARY.—The term ‘library’ includes—
‘‘(A) a public library;
‘‘(B) a public elementary school or second-
ary school library;
‘‘(C) an academic library;
‘‘(D) a research library, which for the pur-
poses of this subtitle means a library that—
‘‘(i) makes publicly available library
services and materials suitable for schol-
arly research and not otherwise available
to the public; and
‘‘(ii) is not an integral part of an in-
stitution of higher education; and
‘‘(E) a private library, but only if the State
in which such private library is located deter-
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mines that the library should be considered a li-
brary for purposes of this subtitle.
‘‘(3) LIBRARY CONSORTIUM.—The term ‘library
consortium’ means any local, statewide, regional,
interstate, or international cooperative association of
library entities which provides for the systematic and
effective coordination of the resources of school, pub-
lic, academic, and special libraries and information
centers, for improved services for the clientele of
such library entities.
‘‘(4) STATE.—The term ‘State’, unless other-
wise specified, includes each of the 50 States of the
United States, the District of Columbia, the Com-
monwealth of Puerto Rico, the United States Virgin
Islands, Guam, American Samoa, the Common-
wealth of the Northern Mariana Islands, the Repub-
lic of the Marshall Islands, the Federated States of
Micronesia, and the Republic of Palau.
‘‘(5) STATE LIBRARY ADMINISTRATIVE AGEN-
CY.—The term ‘State library administrative agency’
means the official agency of a State charged by the
law of the State with the extension and development
of public library services throughout the State.
‘‘(6) STATE
PLAN.—The term ‘State plan’
means the document which gives assurances that the
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officially designated State library administrative
agency has the fiscal and legal authority and capa-
bility to administer all aspects of this subtitle, pro-
vides assurances for establishing the State’s policies,
priorities, criteria, and procedures necessary to the
implementation of all programs under this subtitle,
submits copies for approval as required by regula-
tions promulgated by the Director, identifies a
State’s library needs, and sets forth the activities to
be taken toward meeting the identified needs sup-
ported with the assistance of Federal funds made
available under this subtitle.
‘‘SEC. 214. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—There are authorized to be
appropriated $150,000,000 for fiscal year 1997 and
such sums as may be necessary for each of the fiscal
years 1998 through 2002 to carry out this subtitle.
‘‘(2) TRANSFER.—The Secretary of Education
shall—
‘‘(A) transfer promptly to the Director any
funds appropriated under the authority of para-
graph (1), to enable the Director to carry out
this subtitle; and
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‘‘(B) not exercise any authority concerning
the administration of this title other than the
transfer described in subparagraph (A).
‘‘(b) FORWARD FUNDING.—
‘‘(1) IN GENERAL.—To the end of affording the
responsible Federal, State, and local officers ade-
quate notice of available Federal financial assistance
for carrying out ongoing library activities and
projects, appropriations for grants contracts, or
other payments under any program under this sub-
title are authorized to be included in the appropria-
tions Act for the fiscal year preceding the fiscal year
during which such activities and projects shall be
carried out.
‘‘(2) ADDITIONAL AUTHORIZATION OF APPRO-
PRIATIONS.—In order to effect a transition to the
timing of appropriation action authorized by sub-
section (a), the application of this section may result
in the enactment, in a fiscal year, of separate appro-
priations for a program under this subtitle (whether
in the same appropriations Act or otherwise) for two
consecutive fiscal years.
‘‘(c) ADMINISTRATION.—Not more than 3 percent
of the funds appropriated under this section for a fiscal
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year may be used to pay for the Federal administrative
costs of carrying out this subtitle.
‘‘CHAPTER 1—BASIC PROGRAM
REQUIREMENTS
‘‘SEC. 221. RESERVATIONS AND ALLOTMENTS.
‘‘(a) RESERVATIONS.—
‘‘(1) IN GENERAL.—From the amount appro-
priated under the authority of section 214 for any
fiscal year, the Director—
‘‘(A) shall reserve 11⁄2 percent to award
grants in accordance with section 261; and
‘‘(B) shall reserve 4 percent to award na-
tional leadership grants or contracts in accord-
ance with section 262.
‘‘(2) SPECIAL
RULE.—If the funds reserved
pursuant to paragraph (1)(B) for a fiscal year have
not been obligated by the end of such fiscal year,
then such funds shall be allotted in accordance with
subsection (b) for the fiscal year succeeding the fis-
cal year for which the funds were so reserved.
‘‘(b) ALLOTMENTS.—
‘‘(1) IN
GENERAL.—From the sums appro-
priated under the authority of section 214 and not
reserved under subsection (a) for any fiscal year, the
Director shall award grants from minimum allot-
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ments, as determined under paragraph (3), to each
State. Any sums remaining after minimum allot-
ments are made for such year shall be allotted in the
manner set forth in paragraph (2).
‘‘(2) REMAINDER.—From the remainder of any
sums appropriated under the authority of section
214 that are not reserved under subsection (a) and
not allotted under paragraph (1) for any fiscal year,
the Director shall award grants to each State in an
amount that bears the same relation to such remain-
der as the population of the State bears to the popu-
lation of all States.
‘‘(3) MINIMUM ALLOTMENT.—
‘‘(A) IN GENERAL.—For the purposes of
this subsection, the minimum allotment for each
State shall be $340,000, except that the mini-
mum allotment shall be $40,000 in the case of
the United States Virgin Islands, Guam, Amer-
ican Samoa, the Commonwealth of the North-
ern Mariana Islands, the Republic of the Mar-
shall Islands, the Federated States of Microne-
sia, and the Republic of Palau.
‘‘(B) RATABLE REDUCTIONS.—If the sum
appropriated under the authority of section 214
and not reserved under subsection (a) for any
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ommendations from the Pacific Region
Educational Laboratory in Honolulu, Ha-
waii.
‘‘(iii) 
TERMINATION
OF
ELIGI-
BILITY.—Notwithstanding any other provi-
sion of law, the Republic of the Marshall
Islands, the Federated States of Microne-
sia, and the Republic of Palau shall not re-
ceive any funds under this subtitle for any
fiscal year that begins after September 30,
2001.
‘‘(iv) ADMINISTRATIVE
COSTS.—The
Director may provide not more than 5 per-
cent of the funds made available for grants
under this subparagraph to pay the admin-
istrative costs of the Pacific Region Edu-
cational Laboratory regarding activities as-
sisted under this subparagraph.
‘‘(4) DATA.—The population of each State and
of all the States shall be determined by the Director
on the basis of the most recent data available from
the Bureau of the Census.
‘‘SEC. 222. ADMINISTRATION.
‘‘(a) IN GENERAL.—Not more than 4 percent of
the total amount of funds received under this subtitle for
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any fiscal year by a State may be used for administrative
costs.
‘‘(b) CONSTRUCTION.—Nothing in this section
shall be construed to limit spending for evaluation costs
under section 224(c) from sources other than this sub-
title.
‘‘SEC. 223. PAYMENTS; FEDERAL SHARE; AND MAINTE-
NANCE OF EFFORT REQUIREMENTS.
‘‘(a) PAYMENTS.—Subject to appropriations pro-
vided pursuant to section 214, the Director shall pay to
each State library administrative agency having a State
plan approved under section 224 the Federal share of the
cost of the activities described in the State plan.
‘‘(b) FEDERAL SHARE.—
‘‘(1) IN GENERAL.—The Federal share shall be
66 percent.
‘‘(2) NON-FEDERAL SHARE.—The non-Federal
share of payments shall be provided from non-Fed-
eral, State, or local sources.
‘‘(c) MAINTENANCE OF EFFORT.—
‘‘(1) STATE EXPENDITURES.—
‘‘(A) REQUIREMENT.—
‘‘(i) IN GENERAL.—The amount oth-
erwise payable to a State for a fiscal year
pursuant to an allotment under this chap-
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ter shall be reduced if the level of State ex-
penditures, as described in paragraph (2),
for the previous fiscal year is less than the
average of the total of such expenditures
for the 3 fiscal years preceding that pre-
vious fiscal year. The amount of the reduc-
tion in allotment for any fiscal year shall
be equal to the amount by which the level
of such State expenditures for the fiscal
year for which the determination is made
is less than the average of the total of such
expenditures for the 3 fiscal years preced-
ing the fiscal year for which the determina-
tion is made.
‘‘(ii) CALCULATION.—Any decrease in
State expenditures resulting from the ap-
plication of subparagraph (B) shall be ex-
cluded from the calculation of the average
level of State expenditures for any 3-year
period described in clause (i).
‘‘(B) DECREASE IN FEDERAL SUPPORT.—
If the amount made available under this sub-
title for a fiscal year is less than the amount
made available under this subtitle for the pre-
ceding fiscal year, then the expenditures re-
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quired by subparagraph (A) for such preceding
fiscal year shall be decreased by the same per-
centage as the percentage decrease in the
amount so made available.
‘‘(2) LEVEL OF STATE EXPENDITURES.—The
level of State expenditures for the purposes of para-
graph (1) shall include all State dollars expended by
the State library administrative agency for library
programs that are consistent with the purposes of
this subtitle. All funds included in the maintenance
of effort calculation under this subsection shall be
expended during the fiscal year for which the deter-
mination is made, and shall not include capital ex-
penditures, special one-time project costs, or similar
windfalls.
‘‘(3) WAIVER.—The Director may waive the re-
quirements of paragraph (1) if the Director deter-
mines that such a waiver would be equitable due to
exceptional or uncontrollable circumstances such as
a natural disaster or a precipitous and unforeseen
decline in the financial resources of the State.
‘‘SEC. 224. STATE PLANS.
‘‘(a) STATE PLAN REQUIRED.—
‘‘(1) IN GENERAL.—In order to be eligible to
receive a grant under this subtitle, a State library
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administrative agency shall submit a State plan to
the Director not later than April 1, 1997.
‘‘(2) DURATION.—The State plan shall cover a
period of 5 fiscal years.
‘‘(3) REVISIONS.—If a State library administra-
tive agency makes a substantive revision to its State
plan, then the State library administrative agency
shall submit to the Director an amendment to the
State plan containing such revision not later than
April 1 of the fiscal year preceding the fiscal year
for which the amendment will be effective.
‘‘(b) CONTENTS.—The State plan shall—
‘‘(1) establish goals, and specify priorities, for
the State consistent with the purposes of this sub-
title;
‘‘(2) describe activities that are consistent with
the goals and priorities established under paragraph
(1), the purposes of this subtitle, and section 231,
that the State library administrative agency will
carry out during such year using such grant;
‘‘(3) describe the procedures that such agency
will use to carry out the activities described in para-
graph (2);
‘‘(4) describe the methodology that such agency
will use to evaluate the success of the activities es-
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tablished under paragraph (2) in achieving the goals
and meeting the priorities described in paragraph
(1);
‘‘(5) describe the procedures that such agency
will use to involve libraries and library users
throughout the State in policy decisions regarding
implementation of this subtitle; and
‘‘(6) provide assurances satisfactory to the Di-
rector that such agency will make such reports, in
such form and containing such information, as the
Director may reasonably require to carry out this
subtitle and to determine the extent to which funds
provided under this subtitle have been effective in
carrying out the purposes of this subtitle.
‘‘(c) EVALUATION AND REPORT.—Each State li-
brary administrative agency receiving a grant under this
subtitle shall independently evaluate, and report to the
Director regarding, the activities assisted under this sub-
title, prior to the end of the 5-year plan.
‘‘(d) INFORMATION.—Each library receiving as-
sistance under this subtitle shall submit to the State li-
brary administrative agency such information as such
agency may require to meet the requirements of sub-
section (c).
‘‘(e) APPROVAL.—
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‘‘(1) IN GENERAL.—The Director shall approve
any State plan under this subtitle that meets the re-
quirements of this subtitle and provides satisfactory
assurances that the provisions of such plan will be
carried out.
‘‘(2) PUBLIC
AVAILABILITY.—Each State li-
brary administrative agency receiving a grant under
this subtitle shall make the State plan available to
the public
‘‘(3) ADMINISTRATION.—If the Director deter-
mines that the State plan does not meet the require-
ments of this section, the Director shall—
‘‘(A) immediately notify the State library
administrative agency of such determination
and the reasons for such determination;
‘‘(B) offer the State library administrative
agency the opportunity to revise its State plan;
‘‘(C) provide technical assistance in order
to assist the State library administrative agency
in meeting the requirements of this section; and
‘‘(D) provide the State library administra-
tive agency the opportunity for a hearing.
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‘‘CHAPTER 2—LIBRARY PROGRAMS
‘‘SEC. 231. GRANTS TO STATES.
‘‘(a) IN GENERAL.—Of the funds provided to a
State library administrative agency under section 214,
such agency shall expend, either directly or through sub-
grants of cooperative agreements, at least 96 percent of
such funds for—
‘‘(1)(A) establishing or enhancing electronic
linkages among or between libraries;
‘‘(B) electronically linking libraries with edu-
cational, social, or information services;
‘‘(C) assisting libraries in accessing information
through electronic networks;
‘‘(D) encouraging libraries in different areas,
and encouraging different types of libraries, to es-
tablish consortia and share resources; or
‘‘(E) paying costs for libraries to acquire or
share computer systems and telecommunications
technologies; and
‘‘(2) targeting library and information services
to persons having difficulty using a library and to
underserved urban and rural communities, including
children (from birth through age 17) from families
with incomes below the poverty line (as defined by
the Office of Management and Budget and revised
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annually in accordance with section 673(2) of the
Community Services Block Grant Act (42 U.S.C.
9902(2)) applicable to a family of the size involved.
‘‘(b) SPECIAL RULE.—Each State library admin-
istrative agency receiving funds under this chapter may
apportion the funds available for the purposes described
in subsection (a) between the two purposes described in
paragraphs (1) and (2) of such subsection, as appro-
priate, to meet the needs of the individual State.
‘‘CHAPTER 3—ADMINISTRATIVE
PROVISIONS
‘‘Subchapter A—State Requirements
‘‘SEC. 251. STATE ADVISORY COUNCILS.
‘‘Each State desiring assistance under this sub-
title may establish a State advisory council which is
broadly representative of the library entities in the State,
including public, school, academic, special, and institu-
tional libraries, and libraries serving individuals with dis-
abilities.
‘‘Subchapter B—Federal Requirements
‘‘SEC. 261. SERVICES FOR INDIAN TRIBES.
‘‘From 
amounts 
reserved 
under 
section
221(a)(1)(A) for any fiscal year the Director shall award
grants to organizations primarily serving and represent-
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ing Indian tribes to enable such organizations to carry
out the activities described in section 231.
‘‘SEC. 262. NATIONAL LEADERSHIP GRANTS OR CON-
TRACTS.
‘‘(a) IN GENERAL.—From the amounts reserved
under section 221(a)(1)(B) for any fiscal year the Direc-
tor shall establish and carry out a program awarding na-
tional leadership grants or contracts to enhance the qual-
ity of library services nationwide and to provide coordina-
tion between libraries and museums. Such grants or con-
tracts shall be used for activities that may include—
‘‘(1) education and training of persons in li-
brary and information science, particularly in areas
of new technology and other critical needs, including
graduate fellowships, traineeships, institutes, or
other programs;
‘‘(2) research and demonstration projects relat-
ed to the improvement of libraries, education in li-
brary and information science, enhancement of li-
brary services through effective and efficient use of
new technologies, and dissemination of information
derived from such projects;
‘‘(3) preservation of digitization of library mate-
rials and resources, giving priority to projects em-
phasizing coordination, avoidance of duplication, and
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access by researchers beyond the institution or li-
brary entity undertaking the project; and
‘‘(4) model programs demonstrating cooperative
efforts between libraries and museums.
‘‘(b) GRANTS OR CONTRACTS.—
‘‘(1) IN
GENERAL.—The Director may carry
out the activities described in subsection (a) by
awarding grants to, or entering into contracts with,
libraries, agencies, institutions of higher education,
or museums, where appropriate.
‘‘(2) COMPETITIVE
BASIS.—Grants and con-
tracts under this section shall be awarded on a com-
petitive basis.
‘‘(c) SPECIAL RULE.—The Director shall make
every effort to ensure that activities assisted under this
section are administered by appropriate library and mu-
seum professionals or experts.
‘‘SEC. 263. STATE AND LOCAL INITIATIVES.
‘‘Nothing in this subtitle shall be construed to
interfere with State and local initiatives and responsibil-
ity in the conduct of library services. The administration
of libraries, the selection of personnel and library books
and materials, and insofar as consistent with the pur-
poses of this subtitle, the determination of the best uses
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of the funds provided under this subtitle, shall be re-
served for the States and their local subdivisions.
‘‘Subtitle C—Museum Services
‘‘SEC. 271. PURPOSE.
‘‘It is the purpose of this subtitle—
‘‘(1) to encourage and assist museums in their
educational role, in conjunction with formal systems
of elementary, secondary, and postsecondary edu-
cation and with programs of nonformal education for
all age groups;
‘‘(2) to assist museums in modernizing their
methods and facilities so that the museums are bet-
ter able to conserve the cultural, historic, and sci-
entific heritage of the United States; and
‘‘(3) to ease the financial burden borne by mu-
seums as a result of their increasing use by the pub-
lic.
‘‘SEC. 272. DEFINITIONS.
‘‘As used in this subtitle:
‘‘(1) MUSEUM.—The term ‘museum’ means a
public or private nonprofit agency or institution or-
ganized on a permanent basis for essentially edu-
cational or aesthetic purposes, that utilizes a profes-
sional staff, owns or utilizes tangible objects, cares
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for the tangible objects, and exhibits the tangible ob-
jects to the public on a regular basis.
‘‘(2) STATE.—The term ‘State’ means each of
the 50 States of the United States, the District of
Columbia, the Commomwealth of Puerto Rico, the
United States Virgin Islands, Guam, American
Samoa, the Commonwealth of the Northern Mariana
Islands, the Republic of the Marshall Islands, the
Federated States of Micronesia, and the Republic of
Palau.
‘‘SEC. 273. MUSEUM SERVICES ACTIVITIES.
‘‘(a) GRANTS.—The Director, subject to the
policy direction of the Museum Board, may make grants
to museums to pay for the Federal share of the cost of
increasing and improving museum services, through such
activities as—
‘‘(1) programs that enable museums to con-
struct or install displays, interpretations, and exhibi-
tions in order to improve museum services provided
to the public;
‘‘(2) assisting museums in developing and
maintaining professionally trained or otherwise expe-
rienced staff to meet the needs of the museums;
‘‘(3) assisting museums in meeting the adminis-
trative costs of preserving and maintaining the col-
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lections of the museums, exhibiting the collections to
the public, and providing educational programs to
the public through the use of the collections;
‘‘(4) assisting museums in cooperating with
each other in developing traveling exhibitions, meet-
ing transportation costs, and identifying and locat-
ing collections available for loan;
‘‘(5) assisting museums in the conservation of
their collections;
‘‘(6) developing and carrying out specialized
programs for specific segments of the public, such as
programs for urban neighborhoods, rural areas, In-
dian reservations, and penal and other State institu-
tions; and
‘‘(7) model programs demonstrating cooperative
efforts between libraries and museums.
‘‘(b) CONTRACTS
AND COOPERATIVE AGREE-
MENTS.—
‘‘(1) PROJECTS
TO
STRENGTHEN
MUSEUM
SERVICES.—The Director, subject to the policy di-
rection of the Museum Board, is authorized to enter
into contracts and cooperative agreements with ap-
propriate entities, as determined by the Director, to
pay for the Federal share of enabling the entities to
undertake projects designed to strengthen museum
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services, except that any contracts or cooperative
agreements entered into pursuant to this subsection
shall be effective only to such extent or in such
amounts as are provided in appropriations Acts.
‘‘(2) LIMITATION ON AMOUNT.—The aggregate
amount of financial assistance made available under
this subsection for a fiscal year shall not exceed 15
percent of the amount appropriated under this sub-
title for such fiscal year.
‘‘(3) OPERATIONAL
EXPENSES.—No financial
assistance may be provided under this subsection to
pay for operational expenses.
‘‘(c) FEDERAL SHARE.—
‘‘(1) 50 PERCENT.—Except as provided in
paragraph (2), the Federal share described in sub-
section (a) and (b) shall be not more than 50 per-
cent.
‘‘(2) GREATER THAN 50 PERCENT.—The Direc-
tor may use not more than 20 percent of the funds
made available under this subtitle for a fiscal year
to make grants under subsection (a), or enter into
contracts or agreements under subsection (b), for
which the Federal share may be greater than 50
percent.
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‘‘(d) REVIEW AND EVALUATION.—The Director
shall establish procedures for reviewing and evaluat-
ing grants, contracts, and cooperative agreements
made or entered into under this subtitle. Procedures
for reviewing grant applications or contracts and co-
operative agreements for financial assistance under
this subtitle shall not be subject to any review out-
side of the Institute.
‘‘SEC. 274. AWARD.
‘‘The Director, with the advice of the Museum
Board, may annually award a National Award for Mu-
seum Service to outstanding museums that have made
significant contributions in service to their communities.
‘‘SEC. 275. NATIONAL MUSEUM SERVICES BOARD.
‘‘(a) ESTABLISHMENT.—There is established in
the Institute a National Museum Services Board.
‘‘(b) COMPOSITION AND QUALIFICATIONS.—
‘‘(1) COMPOSITION.—The Museum Board shall
consist of the Director and 14 members appointed
by the President, by and with the advice and consent
of the Senate.
‘‘(2) QUALIFICATIONS.—The appointive mem-
bers of the Museum Board shall be selected from
among citizens of the United States—
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‘‘(A) who are members of the general pub-
lic;
‘‘(B) who are or have been affiliated
with—
‘‘(i) resources that, collectively, are
broadly representative of the curatorial,
conservation, educational, and cultural re-
sources of the United States; or
‘‘(ii) museums that, collectively, are
broadly representative of various types of
museums, including museums relating to
science, history, technology, art, zoos, and
botanical gardens; and
‘‘(C) who are recognized for their broad
knowledge, expertise, or experience in museums
or commitment to museums.
‘‘(3) GEOGRAPHIC
AND
OTHER
REPRESENTA-
TION.—Members of the Museum Board shall be ap-
pointed to reflect persons from various geographic
regions of the United States. The Museum Board
may not include, at any time, more than 3 members
from a single State. In making such appointments,
the President shall give due regard to equitable rep-
resentation of women, minorities, and persons with
disabilities who are involved with museums.
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‘‘(c) TERMS.—
‘‘(1) IN GENERAL.—Each appointive member of
the Museum Board shall serve for a term of 5 years,
except that—
‘‘(A) of the members first appointed, 3
shall serve for terms of 5 years, 3 shall serve
for terms of 4 years, 3 shall serve for terms of
3 years, 3 shall serve for terms of 2 years, and
2 shall serve for terms of 1 year, as designated
by the President at the time of nomination for
appointment; and
‘‘(B) any member appointed to fill a va-
cancy shall serve for the remainder of the term
for which the predecessor of the member was
appointed.
‘‘(2) REAPPOINTEMENT.—No member of the
Museum Board who has been a member for more
than 7 consecutive years shall be eligible for re-
appointment.
‘‘(3) SERVICE
UNTIL
SUCCESSOR
TAKES
OF-
FICE.—Notwithstanding any other provision of this
subsection, a member of the Museum Board shall
serve after the expiration of the term of the member
until the successor to the member takes office.
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‘‘(d) DUTIES AND POWERS.—The Museum Board
shall have the responsibility to advise the Director on
general policies with respect to the duties, powers, and
authority of the Institute relating to museum services, in-
cluding general policies with respect to—
‘‘(1) financial assistance awarded under this
subtitle for museum services; and
‘‘(2) projects described in section 262(a)(4).
‘‘(e) CHAIRPERSON.—The President shall des-
ignate 1 of the appointive members of the Museum Board
as Chairperson of the Museum Board.
‘‘(f) MEETINGS.—
‘‘(1) IN GENERAL.—The Museum Board shall
meet—
‘‘(A) not less than 3 times each year, in-
cluding—
‘‘(i) not less than 2 times each year
separately; and
‘‘(ii) not less than 1 time each year in
a joint meeting with the Commission, con-
vened for purposes of making general poli-
cies with respect to financial assistance for
projects described in section 262(a)(4);
and
‘‘(B) at the call of the Director.
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‘‘(2) VOTE.—All decisions by the Museum
Board with respect to the exercise of the duties and
powers of the Museum Board shall be made by a
majority vote of the members of the Museum Board
who are present. All decisions by the Commission
and the Museum Board with respect to the policies
described in paragraph (1)(A)(ii) shall be made by
a 2⁄3 majority vote of the total number of the mem-
bers of the Commission and the Museum Board who
are present.
‘‘(g) QUORUM.—A majority of the members of the
Museum Board shall constitute a quorum for the conduct
of business at official meetings of the Museum Board,
but a lesser number of members may hold hearings. A
majority of the members of the Commission and a major-
ity of the members of the Museum Board shall constitute
a quorum for the conduct of business at official joint
meetings of the Commission and the Museum Board.
‘‘(h) COMPENSATION AND TRAVEL EXPENSES.—
‘‘(1) COMPENSATION.—Each member of the
Museum Board who is not an officer or employee of
the Federal Government may be compensated at a
rate to be fixed by the President, but not to exceed
the daily equivalent of the maximum rate authorized
for a position above grade GS–15 of the General
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Schedule under section 5108 of title 5, United
States Code, for each day (including travel time)
during which such member is engaged in the per-
formance of the duties of the Museum Board. All
members of the Museum Board who are officers or
employees of the Federal Government shall serve
without compensation in addition to compensation
received for their services as officers or employees of
the Federal Government.
‘‘(2) TRAVEL EXPENSES.—The members of the
Museum Board may be allowed travel expenses, in-
cluding per diem in lieu of subsistence, in the same
amounts and to the same extent, as authorized
under section 5703 of title 5, United States Code,
for persons employed intermittently in Federal Gov-
ernment service.
‘‘(i) COORDINATION.—The Museum Board, with
the advice of the Director, shall take steps to ensure that
the policies and activities of the Institute are coordinated
with other activities of the Federal Government.
‘‘SEC. 276. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) GRANTS.—For the purpose of carrying out
this subtitle, there are authorized to be appropriated to
the Director $28,700,000 for the fiscal year 1997, and
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such sums as may be necessary for each of the fiscal
years 1998 through 2002.
‘‘(b) ADMINISTRATION.—Not more than 10 per-
cent of the funds appropriated under this section for a
fiscal year may be used to pay for the administrative
costs of carrying out this subtitle.
‘‘(c) SUMS REMAINING AVAILABLE.—Sums appro-
priated pursuant to subsection (a) for any fiscal year
shall remain available for obligation until expended.’’.
SEC. 703. NATIONAL COMMISSION ON LIBRARIES AND IN-
FORMATION SCIENCE.
(a) FUNCTIONS.—Section 5 of the National Com-
mission on Libraries and Information Science Act (20
U.S.C. 1504) is amended—
(1) by redesignating subsections (b) through (d)
as subsections (d) through (f), respectively; and
(2) by inserting after subsection (a) the follow-
ing:
‘‘(b) The Commission shall have the responsibility
to advise the Director of the Institute of Museum and Li-
brary Services on general policies with respect to the du-
ties, powers, and authority of the Institute of Museum
and Library Services relating to library services, includ-
ing—
‘‘(1) general policies with respect to—
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‘‘(A) financial assistance awarded under
the Museum and Library Services Act for li-
brary services; and
‘‘(B) 
projects 
described 
in 
section
262(a)(4) of such Act; and
‘‘(2) measures to ensure that the policies and
activities of the Institute of Museum and Library
Services are coordinated with other activities of the
Federal Government.
‘‘(c)(1) The Commission shall meet not less than
1 time each year in a joint meeting with the National
Museum Services Board, convened for purposes of pro-
viding advice on general policy with respect to financial
assistance for projects described in section 262(a)(4) of
such Act.
‘‘(2) All decisions by the Commission and the Na-
tional Museum Services Board with respect to the advice
on general policy described in paragraph (1) shall be
made by a 2⁄3 majority vote of the total number of the
members of the Commission and the National Museum
Services Board who are present.
‘‘(3) A majority of the members of the Commis-
sion and a majority of the members of the National Mu-
seum Services Board shall constitute a quorum for the
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conduct of business at official joint meetings of the Com-
mission and the National Museum Services Board.’’.
(b) MEMBERSHIP.—Section 6 of the National
Commission on Libraries and Information Science Act
(20 U.S.C. 1505) is amended—
(1) in subsection (a)—
(A) in the first sentence, by striking ‘‘Li-
brarian of Congress’’ and inserting ‘‘Librarian
of Congress, the Director of the Institute of
Museum and Library Services (who shall serve
as an ex officio, nonvoting member),’’;
(B) in the second sentence—
(i) by striking ‘‘special competence or
interest in’’ and inserting ‘‘special com-
petence in or knowledge of; and
(ii) by inserting before the period the
following: ‘‘and at least one other of whom
shall be knowledgeable with respect to the
library and information service and science
needs of the elderly’’;
(C) in the third sentence, by inserting ‘‘ap-
pointive’’ before ‘‘members’’; and
(D) in the last sentence, by striking ‘‘term
and at least’’ and all that follows and inserting
‘‘term.’’; and
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(2) in subsection (b), by striking ‘‘the rate spec-
ified’’ and all that follows through ‘‘and while’’ and
inserting ‘‘the daily equivalent of the maximum rate
authorized for a position above grade GS–15 of the
General Schedule under section 5108 of title 5,
United States Code, for each day (including travel-
time) during which the members are engaged in the
business of the Commission. While’’.
SEC. 704. TRANSFER OF FUNCTIONS FROM INSTITUTE OF
MUSEUM SERVICES.
(a) DEFINITIONS.—For purposes of this section,
unless otherwise provided or indicated by the context—
(1) the term ‘‘Federal agency’’ has the meaning
given to the term ‘‘agency’’ by section 551(1) of title
5, United States Code;
(2) the term ‘‘function’’ means any duty, obli-
gation, power, authority, responsibility, right, privi-
lege, activity, or program; and
(3) the term ‘‘office’’ includes any office, ad-
ministration, agency, institute, unit, organizational
entity, or component thereof.
(b) TRANSFER OF FUNCTIONS FROM THE INSTI-
TUTE OF MUSEUM SERVICES AND THE LIBRARY PRO-
GRAM OFFICE.—There are transferred to the Director of
the Institute of Museum and Library Services established
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under section 203 of the Museum and Library Services
Act—
(1) all functions that the Director of the Insti-
tute of Museum Services exercised before the date of
enactment of this section (including all related func-
tions of any officer or employee of the Institute of
Museum Services); and
(2) all functions that the Director of Library
Programs in the Office of Educational Research and
Improvement in the Department of Education exer-
cised before the date of enactment of this section
and any related function of any officer or employee
of the Department of Education.
(c) DETERMINATIONS OF CERTAIN FUNCTIONS BY
THE OFFICE OF MANAGEMENT AND BUDGET.—If nec-
essary, the Office of Management and Budget shall make
any determination of the functions that are transferred
under subsection (b).
(d) DELEGATION
AND
ASSIGNMENT.—Except
where otherwise expressly prohibited by law or otherwise
provided by this section, the Director of the Institute of
Museum and Library Services may delegate any of the
functions transferred to the Director of the Institute of
Museum and Library Services by this section and any
function transferred or granted to such Director of the
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Institute of Museum and Library Services after the effec-
tive date of this section to such officers and employees
of the Institute of Museum and Library Services as the
Director of the Institute of Museum and Library Services
may designate, and may authorize successive redelega-
tions of such functions as may be necessary or appro-
priate, except that any delegation of any such functions
with respect to libraries shall be made to the Deputy Di-
rector of the Office of Library Services and with respect
to museums shall be made to the Deputy Director of the
Office of Museum Services. No delegation of functions
by the Director of the Institute of Museum and Library
Services under this section or under any other provision
of this section shall relieve such Director of the Institute
of Museum and Library Services of responsibility for the
administration of such functions.
(e) REORGANIZATION.—The Director of the Insti-
tute of Museum and Library Services may allocate or re-
allocate any function transferred under subsection (b)
among the officers of the Institute of Museum and Li-
brary Services, and may establish, consolidate, alter, or
discontinue such organizational entities in the Institute of
Museum and Library Services as may be necessary or ap-
propriate.
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(f) RULES.—The Director of the Institute of Mu-
seum and Library Services may prescribe, in accordance
with chapters 5 and 6 of title 5, United States Code,
such rules and regulations as the Director of the Insti-
tute of Museum and Library Services determines to be
necessary or appropriate to administer and manage the
functions of the Institute of Museum and Library Serv-
ices.
(g) TRANSFER AND ALLOCATIONS OF APPROPRIA-
TIONS AND PERSONNEL.—Except as otherwise provided
in this section, the personnel employed in connection
with, and the assets, liabilities, contracts, property,
records, and unexpended balances of appropriations, au-
thorizations, allocations, and other funds employed, used,
held, arising from, available to, or to be made available
in connection with the functions transferred by this sec-
tion, subject to section 1531 of title 31, United States
Code, shall be transferred to the Institute of Museum
and Library Services. Unexpended funds transferred pur-
suant to this subsection shall be used only for the pur-
poses for which the funds were originally authorized and
appropriated.
(h) INCIDENTAL TRANSFERS.—The Director of
the Office of Management and Budget, at such time or
times as the Director shall provide, may make such deter-
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minations as may be necessary with regard to the func-
tions transferred by this section, and make such addi-
tional incidental dispositions of personnel, assets, liabil-
ities, grants, contracts, property, records, and unex-
pended balances of appropriations, authorizations, alloca-
tions, and other funds held, used, arising from, available
to, or to be made available in connection with such func-
tions, as may be necessary to carry out this section. The
Director of the Office of Management and Budget shall
provide for the termination of the affairs of all entities
terminated by this section and for such further measures
and dispositions as may be necessary to effectuate the
purposes of this section.
(i) EFFECT ON PERSONNEL.—
(1) IN
GENERAL.—Except as otherwise pro-
vided by this section, the transfer pursuant to this
section of full-time personnel (except special Govern-
ment employees) and part-time personnel holding
permanent positions shall not cause any such em-
ployee to be separated or reduced in grade or com-
pensation for 1 year after the date of transfer of
such employee under this section.
(2) EXECUTIVE SCHEDULE POSITIONS.—Except
as otherwise provided in this section, any person
who, on the day preceding the effective date of this
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section, held a position compensated in accordance
with the Executive Schedule prescribed in chapter
53 of title 5, United States Code, and who, without
a break in service, is appointed in the Institute of
Museum and Library Services to a position having
duties comparable to the duties performed imme-
diately preceding such appointment shall continue to
be compensated in such new position at not less
than the rate provided for such previous position, for
the duration of the service of such person in such
new position.
(j) SAVINGS PROVISIONS.—
(1) CONTINUING
EFFECT
OF
LEGAL
DOCU-
MENTS.—All orders, determinations, rules, regula-
tions, permits, agreements, grants, contracts, certifi-
cates, licenses, registrations, privileges, and other
administrative actions—
(A) that have been issued, made, granted,
or allowed to become effective by the President,
any Federal agency or official of a Federal
agency, or by a court of competent jurisdiction,
in the performance of functions that are trans-
ferred under this section; and
(B) that were in effect before the effective
date of this section, or were final before the ef-
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fective date of this section and are to become
effective on or after the effective date of this
section;
shall continue in effect according to their terms until
modified, terminated, superseded, set aside, or revoked in
accordance with law by the President, the Director of the
Institute of Museum and Library Services or other author-
ized official, a court of competent jurisdiction, or by oper-
ation of law.
(2) PROCEEDINGS NOT AFFECTED.—This section
shall not affect any proceedings, including notices of pro-
posed rulemaking, or any application for any license, per-
mit, certificate, or financial assistance pending before the
Institute of Museum Services on the effective date of this
section, with respect to functions transferred by this sec-
tion. Such proceedings and applications shall be contin-
ued. Orders shall be issued in such proceedings, appeals
shall be taken from the orders, and payments shall be
made pursuant to the orders, as if this section had not
been enacted, and orders issued in any such proceedings
shall continue in effect until modified, terminated, super-
seded, or revoked by a duly authorized official, by a court
of competent jurisdiction, or by operation of law. Nothing
in this paragraph shall be construed to prohibit the dis-
continuance or modification of any such proceeding under
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the same terms and conditions and to the same extent
that such proceeding could have been discontinued or
modified if this section had not been enacted.
(3) SUITS NOT AFFECTED.—This section shall
not affect suits commenced before the effective date
of this section, and in all such suits, proceedings
shall be had, appeals taken, and judgments rendered
in the same manner and with the same effect as if
this section had not been enacted.
(4) NONABATEMENT OF ACTIONS.—No suit, ac-
tion, or other proceeding commenced by or against
the Institute of Museum Services, or by or against
any individual in the official capacity of such individ-
ual as an officer of the Institute of Museum Serv-
ices, shall abate by reason of the enactment of this
section.
(5) ADMINISTRATIVE
ACTIONS
RELATING
TO
PROMULGATION OF REGULATIONS.—Any administra-
tive action relating to the preparation or promulga-
tion of a regulation by the Institute of Museum
Services relating to a function transferred under this
section may be continued by the Institute of Mu-
seum and Library Services with the same effect as
if this section had not been enacted.
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(k) TRANSITION.—The Director of the Institute of
Museum and Library Services may utilize—
(1) the services of such officers, employees, and
other personnel of the Institute of Museum Services
with respect to functions transferred to the Institute
of Museum and Library Services by this section; and
(2) funds appropriated to such functions for
such period of time as may reasonably be needed to
facilitate the orderly implementation of this section.
(l) REFERENCES.—A reference in any other Fed-
eral law, Executive order, rule, regulation, or delegation
of authority, or any document of or relating to—
(1) the Director of the Institute of Museum
Services with regard to functions transferred under
subsection (b), shall be deemed to refer to the Direc-
tor of the Institute of Museum and Library Services;
and
(2) the Institute of Museum Services with re-
gard to functions transferred under subsection (b),
shall be deemed to refer to the Institute of Museum
and Library Services.
(m) ADDITIONAL CONFORMING AMENDMENTS.—
(1) RECOMMENDED LEGISLATION.—After con-
sultation with the appropriate committees of Con-
gress and the director of the Office of Management
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and Budget, the Director of the Institute of Museum
and Library Services shall prepare and submit to the
appropriate committees of Congress recommended
legislation containing technical and conforming
amendments to reflect the changes made by this sec-
tion.
(2) SUBMISSION TO CONGRESS.—Not later than
6 months after the effective date of this section, the
Director of the Institute of Museum and Library
Services shall submit to the appropriate committees
of Congress the recommended legislation referred to
under paragraph (1).
SEC. 705. SERVICE OF INDIVIDUALS SERVING ON DATE OF
ENACTMENT.
Notwithstanding section 204 of the Museum and
Library Services Act, the individual who was appointed to
the position of Director of the Institute of Museum Serv-
ices under section 205 of the Museum Services Act (as
such section was in effect on the day before the date of
enactment of this Act) and who is serving in such posi-
tion on the day before the date of enactment of this Act
shall serve as the first Director of the Institute of Mu-
seum and Library Services under section 204 of the Mu-
seum and Library Services Act (as added by section 2 of
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this Act), and shall serve at the pleasure of the Presi-
dent.
SEC. 706. CONSIDERATION.
Consistent with title 5, United States Code, in ap-
pointing employees of the Office of Library Services, the
Director of the Institute of Museum and Library Services
shall give strong consideration to individuals with experi-
ence in administering State-based and national library
and information services programs.
SEC. 707. TRANSITION AND TRANSFER OF FUNDS.
(a) TRANSITION.—The Director of the Office of
Management and Budget shall take appropriate measures
to ensure an orderly transition from the activities pre-
viously administered by the Director of Library Programs
in the Office of Educational Research and Improvement
in the Department of Education to the activities adminis-
tered by the Institute for Museum and Library Services
under this Act. Such measures may include the transfer
of appropriated funds.
(b) TRANSFER.—From any amounts available to
the Secretary of Education for salaries and expenses at
the Department of Education, the Secretary of Education
shall transfer to the Director the amount of funds nec-
essary to ensure the orderly transition from activities pre-
viously administered by the Director of the Office of Li-
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brary Programs in the Office of Educational Research
and Improvement in the Department of Education to the
activities administered by the Institute for Museum and
Library Services. In no event shall the amount of funds
transferred pursuant to the preceding sentence be less
than $200,000.
SEC. 708. REPEALS.
(a) LIBRARY
SERVICES
AND
CONSTRUCTION
ACT.—The Library Services and Construction Act (20
U.S.C. 351 et seq.) is repealed.
(b) TITLE II OF THE HIGHER EDUCATION ACT
OF 1965.—Title II of the Higher Education Act of 1965
(20 U.S.C. 1021 et seq.), relating to academic libraries
and information services, is repealed.
(c) PART D OF TITLE XIII OF
THE HIGHER
EDUCATION AMENDMENTS
OF 1986.—Part D of title
XIII of the Higher Education Amendments of 1986 (20
U.S.C. 1029 note), relating to library resources, is re-
pealed.
(d) SECTION 519 OF THE EDUCATION AMEND-
MENTS OF 1974.—Section 519 of the Education Amend-
ments of 1974 (20 U.S.C. 1221i) is repealed.
(e) PART F OF
THE TECHNOLOGY
FOR EDU-
CATION ACT OF 1994.—Part F of the Technology for
Education Act of 1994 (20 U.S.C. 7001 et seq.), con-
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tained in title III of the Elementary and Secondary Edu-
cation Act of 1965, is repealed.
SEC. 709. CONFORMING AMENDMENTS.
(a) REFERENCES
TO LIBRARY SERVICES
AND
CONSTRUCTION ACT.—
(1) TECHNOLOGY
FOR
EDUCATION
ACT
OF
1994.—Section 3113(10) of the Technology for Edu-
cation Act of 1994 (20 U.S.C. 6813(10)) is amended
by striking ‘‘section 3 of the Library Services and
Construction Act;’’ and inserting ‘‘section 213 of the
Library Services and Technology Act;’’
(2) OMNIBUS EDUCATION RECONCILIATION ACT
OF 1981.—Section 528 of the Omnibus Education
Reconciliation Act of 1981 (20 U.S.C. 3489) is
amended—
(A) by striking paragraph (12); and
(B) by redesignating paragraphs (13)
through (15) as paragraphs (12) through (14),
respectively.
(3) ELEMENTARY AND SECONDARY EDUCATION
ACT OF 1965.—Section 3113(10) of the Elementary
and Secondary Education Act of 1965 (20 U.S.C.
6813(10)) is amended by striking ‘‘section 3 of the
Library Services and Construction Act’’ and insert-
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ing ‘‘section 213 of the Library Services and Tech-
nology Act’’.
(4) COMMUNITY
IMPROVEMENT
VOLUNTEER
ACT OF 1994.—Section 7305 of the Community Im-
provement Volunteer Act of 1994 (40 U.S.C. 276d–
3) is amended—
(A) by striking paragraph (1); and
(A) 
by 
redesignating 
paragraphs 
(2)
through (6) as paragraphs (1) through (5), re-
spectively.
(5) APPALACHIAN
REGIONAL
DEVELOPMENT
ACT OF 1965.—Section 214(c) of the Appalachian
Regional Development Act of 1965 (40 U.S.C. App.
214(c)) is amended by striking ‘‘Library Services
and Construction Act;’’
(6) DEMONSTRATION CITIES AND METROPOLI-
TAN DEVELOPMENT ACT OF 1966.—Section 208(2) of
the Demonstration Cities and Metropolitan Develop-
ment Act of 1966 (42 U.S.C. 3338(2)) is amended
by striking ‘‘title II of the Library Services and Con-
struction Act;’’.
(7) PUBLIC LAW 87–688.—Subsection (c) of the
first section of the Act entitled ‘‘An Act to extend
the application of certain laws to American Samoa’’,
approved September 25, 1962 (48 U.S.C. 1666(c))
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is amended by striking ‘‘the Library Services Act
(70 Stat. 293; 20 U.S.C. 351 et seq.),’’.
(8) COMMUNICATIONS
ACT
OF
1934.—Para-
graph (4) of section 254(h) of the Communications
Act of 1934 (47 U.S.C. 254(h)(4) is amended by
striking ‘‘library not eligible for participation in
State-based plans for funds under title III of the Li-
brary Services and Construction Act (20 U.S.C.
335c et seq.)’’ and inserting ‘‘library or library con-
sortium not eligible for assistance from a State li-
brary administrative agency under the Library Serv-
ices and Technology Act’’.
(b) REFERENCES
TO INSTITUTE
OF MUSEUM
SERVICES.—
(1) TITLE 5, UNITED STATES CODE.—Section
5315 of title 5 United States Code, is amended by
striking the following:
‘‘Director of the Institute of Museum Services,’’
and inserting the following:
‘‘Director of the Institute of Museum and Li-
brary Services.’’.
(2) DEPARTMENT
OF
EDUCATION
ORGANIZA-
TION ACT.—Section 301 of the Department of Edu-
cation Organization Act (20 U.S.C. 3441) is amend-
ed—
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(A) in subsection (a)—
(i) by striking paragraph (5); and
(ii) by redesignating paragraphs (6)
and (7) as paragraphs (5) and (6), respec-
tively; and
(B) in subsection (b)—
(i) by striking paragraph (4); and
(ii) by redesignating paragraphs (5)
through (7) as paragraphs (4) through (6),
respectively.
(3) ELEMENTARY AND SECONDARY EDUCATION
ACT OF 1965.—
(A) 
Sections 
2101(b), 
2205(c)(1)(D),
2208(d)(1)(H)(v), and 2209(b)(1)(C)(iv), and
subsection (d)(6) and (e)(2) of section 10401 of
the Elementary and Secondary Education Act
of 1965 (20 U.S.C. 6621(b), 6645(c)(1)(D),
6648(d)(1)(H)(v), 6649(b)(1)(C)(vi), and 8091
(d)(6) and (e)(2)) are amended by striking ‘‘the
Institute of Museum Services’’ and inserting
‘‘the Institute of Museum and Library Serv-
ices’’.
(B) Section 10412(b) of such Act (20
U.S.C. 8102(b) is amended—
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(i) in paragraph (2), by striking ‘‘the
Director of the Institute Museum Serv-
ices,’’ and inserting ‘‘the Director of the
Institute of Museum and Library Serv-
ices,’’; and
(ii) in paragraph (7), by striking ‘‘the
Director of the Institute of Museum Serv-
ices,’’ and inserting ‘‘the director of the In-
stitute of Museum and Library Services,’’.
(C) Section 10414(a)(2)(B) of such Act
(20 U.S.C. 8104(a)(2)(B)) is amended by strik-
ing clause (iii) and inserting the following new
clause:
‘‘(iii) the Institute of Museum and Li-
brary Services.’’.
(c) REFERENCES
TO OFFICE
OF LIBRARIES
AND LEARNING RESOURCES.—Section 413(b)(1) of the
Department of Education Organization Act (20 U.S.C.
3473(b)(1)) is amended—
(1) by striking subparagraph (H); and
(2) by redesignating subparagraphs (I) through
(M) as subparagraphs (H) through (L), respectively.
(d) REFERENCE
TO STATE POSTSECONDARY
REVIEW ENTITY PROGRAMS.—Section 356(b)(2) of the
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Higher Education Act of 1965 (20 U.S.C. 10696(b)) is
amended by striking ‘‘II,’’.
This Act may be cited as the ‘‘Departments of
Labor, Health and Human Services, and Education, and
Related Agencies Appropriations Act, 1997’’.
(f) For programs, projects or activities in the
Treasury, Postal Service, and General Appropriations
Act, 1997, provided as follows, to be effective as if it had
been enacted into law as the regular appropriations Act:
AN ACT
Making appropriations for the Treasury Depart-
ment, the United States Postal Service, the Executive Of-
fice of the President, and certain Independent Agencies,
for the fiscal year ending September 30, 1997, and for
other purposes.
TITLE I—DEPARTMENT OF THE TREASURY
DEPARTMENTAL OFFICES
SALARIES AND EXPENSES
For necessary expenses of the Departmental Offices
including operation and maintenance of the Treasury
Building and Annex; hire of passenger motor vehicles;
maintenance, repairs, and improvements of, and purchase
of commercial insurance policies for, real properties leased
or owned overseas, when necessary for the performance
of official business; not to exceed $2,900,000 for official
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travel expenses; not to exceed $150,000 for official recep-
tion and representation expenses; not to exceed $258,000
for unforeseen emergencies of a confidential nature, to be
allocated and expended under the direction of the Sec-
retary of the Treasury and to be accounted for solely on
his certificate; $111,760,000.
AUTOMATION ENHANCEMENT
INCLUDING TRANSFER OF FUNDS
For the development and acquisition of automatic
data processing equipment, software, and services for the
Department of the Treasury, $27,100,000, of which
$15,000,000 shall be available to the United States Cus-
toms Service for the Automated Commercial Environment
project, and of which $5,600,000 shall be available to the
United States Customs Service for the International
Trade Data System: Provided, That these funds shall re-
main available until September 30, 1999: Provided further,
That these funds shall be transferred to accounts and in
amounts as necessary to satisfy the requirements of the
Department’s offices, bureaus, and other organizations:
Provided further, That this transfer authority shall be in
addition to any other transfer authority provided in this
Act: Provided further, That none of the funds shall be used
to support or supplement Internal Revenue Service appro-
priations for Information Systems and Tax Systems Mod-
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ernization: Provided further, That of the funds appro-
priated for the Automated Commercial Environment,
$3,475,000 may not be obligated until the Commissioner
of Customs consults with the Committees on Appropria-
tions regarding deficiencies identified by the General Ac-
counting Office.
OFFICE OF INSPECTOR GENERAL
SALARIES AND EXPENSES
For necessary expenses of the Office of Inspector
General in carrying out the provisions of the Inspector
General Act of 1978, as amended, not to exceed
$2,000,000 for official travel expenses; including hire of
passenger motor vehicles; and not to exceed $100,000 for
unforeseen emergencies of a confidential nature, to be allo-
cated and expended under the direction of the Inspector
General of the Treasury; $29,736,000.
OFFICE OF PROFESSIONAL RESPONSIBILITY
SALARIES AND EXPENSES
For necessary expenses of the Office of Professional
Responsibility, including purchase and hire of passenger
motor vehicles, $1,500,000.
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TREASURY BUILDINGS AND ANNEX REPAIR AND
RESTORATION
INCLUDING TRANSFER OF FUNDS
For the repair, alteration, and improvement of the
Treasury Building and Annex, $28,213,000, to remain
available until expended: Provided, That funds previously
made available under this title for the Secret Service
Headquarter’s building shall be transferred to the Secret
Service Acquisition, Construction, Improvement and Re-
lated Expenses appropriation.
FINANCIAL CRIMES ENFORCEMENT NETWORK
SALARIES AND EXPENSES
For necessary expenses of the Financial Crimes En-
forcement Network, including hire of passenger motor ve-
hicles; travel expenses of non-Federal law enforcement
personnel to attend meetings concerned with financial in-
telligence activities, law enforcement, and financial regula-
tion; not to exceed $14,000 for official reception and rep-
resentation expenses; and for assistance to Federal law en-
forcement agencies, with or without reimbursement;
$22,387,000: Provided, That notwithstanding any other
provision of law, the Director of the Financial Crimes En-
forcement Network may procure up to $500,000 in spe-
cialized, unique, or novel automatic data processing equip-
ment, ancillary equipment, software, services, and related
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resources from commercial vendors without regard to oth-
erwise applicable procurement laws and regulations and
without full and open competition, utilizing procedures
best suited under the circumstances of the procurement
to efficiently fulfill the agency’s requirements: Provided
further, That funds appropriated in this account may be
used to procure personal services contracts.
DEPARTMENT OF THE TREASURY FORFEITURE FUND
For necessary expenses of the Treasury Forfeiture
Fund, as authorized by Public Law 102–393, not to ex-
ceed $10,000,000, to be derived from deposits in the fund:
Provided, That notwithstanding any other provision of
law, not to exceed $7,500,000 shall be made available for
the development of a Federal wireless communication sys-
tem: Provided further, That the Secretary of the Treasury
is authorized to receive all unavailable collections trans-
ferred from the Special Forfeiture Fund established by
section 6073 of the Anti-Drug Abuse Act of 1988 (21
U.S.C. 1509) by the Director of the Office of Drug Con-
trol Policy as a deposit into the Treasury Forfeiture Fund
(31 U.S.C. 9703(a)).
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VIOLENT CRIME REDUCTION PROGRAMS
INCLUDING TRANSFER OF FUNDS
For activities authorized by Public Law 103–322, to
remain available until expended, which shall be derived
from the Violent Crime Reduction Trust Fund, as follows:
(a) As authorized by section 190001(e), $89,000,000,
of which $36,595,000 shall be available to the Bureau of
Alcohol, Tobacco and Firearms, of which $3,000,000 shall
be available for administering the Gang Resistance Edu-
cation and Training program, of which $3,662,000 shall
be available for ballistics technologies, including the pur-
chase, maintenance and upgrading of equipment and of
which $29,133,000 shall be available to enhance training
and purchase equipment and services, and of which
$800,000 shall be available for project LEAD; of which
$18,300,000 shall be available to the Secretary as author-
ized by section 732 of Public Law 104–132, as amended
by Section 113 of the Fiscal Year 1997 Department of
Commerce, Justice and State, and the Judiciary, and Re-
lated Agencies Appropriations Act; of which $1,000,000
shall be available to the Financial Crimes Enforcement
Network; of which $20,000,000 shall be available to the
United States Secret Service, of which no less than
$1,400,000 shall be available for a grant for activities re-
lated to the investigations of missing and exploited chil-
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dren; and of which $13,105,000 shall be available to the
Federal Drug Control Programs, High Intensity Drug
Trafficking Areas program;
(b) As authorized by section 32401, $8,000,000, for
disbursement through grants, cooperative agreements or
contracts, to local governments for Gang Resistance Edu-
cation and Training: Provided, That notwithstanding sec-
tions 32401 and 310001, such funds shall be allocated
only to the affected State and local law enforcement and
prevention organizations participating in such projects.
TREASURY FRANCHISE FUND
There is hereby established in the Treasury a fran-
chise fund pilot, as authorized by section 403 of Public
Law 103–356, to be available as provided in such section
for expenses and equipment necessary for the maintenance
and operation of such financial and administrative support
services as the Secretary determines may be performed
more advantageously as central services: Provided, That
any inventories, equipment, and other assets pertaining to
the services to be provided by such fund, either on hand
or on order, less the related liabilities or unpaid obliga-
tions, and any appropriations made for the purpose of pro-
viding capital, shall be used to capitalize such fund: Pro-
vided further, That such fund shall be reimbursed or cred-
ited with the payments, including advanced payments,
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from applicable appropriations and funds available to the
Department and other Federal agencies for which such ad-
ministrative and financial services are performed, at rates
which will recover all expenses of operation, including ac-
crued leave, depreciation of fund plant and equipment,
amortization of Automatic Data Processing (ADP) soft-
ware and systems, and an amount necessary to maintain
a reasonable operating reserve, as determined by the Sec-
retary: Provided further, That such fund shall provide
services on a competitive basis: Provided further, That an
amount not to exceed 4 percent of the total annual income
to such fund may be retained in the fund for fiscal year
1997 and each fiscal year thereafter, to remain available
until expended, to be used for the acquisition of capital
equipment and for the improvement and implementation
of Treasury financial management, ADP, and other sup-
port systems: Provided further, That no later than 30 days
after the end of each fiscal year, amounts in excess of this
reserve limitation shall be deposited as miscellaneous re-
ceipts in the Treasury: Provided further, That such fran-
chise fund pilot shall terminate pursuant to section 403(f)
of Public Law 103–356.