tem, as the case may be, shall be substituted
for the Director of the Office of Thrift Super-
vision as a party to the arrangement; and
(B) consult with the Comptroller, the Cor-
poration, or the Board to coordinate and facili-
tate a prompt and reasonable transition.
(d) TRANSFER OF PROPERTY.—Effective January 1,
1998, all property of the Office of Thrift Supervision shall
be transferred to the Comptroller of the Currency, the
Federal Deposit Insurance Corporation, or the Board of
Governors of the Federal Reserve System, as determined
in accordance with subsections (a) and (b).
SEC. 2243. SAVINGS PROVISIONS.
(a) EXISTING RIGHTS, DUTIES, AND OBLIGATIONS
NOT AFFECTED.—No provision of this title shall be con-
strued as affecting the validity of any right, duty, or obli-
gation of the United States, the Director of the Office of
Thrift Supervision, or any person, which existed on the
day before the date upon which the position of Director
of the Office of Thrift Supervision and the Office of Thrift
Supervision are abolished.
(b) CONTINUATION OF SUITS.—No action or other
proceeding commenced by or against the Director of the
Office of Thrift Supervision shall abate by reason of enact-
ment of this Act, except that, effective January 1, 1998,
the Comptroller of the Currency, the Federal Deposit In-
surance Corporation, or the Board of Governors of the
Federal Reserve System, as the case may be, shall be sub-
stituted as a party to any such action or proceeding.
(c) CONTINUATION OF ADMINISTRATIVE RULES.—
All orders, resolutions, determinations, regulations, inter-
pretative rules, other interpretations, guidelines, proce-
dures, supervisory and enforcement actions, and other ad-
visory material (other than any regulation implementing
or prescribed pursuant to section 3(f) of the Home Own-
ers’ Loan Act (as in effect on September 13, 1995))
which—
(1) have been issued, made, prescribed, or per-
mitted to become effective by the Office of Thrift
Supervision, and
(2) are in effect on December 31, 1996, (or be-
come effective after such date pursuant to the terms
of the order, resolution, determination, rule, other
interpretation, guideline, procedure, supervisory or
enforcement action, and other advisory material, as
in effect on such date), shall—
(A) continue in effect according to the
terms of such orders, resolutions, determina-
tions, regulations, interpretative rules, other in-
terpretations, guidelines, procedures, super-
visory or enforcement actions, or other advisory
material;
(B) be administered by the Comptroller of
the Currency, the Federal Deposit Insurance
Corporation, or the Board of Governors of the
Federal Reserve System; and
(C) be enforceable by or against the Comp-
troller of the Currency, the Federal Deposit In-
surance Corporation, or the Board of Governors
of the Federal Reserve System until modified,
terminated, set aside, or superseded in accord-
ance with applicable law by the Comptroller,
Corporation, or Board, by any court of com-
petent jurisdiction, or by operation of law.
(d) TREATMENT OF REFERENCES IN ADJUSTABLE
RATE MORTGAGES ISSUED BEFORE FIRREA.—For pur-
poses of section 402(e) of Financial Institutions Reform,
Recovery, and Enforcement Act of 1989 (12 U.S.C. 1437
note), any reference in such section to—
(A) the Director of the Office of Thrift Su-
pervision shall be deemed to be a reference to
the Secretary of the Treasury; and
(B) a Savings Association Insurance Fund
member shall be deemed to be a reference to an
insured depository institution (as defined in sec-
tion 3 of the Federal Deposit Insurance Act).
(e) TREATMENT OF REFERENCES IN ADJUSTABLE
RATE
MORTGAGE
INSTRUMENTS
ISSUED
AFTER
FIRREA.—
(1) IN GENERAL.—For purposes of adjustable
rate mortgage instruments that are in effect as of
the date of enactment of this Act, any reference in
the instrument to the Director of the Office of
Thrift Supervision or Savings Association Insurance
Fund members shall be treated as a reference to the
Secretary of the Treasury or insured depository in-
stitutions (as defined in section 3 of the Federal De-
posit Insurance Act), as appropriate.
(2) SUBSTITUTION FOR INDEXES.—If any index
used to calculate the applicable interest rate on any
adjustable rate mortgage instrument is no longer
calculated and made available as a direct or indirect
result of the enactment of this Act, any index—
(A) made available by the Secretary of the
Treasury; or
(B) determined by the Secretary of the
Treasury, pursuant to paragraph (4), to be sub-
stantially similar to the index which is no
longer calculated or made available,
may be substituted by the holder of any such adjust-
able rate mortgage instrument upon notice to the
borrower.
(3) AGENCY
ACTION
REQUIRED
TO
PROVIDE
CONTINUED AVAILABILITY OF INDEXES.—Promptly
after the enactment of this subsection, the Secretary
of the Treasury, the Chairperson of the Federal De-
posit Insurance Corporation, and the Comptroller of
the Currency shall take such action as may be nec-
essary to assure that the indexes prepared by the
Director of the Office of Thrift Supervision imme-
diately prior to the enactment of this subsection and
used to calculate the interest rate on adjustable rate
mortgage instruments continue to be available.
(4) REQUIREMENTS RELATING TO SUBSTITUTE
INDEXES.—If any agency can no longer make avail-
able an index pursuant to paragraph (3), an index
that is substantially similar to such index may be
substituted for such index for purposes of paragraph
(2) if the Secretary of the Treasury determines,
after notice and opportunity for comment, that—
(A) the new index is based upon data sub-
stantially similar to that of the original index;
and
(B) the substitution of the new index will
result in an interest rate substantially similar to
the rate in effect at the time the original index
became unavailable.
SEC. 2244. REFERENCES IN FEDERAL LAW TO DIRECTOR OF
THE OFFICE OF THRIFT SUPERVISION.
Any reference in any Federal law to the Director of
the Office of Thrift Supervision or the Office of Thrift
Supervision shall be deemed to be a reference to the appro-
priate Federal banking agency (as defined in section 3(q)
of the Federal Deposit Insurance Act).
SEC. 2245. RECONFIGURATION OF BOARD OF DIRECTORS
OF FDIC AS A RESULT OF REMOVAL OF DI-
RECTOR OF THE OFFICE OF THRIFT SUPER-
VISION.
(a) IN GENERAL.—Section 2(a)(1) of the Federal
Deposit Insurance Act (12 U.S.C. 1812(a)(1)) is amended
to read as follows:
‘‘(1) IN
GENERAL.—The management of the
Corporation shall be vested in a Board of Directors
consisting of 3 members—
‘‘(A) 1 of whom shall be the Comptroller of
the Currency; and
‘‘(B) 2 of whom shall be appointed by the
President, by and with the advice and consent
of the Senate, from among individuals who are
citizens of the United States.’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 2(a)(2) of the Federal Deposit In-
surance Act (12 U.S.C. 1812(a)(2)) is amended—
(A) by striking ‘‘February 28, 1993’’ and
inserting ‘‘January 1, 1998’’; and
(B) by striking ‘‘3’’ and inserting ‘‘2’’.
(2) Section 2(d)(2) of the Federal Deposit In-
surance Act (12 U.S.C. 1812(d)(2)) is amended—
(A) by striking ‘‘or the office of Director
of the Office of Thrift Supervision’’;
(B) by striking ‘‘or such Director’’;
(C) by striking ‘‘or the Acting Director of
the Office of Thrift Supervision, as the case
may be’’; and
(D) by striking ‘‘or Director’’.
(c) EFFECTIVE DATE.—The amendments made by
subsections (a) and (b) shall take effect on January 1,
1998.
(d) DESIGNATION OF ABOLISHED POSITION.—Unless
there is a vacancy in the position of an appointed member
of the Board of Directors as of January 1, 1998, the
President, consistent with the requirements of section
2(a)(2) of the Federal Deposit Insurance Act, shall des-
ignate which of the 3 positions of appointed member of
such Board of Directors shall be abolished pursuant to
the amendment made by subsection (a).
CHAPTER 4—LOAN LOSS RESERVE
TREATMENT
SEC. 2261. SENSE OF THE CONGRESS.
It is the sense of the Congress that—
(1) one of the major obstacles to the conversion
of thrift institutions into banks is the tax treatment
of bad debt reserve deductions of thrift institutions;
(2) as part of a comprehensive solution to the
merger of the Federal deposit insurance funds and
thrift and bank charters, section 593 of the Internal
Revenue Code of 1986 should be repealed; and
(3) the repeal of section 593 of the Internal
Revenue Code of 1986 should be accomplished in
such a fashion as would neither threaten the eco-
nomic viability of thrift institutions which convert to
bank charters nor cause the Federal Treasury to
lose revenue.
Subtitle C—Community
Reinvestment Act Amendments
SEC. 2301. EXPRESSION OF CONGRESSIONAL INTENT.
Subsection (b) of section 802 of the Community Rein-
vestment Act of 1977 (12 U.S.C. 2901) is amended to
read as follows:
‘‘(b) It is the purpose of this title to require each ap-
propriate Federal financial supervisory agency to use its
authority, when examining financial institutions, to en-
courage such institutions to help meet the credit needs of
the local communities in which they are chartered consist-
ent with the safe and sound operation of such institutions.
When examining financial institutions, a supervisory agen-
cy shall not impose additional burden, recordkeeping, or
reporting upon such institutions.’’.
SEC. 2302. COMMUNITY REINVESTMENT ACT EXEMPTION.
The Community Reinvestment Act of 1977 (12
U.S.C. 2901 et seq.) is amended by adding at the end
the following new section:
‘‘SEC. 809. TREATMENT OF SMALL FINANCIAL INSTITU-
TIONS.
‘‘(a) IN GENERAL.—In lieu of being evaluated under
section 806A and receiving a written evaluation under sec-
tion 807, an eligible regulated financial institution shall
make a notice, signed by the president, available to the
public that—
‘‘(1) lists the type of credit and services that
the institution provides to help meet the credit needs
of the local community; and
‘‘(2) states that the institution helps meet the
credit needs of the local communities in which the
institution operates, including low- and moderate-in-
come neighborhoods.
‘‘(b) ELIGIBLE REGULATED FINANCIAL INSTITU-
TIONS.—
‘‘(1) IN GENERAL.—A regulated financial insti-
tution shall be eligible for purposes of subsection (a)
if the institution and any bank holding company
which controls such institution have aggregate assets
of not more than $100,000,000.
‘‘(2) 
ANNUAL
ADJUSTMENT.—The 
dollar
amount in paragraph (1) shall be adjusted annually
after December 31, 1994, by the annual percentage
increase in the Consumer Price Index for Urban
Wage Earners and Clerical Workers published by
the Bureau of Labor Statistics.
‘‘(c) EXEMPTION FROM OTHER REQUIREMENTS.—A
regulated financial institution which has complied with the
notice requirements of subsection (a) shall not be subject
to section 804 and any regulations prescribed under sec-
tion 806.’’.
SEC. 2303. SELF-CERTIFICATION OF CRA COMPLIANCE.
Section 804 of the Community Reinvestment Act of
1977 (12 U.S.C. 2903) is amended by adding at the end
the following new subsection (c):
‘‘(c) SELF-CERTIFICATION OF CRA COMPLIANCE.—
‘‘(1) CERTIFICATION.—In lieu of being evalu-
ated under section 806A and receiving a written
evaluation under section 807, a qualifying financial
institution may elect to self-certify to the appro-
priate Federal financial supervisory agency that such
institution is in compliance with the goals of this
title.
‘‘(2) QUALIFYING INSTITUTION.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the term ‘qualifying institution’
means a financial institution which—
‘‘(i) has not more than $250 million
in assets;
‘‘(ii) has not been found to have en-
gaged in a pattern or practice of illegal
discrimination under the Fair Housing Act
or the Equal Credit Opportunity Act for
the preceding 5-year calendar period; and
‘‘(iii) received rating under section
807(b)(2) of ‘satisfactory’ or ‘outstanding’
in the most recent evaluation of such insti-
tution under this title.
‘‘(B) ANNUAL
ADJUSTMENT.—The dollar
amount in subparagraph (A) shall be adjusted
annually after December 31, 1994, by the an-
nual percentage increase in the Consumer Price
Index for Urban Wage Earners and Clerical
Workers published by the Bureau of Labor Sta-
tistics.
‘‘(3) PUBLIC NOTICE.—
‘‘(A) IN GENERAL.—A qualifying institu-
tion shall maintain in every branch a public no-
tice stating that—
‘‘(i) the institution has self-certified
that the institution is satisfactorily helping
to meet the credit needs of its community;
‘‘(ii) the institution maintains—
‘‘(I) at the main office of such in-
stitution, a public file which contains
a copy of the self-certification to the
appropriate Federal financial super-
visory agency; and
‘‘(II) a map delineating the com-
munity served by the institution;
‘‘(iii) a list of the types of credit and
services that the institution provides to the
community served by the institution;
‘‘(iv) such other information that the
institution believes demonstrates the insti-
tution’s record of helping to meet the cred-
it needs of its community; and
‘‘(v) every public comment or letter to
the institution (and any response by the
institution) received within the previous 2-
year period about the record of the institu-
tion of helping to meet the credit needs of
its community.
‘‘(B) PUBLIC FILE.—A qualifying institu-
tion shall maintain a public file containing the
contents described in this paragraph at the in-
stitution’s main office.
‘‘(4) RATING.—
‘‘(A) IN GENERAL.—A qualifying institu-
tion shall be deemed to have a rating of a ‘sat-
isfactory record of meeting community credit
needs’ for the purposes of this section and sec-
tion 806A(c).
‘‘(B) PUBLICATION.—Each Federal finan-
cial supervisory agency shall publish in the Fed-
eral Register once each month a list of institu-
tions that have self-certified during the previous
month.
‘‘(C) PUBLICATION CONSTITUTES DISCLO-
SURE.—Publication of the name of the institu-
tion in the Federal Register as having self-cer-
tified shall constitute disclosure of the rating of
the institution to the public for purposes of sec-
tions 806A and 807.
‘‘(5) REGULATORY REVIEW.—
‘‘(A) ASSESSMENT.—During each exam-
ination for safety and soundness, a qualifying
institution’s supervisory agency shall, as part of
the agency’s review of the institution’s loans,
assess whether the institution’s basis for its
self-certification is reasonable based on the pub-
lic notice and the information contained in the
public file pursuant to paragraph (3).
‘‘(B) 
EXAMINATION
IF
SELF-CERTIFI-
CATION IS NOT REASONABLE.—If the agency
determines that the institution’s basis for the
institution’s self-certification is not reasonable,
the agency shall schedule an examination of the
institution for the purpose of assessing the in-
stitution’s record of helping to meet the credit
needs of its community.
‘‘(C) 
REVOCATION
OF
SELF-CERTIFI-
CATION.—If an assessment pursuant to sub-
paragraph (B) results in a less than ‘satisfac-
tory’ rating, the agency shall revoke the institu-
tion’s self-certification and substitute a written
evaluation as provided under section 807.
‘‘(D) PERIOD OF INELIGIBILITY FOR SELF-
CERTIFICATION.—An institution whose self-cer-
tification has been revoked may not self-certify
pursuant to this subsection during the 5 years
succeeding the year in which the self-certifi-
cation is revoked.
‘‘(E) SUBSEQUENT
ELIGIBILITY.—After
the end of the period of ineligibility described in
subparagraph (D), an institution which meets
the requirements for self-certification may elect
to self-certify.
‘‘(6) PROHIBITION
ON
ADDITIONAL
REQUIRE-
MENTS.—No appropriate Federal financial super-
visory agency may impose any additional require-
ments, whether by regulation or otherwise, relating
to the self-certification procedure under this sub-
section.’’.
SEC. 2304. COMMUNITY INPUT AND CONCLUSIVE RATING.
(a) CONFORMING AMENDMENT.—Section 804(a) of
the Community Reinvestment Act of 1977 (12 U.S.C.
2903) is amended by inserting ‘‘conducted in accordance
with section 806A,’’ after ‘‘financial institution,’’.
(b) COMMUNITY INPUT AND CONCLUSIVE RATING.—
The Community Reinvestment Act of 1977 (12 U.S.C.
2901 et seq.) is amended by inserting after section 806
the following new section:
‘‘SEC. 806A. COMMUNITY INPUT AND CONCLUSIVE RATING.
‘‘(a) PUBLICATION OF EXAM SCHEDULE AND OPPOR-
TUNITY FOR COMMENT.—
‘‘(1) PUBLICATION OF NOTICE.—Each appro-
priate Federal financial supervisory agency shall—
‘‘(A) publish in the Federal Register, 30
days before the beginning of a calendar quarter,
a listing of institutions scheduled for evaluation
for compliance with this title during such cal-
endar quarter; and
‘‘(B) provide opportunity for written com-
ments from the community on the performance,
under this title, of each institution scheduled
for evaluation.
‘‘(2) COMMENT
PERIOD.—Written comments
may not be submitted to an appropriate Federal fi-
nancial supervisory agency pursuant to paragraph
(1) after the end of the 30-day period beginning on
the first day of the calendar quarter.
‘‘(3) COPY OF COMMENTS.—The agency shall
provide a copy of such comments to the institution.
‘‘(b) EVALUATION.—The appropriate Federal finan-
cial supervisory agency shall—
‘‘(1) evaluate the institution in accordance with
the standards contained in section 804; and
‘‘(2) prepare and publish a written evaluation of
the institution as required under section 807.
‘‘(c) RECONSIDERATION OF RATING.—
‘‘(1) REQUEST FOR RECONSIDERATION.—A re-
consideration of an institution’s rating referred to in
section 807(b)(1)(C), may be requested within 30
days of the rating’s disclosure to the public.
‘‘(2) PROCEDURES FOR REQUEST.—Any such
request shall be made in writing and filed with the
appropriate Federal financial supervisory agency,
and may be filed by the institution or a member of
the community.
‘‘(3) BASIS FOR REQUEST.—Any request for re-
consideration under this subsection shall be based on
significant issues of a substantive nature which are
relevant to the delineated community of the institu-
tion and, in the case of a request by a member of
the community, shall be limited to issues previously
raised in comments submitted pursuant to sub-
section (a).
‘‘(4) COMPLETION
OF
REVIEW.—The appro-
priate Federal financial supervisory agency shall
complete any requested reconsideration within 30
days of the filing of the request.
‘‘(d) CONCLUSIVE RATING.—
‘‘(1) IN GENERAL.—An institution’s rating shall
become conclusive on the later of—
‘‘(A) 30 days after the rating is disclosed
to the public; or
‘‘(B) the completion of any requested re-
consideration by the Federal financial super-
visory agency.
‘‘(2) RATING CONCLUSIVE OF MEETING COMMU-
NITY CREDIT NEEDS.—An institution’s rating shall
be the conclusive assessment of the institution’s
record of meeting the credit needs of its community
for purposes of section 804 until the institution’s
next rating, developed pursuant to an examination,
becomes conclusive.
‘‘(3) SAFE HARBOR.—Institutions which have
received a ‘satisfactory’ or ‘outstanding’ rating shall
be deemed to have met the purposes of section 804.
‘‘(4) RULE OF CONSTRUCTION.—Notwithstand-
ing any other provision of law, no provision of this
section shall be construed as granting a cause of ac-
tion to any person.’’.
(c) OVERALL EVALUATION OF INSTITUTION.—Para-
graph (2) of section 804(a) of the Community Reinvest-
ment Act of 1977 (12 U.S.C. 2903(a)) is amended to read
as follows:
‘‘(2) take such record into account in the over-
all evaluation of the condition of the institution by
the appropriate Federal financial supervisory agen-
cy.’’.
SEC. 2305. SPECIAL PURPOSE FINANCIAL INSTITUTIONS.
(a) IN GENERAL.—Section 804 of the Community
Reinvestment Act of 1977 (12 U.S.C. 2903) is amended
by inserting after subsection (c) (as added by section 2303
of this subtitle) the following new subsection:
‘‘(d) SPECIAL PURPOSE INSTITUTIONS.—
‘‘(1) IN GENERAL.—In conducting assessments
pursuant to this section at any special purpose insti-
tution, the appropriate Federal financial supervisory
agency shall—
‘‘(A) consider the nature of business such
institution is involved in; and
‘‘(B) assess and take into account the
record of the institution commensurate with the
amount of deposits (as defined in section 3(1)
of the Federal Deposit Insurance Act) received
by such institution.
‘‘(2) STANDARDS.—Each appropriate Federal
financial supervisory agency shall develop standards
under which special purpose institutions may be
deemed to have complied with the requirements of
this title which are consistent with the specific na-
ture of such businesses.’’.
(b) SPECIAL PURPOSE INSTITUTION DEFINED.—
Section 803 of the Community Reinvestment Act of 1977
(12 U.S.C. 2902) is amended by adding at the end the
following new paragraph:
‘‘(5) SPECIAL
PURPOSE
INSTITUTIONS.—The
term ‘special purpose institution’ means a financial
institution that does not generally accept deposits
from the public in amounts of less than $100,000,
such as wholesale, credit card, and trust institu-
tions.’’.
SEC. 2306. INCREASED INCENTIVES FOR LENDING TO LOW-
AND MODERATE-INCOME COMMUNITIES.
(a) IN GENERAL.—Section 804(b) of the Community
Reinvestment Act of 1977 (12 U.S.C. 2903(b)) is amend-
ed to read as follows:
‘‘(b) POSITIVE CONSIDERATION OF CERTAIN LOANS
AND INVESTMENTS.—In assessing and taking into ac-
count the records of a regulated financial institution under
subsection (a), the appropriate Federal financial super-
visory agency shall—
‘‘(1) consider as a positive factor, consistent
with the safe and sound operation of the institution,
the institution’s investment in or loan to—
‘‘(A) any minority depository institution or
women’s depository institution (as such terms
are defined in section 808(b)) or any low-in-
come credit union;
‘‘(B) any joint venture or other entity or
project which promotes the public welfare in
any distressed community (as defined by such
agency) whether or not the distressed commu-
nity is located in the local community in which
the regulated financial institution is chartered
to do business; and
‘‘(C) targeted low- and moderate-income
communities, including real property loans to
such communities; and
‘‘(2) consider equally with other factors capital
investment, loan participation, and other ventures
undertaken by the institution in cooperation with—
‘‘(A) minority- and women-owned financial
institutions and low-income credit unions to the
extent that these activities help meet the credit
needs of the local communities in which such
institutions are chartered; and
‘‘(B) community development corporations
in extending credit and other financial services
principally to low- and moderate-income persons
and small businesses to the extent that such
community development corporations help meet
the credit needs of the local communities served
by the majority-owned institution.’’.
(b) AMENDMENT TO DEFINITIONS.—Section 803 of
the Community Reinvestment Act of 1977 (12 U.S.C.
2902) is amended by inserting after paragraph (5) (as
added by section 2305(b) of this subtitle) the following
new paragraph:
‘‘(6) STATE
BANK
SUPERVISOR.—The term
‘State bank supervisor’ has the same meaning as in
section 3(r) of the Federal Deposit Insurance Act.’’.
(c) TECHNICAL CORRECTION.—The 1st of the 2
paragraphs designated as paragraph (2) of section 803 of
the Community Reinvestment Act of 1977 (12 U.S.C.
2902) is amended to read as follows:
‘‘(D) the Director of the Office of Thrift
Supervision with respect to any savings associa-
tion (the deposits of which are insured by the
Federal Deposit Insurance Corporation) and
any savings and loan holding company (other
than a company which is a bank holding com-
pany);’’.
SEC. 2307. PROHIBITION ON ADDITIONAL REPORTING
UNDER CRA.
Section 806 of the Community Reinvestment Act of
1977 (12 U.S.C. 2905) is amended to read as follows:
‘‘SEC. 806. REGULATIONS.
‘‘(a) IN GENERAL.—
‘‘(1) 
PUBLICATION
REQUIREMENT.—Regula-
tions to carry out the purposes of this title shall be
published by each appropriate Federal financial su-
pervisory agency.
‘‘(2) PROHIBITION
ON
ADDITIONAL
RECORD-
KEEPING.—Regulations prescribed and policy state-
ments, commentary, examiner guidance, or other su-
pervisory material issued under this title shall not
impose any additional recordkeeping on a financial
institution.
‘‘(3) PROHIBITION
ON
LOAN
DATA
COLLEC-
TION.—No loan data may be required to be collected
and reported by a financial institution and no such
data may be made public by any Federal financial
supervisory agency under this title.’’.
SEC. 2308. TECHNICAL AMENDMENT.
Section 807(b)(1)(B) of the Community Reinvest-
ment Act (12 U.S.C. 2906) is amended by striking ‘‘The
information’’ and inserting ‘‘In the case of a regulated fi-
nancial institution that maintains domestic branches in 2
or more States, the information’’.
SEC. 2309. DUPLICATIVE REPORTING.
Section 10(g) of the Federal Home Loan Bank Act
(12 U.S.C. 1430(g)) is amended by adding at the end the
following new paragraph (3):
‘‘(3) SPECIAL RULE.—This subsection shall not
apply to members receiving a grade of ‘outstanding’
or ‘satisfactory’ under section 807 of the Community
Reinvestment Act of 1977.’’.
SEC. 2310. CRA CONGRESSIONAL OVERSIGHT.
(a) SENSE OF CONGRESS RELATING TO AGGRESSIVE
OVERSIGHT.—It is the sense of the Congress that the ap-
propriate committees of the House of Representatives and
the Senate should exercise aggressive oversight of the
adoption and implementation of any regulation by any ap-
propriate Federal financial supervisory agency under the
Community Reinvestment Act of 1977 after the date of
the enactment of this Act.
(b) AGENCY REPORTS REQUIRED.—
(1) IN GENERAL.—Each appropriate Federal fi-
nancial supervisory agency shall submit a report to
the Congress by December 31, 1996, and by Decem-
ber 31, 1997, on the implementation of all regula-
tions prescribed by such agency under the Commu-
nity Reinvestment Act of 1977 after the date of the
enactment of this Act.
(2) REQUIREMENTS
RELATING
TO
PREPARA-
TION OF REPORTS.—In preparing each report re-
quired under paragraph (1), each appropriate Fed-
eral financial supervisory agency shall—
(A) solicit and include comments from reg-
ulated financial institutions with respect to the
regulations which are the subject of the report;
and
100
(B) include quantifiable measures of the
cost savings achieved under the regulations
which are the subject of the report and the ef-
fectiveness of such regulations in achieving the
purposes of the Community Reinvestment Act
of 1977.
(3) DEFINITIONS.—For purposes of this sec-
tion, the terms ‘‘appropriate Federal financial super-
visory agency’’ and ‘‘regulated financial institution’’
have the same meanings as in section 803 of the
Community Reinvestment Act of 1977.
SEC. 2311. CONSULTATION AMONG EXAMINERS.
Section 10 of the Federal Deposit Insurance Act (12
U.S.C. 1820) is amended by adding at the end the follow-
ing new subsection:
‘‘(j) CONSULTATION AMONG EXAMINERS.—
‘‘(1) IN GENERAL.—Each appropriate Federal
banking agency shall take such action as may be
necessary to ensure that examiners employed by the
agency—
‘‘(A) consult on examination activities with
respect to any depository institution; and
‘‘(B) achieve an agreement and resolve any
inconsistencies on the recommendations to be
101
given to such institution as a consequence of
any examinations.
‘‘(2) 
EXAMINER-IN-CHARGE.—Each 
agency
shall consider appointing an examiner-in-charge with
respect to a depository institution to ensure con-
sultation on examination activities among all of the
agency’s examiners involved in examinations of such
institution.’’.
SEC. 2312. LIMITATION ON REGULATIONS.
Section 806 of the Community Reinvestment Act of
1977 (12 U.S.C. 2905) (as amended by section 2307) is
amended by adding at the end the following new sub-
sections:
‘‘(b) LIMITATION ON REGULATIONS.—No regulation
may be prescribed under this title by any Federal agency
which would—
‘‘(1) require any regulated financial institution
to—
‘‘(A) make any loan or enter into any
other agreement on the basis of any discrimina-
tory criteria prohibited under any law of the
United States; or
‘‘(B) make any loan to, or enter into any
other agreement with, any uncreditworthy per-
102
son that would jeopardize the safety and sound-
ness of such institution; or
‘‘(2) prevent or hinder in any way a financial
institution’s full responsibility to provide credit to all
segments of the community.
‘‘(c) ENCOURAGE LOANS TO CREDITWORTHY BOR-
ROWERS.—Regulations prescribed under this title shall en-
courage regulated financial institutions to make loans and
extend credit to all creditworthy persons, consistent with
safety and soundness.’’.
TITLE III—COMMITTEE ON
COMMERCE
Subtitle A—Communications
CHAPTER 1—SPECTRUM AUCTIONS
SEC. 3001. SPECTRUM AUCTIONS.
(a) EXTENSION AND EXPANSION OF AUCTION AU-
THORITY.—
(1) AMENDMENTS.—Section 309(j) of the Com-
munications Act of 1934 (47 U.S.C. 309(j)) is
amended—
(A) by striking paragraphs (1) and (2) and
inserting in lieu thereof the following:
‘‘(1) GENERAL AUTHORITY.—If, consistent with
the obligations described in paragraph (6)(E), mutu-
ally exclusive applications are accepted for any ini-
103
tial license or construction permit which will involve
an exclusive use of the electromagnetic spectrum,
then the Commission shall grant such license or per-
mit to a qualified applicant through a system of
competitive bidding that meets the requirements of
this subsection.
‘‘(2) EXEMPTIONS.—The competitive bidding
authority granted by this subsection shall not apply
to licenses or construction permits issued by the
Commission—
‘‘(A) that, as the result of the Commission
carrying out the obligations described in para-
graph (6)(E), are not mutually exclusive;
‘‘(B) for public safety radio services, in-
cluding non-Government uses that protect the
safety of life, health, and property and that are
not made commercially available to the public;
or
‘‘(C) for initial licenses or construction
permits for new terrestrial digital television
services assigned by the Commission to existing
terrestrial broadcast licensees to replace their
current television licenses.’’; and
(B) by striking ‘‘1998’’ in paragraph (11)
and inserting ‘‘2002’’.
104
(2) CONFORMING AMENDMENT.—Subsection (i)
of section 309 of such Act is repealed.
(3) EFFECTIVE DATE.—The amendment made
by paragraph (1)(A) shall not apply with respect to
any license or permit for which the Federal Commu-
nications Commission has accepted mutually exclu-
sive applications on or before the date of enactment
of this Act.
(b) COMMISSION OBLIGATION TO MAKE ADDITIONAL
SPECTRUM AVAILABLE BY AUCTION.—
(1) IN
GENERAL.—The Federal Communica-
tions Commission shall complete all actions nec-
essary to permit the assignment, by September 30,
2002, by competitive bidding pursuant to section
309(j) of the Communications Act of 1934 (47
U.S.C. 309(j)) of licenses for the use of bands of
frequencies that—
(A) individually span not less than 25
megahertz, unless a combination of smaller
bands can, notwithstanding the provisions of
paragraph (7) of such section, reasonably be ex-
pected to produce greater receipts;
(B) in the aggregate span not less than
100 megahertz;
(C) are located below 3 gigahertz; and
105
(D) have not, as of the date of enactment
of this Act—
(i) been designated by Commission
regulation for assignment pursuant to such
section; or
(ii) been identified by the Secretary of
Commerce pursuant to section 113 of the
National Telecommunications and Infor-
mation Administration Organization Act.
The Commission shall conduct the competitive
bidding for not less than one-half of such aggre-
gate spectrum by September 30, 2000.
(2) CRITERIA FOR REASSIGNMENT.—In making
available bands of frequencies for competitive bid-
ding pursuant to paragraph (1), the Commission
shall—
(A) seek to promote the most efficient use
of the spectrum;
(B) take into account the cost to incum-
bent licensees of relocating existing uses to
other bands of frequencies or other means of
communication;
(C) take into account the needs of public
safety radio services; and
106
(D) comply with the requirements of inter-
national agreements concerning spectrum allo-
cations.
(3) NOTIFICATION TO NTIA.—The Commission
shall notify the Secretary of Commerce if—
(A) the Commission is not able to provide
for the effective relocation of incumbent licens-
ees to bands of frequencies that are available to
the Commission for assignment; and
(B) the Commission has identified bands
of frequencies that are—
(i) suitable for the relocation of such
licensees; and
(ii) allocated for Federal Government
use, but that could be reallocated pursuant
to part B of the National Telecommuni-
cations and Information Administration
Organization Act (as amended by this
Act).
(c) IDENTIFICATION AND REALLOCATION OF FRE-
QUENCIES.—The National Telecommunications and Infor-
mation Administration Organization Act (47 U.S.C. 901
et seq.) is amended—
(1) in section 113, by adding at the end the fol-
lowing new subsection:
107
‘‘(f) ADDITIONAL REALLOCATION REPORT.—If the
Secretary receives a notice from the Commission pursuant
to section 3001(b)(3) of the Seven-Year Balanced Budget
Reconciliation Act of 1995, the Secretary shall prepare
and submit to the President and the Congress a report
recommending for reallocation for use other than by Fed-
eral Government stations under section 305 of the 1934
Act (47 U.S.C. 305), bands of frequencies that are suit-
able for the uses identified in the Commission’s notice.’’;
(2) in section 114(a)(1), by striking ‘‘(a) or
(d)(1)’’ and inserting ‘‘(a), (d)(1), or (f)’’.
(d) COMPLETION OF C-BLOCK PCS AUCTION.—The
Federal Communications Commission shall commence the
Broadband Personal Communications Services C-Block
auction described in the Commission’s Sixth Report and
Order in DP Docket 93–253 (FCC 93–510, released July
18, 1995) not later than December 4, 1995. The Commis-
sion’s competitive bidding rules governing such auction,
as set forth in such Sixth Report and Order, are hereby
ratified and adopted as a matter of Federal law.
(e) MODIFICATION OF AUCTION POLICY TO PRE-
SERVE AUCTION VALUE OF SPECTRUM.—The voluntary
negotiation period for relocating fixed microwave licensees
to frequency bands other than those allocated for licensed
emerging technology services (including licensed personal
108
communications services), established by the Commis-
sion’s Third Report and Order in ET Docket No. 92–9,
shall expire one year after the date of acceptance by the
Commission of applications for such licensed emerging
technology services. The mandatory negotiation period for
relocating fixed microwave licensees to frequency bands
other than those allocated for licensed emerging tech-
nology services (including licensed personal communica-
tions services), established in such Third Report and
Order, shall expire two years after the date of acceptance
by the Commission of applications for such licensed
emerging technology services.
(f) 
IDENTIFICATION
AND
REALLOCATION
OF
AUCTIONABLE
FREQUENCIES.—The 
National 
Tele-
communications and Information Administration Organi-
zation Act (47 U.S.C. 901 et seq.) is amended—
(1) in section 113(b)—
(A) by striking the heading of paragraph
(1) and inserting ‘‘INITIAL REALLOCATION RE-
PORT’’;
(B) by inserting ‘‘in the first report re-
quired by subsection (a)’’ after ‘‘recommend for
reallocation’’ in paragraph (1);
109
(C) by inserting ‘‘or (3)’’ after ‘‘paragraph
(1)’’ each place it appears in paragraph (2);
and
(D) by inserting after paragraph (2) the
following new paragraph:
‘‘(3) SECOND REALLOCATION REPORT.—In ac-
cordance with the provisions of this section, the Sec-
retary shall recommend for reallocation in the sec-
ond report required by subsection (a), for use other
than by Federal Government stations under section
305 of the 1934 Act (47 U.S.C. 305), a single fre-
quency band that spans not less than an additional
20 megahertz, that is located below 3 gigahertz, and
that meets the criteria specified in paragraphs (1)
through (5) of subsection (a).’’; and
(2) in section 115—
(A) in subsection (b), by striking ‘‘the re-
port required by section 113(a)’’ and inserting
‘‘the initial reallocation report required by sec-
tion 113(a)’’; and
(B) by adding at the end the following new
subsection:
‘‘(c) ALLOCATION
AND
ASSIGNMENT
OF
FRE-
QUENCIES IDENTIFIED IN THE SECOND REALLOCATION
REPORT.—With respect to the frequencies made available
110
for reallocation pursuant to section 113(b)(3), the Com-
mission shall, not later than 1 year after receipt of the
second reallocation report required by such section, pre-
pare, submit to the President and the Congress, and im-
plement, a plan for the allocation and assignment under
the 1934 Act of such frequencies. Such plan shall propose
the immediate allocation and assignment of all such fre-
quencies in accordance with section 309(j).’’.
CHAPTER 2—FEDERAL COMMUNICATIONS
COMMISSION AUTHORIZATION
SEC. 3011. SHORT TITLE.
This chapter may be cited as the ‘‘Federal Commu-
nications Commission Authorization Act of 1995’’.
SEC. 3012. EXTENSION OF AUTHORITY.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section
6 of the Communications Act of 1934 (47 U.S.C. 156)
is amended to read as follows:
‘‘SEC. 6. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated for the ad-
ministration of this Act by the Commission $186,000,000
for fiscal year 1996, together with such sums as may be
necessary for increases resulting from adjustments in sal-
ary, pay, retirement, other employee benefits required by
law, and other nondiscretionary costs, for fiscal year 1996.
Of the sum appropriated in each fiscal year under this
111
section, a portion, in an amount determined under sections
8(b) and 9(b), shall be derived from fees authorized by
sections 8 and 9.’’.
(b) TRAVEL AND REIMBURSEMENT PROGRAM.—Sec-
tion 4(g)(2) of the Communications Act of 1934 (47
U.S.C. 154(g)(2)) is amended to read as follows:
‘‘(2) The Commission shall submit to the appropriate
committees of Congress, and publish in the Federal Reg-
ister, semiannual reports specifying the reimbursements
which the Commission has accepted under section 1353
of title 31, United States Code.’’.
(c) COMMUNICATIONS SUPPORT FROM OLDER AMER-
ICANS.—Section 6(a) of the Federal Communications
Commission Authorization Act of 1988 (47 U.S.C. 154
note) is amended by striking ‘‘fiscal years 1992 and 1993’’
and inserting ‘‘fiscal year 1996’’.
SEC. 3013. APPLICATION FEES.
(a) ADJUSTMENT
OF APPLICATION FEE SCHED-
ULE.—Section 8(b) of the Communications Act of 1934
(47 U.S.C. 158(b)) is amended to read as follows:
‘‘(b)(1) For fiscal year 1996 and each fiscal year
thereafter, the Commission shall, by regulation, modify
the application fees by proportionate increases or de-
creases so as to result in estimated total collections for
the fiscal year equal to—
112
‘‘(A) $40,000,000; plus
‘‘(B) an additional amount, specified in an ap-
propriation Act for the Commission for that fiscal
year to be collected and credited to such appropria-
tion, not to exceed the amount by which the nec-
essary expenses for the costs described in paragraph
(5) exceeds $40,000,000.
‘‘(2) In making adjustments pursuant to this para-
graph the Commission may round such fees to the nearest
$5.00 in the case of fees under $100, or to the nearest
$20 in the case of fees of $100 or more. The Commission
shall transmit to the Congress notification of any adjust-
ment made pursuant to this paragraph immediately upon
the adoption of such adjustment.
‘‘(3) The Commission is authorized to continue to col-
lect fees at the prior year’s rate until the effective date
of fee adjustments or amendments made pursuant to para-
graphs (1) and (4).
‘‘(4) The Commission shall, by regulation, add, de-
lete, or reclassify services, categories, applications, or
other filings subject to application fees to reflect additions,
deletions, or changes in the nature of its services or au-
thorization of service processes as a consequence of Com-
mission rulemaking proceedings or changes in law.
113
‘‘(5) Any modified fees established under paragraph
(4) shall be derived by determining the full-time equivalent
number of employees performing application activities, ad-
justed to take into account other expenses that are reason-
ably related to the cost of processing the application or
filing, including all executive and legal costs incurred by
the Commission in the discharge of these functions, and
other factors that the Commission determines are nec-
essary in the public interest. The Commission shall—
‘‘(A) transmit to the Congress notification of
any proposed modification made pursuant to this
paragraph immediately upon adoption of such pro-
posal; and
‘‘(B) transmit to the Congress notification of
any modification made pursuant to this paragraph
immediately upon adoption of such modification.
‘‘(6) Increases or decreases in application fees made
pursuant to this subsection shall not be subject to judicial
review.’’.
(b) TREATMENT OF ADDITIONAL COLLECTIONS.—
Section 8(e) of such Act is amended to read as follows:
‘‘(e) Of the moneys received from fees authorized
under this section—
‘‘(1) $40,000,000 shall be deposited in the gen-
eral fund of the Treasury to reimburse the United
114
States for amounts appropriated for use by the
Commission in carrying out its functions under this
Act; and
‘‘(2) the remainder shall be deposited as an off-
setting collection in, and credited to, the account
providing appropriations to carry out the functions
of the Commission.’’.
(c) SCHEDULE OF APPLICATION FEES FOR PCS.—
The schedule of application fees in section 8(g) of such
Act is amended by adding, at the end of the portion under
the heading ‘‘COMMON CARRIER SERVICES’’, the following
new item:
‘‘23. Personal communications services
‘‘a. Initial or new application .......................................................
230.00
‘‘b. Amendment to pending application .......................................
35.00
‘‘c. Application for assignment or transfer of control .................
230.00
‘‘d. Application for renewal of license ..........................................
35.00
‘‘e. Request for special temporary authority ...............................
200.00
‘‘f. Notification of completion of construction .............................
35.00
‘‘g. Request to combine service areas ..........................................
50.00’’.
(d) VANITY CALL SIGNS.—
(1) LIFETIME LICENSE FEES.—
(A) AMENDMENT.—The schedule of appli-
cation fees in section 8(g) of such Act is further
amended by adding, at the end of the portion
under the heading ‘‘PRIVATE RADIO SERVICES’’,
the following new item:
‘‘11. Amateur vanity call signs ........................................................ 150.00’’.
(B) TREATMENT
OF
RECEIPTS.—Moneys
received from fees established under the amend-
115
ment made by this subsection shall be deposited
as an offsetting collection in, and credited to,
the account providing appropriations to carry
out the functions of the Commission.
(2) TERMINATION
OF
ANNUAL
REGULATORY
FEES.—The schedule of regulatory fees in section
9(g) of such Act (47 U.S.C. 159(g)) is amended by
striking the following item from the fees applicable
to the Private Radio Bureau:
‘‘Amateur vanity call-signs ...................................................
7’’.
SEC. 3014. REGULATORY FEES.
(a) EXECUTIVE AND LEGAL COSTS.—Section 9(a)(1)
of the Communications Act of 1934 (47 U.S.C. 159(a)(1))
is amended by inserting before the period at the end the
following: ‘‘, and all executive and legal costs incurred by
the Commission in the discharge of these functions’’.
(b) ESTABLISHMENT
AND ADJUSTMENT.—Section
9(b) of such Act is amended—
(1) in paragraph (4)(B), by striking ‘‘90 days’’
and inserting ‘‘45 days’’; and
(2) by adding at the end the following new
paragraph:
‘‘(5) EFFECTIVE DATE OF ADJUSTMENTS.—The
Commission is authorized to continue to collect fees
at the prior year’s rate until the effective date of fee
116
adjustments or amendments made pursuant to para-
graph (2) or (3).’’.
(c) REGULATORY FEES FOR SATELLITE TV OPER-
ATIONS.—The schedule of regulatory fees in section 9(g)
of such Act is amended, in the fees applicable to the Mass
Media Bureau, by inserting after each of the items per-
taining to construction permits in the fees applicable to
VHF commercial and UHF commercial TV the following
new item:
‘‘Terrestrial television satellite operations ....................
500’’.
(d) GOVERNMENTAL
ENTITIES
USE
FOR
COMMON
CARRIER PURPOSES.—Section 9(h) of such Act is amend-
ed by adding at the end the following new sentence: ‘‘The
exceptions provided by this subsection for governmental
entities shall not be applicable to any services that are pro-
vided on a commercial basis in competition with another
carrier.’’.
(e) INFORMATION REQUIRED IN CONNECTION WITH
ADJUSTMENT OF REGULATORY FEES.—Title I of such
Act is amended—
(1) in section 9, by striking subsection (i); and
(2) by inserting after section 9 the following
new section:
117
‘‘SEC. 10. ACCOUNTING SYSTEM AND ADJUSTMENT INFOR-
MATION.
‘‘(a) ACCOUNTING SYSTEM REQUIRED.—The Com-
mission shall develop accounting systems for the purposes
of making the adjustments authorized by sections 8 and
9. The Commission shall annually prepare and submit to
the Congress an analysis of such systems and shall annu-
ally afford interested persons the opportunity to submit
comments concerning the allocation of the costs of per-
forming the functions described in section 8(a)(5) and
9(a)(1) in making such adjustments in the schedules re-
quired by sections 8 and 9.
‘‘(b) INFORMATION REQUIRED IN CONNECTION WITH
ADJUSTMENT
OF
APPLICATION
AND
REGULATORY
FEES.—
‘‘(1) SCHEDULE OF REQUESTED AMOUNTS.—
No later than May 1 of each calendar year, the
Commission shall prepare and transmit to the Com-
mittees of Congress responsible for the Commis-
sion’s authorization and appropriations a detailed
schedule of the amounts requested by the Presi-
dent’s budget to be appropriated for the ensuing fis-
cal year for the activities described in sections
8(a)(5) and 9(a)(1), allocated by bureaus, divisions,
and offices of the Commission.
118
‘‘(2) EXPLANATORY STATEMENT.—If the Com-
mission anticipates increases in the application fees
or regulatory fees applicable to any applicant, li-
censee, or unit subject to payment of fees, the Com-
mission shall submit to the Congress by May 1 of
such calendar year a statement explaining the rela-
tionship between any such increases and either (A)
increases in the amounts requested to be appro-
priated for Commission activities in connection with
such applicants, licensees, or units subject to pay-
ment of fees, or (B) additional activities to be per-
formed with respect to such applicants, licensees, or
units.
‘‘(3) DEFINITION.—For purposes of this sub-
section, the term ‘amount requested by the Presi-
dent’s budget’ shall include any adjustments to such
requests that are made by May 1 of such calendar
year. If any such adjustment is made after May 1,
the Commission shall provide such Committees with
updated schedules and statements containing the in-
formation required by this subsection within 10 days
after the date of any such adjustment.’’.
SEC. 3015. INSPECTION OF SHIP RADIO STATIONS.
(a) AUTHORITY TO DESIGNATE ENTITIES TO IN-
SPECT.—Section 4(f)(3) of the Communications Act of
119
1934 (47 U.S.C. 154(f)(3)) is amended by inserting before
the period at the end the following: ‘‘: And provided fur-
ther, That, in the alternative, an entity designated by the
Commission may make the inspections referred to in this
paragraph’’.
(b) CONDUCT OF INSPECTIONS.—Section 362(b) of
such Act (47 U.S.C. 362(b)) is amended to read as
follows:
‘‘(b) Every ship of the United States that is subject
to this part shall have the equipment and apparatus pre-
scribed therein inspected at least once each year by the
Commission or an entity designated by the Commission.
If, after such inspection, the Commission is satisfied that
all relevant provisions of this Act and the station license
have been complied with, the fact shall be certified to on
the station license by the Commission. The Commission
shall make such additional inspections at frequent inter-
vals as the Commission determines may be necessary to
ensure compliance with the requirements of this Act. The
Commission may, upon a finding that the public interest
could be served thereby—
‘‘(1) waive the annual inspection required under
this section for a period of up to 90 days for the sole
purpose of enabling a vessel to complete its voyage
120
and proceed to a port in the United States where an
inspection can be held; or
‘‘(2) waive the annual inspection required under
this section for a vessel that is in compliance with
the radio provisions of the Safety Convention and
that is operating solely in waters beyond the juris-
diction of the United States, provided that such in-
spection shall be performed within 30 days of such
vessel’s return to the United States.’’.
(c) INSPECTION BY OTHER ENTITIES.—Section 385
of such Act (47 U.S.C. 385) is amended by inserting ‘‘or
an entity designated by the Commission’’ after ‘‘The Com-
mission’’.
SEC. 3016. EXPEDITED ITFS PROCESSING.
Section 5(c)(1) of the Communications Act of 1934
(47 U.S.C. 155(c)(1)) is amended by striking the last sen-
tence and inserting the following: ‘‘Except for cases involv-
ing the authorization of service in the Instructional Tele-
vision Fixed Service, or as otherwise provided in this Act,
nothing in this paragraph shall authorize the Commission
to provide for the conduct, by any person or persons other
than persons referred to in paragraph (2) or (3) of section
556(b) of title 5, United States Code, of any hearing to
which such section applies.’’.
121
SEC. 3017. TARIFF REJECTION AUTHORITY.
Section 203(d) of the Communications Act of 1934
(47 U.S.C. 203(d)) is amended by inserting after the first
sentence the following new sentences: ‘‘The Commission
may, after affording interested parties an opportunity to
comment, reject a proposed tariff filing in whole or in
part, if the filing or any part thereof is patently unlawful.
In evaluating whether a proposed tariff filing is patently
unlawful, the Commission may consider additional infor-
mation filed by the carrier or any interested party and
shall presume the facts alleged by the carrier to be true.’’.
SEC. 3018. REFUND AUTHORITY.
Title II of the Communications Act of 1934 (47
U.S.C. 201 et seq.) is amended by adding at the end there-
of the following new section:
‘‘SEC. 230. REFUND AUTHORITY.
‘‘In addition to any other provision of this Act under
which the Commission may order refunds, the Commission
may require by order the refund of such portion of any
charge by any carrier or carriers as results from a viola-
tion of section 220 (a), (b), or (d) or 221 (c) or (d) or
of any of the rules promulgated pursuant to such sections
or pursuant to section 215, 218, or 219. Such refunds
shall be ordered only to the extent that the Commission
or a court finds that such violation resulted in unlawful
charges and shall be made to such persons or classes of
122
persons as the Commission determines reasonably rep-
resent the persons from whom amounts were improperly
received by reason of such violation. No refunds shall be
required under this section unless—
‘‘(1) the Commission issues an order advising
the carrier of its potential refund liability and pro-
vides the carrier with an opportunity to file written
comments as to why refunds should not be required;
and
‘‘(2) such order is issued not later than 5 years
after the date the charge was paid.
In the case of a continuing violation, a violation shall be
considered to occur on each date that the violation is re-
peated.’’.
SEC. 3019. LICENSING OF AVIATION AND MARITIME SERV-
ICES BY RULE.
Section 307(e) of the Communications Act of 1934
(47 U.S.C. 307(e)) is amended to read as follows:
‘‘(e)(1) Notwithstanding any license requirement es-
tablished in this Act, if the Commission determines that
such authorization serves the public interest, convenience,
and necessity, the Commission may by rule authorize the
operation of radio stations without individual licenses in
the following radio services: (A) the aviation radio service
for aircraft stations operated on domestic flights when
123
such aircraft are not otherwise required to carry a radio
station; and (B) the maritime radio service for ship sta-
tions navigated on domestic voyages when such ships are
not otherwise required to carry a radio station.
‘‘(2) Any radio station operator who is authorized by
the Commission to operate without an individual license
shall comply with all other provisions of this Act and with
rules prescribed by the Commission under this Act.
‘‘(3) For purposes of this subsection, the terms ‘air-
craft station’ and ‘ship station’ shall have the meanings
given them by the Commission by rule.’’.
SEC. 3020. AUCTION TECHNICAL AMENDMENTS.
(a) FUNDING AVAILABILITY.—Section 309(j)(8)(B)
of the Communications Act of 1934 (47 U.S.C.
309(j)(8)(B)) is amended by adding at the end the follow-
ing new sentence: ‘‘Such offsetting collections are author-
ized to remain available until expended.’’.
(b) ESCROW
OF DEPOSITS.—Section 309(j)(8) of
such Act is further amended by adding at the end the fol-
lowing new subparagraph:
‘‘(C) ESCROW OF DEPOSIT.—The Commis-
sion is authorized, based on the competitive bid-
ding methodology selected, to provide for the
deposit of moneys for bids in an interest-bear-
ing account until such time as the Commission
124
accepts a deposit from the high bidder. All in-
terest earned on bid moneys received from the
winning bidder shall be deposited into the gen-
eral fund of the Treasury. All interest earned
on bid moneys deposited from unsuccessful bid-
ders, less any applicable fees and penalties,
shall be paid to those bidders.’’.
SEC. 3021. FORFEITURES FOR VIOLATIONS IMPERILING
SAFETY OF LIFE.
(a) ADMINISTRATIVE SANCTIONS.—Section 312(a) of
the Communications Act of 1934 (47 U.S.C. 312(a)) is
amended—
(1) by striking ‘‘or’’ at the end of paragraph
(6);
(2) by striking the period at the end of para-
graph (7) and inserting ‘‘; or’’; and
(3) by adding at the end the following new
paragraph:
‘‘(8) for failure to comply with any requirement
of this Act or the Commission’s rules that imperils
the safety of life.’’.
(b) FORFEITURES.—Section 503(b)(1) of such Act
(47 U.S.C. 503(b)(1)) is amended—
(1) by striking ‘‘or’’ at the end of subparagraph
(C);
125
(2) by striking the semicolon at the end of sub-
paragraph (D) and inserting ‘‘; or’’; and
(3) by adding after subparagraph (D) the fol-
lowing new subparagraph:
‘‘(E) failed to comply with any requirement of
this Act or the Commission’s rules that imperils the
safety of life;’’.
SEC. 3022. USE OF EXPERTS AND CONSULTANTS.
Section 4(f)(1) of the Communications Act of 1934
(47 U.S.C. 154) is amended by adding at the end thereof
the following: ‘‘The Commission may also procure the
services of experts and consultants in accordance with sec-
tion 3109 of title 5, United States Code, relating to ap-
pointments in the Federal Service, at rates of compensa-
tion for individuals not to exceed the daily rate equivalent
to the maximum rate payable for senior-level positions
under section 5276 of title 5, United States Code.’’.
SEC. 3023. STATUTE OF LIMITATIONS FOR FORFEITURE
PROCEEDINGS AGAINST COMMON CARRIERS.
Section 503(b)(6) of the Communications Act of
1934 (47 U.S.C. 503(b)(6)) is amended—
(1) by striking ‘‘or’’ at the end of subparagraph
(A);
(2) by inserting ‘‘and is not a common carrier’’
after ‘‘title III of this Act’’ in subparagraph (B);
126
(3) by redesignating subparagraph (B) as sub-
paragraph (C); and
(4) by inserting after subparagraph (A) the fol-
lowing new subparagraph:
‘‘(B) such person is a common carrier and the
required notice of apparent liability is issued more
than 5 years after the date the violation charged oc-
curred; or’’.
SEC. 3024. UTILIZATION OF FM BAND FOR ASSISTIVE DE-
VICES FOR HEARING IMPAIRED INDIVID-
UALS.
Within 6 months after the date of enactment of this
Act, the Federal Communications Commission shall report
to the Congress on the existing and future use of the FM
band to facilitate the use of auditory assistive devices for
individuals with hearing impairments. In preparing such
report, the Commission shall consider—
(1) the potential for utilizing FM band auditory
assistive devices to comply with the American with
Disabilities Act;
(2) the impact on such compliance of the vul-
nerability of such devices to harmful interference
from radio licensees; and
(3) alternative frequency allocations that could
facilitate such compliance.
127
SEC. 3025. TECHNICAL AMENDMENT.
Section 302(d)(1) of the Communications Act of
1934 (47 U.S.C. 309(d)(1)) is amended—
(1) in subparagraph (A), by striking ‘‘allocated
to the domestic cellular radio telecommunications
service’’ and inserting ‘‘utilized to provide commer-
cial mobile service (as defined in section 332(d))’’;
and
(2) in subparagraph (C), by striking ‘‘cellular’’
and inserting ‘‘commercial mobile service’’.
Subtitle B—Nuclear Regulatory
Commission Annual Charge
SEC. 3031. NUCLEAR REGULATORY COMMISSION ANNUAL
CHARGES.
Section 6101(a)(3) of the Omnibus Budget Reconcili-
ation Act of 1990 (42 U.S.C. 2214(a)(3)) is amended by
striking ‘‘September 30, 1998’’ and inserting ‘‘September
30, 2002’’.
Subtitle C—United States
Enrichment Corporation
SEC. 3035. SHORT TITLE AND REFERENCE.
(a) SHORT TITLE.—This subtitle may be cited as the
‘‘USEC Privatization Act’’.
(b) REFERENCE.—Except as otherwise expressly pro-
vided, whenever in this subtitle an amendment or repeal
is expressed in terms of an amendment to, or repeal of,
128
a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the
Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.).
SEC. 3036. PRODUCTION FACILITY.
Paragraph v. of section 11 (42 U.S.C. 2014 v.) is
amended by striking ‘‘or the construction and operation
of a uranium enrichment production facility using Atomic
Vapor Laser Isotope Separation technology’’.
SEC. 3037. DEFINITIONS.
Section 1201 (42 U.S.C. 2297) is amended—
(1) in paragraph (4), by inserting before the pe-
riod the following: ‘‘and any successor corporation
established through privatization of the Corpora-
tion’’;
(2) by redesignating paragraphs (10) through
(13) as paragraphs (14) through (17), respectively,
and by inserting after paragraph (9) the following
new paragraphs:
‘‘(10) The term ‘low-level radioactive waste’ has
the meaning given such term in section 102(9) of
the Low-Level Radioactive Waste Policy Amend-
ments Act of 1985 (42 U.S.C. 2021b(9)).
‘‘(11) The term ‘mixed waste’ has the meaning
given such term in section 1004(41) of the Solid
Waste Disposal Act (42 U.S.C. 6903(41)).
129
‘‘(12) The term ‘privatization’ means the trans-
fer of ownership of the Corporation to private inves-
tors pursuant to chapter 25.
‘‘(13) The term ‘privatization date’ means the
date on which 100 percent of ownership of the Cor-
poration has been transferred to private investors.’’;
(3) by inserting after paragraph (17) (as redes-
ignated) the following new paragraph:
‘‘(18) The term ‘transition date’ means July 1,
1993.’’;
(4) by redesignating the unredesignated para-
graph (14) as paragraph (19); and
(5) by adding the following new paragraphs
after paragraph (19):
‘‘(20) The term ‘gaseous diffusion plants’
means the Paducah Gaseous Diffusion Plant at Pa-
ducah, Kentucky and the Portsmouth Gaseous Dif-
fusion Plant at Piketon, Ohio.
‘‘(21) The term ‘private corporation’ means the
corporation established under section 1503.
‘‘(22) The term ‘Russian HEU agreement’
means the Agreement Between the Government of
the United States of America and the Government
of the Russian Federation Concerning the Disposi-
130
tion of Highly Enriched Uranium Extracted from
Nuclear Weapons, dated February 18, 1993.
‘‘(23) The term ‘Suspension Agreement’ means
the Agreement to Suspend the Antidumping Inves-
tigation on Uranium from the Russian Federation,
as amended.’’.
SEC. 3038. EMPLOYEES OF THE CORPORATION.
(a) PARAGRAPHS (1) AND (2).—Section 1305(e) (42
U.S.C. 2297b–4(e)) is amended by striking paragraphs
(1) and (2) and inserting in thereof the following:
‘‘(1) IN GENERAL.—
‘‘(A) Privatization shall not diminish the
accrued, vested pension benefits of employees of
the Corporation’s operating contractor at the
two gaseous diffusion plants.
‘‘(B) In the event that the private corpora-
tion terminates or changes the contractor at ei-
ther or both of the gaseous diffusion plants, the
plan sponsor or other appropriate fiduciary of
the pension plan covering employees of the
prior operating contractor shall arrange for the
transfer of all plan assets and liabilities relating
to accrued pension benefits of such plan’s par-
ticipants and beneficiaries from such plan to a
131
pension plan sponsored by the new contractor
or the private corporation, as the case may be.
‘‘(C) Any employer (including the private
corporation or any contractor of the private cor-
poration) at a gaseous diffusion plant shall
abide by the terms of any unexpired collective
bargaining agreement covering employees in
bargaining units at the plant and in effect on
the privatization date until the expiration of the
agreement.
‘‘(D) In the event of a plant closing or
mass layoff (as such terms are defined in sec-
tion 2101(a)(2) and (3) of title 29, United
States Code) at either of the gaseous diffusion
plants, the Secretary of Energy shall treat such
plant as a Department of Energy defense nu-
clear facility and any person employed by an
operating contractor on the privatization date
at either plant as a Department of Energy em-
ployee for purposes of sections 3161 through
3163 of the National Defense Authorization Act
for Fiscal Year 1993 (42 U.S.C. 7274h–7274j).
‘‘(E) The Department of Energy and the
private corporation shall continue to fund post-
retirement health benefits for persons employed
132
by an operating contractor at either of the gas-
eous diffusion plants at substantially the same
level of coverage as eligible retirees are entitled
to receive on the privatization date, consistent
with clauses (i) through (iii), except that the
Department of Energy, the private corporations
and the operating contractor shall have the
right to implement cost-saving measures, in-
cluding (but not limited to) preferred provider
organizations, managed care programs, manda-
tory second opinions before surgery or other
medical procedures, and mandatory use of ge-
neric drugs, that do not materially diminish the
overall quality of the medical care provided—
‘‘(i) persons eligible for this coverage
shall be limited to persons who retired
from active employment at one of the gase-
ous diffusion plants as of the privatization
date, as vested participants in a pension
plan maintained either by the Corpora-
tion’s operating contractor or by a contrac-
tor employed prior to July 1, 1993, by the
Department of Energy to operate either of
the gaseous diffusion plants and persons
who, as of the privatization date, are em-
133
ployed by the Corporation’s operating con-
tractor and are vested participants in a
pension plan maintained either by the Cor-
poration’s operating contractor or by a
contractor employed prior to July 1, 1993,
by the Department of Energy to operate
either of the gaseous diffusion plants;
‘‘(ii) for persons who retired from em-
ployment with an operating contractor
prior to July 1, 1993, the Department of
Energy shall fund the entire cost of post-
retirement health benefits; and
‘‘(iii) for persons who retire from em-
ployment with an operating contractor
after July 1, 1993, the Department of En-
ergy and the private corporation shall fund
the cost of postretirement health benefits
in proportion to the retired persons’ years
and months of service at a gaseous diffu-
sion plant under their respective manage-
ment.’’.
(b) PARAGRAPH
(4).—Paragraph (4) of section
1305(e) (42 U.S.C. 2297b–4(e)(4)) is amended—
(1) by striking ‘‘AND DETAILEES’’ in the head-
ing;
134
(2) by striking the first sentence;
(3) in the second sentence, by inserting ‘‘from
other Federal employment’’ after ‘‘transfer to the
Corporation’’; and
(4) by striking the last sentence.
SEC. 3039. MARKETING AND CONTRACTING AUTHORITY.
(a) MARKETING AUTHORITY.—Section 1401(a) (42
U.S.C. 2297c(a)) is amended effective on the privatization
date (as defined in section 1201(13) of the Atomic Energy
Act of 1954)—
(1) by amending the subsection heading to read
‘‘MARKETING AUTHORITY.—’’; and
(2) by striking the first sentence.
(b) TRANSFER OF CONTRACTS.—Section 1401(b) (42
U.S.C. 2297c(b)) is amended—
(1) in paragraph (2)(B), by adding at the end
the following: ‘‘The privatization of the Corporation
shall not affect the terms of, or the rights or obliga-
tions of the parties to, any such power purchase con-
tract.’’; and
(2) by adding at the end the following:
‘‘(3) EFFECT OF TRANSFER.—
‘‘(A) As a result of the transfer pursuant
to paragraph (1), all rights, privileges, and ben-
efits under such contracts, agreements, and
136
obligations arising under such contract, agree-
ment, or lease prior to such time.’’.
(c) PRICING.—Section 1402 (42 U.S.C. 2297c–1) is
amended to read as follows:
‘‘SEC. 1402. PRICING.
‘‘The Corporation shall establish prices for its prod-
ucts, materials, and services provided to customers on a
basis that will allow it to attain the normal business objec-
tives of a profitmaking corporation.’’.
(d) LEASING OF GASEOUS DIFFUSION FACILITIES OF
DEPARTMENT.—Effective on the privatization date (as de-
fined in section 1201(13) of the Atomic Energy Act of
1954), section 1403 (42 U.S.C. 2297c–2) is amended by
adding at the end the following:
‘‘(h) LOW-LEVEL RADIOACTIVE WASTE AND MIXED
WASTE.—
‘‘(1) RESPONSIBILITY
OF
THE
DEPARTMENT;
COSTS.—
‘‘(A) With respect to low-level radioactive
waste and mixed waste generated by the Cor-
poration as a result of the operation of the fa-
cilities and related property leased by the Cor-
poration pursuant to subsection (a) or as a re-
sult of treatment of such wastes at a location
other than the facilities and related property
137
leased by the Corporation pursuant to sub-
section (a) the Department, at the request of
the Corporation, shall—
‘‘(i) accept for treatment or disposal
of all such wastes for which treatment or
disposal technologies and capacities exist,
whether within the Department or else-
where; and
‘‘(ii) accept for storage (or ultimately
treatment or disposal) all such wastes for
which treatment and disposal technologies
or capacities do not exist, pending develop-
ment of such technologies or availability of
such capacities for such wastes.
‘‘(B) All low-level wastes and mixed wastes
that the Department accepts for treatment,
storage, or disposal pursuant to subparagraph
(A) shall, for the purpose of any permits, li-
censes, authorizations, agreements, or orders
involving the Department and other Federal
agencies or State or local governments, be
deemed to be generated by the Department and
the Department shall handle such wastes in ac-
cordance with any such permits, licenses, au-
thorizations, agreements, or orders. The De-
138
partment shall obtain any additional permits, li-
censes, or authorizations necessary to handle
such wastes, shall amend any such agreements
or orders as necessary to handle such wastes,
and shall handle such wastes in accordance
therewith.
‘‘(C) The Corporation shall reimburse the
Department for the treatment, storage, or dis-
posal of low-level radioactive waste or mixed
waste pursuant to subparagraph (A) in an
amount equal to the Department’s costs but in
no event greater than an amount equal to that
which would be charged by commercial, State,
regional, or interstate compact entities for
treatment, storage, or disposal of such waste.
‘‘(2) AGREEMENTS
WITH
OTHER
PERSONS.—
The Corporation may also enter into agreements for
the treatment, storage, or disposal of low-level radio-
active waste and mixed waste generated by the Cor-
poration as a result of the operation of the facilities
and related property leased by the Corporation pur-
suant to subsection (a) with any person other than
the Department that is authorized by applicable laws
and regulations to treat, store, or dispose of such
wastes.’’.
139
(e) LIABILITIES.—
(1) Subsection (a) of section 1406 (42 U.S.C.
2297c–5(a)) is amended—
(A) by inserting ‘‘AND PRIVATIZATION’’
after ‘‘TRANSITION’’ in the heading; and
(B) by adding at the end the following:
‘‘As of the privatization date, all liabilities at-
tributable to the operation of the Corporation
from the transition date to the privatization
date shall be direct liabilities of the United
States.’’.
(2) Subsection (b) of section 1406 (42 U.S.C.
2297c–5(b)) is amended—
(A) by inserting ‘‘AND PRIVATIZATION’’
after ‘‘TRANSITION’’ in the heading; and
(B) by adding at the end the following:
‘‘As of the privatization date, any judgment en-
tered against the Corporation imposing liability
arising out of the operation of the Corporation
from the transition date to the privatization
date shall be considered a judgment against the
United States.’’.
(3) Subsection (d) of section 1406 (42 U.S.C.
2297c–5(d)) is amended—
140
(A) by inserting ‘‘AND PRIVATIZATION’’
after ‘‘TRANSITION’’ in the heading; and
(B) by striking ‘‘the transition date’’ and
inserting ‘‘the privatization date (or, in the
event the privatization date does not occur, the
transition date)’’.
(f) TRANSFER OF URANIUM.—
(1) AMENDMENT.—Title II (42 U.S.C. 2297 et
seq.) is amended by redesignating section 1408 as
section 1409 and by inserting after section 1407 the
following:
‘‘SEC. 1408. URANIUM TRANSFERS AND SALES.
‘‘(a) TRANSFERS AND SALES BY THE SECRETARY.—
The Secretary shall not provide enrichment services or
transfer or sell any uranium (including natural or enriched
uranium in any form) to any person except as provided
in this section.
‘‘(b) RUSSIAN HEU.—
(1) TRANFERS.—Prior to December 31, 1996,
the United States Executive Agent under the Rus-
sian HEU Agreement shall transfer to the Secretary
without charge an amount of uranium hexafluoride
equivalent to the natural uranium component of low-
enriched uranium derived from at least 18 metric
tons of highly enriched uranium purchased from the
141
Russian Executive Agent under the Russian HEU
Agreement. 
The 
quantity 
of 
such 
uranium
hexafluoride delivered to the Secretary shall be
based on a tails assay of 0.30 U235. Title to ura-
nium hexafluoride delivered to the Secretary pursu-
ant to this paragraph shall transfer to the Secretary
upon delivery of such material to the Secretary. Ura-
nium hexafluoride delivered to the Secretary pursu-
ant to this paragraph shall be deemed to be of Rus-
sian origin.
‘‘(2) CONTRACTS.—Within 7 years of the date
of enactment of the USEC Privatization Act, the
Secretary shall enter into contracts to sell the ura-
nium hexafluoride transferred to the Secretary pur-
suant to paragraph (1). Such uranium hexafluoride
shall be sold—
‘‘(A) at any time for use in the United
States for the purpose of overfeeding;
‘‘(B) at any time for use outside the Unit-
ed States; and
‘‘(C) for consumption by end users in the
United States not prior to January 1, 2002, in
volumes not to exceed 3 million pounds U3O8
equivalent per year.
145
‘‘(7) OVERFEEDING.—Uranium hexafluoride de-
livered to the Secretary under paragraph (1) or the
Russian Executive Agent under paragraph (3) or
auctioned pursuant to paragraph (4) may be sold at
any time for use in the United States for the pur-
pose of overfeeding in the operations of enrichment
facilities.
‘‘(c) TRANSFERS TO THE CORPORATION.—(1) Before
the privatization date, the Secretary may transfer to the
Corporation without charge the low enriched uranium
from up to 50 metric tons of highly enriched uranium and
up to 7,000 metric tons of natural uranium, subject to
the restrictions in subsection (b)(2).
‘‘(2) The Corporation (or its successor) may not de-
liver for commercial end use—
‘‘(A) any of the natural uranium transferred
under this subsection before January 1, 1998;
‘‘(B) more than 10 percent of the natural ura-
nium (by uranium hexafluoride equivalent content)
transferred under this subsection or more than 4
million pounds, whichever is less, in any calendar
year after 1997; or
‘‘(C) more than 800,000 separative work units
of low-enriched uranium transferred under this sub-
section in any calendar year.
146
‘‘(d) INVENTORY SALES.—(1) In addition to the
transfers authorized under subsection (b), the Secretary
may, from time to time, sell natural and low-enriched ura-
nium (including low-enriched uranium derived from highly
enriched uranium) from the Department of Energy s
stockpile.
‘‘(2) Except as provided in subsections (b) and (d),
no sale or transfer of natural or low-enriched uranium
shall be made unless—
‘‘(A) the President determines that the material
is not necessary to national security needs,
‘‘(B) the Secretary determines that the sale of
the material will not have an adverse impact on the
domestic uranium mining and enrichment industries,
taking into account the sales of uranium under the
Russian HEU Agreement and the Suspension Agree-
ment, and
‘‘(C) the price paid to the Secretary will not be
less than the fair market value of the material.
‘‘(e) GOVERNMENT TRANSFERS.—Notwithstanding
subsection (c), the Secretary may transfer or sell low-en-
riched uranium—
‘‘(1) to a federal agency if the material is trans-
ferred for the use of the receiving agency without
147
any resale or transfer to another entity and the ma-
terial does not meet commercial specifications;
‘‘(2) to any person for national security pur-
poses, as determined by the Secretary; or
‘‘(3) to any state or local agency or nonprofit,
charitable, or educational institution for use other
than the generation of electricity for commercial
use.’’.
(2) CONFORMING AMENDMENT.—The table of
contents for chapter 24 is amended by redesignating
the item relating to section 1408 as the item relat-
ing to section 1409 and by inserting after the item
for section 1407 the following:
‘‘Sec. 1408. Uranium transfers and sales.’’.
SEC. 3040. PRIVATIZATION OF THE CORPORATION.
(a) ESTABLISHMENT OF PRIVATE CORPORATION.—
Chapter 25 (42 U.S.C. 2297d et seq.) is amended by add-
ing at the end the following new section:
‘‘SEC. 1503. ESTABLISHMENT OF PRIVATE CORPORATION.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—In order to facilitate pri-
vatization, the Corporation may provide for the es-
tablishment of a private corporation organized under
the laws of any of the several States. Such corpora-
tion shall have among its purposes the following:
148
‘‘(A) To help maintain a reliable and eco-
nomical domestic source of uranium enrichment
services.
‘‘(B) To undertake any and all activities as
provided in its corporate charter.
‘‘(2) AUTHORITIES.—The corporation estab-
lished pursuant to paragraph (1) shall be authorized
to—
‘‘(A) enrich uranium, provide for uranium
to be enriched by others, or acquire enriched
uranium (including low-enriched uranium de-
rived from highly enriched uranium);
‘‘(B) conduct, or provide for conducting,
those research and development activities relat-
ed to uranium enrichment and related processes
and activities the corporation considers nec-
essary or advisable to maintain itself as a com-
mercial enterprise operating on a profitable and
efficient basis;
‘‘(C) enter into transactions regarding ura-
nium, enriched uranium, or depleted uranium
with—
‘‘(i) persons licensed under section 53,
63, 103, or 104 in accordance with the li-
censes held by those persons;
149
‘‘(ii) persons in accordance with, and
within the period of, an agreement for co-
operation arranged under section 123; or
‘‘(iii) persons otherwise authorized by
law to enter into such transactions;
‘‘(D) enter into contracts with persons li-
censed under section 53, 63, 103, or 104, for
as long as the corporation considers necessary
or desirable, to provide uranium or uranium en-
richment and related services;
‘‘(E) enter into contracts to provide ura-
nium or uranium enrichment and related serv-
ices in accordance with, and within the period
of, an agreement for cooperation arranged
under section 123 or as otherwise authorized by
law; and
‘‘(F) take any and all such other actions as
are permitted by the law of the jurisdiction of
incorporation of the corporation.
‘‘(3) TRANSFER OF ASSETS.—For purposes of
implementing the privatization, the Corporation may
transfer some or all of its assets and obligations to
the corporation established pursuant to this section,
including—
150
‘‘(A) all of the Corporation’s assets and
obligations, including all of the Corporation’s
rights, duties, and obligations accruing subse-
quent to the privatization date under contracts,
agreements, and leases entered into by the Cor-
poration before the privatization date, including
all uranium enrichment contracts and power
purchase contracts;
‘‘(B) all funds in accounts of the Corpora-
tion held by the Treasury or on deposit with
any bank or other financial institution;
‘‘(C) all of the Corporation’s rights, duties,
and obligations, accruing subsequent to the pri-
vatization date, under the power purchase con-
tracts covered by section 1401(b)(2)(B);
‘‘(D) all of the Corporation’s rights, duties,
and obligations, accruing subsequent to the pri-
vatization date, under the lease agreement be-
tween the Department and the Corporation exe-
cuted by the Department and the Corporation
pursuant to section 1403; and
‘‘(E) all of the Corporation’s records, in-
cluding all of the papers and other documentary
materials, regardless of physical form or char-
151
acteristics, made or received by the Corpora-
tion.
‘‘(4) MERGER OR CONSOLIDATION.—For pur-
poses of implementing the privatization, the Cor-
poration may merge or consolidate with the corpora-
tion established pursuant to subsection (a)(1) if such
action is contemplated by the plan for privatization
approved by the President under section 1502(b).
The Board shall have exclusive authority to approve
such merger or consolidation and to take all further
actions necessary to consummate such merger or
consolidation, and no action by or in respect of
shareholders shall be required. The merger or con-
solidation shall be effected in accordance with, and
have the effects of a merger or consolidation under,
the laws of the jurisdiction of incorporation of the
surviving corporation, and all rights and benefits
provided under this title to the Corporation shall
apply to the surviving corporation as if it were the
Corporation.
‘‘(b) OSHA REQUIREMENTS.—For purposes of the
regulation of radiological and nonradiological hazards
under the Occupational Safety and Health Act of 1970,
the corporation established pursuant to subsection (a)(1)
shall be treated in the same manner as other employers
152
licensed by the Nuclear Regulatory Commission. Any
interagency agreement entered into between the Nuclear
Regulatory Commission and the Occupational Safety and
Health Administration governing the scope of their respec-
tive regulatory authorities shall apply to the corporation
as if the corporation were a Nuclear Regulatory Commis-
sion licensee.
‘‘(c) LEGAL STATUS OF PRIVATE CORPORATION.—
‘‘(1) NOT FEDERAL AGENCY.—The corporation
established pursuant to subsection (a)(1) shall not
be an agency, instrumentality, or establishment of
the United States Government and shall not be a
Government corporation or Government-controlled
corporation.
‘‘(2) 
NO
RECOURSE
AGAINST
UNITED
STATES.—Obligations of the Corporation established
pursuant to subsection (a)(1) shall not be obliga-
tions of, or guaranteed as to principal or interest by,
the Corporation or the United States, and the obli-
gations shall so plainly state.
‘‘(3) NO CLAIMS COURT JURISDICTION.—No ac-
tion under section 1491 of title 28, United States
Code, shall be allowable against the United States
based on the actions of the Corporation established
pursuant to subsection (a)(1).
153
‘‘(d) BOARD OF DIRECTOR’S ELECTION AFTER PUB-
LIC OFFERING.—In the event that the privatization is im-
plemented by means of a public offering, an election of
the members of the board of directors of the Corporation
by the shareholders shall be conducted before the end of
the 1-year period beginning the date shares are first of-
fered to the public pursuant to such public offering.
‘‘(e) ADEQUATE PROCEEDS.—The Secretary of En-
ergy shall not allow the privatization of the Corporation
unless before the sale date the Secretary determines that
the estimated sum of the gross proceeds from the sale of
the Corporation will be an adequate amount.’’.
(b) OWNERSHIP
LIMITATIONS.—Chapter 25 (as
amended by subsection (a)) is amended by adding at the
end the following new section:
‘‘SEC. 1504. OWNERSHIP LIMITATIONS.
‘‘(a) SECURITIES LIMITATION.—In the event that the
privatization is implemented by means of a public offering,
during a period of 3 years beginning on the privatization
date, no person, directly or indirectly, may acquire or hold
securities representing more than 10 percent of the total
votes of all outstanding voting securities of the Corpora-
tion.
‘‘(b) APPLICATION.—Subsection (a) shall not apply—
154
‘‘(1) to any employee stock ownership plan of
the Corporation,
‘‘(2) to underwriting syndicates holding shares
for resale, or
‘‘(3) in the case of shares beneficially held for
others, to commercial banks, broker-dealers, clearing
corporations, or other nominees.
‘‘(c) ACQUISITIONS.—No director, officer, or em-
ployee of the Corporation may acquire any securities, or
any right to acquire securities, of the Corporation—
‘‘(1) in the public offering of securities of the
Corporation in the implementation of the privatiza-
tion,
‘‘(2) pursuant to any agreement, arrangement,
or understanding entered into before the privatiza-
tion date, or
‘‘(3) before the election of directors of the Cor-
poration under section 1503(d) on any terms more
favorable than those offered to the general public.’’.
(c) EXEMPTION FROM LIABILITY.—Chapter 25 (as
amended by subsection (b)) is amended by adding at the
end the following new section:
‘‘SEC. 1505. EXEMPTION FROM LIABILITY.
‘‘(a) IN GENERAL.—No director, officer, employee, or
agent of the Corporation shall be liable, for money dam-
155
ages or otherwise, to any party if, with respect to the sub-
ject matter of the action, suit, or proceeding, such person
was fulfilling a duty, in connection with any action taken
in connection with the privatization, which such person in
good faith reasonably believed to be required by law or
vested in such person.
‘‘(b) EXCEPTION.—The privatization shall be subject
to the Securities Act of 1933 and the Securities Exchange
Act of 1934. The exemption set forth in subsection (a)
shall not apply to claims arising under such Acts or under
the Constitution or laws of any State, territory, or posses-
sion of the United States relating to transactions in secu-
rities, which claims are in connection with a public offer-
ing implementing the privatization.
‘‘(c) SECURITIES LAWS APPLICABLE.—Any offering
or sale of securities by the Corporation established pursu-
ant to section 1503(a)(1) shall be subject to the Securities
Act of 1933, the Securities Exchange Act of 1934 and
the provisions of the Constitution and laws of any State,
territory, or possession of the United States relating to
transactions in securities.’’.
(d) RESOLUTION OF CERTAIN ISSUES.—Chapter 25
(as amended by subsection (c)) is amended by adding at
the end the following new section:
156
‘‘SEC. 1506. RESOLUTION OF CERTAIN ISSUES.
‘‘(a) CORPORATION ACTIONS.—Notwithstanding any
provision of any agreement to which the Corporation is
a party, the Corporation shall not be considered to be in
breach, default, or violation of any such agreement be-
cause of any provision of this chapter or any action the
Corporation is required to take under this chapter.
‘‘(b) RIGHT TO SUE WITHDRAWN.—The United
States hereby withdraws any stated or implied consent for
the United States, or any agent or officer of the United
States, to be sued by any person for any legal, equitable,
or other relief with respect to any claim arising out of,
or resulting from, acts or omissions under this chapter.’’.
(e) ADDITIONAL
PROVISIONS.—Chapter 25 (as
amended by subsection (d)) is amended by adding at the
end the following:
‘‘SEC. 1507. APPLICATION OF PRIVATIZATION PROCEEDS.
‘‘The proceeds from the privatization shall be in-
cluded in the budget baseline required by the Balanced
Budget and Emergency Deficit Control Act of 1985 and
shall be counted as an offset to direct spending for pur-
poses of section 252 of such Act, notwithstanding section
257(e) of such Act.’’.
(f) CONFORMING AMENDMENT.—The table of con-
tents for chapter 25 is amended by inserting after the item
for section 1502 the following:
157
‘‘Sec. 1503. Establishment of private corporation.
‘‘Sec. 1504. Ownership limitations.
‘‘Sec. 1505. Exemption from liability.
‘‘Sec. 1506. Resolution of certain issues.
‘‘Sec. 1507. Application of privatization proceeds.’’.
(g) Section 193 (42 U.S.C. 2243) is amended by add-
ing at the end the following:
‘‘(f) LIMITATION.—If the privatization of the United
States Enrichment Corporation results in the Corporation
being—
‘‘(1) owned, controlled, or dominated by a for-
eign corporation or a foreign government, or
‘‘(2) otherwise inimical to the common defense
or security of the United States,
any license held by the Corporation under sections 53 and
63 shall be terminated.’’.
(h) PERIOD FOR CONGRESSIONAL REVIEW.—Section
1502(d) (42 U.S.C. 2297d–1(d)) is amended by striking
‘‘less than 60 days after notification of the Congress’’ and
inserting ‘‘less than 60 days after the date of the report
to Congress by the Comptroller General under subsection
(c)’’.
SEC. 3041. PERIODIC CERTIFICATION OF COMPLIANCE.
Section 1701(c)(2) (42 U.S.C. 2297f(c)(2)) is
amended by striking ‘‘ANNUAL APPLICATION FOR CER-
TIFICATE OF COMPLIANCE.—The Corporation shall apply
at least annually to the Nuclear Regulatory Commission
for a certificate of compliance under paragraph (1).’’ and
158
inserting ‘‘PERIODIC APPLICATION FOR CERTIFICATE OF
COMPLIANCE.—The Corporation shall apply to the Nu-
clear Regulatory Commission for a certificate of compli-
ance under paragraph (1) periodically, as determined by
the Nuclear Regulatory Commission, but not less than
every 5 years.’’.
SEC. 3042. LICENSING OF OTHER TECHNOLOGIES.
Subsection (a) of section 1702 (42 U.S.C. 2297f–
1(a)) is amended by striking ‘‘other than’’ and inserting
‘‘including’’.
SEC. 3043. CONFORMING AMENDMENTS.
(a) REPEALS IN ATOMIC ENERGY ACT OF 1954 AS
OF THE PRIVATIZATION DATE.—
(1) REPEALS.—As of the privatization date (as
defined in section 1201(13) of the Atomic Energy
Act of 1954), the following sections (as in effect on
such privatization date) of the Atomic Energy Act of
1954 are repealed:
(A) Section 1202.
(B) Sections 1301 through 1304.
(C) Sections 1306 through 1316.
(D) Sections 1404 and 1405.
(E) Section 1601.
(F) Sections 1603 through 1607.
159
(2) CONFORMING AMENDMENT.—The table of
contents of such Act is amended by repealing the
items referring to sections repealed by paragraph
(1).
(b) STATUTORY MODIFICATIONS.—As of such privat-
ization date, the following shall take effect:
(1) For purposes of title I of the Atomic En-
ergy Act of 1954, all references in such Act to the
‘‘United States Enrichment Corporation’’ shall be
deemed to be references to the corporation estab-
lished pursuant to section 1503 of the Atomic En-
ergy Act of 1954 (as added by section 3036(a)).
(2) Section 1018(1) of the Energy Policy Act of
1992 (42 U.S.C. 2296b–7(1)) is amended by strik-
ing ‘‘the United States’’ and all that follows through
the period and inserting ‘‘the corporation referred to
in section 1201(4) of the Atomic Energy Act of
1954.’’.
(3) Section 9101(3) of title 31, United States
Code, is amended by striking subparagraph (N), as
added by section 902(b) of Public Law 102–486.
(c) REVISION OF SECTION 1305.—As of such privat-
ization date, section 1305 of the Atomic Energy Act of
1954 (42 U.S.C 2297b–4) is amended—
160
(1) by repealing subsections (a), (b), (c), and
(d), and
(2) in subsection (e)—
(A) by striking the subsection designation
and heading,
(B) by redesignating paragraph (1) (as
added by section 3038(a)) as subsection (a),
striking ‘‘IN GENERAL.—’’ and inserting ‘‘IN
GENERAL.—’’, redesignating subparagraphs (A)
through (E) as paragraphs (1) through (5) (re-
designating in such paragraph, clauses (i)
through (iii) as subparagraphs (A) through
(C)), striking ‘‘clauses (i) through (iii)’’ in
paragraph (5) and inserting ‘‘subparagraphs
(A) through (C)’’, and by moving the margins
2-ems to the left,
(C) by striking paragraph (3), and
(D) by redesignating paragraph (4) (as
amended by section 3038(b)) as subsection (b),
and by moving the margins 2-ems to the left.
161
Subtitle D—Waste Isolation Pilot
Project
SEC. 3045. SHORT TITLE AND REFERENCE.
(a) SHORT TITLE.—This subtitle may be cited as the
‘‘Waste Isolation Pilot Plant Land Withdrawal Amend-
ment Act’’.
(b) REFERENCE.—Except as otherwise expressly pro-
vided, whenever in this subtitle an amendment or repeal
is expressed in terms of an amendment to, or repeal of,
a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the
Waste Isolation Pilot Plant Land Withdrawal Act (Public
Law 102–579).
SEC. 3046. DEFINITIONS.
Paragraphs (18) and (19) of section 2 are repealed.
SEC. 3047. TEST PHASE AND RETRIEVAL PLANS.
Section 5 is repealed.
SEC. 3048. TEST PHASE ACTIVITIES.
Section 6 is amended—
(1) by repealing subsections (a) and (b),
(2) by repealing paragraph (1) of subsection
(c),
(3) by repealing subparagraph (A) of paragraph
(2) of subsection (c),
162
(4) by redesignating subsection (c) as sub-
section (a), by striking the subsection heading and
the matter before paragraph (1) and inserting
‘‘STUDY.—The following study shall be conducted:’’,
by striking ‘‘(2) REMOTE-HANDLED WASTE.—’’, by
striking ‘‘(B) STUDY.—’’, and by redesignating
clauses (i), (ii), and (iii) as paragraphs (1), (2), and
(3), respectively, and moving them 4-ems to the left,
and
(5) by redesignating subsection (d) as sub-
section (b).
SEC. 3049. DISPOSAL OPERATIONS.
Section 7(b) is repealed.
SEC. 3050. ENVIRONMENTAL PROTECTION AGENCY DIS-
POSAL REGULATIONS.
(a) SECTION 8(d)(1).—Section 8(d)(1) is amended by
striking subparagraphs (B), (C), and (D) and by adding
after subparagraph (A) the following:
‘‘(B) COMMENTS
OF ADMINISTRATOR.—
Within 2 months of receipt of the application
under subparagraph (A), the Administrator
shall provide the Secretary with any comments
on the Secretary’s application. Within one
month of the receipt of such comments, the
Secretary shall, to the extent practicable, incor-
163
porate the Administrator’s comments in the
Secretary’s application. The comments of the
Administrator provided to the Secretary should
also be transmitted to the appropriate commit-
tees of jurisdiction in the House of Representa-
tives and the Senate.’’.
(b) SECTION 8(d) (2), (3).—Section 8(d) is amended
by striking paragraphs (2) and (3), by striking ‘‘(1) COM-
PLIANCE WITH DISPOSAL REGULATIONS.—’’, and by re-
designating subparagraphs (A) and (B) of paragraph (1),
as amended by subsection (a), as paragraphs (1) and (2),
respectively, and moving them 2-ems to the left.
(c) SECTION 8(f).—Subsection (f) of section 8 is
amended—
(1) by amending the subsection heading to read
‘‘PERIODIC REVIEW’’, and
(2) by amending paragraph (2) to read as fol-
lows:
‘‘(2) REVIEW
BY
THE
ADMINISTRATOR.—The
Administrator shall, not later than 6 months after
receiving a submission under paragraph (1), com-
ment on whether or not the WIPP facility continues
to be in compliance with the final disposition regula-
tions.’’.
164
(d) SECTION 8(g).—Section 8(g) is amended to read
as follows:
‘‘(g) ENGINEERED AND NATURAL BARRIERS, ETC.—
The Secretary should determine whether or not engineered
barriers or natural barriers, or both, will be required at
WIPP consistent with regulations published as part 191
of 40 C.F.R.’’.
SEC. 3051. COMPLIANCE WITH ENVIRONMENTAL LAWS AND
REGULATIONS.
(a) SECTION 9(a)(1).—Section 9(a)(1) is amended by
adding after and below subparagraph (H) the following:
‘‘With respect to transuranic mixed waste designated
by the Secretary for disposal at WIPP, such waste
is exempt from the land disposal restrictions pub-
lished at part 268 of 40 C.F.R. because compliance
with the environmental radiation protection stand-
ards published at part 191 of 40 C.F.R. renders
compliance with the land disposal restrictions unnec-
essary to achieve desired environmental protection
and a no migration variance is not required for dis-
posal of transuranic mixed waste at WIPP.’’.
(b) SECTION 9(b).—Subsection (b) of section 9 is re-
pealed.
(c) SECTIONS 9(c), (d).—Subsections (c) and (d) of
section 9 are repealed.
165
SEC. 3052. RETRIEVABILITY.
Section 10 is amended to read as follows:
‘‘SEC. 10. TRANSURANIC WASTE.
‘‘It is the intent of Congress that a decision will be
made by the Secretary with respect to the disposal of
transuranic waste no later than March 31, 1997.’’.
SEC. 3053. DECOMMISSIONING OF WIPP.
Section 13 is amended—
(1) by repealing subsection (a), and
(2) in subsection (b), by striking ‘‘(b) MANAGE-
MENT PLAN FOR THE WITHDRAWAL AFTER DECOM-
MISSIONING.—Within 5 years after the date of the
enactment of this Act, the’’ and inserting ‘‘The’’.
SEC. 3054. ECONOMIC ASSISTANCE AND MISCELLANEOUS
PAYMENTS.
Section 15(a) is amended—
(1) by striking ‘‘to the Secretary for payments
to the State $20,000,000 for each of the 15 fiscal
years beginning with the fiscal year in which the
transport of transuranic waste to WIPP is initiated’’
and inserting ‘‘to the State $20,000,000 for each of
the 15 fiscal years beginning with the date of the en-
actment of the Waste Isolation Pilot Plant Land
Withdrawal Amendment Act’’, and
166
(2) by adding at the end the following: ‘‘An ap-
propriation to the State shall be in addition to any
appropriation for WIPP.’’.
SEC. 3055. NON-DEFENSE WASTE.
Section 7(a) is amended by redesignating paragraph
(3) as paragraph (4) and by inserting after paragraph (2)
the following:
‘‘(3) NONDEFENSE WASTE.—Within the capac-
ity prescribed by paragraph (4), WIPP may receive
transuranic waste from the Secretary which did not
result from a defense activity.’’.
Subtitle E—Naval Petroleum
Reserves
SEC. 3071. SHORT TITLE.
This subtitle may be cited as the ‘‘Naval Petroleum
Reserve Privatization Act of 1995’’.
SEC. 3072. SALE OF NAVAL PETROLEUM RESERVES.
(a) SALE OF RESERVES REQUIRED.—Chapter 641 of
title 10, United States Code, is amended by inserting after
section 7421 the following new section:
‘‘§ 7421a. Sale of naval petroleum reserves
‘‘(a) SALE REQUIRED.—(1) Notwithstanding any
other provision of this chapter, the Secretary shall sell all
right, title, and interest of the United States in and to
the lands owned or controlled by the United States inside
167
the naval petroleum and oil shale reserves established by
this chapter. In the case of Naval Petroleum Reserve
Numbered 1, the lands to be sold shall include sections
16 and 36 of township 30 south, range 23 east, Mount
Diablo Principal Meridian, California.
‘‘(2) Not later than December 31, 1996, the Sec-
retary shall enter into one or more contracts for the sale
of all of the interest of the United States in the naval
petroleum reserves.
‘‘(b) TIMING AND ADMINISTRATION OF SALE.—(1)
Not later than January 1, 1996, the Secretary shall retain
the services of five independent experts in the valuation
of oil and gas fields to conduct separate assessments, in
a manner consistent with commercial practices, of the fair
market value of the interest of the United States in each
naval petroleum reserve. In making their assessments for
each naval petroleum reserve, the independent experts
shall consider (among other factors) all equipment and fa-
cilities to be included in the sale, the net present value
of the reserve, and the net present value of the anticipated
revenue stream that the Secretary determines the Treas-
ury would receive from the reserve if it were not sold, ad-
justed for any anticipated increases in tax revenues that
would result if it were sold. The independent experts shall
complete their assessments not later than July 1, 1996.
168
In setting the minimum acceptable price for each naval
petroleum reserve, the Secretary shall consider the average
of the five assessments regarding the reserve or, if more
advantageous to the Government, the average of three as-
sessments after excluding the high and low assessments.
‘‘(2) Not later than March 1, 1996, the Secretary
shall retain the services of an investment banker to inde-
pendently administer, in a manner consistent with com-
mercial practices and in a manner that maximizes sale
proceeds to the Government, the sale of the naval petro-
leum reserves under this section. The Secretary may enter
into the contracts required under this paragraph and
paragraph (1) on a noncompetitive basis.
‘‘(3) Not later than August 1, 1996, the sales admin-
istrator selected under paragraph (2) shall complete a
draft contract for the sale of each naval petroleum reserve,
which shall accompany the invitation for bids and describe
the terms and provisions of the sale of the interest of the
United States in the reserve. Each draft contract shall
identify all equipment and facilities to be included in the
sales. Each draft contract, including the terms and provi-
sions of the sale of the interest of the United States in
the naval petroleum reserves, shall be subject to review
and approval by the Secretary, the Secretary of the Treas-
169
ury, and the Director of the Office of Management and
Budget.
‘‘(4) Not later than September 1, 1996, the Secretary
shall publish an invitation for bids for the purchase of the
naval petroleum reserves.
‘‘(5) Not later than November 1, 1996, the Secretary
shall accept the highest responsible offer for purchase of
the interest of the United States in the naval petroleum
reserves, or a particular reserve, that meets or exceeds the
minimum acceptable price determined under paragraph
(1). The Secretary may accept an offer for only a portion
of a reserve so long as the entire reserve is still sold under
this section at a price that meets or exceeds the minimum
acceptable price.
‘‘(c) FUTURE LIABILITIES.—The United States shall
hold harmless and fully indemnify the purchaser of the
interest of the United States in a naval petroleum reserve
from and against any claim or liability as a result of own-
ership in the reserve by the United States.
‘‘(d) SPECIAL RULES PREPARATORY TO SALE OF
NAVAL PETROLEUM RESERVE NUMBERED 1.—(1) Not
later than June 1, 1996, the Secretary shall finalize equity
interests of the known oil and gas zones in Naval Petro-
leum Reserve Numbered 1 in the manner provided by this
subsection.
170
‘‘(2) The Secretary shall retain the services of an
independent petroleum engineer, mutually acceptable to
the equity owners, who shall prepare a recommendation
on final equity figures. The Secretary may accept the rec-
ommendation of the independent petroleum engineer for
final equity in each known oil and gas zone and establish
final equity interest in the Naval Petroleum Reserve Num-
bered 1 in accordance with such recommendation, or the
Secretary may use such other method to establish final
equity interest in that reserve as the Secretary considers
appropriate. The Secretary may enter into the contract re-
quired under this paragraph on a noncompetitive basis.
‘‘(3) If, on the effective date of this section, there
is an ongoing equity redetermination dispute between the
equity owners under section 9(b) of the unit plan contract,
such dispute shall be resolved in the manner provided in
the unit plan contract not later than June 1, 1996. Such
resolution shall be considered final for all purposes under
this section.
‘‘(4) In this section, the term ‘unit plan contract’
means the unit plan contract between equity owners of the
lands within the boundaries of Naval Petroleum Reserve
Numbered 1 (Elk Hills) entered into on June 19, 1944.
‘‘(e) PRODUCTION ALLOCATION REGARDING NAVAL
PETROLEUM RESERVE NUMBERED 1.—(1) As part of the
171
contract for purchase of Naval Petroleum Reserve Num-
bered 1, the purchaser of the interest of the United States
in that reserve shall agree to make up to 25 percent of
the purchaser’s share of annual petroleum production
from the purchased lands available for sale to small refin-
ers, which do not have their own adequate sources of sup-
ply of petroleum, for processing or use only in their own
refineries. None of the reserved production sold to small
refiners may be resold in kind. The purchaser of that re-
serve may reduce the quantity of petroleum reserved under
this subsection in the event of an insufficient number of
qualified bids. The seller of this petroleum production has
the right to refuse bids that are less than the prevailing
market price of comparable oil.
‘‘(2) The purchaser of Naval Petroleum Reserve
Numbered 1 shall also agree to ensure that the terms of
every sale of the purchaser’s share of annual petroleum
production from the purchased lands shall be so struc-
tured as to give full and equal opportunity for the acquisi-
tion of petroleum by all interested persons, including
major and independent oil producers and refiners alike.
‘‘(f) MAINTAINING PRODUCTION PENDING SALE OF
NAVAL PETROLEUM RESERVE NUMBERED 1.—Until the
sale of Naval Petroleum Reserve Numbered 1 is completed
under this section, the Secretary shall continue to produce
172
that reserve at the maximum daily oil or gas rate from
a reservoir, which will permit maximum economic develop-
ment of the reservoir consistent with sound oil field engi-
neering practices in accordance with section 3 of the unit
plan contract. The definition of maximum efficient rate
in section 7420(6) of this title shall not apply to Naval
Petroleum Reserve Numbered 1.
‘‘(g) EFFECT ON EXISTING CONTRACTS.—(1) In the
case of any contract, in effect on the effective date of this
section, for the purchase of production from any part of
the United States’ share of the naval petroleum reserves,
the sale of the interest of the United States in the reserves
shall be subject to the contract for a period of three
months after the closing date of the sale or until termi-
nation of the contract, whichever occurs first. The term
of any contract entered into after the effective date of this
section for the purchase of such production shall not ex-
ceed the anticipated closing date for the sale of the re-
serve.
‘‘(2) In the case of Naval Petroleum Reserve Num-
bered 1, the Secretary shall exercise the termination pro-
cedures provided in the contract between the United
States and Bechtel Petroleum Operation, Inc., Contract
Number DE–ACO1–85FE60520 so that the contract ter-
173
minates not later than the date of closing of the sale of
that reserve.
‘‘(3) In the case of Naval Petroleum Reserve Num-
bered 1, the Secretary shall exercise the termination pro-
cedures provided in the unit plan contract so that the unit
plan contract terminates not later than the date of closing
of the sale of that reserve.
‘‘(h) SET ASIDE OF SALE PROCEEDS ON ACCOUNT
OF CALIFORNIA CLAIMS REGARDING NAVAL PETROLEUM
RESERVE NUMBERED 1.—(1) An amount equal to seven
percent of the proceeds from the sale of Naval Petroleum
Reserve Numbered 1 shall be retained in a special account
in the Treasury for the purpose of paying any amount that
may be owed by the United States as a result of legal
action in connection with claims against the United States
by the State of California and the Teachers’ Retirement
Fund of the State of California with respect to lands with-
in Naval Petroleum Reserve Numbered 1, including sec-
tions 16 and 36 of township 30 south, range 23 east,
Mount Diablo Principal Meridian, California, or produc-
tion or proceeds of sale from that reserve.
‘‘(2) In determining the amount of the proceeds aris-
ing from the sale of Naval Petroleum Reserve Numbered
1, the Secretary shall deduct the costs incurred to conduct
the sale of that reserve.
174
‘‘(3) A payment may be made from the special ac-
count only to the extent that the aggregate amount of such
payment is provided for in advance in an appropriations
Act.
‘‘(i) EFFECT ON ANTITRUST LAWS.—Nothing in this
section shall be construed to alter the application of the
antitrust laws of the United States to the purchaser of
a naval petroleum reserve or to the lands in the naval pe-
troleum reserves subject to sale under this section upon
the completion of the sale.
‘‘(j) PRESERVATION OF PRIVATE RIGHT, TITLE, AND
INTEREST.—Nothing in this section shall be construed to
adversely affect the ownership interest of any other entity
having any right, title, and interest in and to lands within
the boundaries of the naval petroleum reserves.
‘‘(k) CONGRESSIONAL NOTIFICATION.—Section 7431
of this title shall not apply to the sale of the naval petro-
leum reserves under this section. However, the Secretary
may not enter into a contract for the sale of a naval petro-
leum reserve until the end of the 15-day period beginning
on the date on which the Secretary notifies the Committee
on Armed Services of the Senate and the Committee on
National Security and the Committee on Commerce of the
House of Representatives that the Secretary has accepted
175
an offer under subsection (b)(5) for the sale of that re-
serve.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 7421 the following new
item:
‘‘7421a. Sale of naval petroleum reserves.’’.
TITLE IV—COMMITTEE ON ECO-
NOMIC 
AND 
EDUCATIONAL
OPPORTUNITIES
SEC. 4000. TABLE OF CONTENTS.
The table of contents for this title is as follows:
TITLE IV—ECONOMIC AND EDUCATIONAL OPPORTUNITIES
Subtitle A—Higher Education
Sec. 4001. Short title; effective date.
Sec. 4002. Termination of direct lending.
Sec. 4003. Elimination of grace period interest subsidies.
Sec. 4004. Plus program reductions.
Sec. 4005. Loan transfer fee.
Sec. 4006. Lender fees to guaranty agencies.
Sec. 4007. Additional loan program changes.
Sec. 4008. Use of reserve funds to purchase defaulted loans.
Sec. 4009. Extension of period a guaranty agency must hold a defaulted loan.
Sec. 4010. Privatization of College Construction Loan Insurance Association.
Sec. 4011. Eligible institution.
Sec. 4012. Extension of program duration.
Subtitle B—Davis-Bacon and Service Contract Repeals
Sec. 4101. Davis-Bacon Act.
Sec. 4102. Service Contract Act of 1965.
Subtitle C—Provisions Relating to the Employee Retirement Income Security
Act of 1974
Sec. 4201. Waiver of minimum period for joint and survivor annuity expla-
nation before annuity starting date.
176
Subtitle A—Higher Education
SEC. 4001. SHORT TITLE; EFFECTIVE DATE.
(a) SHORT TITLE.—This subtitle may be cited as the
‘‘Higher Education Program Efficiency Act of 1995’’.
(b) EFFECTIVE DATE.—Except as otherwise provided
therein, the amendments made by this subtitle shall take
effect on January 1, 1996.
SEC. 4002. TERMINATION OF DIRECT LENDING.
(a) TERMINATION OF AUTHORITY.—
(1) PROGRAM AUTHORITY.—Section 451(a) of
the Higher Education Act of 1965 (20 U.S.C.
1087a(a)) is amended by inserting ‘‘and ending
June 30, 1996’’ after ‘‘period beginning July 1,
1994’’.
(2) TERMINATION OF FUNDING.—Section 452
of such Act (20 U.S.C. 1087b) is amended by add-
ing at the end the following new subsection:
‘‘(e) TERMINATION
OF FUNDING.—The Secretary
shall not provide funds under this section for loans for
any academic year beginning on or after July 1, 1996.
The Secretary shall not pay any fees pursuant to sub-
section (b) of this section on or after January 1, 1996.’’.
(3) TERMINATION
OF
AUTHORITY
TO
ENTER
NEW AGREEMENTS.—Section 453(a) of such Act (20
U.S.C. 1087c(a)) is amended—
177
(A) in paragraph (1), by inserting ‘‘and
ending before July 1, 1996’’ after ‘‘academic
years beginning on or after July 1, 1994’’;
(B) in paragraph (2)—
(i) by inserting ‘‘and’’ after the semi-
colon at the end of subparagraph (A);
(ii) by striking the semicolon at the
end of subparagraph (B) and inserting a
period; and
(iii) by striking subparagraphs (C)
and (D); and
(C) by striking paragraph (3) and redesig-
nating paragraph (4) as paragraph (3).
(b) ADMINISTRATIVE COST AMENDMENTS.—Section
458 of such Act (20 U.S.C. 1087h) of such Act is
amended—
(1) by striking subsection (d);
(2) by redesignating subsections (b) and (c) as
subsections (f) and (g), respectively; and
(3) by striking subsection (a) and inserting the
following:
‘‘(a) IN GENERAL.—
‘‘(1) DIRECT
ADMINISTRATIVE
COSTS.—Each
fiscal year there shall be available to the Secretary
of Education, from funds not otherwise appro-
178
priated, funds to be obligated for the subsidy costs
of direct administrative costs under this part, sub-
ject to subsection (b) of this section.
‘‘(2) INDIRECT ADMINISTRATIVE COSTS.—There
shall also be available from funds available from
funds not otherwise appropriated, funds to be obli-
gated for indirect administrative costs under this
part and part B, subject to subsection (c) of this
section, not to exceed (from such funds not other-
wise appropriated) $260,000,000 in fiscal year
1994, 
$345,000,000 
in 
fiscal 
year 
1995,
$110,000,000 in fiscal year 1996 (of which
$40,000,000 shall be available for administrative
cost allowances for guaranty agencies for October
through December of 1995), and $70,000,000 in
each of the fiscal years 1997 through 2002.
‘‘(3) REDUCTION.—The amount authorized to
be made available for fiscal year 1997 under para-
graph (2) shall be reduced by the amount of any un-
obligated unexpended funds available to carry out
this subsection for any fiscal year prior to fiscal year
1996.
‘‘(b) SUBSIDY COSTS.—For purposes of this section,
‘subsidy cost’ means the estimated long-term cost to the
179
Federal Government of direct administrative expenses cal-
culated on a net present value basis.
‘‘(c) DIRECT ADMINISTRATIVE EXPENSES.—For pur-
poses of this section, ‘direct administrative expenses’ shall
consist of the cost of—
‘‘(1) activities related to credit extension, loan
origination, loan servicing, management of contrac-
tors, and payments to contractors, other government
entities, and program participants;
‘‘(2) collection of delinquent loans; and
‘‘(3) write-off and closeout of loans.
‘‘(d) INDIRECT ADMINISTRATIVE EXPENSES.—For
purposes of this section, ‘indirect administrative expenses’
shall consist of the cost of—
‘‘(1) personnel engaged in developing program
regulations, policy, and administrative guidelines;
‘‘(2) audits of institutions and contractors;
‘‘(3) program reviews; and
‘‘(4) other oversight of the program.
‘‘(e) LIMITATION ON PART D EXPENDITURES.—For
any fiscal year, expenditures for indirect administrative
expenses and for loan servicing for loans made pursuant
to this part shall not exceed 30 percent of funds available
pursuant to paragraph (2) for such fiscal year.’’.
180
(c) ELIMINATION
OF
TRANSITION
TO
DIRECT
LOANS.—Such Act is further amended—
(1) 
in 
section 
422(c)(7) 
(20 
U.S.C.
1072(c)(7))—
(A) by striking ‘‘during the transition’’ and
all that follows through ‘‘part D of this title’’
in subparagraph (A); and
(B) by striking ‘‘section 428(c)(10)(F)(v)’’
in subparagraph (B) and inserting ‘‘section
428(c)(9)(F)(v)’’;
(2) in section 428(c)(8) (20 U.S.C. 1078(c)(8)),
by striking subparagraph (B) and inserting the fol-
lowing:
‘‘(B) Prior to making such determination for
any guaranty agency, the Secretary shall, in con-
sultation with the guaranty agency, develop criteria
to determine whether such guaranty agency has
made adequate collection efforts. In determining
whether a guaranty agency’s collection efforts have
met such criteria, the Secretary shall consider the
agency’s record of success in collecting on defaulted
loans, the age of the loans, and the amount of recent
payments received on the loans.’’;
(3) in section 428(c)(9)(E)—
181
(A) by inserting ‘‘or’’ after the semicolon
at the end of clause (iv);
(B) by striking ‘‘; or’’ at the end of clause
(v) and inserting a period; and
(C) by striking clause (vi);
(4) in clause (vii) of section 428(c)(9)(F)—
(A) by inserting ‘‘and’’ before ‘‘to avoid
disruption’’; and
(B) by striking ‘‘, and to ensure an orderly
transition’’ and all that follows through the end
of such clause and inserting a period;
(5) in section 428(c)(9)(K), by striking ‘‘the
progress of the transition from the loan programs
under this part to’’ and inserting ‘‘the integrity and
administration of’’;
(6) in section 428(e)(1)(B)(ii), by striking
‘‘during the transition’’ and all that follows through
‘‘part D of this title’’;
(7) in section 428(e)(3), by striking ‘‘of transi-
tion’’;
(8) in section 428(j)(3)—
(A) by striking ‘‘DURING TRANSITION TO
DIRECT LENDING’’; and
(B) by striking ‘‘during the transition’’
and all that follows through ‘‘part D of this
188
insurance premiums on such loans are paid to the
guaranty agency.
‘‘(4) PROHIBITION
ON
PASS-THROUGH.—No
part of any payments required by this section shall
be assessed or collected, directly or indirectly, from
any borrower under this part.’’.
SEC. 4007. ADDITIONAL LOAN PROGRAM CHANGES.
(a) RESERVE FUNDS.—
(1) AMENDMENTS
TO
SECTION
422.—Section
422 of the Higher Education Act of 1965 (20
U.S.C. 1072) is amended—
(A) in the last sentence of subsection
(a)(2), by striking ‘‘Except as provided in sec-
tion 428(c)(10)(E) or (F), such unencumbered’’
and inserting ‘‘Such’’;
(B) in subsection (g)(1), by striking ‘‘or
the program authorized by part D of this title’’
each place it appears;
(C) in subsection (g)(1)(D), by striking
‘‘(A) or (B)’’ and inserting ‘‘(A), (B), or (C)’’;
and
(D) in subsection (g), by striking para-
graph (4) and inserting the following:
‘‘(4) DISPOSITION OF FUNDS RETURNED TO OR
RECOVERED BY THE SECRETARY.—Any funds that
416
payments or overpayments which are demonstrated
by the Secretary to be based upon repeated, systemic
reporting errors for a significant number of leases or
a single lease for a significant number of reporting
months with the same type of error which con-
stitutes a pattern of violations and which are likely
to result in either significant underpayments or over-
payments.
‘‘(2) DELEGATION.—The power of the Sec-
retary to issue an order to perform a restructured
accounting may not be delegated below the most
senior career professional position having respon-
sibility for the royalty management program, which
position is currently designated as the ‘Associate Di-
rector for Royalty Management’. An order to per-
form a restructured accounting shall—
‘‘(A) be issued within a reasonable period
of time from when the audit identifies the sys-
temic, reporting errors;
‘‘(B) specify the reasons and factual bases
for such order; and
‘‘(C) be specifically identified as an ‘order
to perform a restructured accounting’.
‘‘(3) ORDER TO PERFORM.—An order to per-
form a restructured accounting shall not include any