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I and III, respectively, for official reception and representa-
tion expenses; the Director of the Federal Mediation and
Conciliation Service is authorized to make available for of-
ficial reception and representation expenses not to exceed
$2,500 from the funds available for ‘‘Salaries and expenses,
Federal Mediation and Conciliation Service’’; and the
Chairman of the National Mediation Board is authorized
to make available for official reception and representation
expenses not to exceed $2,500 from funds available for ‘‘Sal-
aries and expenses, National Mediation Board’’.
SEC. 505. Notwithstanding any other provision of this
Act, no funds appropriated under this Act shall be used to
carry out any program of distributing sterile needles for
the hypodermic injection of any illegal drug unless the Sec-
retary of Health and Human Services determines that such
programs are effective in preventing the spread of HIV and
do not encourage the use of illegal drugs.
SEC. 506. (a) Purchase of American-Made Equipment
and Products.—It is the sense of the Congress that, to the
greatest extent practicable, all equipment and products pur-
chased with funds made available in this Act should be
American-made.
(b) NOTICE REQUIREMENT.—In providing financial
assistance to, or entering into any contract with, any entity
using funds made available in this Act, the head of each
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Federal agency, to the greatest extent practicable, shall pro-
vide to such entity a notice describing the statement made
in subsection (a) by the Congress.
(c) PROHIBITION
OF CONTRACTS WITH PERSONS
FALSELY LABELING PRODUCTS AS MADE IN AMERICA.—
If it has been finally determined by a court or Federal agen-
cy that any person intentionally affixed a label bearing a
‘‘Made in America’’ inscription, or any inscription with
the same meaning, to any product sold in or shipped to
the United States that is not made in the United States,
the person shall be ineligible to receive any contract or sub-
contract made with funds made available in this Act, pur-
suant to the debarment, suspension, and ineligibility proce-
dures described in sections 9.400 through 9.409 of title 48,
Code of Federal Regulations.
SEC. 507. When issuing statements, press releases, re-
quests for proposals, bid solicitations and other documents
describing projects or programs funded in whole or in part
with Federal money, all grantees receiving Federal funds
included in this Act, including but not limited to State and
local governments and recipients of Federal research grants,
shall clearly state (1) the percentage of the total costs of
the program or project which will be financed with Federal
money, (2) the dollar amount of Federal funds for the
project or program, and (3) percentage and dollar amount
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of the total costs of the project or program that will be fi-
nanced by nongovernmental sources.
SEC. 508. (a) None of the funds appropriated under
this Act shall be expended for any abortion.
(b) None of the funds appropriated under this Act shall
be expended for health benefits coverage that includes cov-
erage of abortion.
(c) The term ‘‘health benefits coverage’’ means the
package of services covered by a managed care provider or
organization pursuant to a contract or other arrangement.
SEC. 509. (a) The limitations established in the preced-
ing section shall not apply to an abortion—
(1) if the pregnancy is the result of an act of
rape or incest; or
(2) in the case where a woman suffers from a
physical disorder, physical injury, or physical illness,
including a life-endangering physical condition
caused by or arising from the pregnancy itself, that
would, as certified by a physician, place the woman
in danger of death unless an abortion is performed.
(b) Nothing in the preceding section shall be construed
as prohibiting the expenditure by a State, locality, entity,
or private person of State, local, or private funds (other
than a State’s or locality’s contribution of medicaid match-
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ing funds) for abortion services or coverage of abortion by
contract or other arrangement.
(c) Nothing in the preceding section shall be construed
as restricting the ability of any managed care provider or
organization from offering abortion coverage or the ability
of a State or locality to contract separately with such a
provider for such coverage with State funds (other than a
State’s or locality’s contribution of medicaid matching
funds).
SEC. 510. Notwithstanding any other provision of
law—
(1) no amount may be transferred from an ap-
propriation account for the Departments of Labor,
Health and Human Services, and Education except
as authorized in this or any subsequent appropriation
Act, or in the Act establishing the program or activity
for which funds are contained in this Act;
(2) no department, agency, or other entity, other
than the one responsible for administering the pro-
gram or activity for which an appropriation is made
in this Act, may exercise authority for the timing of
the obligation and expenditure of such appropriation,
or for the purpose for which it is obligated and ex-
pended, except to the extent and in the manner other-
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wise provided in sections 1512 and 1513 of title 31,
United States Code; and
(3) no funds provided under this Act shall be
available for the salary (or any part thereof) of an
employee who is reassigned on a temporary detail
basis to another position in the employing agency or
department or in any other agency or department,
unless the detail is independently approved by the
head of the employing department or agency.
SEC. 511. None of the funds made available in this
Act may be used to enforce the requirements of section
428(b)(1)(U)(iii) of the Higher Education Act of 1965 with
respect to any lender when it is made known to the Federal
official having authority to obligate or expend such funds
that the lender has a loan portfolio under part B of title
IV of such Act that is equal to or less than $5,000,000.
SEC. 512. (a) None of the funds made available in this
Act may be used for—
(1) the creation of a human embryo or embryos
for research purposes; or
(2) research in which a human embryo or em-
bryos are destroyed, discarded, or knowingly subjected
to risk of injury or death greater than that allowed
for research on fetuses in utero under 45 CFR
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46.208(a)(2) and section 498(b) of the Public Health
Service Act (42 U.S.C. 289g(b)).
(b) For purposes of this section, the term ‘‘human em-
bryo or embryos’’ include any organism, not protected as
a human subject under 45 CFR 46 as of the date of the
enactment of this Act, that is derived by fertilization, par-
thenogenesis, cloning, or any other means from one or more
human gametes or human diploid cells.
SEC. 513. (a) LIMITATION ON USE OF FUNDS FOR
PROMOTION
OF LEGALIZATION
OF CONTROLLED SUB-
STANCES.—None of the funds made available in this Act
may be used for any activity when it is made known to
the Federal official having authority to obligate or expend
such funds that the activity promotes the legalization of any
drug or other substance included in schedule I of the sched-
ules of controlled substances established by section 202 of
the Controlled Substances Act (21 U.S.C. 812).
(b) EXCEPTIONS.—The limitation in subsection (a)
shall not apply when it is made known to the Federal offi-
cial having authority to obligate or expend such funds that
there is significant medical evidence of a therapeutic advan-
tage to the use of such drug or other substance or that Feder-
ally-sponsored clinical trials are being conducted to deter-
mine therapeutic advantage.
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SEC. 514. None of the funds made available in this
Act may be obligated or expended to enter into or renew
a contract with an entity when it is made known to the
Federal official having authority to obligate or expend such
funds that—
(1) such entity is otherwise a contractor with the
United States and is subject to the requirement in
section 4212(d) of title 38, United States Code, re-
garding submission of an annual report to the Sec-
retary of Labor concerning employment of certain vet-
erans; and
(2) such entity has not submitted a report as re-
quired by that section for the most recent year for
which such requirement was applicable to such entity.
SEC. 515. (a) FEES FOR FEDERAL ADMINISTRATION
OF STATE SUPPLEMENTARY SSI PAYMENTS.—
(1) OPTIONAL
STATE
SUPPLEMENTARY
PAY-
MENTS.—
(A) IN GENERAL.—Section 1616(d)(2)(B) of
the 
Social 
Security 
Act 
(42 
U.S.C.
1382e(d)(2)(B)) is amended—
(i) by striking ‘‘and’’ at the end of
clause (iii); and
(ii) by striking clause (iv) and insert-
ing the following:
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‘‘(iv) for fiscal year 1997, $5.00;
‘‘(v) for fiscal year 1998, $6.20;
‘‘(vi) for fiscal year 1999, $7.60;
‘‘(vii) for fiscal year 2000, $7.80;
‘‘(viii) for fiscal year 2001, $8.10;
‘‘(ix) for fiscal year 2002, $8.50; and
‘‘(x) for fiscal year 2003 and each succeeding fis-
cal year—
‘‘(I) the applicable rate in the preceding fis-
cal year, increased by the percentage, if any, by
which the Consumer Price Index for the month
of June of the calendar year of the increase ex-
ceeds the Consumer Price Index for the month of
June of the calendar year preceding the calendar
year of the increase, and rounded to the nearest
whole cent; or
‘‘(II) such different rate as the Commis-
sioner determines is appropriate for the State.’’.
(B) 
CONFORMING
AMENDMENT.—Section
1616(d)(2)(C) 
of 
such 
Act 
(42 
U.S.C.
1382e(d)(2)(C)) 
is 
amended 
by 
striking
‘‘(B)(iv)’’ and inserting ‘‘(B)(x)(II)’’.
(2) MANDATORY
STATE
SUPPLEMENTARY
PAY-
MENTS.—
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(A) IN GENERAL.—Section 212(b)(3)(B)(ii)
of Public Law 93–66 (42 U.S.C. 1382 note) is
amended—
(i) by striking ‘‘and’’ at the end of sub-
clause (III); and
(ii) by striking subclause (IV) and in-
serting the following:
‘‘(IV) for fiscal year 1997, $5.00;
‘‘(V) for fiscal year 1998, $6.20;
‘‘(VI) for fiscal year 1999, $7.60;
‘‘(VII) for fiscal year 2000, $7.80;
‘‘(VIII) for fiscal year 2001, $8.10;
‘‘(IX) for fiscal year 2002, $8.50; and
‘‘(X) for fiscal year 2003 and each succeeding
fiscal year—
‘‘(aa) the applicable rate in the preceding
fiscal year, increased by the percentage, if any,
by which the Consumer Price Index for the
month of June of the calendar year of the in-
crease exceeds the Consumer Price Index for the
month of June of the calendar year preceding the
calendar year of the increase, and rounded to the
nearest whole cent; or
‘‘(bb) such different rate as the Commis-
sioner determines is appropriate for the State.’’.
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(B) 
CONFORMING
AMENDMENT.—Section
212(b)(3)(B)(iii) of such Act (42 U.S.C. 1382
note) is amended by striking ‘‘(ii)(IV)’’ and in-
serting ‘‘(ii)(X)(bb)’’.
(b) USE OF NEW FEES TO DEFRAY THE SOCIAL SECU-
RITY ADMINISTRATION’S ADMINISTRATIVE EXPENSES.—
(1) CREDIT TO SPECIAL FUND FOR FISCAL YEAR
1998 AND SUBSEQUENT YEARS.—
(A) OPTIONAL STATE SUPPLEMENTARY PAY-
MENT FEES.—Section 1616(d)(4) of the Social
Security Act (42 U.S.C. 1382e(d)(4)) is amended
to read as follows:
‘‘(4)(A) The first $5 of each administration fee assessed
pursuant to paragraph (2), upon collection, shall be depos-
ited in the general fund of the Treasury of the United States
as miscellaneous receipts.
‘‘(B) That portion of each administration fee in excess
of $5, and 100 percent of each additional services fee
charged pursuant to paragraph (3), upon collection for fis-
cal year 1998 and each subsequent fiscal year, shall be cred-
ited to a special fund established in the Treasury of the
United States for State supplementary payment fees. The
amounts so credited, to the extent and in the amounts pro-
vided in advance in appropriations Acts, shall be available
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to defray expenses incurred in carrying out this title and
related laws.’’.
(B) MANDATORY
STATE
SUPPLEMENTARY
PAYMENT FEES.—Section 212(b)(3)(D) of Public
Law 93–66 (42 U.S.C. 1382 note) is amended to
read as follows:
‘‘(D)(i) The first $5 of each administration fee assessed
pursuant to subparagraph (B), upon collection, shall be de-
posited in the general fund of the Treasury of the United
States as miscellaneous receipts.
‘‘(ii) The portion of each administration fee in excess
of $5, and 100 percent of each additional services fee
charged pursuant to subparagraph (C), upon collection for
fiscal year 1998 and each subsequent fiscal year, shall be
credited to a special fund established in the Treasury of
the United States for State supplementary payment fees.
The amounts so credited, to the extent and in the amounts
provided in advance in appropriations Acts, shall be avail-
able to defray expenses incurred in carrying out this section
and title XVI of the Social Security Act and related laws.’’.
(2) LIMITATIONS ON AUTHORIZATION OF APPRO-
PRIATIONS.—From amounts credited pursuant to sec-
tion 1616(d)(4)(B) of the Social Security Act and sec-
tion 212(b)(3)(D)(ii) of Public Law 93–66 to the spe-
cial fund established in the Treasury of the United
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States for State supplementary payment fees, there is
authorized to be appropriated an amount not to ex-
ceed $35,000,000 for fiscal year 1998, and such sums
as may be necessary for each fiscal year thereafter, for
administrative expenses in carrying out the supple-
mental security income program under title XVI of
the Social Security Act and related laws.
SEC. 516. Section 520(c)(2)(D) of Departments of
Labor, Health and Human Services, and Education, and
Related Agencies Appropriations Act, 1997, is amended by
striking ‘‘September 30, 1997’’ and inserting in lieu thereof
‘‘December 31, 1997’’.
SEC. 517. Of the budgetary resources available to agen-
cies funded in this Act for salaries and expenses during fis-
cal year 1998, $75,500,000, to be allocated by the Office
of Management and Budget, are permanently canceled: Pro-
vided further, That this provision shall not apply to the
Food and Drug Administration and the Indian Health
Service.
SEC. 518. REPEAL OF TOBACCO INDUSTRY SETTLE-
MENT CREDIT.—Subsection (k) of section 9302 of the Bal-
anced Budget Act of 1997, as added by section 1604(f)(3)
of the Taxpayer Relief Act of 1997, is repealed.
SEC. 519. (a) GENERAL LIMITATION.—Notwithstand-
ing any other provision of law, if any attorneys’ fees are
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paid (on behalf of attorneys for the plaintiffs or defendants)
in connection with an action maintained by a State
against one or more tobacco companies to recover tobacco-
related medicaid expenditures or for other causes of action
involved in the national tobacco settlement agreement, such
fees shall—
(1) not be paid at a rate that exceeds $250 per
hour; and
(2) be limited to a total of $5,000,000.
(b) FEE ARRANGEMENTS.—Subsection (a) shall apply
to attorneys’ fees provided for or in connection with an ac-
tion of the type described in such subsection under any—
(1) court order;
(2) settlement agreement;
(3) contingency fee arrangement;
(4) arbitration procedure;
(5) alternative dispute resolution procedure (in-
cluding mediation); or
(6) other arrangement providing for the payment
of attorneys’ fees.
(c) EXPENSES.—The limitation described in sub-
section (a) shall not apply to any amounts provided for
the attorneys’ reasonable and customary expenses.
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(d) REQUIREMENTS.—No award of attorneys’ fees
shall be made under any national tobacco settlement until
the attorneys involved have—
(1) provided to the Governor of the appropriate
State, a detailed time accounting with respect to the
work performed in relation to any legal action which
is the subject of the settlement or with regard to the
settlement itself; and
(2) made public disclosure of the time accounting
under paragraph (1) and any fee agreements entered
into, or fee arrangements made, with respect to any
legal action that is the subject of the settlement.
(e) PROVISION OF FUNDS FOR CHILDREN’S HEALTH
RESEARCH.—Any amounts provided for attorneys’ fees in
excess of the limitation applicable under this section shall
be paid into the Treasury for use by the National Institutes
of Health for research relating to children’s health.
(f) EFFECTIVE DATE.—The limitation on the payment
of attorneys’ fees contained in this section shall become effec-
tive on the date of enactment of any Act providing for a
national tobacco settlement.
SEC. 520. SENSE OF THE SENATE ON COMPENSATION
FOR TOBACCO GROWERS AS PART OF LEGISLATION ON THE
NATIONAL TOBACCO SETTLEMENT. (a) FINDINGS.—
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(1) On June 20, 1997, representatives of tobacco
manufacturers, public health organizations, and At-
torneys General from a majority of the States an-
nounced that an agreement had been reached on a na-
tional tobacco settlement;
(2) the national tobacco settlement was intended
to provide a comprehensive framework for dealing
with several issues relevant to the tobacco industry,
including youth smoking prevention, legal liabilities,
and the sales and marketing practices of the industry;
(3) implementation of the national tobacco settle-
ment requires the enactment of Federal legislation by
the Congress and the President;
(4) there are more than 125,000 farms in the
United States which derive a substantial portion of
their income from the cultivation and sale of tobacco;
(5) representatives of tobacco growers were com-
pletely excluded from the negotiations on the national
tobacco settlement, and were poorly informed, or not
informed at all, of any details of the settlement nego-
tiations by any participants in those negotiations;
(6) the national tobacco settlement includes com-
pensation for several adversely affected groups, in-
cluding NASCAR, rodeo, and other event sponsors,
but includes absolutely no compensation whatsoever
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or other provisions relating to the impact of the settle-
ment on tobacco growers;
(7) no other group has their livelihoods affected
by the national tobacco settlement as adversely as to-
bacco growers;
(8) the local economies of tobacco growing com-
munities will be adversely affected by implementation
of the national tobacco settlement;
(9) the national tobacco settlement contemplates
$368,500,000,000 in payments from tobacco manufac-
turers over the next 25 years, and not all of this
amount has been specifically earmarked by the agree-
ment; and
(10) the Federal tobacco program was designed
to operate at no net cost to the Federal taxpayer, the
national tobacco settlement does not contemplate any
changes to the operation of this program, and even
many critics of the national tobacco settlement, in-
cluding representatives from the public health commu-
nity, have expressed support for the continued oper-
ation of a Federal tobacco program which operates at
no net cost to taxpayers.
(b) SENSE OF THE SENATE.—It is the sense of the Sen-
ate that—
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(1) tobacco growers should be fairly compensated
as part of any Federal legislation for the adverse im-
pact which will follow from the enactment of the na-
tional tobacco settlement;
(2) tobacco growing communities should be pro-
vided sufficient resources to adequately adjust to the
impact on their local economies which will result
from the enactment of the national tobacco settlement;
(3) any compensation provided to tobacco grow-
ers and tobacco growing communities as part of Fed-
eral legislation to implement the national tobacco set-
tlement 
should 
be 
included 
within 
the
$368,500,000,000 in payments which are to be pro-
vided over the next 25 years; and
(4) No provisions should be included in any Fed-
eral legislation to implement the national tobacco set-
tlement which would restrict or adversely affect the
continued administration of a viable Federal tobacco
program which operates at no net cost to the tax-
payer.
SEC. 521. Nothing in this Act may be construed to
interfere with, or abrogate, any agreement previously en-
tered into between any State and any private attorney or
attorneys with respect to litigation involving tobacco.
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SEC. 522. It is the sense of the Senate that attorneys’
fees paid in connection with an action maintained by a
State against one or more tobacco companies to recover to-
bacco-related costs affected by Federal tobacco settlement
legislation should be publicly disclosed and should not dis-
place spending in the settlement legislation intended for
public health.
SEC. 523. (a) Notwithstanding any other provision of
law, the Secretary of Education shall award the total
amount of funds described in subsection (b) directly to local
educational agencies in accordance with subsection (d) to
enable the local educational agencies to support programs
or activities for kindergarten through grade 12 students that
the local educational agencies deem appropriate.
(b) The total amount of funds referred to in subsection
(a) are all funds that are appropriated for the Department
of Education under this Act to support programs or activi-
ties for kindergarten through grade 12 students, other
than—
(1) amounts appropriated under this Act—
(A) to carry out title VIII of the Elemen-
tary and Secondary Education Act of 1965;
(B) to carry out the Individuals with Dis-
abilities Education Act;
(C) to carry out the Adult Education Act;
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(D) to carry out the Museum and Library
Services Act;
(E) for departmental management expenses
of the Department of Education; or
(F) to carry out the Educational Research,
Development, Dissemination, and Improvement
Act;
(G) to carry out the National Education
Statistics Act of 1994;
(H) to carry out section 10601 of the Ele-
mentary and Secondary Education Act of 1965;
(I) to carry out section 2102 of the Elemen-
tary and Secondary Education Act of 1965;
(J) to carry out part K of the Elementary
and Secondary Education Act of 1965;
(K) to carry out subpart 5 of part A of title
IV of the Higher Education Act of 1965; or
(L) to carry out title I of the Elementary
and Secondary Education Act of 1965; or
(2) 50 percent of the amount appropriated under
title III under the headings ‘‘Rehabilitation Services
and Disability Research’’ and ‘‘Vocational and Adult
Education’’.
(c) Each local educational agency shall conduct a cen-
sus to determine the number of kindergarten through grade
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12 students served by the local educational agency not later
than 21 days after the beginning of the school year. Each
local educational agency shall submit the number to the
Secretary.
(d) The Secretary shall determine the amount awarded
to each local educational agency under subsection (a) as fol-
lows:
(1) First, the Secretary, using the information
provided under subsection (c), shall determine a per
child amount by dividing the total amount of funds
described in subsection (b), by the total number of
kindergarten through grade 12 students in all States.
(2) Second, the Secretary, using the information
provided under subsection (c), shall determine the
baseline amount for each local educational agency by
multiplying the per child amount determined under
paragraph (1) by the number of kindergarten through
grade 12 students that are served by the local edu-
cational agency.
(3) Lastly, the Secretary shall compute the
amount awarded to each local educational agency as
follows:
(A) Multiply the baseline amount deter-
mined under paragraph (2) by a factor of 1.1 for
local educational agencies serving States that are
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in the least wealthy quintile of all States as de-
termined by the Secretary on the basis of the per
capita income of individuals in the States.
(B) Multiply the baseline amount by a fac-
tor of 1.05 for local educational agencies serving
States that are in the second least wealthy such
quintile.
(C) Multiply the baseline amount by a fac-
tor of 1.00 for local educational agencies serving
States that are in the third least wealthy such
quintile.
(D) Multiply the baseline amount by a fac-
tor of .95 for local educational agencies serving
States that are in the fourth least wealthy such
quintile.
(E) Multiply the baseline amount by a fac-
tor of .90 for local educational agencies serving
States that are in the wealthiest such quintile.
(4) Notwithstanding paragraph (3), the Sec-
retary shall compute the amount awarded to each
local educational agency serving the State of Alaska
or Hawaii by multiplying the base line amount deter-
mined under paragraph (2) for the local educational
agency by a factor of 1.00.
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(e) If the total amount of funds described in subsection
(b) that are made available to carry out subsection (a) is
insufficient to pay in full all amounts awarded under sub-
section (d), then the Secretary shall ratably reduce each
such amount.
(f) If the Secretary determines that a local educational
agency has knowingly submitted false information under
subsection (c) for the purpose of gaining additional funds
under subsection (a), then the local educational agency shall
be fined an amount equal to twice the difference between
the amount the local educational agency received under sub-
section (d), and the correct amount the local educational
agency would have received if the agency had submitted ac-
curate information under subsection (c).
(g)(1) Notwithstanding any other provision of law, the
Secretary of Education shall award the total amount of
funds made available under this Act to carry out title I
of the Elementary and Secondary Education Act of 1965
for fiscal year 1998 directly to local educational agencies
in accordance with paragraph (2) to enable the local edu-
cational agencies to support programs or activities for kin-
dergarten through grade 12 students that the local edu-
cational agencies deem appropriate.
(2) Each local educational agency shall receive an
amount awarded under this subsection that bears the same
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relation to the total amount of funds made available under
this Act to carry out title I of the Elementary and Second-
ary Education Act of 1965 for fiscal year 1998 as the num-
ber of children counted under section 1124(c) of such Act
for the local educational agency for fiscal year 1997 bears
to the total number of students so counted for all local edu-
cational agencies for fiscal year 1997.
(h) Notwithstanding any other provision of this sec-
tion, the total amount awarded to local educational agencies
in each State under this section shall not be less than the
net dollars that States would have received absent the provi-
sions of this section.
(i) In this section—
(1) the term ‘‘local educational agency’’ has the
meaning given the term in section 14101 of the Ele-
mentary and Secondary Education Act of 1965;
(2) the term ‘‘Secretary’’ means the Secretary of
Education; and
(3) the term ‘‘State’’ means each of the several
States of the United States, the District of Columbia,
the Commonwealth of Puerto Rico, Guam, American
Samoa, the Commonwealth of the Northern Mariana
Islands, the United States Virgin Islands, the Repub-
lic of the Marshall Islands, the Federated States of
Micronesia, and the Republic of Palau.
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SEC. 524. (a) Notwithstanding any other provision of
law, the Office of Educational Research and Improvement
shall submit to the Committee on Appropriations of the
Senate a spending plan for activities funded under this title
under the heading ‘‘EDUCATION RESEARCH, STATISTICS,
AND IMPROVEMENT’’, prior to the obligation of the funds.
(b)(1) Notwithstanding any other provision of law, the
National Assessment Governing Board established under
section 412 of the National Education Statistics Act of 1994
(20 U.S.C. 9011) (hereafter in this section referred to as
the ‘‘Board’’) shall hereafter have exclusive authority over
all policies, direction, and guidelines for establishing and
implementing voluntary national tests for 4th grade Eng-
lish reading and 8th grade mathematics: Provided, That the
tests shall be made available to a State, local educational
agency, or private or parochial school, upon the request of
the State, agency, or school, and the use of the tests shall
not be a condition for receiving any Federal funds: Pro-
vided further, That within 90 days after the date of enact-
ment of this Act, the Board shall review the national test
development contract in effect on the date of enactment of
this Act, and modify the contract as the Board determines
necessary: Provided further, That if the contract cannot be
modified to the extent determined necessary by the Board,
the contract shall be terminated and the Board shall nego-
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tiate a new contract, under the Board’s exclusive control,
for the tests.
(2) In exercising the Board’s responsibilities under
paragraph (1) regarding the national tests, and notwith-
standing any action undertaken by the Department of Edu-
cation or a person contracting with or providing services
for the Department regarding the planning, or the develop-
ment of specifications, for the tests, the Board shall—
(A) ensure that the content and standards for the
tests are the same as the content and standards for
the National Assessment;
(B) exercise exclusive authority over any expert
panel or advisory committee that will be or is estab-
lished with respect to the tests;
(C) ensure that the tests are linked to the Na-
tional Assessment to the maximum degree possible;
(D) develop test objectives, test specifications,
and test methodology;
(E) develop policies for test administration, in-
cluding guidelines for inclusion of, and accommoda-
tions for, students with disabilities and students with
limited English proficiency;
(F) develop policies for reporting test results, in-
cluding the use of standards or performance levels,
and for test use;
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(G) have final authority over the appropriate-
ness of all test items;
(H) ensure that all items selected for use on the
tests are free from racial, cultural, or gender bias;
and
(I) take such actions and make such policies as
the Board determines necessary.
(c) No State or local educational agency may require
any private or parochial school student, or home-schooled
individual, to take any test developed under this Act with-
out the written consent of the student or individual.
(d) Section 412 of the National Education Statistics
Act of 1994 (20 U.S.C. 9011) is amended—
(1) in subsection (b)(1)—
(A) by amending subparagraph (A) to read
as follows:
‘‘(A) three Governors, or former Governors,
of whom not more than 1 shall be a member of
the same political party as the President;’’;
(B) by amending subparagraph (B) to read
as follows:
‘‘(B) two State legislators, of whom not
more than 1 shall be a member of the same polit-
ical party as the President;’’;
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(C) in subparagraph (H), by striking ‘‘one
representative’’ and inserting ‘‘three representa-
tives’’;
(D) by amending subparagraph (I) to read
as follows:
‘‘(I) two mayors, of whom not more than 1
shall be a member of the same political party as
the President;’’;
(E) by striking subparagraph (J); and
(F) by redesignating subparagraphs (K),
(L), and (M) as subparagraphs (J), (K), and
(L), respectively;
(2) in subsection (c)—
(A) in paragraph (1), by striking ‘‘and
may not exceed a period of 3’’ and inserting
‘‘and shall be for periods of 4’’; and
(B) in paragraph (2), by inserting ‘‘con-
secutive’’ after ‘‘two’’;
(3) by amending subsection (d) to read as fol-
lows:
‘‘(d) VACANCIES.—As vacancies on the Board occur,
new members of the Board shall be appointed by the Sec-
retary from among individuals who are nominated by the
Board after consultation with representatives of the individ-
uals described in subsection (b)(1). For each vacancy, the
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Board shall nominate at least 3 individuals who are quali-
fied by experience or training to fill the particular Board
vacancy.’’; and
(4) in subsection (e) by adding at the end the fol-
lowing:
‘‘(7) INDEPENDENCE.—In the exercise of its
functions, powers, and duties, the Board shall be
independent of the Secretary and the other offices and
officers of the Department. The Secretary shall, by
written delegation of authority, authorize the Board
to award grants and contracts, and otherwise operate,
to the maximum extent practicable, independent of
the Department.’’.
(e) Not later than 30 days after the date of enactment
of this Act, the Secretary of Education, in consultation with
the Speaker and Minority Leader of the House of Represent-
atives, and the Majority Leader and Minority Leader of
the Senate, shall appoint individuals to fill vacancies on
the National Assessment Governing Board caused by the ex-
piration of the terms of members of the Board, or the cre-
ation of new membership positions on the Board pursuant
to amendments made by this Act.
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This Act may be cited as the ‘‘Departments of Labor,
Health and Human Services, and Education, and Related
Agencies Appropriations Act, 1998’’.
Attest:
Secretary.
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