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(2) AMENDMENTS
TO
THE
BANK
HOLDING
COMPANY
ACT
OF
1956.—Section 2 of the Bank
Holding Company Act of 1956 (12 U.S.C. 1841) is
amended—
(A) by striking subparagraph (E) of sub-
section (a)(5); and
(B) by striking subparagraphs (B) and (J)
of subsection (c)(2).
(3) AMENDMENTS TO THE FEDERAL RESERVE
ACT.—The 2d and 3d paragraphs of the 1st section
of the Federal Reserve Act (12 U.S.C. 221) are each
amended by inserting ‘‘(as defined in section 3(a)(2)
of the Federal Deposit Insurance Act)’’ after ‘‘State
bank’’.
SEC. 2222. TREATMENT OF CERTAIN ACTIVITIES AND AF-
FILIATIONS OF BANK HOLDING COMPANIES
RESULTING FROM THIS ACT.
Section 4 of the Bank Holding Company Act of 1956
(12 U.S.C. 1843) is amended by adding at the end the
following new subsection:
‘‘(k) TREATMENT OF COMPANIES RESULTING FROM
SAVINGS AND LOAN HOLDING COMPANIES.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of this section (other than paragraph (5))
or any other provision of Federal law including sec-
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tions 20 and 32 of the Banking Act of 1933, a
qualified bank holding company may, after such
company becomes a bank holding company—
‘‘(A) maintain or enter into any non-
banking affiliation which such company was au-
thorized to maintain or enter into as of Septem-
ber 22, 1995, or was authorized to maintain
following a merger of insured depository institu-
tion subsidiaries pursuant to an application
filed no later than such date; and
‘‘(B) engage, directly or through any affili-
ate described in subparagraph (A) which is not
a bank, in any activity in which such company
or any affiliate described in subparagraph (A)
was authorized to engage as of September 22,
1995, or in which such company was authorized
to engage following a merger of insured deposi-
tory institution subsidiaries pursuant to an ap-
plication filed no later than such date,
if the requirements of paragraph (4) are met.
‘‘(2) QUALIFIED BANK HOLDING COMPANY DE-
FINED.—For purposes of this subsection, the term
‘qualified bank holding company’ means—
‘‘(A) any company which—
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‘‘(i) as of September 13, 1995, is a
savings and loan holding company and is
not a bank holding company; and
‘‘(ii) becomes a bank holding company
after such date; and
‘‘(B) any bank holding company which as
of September 13, 1995—
‘‘(i) is a savings and loan holding
company; and
‘‘(ii) is exempt from this section pur-
suant to an order issued by the Board
under subsection (d).
‘‘(3) NO
LOSS
OF
SUBSECTION (d) EXEMP-
TION.—No qualified bank holding company de-
scribed in paragraph (2)(B) shall lose the grounds
for the exemption under subsection (d) because a
savings association which such company controlled,
directly or indirectly, as of September 13, 1995, be-
comes a bank after such date so long as such bank
continues to meet the requirements of subpara-
graphs (A) and (B) of paragraph (4).
‘‘(4) PREREQUISITES
FOR
CONTINUATION
OF
GRANDFATHERED ACTIVITIES AND AFFILIATIONS.—
This subsection shall cease to apply with respect to
a qualified bank holding company if, at any time
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after such company first meets the definition of a
qualified bank holding company—
‘‘(A) any insured depository institution
controlled by such company which, as of the
day before the company first meets the defini-
tion of a qualified bank holding company, was
subject to the requirements contained in section
10(m) of the Home Owners’ Loan Act, as in ef-
fect on such date, (and regulations in effect on
such date under such section) for treatment as
a qualified thrift lender under such section fails
to meet such requirements;
‘‘(B) any insured depository institution
controlled by such company fails to comply with
any limitation or restriction on the type or
amounts of loans or investments of the institu-
tion to which such institution was subject as of
the date of the enactment of the Thrift Charter
Conversion Act of 1995; or
‘‘(C) the company or any subsidiary of the
company acquires more than 5 percent of the
shares or assets of any bank or insured institu-
tion after September 13, 1995.
‘‘(5) 
NONTRANSFERABLE.—This 
subsection
shall not apply with respect to any qualified bank
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holding company if, after September 13, 1995, any
person acquires, directly or indirectly, control of the
company or the company is the subject of any merg-
er, consolidation, or other similar transaction.
‘‘(6) PROHIBITION ON CERTAIN INSURED DE-
POSITORY INSTITUTIONS IDENTIFYING THEMSELVES
AS NATIONAL BANKS.—
‘‘(A) IN
GENERAL.—Notwithstanding the
requirement of section 5134 of the Revised
Statutes of the United States—
‘‘(i) the name of an insured depository
institution subsidiary of a qualified bank
holding company which—
‘‘(I) as of the date of the enact-
ment of the Thrift Charter Conversion
Act of 1995, is a savings and loan
holding company described in section
10(c)(3) of the Home Owners’ Loan
Act (as in effect on such date); and
‘‘(II) is subject to the restrictions
contained in paragraph (3),
may not include the term ‘national’; and
‘‘(ii) such insured depository institu-
tion may not be identified as a national
bank on any sign displayed by the institu-
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tion or in any advertisement or other pub-
lication of the institution.
‘‘(B) DEPOSITORY INSTITUTION NOT LIA-
BLE
FOR
FRAUDULENT
MISREPRESENTATION
FOR
NOT
REPRESENTING
ITSELF
AS
A
NA-
TIONAL BANK.—An insured depository institu-
tion which is subject to subparagraph (A) shall
not be liable for any civil or criminal penalty
under any Federal or State consumer protection
law, or in any criminal or civil action, for fraud-
ulently misrepresenting the nature of the char-
ter of the institution, for falsely advertising the
status of the institution, for making a false
statement with respect to the status of the in-
stitution, or for any similar offense by reason of
the institution’s compliance with such subpara-
graph.
‘‘(7) ENFORCEMENT.—In addition to any other
power of the Board, the Board may enforce compli-
ance with the provisions of this subsection with re-
spect to any qualified bank holding company and
any bank controlled by such company under section
8 of the Federal Deposit Insurance Act.’’.
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SEC. 2223. TRANSITION PROVISIONS FOR ACTIVITIES OF
SAVINGS ASSOCIATIONS WHICH CONVERT
INTO OR BECOME TREATED AS BANKS.
Notwithstanding any other provision of Federal law,
any insured depository institution which, as of September
13, 1995, is a savings association (as defined in section
3(b) of the Federal Deposit Insurance Act (as in effect
on such date)) and after such date converts to a national
or State bank charter or becomes treated as a State bank
pursuant to the amendment made by section 2221(b) may
continue to engage, directly or indirectly, in any activity
in which such institution was lawfully engaged as of such
date during the 5-year period beginning on the effective
date of such conversion or the effective date of such
amendments, as the case may be.
SEC. 2224. REGISTRATION OF BANK HOLDING COMPANIES
RESULTING FROM CONVERSIONS OF SAV-
INGS ASSOCIATIONS TO BANKS OR TREAT-
MENT OF SAVINGS ASSOCIATIONS AS BANKS.
Section 3 of the Bank Holding Company Act of 1956
(12 U.S.C. 1842) is amended by adding at the end the
following new subsections:
‘‘(h) REGISTRATION OF CERTAIN BANK HOLDING
COMPANIES.—A company which, as of September 13,
1995, is a savings and loan holding company (as defined
in section 10(a)(1)(D) of Home Owners’ Loan Act (as in
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effect on such date)) and is not a bank holding company
shall not be required to obtain the approval of the Board
under subsection (a) to become a bank holding company
after September 13, 1995, as a result of the conversion
of any insured depository institution subsidiary of such
company into a bank or by virtue of the treatment of any
insured depository institution subsidiary of such company
as a bank pursuant to the amendments made by the Thrift
Charter Conversion Act of 1995, if such company—
‘‘(1) registers as a bank holding company with
the Board in accordance with section 5(a); and
‘‘(2) does not acquire, directly or indirectly,
ownership or control of any additional insured de-
pository institution or other company in connection
with such conversion or treatment.
‘‘(i) REGULATION OF QUALIFIED BANK HOLDING
COMPANIES.—The Board shall regulate qualified bank
holding companies (as defined in section 4(k)(2)) in a
manner consistent with—
‘‘(1) the regulation of such companies by the
Director of the Office of Thrift Supervision before
the date of the enactment of the Thrift Charter Con-
version Act of 1995; and
‘‘(2) the safety and soundness of insured depos-
itory institution subsidiaries of such companies.’’.
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SEC. 2225. ADDITIONAL TRANSITION PROVISIONS AND SPE-
CIAL RULES.
(a) MUTUAL NATIONAL BANKS AUTHORIZED; CON-
VERSION OF MUTUAL SAVINGS ASSOCIATIONS INTO NA-
TIONAL BANKS.—
(1) IN GENERAL.—Chapter one of title LXII of
the Revised Statutes of the United States (12
U.S.C. 21 et seq.) is amended by inserting after sec-
tion 5133 the following new section:
‘‘SEC. 5133A. MUTUAL NATIONAL BANKS.
‘‘(a) IN GENERAL.—Notwithstanding the paragraph
designated the ‘‘Third’’ of section 5134, the Comptroller
of the Currency may charter national banks organized in
the mutual form either de novo or through a conversion
of any stock national or State bank (as defined in section
3 of the Federal Deposit Insurance Act) or any State mu-
tual bank or credit union, subject to regulations prescribed
by the Comptroller of the Currency in accordance with this
section.
‘‘(b) REGULATIONS.—
‘‘(1) TRANSITION RULES.—National banks or-
ganized in the mutual form shall be subject to the
regulations of the Director of the Office of Thrift
Supervision governing corporate organization, gov-
ernance, and conversion of mutual institutions, as in
effect on September 13, 1995, including parts 543,
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544, 546, 563b, and 563c of chapter V of title 12
of the Code of Federal Regulations (as in effect on
such date), during the 3-year period beginning on
the date of the enactment of the Thrift Charter Con-
version Act of 1995.
‘‘(2) REGULATIONS OF THE COMPTROLLER.—
The Comptroller of the Currency shall prescribe ap-
propriate regulations for national banks organized in
the mutual form, effective as of the end of the 3-
year period referred to in paragraph (1).
‘‘(3) APPLICABILITY
OF
CAPITAL
STOCK
RE-
QUIREMENTS.—The Comptroller of the Currency
shall prescribe regulations regarding the manner in
which requirements of title LXII of the Revised
Statutes of the United States with respect to capital
stock, and limitations imposed on national banks
under such title based on capital stock, shall apply
to national banks organized in mutual form pursu-
ant to subsection (a).
‘‘(c) CONVERSIONS.—
‘‘(1) 
CONVERSION
TO
STOCK
NATIONAL
BANK.—Subject to subsection (b)(1) and, after the
end of the 3-year period referred to in such sub-
section, such regulations as the Comptroller of the
Currency may prescribe for the protection of deposi-
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tors’ rights and for any other purpose the Comptrol-
ler of the Currency may consider appropriate, any
national bank which is organized in mutual form
pursuant to paragraph (1) may reorganize as a
stock national bank.
‘‘(2) CONVERSIONS TO STATE BANKS.—Any na-
tional mutual bank may convert to a State bank
charter in accordance with regulations prescribed by
the Comptroller of the Currency and applicable
State law.’’.
(2) MUTUAL
BANK
HOLDING
COMPANIES.—
Subsection (g) of section 3 of the Bank Holding
Company Act of 1956 (12 U.S.C. 1842(g)) is
amended to read as follows:
‘‘(g) MUTUAL BANK HOLDING COMPANIES.—
‘‘(1) IN
GENERAL.—A national mutual bank
may reorganize so as to become a holding company
by—
‘‘(A) chartering an interim national bank,
the stock of which is to be wholly owned, except
as otherwise provided in this section, by the na-
tional mutual bank; and
‘‘(B) transferring the substantial part of
the national mutual bank’s assets and liabil-
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ities, including all of the bank’s insured liabil-
ities, to the interim national bank.
‘‘(2) DIRECTORS AND CERTAIN ACCOUNT HOLD-
ERS’ APPROVAL OF PLAN REQUIRED.—A reorganiza-
tion is not authorized under this subsection unless—
‘‘(A) a plan providing for such reorganiza-
tion has been approved by a majority of the
board of directors of the national mutual bank;
and
‘‘(B) in the case of a national mutual bank
in which holders of accounts and obligors exer-
cise voting rights, such plan has been submitted
to and approved by a majority of such individ-
uals at a meeting held at the call of the direc-
tors in accordance with the procedures pre-
scribed by the bank’s charter and bylaws.
‘‘(3) NOTICE TO THE BOARD; DISAPPROVAL PE-
RIOD.—
‘‘(A) NOTICE REQUIRED.—
‘‘(i) IN GENERAL.—At least 60 days
before taking any action described in para-
graph (1), a national mutual bank seeking
to establish a mutual holding company
shall provide written notice to the Board.
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‘‘(ii) CONTENTS OF NOTICE.—The no-
tice shall contain such relevant information
as the Board shall require by regulation or
by specific request in connection with any
particular notice.
‘‘(B) TRANSACTION ALLOWED IF NOT DIS-
APPROVED.—Unless the Board within such 60-
day notice period disapproves the proposed
holding company formation, or extends for an-
other 30 days the period during which such dis-
approval may be issued, the national mutual
bank providing such notice may proceed with
the transaction, if the requirements of para-
graph (2) have been met.
‘‘(C) GROUNDS
FOR
DISAPPROVAL.—The
Board may disapprove any proposed holding
company formation only if—
‘‘(i) such disapproval is necessary to
prevent unsafe or unsound practices;
‘‘(ii) the financial or management re-
sources of the national mutual bank in-
volved warrant disapproval;
‘‘(iii) the national mutual bank fails
to furnish the information required under
subparagraph (A); or
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‘‘(iv) the national mutual bank fails to
comply with the requirement of paragraph
(2).
‘‘(D) RETENTION OF CAPITAL ASSETS.—In
connection with the transaction described in
paragraph (1), a national mutual bank may,
subject to the approval of the Board, retain
capital assets at the holding company level to
the extent that the capital retained at the hold-
ing company is in excess of the amount of cap-
ital required in order for the interim national
bank to meet all relevant capital standards es-
tablished by the Comptroller of the Currency
for national banks.
‘‘(4) OWNERSHIP.—
‘‘(A) IN GENERAL.—Persons having own-
ership rights in the national mutual bank under
section 5133A of the Revised Statutes of the
United States (including paragraph 575.5 of
chapter V of title 12 of the Code of Federal
Regulations, as in effect on September 13,
1995, and applicable to national mutual banks
pursuant to such section) or State law shall
have the same ownership rights with respect to
the mutual holding company.
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‘‘(B) HOLDERS OF CERTAIN ACCOUNTS.—
Holders of savings, demand, or other accounts
of—
‘‘(i) a national bank chartered as part
of a transaction described in paragraph
(1); or
‘‘(ii) a mutual bank acquired pursuant
to paragraph (5)(B),
shall have the same ownership rights with re-
spect to the mutual holding company as persons
described in subparagraph (A) of this para-
graph.
‘‘(5) PERMITTED ACTIVITIES.—A mutual hold-
ing company may engage only in the following activi-
ties:
‘‘(A) Investing in the stock of a national or
State bank.
‘‘(B) Acquiring a mutual bank through the
merger of such bank into a national bank sub-
sidiary of such holding company or an interim
national bank subsidiary of such holding com-
pany.
‘‘(C) Subject to paragraph (6), merging
with or acquiring another holding company, one
of whose subsidiaries is a national mutual bank.
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‘‘(D) Investing in a corporation the capital
stock of which is available for purchase by a na-
tional mutual bank under Federal law or under
the law of any State where the home office of
any subsidiary bank is located.
‘‘(E) Engaging in the activities permitted
under section 4(c).
‘‘(6) LIMITATIONS ON CERTAIN ACTIVITIES OF
ACQUIRED HOLDING COMPANIES.—
‘‘(A) NEW ACTIVITIES.—If a mutual hold-
ing company acquires or merges with another
holding company under paragraph (5)(C), the
holding company acquired or the holding com-
pany resulting from such merger or acquisition
may only invest in assets and engage in activi-
ties which are authorized under paragraph (5).
‘‘(B) GRACE PERIOD FOR DIVESTING PRO-
HIBITED ASSETS OR DISCONTINUING PROHIB-
ITED ACTIVITIES.—Not later than 2 years fol-
lowing a merger or acquisition described in
paragraph (5)(C), the acquired holding com-
pany or the holding company resulting from
such merger or acquisition shall—
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‘‘(i) dispose of any asset which is an
asset in which a mutual holding company
may not invest under paragraph (5); and
‘‘(ii) cease any activity which is an ac-
tivity in which a mutual holding company
may not engage under paragraph (5).
‘‘(7) 
CHARTERING
AND
OTHER
REQUIRE-
MENTS.—
‘‘(A) IN
GENERAL.—A mutual holding
company shall be chartered by the Board and
shall be subject to such regulations as the
Board may prescribe.
‘‘(B) OTHER REQUIREMENTS.—Unless the
context otherwise requires, a mutual holding
company shall be subject to the other require-
ments of this Act regarding regulation of hold-
ing companies.
‘‘(8) CAPITAL IMPROVEMENT.—
‘‘(A) PLEDGE OF STOCK OF SAVINGS ASSO-
CIATION
SUBSIDIARY.—This section shall not
prohibit a mutual holding company from pledg-
ing all or a portion of the stock of a national
bank chartered as part of a transaction de-
scribed in paragraph (1) to raise capital for
such bank.
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‘‘(B) ISSUANCE OF NONVOTING SHARES.—
No provision of this Act shall be construed as
prohibiting a national bank chartered as part of
a transaction described in paragraph (1) from
issuing any nonvoting shares or less than 50
percent of the voting shares of such bank to
any person other than the mutual holding com-
pany.
‘‘(9) INSOLVENCY AND LIQUIDATION.—
‘‘(A) IN GENERAL.—Notwithstanding any
provision of law, upon—
‘‘(i) the default of any national
bank—
‘‘(I) the stock of which is owned
by any mutual holding company; and
‘‘(II) which was chartered in a
transaction described in paragraph
(1);
‘‘(ii) the default of a mutual holding
company; or
‘‘(iii) a foreclosure on a pledge by a
mutual holding company described in para-
graph (8)(A),
a trustee shall be appointed receiver of such
mutual holding company and such trustee shall
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have the authority to liquidate the assets of,
and satisfy the liabilities of, such mutual hold-
ing company pursuant to title 11, United States
Code.
‘‘(B) DISTRIBUTION OF NET PROCEEDS.—
Except as provided in subparagraph (C), the
net proceeds of any liquidation of any mutual
holding company pursuant to subparagraph (A)
shall be transferred to persons who hold owner-
ship interests in such mutual holding company.
‘‘(C) RECOVERY BY CORPORATION.—If the
Corporation incurs a loss as a result of the de-
fault of any savings association subsidiary of a
mutual holding company which is liquidated
pursuant to subparagraph (A), the Corporation
shall succeed to the ownership interests of the
depositors of such savings association in the
mutual holding company, to the extent of the
Corporation’s loss.
‘‘(10) STATE
MUTUAL
BANK
HOLDING
COM-
PANY.—
‘‘(A) IN GENERAL.—Notwithstanding any
provision of Federal law, a State bank operat-
ing in mutual form may reorganize so as to
form a holding company under State law.
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‘‘(B) REGULATION
OF
STATE
MUTUAL
HOLDING COMPANY.—A corporation organized
as a holding company in accordance with sub-
paragraph (A) shall be regulated on the same
terms and be subject to the same limitations as
any other holding company which controls a
bank.
‘‘(11) REGULATIONS.—
‘‘(A) TRANSITION
RULES.—Mutual bank
holding companies organized under this sub-
section shall be subject to the regulations of the
Director of the Office of Thrift Supervision gov-
erning corporate organization, governance, and
conversion of mutual institutions, as in effect
on September 13, 1995, including part 575 of
chapter V of title 12 of the Code of Federal
Regulations (as in effect on such date), during
the 3-year period beginning on the date of the
enactment of the Thrift Charter Conversion Act
of 1995.
‘‘(B) REGULATIONS OF THE BOARD.—The
Board shall prescribe appropriate regulations
for mutual holding companies, effective at the
end of the 3-year period referred to in subpara-
graph (A).
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‘‘(12) DEFINITIONS.—For purposes of this sub-
section—
‘‘(A) MUTUAL
HOLDING
COMPANY.—The
term ‘mutual holding company’ means a cor-
poration organized as a holding company under
this subsection.
‘‘(B) 
DEFAULT.—The 
term 
‘default’
means an adjudication or other official deter-
mination of a court of competent jurisdiction or
other public authority pursuant to which a con-
servator, receiver, or other legal custodian is
appointed.
‘‘(C) NATIONAL MUTUAL BANK.—The term
‘national mutual bank’ means a national bank
organized in mutual form under section 5133A
of the Revised Statutes of the United States.’’.
(3) LIMITATION ON FEDERAL REGULATION OF
STATE
BANKS.—Except as otherwise provided in
Federal law, the Comptroller of the Currency, Board
of Governors of the Federal Reserve System, and
Federal Deposit Insurance Corporation may not
adopt or enforce any regulation which contravenes
the corporate governance rules prescribed by State
law or regulation for State banks unless the Comp-
troller, Board, or Corporation finds that such Fed-
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eral regulation is necessary to assure the safety and
soundness of such State banks.
(4) CONVERSIONS OF MUTUAL SAVINGS ASSO-
CIATIONS TO MUTUAL NATIONAL BANKS BY OPER-
ATION OF LAW.—Notwithstanding any other provi-
sion of Federal or State law, any savings association
(as defined in section 3 of the Federal Deposit In-
surance Act (as in effect on September 13, 1995))
which is organized in mutual form as of the date of
the enactment of this Act may become a national
mutual bank by operation of law if the association—
(A) files the articles of association and or-
ganization certificate with the Comptroller of
the Currency before January 1, 1998, in ac-
cordance with chapter one of title LXII of the
Revised Statutes of the United States; and
(B) provides such other document or infor-
mation as the Comptroller of the Currency may
prescribe in regulations consistent with this sec-
tion and section 5133A of the Revised Statutes
of the United States (as added by paragraph
(1) of this subsection).
(5) CLERICAL AMENDMENT.—The table of sec-
tions for chapter one of title LXII of the Revised
Statutes of the United States (12 U.S.C. 21 et seq.)
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is amended by inserting after the item relating to
section 5133 the following new item:
‘‘5133A.
Mutual national banks.’’.
(b) 
MEMBERSHIP
IN
FEDERAL
HOME
LOAN
BANKS.—Any insured depository institution which—
(1) as of the date of the enactment of this Act,
is a Federal savings association which, pursuant to
section 6(e) of the Federal Home Loan Bank Act,
may not voluntarily withdraw from membership in a
Federal home loan bank; and
(2) after such date converts from a Federal
savings association to a national bank,
shall continue to be subject to the prohibition under such
section on voluntary withdrawal from such membership as
though such bank were still a Federal savings association
until the bank ceases to be a national bank.
(c) BRANCHES.—
(1) IN GENERAL.—Notwithstanding any provi-
sion of the Federal Deposit Insurance Act, the Bank
Holding Company Act of 1956, or any other Federal
or State law, any depository institution which—
(A) as of the date of the enactment of this
Act, is a savings association; and
(B) becomes a bank before January 1,
1998, or, pursuant to the amendments made by
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this subsection, is treated as a bank as of such
date under the Federal Deposit Insurance Act,
and any depository institution or bank holding com-
pany which acquires such depository institution, may
continue, after the depository institution becomes or
commences to be treated as a bank, to operate any
branch which the savings association operated as a
branch on September 13, 1995.
(2) NO
ADDITIONAL
BRANCHES.—Paragraph
(1) shall not be construed as authorizing the estab-
lishment, acquisition, or operation of any additional
branch of a depository institution in any State by
virtue of the operation by such institution of a
branch in such State pursuant to such paragraph
except to the extent such establishment, acquisition,
or operation is permitted under the Federal Deposit
Insurance Act, Bank Holding Company Act of 1956,
and any other applicable Federal or State law with-
out regard to such branch.
(d) TRANSITION PROVISION RELATING TO LIMITA-
TIONS ON LOANS TO 1 BORROWER.—Section 5200 of the
Revised Statutes of the United States (12 U.S.C. 84) is
amended by adding at the end the following new sub-
section:
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‘‘(e) TRANSITION PROVISION FOR SAVINGS ASSOCIA-
TIONS CONVERTING TO NATIONAL BANKS.—In the case
of any depository institution which, as of September 13,
1995, is a savings association (as defined in section 3(b)
of the Federal Deposit Insurance Act (as in effect on such
date)) and becomes a national bank on or before January
1, 1998, any loan, or legally binding commitment to make
a loan, made or entered into by such institution which is
outstanding on the date the institution becomes a national
bank may continue to be held without regard to any limi-
tation contained in this section during the 3-year period
beginning on such date.’’.
SEC. 2226. TECHNICAL AND CONFORMING AMENDMENTS.
(a) AMENDMENTS TO THE FEDERAL DEPOSIT IN-
SURANCE ACT.—
(1) Section 3(z) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1813(z)) is amended by strik-
ing ‘‘the Director of the Office of Thrift Super-
vision,’’.
(2) Section 8(b) of the Federal Deposit Insur-
ance Act (12 U.S.C. 1818(b)) is amended by strik-
ing paragraph (9).
(3) Section 13 of the Federal Deposit Insurance
Act (12 U.S.C. 1823) is amended by striking sub-
section (k).
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(4) Subsections (c)(2) and (i)(2) of section 18
of the Federal Deposit Insurance Act (12 U.S.C.
1828) are each amended—
(A) in subparagraph (B), by inserting
‘‘and’’ after the semicolon;
(B) in subparagraph (C), by striking ‘‘;
and’’ and inserting a period; and
(C) by striking subparagraph (D).
(5) Section 18 of the Federal Deposit Insurance
Act (12 U.S.C. 1828) is amended by striking sub-
section (m).
(6) The Federal Deposit Insurance Act (12
U.S.C. 1811 et seq.) is amended by striking section
28.
(b) AMENDMENTS TO THE BANK HOLDING COMPANY
ACT OF 1956.—
(1) Section 2 of the Bank Holding Company
Act of 1956 (12 U.S.C. 1841) is amended by strik-
ing subsections (i) and (j).
(2) Section 4(c)(8) of the Bank Holding Com-
pany Act of 1956 (12 U.S.C. 1843(c)(8)) is amend-
ed by striking the sentence preceding the penul-
timate sentence.
(3) Section 4(f) of the Bank Holding Company
Act of 1956 (12 U.S.C. 1843(f)) is amended—
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(A) in paragraph (2)(A)(i), by striking ‘‘or
an insured institution’’ and all that follows
through ‘‘of this subsection)’’;
(B) in paragraph (2)(A)(ii)—
(i) by striking ‘‘or a savings associa-
tion’’ where such term appears in the por-
tion of such paragraph which precedes
subclause (I);
(ii) by inserting ‘‘and’’ at the end of
subclause (VI);
(iii) by striking subclauses (VIII),
(IX), and (X); and
(iv) by striking ‘‘(V), and (VIII)’’,
where such term appears in the portion of
such paragraph which appears after the
end of subclause (VII), and inserting ‘‘and
(V)’’; and
(C) by striking paragraphs (10), (11),
(12), and (13).
(4) Section 4(i) of the Bank Holding Company
Act of 1956 (12 U.S.C. 1843(i)) is amended—
(A) by striking paragraphs (1) and (2);
and
(B) in paragraph (3)(A), by striking ‘‘any
Federal savings association’’ and all that fol-
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lows through the period at the end of such
paragraph and inserting ‘‘such association was
authorized to engage under this section as of
September 15, 1995.’’.
(c) OTHER TECHNICAL AND CONFORMING AMEND-
MENTS.—
(1) Section 804(a) of the Alternative Mortgage
Transaction Parity Act of 1982 (12 U.S.C. 3803) is
amended—
(A) in the portion of such subsection which
precedes paragraph (1)—
(i) 
by 
striking 
‘‘, 
and 
other
nonfederally chartered housing creditors,’’;
and
(ii) by inserting ‘‘and in order to per-
mit other nonfederally chartered housing
creditors to make, purchase, and enforce
alternative mortgage transactions,’’ after
‘‘enforcing alternative mortgage trans-
actions, ’’; and
(B) in paragraph (1), by inserting ‘‘(as
such term is defined in section 3(a) of the Fed-
eral Deposit Insurance Act)’’ after ‘‘with re-
spect to banks’’.
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(2) Section 205 of the Depository Institution
Management Interlocks Act (12 U.S.C. 3204) is
amended—
(A) in the portion of paragraph (8)(A)
which precedes clause (i), by striking ‘‘A diver-
sified savings’’ and all that follows through
‘‘with respect to’’ and inserting ‘‘A depository
institution holding company which, as of Sep-
tember 13, 1995, and at all times thereafter, is
a diversified savings and loan holding company
(as defined in section 10(1)(F) of Home Own-
ers’ Loan Act, as such section is in effect on
such date) with respect to’’; and
(B) by striking paragraph (9).
(3) Section 19(b)(1)(A) of the Federal Reserve
Act (12 U.S.C. 461(b)(1)(A)) is amended—
(A) by inserting ‘‘and’’ after the semicolon
at the end of clause (v); and
(B) by striking clause (vi).
(4) Subparagraphs (A), (B), (C) of section
10(e)(5) of the Federal Home Loan Bank Act (12
U.S.C. 1430(e)(5)) are each amended by inserting
before the period at the end ‘‘(as such section is in
effect on September 13, 1995)’’.
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SEC. 2227. REFERENCES TO SAVINGS ASSOCIATIONS AND
STATE BANKS IN FEDERAL LAW.
Effective January 1, 1998, any reference in any Fed-
eral banking law to—
(1) the term ‘‘savings association’’ shall be
deemed to be a reference to a bank as defined in
section 3(a) of the Federal Deposit Insurance Act;
and
(2) the term ‘‘State bank’’ shall be deemed to
include any depository institution included in the
definition of such term in section 3(a)(2) of such
Act.
SEC. 2228. REPEAL OF HOME OWNERS’ LOAN ACT.
Effective January 1, 1998, the Home Owners’ Loan
Act (12 U.S.C. 1461 et seq.) is hereby repealed.
SEC. 2229. EFFECTIVE DATE; DEFINITIONS.
(a) EFFECTIVE
DATE
OF
AMENDMENTS.—The
amendments made by this chapter shall take effect on
January 1, 1998.
(b) DEFINITIONS.—For purposes of this chapter, the
terms ‘‘appropriate Federal banking agency’’, ‘‘bank hold-
ing company’’, ‘‘depository institution’’, ‘‘Federal savings
association’’, ‘‘insured depository institution’’, ‘‘savings
association’’, and ‘‘State bank’’ have the same meanings
as in section 3 of the Federal Deposit Insurance Act (as
in effect on the date of the enactment of this Act).
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CHAPTER 3—TRANSFER OF FUNCTIONS,
PERSONNEL, AND PROPERTY
SEC. 2241. OFFICE OF THRIFT SUPERVISION ABOLISHED.
Effective January 1, 1998, the Office of Thrift Su-
pervision and the position of Director of the Office of
Thrift Supervision are hereby abolished.
SEC. 2242. DETERMINATION OF TRANSFERRED FUNCTIONS
AND EMPLOYEES.
(a) ALL OFFICE OF THRIFT SUPERVISION EMPLOY-
EES SHALL BE TRANSFERRED.—All employees of the Of-
fice of Thrift Supervision shall be identified for transfer
under subsection (b) to the Office of the Comptroller of
the Currency, the Federal Deposit Insurance Corporation,
or the Board of Governors of the Federal Reserve System.
(b) FUNCTIONS AND EMPLOYEES TRANSFERRED.—
(1) IN GENERAL.—The Director of the Office of
Thrift Supervision, the Comptroller of the Currency,
the Chairperson of the Federal Deposit Insurance
Corporation, and the Chairman of the Board of Gov-
ernors of the Federal Reserve System shall jointly
determine the functions or activities of the Office of
Thrift Supervision, and the number of employees of
such Office necessary to perform or support such
functions or activities, which are transferred from
the Office to the Office of the Comptroller of the
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Currency, the Federal Deposit Insurance Corpora-
tion, or the Board of Governors of the Federal Re-
serve System, as the case may be.
(2) ALLOCATION OF EMPLOYEES.—The Comp-
troller of the Currency, the Chairperson of the Fed-
eral Deposit Insurance Corporation, and the Chair-
man of the Board of Governors of the Federal Re-
serve System shall allocate the employees of the Of-
fice of Thrift Supervision consistent with the num-
ber determined pursuant to paragraph (1) in a man-
ner which such Comptroller, Chairperson, and Chair-
man, in their sole discretion, deem equitable, except
that, within work units, the agency preferences of
individual employees shall be accommodated as far
as possible.
(c) DISPOSITION OF AFFAIRS.—
(1) IN GENERAL.—In winding up the affairs of
the Office of Thrift Supervision, the Director of the
Office of Thrift Supervision shall consult and co-
operate with the Comptroller of the Currency, the
Federal Deposit Insurance Corporation, and the
Board of Governors of the Federal Reserve System,
as the case may be, to facilitate the orderly transfer
of the functions to such Comptroller, Corporation, or
Board.
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(2) CONTINUING AUTHORITY OF DIRECTOR OF
THE OFFICE OF THRIFT SUPERVISION.—Except as
provided in paragraph (1), no provision of this sub-
title shall be construed as affecting the authority
vested in the Director of the Office of Thrift Super-
vision before the date of enactment of this Act which
is necessary to carry out the duties of the position
until the date upon which the position of Director of
the Office of Thrift Supervision is abolished.
(3) CONTINUATION
OF
AGENCY
SERVICES.—
Any agency, department, or other instrumentality of
the United States, or any successor to any such
agency, department, or instrumentality, which was
providing support services to the Director of the Of-
fice of Thrift Supervision on the day before the date
such position is abolished shall—
(A) continue to provide such services on a
reimbursable basis, in accordance with the
terms of the arrangement pursuant to which
such services were provided until the arrange-
ment is modified or terminated in accordance
with such terms, except that effective January
1, 1998, the Comptroller of the Currency, the
Federal Deposit Insurance Corporation, or the
Board of Governors of the Federal Reserve Sys-
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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,
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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-
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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
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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,
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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
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(B) the substitution of the new index will
result in an interest rate substantially similar to
the rate in effect at the time the original index
became unavailable.
SEC. 2244. REFERENCES IN FEDERAL LAW TO DIRECTOR OF
THE OFFICE OF THRIFT SUPERVISION.
Effective January 1, 1998, any reference in any Fed-
eral law to the Director of the Office of Thrift Supervision
or the Office of Thrift Supervision shall be deemed to be
a reference to the appropriate Federal banking agency (as
defined in section 3(q) of the Federal Deposit Insurance
Act).
SEC. 2245. RECONFIGURATION OF BOARD OF DIRECTORS
OF FDIC AS A RESULT OF REMOVAL OF DI-
RECTOR OF THE OFFICE OF THRIFT SUPER-
VISION.
(a) IN GENERAL.—Section 2(a)(1) of the Federal
Deposit Insurance Act (12 U.S.C. 1812(a)(1)) is amended
to read as follows:
‘‘(1) IN
GENERAL.—The management of the
Corporation shall be vested in a Board of Directors
consisting of 3 members—
‘‘(A) 1 of whom shall be the Comptroller of
the Currency; and
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‘‘(B) 2 of whom shall be appointed by the
President, by and with the advice and consent
of the Senate, from among individuals who are
citizens of the United States.’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 2(a)(2) of the Federal Deposit In-
surance Act (12 U.S.C. 1812(a)(2)) is amended—
(A) by striking ‘‘February 28, 1993’’ and
inserting ‘‘January 1, 1998’’; and
(B) by striking ‘‘3’’ and inserting ‘‘2’’.
(2) Section 2(d)(2) of the Federal Deposit In-
surance Act (12 U.S.C. 1812(d)(2)) is amended—
(A) by striking ‘‘or the office of Director
of the Office of Thrift Supervision’’;
(B) by striking ‘‘or such Director’’;
(C) by striking ‘‘or the Acting Director of
the Office of Thrift Supervision, as the case
may be’’; and
(D) by striking ‘‘or Director’’.
(c) EFFECTIVE DATE.—The amendments made by
subsections (a) and (b) shall take effect on January 1,
1998.
(d) DESIGNATION OF ABOLISHED POSITION.—Unless
there is a vacancy in the position of an appointed member
of the Board of Directors as of January 1, 1998, the
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President, consistent with the requirements of section
2(a)(2) of the Federal Deposit Insurance Act, shall des-
ignate which of the 3 positions of appointed member of
such Board of Directors shall be abolished pursuant to
the amendment made by subsection (a).
Subtitle C—Community
Reinvestment Act Amendments
SEC. 2301. EXPRESSION OF CONGRESSIONAL INTENT.
Subsection (b) of section 802 of the Community Rein-
vestment Act of 1977 (12 U.S.C. 2901) is amended to
read as follows:
‘‘(b) It is the purpose of this title to require each ap-
propriate Federal financial supervisory agency to use its
authority, when examining financial institutions, to en-
courage such institutions to help meet the credit needs of
the local communities in which they are chartered consist-
ent with the safe and sound operation of such institutions.
When examining financial institutions, a supervisory agen-
cy shall not impose additional burden, recordkeeping, or
reporting upon such institutions.’’.
SEC. 2302. COMMUNITY REINVESTMENT ACT EXEMPTION.
The Community Reinvestment Act of 1977 (12
U.S.C. 2901 et seq.) is amended by adding at the end
the following new section:
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‘‘SEC. 809. TREATMENT OF SMALL FINANCIAL INSTITU-
TIONS.
‘‘(a) IN GENERAL.—In lieu of being evaluated under
section 806A and receiving a written evaluation under sec-
tion 807, an eligible regulated financial institution shall
make a notice, signed by the president, available to the
public that—
‘‘(1) lists the type of credit and services that
the institution provides to help meet the credit needs
of the local community; and
‘‘(2) states that the institution helps meet the
credit needs of the local communities in which the
institution operates, including low- and moderate-in-
come neighborhoods.
‘‘(b) ELIGIBLE
REGULATED
FINANCIAL
INSTITU-
TIONS.—
‘‘(1) IN GENERAL.—A regulated financial insti-
tution shall be eligible for purposes of subsection (a)
if the institution and any bank holding company
which controls such institution have aggregate assets
of not more than $100,000,000.
‘‘(2) 
ANNUAL
ADJUSTMENT.—The 
dollar
amount in paragraph (1) shall be adjusted annually
after December 31, 1994, by the annual percentage
increase in the Consumer Price Index for Urban
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Wage Earners and Clerical Workers published by
the Bureau of Labor Statistics.
‘‘(c) EXEMPTION FROM OTHER REQUIREMENTS.—A
regulated financial institution which has complied with the
notice requirements of subsection (a) shall not be subject
to section 804 and any regulations prescribed under sec-
tion 806.’’.
SEC. 2303. SELF-CERTIFICATION OF CRA COMPLIANCE.
Section 804 of the Community Reinvestment Act of
1977 (12 U.S.C. 2903) is amended by adding at the end
the following new subsection (c):
‘‘(c) SELF-CERTIFICATION OF CRA COMPLIANCE.—
‘‘(1) CERTIFICATION.—In lieu of being evalu-
ated under section 806A and receiving a written
evaluation under section 807, a qualifying financial
institution may elect to self-certify to the appro-
priate Federal financial supervisory agency that such
institution is in compliance with the goals of this
title.
‘‘(2) QUALIFYING INSTITUTION.—
‘‘(A) IN GENERAL.—For purposes of para-
graph (1), the term ‘qualifying institution’
means a financial institution which—
‘‘(i) has not more than $250 million
in assets;
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‘‘(ii) has not been found to have en-
gaged in a pattern or practice of illegal
discrimination under the Fair Housing Act
or the Equal Credit Opportunity Act for
the preceding 5-year calendar period; and
‘‘(iii) received rating under section
807(b)(2) of ‘satisfactory’ or ‘outstanding’
in the most recent evaluation of such insti-
tution under this title.
‘‘(B) ANNUAL
ADJUSTMENT.—The dollar
amount in subparagraph (A) shall be adjusted
annually after December 31, 1994, by the an-
nual percentage increase in the Consumer Price
Index for Urban Wage Earners and Clerical
Workers published by the Bureau of Labor
Statistics.
‘‘(3) PUBLIC NOTICE.—
‘‘(A) IN GENERAL.—A qualifying institu-
tion shall maintain in every branch a public no-
tice stating that—
‘‘(i) the institution has self-certified
that the institution is satisfactorily helping
to meet the credit needs of its community;
‘‘(ii) the institution maintains—
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‘‘(I) at the main office of such in-
stitution, a public file which contains
a copy of the self-certification to the
appropriate Federal financial super-
visory agency; and
‘‘(II) a map delineating the com-
munity served by the institution;
‘‘(iii) a list of the types of credit and
services that the institution provides to the
community served by the institution;
‘‘(iv) such other information that the
institution believes demonstrates the insti-
tution’s record of helping to meet the cred-
it needs of its community; and
‘‘(v) every public comment or letter to
the institution (and any response by the
institution) received within the previous 2-
year period about the record of the institu-
tion of helping to meet the credit needs of
its community.
‘‘(B) PUBLIC FILE.—A qualifying institu-
tion shall maintain a public file containing the
contents described in this paragraph at the in-
stitution’s main office.
‘‘(4) RATING.—
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‘‘(A) IN GENERAL.—A qualifying institu-
tion shall be deemed to have a rating of a ‘sat-
isfactory record of meeting community credit
needs’ for the purposes of this section and sec-
tion 806A(c).
‘‘(B) PUBLICATION.—Each Federal finan-
cial supervisory agency shall publish in the Fed-
eral Register once each month a list of institu-
tions that have self-certified during the previous
month.
‘‘(C) PUBLICATION CONSTITUTES DISCLO-
SURE.—Publication of the name of the institu-
tion in the Federal Register as having self-cer-
tified shall constitute disclosure of the rating of
the institution to the public for purposes of sec-
tions 806A and 807.
‘‘(5) REGULATORY REVIEW.—
‘‘(A) ASSESSMENT.—During each exam-
ination for safety and soundness, a qualifying
institution’s supervisory agency shall, as part of
the agency’s review of the institution’s loans,
assess whether the institution’s basis for its
self-certification is reasonable based on the pub-
lic notice and the information contained in the
public file pursuant to paragraph (3).
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‘‘(B) 
EXAMINATION
IF
SELF-CERTIFI-
CATION IS NOT REASONABLE.—If the agency
determines that the institution’s basis for the
institution’s self-certification is not reasonable,
the agency shall schedule an examination of the
institution for the purpose of assessing the in-
stitution’s record of helping to meet the credit
needs of its community.
‘‘(C) 
REVOCATION
OF
SELF-CERTIFI-
CATION.—If an assessment pursuant to sub-
paragraph (B) results in a less than ‘satisfac-
tory’ rating, the agency shall revoke the institu-
tion’s self-certification and substitute a written
evaluation as provided under section 807.
‘‘(D) PERIOD OF INELIGIBILITY FOR SELF-
CERTIFICATION.—An institution whose self-cer-
tification has been revoked may not self-certify
pursuant to this subsection during the 5 years
succeeding the year in which the self-certifi-
cation is revoked.
‘‘(E) SUBSEQUENT
ELIGIBILITY.—After
the end of the period of ineligibility described in
subparagraph (D), an institution which meets
the requirements for self-certification may elect
to self-certify.
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‘‘(6) PROHIBITION
ON
ADDITIONAL
REQUIRE-
MENTS.—No appropriate Federal financial super-
visory agency may impose any additional require-
ments, whether by regulation or otherwise, relating
to the self-certification procedure under this sub-
section.’’.
SEC. 2304. COMMUNITY INPUT AND CONCLUSIVE RATING.
(a) CONFORMING AMENDMENT.—Section 804(a) of
the Community Reinvestment Act of 1977 (12 U.S.C.
2903) is amended by inserting ‘‘conducted in accordance
with section 806A,’’ after ‘‘financial institution,’’.
(b) COMMUNITY INPUT AND CONCLUSIVE RATING.—
The Community Reinvestment Act of 1977 (12 U.S.C.
2901 et seq.) is amended by inserting after section 806
the following new section:
‘‘SEC. 806A. COMMUNITY INPUT AND CONCLUSIVE RATING.
‘‘(a) PUBLICATION OF EXAM SCHEDULE AND OPPOR-
TUNITY FOR COMMENT.—
‘‘(1) PUBLICATION OF NOTICE.—Each appro-
priate Federal financial supervisory agency shall—
‘‘(A) publish in the Federal Register, 30
days before the beginning of a calendar quarter,
a listing of institutions scheduled for evaluation
for compliance with this title during such cal-
endar quarter; and
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‘‘(B) provide opportunity for written com-
ments from the community on the performance,
under this title, of each institution scheduled
for evaluation.
‘‘(2) COMMENT
PERIOD.—Written comments
may not be submitted to an appropriate Federal fi-
nancial supervisory agency pursuant to paragraph
(1) after the end of the 30-day period beginning on
the first day of the calendar quarter.
‘‘(3) COPY OF COMMENTS.—The agency shall
provide a copy of such comments to the institution.
‘‘(b) EVALUATION.—The appropriate Federal finan-
cial supervisory agency shall—
‘‘(1) evaluate the institution in accordance with
the standards contained in section 804; and
‘‘(2) prepare and publish a written evaluation of
the institution as required under section 807.
‘‘(c) RECONSIDERATION OF RATING.—
‘‘(1) REQUEST FOR RECONSIDERATION.—A re-
consideration of an institution’s rating referred to in
section 807(b)(1)(C), may be requested within 30
days of the rating’s disclosure to the public.
‘‘(2) PROCEDURES FOR REQUEST.—Any such
request shall be made in writing and filed with the
appropriate Federal financial supervisory agency,
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record of meeting the credit needs of its community
for purposes of section 804 until the institution’s
next rating, developed pursuant to an examination,
becomes conclusive.
‘‘(3) SAFE HARBOR.—Institutions which have
received a ‘satisfactory’ or ‘outstanding’ rating shall
be deemed to have met the purposes of section 804.
‘‘(4) RULE OF CONSTRUCTION.—Notwithstand-
ing any other provision of law, no provision of this
section shall be construed as granting a cause of ac-
tion to any person.’’.
(c) OVERALL EVALUATION OF INSTITUTION.—Para-
graph (2) of section 804(a) of the Community Reinvest-
ment Act of 1977 (12 U.S.C. 2903(a)) is amended to read
as follows:
‘‘(2) take such record into account in the over-
all evaluation of the condition of the institution by
the appropriate Federal financial supervisory agen-
cy.’’.
SEC. 2305. SPECIAL PURPOSE FINANCIAL INSTITUTIONS.
(a) IN GENERAL.—Section 804 of the Community
Reinvestment Act of 1977 (12 U.S.C. 2903) is amended
by inserting after subsection (c) (as added by section 2303
of this subtitle) the following new subsection:
‘‘(d) SPECIAL PURPOSE INSTITUTIONS.—
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‘‘(1) IN GENERAL.—In conducting assessments
pursuant to this section at any special purpose insti-
tution, the appropriate Federal financial supervisory
agency shall—
‘‘(A) consider the nature of business such
institution is involved in; and
‘‘(B) assess and take into account the
record of the institution commensurate with the
amount of deposits (as defined in section 3(1)
of the Federal Deposit Insurance Act) received
by such institution.
‘‘(2) STANDARDS.—Each appropriate Federal
financial supervisory agency shall develop standards
under which special purpose institutions may be
deemed to have complied with the requirements of
this title which are consistent with the specific na-
ture of such businesses.’’.
(b) SPECIAL PURPOSE INSTITUTION DEFINED.—
Section 803 of the Community Reinvestment Act of 1977
(12 U.S.C. 2902) is amended by adding at the end the
following new paragraph:
‘‘(5) SPECIAL
PURPOSE
INSTITUTIONS.—The
term ‘special purpose institution’ means a financial
institution that does not generally accept deposits
from the public in amounts of less than $100,000,
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such as wholesale, credit card, and trust institu-
tions.’’.
SEC. 2306. INCREASED INCENTIVES FOR LENDING TO LOW-
AND MODERATE-INCOME COMMUNITIES.
(a) IN GENERAL.—Section 804(b) of the Community
Reinvestment Act of 1977 (12 U.S.C. 2903(b)) is amend-
ed to read as follows:
‘‘(b) POSITIVE CONSIDERATION OF CERTAIN LOANS
AND INVESTMENTS.—In assessing and taking into ac-
count the records of a regulated financial institution under
subsection (a), the appropriate Federal financial super-
visory agency shall—
‘‘(1) consider as a positive factor, consistent
with the safe and sound operation of the institution,
the institution’s investment in or loan to—
‘‘(A) any minority depository institution or
women’s depository institution (as such terms
are defined in section 808(b)) or any low-in-
come credit union;
‘‘(B) any joint venture or other entity or
project which promotes the public welfare in
any distressed community (as defined by such
agency) whether or not the distressed commu-
nity is located in the local community in which
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the regulated financial institution is chartered
to do business; and
‘‘(C) targeted low- and moderate-income
communities, including real property loans to
such communities; and
‘‘(2) consider equally with other factors capital
investment, loan participation, and other ventures
undertaken by the institution in cooperation with—
‘‘(A) minority- and women-owned financial
institutions and low-income credit unions to the
extent that these activities help meet the credit
needs of the local communities in which such
institutions are chartered; and
‘‘(B) community development corporations
in extending credit and other financial services
principally to low- and moderate-income persons
and small businesses to the extent that such
community development corporations help meet
the credit needs of the local communities served
by the majority-owned institution.’’.
(b) AMENDMENT TO DEFINITIONS.—Section 803 of
the Community Reinvestment Act of 1977 (12 U.S.C.
2902) is amended by inserting after paragraph (5) (as
added by section 2305(b) of this subtitle) the following
new paragraph:
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‘‘(6) STATE
BANK
SUPERVISOR.—The term
‘State bank supervisor’ has the same meaning as in
section 3(r) of the Federal Deposit Insurance Act.’’.
(c) TECHNICAL CORRECTION.—The 1st of the 2
paragraphs designated as paragraph (2) of section 803 of
the Community Reinvestment Act of 1977 (12 U.S.C.
2902) is amended to read as follows:
‘‘(D) the Director of the Office of Thrift
Supervision with respect to any savings associa-
tion (the deposits of which are insured by the
Federal Deposit Insurance Corporation) and
any savings and loan holding company (other
than a company which is a bank holding com-
pany);’’.
SEC. 2307. PROHIBITION ON ADDITIONAL REPORTING
UNDER CRA.
Section 806 of the Community Reinvestment Act of
1977 (12 U.S.C. 2905) is amended to read as follows:
‘‘SEC. 806. REGULATIONS.
‘‘(a) IN GENERAL.—
‘‘(1) 
PUBLICATION
REQUIREMENT.—Regula-
tions to carry out the purposes of this title shall be
published by each appropriate Federal financial su-
pervisory agency.
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‘‘(2) PROHIBITION
ON
ADDITIONAL
RECORD-
KEEPING.—Regulations prescribed and policy state-
ments, commentary, examiner guidance, or other su-
pervisory material issued under this title shall not
impose any additional recordkeeping on a financial
institution.
‘‘(3) PROHIBITION
ON
LOAN
DATA
COLLEC-
TION.—No loan data may be required to be collected
and reported by a financial institution and no such
data may be made public by any Federal financial
supervisory agency under this title.’’.
SEC. 2308. TECHNICAL AMENDMENT.
Section 807(b)(1)(B) of the Community Reinvest-
ment Act (12 U.S.C. 2906) is amended by striking ‘‘The
information’’ and inserting ‘‘In the case of a regulated fi-
nancial institution that maintains domestic branches in 2
or more States, the information’’.
SEC. 2309. DUPLICATIVE REPORTING.
Section 10(g) of the Federal Home Loan Bank Act
(12 U.S.C. 1430(g)) is amended by adding at the end the
following new paragraph (3):
‘‘(3) SPECIAL RULE.—This subsection shall not
apply to members receiving a grade of ‘outstanding’
or ‘satisfactory’ under section 807 of the Community
Reinvestment Act of 1977.’’.
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SEC. 2310. CRA CONGRESSIONAL OVERSIGHT.
(a) SENSE OF CONGRESS RELATING TO AGGRESSIVE
OVERSIGHT.—It is the sense of the Congress that the ap-
propriate committees of the House of Representatives and
the Senate should exercise aggressive oversight of the
adoption and implementation of any regulation by any ap-
propriate Federal financial supervisory agency under the
Community Reinvestment Act of 1977 after the date of
the enactment of this Act.
(b) AGENCY REPORTS REQUIRED.—
(1) IN GENERAL.—Each appropriate Federal fi-
nancial supervisory agency shall submit a report to
the Congress by December 31, 1996, and by Decem-
ber 31, 1997, on the implementation of all regula-
tions prescribed by such agency under the Commu-
nity Reinvestment Act of 1977 after the date of the
enactment of this Act.
(2) REQUIREMENTS
RELATING
TO
PREPARA-
TION OF REPORTS.—In preparing each report re-
quired under paragraph (1), each appropriate Fed-
eral financial supervisory agency shall—
(A) solicit and include comments from reg-
ulated financial institutions with respect to the
regulations which are the subject of the report;
and
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(B) include quantifiable measures of the
cost savings achieved under the regulations
which are the subject of the report and the ef-
fectiveness of such regulations in achieving the
purposes of the Community Reinvestment Act
of 1977.
(3) DEFINITIONS.—For purposes of this sec-
tion, the terms ‘‘appropriate Federal financial super-
visory agency’’ and ‘‘regulated financial institution’’
have the same meanings as in section 803 of the
Community Reinvestment Act of 1977.
SEC. 2311. CONSULTATION AMONG EXAMINERS.
Section 10 of the Federal Deposit Insurance Act (12
U.S.C. 1820) is amended by adding at the end the follow-
ing new subsection:
‘‘(j) CONSULTATION AMONG EXAMINERS.—
‘‘(1) IN GENERAL.—Each appropriate Federal
banking agency shall take such action as may be
necessary to ensure that examiners employed by the
agency—
‘‘(A) consult on examination activities with
respect to any depository institution; and
‘‘(B) achieve an agreement and resolve any
inconsistencies on the recommendations to be
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given to such institution as a consequence of
any examinations.
‘‘(2) 
EXAMINER-IN-CHARGE.—Each 
agency
shall consider appointing an examiner-in-charge with
respect to a depository institution to ensure con-
sultation on examination activities among all of the
agency’s examiners involved in examinations of such
institution.’’.
SEC. 2312. LIMITATION ON REGULATIONS.
Section 806 of the Community Reinvestment Act of
1977 (12 U.S.C. 2905) (as amended by section 2307) is
amended by adding at the end the following new sub-
sections:
‘‘(b) LIMITATION ON REGULATIONS.—No regulation
may be prescribed under this title by any Federal agency
which would—
‘‘(1) require any regulated financial institution
to—
‘‘(A) make any loan or enter into any
other agreement on the basis of any discrimina-
tory criteria prohibited under any law of the
United States; or
‘‘(B) make any loan to, or enter into any
other agreement with, any uncreditworthy per-
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son that would jeopardize the safety and sound-
ness of such institution; or
‘‘(2) prevent or hinder in any way a financial
institution’s full responsibility to provide credit to all
segments of the community.
‘‘(c) ENCOURAGE LOANS TO CREDITWORTHY BOR-
ROWERS.—Regulations prescribed under this title shall en-
courage regulated financial institutions to make loans and
extend credit to all creditworthy persons, consistent with
safety and soundness.’’.
Subtitle D—Phase-Down of
Oversight Board
SEC. 2401. TERMINATION OF AUTHORITY OF OVERSIGHT
BOARD TO EMPLOY STAFF.
(a) IN GENERAL.—Section 21A(a) of the Federal
Home Loan Bank Act (12 U.S.C. 1441a(a)) is amended
by adding at the end the following new paragraph:
‘‘(17) PHASED-DOWN
OPERATION
OF
OVER-
SIGHT BOARD FOLLOWING TERMINATION OF COR-
PORATION.—
‘‘(A) TERMINATION OF AUTHORITY TO EM-
PLOY STAFF.—Except as provided in subpara-
graph (B), the authority of the Thrift Depositor
Protection Oversight Board under paragraph
(5) to establish officer and employee positions,
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to compensate officers and employees of the
Board, to provide other benefits for officers and
employees of the Board, and to utilize staff of
any other department or agency shall terminate
as of December 31, 1995.
‘‘(B) LIMITED AUTHORITY FOR DETAILING
STAFF FROM OTHER AGENCIES.—If the Thrift
Depositor Protection Oversight Board deter-
mines that any staff is required to carry out the
functions of the Board after the authority to
employ staff terminates under subparagraph
(A), the Board shall—
‘‘(i) utilize employees of any other de-
partment or agency in accordance with
paragraph (5)(F) to carry out the staff
functions which have been determined to
be necessary; and
‘‘(i) submit a report to the Congress
containing—
‘‘(I) the number of staff positions
which the Board has determined are
necessary to carry out the Board’s
functions after the termination of the
Corporation;
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‘‘(II) a justification for such de-
termination; and
‘‘(III) an estimate of the length
of the period for which such staff po-
sitions will be required.’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Subparagraphs (B), (C), (D), and (E) of
section 21A(a)(5) of the Federal Home Loan Bank
Act (12 U.S.C. 1441a(a)(5)) are each amended by
inserting ‘‘subject to paragraph (17)(A),’’ after the
closing parenthesis of the subparagraph designation.
(2) Section 21A(a)(5)(F) of the Federal Home
Loan Bank Act (12 U.S.C. 1441a(a)(5)(F)) is
amended by inserting ‘‘subject to subparagraphs (A)
and (B) of paragraph (17) and’’ after ‘‘(F)’’.
TITLE III—COMMITTEE ON
COMMERCE
Subtitle A—Communications
CHAPTER 1—SPECTRUM AUCTIONS
SEC. 3001. SPECTRUM AUCTIONS.
(a) EXTENSION AND EXPANSION OF AUCTION AU-
THORITY.—
(1) AMENDMENTS.—Section 309(j) of the Com-
munications Act of 1934 (47 U.S.C. 309(j)) is
amended—
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(A) by striking paragraphs (1) and (2) and
inserting in lieu thereof the following:
‘‘(1) GENERAL AUTHORITY.—If, consistent with
the obligations described in paragraph (6)(E), mutu-
ally exclusive applications are accepted for any ini-
tial license or construction permit which will involve
an exclusive use of the electromagnetic spectrum,
then the Commission shall grant such license or per-
mit to a qualified applicant through a system of
competitive bidding that meets the requirements of
this subsection.
‘‘(2) EXEMPTIONS.—The competitive bidding
authority granted by this subsection shall not apply
to licenses or construction permits issued by the
Commission—
‘‘(A) that, as the result of the Commission
carrying out the obligations described in para-
graph (6)(E), are not mutually exclusive;
‘‘(B) for public safety radio services, in-
cluding non-Government uses that protect the
safety of life, health, and property and that are
not made commercially available to the public;
or
‘‘(C) for initial licenses or construction
permits for new terrestrial digital television
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services assigned by the Commission to existing
terrestrial broadcast licensees to replace their
current television licenses.’’; and
(B) by striking ‘‘1998’’ in paragraph (11)
and inserting ‘‘2002’’.
(2) CONFORMING AMENDMENT.—Subsection (i)
of section 309 of such Act is repealed.
(3) EFFECTIVE DATE.—The amendment made
by paragraph (1)(A) shall not apply with respect to
any license or permit for which the Federal Commu-
nications Commission has accepted mutually exclu-
sive applications on or before the date of enactment
of this Act.
(b) COMMISSION OBLIGATION TO MAKE ADDITIONAL
SPECTRUM AVAILABLE BY AUCTION.—
(1) IN
GENERAL.—The Federal Communica-
tions Commission shall complete all actions nec-
essary to permit the assignment, by September 30,
2002, by competitive bidding pursuant to section
309(j) of the Communications Act of 1934 (47
U.S.C. 309(j)) of licenses for the use of bands of
frequencies that—
(A) individually span not less than 25
megahertz, unless a combination of smaller
bands can, notwithstanding the provisions of
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paragraph (7) of such section, reasonably be ex-
pected to produce greater receipts;
(B) in the aggregate span not less than
100 megahertz;
(C) are located below 3 gigahertz; and
(D) have not, as of the date of enactment
of this Act—
(i) been designated by Commission
regulation for assignment pursuant to such
section; or
(ii) been identified by the Secretary of
Commerce pursuant to section 113 of the
National Telecommunications and Infor-
mation Administration Organization Act.
The Commission shall conduct the competitive
bidding for not less than one-half of such aggre-
gate spectrum by September 30, 2000.
(2) CRITERIA FOR REASSIGNMENT.—In making
available bands of frequencies for competitive bid-
ding pursuant to paragraph (1), the Commission
shall—
(A) seek to promote the most efficient use
of the spectrum;
(B) take into account the cost to incum-
bent licensees of relocating existing uses to
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other bands of frequencies or other means of
communication;
(C) take into account the needs of public
safety radio services; and
(D) comply with the requirements of inter-
national agreements concerning spectrum allo-
cations.
(3) NOTIFICATION TO NTIA.—The Commission
shall notify the Secretary of Commerce if—
(A) the Commission is not able to provide
for the effective relocation of incumbent licens-
ees to bands of frequencies that are available to
the Commission for assignment; and
(B) the Commission has identified bands
of frequencies that are—
(i) suitable for the relocation of such
licensees; and
(ii) allocated for Federal Government
use, but that could be reallocated pursuant
to part B of the National Telecommuni-
cations and Information Administration
Organization Act (as amended by this
Act).
(c) IDENTIFICATION AND REALLOCATION OF FRE-
QUENCIES.—The National Telecommunications and Infor-
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mation Administration Organization Act (47 U.S.C. 901
et seq.) is amended—
(1) in section 113, by adding at the end the fol-
lowing new subsection:
‘‘(f) ADDITIONAL REALLOCATION REPORT.—If the
Secretary receives a notice from the Commission pursuant
to section 3001(b)(3) of the Seven-Year Balanced Budget
Reconciliation Act of 1995, the Secretary shall prepare
and submit to the President and the Congress a report
recommending for reallocation for use other than by Fed-
eral Government stations under section 305 of the 1934
Act (47 U.S.C. 305), bands of frequencies that are suit-
able for the uses identified in the Commission’s notice.’’;
(2) in section 114(a)(1), by striking ‘‘(a) or
(d)(1)’’ and inserting ‘‘(a), (d)(1), or (f)’’.
(d) COMPLETION OF C-BLOCK PCS AUCTION.—The
Federal Communications Commission shall commence the
Broadband Personal Communications Services C-Block
auction described in the Commission’s Sixth Report and
Order in DP Docket 93–253 (FCC 93–510, released July
18, 1995) not later than December 4, 1995. The Commis-
sion’s competitive bidding rules governing such auction,
as set forth in such Sixth Report and Order, are hereby
ratified and adopted as a matter of Federal law.
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(e) MODIFICATION OF AUCTION POLICY TO PRE-
SERVE AUCTION VALUE OF SPECTRUM.—The voluntary
negotiation period for relocating fixed microwave licensees
to frequency bands other than those allocated for licensed
emerging technology services (including licensed personal
communications services), established by the Commis-
sion’s Third Report and Order in ET Docket No. 92–9,
shall expire one year after the date of acceptance by the
Commission of applications for such licensed emerging
technology services. The mandatory negotiation period for
relocating fixed microwave licensees to frequency bands
other than those allocated for licensed emerging tech-
nology services (including licensed personal communica-
tions services), established in such Third Report and
Order, shall expire two years after the date of acceptance
by the Commission of applications for such licensed
emerging technology services.
(f) 
IDENTIFICATION
AND
REALLOCATION
OF
AUCTIONABLE
FREQUENCIES.—The 
National 
Tele-
communications and Information Administration Organi-
zation Act (47 U.S.C. 901 et seq.) is amended—
(1) in section 113(b)—
(A) by striking the heading of paragraph
(1) and inserting ‘‘INITIAL REALLOCATION RE-
PORT’’;
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(B) by inserting ‘‘in the first report re-
quired by subsection (a)’’ after ‘‘recommend for
reallocation’’ in paragraph (1);
(C) by inserting ‘‘or (3)’’ after ‘‘paragraph
(1)’’ each place it appears in paragraph (2);
and
(D) by inserting after paragraph (2) the
following new paragraph:
‘‘(3) SECOND REALLOCATION REPORT.—In ac-
cordance with the provisions of this section, the Sec-
retary shall recommend for reallocation in the sec-
ond report required by subsection (a), for use other
than by Federal Government stations under section
305 of the 1934 Act (47 U.S.C. 305), a single fre-
quency band that spans not less than an additional
20 megahertz, that is located below 3 gigahertz, and
that meets the criteria specified in paragraphs (1)
through (5) of subsection (a).’’; and
(2) in section 115—
(A) in subsection (b), by striking ‘‘the re-
port required by section 113(a)’’ and inserting
‘‘the initial reallocation report required by sec-
tion 113(a)’’; and
(B) by adding at the end the following new
subsection:
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‘‘(c) ALLOCATION
AND
ASSIGNMENT
OF
FRE-
QUENCIES IDENTIFIED IN THE SECOND REALLOCATION
REPORT.—With respect to the frequencies made available
for reallocation pursuant to section 113(b)(3), the Com-
mission shall, not later than 1 year after receipt of the
second reallocation report required by such section, pre-
pare, submit to the President and the Congress, and im-
plement, a plan for the allocation and assignment under
the 1934 Act of such frequencies. Such plan shall propose
the immediate allocation and assignment of all such fre-
quencies in accordance with section 309(j).’’.
CHAPTER 2—FEDERAL COMMUNICATIONS
COMMISSION AUTHORIZATION
SEC. 3011. SHORT TITLE.
This chapter may be cited as the ‘‘Federal Commu-
nications Commission Authorization Act of 1995’’.
SEC. 3012. EXTENSION OF AUTHORITY.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section
6 of the Communications Act of 1934 (47 U.S.C. 156)
is amended to read as follows:
‘‘SEC. 6. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated for the ad-
ministration of this Act by the Commission $186,000,000
for fiscal year 1996, together with such sums as may be
necessary for increases resulting from adjustments in sal-
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ary, pay, retirement, other employee benefits required by
law, and other nondiscretionary costs, for fiscal year 1996.
Of the sum appropriated in each fiscal year under this
section, a portion, in an amount determined under sections
8(b) and 9(b), shall be derived from fees authorized by
sections 8 and 9.’’.
(b) TRAVEL AND REIMBURSEMENT PROGRAM.—Sec-
tion 4(g)(2) of the Communications Act of 1934 (47
U.S.C. 154(g)(2)) is amended to read as follows:
‘‘(2) The Commission shall submit to the appropriate
committees of Congress, and publish in the Federal Reg-
ister, semiannual reports specifying the reimbursements
which the Commission has accepted under section 1353
of title 31, United States Code.’’.
(c) COMMUNICATIONS SUPPORT FROM OLDER AMER-
ICANS.—Section 6(a) of the Federal Communications
Commission Authorization Act of 1988 (47 U.S.C. 154
note) is amended by striking ‘‘fiscal years 1992 and 1993’’
and inserting ‘‘fiscal year 1996’’.
SEC. 3013. APPLICATION FEES.
(a) ADJUSTMENT
OF APPLICATION FEE SCHED-
ULE.—Section 8(b) of the Communications Act of 1934
(47 U.S.C. 158(b)) is amended to read as follows:
‘‘(b)(1) For fiscal year 1996 and each fiscal year
thereafter, the Commission shall, by regulation, modify
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the application fees by proportionate increases or de-
creases so as to result in estimated total collections for
the fiscal year equal to—
‘‘(A) $40,000,000; plus
‘‘(B) an additional amount, specified in an ap-
propriation Act for the Commission for that fiscal
year to be collected and credited to such appropria-
tion, not to exceed the amount by which the nec-
essary expenses for the costs described in paragraph
(5) exceeds $40,000,000.
‘‘(2) In making adjustments pursuant to this para-
graph the Commission may round such fees to the nearest
$5.00 in the case of fees under $100, or to the nearest
$20 in the case of fees of $100 or more. The Commission
shall transmit to the Congress notification of any adjust-
ment made pursuant to this paragraph immediately upon
the adoption of such adjustment.
‘‘(3) The Commission is authorized to continue to col-
lect fees at the prior year’s rate until the effective date
of fee adjustments or amendments made pursuant to para-
graphs (1) and (4).
‘‘(4) The Commission shall, by regulation, add, de-
lete, or reclassify services, categories, applications, or
other filings subject to application fees to reflect additions,
deletions, or changes in the nature of its services or au-
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thorization of service processes as a consequence of Com-
mission rulemaking proceedings or changes in law.
‘‘(5) Any modified fees established under paragraph
(4) shall be derived by determining the full-time equivalent
number of employees performing application activities, ad-
justed to take into account other expenses that are reason-
ably related to the cost of processing the application or
filing, including all executive and legal costs incurred by
the Commission in the discharge of these functions, and
other factors that the Commission determines are nec-
essary in the public interest. The Commission shall—
‘‘(A) transmit to the Congress notification of
any proposed modification made pursuant to this
paragraph immediately upon adoption of such pro-
posal; and
‘‘(B) transmit to the Congress notification of
any modification made pursuant to this paragraph
immediately upon adoption of such modification.
‘‘(6) Increases or decreases in application fees made
pursuant to this subsection shall not be subject to judicial
review.’’.
(b) TREATMENT OF ADDITIONAL COLLECTIONS.—
Section 8(e) of such Act is amended to read as follows:
‘‘(e) Of the moneys received from fees authorized
under this section—
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‘‘(1) $40,000,000 shall be deposited in the gen-
eral fund of the Treasury to reimburse the United
States for amounts appropriated for use by the
Commission in carrying out its functions under this
Act; and
‘‘(2) the remainder shall be deposited as an off-
setting collection in, and credited to, the account
providing appropriations to carry out the functions
of the Commission.’’.
(c) SCHEDULE OF APPLICATION FEES FOR PCS.—
The schedule of application fees in section 8(g) of such
Act is amended by adding, at the end of the portion under
the heading ‘‘COMMON CARRIER SERVICES’’, the following
new item:
‘‘23. Personal communications services
‘‘a. Initial or new application .......................................................
230.00
‘‘b. Amendment to pending application .......................................
35.00
‘‘c. Application for assignment or transfer of control .................
230.00
‘‘d. Application for renewal of license ..........................................
35.00
‘‘e. Request for special temporary authority ...............................
200.00
‘‘f. Notification of completion of construction .............................
35.00
‘‘g. Request to combine service areas ..........................................
50.00’’.
(d) VANITY CALL SIGNS.—
(1) LIFETIME LICENSE FEES.—
(A) AMENDMENT.—The schedule of appli-
cation fees in section 8(g) of such Act is further
amended by adding, at the end of the portion
under the heading ‘‘PRIVATE RADIO SERVICES’’,
the following new item:
‘‘11. Amateur vanity call signs ........................................ 150.00’’.
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(B) TREATMENT
OF
RECEIPTS.—Moneys
received from fees established under the amend-
ment made by this subsection shall be deposited
as an offsetting collection in, and credited to,
the account providing appropriations to carry
out the functions of the Commission.
(2) TERMINATION
OF
ANNUAL
REGULATORY
FEES.—The schedule of regulatory fees in section
9(g) of such Act (47 U.S.C. 159(g)) is amended by
striking the following item from the fees applicable
to the Private Radio Bureau:
‘‘Amateur vanity call-signs .........................................................
7’’.
SEC. 3014. REGULATORY FEES.
(a) EXECUTIVE AND LEGAL COSTS.—Section 9(a)(1)
of the Communications Act of 1934 (47 U.S.C. 159(a)(1))
is amended by inserting before the period at the end the
following: ‘‘, and all executive and legal costs incurred by
the Commission in the discharge of these functions’’.
(b) ESTABLISHMENT
AND ADJUSTMENT.—Section
9(b) of such Act is amended—
(1) in paragraph (4)(B), by striking ‘‘90 days’’
and inserting ‘‘45 days’’; and
(2) by adding at the end the following new
paragraph:
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‘‘(5) EFFECTIVE DATE OF ADJUSTMENTS.—The
Commission is authorized to continue to collect fees
at the prior year’s rate until the effective date of fee
adjustments or amendments made pursuant to para-
graph (2) or (3).’’.
(c) REGULATORY FEES FOR SATELLITE TV OPER-
ATIONS.—The schedule of regulatory fees in section 9(g)
of such Act is amended, in the fees applicable to the Mass
Media Bureau, by inserting after each of the items per-
taining to construction permits in the fees applicable to
VHF commercial and UHF commercial TV the following
new item:
‘‘Terrestrial television satellite operations .................................................
500’’.
(d) GOVERNMENTAL ENTITIES USE FOR COMMON
CARRIER PURPOSES.—Section 9(h) of such Act is amend-
ed by adding at the end the following new sentence: ‘‘The
exceptions provided by this subsection for governmental
entities shall not be applicable to any services that are pro-
vided on a commercial basis in competition with another
carrier.’’.
(e) INFORMATION REQUIRED IN CONNECTION WITH
ADJUSTMENT OF REGULATORY FEES.—Title I of such
Act is amended—
(1) in section 9, by striking subsection (i); and
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(2) by inserting after section 9 the following
new section:
‘‘SEC. 10. ACCOUNTING SYSTEM AND ADJUSTMENT INFOR-
MATION.
‘‘(a) ACCOUNTING SYSTEM REQUIRED.—The Com-
mission shall develop accounting systems for the purposes
of making the adjustments authorized by sections 8 and
9. The Commission shall annually prepare and submit to
the Congress an analysis of such systems and shall annu-
ally afford interested persons the opportunity to submit
comments concerning the allocation of the costs of per-
forming the functions described in section 8(a)(5) and
9(a)(1) in making such adjustments in the schedules re-
quired by sections 8 and 9.
‘‘(b) INFORMATION REQUIRED IN CONNECTION WITH
ADJUSTMENT
OF
APPLICATION
AND
REGULATORY
FEES.—
‘‘(1) SCHEDULE OF REQUESTED AMOUNTS.—
No later than May 1 of each calendar year, the
Commission shall prepare and transmit to the Com-
mittees of Congress responsible for the Commis-
sion’s authorization and appropriations a detailed
schedule of the amounts requested by the Presi-
dent’s budget to be appropriated for the ensuing fis-
cal year for the activities described in sections
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8(a)(5) and 9(a)(1), allocated by bureaus, divisions,
and offices of the Commission.
‘‘(2) EXPLANATORY STATEMENT.—If the Com-
mission anticipates increases in the application fees
or regulatory fees applicable to any applicant, li-
censee, or unit subject to payment of fees, the Com-
mission shall submit to the Congress by May 1 of
such calendar year a statement explaining the rela-
tionship between any such increases and either (A)
increases in the amounts requested to be appro-
priated for Commission activities in connection with
such applicants, licensees, or units subject to pay-
ment of fees, or (B) additional activities to be per-
formed with respect to such applicants, licensees, or
units.
‘‘(3) DEFINITION.—For purposes of this sub-
section, the term ‘amount requested by the Presi-
dent’s budget’ shall include any adjustments to such
requests that are made by May 1 of such calendar
year. If any such adjustment is made after May 1,
the Commission shall provide such Committees with
updated schedules and statements containing the in-
formation required by this subsection within 10 days
after the date of any such adjustment.’’.
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SEC. 3015. INSPECTION OF SHIP RADIO STATIONS.
(a) AUTHORITY TO DESIGNATE ENTITIES TO IN-
SPECT.—Section 4(f)(3) of the Communications Act of
1934 (47 U.S.C. 154(f)(3)) is amended by inserting before
the period at the end the following: ‘‘: And provided fur-
ther, That, in the alternative, an entity designated by the
Commission may make the inspections referred to in this
paragraph’’.
(b) CONDUCT OF INSPECTIONS.—Section 362(b) of
such Act (47 U.S.C. 362(b)) is amended to read as
follows:
‘‘(b) Every ship of the United States that is subject
to this part shall have the equipment and apparatus pre-
scribed therein inspected at least once each year by the
Commission or an entity designated by the Commission.
If, after such inspection, the Commission is satisfied that
all relevant provisions of this Act and the station license
have been complied with, the fact shall be certified to on
the station license by the Commission. The Commission
shall make such additional inspections at frequent inter-
vals as the Commission determines may be necessary to
ensure compliance with the requirements of this Act. The
Commission may, upon a finding that the public interest
could be served thereby—
‘‘(1) waive the annual inspection required under
this section for a period of up to 90 days for the sole
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purpose of enabling a vessel to complete its voyage
and proceed to a port in the United States where an
inspection can be held; or
‘‘(2) waive the annual inspection required under
this section for a vessel that is in compliance with
the radio provisions of the Safety Convention and
that is operating solely in waters beyond the juris-
diction of the United States, provided that such in-
spection shall be performed within 30 days of such
vessel’s return to the United States.’’.
(c) INSPECTION BY OTHER ENTITIES.—Section 385
of such Act (47 U.S.C. 385) is amended by inserting ‘‘or
an entity designated by the Commission’’ after ‘‘The Com-
mission’’.
SEC. 3016. EXPEDITED ITFS PROCESSING.
Section 5(c)(1) of the Communications Act of 1934
(47 U.S.C. 155(c)(1)) is amended by striking the last sen-
tence and inserting the following: ‘‘Except for cases involv-
ing the authorization of service in the Instructional Tele-
vision Fixed Service, or as otherwise provided in this Act,
nothing in this paragraph shall authorize the Commission
to provide for the conduct, by any person or persons other
than persons referred to in paragraph (2) or (3) of section
556(b) of title 5, United States Code, of any hearing to
which such section applies.’’.
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SEC. 3017. TARIFF REJECTION AUTHORITY.
Section 203(d) of the Communications Act of 1934
(47 U.S.C. 203(d)) is amended by inserting after the first
sentence the following new sentences: ‘‘The Commission
may, after affording interested parties an opportunity to
comment, reject a proposed tariff filing in whole or in
part, if the filing or any part thereof is patently unlawful.
In evaluating whether a proposed tariff filing is patently
unlawful, the Commission may consider additional infor-
mation filed by the carrier or any interested party and
shall presume the facts alleged by the carrier to be true.’’.
SEC. 3018. REFUND AUTHORITY.
Title II of the Communications Act of 1934 (47
U.S.C. 201 et seq.) is amended by adding at the end there-
of the following new section:
‘‘SEC. 230. REFUND AUTHORITY.
‘‘In addition to any other provision of this Act under
which the Commission may order refunds, the Commission
may require by order the refund of such portion of any
charge by any carrier or carriers as results from a viola-
tion of section 220 (a), (b), or (d) or 221 (c) or (d) or
of any of the rules promulgated pursuant to such sections
or pursuant to section 215, 218, or 219. Such refunds
shall be ordered only to the extent that the Commission
or a court finds that such violation resulted in unlawful
charges and shall be made to such persons or classes of
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persons as the Commission determines reasonably rep-
resent the persons from whom amounts were improperly
received by reason of such violation. No refunds shall be
required under this section unless—
‘‘(1) the Commission issues an order advising
the carrier of its potential refund liability and pro-
vides the carrier with an opportunity to file written
comments as to why refunds should not be required;
and
‘‘(2) such order is issued not later than 5 years
after the date the charge was paid.
In the case of a continuing violation, a violation shall be
considered to occur on each date that the violation is re-
peated.’’.
SEC. 3019. LICENSING OF AVIATION AND MARITIME SERV-
ICES BY RULE.
Section 307(e) of the Communications Act of 1934
(47 U.S.C. 307(e)) is amended to read as follows:
‘‘(e)(1) Notwithstanding any license requirement es-
tablished in this Act, if the Commission determines that
such authorization serves the public interest, convenience,
and necessity, the Commission may by rule authorize the
operation of radio stations without individual licenses in
the following radio services: (A) the aviation radio service
for aircraft stations operated on domestic flights when
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such aircraft are not otherwise required to carry a radio
station; and (B) the maritime radio service for ship sta-
tions navigated on domestic voyages when such ships are
not otherwise required to carry a radio station.
‘‘(2) Any radio station operator who is authorized by
the Commission to operate without an individual license
shall comply with all other provisions of this Act and with
rules prescribed by the Commission under this Act.
‘‘(3) For purposes of this subsection, the terms ‘air-
craft station’ and ‘ship station’ shall have the meanings
given them by the Commission by rule.’’.
SEC. 3020. AUCTION TECHNICAL AMENDMENTS.
(a) FUNDING AVAILABILITY.—Section 309(j)(8)(B)
of the Communications Act of 1934 (47 U.S.C.
309(j)(8)(B)) is amended by adding at the end the follow-
ing new sentence: ‘‘Such offsetting collections are author-
ized to remain available until expended.’’.
(b) ESCROW
OF DEPOSITS.—Section 309(j)(8) of
such Act is further amended by adding at the end the fol-
lowing new subparagraph:
‘‘(C) ESCROW OF DEPOSIT.—The Commis-
sion is authorized, based on the competitive bid-
ding methodology selected, to provide for the
deposit of moneys for bids in an interest-bear-
ing account until such time as the Commission
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accepts a deposit from the high bidder. All in-
terest earned on bid moneys received from the
winning bidder shall be deposited into the gen-
eral fund of the Treasury. All interest earned
on bid moneys deposited from unsuccessful bid-
ders, less any applicable fees and penalties,
shall be paid to those bidders.’’.
SEC. 3021. FORFEITURES FOR VIOLATIONS IMPERILING
SAFETY OF LIFE.
(a) ADMINISTRATIVE SANCTIONS.—Section 312(a) of
the Communications Act of 1934 (47 U.S.C. 312(a)) is
amended—
(1) by striking ‘‘or’’ at the end of paragraph
(6);
(2) by striking the period at the end of para-
graph (7) and inserting ‘‘; or’’; and
(3) by adding at the end the following new
paragraph:
‘‘(8) for failure to comply with any requirement
of this Act or the Commission’s rules that imperils
the safety of life.’’.
(b) FORFEITURES.—Section 503(b)(1) of such Act
(47 U.S.C. 503(b)(1)) is amended—
(1) by striking ‘‘or’’ at the end of subparagraph
(C);
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(2) by striking the semicolon at the end of sub-
paragraph (D) and inserting ‘‘; or’’; and
(3) by adding after subparagraph (D) the fol-
lowing new subparagraph:
‘‘(E) failed to comply with any requirement of
this Act or the Commission’s rules that imperils the
safety of life;’’.
SEC. 3022. USE OF EXPERTS AND CONSULTANTS.
Section 4(f)(1) of the Communications Act of 1934
(47 U.S.C. 154) is amended by adding at the end thereof
the following: ‘‘The Commission may also procure the
services of experts and consultants in accordance with sec-
tion 3109 of title 5, United States Code, relating to ap-
pointments in the Federal Service, at rates of compensa-
tion for individuals not to exceed the daily rate equivalent
to the maximum rate payable for senior-level positions
under section 5276 of title 5, United States Code.’’.
SEC. 3023. STATUTE OF LIMITATIONS FOR FORFEITURE
PROCEEDINGS AGAINST COMMON CARRIERS.
Section 503(b)(6) of the Communications Act of
1934 (47 U.S.C. 503(b)(6)) is amended—
(1) by striking ‘‘or’’ at the end of subparagraph
(A);
(2) by inserting ‘‘and is not a common carrier’’
after ‘‘title III of this Act’’ in subparagraph (B);
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(3) by redesignating subparagraph (B) as sub-
paragraph (C); and
(4) by inserting after subparagraph (A) the fol-
lowing new subparagraph:
‘‘(B) such person is a common carrier and the
required notice of apparent liability is issued more
than 5 years after the date the violation charged oc-
curred; or’’.
SEC. 3024. UTILIZATION OF FM BAND FOR ASSISTIVE DE-
VICES FOR HEARING IMPAIRED INDIVID-
UALS.
Within 6 months after the date of enactment of this
Act, the Federal Communications Commission shall report
to the Congress on the existing and future use of the FM
band to facilitate the use of auditory assistive devices for
individuals with hearing impairments. In preparing such
report, the Commission shall consider—
(1) the potential for utilizing FM band auditory
assistive devices to comply with the American with
Disabilities Act;
(2) the impact on such compliance of the vul-
nerability of such devices to harmful interference
from radio licensees; and
(3) alternative frequency allocations that could
facilitate such compliance.
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SEC. 3025. TECHNICAL AMENDMENT.
Section 302(d)(1) of the Communications Act of
1934 (47 U.S.C. 309(d)(1)) is amended—
(1) in subparagraph (A), by striking ‘‘allocated
to the domestic cellular radio telecommunications
service’’ and inserting ‘‘utilized to provide commer-
cial mobile service (as defined in section 332(d))’’;
and
(2) in subparagraph (C), by striking ‘‘cellular’’
and inserting ‘‘commercial mobile service’’.
Subtitle B—Nuclear Regulatory
Commission Annual Charge
SEC. 3031. NUCLEAR REGULATORY COMMISSION ANNUAL
CHARGES.
Section 6101(a)(3) of the Omnibus Budget Reconcili-
ation Act of 1990 (42 U.S.C. 2214(a)(3)) is amended by
striking ‘‘September 30, 1998’’ and inserting ‘‘September
30, 2002’’.
Subtitle C—United States
Enrichment Corporation
SEC. 3035. SHORT TITLE AND REFERENCE.
(a) SHORT TITLE.—This subtitle may be cited as the
‘‘USEC Privatization Act’’.
(b) REFERENCE.—Except as otherwise expressly pro-
vided, whenever in this subtitle an amendment or repeal
is expressed in terms of an amendment to, or repeal of,
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a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the
Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.).
SEC. 3036. PRODUCTION FACILITY.
Paragraph v. of section 11 (42 U.S.C. 2014 v.) is
amended by striking ‘‘or the construction and operation
of a uranium enrichment production facility using Atomic
Vapor Laser Isotope Separation technology’’.
SEC. 3037. DEFINITIONS.
Section 1201 (42 U.S.C. 2297) is amended—
(1) in paragraph (4), by inserting before the pe-
riod the following: ‘‘and any successor corporation
established through privatization of the Corpora-
tion’’;
(2) by redesignating paragraphs (10) through
(13) as paragraphs (14) through (17), respectively,
and by inserting after paragraph (9) the following
new paragraphs:
‘‘(10) The term ‘low-level radioactive waste’ has
the meaning given such term in section 102(9) of
the Low-Level Radioactive Waste Policy Amend-
ments Act of 1985 (42 U.S.C. 2021b(9)).
‘‘(11) The term ‘mixed waste’ has the meaning
given such term in section 1004(41) of the Solid
Waste Disposal Act (42 U.S.C. 6903(41)).
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‘‘(12) The term ‘privatization’ means the trans-
fer of ownership of the Corporation to private inves-
tors pursuant to chapter 25.
‘‘(13) The term ‘privatization date’ means the
date on which 100 percent of ownership of the Cor-
poration has been transferred to private investors.’’;
(3) by inserting after paragraph (17) (as redes-
ignated) the following new paragraph:
‘‘(18) The term ‘transition date’ means July 1,
1993.’’;
(4) by redesignating the unredesignated para-
graph (14) as paragraph (19); and
(5) by adding the following new paragraphs
after paragraph (19):
‘‘(20) The term ‘gaseous diffusion plants’
means the Paducah Gaseous Diffusion Plant at Pa-
ducah, Kentucky and the Portsmouth Gaseous Dif-
fusion Plant at Piketon, Ohio.
‘‘(21) The term ‘private corporation’ means the
corporation established under section 1503.
‘‘(22) The term ‘Russian HEU agreement’
means the Agreement Between the Government of
the United States of America and the Government
of the Russian Federation Concerning the Disposi-
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tion of Highly Enriched Uranium Extracted from
Nuclear Weapons, dated February 18, 1993.
‘‘(23) The term ‘Suspension Agreement’ means
the Agreement to Suspend the Antidumping Inves-
tigation on Uranium from the Russian Federation,
as amended.’’.
SEC. 3038. EMPLOYEES OF THE CORPORATION.
(a) PARAGRAPHS (1) AND (2).—Section 1305(e) (42
U.S.C. 2297b–4(e)) is amended by striking paragraphs
(1) and (2) and inserting in thereof the following:
‘‘(1) IN GENERAL.—
‘‘(A) Privatization shall not diminish the
accrued, vested pension benefits of employees of
the Corporation’s operating contractor at the
two gaseous diffusion plants.
‘‘(B) In the event that the private corpora-
tion terminates or changes the contractor at ei-
ther or both of the gaseous diffusion plants, the
plan sponsor or other appropriate fiduciary of
the pension plan covering employees of the
prior operating contractor shall arrange for the
transfer of all plan assets and liabilities relating
to accrued pension benefits of such plan’s par-
ticipants and beneficiaries from such plan to a
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pension plan sponsored by the new contractor
or the private corporation, as the case may be.
‘‘(C) Any employer (including the private
corporation or any contractor of the private cor-
poration) at a gaseous diffusion plant shall
abide by the terms of any unexpired collective
bargaining agreement covering employees in
bargaining units at the plant and in effect on
the privatization date until the expiration of the
agreement.
‘‘(D) In the event of a plant closing or
mass layoff (as such terms are defined in sec-
tion 2101(a) (2) and (3) of title 29, United
States Code) at either of the gaseous diffusion
plants, the Secretary of Energy shall treat such
plant as a Department of Energy defense nu-
clear facility and any person employed by an
operating contractor on the privatization date
at either plant as a Department of Energy em-
ployee for purposes of sections 3161 through
3163 of the National Defense Authorization Act
for Fiscal Year 1993 (42 U.S.C. 7274h–7274j).
‘‘(E) The Department of Energy and the
private corporation shall continue to fund post-
retirement health benefits for persons employed
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by an operating contractor at either of the gas-
eous diffusion plants at substantially the same
level of coverage as eligible retirees are entitled
to receive on the privatization date, consistent
with clauses (i) through (iii), except that the
Department of Energy, the private corporations
and the operating contractor shall have the
right to implement cost-saving measures, in-
cluding (but not limited to) preferred provider
organizations, managed care programs, manda-
tory second opinions before surgery or other
medical procedures, and mandatory use of ge-
neric drugs, that do not materially diminish the
overall quality of the medical care provided—
‘‘(i) persons eligible for this coverage
shall be limited to persons who retired
from active employment at one of the gase-
ous diffusion plants as of the privatization
date, as vested participants in a pension
plan maintained either by the Corpora-
tion’s operating contractor or by a contrac-
tor employed prior to July 1, 1993, by the
Department of Energy to operate either of
the gaseous diffusion plants and persons
who, as of the privatization date, are em-
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ployed by the Corporation’s operating con-
tractor and are vested participants in a
pension plan maintained either by the Cor-
poration’s operating contractor or by a
contractor employed prior to July 1, 1993,
by the Department of Energy to operate
either of the gaseous diffusion plants;
‘‘(ii) for persons who retired from em-
ployment with an operating contractor
prior to July 1, 1993, the Department of
Energy shall fund the entire cost of post-
retirement health benefits; and
‘‘(iii) for persons who retire from em-
ployment with an operating contractor
after July 1, 1993, the Department of En-
ergy and the private corporation shall fund
the cost of postretirement health benefits
in proportion to the retired persons’ years
and months of service at a gaseous diffu-
sion plant under their respective manage-
ment.’’.
(b) PARAGRAPH
(4).—Paragraph (4) of section
1305(e) (42 U.S.C. 2297b–4(e)(4)) is amended—
(1) by striking ‘‘AND DETAILEES’’ in the head-
ing;
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(2) by striking the first sentence;
(3) in the second sentence, by inserting ‘‘from
other Federal employment’’ after ‘‘transfer to the
Corporation’’; and
(4) by striking the last sentence.
SEC. 3039. MARKETING AND CONTRACTING AUTHORITY.
(a) MARKETING AUTHORITY.—Section 1401(a) (42
U.S.C. 2297c(a)) is amended effective on the privatization
date (as defined in section 1201(13) of the Atomic Energy
Act of 1954)—
(1) by amending the subsection heading to read
‘‘MARKETING AUTHORITY.—’’; and
(2) by striking the first sentence.
(b) TRANSFER OF CONTRACTS.—Section 1401(b) (42
U.S.C. 2297c(b)) is amended—
(1) in paragraph (2)(B), by adding at the end
the following: ‘‘The privatization of the Corporation
shall not affect the terms of, or the rights or obliga-
tions of the parties to, any such power purchase con-
tract.’’; and
(2) by adding at the end the following:
‘‘(3) EFFECT OF TRANSFER.—
‘‘(A) As a result of the transfer pursuant
to paragraph (1), all rights, privileges, and ben-
efits under such contracts, agreements, and
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obligations arising under such contract, agree-
ment, or lease prior to such time.’’.
(c) PRICING.—Section 1402 (42 U.S.C. 2297c–1) is
amended to read as follows:
‘‘SEC. 1402. PRICING.
‘‘The Corporation shall establish prices for its prod-
ucts, materials, and services provided to customers on a
basis that will allow it to attain the normal business objec-
tives of a profitmaking corporation.’’.
(d) LEASING OF GASEOUS DIFFUSION FACILITIES OF
DEPARTMENT.—Effective on the privatization date (as de-
fined in section 1201(13) of the Atomic Energy Act of
1954), section 1403 (42 U.S.C. 2297c–2) is amended by
adding at the end the following:
‘‘(h) LOW-LEVEL RADIOACTIVE WASTE AND MIXED
WASTE.—
‘‘(1) RESPONSIBILITY
OF
THE
DEPARTMENT;
COSTS.—
‘‘(A) With respect to low-level radioactive
waste and mixed waste generated by the Cor-
poration as a result of the operation of the fa-
cilities and related property leased by the Cor-
poration pursuant to subsection (a) or as a re-
sult of treatment of such wastes at a location
other than the facilities and related property
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leased by the Corporation pursuant to sub-
section (a) the Department, at the request of
the Corporation, shall—
‘‘(i) accept for treatment or disposal
of all such wastes for which treatment or
disposal technologies and capacities exist,
whether within the Department or else-
where; and
‘‘(ii) accept for storage (or ultimately
treatment or disposal) all such wastes for
which treatment and disposal technologies
or capacities do not exist, pending develop-
ment of such technologies or availability of
such capacities for such wastes.
‘‘(B) All low-level wastes and mixed wastes
that the Department accepts for treatment,
storage, or disposal pursuant to subparagraph
(A) shall, for the purpose of any permits, li-
censes, authorizations, agreements, or orders
involving the Department and other Federal
agencies or State or local governments, be
deemed to be generated by the Department and
the Department shall handle such wastes in ac-
cordance with any such permits, licenses, au-
thorizations, agreements, or orders. The De-
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partment shall obtain any additional permits, li-
censes, or authorizations necessary to handle
such wastes, shall amend any such agreements
or orders as necessary to handle such wastes,
and shall handle such wastes in accordance
therewith.
‘‘(C) The Corporation shall reimburse the
Department for the treatment, storage, or dis-
posal of low-level radioactive waste or mixed
waste pursuant to subparagraph (A) in an
amount equal to the Department’s costs but in
no event greater than an amount equal to that
which would be charged by commercial, State,
regional, or interstate compact entities for
treatment, storage, or disposal of such waste.
‘‘(2) AGREEMENTS
WITH
OTHER
PERSONS.—
The Corporation may also enter into agreements for
the treatment, storage, or disposal of low-level radio-
active waste and mixed waste generated by the Cor-
poration as a result of the operation of the facilities
and related property leased by the Corporation pur-
suant to subsection (a) with any person other than
the Department that is authorized by applicable laws
and regulations to treat, store, or dispose of such
wastes.’’.
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(e) LIABILITIES.—
(1) Subsection (a) of section 1406 (42 U.S.C.
2297c–5(a)) is amended—
(A) by inserting ‘‘AND PRIVATIZATION’’
after ‘‘TRANSITION’’ in the heading; and
(B) by adding at the end the following:
‘‘As of the privatization date, all liabilities at-
tributable to the operation of the Corporation
from the transition date to the privatization
date shall be direct liabilities of the United
States.’’.
(2) Subsection (b) of section 1406 (42 U.S.C.
2297c–5(b)) is amended—
(A) by inserting ‘‘AND PRIVATIZATION’’
after ‘‘TRANSITION’’ in the heading; and
(B) by adding at the end the following:
‘‘As of the privatization date, any judgment en-
tered against the Corporation imposing liability
arising out of the operation of the Corporation
from the transition date to the privatization
date shall be considered a judgment against the
United States.’’.
(3) Subsection (d) of section 1406 (42 U.S.C.
2297c–5(d)) is amended—
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(A) by inserting ‘‘AND PRIVATIZATION’’
after ‘‘TRANSITION’’ in the heading; and
(B) by striking ‘‘the transition date’’ and
inserting ‘‘the privatization date (or, in the
event the privatization date does not occur, the
transition date)’’.
(f) TRANSFER OF URANIUM.—
(1) AMENDMENT.—Title II (42 U.S.C. 2297 et
seq.) is amended by redesignating section 1408 as
section 1409 and by inserting after section 1407 the
following:
‘‘SEC. 1408. URANIUM TRANSFERS AND SALES.
‘‘(a) TRANSFERS AND SALES BY THE SECRETARY.—
The Secretary shall not provide enrichment services or
transfer or sell any uranium (including natural or enriched
uranium in any form) to any person except as provided
in this section.
‘‘(b) RUSSIAN HEU.—
‘‘(1) TRANFERS.—Prior to December 31, 1996,
the United States Executive Agent under the Rus-
sian HEU Agreement shall transfer to the Secretary
without charge an amount of uranium hexafluoride
equivalent to the natural uranium component of low-
enriched uranium derived from at least 18 metric
tons of highly enriched uranium purchased from the
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Russian Executive Agent under the Russian HEU
Agreement. 
The 
quantity 
of 
such 
uranium
hexafluoride delivered to the Secretary shall be
based on a tails assay of 0.30 U235. Title to ura-
nium hexafluoride delivered to the Secretary pursu-
ant to this paragraph shall transfer to the Secretary
upon delivery of such material to the Secretary. Ura-
nium hexafluoride delivered to the Secretary pursu-
ant to this paragraph shall be deemed to be of Rus-
sian origin.
‘‘(2) CONTRACTS.—Within 7 years of the date
of enactment of the USEC Privatization Act, the
Secretary shall enter into contracts to sell the ura-
nium hexafluoride transferred to the Secretary pur-
suant to paragraph (1). Such uranium hexafluoride
shall be sold—
‘‘(A) at any time for use in the United
States for the purpose of overfeeding;
‘‘(B) at any time for use outside the
United States; and
‘‘(C) for consumption by end users in the
United States not prior to January 1, 2002, in
volumes not to exceed 3 million pounds U3O8
equivalent per year.
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subsection shall restrict the sale of the conversion
component of such uranium hexafluoride.
‘‘(4) INDEPENDENT PARTY.—In the event that
the Russian Executive Agent does not request deliv-
ery of the natural uranium component of any low-
enriched uranium, as contemplated in paragraph (3),
within 90 days of the date such low-enriched ura-
nium is delivered to the United States Executive
Agent, then the United States Executive Agent shall
engage an independent party through a competitive
selection process to auction an amount of uranium
hexafluoride equivalent to the natural uranium com-
ponent of such low-enriched uranium. Such inde-
pendent party shall sell such uranium hexafluoride
to any person or entity consistent with the limita-
tions set forth in this subsection. The independent
entity shall pay to the Russian Executive Agent the
proceeds of any such auction less all transaction and
other administrative costs. The quantity of such ura-
nium hexafluoride auctioned shall be based on a tails
assay of 0.30 U235. Title to uranium hexafluoride
auctioned pursuant to this paragraph shall transfer
to the buyer of such material upon delivery of such
material to the buyer. Uranium hexafluoride auc-
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tioned pursuant to this paragraph shall be deemed
to be of Russian origin.
‘‘(5) CONSUMPTION.—Except as provided in
paragraphs (6) and (7), uranium hexafluoride deliv-
ered to the Secretary under paragraph (1) or the
Russian Executive Agent under paragraph (3) or
auctioned pursuant to paragraph (4), may not be de-
livered for consumption by end users in the United
States prior to January 1, 1998 and thereafter only
in accordance with the following schedule:
Annual Maximum Deliveries to
End Users
‘‘Year
(millions lbs. U3O8 equivalent)
1998– .............................................
2 million lbs. U3O8 equivalent
1999– .............................................
4 million lbs. U3O8 equivalent
2000– .............................................
6 million lbs. U3O8 equivalent
2001– .............................................
8 million lbs. U3O8 equivalent
2002– .............................................
10 million lbs. U3O8 equivalent
2003– .............................................
12 million lbs. U3O8 equivalent
2004– .............................................
14 million lbs. U3O8 equivalent
2005 and each year thereafter ......
16 million lbs. U3O8 equivalent
‘‘(6) MATCHED SALES.—Uranium hexafluoride
delivered to the Secretary under paragraph (1) or
the Russian Executive Agent under paragraph (3) or
auctioned pursuant to paragraph (4) may be sold at
any time as Russian-origin natural uranium in a
sale with an equal portion of U.S.-origin natural
uranium pursuant to the Suspension Agreement and
in such case shall not be counted against the annual
maximum deliveries set forth in paragraph (5).
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‘‘(7) OVERFEEDING.—Uranium hexafluoride de-
livered to the Secretary under paragraph (1) or the
Russian Executive Agent under paragraph (3) or
auctioned pursuant to paragraph (4) may be sold at
any time for use in the United States for the pur-
pose of overfeeding in the operations of enrichment
facilities.
‘‘(c) TRANSFERS TO THE CORPORATION.—(1) Before
the privatization date, the Secretary may transfer to the
Corporation without charge the low enriched uranium
from up to 50 metric tons of highly enriched uranium and
up to 7,000 metric tons of natural uranium, subject to
the restrictions in subsection (b)(2).
‘‘(2) The Corporation (or its successor) may not de-
liver for commercial end use—
‘‘(A) any of the natural uranium transferred
under this subsection before January 1, 1998;
‘‘(B) more than 10 percent of the natural ura-
nium (by uranium hexafluoride equivalent content)
transferred under this subsection or more than 4
million pounds, whichever is less, in any calendar
year after 1997; or
‘‘(C) more than 800,000 separative work units
of low-enriched uranium transferred under this sub-
section in any calendar year.
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‘‘(d) INVENTORY SALES.—(1) In addition to the
transfers authorized under subsection (b), the Secretary
may, from time to time, sell natural and low-enriched ura-
nium (including low-enriched uranium derived from highly
enriched uranium) from the Department of Energy s
stockpile.
‘‘(2) Except as provided in subsections (b) and (d),
no sale or transfer of natural or low-enriched uranium
shall be made unless—
‘‘(A) the President determines that the material
is not necessary to national security needs,
‘‘(B) the Secretary determines that the sale of
the material will not have an adverse impact on the
domestic uranium mining and enrichment industries,
taking into account the sales of uranium under the
Russian HEU Agreement and the Suspension Agree-
ment, and
‘‘(C) the price paid to the Secretary will not be
less than the fair market value of the material.
‘‘(e) GOVERNMENT TRANSFERS.—Notwithstanding
subsection (c), the Secretary may transfer or sell low-en-
riched uranium—
‘‘(1) to a federal agency if the material is trans-
ferred for the use of the receiving agency without
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any resale or transfer to another entity and the ma-
terial does not meet commercial specifications;
‘‘(2) to any person for national security pur-
poses, as determined by the Secretary; or
‘‘(3) to any state or local agency or nonprofit,
charitable, or educational institution for use other
than the generation of electricity for commercial
use.’’.
(2) CONFORMING AMENDMENT.—The table of
contents for chapter 24 is amended by redesignating
the item relating to section 1408 as the item relat-
ing to section 1409 and by inserting after the item
for section 1407 the following:
‘‘Sec. 1408. Uranium transfers and sales.’’.
SEC. 3040. PRIVATIZATION OF THE CORPORATION.
(a) ESTABLISHMENT OF PRIVATE CORPORATION.—
Chapter 25 (42 U.S.C. 2297d et seq.) is amended by add-
ing at the end the following new section:
‘‘SEC. 1503. ESTABLISHMENT OF PRIVATE CORPORATION.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—In order to facilitate pri-
vatization, the Corporation may provide for the es-
tablishment of a private corporation organized under
the laws of any of the several States. Such corpora-
tion shall have among its purposes the following:
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‘‘(A) To help maintain a reliable and eco-
nomical domestic source of uranium enrichment
services.
‘‘(B) To undertake any and all activities as
provided in its corporate charter.
‘‘(2) AUTHORITIES.—The corporation estab-
lished pursuant to paragraph (1) shall be authorized
to—
‘‘(A) enrich uranium, provide for uranium
to be enriched by others, or acquire enriched
uranium (including low-enriched uranium de-
rived from highly enriched uranium);
‘‘(B) conduct, or provide for conducting,
those research and development activities relat-
ed to uranium enrichment and related processes
and activities the corporation considers nec-
essary or advisable to maintain itself as a com-
mercial enterprise operating on a profitable and
efficient basis;
‘‘(C) enter into transactions regarding ura-
nium, enriched uranium, or depleted uranium
with—
‘‘(i) persons licensed under section 53,
63, 103, or 104 in accordance with the li-
censes held by those persons;
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‘‘(ii) persons in accordance with, and
within the period of, an agreement for co-
operation arranged under section 123; or
‘‘(iii) persons otherwise authorized by
law to enter into such transactions;
‘‘(D) enter into contracts with persons li-
censed under section 53, 63, 103, or 104, for
as long as the corporation considers necessary
or desirable, to provide uranium or uranium en-
richment and related services;
‘‘(E) enter into contracts to provide ura-
nium or uranium enrichment and related serv-
ices in accordance with, and within the period
of, an agreement for cooperation arranged
under section 123 or as otherwise authorized by
law; and
‘‘(F) take any and all such other actions as
are permitted by the law of the jurisdiction of
incorporation of the corporation.
‘‘(3) TRANSFER OF ASSETS.—For purposes of
implementing the privatization, the Corporation may
transfer some or all of its assets and obligations to
the corporation established pursuant to this section,
including—
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‘‘(A) all of the Corporation’s assets and
obligations, including all of the Corporation’s
rights, duties, and obligations accruing subse-
quent to the privatization date under contracts,
agreements, and leases entered into by the Cor-
poration before the privatization date, including
all uranium enrichment contracts and power
purchase contracts;
‘‘(B) all funds in accounts of the Corpora-
tion held by the Treasury or on deposit with
any bank or other financial institution;
‘‘(C) all of the Corporation’s rights, duties,
and obligations, accruing subsequent to the pri-
vatization date, under the power purchase con-
tracts covered by section 1401(b)(2)(B);
‘‘(D) all of the Corporation’s rights, duties,
and obligations, accruing subsequent to the pri-
vatization date, under the lease agreement be-
tween the Department and the Corporation exe-
cuted by the Department and the Corporation
pursuant to section 1403; and
‘‘(E) all of the Corporation’s records, in-
cluding all of the papers and other documentary
materials, regardless of physical form or char-
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acteristics, made or received by the Corpora-
tion.
‘‘(4) MERGER OR CONSOLIDATION.—For pur-
poses of implementing the privatization, the Cor-
poration may merge or consolidate with the corpora-
tion established pursuant to subsection (a)(1) if such
action is contemplated by the plan for privatization
approved by the President under section 1502(b).
The Board shall have exclusive authority to approve
such merger or consolidation and to take all further
actions necessary to consummate such merger or
consolidation, and no action by or in respect of
shareholders shall be required. The merger or con-
solidation shall be effected in accordance with, and
have the effects of a merger or consolidation under,
the laws of the jurisdiction of incorporation of the
surviving corporation, and all rights and benefits
provided under this title to the Corporation shall
apply to the surviving corporation as if it were the
Corporation.
‘‘(b) OSHA REQUIREMENTS.—For purposes of the
regulation of radiological and nonradiological hazards
under the Occupational Safety and Health Act of 1970,
the corporation established pursuant to subsection (a)(1)
shall be treated in the same manner as other employers
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licensed by the Nuclear Regulatory Commission. Any
interagency agreement entered into between the Nuclear
Regulatory Commission and the Occupational Safety and
Health Administration governing the scope of their respec-
tive regulatory authorities shall apply to the corporation
as if the corporation were a Nuclear Regulatory Commis-
sion licensee.
‘‘(c) LEGAL STATUS OF PRIVATE CORPORATION.—
‘‘(1) NOT FEDERAL AGENCY.—The Corporation
established pursuant to subsection (a)(1) shall not
be an agency, instrumentality, or establishment of
the United States Government and shall not be a
Government corporation or Government-controlled
corporation.
‘‘(2) 
NO
RECOURSE
AGAINST
UNITED
STATES.—Obligations of the Corporation established
pursuant to subsection (a)(1) shall not be obliga-
tions of, or guaranteed as to principal or interest by,
the Corporation or the United States, and the obli-
gations shall so plainly state.
‘‘(3) NO CLAIMS COURT JURISDICTION.—No ac-
tion under section 1491 of title 28, United States
Code, shall be allowable against the United States
based on the actions of the Corporation established
pursuant to subsection (a)(1).
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‘‘(d) BOARD OF DIRECTOR’S ELECTION AFTER PUB-
LIC OFFERING.—In the event that the privatization is im-
plemented by means of a public offering, an election of
the members of the board of directors of the Corporation
by the shareholders shall be conducted before the end of
the 1-year period beginning the date shares are first of-
fered to the public pursuant to such public offering.
‘‘(e) ADEQUATE PROCEEDS.—The Secretary of En-
ergy shall not allow the privatization of the Corporation
unless before the sale date the Secretary determines that
the estimated sum of the gross proceeds from the sale of
the Corporation will be an adequate amount.’’.
(b) OWNERSHIP
LIMITATIONS.—Chapter 25 (as
amended by subsection (a)) is amended by adding at the
end the following new section:
‘‘SEC. 1504. OWNERSHIP LIMITATIONS.
‘‘(a) SECURITIES LIMITATION.—In the event that the
privatization is implemented by means of a public offering,
during a period of 3 years beginning on the privatization
date, no person, directly or indirectly, may acquire or hold
securities representing more than 10 percent of the total
votes of all outstanding voting securities of the Corpora-
tion.
‘‘(b) APPLICATION.—Subsection (a) shall not apply—
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‘‘(1) to any employee stock ownership plan of
the Corporation,
‘‘(2) to underwriting syndicates holding shares
for resale, or
‘‘(3) in the case of shares beneficially held for
others, to commercial banks, broker-dealers, clearing
corporations, or other nominees.
‘‘(c) ACQUISITIONS.—No director, officer, or em-
ployee of the Corporation may acquire any securities, or
any right to acquire securities, of the Corporation—
‘‘(1) in the public offering of securities of the
Corporation in the implementation of the privatiza-
tion,
‘‘(2) pursuant to any agreement, arrangement,
or understanding entered into before the privatiza-
tion date, or
‘‘(3) before the election of directors of the Cor-
poration under section 1503(d) on any terms more
favorable than those offered to the general public.’’.
(c) EXEMPTION FROM LIABILITY.—Chapter 25 (as
amended by subsection (b)) is amended by adding at the
end the following new section:
‘‘SEC. 1505. EXEMPTION FROM LIABILITY.
‘‘(a) IN GENERAL.—No director, officer, employee, or
agent of the Corporation shall be liable, for money dam-
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ages or otherwise, to any party if, with respect to the sub-
ject matter of the action, suit, or proceeding, such person
was fulfilling a duty, in connection with any action taken
in connection with the privatization, which such person in
good faith reasonably believed to be required by law or
vested in such person.
‘‘(b) EXCEPTION.—The privatization shall be subject
to the Securities Act of 1933 and the Securities Exchange
Act of 1934. The exemption set forth in subsection (a)
shall not apply to claims arising under such Acts or under
the Constitution or laws of any State, territory, or posses-
sion of the United States relating to transactions in secu-
rities, which claims are in connection with a public offer-
ing implementing the privatization.
‘‘(c) SECURITIES LAWS APPLICABLE.—Any offering
or sale of securities by the Corporation established pursu-
ant to section 1503(a)(1) shall be subject to the Securities
Act of 1933, the Securities Exchange Act of 1934 and
the provisions of the Constitution and laws of any State,
territory, or possession of the United States relating to
transactions in securities.’’.
(d) RESOLUTION OF CERTAIN ISSUES.—Chapter 25
(as amended by subsection (c)) is amended by adding at
the end the following new section:
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‘‘SEC. 1506. RESOLUTION OF CERTAIN ISSUES.
‘‘(a) CORPORATION ACTIONS.—Notwithstanding any
provision of any agreement to which the Corporation is
a party, the Corporation shall not be considered to be in
breach, default, or violation of any such agreement be-
cause of any provision of this chapter or any action the
Corporation is required to take under this chapter.
‘‘(b) RIGHT TO SUE WITHDRAWN.—The United
States hereby withdraws any stated or implied consent for
the United States, or any agent or officer of the United
States, to be sued by any person for any legal, equitable,
or other relief with respect to any claim arising out of,
or resulting from, acts or omissions under this chapter.’’.
(e) CONFORMING AMENDMENT.—The table of con-
tents for chapter 25 is amended by inserting after the item
for section 1502 the following:
‘‘Sec. 1503. Establishment of Private Corporation.
‘‘Sec. 1504. Ownership Limitations.
‘‘Sec. 1505. Exemption from Liability.
‘‘Sec. 1506. Resolution of Certain Issues.’’.
(f) Section 193 (42 U.S.C. 2243) is amended by add-
ing at the end the following:
‘‘(f) LIMITATION.—If the privatization of the United
States Enrichment Corporation results in the Corporation
being—
‘‘(1) owned, controlled, or dominated by a for-
eign corporation or a foreign government, or
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‘‘(2) otherwise inimical to the common defense
or security of the United States,
any license held by the Corporation under sections 53 and
63 shall be terminated.’’.
(g) PERIOD FOR CONGRESSIONAL REVIEW.—Section
1502(d) (42 U.S.C. 2297d–1(d)) is amended by striking
‘‘less than 60 days after notification of the Congress’’ and
inserting ‘‘less than 60 days after the date of the report
to Congress by the Comptroller General under subsection
(c)’’.
SEC. 3041. PERIODIC CERTIFICATION OF COMPLIANCE.
Section 1701(c)(2) (42 U.S.C. 2297f(c)(2)) is
amended by striking ‘‘ANNUAL APPLICATION FOR CER-
TIFICATE OF COMPLIANCE.—The Corporation shall apply
at least annually to the Nuclear Regulatory Commission
for a certificate of compliance under paragraph (1).’’ and
inserting ‘‘PERIODIC APPLICATION FOR CERTIFICATE OF
COMPLIANCE.—The Corporation shall apply to the Nu-
clear Regulatory Commission for a certificate of compli-
ance under paragraph (1) periodically, as determined by
the Nuclear Regulatory Commission, but not less than
every 5 years.’’.
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SEC. 3042. LICENSING OF OTHER TECHNOLOGIES.
Subsection (a) of section 1702 (42 U.S.C. 2297f–
1(a)) is amended by striking ‘‘other than’’ and inserting
‘‘including’’.
SEC. 3043. CONFORMING AMENDMENTS.
(a) REPEALS IN ATOMIC ENERGY ACT OF 1954 AS
OF THE PRIVATIZATION DATE.—
(1) REPEALS.—As of the privatization date (as
defined in section 1201(13) of the Atomic Energy
Act of 1954), the following sections (as in effect on
such privatization date) of the Atomic Energy Act of
1954 are repealed:
(A) Section 1202.
(B) Sections 1301 through 1304.
(C) Sections 1306 through 1316.
(D) Sections 1404 and 1405.
(E) Section 1601.
(F) Sections 1603 through 1607.
(2) CONFORMING AMENDMENT.—The table of
contents of such Act is amended by repealing the
items referring to sections repealed by paragraph
(1).
(b) STATUTORY MODIFICATIONS.—As of such privat-
ization date, the following shall take effect:
(1) For purposes of title I of the Atomic En-
ergy Act of 1954, all references in such Act to the
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‘‘United States Enrichment Corporation’’ shall be
deemed to be references to the corporation estab-
lished pursuant to section 1503 of the Atomic En-
ergy Act of 1954 (as added by section 3036(a)).
(2) Section 1018(1) of the Energy Policy Act of
1992 (42 U.S.C. 2296b–7(1)) is amended by strik-
ing ‘‘the United States’’ and all that follows through
the period and inserting ‘‘the corporation referred to
in section 1201(4) of the Atomic Energy Act of
1954.’’.
(3) Section 9101(3) of title 31, United States
Code, is amended by striking subparagraph (N), as
added by section 902(b) of Public Law 102–486.
(c) REVISION OF SECTION 1305.—As of such privat-
ization date, section 1305 of the Atomic Energy Act of
1954 (42 U.S.C 2297b–4) is amended—
(1) by repealing subsections (a), (b), (c), and
(d), and
(2) in subsection (e)—
(A) by striking the subsection designation
and heading,
(B) by redesignating paragraph (1) (as
added by section 3038(a)) as subsection (a),
striking ‘‘IN GENERAL.—’’ and inserting ‘‘IN
GENERAL.—’’, redesignating subparagraphs (A)
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through (E) as paragraphs (1) through (5) (re-
designating in such paragraph, clauses (i)
through (iii) as subparagraphs (A) through
(C)), striking ‘‘clauses (i) through (iii)’’ in
paragraph (5) and inserting ‘‘subparagraphs
(A) through (C)’’, and by moving the margins
2-ems to the left,
(C) by striking paragraph (3), and
(D) by redesignating paragraph (4) (as
amended by section 3038(b)) as subsection (b),
and by moving the margins 2-ems to the left.
Subtitle D—Waste Isolation Pilot
Project
SEC. 3045. SHORT TITLE AND REFERENCE.
(a) SHORT TITLE.—This subtitle may be cited as the
‘‘Waste Isolation Pilot Plant Land Withdrawal Amend-
ment Act’’.
(b) REFERENCE.—Except as otherwise expressly pro-
vided, whenever in this subtitle an amendment or repeal
is expressed in terms of an amendment to, or repeal of,
a section or other provision, the reference shall be consid-
ered to be made to a section or other provision of the
Waste Isolation Pilot Plant Land Withdrawal Act (Public
Law 102–579).
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SEC. 3046. DEFINITIONS.
Paragraphs (18) and (19) of section 2 are repealed.
SEC. 3047. TEST PHASE AND RETRIEVAL PLANS.
Section 5 is repealed.
SEC. 3048. TEST PHASE ACTIVITIES.
Section 6 is amended—
(1) by repealing subsections (a) and (b),
(2) by repealing paragraph (1) of subsection
(c),
(3) by repealing subparagraph (A) of paragraph
(2) of subsection (c),
(4) by redesignating subsection (c) as sub-
section (a), by striking the subsection heading and
the matter before paragraph (1) and inserting
‘‘STUDY.—The following study shall be conducted:’’,
by striking ‘‘(2) REMOTE-HANDLED WASTE.—’’, by
striking ‘‘(B) STUDY.—’’, and by redesignating
clauses (i), (ii), and (iii) as paragraphs (1), (2), and
(3), respectively, and moving them 4-ems to the left,
and
(5) by redesignating subsection (d) as sub-
section (b).
SEC. 3049. DISPOSAL OPERATIONS.
Section 7(b) is repealed.
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SEC. 3050. ENVIRONMENTAL PROTECTION AGENCY DIS-
POSAL REGULATIONS.
(a) SECTION 8(d)(1).—Section 8(d)(1) is amended by
striking subparagraphs (B), (C), and (D) and by adding
after subparagraph (A) the following:
‘‘(B) COMMENTS
OF
ADMINISTRATOR.—
Within 2 months of receipt of the application
under subparagraph (A), the Administrator
shall provide the Secretary with any comments
on the Secretary’s application. Within one
month of the receipt of such comments, the
Secretary shall, to the extent practicable, incor-
porate the Administrator’s comments in the
Secretary’s application. The comments of the
Administrator provided to the Secretary should
also be transmitted to the appropriate commit-
tees of jurisdiction in the House of Representa-
tives and the Senate.’’.
(b) SECTION 8(d) (2), (3).—Section 8(d) is amended
by striking paragraphs (2) and (3), by striking ‘‘(1) COM-
PLIANCE WITH DISPOSAL REGULATIONS.—’’, and by re-
designating subparagraphs (A) and (B) of paragraph (1),
as amended by subsection (a), as paragraphs (1) and (2),
respectively, and moving them 2-ems to the left.
(c) SECTION 8(f).—Subsection (f) of section 8 is
amended—
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(1) by amending the subsection heading to read
‘‘PERIODIC REVIEW’’, and
(2) by amending paragraph (2) to read as fol-
lows:
‘‘(2) REVIEW
BY
THE
ADMINISTRATOR.—The
Administrator shall, not later than 6 months after
receiving a submission under paragraph (1), com-
ment on whether or not the WIPP facility continues
to be in compliance with the final disposition regula-
tions.’’.
(d) SECTION 8(g).—Section 8(g) is amended to read
as follows:
‘‘(g) ENGINEERED AND NATURAL BARRIERS, ETC.—
The Secretary should determine whether or not engineered
barriers or natural barriers, or both, will be required at
WIPP consistent with regulations published as part 191
of 40 C.F.R.’’.
SEC. 3051. COMPLIANCE WITH ENVIRONMENTAL LAWS AND
REGULATIONS.
(a) SECTION 9(a)(1).—Section 9(a)(1) is amended by
adding after and below subparagraph (H) the following:
‘‘With respect to transuranic mixed waste designated
by the Secretary for disposal at WIPP, such waste
is exempt from the land disposal restrictions pub-
lished at part 268 of 40 C.F.R. because compliance
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with the environmental radiation protection stand-
ards published at part 191 of 40 C.F.R. renders
compliance with the land disposal restrictions unnec-
essary to achieve desired environmental protection
and a no migration variance is not required for dis-
posal of transuranic mixed waste at WIPP.’’.
(b) SECTION 9(b).—Subsection (b) of section 9 is re-
pealed.
(c) SECTIONS 9(c), (d).—Subsections (c) and (d) of
section 9 are repealed.
SEC. 3052. RETRIEVABILITY.
Section 10 is amended to read as follows:
‘‘SEC. 10. TRANSURANIC WASTE.
‘‘It is the intent of Congress that a decision will be
made by the Secretary with respect to the disposal of
transuranic waste no later than March 31, 1997.’’.
SEC. 3053. DECOMMISSIONING OF WIPP.
Section 13 is amended—
(1) by repealing subsection (a), and
(2) in subsection (b), by striking ‘‘(b) MANAGE-
MENT PLAN FOR THE WITHDRAWAL AFTER DECOM-
MISSIONING.—Within 5 years after the date of the
enactment of this Act, the’’ and inserting ‘‘The’’.
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SEC. 3054. ECONOMIC ASSISTANCE AND MISCELLANEOUS
PAYMENTS.
Section 15(a) is amended—
(1) by striking ‘‘to the Secretary for payments
to the State $20,000,000 for each of the 15 fiscal
years beginning with the fiscal year in which the
transport of transuranic waste to WIPP is initiated’’
and inserting ‘‘to the State $20,000,000 for each of
the 15 fiscal years beginning with the date of the en-
actment of the Waste Isolation Pilot Plant Land
Withdrawal Amendment Act’’, and
(2) by adding at the end the following: ‘‘An ap-
propriation to the State shall be in addition to any
appropriation for WIPP.’’.
SEC. 3055. NON-DEFENSE WASTE.
Section 7(a) is amended by redesignating paragraph
(3) as paragraph (4) and by inserting after paragraph (2)
the following:
‘‘(3) NONDEFENSE WASTE.—Within the capac-
ity prescribed by paragraph (4), WIPP may receive
transuranic waste from the Secretary which did not
result from a defense activity.’’.
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Subtitle E—Strategic Petroleum
Reserve
SEC. 3071. LEASE OF EXCESS STRATEGIC PETROLEUM RE-
SERVE CAPACITY.
(a) AMENDMENT.—Part B of title I of the Energy
Policy and Conservation Act (42 U.S.C. 151 et seq.) is
amended by adding at the end the following new section:
‘‘USE OF UNDERUTILIZED FACILITIES
‘‘SEC. 168. (a) AUTHORITY.—Notwithstanding any
other provision of this title, the Secretary, by lease or oth-
erwise, for any term and under such other conditions as
the Secretary considers necessary or appropriate, may
store in underutilized Strategic Petroleum Reserve facili-
ties petroleum product owned by a foreign government or
its representative.
‘‘(b) CONDITIONS OF WITHDRAWAL.—The lessee or
occupier of facilities under subsection (a) may not with-
draw petroleum product from those facilities more fre-
quently than once every 5 years, unless an earlier
drawdown is required to comply with the terms of the
International Energy Agreement or to respond to a na-
tional energy emergency involving the disruption of more
than 5 percent of the lessee’s or occupier’s imports.
‘‘(c) PRIORITY ACCESS.—When a drawdown of the
reserve is ordered pursuant to section 161, the United
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States shall have priority access, over a lessee or occupier
of facilities under subsection (a), to distribution facilities,
including pipelines and terminals.
‘‘(d) STATUS OF STORED PETROLEUM PRODUCT.—
Petroleum product stored under this section is not part
of the Reserve, and may be exported from the United
States.’’.
(b) TABLE OF CONTENTS AMENDMENT.—The table
of contents of part B of title I of the Energy Policy and
Conservation Act is amended by adding at the end the
following new item:
‘‘Sec. 168. Use of underutilized facilities.’’.
Subtitle F—FDA Export Reform
and Enhancement Act
SEC. 3081. SHORT TITLE.
This Act may be cited as the ‘‘FDA Export Reform
and Enhancement Act of 1995’’.
SEC. 3082. EXPORT OF NEW DRUGS.
Section 801(e) of the Federal Food, Drug, and Cos-
metic Act (21 U.S.C. 381(e)) is amended—
(1) in paragraph (1), by inserting after ‘‘under
this Act’’ the following: ‘‘or in violation of section
505 or section 351 of the Public Health Service
Act’’,
(2) in paragraph (1), by striking the last sen-
tence, and
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(3) by amending paragraph (2) to read as fol-
lows:
‘‘(2) Paragraph (1) does not apply to the export of—
‘‘(A) any device—
‘‘(i) which does not comply with an appli-
cable requirement under section 514 or 515,
‘‘(ii) which under section 520(g) is exempt
from either such section, or
‘‘(iii) which is a banned device under sec-
tion 516, or
‘‘(B) any drug (including a biological product)
which does not comply with an applicable require-
ment under section 505 or 512 or section 351 of the
Public Health Service Act,
unless the device or drug is in compliance with the require-
ments of paragraph (1) and if the device or drug is to
be exported to a country which is not a member of the
World Trade Organization, the person exporting it has no-
tified the Secretary of the export at least 30 days before
the export and has included in such notice the name of
the product, the country to which the product is being ex-
ported, and a brief description of the medical need for
such device or drug in such country. In the case of a device
or drug for which an export notice is required under this
paragraph, the Secretary may prohibit the export of such
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device or drug if the Secretary determines that the possi-
bility of the reimportation of the device or drug into the
United States presents an imminent hazard to the public
health and safety of the United States and the only means
of limiting the hazard is to prohibit the export of the de-
vice or drug.’’.
SEC. 3083. EXPORT OF CERTAIN UNAPPROVED PRODUCTS.
Section 802 (21 U.S.C. 382) is repealed.
SEC. 3084. PARTIALLY PROCESSED BIOLOGICAL PROD-
UCTS.
Subsection (h) of section 351 of the Public Health
Service Act (42 U.S.C. 262) is amended to read as follows:
‘‘(h) A partially-processed biological product which—
‘‘(1) is not in a form applicable to the preven-
tion, treatment, or cure of diseases or injuries of
man,
‘‘(2) is not intended for sale in the United
States, and
‘‘(3) is intended for further manufacture into
final dosage form outside the United States,
shall be subject to no restriction on its export under this
Act or the Federal, Food, Drug, and Cosmetic Act (21
U.S.C. 321 et seq.).’’
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TITLE IV—COMMITTEE ON ECO-
NOMIC 
AND 
EDUCATIONAL
OPPORTUNITIES
SEC. 4000. TABLE OF CONTENTS.
The table of contents for this title is as follows:
TITLE IV—ECONOMIC AND EDUCATIONAL OPPORTUNITIES
Subtitle A—Higher Education
Sec. 4001. Short title; effective date.
Sec. 4002. Termination of direct lending.
Sec. 4003. Elimination of grace period interest subsidies.
Sec. 4004. Plus program reductions.
Sec. 4005. Loan transfer fee.
Sec. 4006. Lender fees to guaranty agencies.
Sec. 4007. Additional loan program changes.
Sec. 4008. Use of reserve funds to purchase defaulted loans.
Sec. 4009. Extension of period a guaranty agency must hold a defaulted loan.
Sec. 4010. Privatization of College Construction Loan Insurance Association.
Sec. 4011. Eligible institution.
Sec. 4012. Extension of program duration.
Subtitle B—Service Contract Repeal
Sec. 4101. Service Contract Act of 1965.
Subtitle C—Provisions Relating to the Employee Retirement Income Security
Act of 1974
Sec. 4201. Waiver of minimum period for joint and survivor annuity expla-
nation before annuity starting date.
Subtitle A—Higher Education
SEC. 4001. SHORT TITLE; EFFECTIVE DATE.
(a) SHORT TITLE.—This subtitle may be cited as the
‘‘Higher Education Program Efficiency Act of 1995’’.
(b) EFFECTIVE DATE.—Except as otherwise provided
therein, the amendments made by this subtitle shall take
effect on January 1, 1996.
SEC. 4002. TERMINATION OF DIRECT LENDING.
(a) TERMINATION OF AUTHORITY.—
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(1) PROGRAM AUTHORITY.—Section 451(a) of
the Higher Education Act of 1965 (20 U.S.C.
1087a(a)) is amended by inserting ‘‘and ending
June 30, 1996’’ after ‘‘period beginning July 1,
1994’’.
(2) TERMINATION OF FUNDING.—Section 452
of such Act (20 U.S.C. 1087b) is amended by add-
ing at the end the following new subsection:
‘‘(e) TERMINATION
OF FUNDING.—The Secretary
shall not provide funds under this section for loans for
any academic year beginning on or after July 1, 1996.
The Secretary shall not pay any fees pursuant to sub-
section (b) of this section on or after January 1, 1996.’’.
(3) TERMINATION
OF
AUTHORITY
TO
ENTER
NEW AGREEMENTS.—Section 453(a) of such Act (20
U.S.C. 1087c(a)) is amended—
(A) in paragraph (1), by inserting ‘‘and
ending before July 1, 1996’’ after ‘‘academic
years beginning on or after July 1, 1994’’;
(B) in paragraph (2)—
(i) by inserting ‘‘and’’ after the semi-
colon at the end of subparagraph (A);
(ii) by striking the semicolon at the
end of subparagraph (B) and inserting a
period; and
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(iii) by striking subparagraphs (C)
and (D); and
(C) by striking paragraph (3) and redesig-
nating paragraph (4) as paragraph (3).
(b) ADMINISTRATIVE COST AMENDMENTS.—Section
458 of such Act (20 U.S.C. 1087h) of such Act is amend-
ed—
(1) by striking subsection (d);
(2) by redesignating subsections (b) and (c) as
subsections (f) and (g), respectively; and
(3) by striking subsection (a) and inserting the
following:
‘‘(a) IN GENERAL.—
‘‘(1) DIRECT
ADMINISTRATIVE
COSTS.—Each
fiscal year there shall be available to the Secretary
of Education, from funds not otherwise appro-
priated, funds to be obligated for the subsidy costs
of direct administrative costs under this part, sub-
ject to subsection (b) of this section.
‘‘(2) INDIRECT ADMINISTRATIVE COSTS.—There
shall also be available from funds available from
funds not otherwise appropriated, funds to be obli-
gated for indirect administrative costs under this
part and part B, subject to subsection (c) of this
section, not to exceed (from such funds not other-
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wise appropriated) $260,000,000 in fiscal year
1994, 
$345,000,000 
in 
fiscal 
year 
1995,
$110,000,000 in fiscal year 1996 (of which
$40,000,000 shall be available for administrative
cost allowances for guaranty agencies for October
through December of 1995), and $70,000,000 in
each of the fiscal years 1997 through 2002.
‘‘(3) REDUCTION.—The amount authorized to
be made available for fiscal year 1997 under para-
graph (2) shall be reduced by the amount of any un-
obligated unexpended funds available to carry out
this subsection for any fiscal year prior to fiscal year
1996.
‘‘(b) SUBSIDY COSTS.—For purposes of this section,
‘subsidy cost’ means the estimated long-term cost to the
Federal Government of direct administrative expenses cal-
culated on a net present value basis.
‘‘(c) DIRECT ADMINISTRATIVE EXPENSES.—For pur-
poses of this section, ‘direct administrative expenses’ shall
consist of the cost of—
‘‘(1) activities related to credit extension, loan
origination, loan servicing, management of contrac-
tors, and payments to contractors, other government
entities, and program participants;
‘‘(2) collection of delinquent loans; and
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‘‘(3) write-off and closeout of loans.
‘‘(d) INDIRECT ADMINISTRATIVE EXPENSES.—For
purposes of this section, ‘indirect administrative expenses’
shall consist of the cost of—
‘‘(1) personnel engaged in developing program
regulations, policy, and administrative guidelines;
‘‘(2) audits of institutions and contractors;
‘‘(3) program reviews; and
‘‘(4) other oversight of the program.
‘‘(e) LIMITATION ON PART D EXPENDITURES.—For
any fiscal year, expenditures for indirect administrative
expenses and for loan servicing for loans made pursuant
to this part shall not exceed 30 percent of funds available
pursuant to paragraph (2) for such fiscal year.’’.
(c) ELIMINATION
OF
TRANSITION
TO
DIRECT
LOANS.—Such Act is further amended—
(1) 
in 
section 
422(c)(7) 
(20 
U.S.C.
1072(c)(7))—
(A) by striking ‘‘during the transition’’ and
all that follows through ‘‘part D of this title’’
in subparagraph (A); and
(B) by striking ‘‘section 428(c)(10)(F)(v)’’
in subparagraph (B) and inserting ‘‘section
428(c)(9)(F)(v)’’;
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(2) in section 428(c)(8) (20 U.S.C. 1078(c)(8)),
by striking subparagraph (B) and inserting the fol-
lowing:
‘‘(B) Prior to making such determination for
any guaranty agency, the Secretary shall, in con-
sultation with the guaranty agency, develop criteria
to determine whether such guaranty agency has
made adequate collection efforts. In determining
whether a guaranty agency’s collection efforts have
met such criteria, the Secretary shall consider the
agency’s record of success in collecting on defaulted
loans, the age of the loans, and the amount of recent
payments received on the loans.’’;
(3) in section 428(c)(9)(E)—
(A) by inserting ‘‘or’’ after the semicolon
at the end of clause (iv);
(B) by striking ‘‘; or’’ at the end of clause
(v) and inserting a period; and
(C) by striking clause (vi);
(4) in clause (vii) of section 428(c)(9)(F)—
(A) by inserting ‘‘and’’ before ‘‘to avoid
disruption’’; and
(B) by striking ‘‘, and to ensure an orderly
transition’’ and all that follows through the end
of such clause and inserting a period;
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(5) in section 428(c)(9)(K), by striking ‘‘the
progress of the transition from the loan programs
under this part to’’ and inserting ‘‘the integrity and
administration of’’;
(6) in section 428(e)(1)(B)(ii), by striking
‘‘during the transition’’ and all that follows through
‘‘part D of this title’’;
(7) in section 428(e)(3), by striking ‘‘of transi-
tion’’;
(8) in section 428(j)(3)—
(A) by striking ‘‘DURING TRANSITION TO
DIRECT LENDING’’; and
(B) by striking ‘‘during the transition’’
and all that follows through ‘‘part D of this
title,’’ in subparagraph (A) and inserting a
comma;
(9) 
in 
section 
453(c)(2) 
(20 
U.S.C.
1087c(c)(2)), by striking ‘‘TRANSITION’’ and insert-
ing ‘‘INSTITUTIONAL’’;
(10) in section 453(c), by striking paragraph
(3); and
(11) in section 456(b) (20 U.S.C. 1087f(b))—
(A) by inserting ‘‘and’’ after the semicolon
at the end of paragraph (3);
(B) by striking paragraph (4);
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(C) by redesignating paragraph (5) as
paragraph (4); and
(D) in such paragraph (4) (as redesig-
nated), by striking ‘‘successful operation’’ and
inserting ‘‘integrity and efficiency’’.
(d) ADDITIONAL CONFORMING AMENDMENTS.—
(1) ABILITY OF PART D BORROWERS TO OBTAIN
FEDERAL STAFFORD CONSOLIDATION LOANS.—Sec-
tion 428C(a)(4) of such Act (20 U.S.C. 1078–
3(a)(4)) is amended—
(A) by redesignating subparagraphs (C)
and (D) as subparagraphs (D) and (E); and
(B) by inserting after subparagraph (B)
the following new subparagraph:
‘‘(C) made under part D of this title;’’.
(2) 
CONFORMING
AMENDMENTS.—Section
428C(b) of such Act (20 U.S.C. 1078–3(b)) is
amended by striking paragraph (5).
SEC. 4003. ELIMINATION OF GRACE PERIOD INTEREST SUB-
SIDIES.
Section 428(a)(3) of the Higher Education Act of
1965 (20 U.S.C. 1078(a)(3)) is amended by adding at the
end the following new subparagraph:
‘‘(C) Notwithstanding subparagraph (A), no
portion of the interest which accrues after the stu-
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dent ceases to carry at an eligible institution at least
one-half the normal full-time academic workload (as
determined by the institution) and prior to the be-
ginning of the repayment period of the loan shall be
paid by the Secretary under this subsection on any
loan made on or after January 1, 1996. Interest on
the unpaid principal amount of any such loan during
the interval described in the preceding sentence
shall, at the option of the borrower—
‘‘(i) be paid monthly or quarterly, or
‘‘(ii) be added by the lender to the prin-
cipal amount of the loan at the commencement
of the repayment period.’’.
SEC. 4004. PLUS PROGRAM REDUCTIONS.
(a) LOAN LIMITS.—Section 428B(b) of the Higher
Education Act of 1965 (20 U.S.C. 1078-2(b)) is amend-
ed—
(1) by striking ‘‘(b) LIMITATION BASED
ON
NEED.—’’ and inserting the following:
‘‘(b) ANNUAL LIMITS.—
‘‘(1) LIMITATION BASED ON NEED.—’’;
(2) by inserting before the last sentence thereof
the following:
‘‘(3) LIMITATION COMPUTED ON BASIS OF AC-
TUAL PAYMENTS.—’’; and
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(3) by inserting before paragraph (3) (as des-
ignated by the amendment made by paragraph (2)
of this subsection) the following new paragraph:
‘‘(2) DOLLAR
LIMITATION.—Subject to para-
graph (1), the maximum amount parents may bor-
row for one student in any academic year or its
equivalent (as defined by regulations of the Sec-
retary) is $15,000.’’.
(b) INTEREST REBATE.—Section 428B of such Act
is further amended by adding at the end the following new
subsection:
‘‘(f) INTEREST REBATE.—
‘‘(1) REBATE
REQUIRED.—Each holder of a
loan under this section made on or after the date of
enactment of this subsection, shall pay, on June 30
and December 31 of each year, to the Secretary a
rebate of subsidies in an amount equal to 0.8 per-
cent of the outstanding principal balance of loans
held on such date. Payment of such rebate shall be
made not later than 60 days after each such date.
‘‘(2) DEPOSIT
OF
REBATES.—The Secretary
shall deposit all fees collected pursuant to paragraph
(1) into the insurance fund established in section
431.’’.
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(c) 
PLUS
LOANS
INTEREST
RATES.—Section
427A(c)(4) of such Act (20 U.S.C. 1077a(c)(4)) is amend-
ed by adding at the end the following new subparagraph:
‘‘(F) Notwithstanding subparagraphs (A), (D),
and (E), for any loan made pursuant to section
428B for which the first disbursement is made on or
after January 1, 1996—
‘‘(i) subparagraph (B) shall be applied by
substituting ‘4.0’ for ‘3.25’; and
‘‘(ii) the interest rate shall not exceed 11
percent.’’.
(d) CONFORMING AMENDMENT.—Section 427A(h) of
such Act (20 U.S.C. 1077a(h)) is amended—
(1) by striking paragraph (2); and
(2) by redesignating paragraph (3) as para-
graph (2).
SEC. 4005. LOAN TRANSFER FEE.
Section 428(b)(2) of the Higher Education Act of
1965 (20 U.S.C. 1078(b)(2)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (E);
(2) by striking the period at the end of sub-
paragraph (F) and inserting ‘‘; and’’; and
(3) by adding at the end thereof the following
new subparagraph:
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‘‘(G) provide that, if a lender or holder, on
or after January 1, 1996, sells, transfers, or as-
signs a loan under this part, then the transferee
shall pay to the Secretary a transfer fee in an
amount equal to 0.20 percent of the principal
of the loan, which transfer fee shall be depos-
ited into the insurance fund established in sec-
tion 431, except that the provisions of this sub-
paragraph shall not apply to any such sale,
transfer, or assignment by a lender or holder to
such lender’s or holder’s affiliate or pursuant to
a merger or other consolidation transaction.’’.
SEC. 4006. LENDER FEES TO GUARANTY AGENCIES.
Subsection (f) of section 428 of the Higher Education
Act of 1965 (20 U.S.C. 1078(f)) is amended to read as
follows:
‘‘(f) PAYMENTS OF CERTAIN COSTS.—
‘‘(1) PAYMENTS FROM LENDERS.—With respect
to any loan under this part for which the first dis-
bursement is made on or after January 1, 1996, the
originating lender shall remit to the guaranty agency
which guarantees the loan, a fee equal to 0.70 per-
cent of the principal amount of the loan.
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‘‘(2) USE OF PAYMENTS.—Payments made pur-
suant to paragraph (1) shall be used for the pur-
poses of—
‘‘(A) the administrative costs of collections
of loans;
‘‘(B) the administrative costs of preclaim
assistance and other predefault activities;
‘‘(C) the administrative costs of monitoring
the enrollment and repayment status of stu-
dents; and
‘‘(D) other such costs related to the stu-
dent loan insurance program.
‘‘(3) TIMING OF PAYMENTS.—Payments made
pursuant to paragraph (1) shall be made at the time
insurance premiums on such loans are paid to the
guaranty agency.
‘‘(4) PROHIBITION
ON
PASS-THROUGH.—No
part of any payments required by this section shall
be assessed or collected, directly or indirectly, from
any borrower under this part.’’.
SEC. 4007. ADDITIONAL LOAN PROGRAM CHANGES.
(a) RESERVE FUNDS.—
(1) AMENDMENTS
TO
SECTION
422.—Section
422 of the Higher Education Act of 1965 (20
U.S.C. 1072) is amended—
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(A) in the last sentence of subsection
(a)(2), by striking ‘‘Except as provided in sec-
tion 428(c)(10)(E) or (F), such unencumbered’’
and inserting ‘‘Such’’;
(B) in subsection (g)(1), by striking ‘‘or
the program authorized by part D of this title’’
each place it appears;
(C) in subsection (g)(1)(D), by striking
‘‘(A) or (B)’’ and inserting ‘‘(A), (B), or (C)’’;
and
(D) in subsection (g), by striking para-
graph (4) and inserting the following:
‘‘(4) DISPOSITION OF FUNDS RETURNED TO OR
RECOVERED BY THE SECRETARY.—Any funds that
are returned to or otherwise recovered by the Sec-
retary pursuant to this subsection shall be returned
to the Treasury of the United States for purposes of
reducing the Federal debt and shall be deposited
into the special account under section 3113(d) of
title 31, United States Code.’’.
(2) AMENDMENTS
TO
SECTION
428.—Section
428(c)(9)(A) of such Act (20 U.S.C. 1078(c)(9)(A))
is amended—
(A) by inserting ‘‘and’’ after the semicolon
at the end of clause (i);
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(B) by striking ‘‘; and’’ at the end of
clause (ii) and inserting a period; and
(C) by striking clause (iii).
(b) APPLICATION FOR PART B LOANS USING FREE
FEDERAL APPLICATION.—
(1) SINGLE FORM REQUIRED.—Section 483(a)
of such Act (20 U.S.C. 1090(a)) is amended—
(A) in paragraph (1)—
(i) by inserting ‘‘B,’’ after ‘‘assistance
under parts A,’’;
(ii) by striking ‘‘and to determine the
need of a student for the purpose of part
B of this title’’; and
(iii) by striking the last sentence and
inserting the following: ‘‘Such form may be
in an electronic or any other format (sub-
ject to section 485B) in order to facilitate
use by borrowers and institutions.’’; and
(B) in paragraph (3), by striking ‘‘and
States shall receive,’’ and inserting ‘‘, any guar-
anty agency authorized by any such institution,
and States shall receive, at their request and’’.
(2) USE
OF
ELECTRONIC
FORMS.—Section
483(a) of such Act is further amended by adding the
following new paragraph after paragraph (4):
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‘‘(5) ELECTRONIC FORMS.—(A) The Secretary,
in cooperation with representatives of institutions of
higher education, eligible lenders, and guaranty
agencies, shall prescribe an electronic version of the
form described in subsection (a)(1). Such electronic
form shall not require signatures to be collected at
the time such form is submitted if the data con-
tained in the electronic form is certified in one or
more separate writings. The Secretary shall pre-
scribe the initial electronic form not later than 90
days after the date of enactment of this paragraph.
‘‘(B) Nothing in this Act shall preclude the use
of the electronic form prescribed under subpara-
graph (A) through software developed, produced,
distributed (including by diskette, modem or net-
work communication, or otherwise) or collected by
eligible lenders, guaranty agencies, eligible institu-
tions, or consortia thereof. Such organization or con-
sortium shall submit such electronic form to the Sec-
retary for review prior to its use. If such electronic
form is inconsistent with the provisions of this part,
the Secretary shall notify the submitting organiza-
tion or consortium of his objection within 30 days
of such submission, and shall specifically identify the
necessary changes. In the absence of such an objec-
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tion the organization or consortium may use the
electronic form as submitted. No fee may be charged
in connection with use of the electronic form, or of
any other electronic forms used in conjunction with
such form in applying for Federal or State student
financial assistance.’’.
(c) AMENDMENTS TO ELIGIBLE LENDER DEFINI-
TION.—Section 435(d)(1) of such Act (20 U.S.C. 1085)
is amended—
(1) by inserting before the semicolon at the end
of subparagraph (A) the following: ‘‘; and in deter-
mining whether the making or holding of loans to
students and parents under this part is the primary
consumer credit function of the eligible lender, loans
made or held as trustee or in a trust capacity for
the benefit of a third party shall not be considered’’;
(2) by striking ‘‘and’’ at the end of subpara-
graph (I);
(3) in subparagraph (J), by striking the period
and inserting ‘‘; and’’; and
(4) by adding at the end the following new sub-
paragraph:
‘‘(K) a wholly owned subsidiary of a pub-
licly-held holding company which, as of the date
of enactment of this subparagraph, through one
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or more subsidiaries (i) acts as a finance com-
pany, and (ii) participates in the program au-
thorized by this part pursuant to subparagraph
(C).’’.
(d) ADDITIONAL AMENDMENTS TO SECTION 428.—
(1) AMENDMENTS.—Section 428 of such Act is
further amended—
(A) in subsection (b)(1)(G), by striking
‘‘98 percent’’ and inserting ‘‘95 percent’’;
(B) in subsection (b)(1)(X), by striking
‘‘section 428(c)(10)’’ and inserting ‘‘section
428(c)(9)’’;
(C) in subsection (c)(1)(A), by striking
‘‘98 percent’’ and inserting ‘‘96 percent’’;
(D) in subsection (c)(1)(B)(i), by striking
‘‘88 percent’’ and inserting ‘‘86 percent’’;
(E) in subsection (c)(1)(B)(ii), by striking
‘‘78 percent’’ and inserting ‘‘76 percent’’;
(F) in subsection (c)(9)(C)(ii), by striking
‘‘80 percent’’ and inserting ‘‘76 percent’’;
(G) in subsection (c)(9)(I) by inserting ‘‘on
the record’’ after ‘‘for a hearing’’;
(H) in subsection (j)(2)(A), by striking
‘‘60’’ and inserting ‘‘15’’;
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(I) in subsection (j)(2)(B), by striking
‘‘two rejections’’ and inserting ‘‘one rejection’’;
and
(J) in subsection (l)—
(i) by striking paragraph (2); and
(ii) by striking ‘‘(1) ASSISTANCE RE-
QUIRED.—’’.
(2) EFFECTIVE DATE.—The amendments made
by subparagraphs (A) and (C) through (F) of para-
graph (1) of this subsection shall apply to loans on
which the first disbursement of principal is made on
or after January 1, 1996.
(e) REINSURANCE PERCENTAGE UNDER SECTION
428I.—Section 428I of such Act (20 U.S.C. 1078–9) is
amended in subsection (b)(1)—
(1) by striking ‘‘100 PERCENT’’ in the heading
and inserting ‘‘95 PERCENT’’; and
(2) by striking ‘‘100 percent’’ and inserting ‘‘95
percent’’.
(f) LOAN FEES FROM LENDERS.—Section 438(d)(2)
of such Act (20 U.S.C. 1087–1(d)(2)) is amended to read
as follows:
‘‘(2) AMOUNT OF LOAN FEES.—The amount of
the loan fee which shall be deducted under para-
graph (1) shall be—
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‘‘(A) 0.50 percent of the principal amount
of the loan, for any loan under this part for
which the first disbursement was made on or
after October 1, 1993, and before January 1,
1996; or
‘‘(B) 0.30 percent of the principal amount
of the loan, for any loan under this part for
which the first disbursement was made on or
after January 1, 1996.’’.
(g) SMALL LENDER AUDIT EXEMPTION.—Section
428(b)(1)(U)(iii) 
of 
such 
Act 
(20 
U.S.C.
1078(b)(1)(U)(iii)) is amended—
(1) by inserting ‘‘in the case of any lender that
originates or holds more than $5,000,000 in prin-
cipal on loans made under this title in any fiscal
year,’’ before ‘‘for (I)’’;
(2) by inserting ‘‘such’’ before ‘‘lender at least
once’’;
(3) by inserting ‘‘such’’ before ‘‘a lender that is
audited’’; and
(4) by striking ‘‘if the lender’’ and inserting ‘‘if
such lender’’.
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SEC. 4008. USE OF RESERVE FUNDS TO PURCHASE DE-
FAULTED LOANS.
Section 422 of the Higher Education Act of 1965 (20
U.S.C. 1072) is amended by adding at the end the follow-
ing new subsection:
‘‘(h) USE OF RESERVE FUNDS TO PURCHASE DE-
FAULTED LOANS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), a guaranty agency shall use not less than
50 percent of such agency’s reserve funds to pur-
chase and hold defaulted loans that are guaranteed
by such agency and for which a claim for insurance
is filed with such agency by an eligible lender after
the date of enactment of this subsection. The
amount of such purchases shall be considered as re-
serve funds under this section and used in the cal-
culation of the minimum reserve level under section
428(c)(9).
‘‘(2) SPECIAL RULE.—A guaranty agency shall
not be required to use its reserve funds to purchase
and hold defaulted loans in accordance with para-
graph (1) to the extent that—
‘‘(A) the dollar volume of insurance claims
filed with such agency does not amount to 50
percent of such agency’s available reserve
funds; or
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‘‘(B) such use is prohibited by State law;
or
‘‘(C) such use will compromise the ability
of the guaranty agency to pay program ex-
penses.’’.
SEC. 4009. EXTENSION OF PERIOD A GUARANTY AGENCY
MUST HOLD A DEFAULTED LOAN.
(a) EXEMPTION
FOR
EXTENDED
HOLDING
PE-
RIOD.—The last sentence of section 428(c)(1)(A) of the
Higher Education Act of 1965 (20 U.S.C. 1078(c)(1)(A))
is amended by striking out ‘‘A guaranty agency’’ and in-
serting ‘‘Except as provided in section 428K, a guaranty
agency’’.
(b) NEW EXTENDED HOLDING PERIOD PROGRAM.—
Part B of title IV of such Act (20 U.S.C. 1071 et seq.)
is amended by inserting after section 428J the following
new section:
‘‘SEC. 428K. GUARANTOR PURCHASE OF CLAIMS WITH RE-
SERVE FUNDS.
‘‘(a) LOANS SUBJECT TO EXTENDED HOLDING PE-
RIOD.—Except as provided in subsection (b), a guaranty
agency shall file a claim for reimbursement with respect
to losses (resulting from the default of a student borrower)
subject to reimbursement by the Secretary pursuant to
section 428(c)(1) not less than 180 days nor more than
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225 days after the guaranty agency discharges such agen-
cy’s insurance obligation on a loan insured under this
part. Such claim shall include losses on the unpaid prin-
cipal and accrued interest of any such loan, including in-
terest accrued from the date of such discharge to the date
such agency files the claim for reimbursement from the
Secretary.
‘‘(b) LOANS EXCLUDED FROM EXTENDED HOLD-
ING.—A guaranty agency may file a claim with respect
to losses subject to reimbursement by the Secretary pursu-
ant to section 428(c)(1) prior to 180 days after the date
the guaranty agency discharges such agency’s insurance
obligation on a loan insured under this part, if—
‘‘(1) such agency used 50 percent or more of
such agency’s reserve funds to purchase or hold
loans in accordance with section 422(h);
‘‘(2) such claim is based on an inability to lo-
cate the borrower and the guaranty agency certifies
to the Secretary that—
‘‘(A) diligent attempts were made to locate
the borrower through the use of reasonable
skip-tracing techniques in accordance with sec-
tion 428(c)(2)(G); and
‘‘(B) such skip-tracing attempts to locate
the borrower were unsuccessful; or
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‘‘(3) the guaranty agency determines that the
borrower is unlikely to possess the financial re-
sources to begin repaying the loan prior to 180 days
after default by the borrower.
‘‘(c) GUARANTY AGENCY EFFORTS DURING EX-
TENDED HOLDING PERIOD.—A guaranty agency shall at-
tempt to bring a loan described in subsection (a) into re-
payment status prior to 180 days after the date the guar-
anty agency discharges its insurance obligation on the
loan, so that no claim for reimbursement by the Secretary
is necessary. Upon securing payment satisfactory to the
guaranty agency during the 180-day period, such agency
shall, if practicable, sell such loan to an eligible lender.
Such loan shall not be sold to an eligible lender that the
guaranty agency determines has substantially failed to ex-
ercise the due diligence required of lenders under this
part.
‘‘(d) REGULATION
PROHIBITED.—The Secretary
shall not regulate the collection activities of a guaranty
agency with respect to a loan described in subsection (a)
for which reinsurance has not been paid under section
428(c)(1).’’.
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SEC. 4010. PRIVATIZATION OF COLLEGE CONSTRUCTION
LOAN INSURANCE ASSOCIATION.
(a) REPEAL OF STATUTORY RESTRICTIONS.—Part D
of title VII of the Higher Education Act of 1965 (20
U.S.C. 1132f et seq.) is repealed.
(b) STATUS OF THE CORPORATION.—
(1) STATUS OF THE CORPORATION.—The Cor-
poration shall not be an agency, instrumentality, or
establishment of the United States Government and
shall not be a ‘‘Government corporation’’ nor a
‘‘Government controlled corporation’’ as defined in
section 103 of title 5, United States Code. No action
under section 1491 of title 28, United States Code
(commonly known as the Tucker Act), shall be al-
lowable against the United States based on the ac-
tions of the Corporation.
(2) CORPORATE
POWERS.—The Corporation
shall have the power to engage in any business or
other activities for which corporations may be orga-
nized under the laws of any State of the United
States or the District of Columbia. The Corporation
shall have the power to enter into contracts, to exe-
cute instruments, to incur liabilities, to provide prod-
ucts and services, and to do all things as are nec-
essary or incidental to the proper management of its
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affairs and the efficient operation of a private, for-
profit business.
(3) LIMITATION ON OWNERSHIP OF STOCK.—
Except as provided in subsection (d)(2) of this sec-
tion, no stock of the Corporation may be sold or is-
sued to an agency, instrumentality, or establishment
of the United States Government, to a Government
corporation or a Government controlled corporation
(as such terms are defined in section 103 of title 5,
United States Code), or to a Government sponsored
enterprise (as such term is defined in section 622 of
title 2, United States Code). The Student Loan
Marketing Association shall not own any stock of
the Corporation, except that it may retain the stock
it owns on the date of enactment. The Student Loan
Marketing Association shall not control the oper-
ation of the Corporation, except that the Student
Loan Marketing Association may participate in the
election of directors as a shareholder, and may con-
tinue to exercise its right to appoint directors under
section 754 of the Higher Education Act of 1965 as
long as that section is in effect. The Student Loan
Marketing Association shall not provide financial
support or guarantees to the Corporation. Notwith-
standing the prohibitions in this subsection, the
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United States may pursue any remedy against a
holder of the Corporation’s stock to which it would
otherwise be entitled.
(c) RELATED PRIVATIZATION REQUIREMENTS.—
(1) NOTICE
REQUIREMENTS.—During the 5-
year period following the date of the enactment of
this Act, the Corporation shall include in any docu-
ment offering the Corporation’s securities, in any
contracts for insurance, guarantee, or reinsurance of
obligations, and in any advertisement or promotional
material, a statement that—
(A) the Corporation is not a Government-
sponsored enterprise or instrumentality of the
United States; and
(B) the Corporation’s obligations are not
guaranteed by the full faith and credit of the
United States.
(2) CORPORATE CHARTER.—The Corporation’s
charter shall be amended as necessary and without
delay to conform the requirements of this Act.
(3) CORPORATE NAME.—The name of the Cor-
poration, or of any direct or indirect subsidiary
thereof, may not contain the term ‘‘College Con-
struction Loan Insurance Association’’.
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(4) ARTICLES OF INCORPORATION.—The Cor-
poration shall amend its articles of incorporation
without delay to reflect that one of the purposes of
the Corporation shall be to guarantee, insure and re-
insure bonds, leases, and other evidences of debt of
educational institutions, including Historically Black
Colleges and Universities and other academic insti-
tutions which are ranked in the lower investment
grade category using a nationally recognized credit
rating system.
(5) TRANSITION REQUIREMENTS.—
(A) REQUIREMENTS UNTIL STOCK SALE.—
Notwithstanding subsection (a), the require-
ments of section 754 of the Higher Education
Act of 1965 (20 U.S.C. 1132f–3), as in exist-
ence as of the day before enactment of this Act,
shall continue to be effective until the day im-
mediately following the date of closing of the
purchase of the Secretary’s stock (or the date
of closing of the final purchase, in the case of
multiple transactions) pursuant to subsection
(d) of this section.
(B) REPORTS AFTER STOCK SALE.—The
Corporation shall, not later than March 30 of
the first full calendar year immediately follow-
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ing the sale pursuant to subsection (d), and
each of the 2 succeeding years, submit to the
Secretary of Education a report describing the
Corporation’s efforts to assist in the financing
of 
education 
facilities 
projects, 
including
projects for elementary, secondary, and post-
secondary educational institution infrastructure,
and detailing, on a project-by-project basis, the
Corporation’s business dealings with edu-
cational institutions that are rated by a nation-
ally recognized statistical rating organization at
or below the organization’s third highest rat-
ings.
(d) SALE OF FEDERALLY OWNED STOCK.—
(1) SALE OF STOCK REQUIRED.—The Secretary
of the Treasury shall make every effort to sell, pur-
suant to section 324 of title 31, United States Code,
the stock of the Corporation owned by the Secretary
of Education not later than 6 months after the date
of the enactment of this Act.
(2) PURCHASE BY THE CORPORATION.—In the
event that the Secretary of the Treasury is unable
to sell the stock, or any portion thereof, at a price
acceptable to the Secretary of Education and the
Secretary of the Treasury, the Corporation shall
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purchase, within the period specified in paragraph
(1), such stock at a price determined by the Sec-
retary of the Treasury and acceptable to the Cor-
poration based on independent appraisal by one or
more nationally recognized financial firms, except
that such price shall not exceed the value of the Sec-
retary’s stock as determined by the Congressional
Budget Office in House Report 104–153, dated
June 22, 1995. Such firms shall be selected by the
Secretary of the Treasury in consultation with the
Secretary of Education and the Corporation.
(e) ASSISTANCE BY THE CORPORATION.—The Cor-
poration shall provide such assistance as the Secretary of
the Treasury and the Secretary of Education may require
to facilitate the sale of the stock under this section.
(f) DEFINITION.—As used in this section, the term
‘‘Corporation’’ means the Corporation established pursu-
ant to the provision of law repealed by subsection (a).
SEC. 4011. ELIGIBLE INSTITUTION.
(a) AMENDMENTS.—Section 481(b) of the Higher
Education Act of 1965 (20 U.S.C. 1088(b)) is amended—
(1) by inserting before the period at the end of
the first sentence the following: ‘‘on the basis of a
review by the institution’s independent auditor using
generally accepted accounting principles’’; and
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(2) by inserting after the end of such first sen-
tence the following new sentences: ‘‘For the purposes
of clause (6), revenues from sources that are not de-
rived from funds provided under this title include
revenues from programs of education or training
that do not meet the definition of an eligible pro-
gram in subsection (e), but are provided on a con-
tractual basis under Federal, State, or local training
programs, or to business and industry. For the pur-
poses of determining whether an institution meets
the requirements of clause (6), the Secretary shall
not consider the financial information of any institu-
tion for a fiscal year began on or before April 30,
1994.’’.
(b) EFFECTIVE DATE.—Notwithstanding section 713
of this Act, the amendments made by subsection (a) shall
apply to any determination made on or after July 1, 1994,
by the Secretary of Education pursuant to section
481(b)(6) of the Higher Education Act of 1965.
SEC. 4012. EXTENSION OF PROGRAM DURATION.
Part B of title IV of the Higher Education Act of
1965 is amended—
(1) in section 424(a) (20 U.S.C. 1074(a)), by
striking ‘‘1998’’ and inserting ‘‘2002’’;
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(2) 
in 
section 
428(a)(5) 
(20 
U.S.C.
1078(a)(5))—
(A) by striking ‘‘2002’’ and inserting
‘‘2006’’; and
(B) by striking ‘‘1998’’ and inserting
‘‘2002’’; and
(3) in section 428C(e) (20 U.S.C. 1078-3(e)),
by striking the first sentence and inserting ‘‘The au-
thority to make loans under this section expires at
the close of September 30, 2002.’’.
Subtitle B—Service Contract
Repeal
SEC. 4101. SERVICE CONTRACT ACT OF 1965.
(a) REPEAL.—The Service Contract Act of 1965 (41
U.S.C. 351 et seq.) is repealed.
(b) APPLICATION.—The amendment made by sub-
section (a) shall not apply to a contract which was entered
into before the 45th day after the date of the enactment
of this Act and to which the Service Contract Act of 1965
applied.
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Subtitle C—Provisions Relating to
the Employee Retirement In-
come Security Act of 1974
SEC. 4201. WAIVER OF MINIMUM PERIOD FOR JOINT AND
SURVIVOR ANNUITY EXPLANATION BEFORE
ANNUITY STARTING DATE.
(a) GENERAL
RULE.—For purposes of section
205(c)(3)(A) of the Employee Retirement Income Security
Act of 1974 (29 U.S.C. 1055(c)(3)(A)), the minimum pe-
riod prescribed by the Secretary of the Treasury between
the date that the explanation referred to in such section
is provided and the annuity starting date shall not apply
if waived by the participant and, if applicable, the partici-
pant’s spouse.
(b) EFFECTIVE DATE.—Subsection (a) shall apply to
plan years beginning after December 31, 1995.
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TITLE V—COMMITTEE ON GOV-
ERNMENT 
REFORM 
AND
OVERSIGHT
Subtitle A—Federal Employee and
Congressional Benefits; Avail-
ability of Surplus Property for
Homeless Assistance
SEC. 5001. EXTENSION OF DELAY IN COST-OF-LIVING AD-
JUSTMENTS IN FEDERAL EMPLOYEE RETIRE-
MENT BENEFITS THROUGH FISCAL YEAR
2002.
Section 11001(a) of the Omnibus Budget Reconcili-
ation Act of 1993 (Public Law 103–66; 107 Stat. 408)
is amended in the matter preceding paragraph (1) by
striking out ‘‘or 1996,’’ and inserting in lieu thereof
‘‘1996, 1997, 1998, 1999, 2000, 2001, or 2002,’’.
SEC. 5002. INCREASED CONTRIBUTIONS TO FEDERAL CI-
VILIAN RETIREMENT SYSTEMS.
(a) CIVIL SERVICE RETIREMENT SYSTEM.—
(1) DEDUCTIONS.—The first sentence of section
8334(a)(1) of title 5, United States Code, is amend-
ed to read as follows: ‘‘The employing agency shall
deduct and withhold from the basic pay of an em-
ployee, Member, Congressional employee, law en-
forcement officer, firefighter, bankruptcy judge,
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judge of the United States Court of Appeals for the
Armed Forces, United States magistrate, Claims
Court judge, or member of the Capitol Police, as the
case may be, the percentage of basic pay applicable
under subsection (c).’’.
(2) AGENCY CONTRIBUTIONS.—
(A) INCREASE IN AGENCY CONTRIBUTIONS
DURING
CALENDAR
YEARS
1996
THROUGH
2002.—Section 8334(a)(1) of title 5, United
States Code (as amended by this section) is fur-
ther amended—
(i) by inserting ‘‘(A)’’ after ‘‘(1)’’; and
(ii) by adding at the end thereof the
following new subparagraph:
‘‘(B)(i) 
Notwithstanding 
subparagraph
(A), the agency contribution under the second
sentence of such subparagraph, during the pe-
riod beginning on January 1, 1996, through
December 31, 2002—
‘‘(I) for each employing agency (other
than the United States Postal Service)
shall be 8.5 percent of the basic pay of an
employee, Congressional employee, and a
Member of Congress, 9 percent of the
basic pay of a law enforcement officer, a
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member of the Capitol Police, and a fire-
fighter, and 9.5 percent of the basic pay of
a Claims Court judge, a United States
magistrate, a judge of the United States
Court of Appeals for the Armed Services,
and a bankruptcy judge, as the case may
be; and
‘‘(II) for the United States Postal
Service shall be 7 percent of the basic pay
of an employee and 9 percent of the basic
pay of a law enforcement officer.’’.
(B) NO REDUCTION IN AGENCY CONTRIBU-
TIONS BY THE POSTAL SERVICE.—Agency con-
tributions by the United States Postal Service
under section 8348(h) of title 5, United States
Code—
(i) shall not be reduced as a result of
the amendments made under paragraph
(3) of this subsection; and
(ii) shall be computed as though such
amendments had not been enacted.
(3) INDIVIDUAL DEDUCTIONS, WITHHOLDINGS,
AND DEPOSITS.—The table under section 8334(c) of
title 5, United States Code, is amended—
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(A) in the matter relating to an employee
by striking out
‘‘7 ........
After December 31,
1969.’’
and inserting in lieu thereof the following:
‘‘7 ........
January 1, 1970, to De-
cember 31, 1995.
7.25 ...
January 1, 1996, to De-
cember 31, 1996.
7.4 .....
January 1, 1997, to De-
cember 31, 1997.
7.5 .....
January 1, 1998, to De-
cember 31, 2002.
7 ........
After December 31,
2002.’’;
(B) in the matter relating to a Member or
employee for Congressional employee service by
striking out
‘‘71⁄2 ....
After December 31,
1969.’’
and inserting in lieu thereof the following:
‘‘7.5 .....
January 1, 1970, to De-
cember 31, 1995.
7.25 ...
January 1, 1996, to De-
cember 31, 1996.
7.4 .....
January 1, 1997, to De-
cember 31, 1997.
7.5 .....
January 1, 1998, to De-
cember 31, 2002.
7 ........
After December 31,
2002.’’;
(C) in the matter relating to a Member for
Member service by striking out
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‘‘8 ........
After December 31,
1969.’’
and inserting in lieu thereof the following:
‘‘8 ........
January 1, 1970, to De-
cember 31, 1995.
7.25 ...
January 1, 1996, to De-
cember 31, 1996.
7.4 .....
January 1, 1997, to De-
cember 31, 1997.
7.5 .....
January 1, 1998, to De-
cember 31, 2002.
7 ........
After December 31,
2002.’’;
(D) in the matter relating to a law enforce-
ment officer for law enforcement service and
firefighter for firefighter service by striking out
‘‘71⁄2 ....
After December 31,
1974.’’
and inserting in lieu thereof the following:
‘‘7.5 .....
January 1, 1975, to De-
cember 31, 1995.
7.75 ...
January 1, 1996, to De-
cember 31, 1996.
7.9 .....
January 1, 1997, to De-
cember 31, 1997.
8 ........
January 1, 1998, to De-
cember 31, 2002.
7.5 .....
After December 31,
2002.’’;
(E) in the matter relating to a bankruptcy
judge by striking out
‘‘8 ........
After December 31,
1983.’’
and inserting in lieu thereof the following:
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‘‘8 ........
January 1, 1984, to De-
cember 31, 1995.
8.25 ...
January 1, 1996, to De-
cember 31, 1996.
8.4 .....
January 1, 1997, to De-
cember 31, 1997.
8.5 .....
January 1, 1998, to De-
cember 31, 2002.
8 ........
After December 31,
2002.’’;
(F) in the matter relating to a judge of the
United States Court of Appeals for the Armed
Forces for service as a judge of that court by
striking out
‘‘8 ........
On and after the date of
the enactment of the
Department of De-
fense Authorization
Act, 1984.’’
and inserting in lieu thereof the following:
‘‘8 ........
The date of the enact-
ment of the Depart-
ment of Defense Au-
thorization Act, 1984,
to December 31,
1995.
8.25 ...
January 1, 1996, to De-
cember 31, 1996.
8.4 .....
January 1, 1997, to De-
cember 31, 1997.
8.5 .....
January 1, 1998, to De-
cember 31, 2002.
8 ........
After December 31,
2002.’’;
(G) in the matter relating to a United
States magistrate by striking out
‘‘8 ........
After September 30,
1987.’’
and inserting in lieu thereof the following:
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‘‘8 ........
October 1, 1987, to De-
cember 31, 1995.
8.25 ...
January 1, 1996, to De-
cember 31, 1996.
8.4 .....
January 1, 1997, to De-
cember 31, 1997.
8.5 .....
January 1, 1998, to De-
cember 31, 2002.
8 ........
After December 31,
2002.’’;
(H) in the matter relating to a Claims
Court judge by striking out
‘‘8 ........
After September 30,
1988.’’
and inserting in lieu thereof the following:
‘‘8 ........
October 1, 1988, to De-
cember 31, 1995.
8.25 ...
January 1, 1996, to De-
cember 31, 1996.
8.4 .....
January 1, 1997, to De-
cember 31, 1997.
8.5 .....
January 1, 1998, to De-
cember 31, 2002.
8 ........
After December 31,
2002.’’;
and
(I) by inserting after the matter relating to
a Claims Court judge the following:
‘‘Member of the Capitol Police ..................
2.5 .......
August 1, 1920, to
June 30, 1926.
‘‘3.5 .....
July 1, 1926, to June
30, 1942.
‘‘5 ........
July 1, 1942, to June
30, 1948.
‘‘6 ........
July 1, 1948, to Octo-
ber 31, 1956.
‘‘6.5 .....
November 1, 1956, to
December 31, 1969.
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‘‘7.5 .....
January 1, 1970, to De-
cember 31, 1995.
‘‘7.75 ...
January 1, 1996, to De-
cember 31, 1996.
‘‘7.9 .....
January 1, 1997, to De-
cember 31, 1997.
‘‘8 ........
January 1, 1998, to De-
cember 31, 2002.
‘‘7.5 .....
After December 31,
2002.’’.
(4) OTHER SERVICE.—
(A) MILITARY SERVICE.—Section 8334(j)
of title 5, United States Code, is amended—
(i) in paragraph (1)(A) by inserting
‘‘and subject to paragraph (5),’’ after ‘‘Ex-
cept as provided in subparagraph (B),’’;
and
(ii) by adding at the end thereof the
following new paragraph:
‘‘(5) Effective with respect to any period of military
service after December 31, 1995, the percentage of basic
pay under section 204 of title 37 payable under paragraph
(1) shall be equal to the same percentage as would be ap-
plicable under section 8334(c) for that same period for
service as an employee, subject to paragraph (1)(B).’’.
(B) 
VOLUNTEER
SERVICE.—Section
8334(l) of title 5, United States Code, is
amended—
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(i) in paragraph (1) by adding at the
end thereof the following: ‘‘This paragraph
shall be subject to paragraph (4).’’; and
(ii) by adding at the end thereof the
following new paragraph:
‘‘(4) Effective with respect to any period of service
after December 31, 1995, the percentage of the readjust-
ment allowance or stipend (as the case may be) payable
under paragraph (1) shall be equal to the same percentage
as would be applicable under section 8334(c) for that same
period for service as an employee.’’.
(b) FEDERAL EMPLOYEES RETIREMENT SYSTEM.—
(1) 
INDIVIDUAL
DEDUCTIONS
AND
WITHHOLDINGS.—
(A) IN GENERAL.—Section 8422(a) of title
5, United States Code, is amended by striking
out paragraph (2) and inserting in lieu thereof
the following:
‘‘(2) The percentage to be deducted and withheld
from basic pay for any pay period shall be equal to—
‘‘(A) the applicable percentage under paragraph
(3), minus
‘‘(B) the percentage then in effect under section
3101(a) of the Internal Revenue Code of 1986 (re-
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lating to rate of tax for old-age, survivors, and dis-
ability insurance).
‘‘(3) The applicable percentage under this paragraph,
for civilian service shall be as follows:
‘‘Per-
centage
of basic
pay
Service period
Employee ...................................................
7 ..........
Before January 1,
1996.
7.25 .....
January 1, 1996, to De-
cember 31, 1996.
7.4 .......
January 1, 1997, to De-
cember 31, 1997.
7.5 .......
January 1, 1998, to De-
cember 31, 2002.
7 ..........
After December 31,
2002.
Congressional employee ...........................
7.5 .......
Before January 1,
1996.
7.25 .....
January 1, 1996, to De-
cember 31, 1996.
7.4 .......
January 1, 1997, to De-
cember 31, 1997.
7.5 .......
January 1, 1998, to De-
cember 31, 2002.
7 ..........
After December 31,
2002.
Member ....................................................
7.5 .......
Before January 1,
1996.
7.25 .....
January 1, 1996, to De-
cember 31, 1996.
7.4 .......
January 1, 1997, to De-
cember 31, 1997.
7.5 .......
January 1, 1998, to De-
cember 31, 2002.
7 ..........
After December 31,
2002.
Law enforcement officer, firefighter,
member of the Capitol Police, or air
traffic controller.
7.5 .......
Before January 1,
1996.
7.75 .....
January 1, 1996, to De-
cember 31, 1996.
7.9 .......
January 1, 1997, to De-
cember 31, 1997.
8 ..........
January 1, 1998, to De-
cember 31, 2002.
7.5 .......
After December 31,
2002.’’
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(B) MILITARY SERVICE.—Section 8422(e)
of title 5, United States Code, is amended—
(i) in paragraph (1)(A) by inserting
‘‘and subject to paragraph (6),’’ after ‘‘Ex-
cept as provided in subparagraph (B),’’;
and
(ii) by adding at the end thereof the
following:
‘‘(6) The percentage of basic pay under section
204 of title 37 payable under paragraph (1), with
respect to any period of military service performed
during—
‘‘(A) January 1, 1996, through December
31, 1996, shall be 3.25 percent;
‘‘(B) January 1, 1997, through December
31, 1997, shall be 3.4 percent; and
‘‘(C) January 1, 1998, through December
31, 2002, shall be 3.5 percent.’’.
(C) 
VOLUNTEER
SERVICE.—Section
8422(f) of title 5, United States Code, is
amended—
(i) in paragraph (1) by adding at the
end thereof the following: ‘‘This paragraph
shall be subject to paragraph (4).’’; and
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(ii) by adding at the end the follow-
ing:
‘‘(4) The percentage of the readjustment allow-
ance or stipend (as the case may be) payable under
paragraph (1), with respect to any period of volun-
teer service performed during—
‘‘(A) January 1, 1996, through December
31, 1996, shall be 3.25 percent;
‘‘(B) January 1, 1997, through December
31, 1997, shall be 3.4 percent; and
‘‘(C) January 1, 1998, through December
31, 2002, shall be 3.5 percent.’’.
(2) NO
REDUCTION
IN
AGENCY
CONTRIBU-
TIONS.—Agency contributions under section 8423
(a) and (b) of title 5, United States Code, shall not
be reduced as a result of the amendments made
under paragraph (1) of this subsection.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect on the first day of the first
applicable pay period beginning on or after January 1,
1996.
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SEC. 5003. FEDERAL RETIREMENT PROVISIONS RELATING
TO MEMBERS OF CONGRESS AND CONGRES-
SIONAL EMPLOYEES.
(a) RELATING TO THE YEARS OF SERVICE AS A
MEMBER OF CONGRESS AND CONGRESSIONAL EMPLOY-
EES FOR PURPOSES OF COMPUTING AN ANNUITY.—
(1) CSRS.—Section 8339 of title 5, United
States Code, is amended—
(A) in subsection (a) by inserting ‘‘or
Member’’ after ‘‘employee’’; and
(B) by striking out subsections (b) and (c).
(2) FERS.—Section 8415 of title 5, United
States Code, is amended—
(A) by striking out subsections (b) and (c);
(B) in subsections (a) and (g) by inserting
‘‘or Member’’ after ‘‘employee’’ each place it
appears; and
(C) in subsection (g)(2) by striking out
‘‘Congressional employee’’.
(3) CAPITOL POLICE.—Section 8339(q) of title
5, United States Code, is amended—
(A) by striking ‘‘subsection (b),’’ and in-
serting ‘‘subsection (b) (as last in effect),’’; and
(B) by striking ‘‘subsection (b)(2),’’ and
inserting ‘‘subsection (b)(2) (as last in effect),’’.
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(b) ADMINISTRATIVE REGULATIONS.—The Secretary
of the Senate and the Clerk of the House of Representa-
tives, in consultation with the Office of Personnel Manage-
ment, may prescribe regulations to carry out the provi-
sions of this section and the amendments made by this
section for applicable employees and Members of Con-
gress.
(c) EFFECTIVE DATES.—
(1) YEARS
OF
SERVICE; ANNUITY
COMPUTA-
TION.—(A) The amendments made by subsection (a)
shall take effect on the date of the enactment of this
Act and shall apply only with respect to the com-
putation of an annuity relating to—
(i) the service of a Member of Congress as
a Member or as a Congressional employee per-
formed on or after January 1, 1996; and
(ii) the service of a Congressional employee
as a Congressional employee performed on or
after January 1, 1996.
(B) An annuity shall be computed as though
the amendments made under subsection (a) had not
been enacted with respect to—
(i) the service of a Member of Congress as
a Member or a Congressional employee or mili-
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tary service performed before January 1, 1996;
and
(ii) the service of a Congressional employee
as a Congressional employee or military service
performed before January 1, 1996.
(2) REGULATIONS.—The provisions of sub-
section (b) shall take effect on the date of the enact-
ment of this Act.
SEC. 5004. FEDERAL EMPLOYEES RETIREMENT SECURITY
COMMISSION.
(a) ESTABLISHMENT.—There shall be established in
the legislative branch a commission to be known as the
‘‘Federal Employees Retirement Security Commission’’
(hereinafter in this section referred to as the ‘‘Commis-
sion’’).
(b) MEMBERS.—
(1) APPOINTMENT.—The Commission shall be
composed of 7 members, to be appointed within 30
days after the date of the enactment of this Act, as
follows:
(A) 2 members appointed by the Speaker
of the House of Representatives.
(B) 2 members appointed by the majority
leader of the Senate.
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(C) 1 member appointed by the minority
leader of the House of Representatives.
(D) 1 member appointed by the minority
leader of the Senate.
(E) 1 member appointed by the President.
(2) CHAIRMAN; VICE CHAIRMAN.—The members
of the Commission shall select 1 of the members to
be the Chairman and another to be the Vice Chair-
man of the Commission.
(3) TERMS.—Each member shall be appointed
for the life of the Commission.
(4) PAY AND TRAVEL EXPENSES.—
(A) PAY
GENERALLY.—Each member,
other than the Chairman, shall be paid at a
rate not to exceed the daily equivalent of the
annual rate of basic pay payable for level IV of
the Executive Schedule under section 5315 of
title 5, United States Code, for each day (in-
cluding travel time) during which such member
is engaged in the actual performance of duties
vested in the Commission.
(B) PAY FOR THE CHAIRMAN.—The Chair-
man shall be paid, for each day referred to in
subparagraph (A), at a rate not to exceed the
daily equivalent of the annual rate of basic pay
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payable for level III of the Executive Schedule
under section 5314 of title 5, United States
Code.
(C) TRAVEL EXPENSES.—Each member of
the Commission shall, subject to the availability
of appropriations and in such amounts as may
be provided by such Act, be allowed travel ex-
penses in the same manner as any individual
employed intermittently by the Government is
allowed travel expenses under section 5703 of
title 5, United States Code.
(D) GOVERNMENT EMPLOYEES AND MEM-
BERS
OF
CONGRESS.—Notwithstanding any
other provision of this paragraph, members of
the Commission who are full-time officers or
employees of the United States or Members of
Congress may not receive additional pay, allow-
ances, or benefits by reason of their service on
the Commission, except for travel expenses
under subparagraph (C).
(5) VACANCIES.—A vacancy in the Commission
shall be filled in the manner in which the original
appointment was made.
(c) MEETINGS.—
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(1) OPEN
MEETINGS.—Each meeting of the
Commission, other than meetings in which classified
information is to be discussed, shall be open to the
public.
(2) ACCESS BY REQUEST.—
(A) IN GENERAL.—All the proceedings, in-
formation, and deliberations of the Commission
shall be open, upon request, to the Chairman
and the ranking minority party member of the
respective committees under subparagraph (B)
or such chairmen or ranking minority party
members of subcommittees of any such commit-
tee as may be designated by the Chairman or
ranking minority party member, respectively, of
such committee.
(B) IDENTIFICATION
OF
COMMITTEES.—
The committees under this subparagraph are as
follows:
(i) The Committee on Government
Reform and Oversight of the House of
Representatives.
(ii) The Committee on National Secu-
rity of the House of Representatives.
(iii) The Committee on Governmental
Affairs of the Senate.
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‘‘(A) the appropriate State disbursing official
requests that an offset be performed; and
‘‘(B) a reciprocal agreement with the State is in
effect which contains, at a minimum—
‘‘(i) requirements substantially equivalent
to subsection (b) of this section; and
‘‘(ii) any other requirements which the
Secretary considers appropriate to facilitate the
offset and prevent duplicative efforts.
‘‘(2) This subsection does not apply to—
‘‘(A) the collection of a debt or claim on which
the administrative costs associated with the collec-
tion of the debt or claim exceed the amount of the
debt or claim;
‘‘(B) any collection of any other type, class, or
amount of claim, as the Secretary considers nec-
essary to protect the interest of the United States;
or
‘‘(C) the disbursement of any class or type of
payment exempted by the Secretary of the Treasury
at the request of a Federal agency.’’.
SEC. 5215. TECHNICAL AND CONFORMING AMENDMENTS.
(a) TITLE 31.—Title 31, United States Code, is
amended—
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(1) in section 3322(a), by inserting ‘‘section
3716 and section 3720A of this title and’’ after ‘‘Ex-
cept as provided in’’;
(2) in section 3325(a)(3), by inserting ‘‘or pur-
suant to payment intercepts or offsets pursuant to
section 3716 or 3720A of this title,’’ after ‘‘vouch-
er’’; and
(3) in each of sections 3711(e)(2) and 3717(h)
by inserting ‘‘, the Secretary of the Treasury,’’ after
‘‘Attorney General’’.
(b) INTERNAL REVENUE CODE
OF 1986.—Sub-
section 6103(l)(10)(A) of the Internal Revenue Code of
1986 (26 U.S.C. 6103(l)(10)(A)) is amended—
(1) in subparagraph (A), by inserting ‘‘and to
officers and employees of the Department of the
Treasury in connection with such reduction’’ after
‘‘6402’’; and
(2) in subparagraph (B), by inserting ‘‘and offi-
cers and employees of the Department of the Treas-
ury’’ after ‘‘agency’’ the first place it appears.
Subpart B—Salary Offset Authority
SEC. 5221. ENHANCEMENT OF SALARY OFFSET AUTHORITY.
Section 5514 of title 5, United States Code, is
amended—
(1) in subsection (a)—