SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Balanced Budget Act
of 1997’’.
SEC. 2. TABLE OF CONTENTS.
Title I—Committee on Agriculture.
Title II—Committee on Banking and Financial Services.
Title III—Committee on Commerce—Nonmedicare.
Title IV—Committee on Commerce—Medicare.
Title V—Committee on Education and the Workforce.
Tittle VI—Committee on Government Reform and Oversight.
Title VII—Committee on Transportation and Infrastructure.
Title VIII—Committee on Veterans’ Affairs.
Title IX—Committee on Ways and Means—Nonmedicare.
Title X—Committee on Ways and Means—Medicare.
Title XI—Budget Enforcement.
TITLE I—COMMITTEE ON
AGRICULTURE
SEC. 1001. EXEMPTION.
Section 6(o) of the Food Stamp Act of 1977 (7
U.S.C. 2015(o)) is amended—
(1) in paragraph (2)(D), by striking ‘‘or (5)’’
and inserting ‘‘(5), or (6)’’;
(2) by redesignating paragraphs (5) and (6) as
paragraphs (6) and (7), respectively; and
(3) by inserting after paragraph (4) the follow-
ing new paragraph:
‘‘(5) 15-PERCENT EXEMPTION.—
‘‘(A) DEFINITIONS.—In this paragraph:
‘‘(i) CASELOAD.—The term ‘caseload’
means the average monthly number of in-
dividuals receiving food stamps during the
12-month period ending the preceding
June 30.
‘‘(ii) 
COVERED
INDIVIDUAL.—The
term ‘covered individual’ means a food
stamp recipient, or an individual denied
eligibility for food stamp benefits solely
due to paragraph (2), who—
‘‘(I) is not eligible for an excep-
tion under paragraph (3);
‘‘(II) does not reside in an area
covered by a waiver granted under
paragraph (4);
‘‘(III) is not complying with sub-
paragraph (A), (B), or (C) of para-
graph (2);
‘‘(IV) is not in the first 3 months
of eligibility under paragraph (2); and
‘‘(V) is not receiving benefits
under paragraph (6).
‘‘(B) GENERAL
RULE.—Subject to sub-
paragraphs (C) through (F), a State agency
may provide an exemption from the require-
ments of paragraph (2) for covered individuals.
‘‘(C) FISCAL YEAR 1998.—Subject to sub-
paragraph (E), for fiscal year 1998, a State
agency may provide a number of exemptions
such that the average monthly number of the
exemptions in effect during the fiscal year does
not exceed 15 percent of the number of covered
individuals in the State in fiscal year 1998, as
estimated by the Secretary, based on the survey
conducted to carry out section 16(c) for fiscal
year 1996 and such other factors as the Sec-
retary considers appropriate due to the timing
and limitations of the survey.
‘‘(D) SUBSEQUENT FISCAL YEARS.—Sub-
ject to subparagraphs (E) and (F), for fiscal
year 1999 and each subsequent fiscal year, a
State agency may provide a number of exemp-
tions such that the average monthly number of
the exemptions in effect during the fiscal year
does not exceed 15 percent of the number of
covered individuals in the State, as estimated
by the Secretary under subparagraph (C), ad-
justed by the Secretary to reflect changes in the
State’s caseload and the Secretary’s estimate of
changes in the proportion of food stamp recipi-
ents covered by waivers granted under para-
graph (4).
‘‘(E) CASELOAD ADJUSTMENTS.—The Sec-
retary shall adjust the number of individuals es-
timated for a State under subparagraph (C) or
(D) during a fiscal year if the number of food
stamp recipients in the State varies by a signifi-
cant number from the caseload, as determined
by the Secretary.
‘‘(F) EXEMPTION ADJUSTMENTS.—During
fiscal year 1999 and each subsequent fiscal
year, the Secretary shall increase or decrease
the number of individuals who may be granted
an exemption by a State agency to the extent
that the average monthly number of exemptions
in effect in the State for the preceding fiscal
year is greater or less than the average monthly
number of exemptions estimated for the State
agency during such preceding fiscal year.
‘‘(G) REPORTING REQUIREMENT.—A State
agency shall submit such reports to the Sec-
retary as the Secretary determines are nec-
essary to ensure compliance with this para-
graph.’’.
SEC. 1002. ADDITIONAL FUNDING FOR EMPLOYMENT AND
TRAINING.
(a) IN GENERAL.—Section 16(h) of the Food Stamp
Act of 1977 (7 U.S.C. 2025(h)) is amended—
(1) by striking paragraph (1) and inserting the
following new paragraph:
‘‘(1) IN GENERAL.—
‘‘(A) AMOUNTS.—To carry out employ-
ment and training programs, the Secretary
shall reserve for allocation to State agencies, to
remain available until expended, from funds
made available for each fiscal year under sec-
tion 18(a)(1) the amount of—
‘‘(i) for fiscal year 1996, $75,000,000;
‘‘(ii) 
for 
fiscal 
year 
1997,
$79,000,000;
‘‘(iii) 
for 
fiscal 
year 
1998,
$221,000,000;
‘‘(iv) 
for 
fiscal 
year 
1999,
$224,000,000;
‘‘(v) 
for 
fiscal 
year 
2000,
$226,000,000;
‘‘(vi) 
for 
fiscal 
year 
2001,
$228,000,000; and
‘‘(vii) 
for 
fiscal 
year 
2002,
$210,000,000.
tion of food stamp recipients who reside in
each State—
‘‘(I) who are not eligible for an
exception under section 6(o)(3); and
‘‘(II) who do not reside in an
area subject to the waiver granted by
the Secretary under section 6(o)(4), if
the State agency does not provide em-
ployment and training services in the
area to food stamp recipients not ex-
cepted by section 6(o)(3).
‘‘(ii) REPORTING
REQUIREMENT.—A
State agency shall submit such reports to
the Secretary as the Secretary determines
are necessary to ensure compliance with
this paragraph.’’; and
‘‘(D) REALLOCATION.—
‘‘(i) NOTIFICATION.—A State agency
shall promptly notify the Secretary if the
State agency determines that it will not ex-
pend all of the funds allocated to it under
subparagraph (B).
‘‘(ii) REALLOCATION.—On notification
under clause (i), the Secretary shall reallo-
cate the funds that the State agency will
not expend as the Secretary considers ap-
propriate and equitable.
‘‘(E) MINIMUM
ALLOCATION.—Notwith-
standing subparagraphs (A) through (C), the
Secretary shall ensure that each State agency
operating an employment and training program
shall receive not less than $50,000 for each fis-
cal year.
‘‘(F) MAINTENANCE OF EFFORT.—To re-
ceive the additional funding under subpara-
graph (A), as provided by the amendment made
by section 1002 of the Balanced Budget Act of
1997, a State agency shall maintain the ex-
penditures of the State agency for employment
and training programs and workfare programs
for any fiscal year under paragraph (2), and
administrative expenses under section 20(g)(1),
at a level that is not less than the level of the
expenditures by the State agency to carry out
the programs for fiscal year 1996.’’;
(2) by redesignating paragraphs (2) through
(5) as paragraphs (3) through (6), respectively;
(3) by inserting after paragraph (1) the follow-
ing new paragraph:
‘‘(2) REPORT
TO
CONGRESS
ON
ADDITIONAL
FUNDING.—Beginning one year after the date of the
enactment of this paragraph, the Secretary shall
submit an annual report to the Committee on Agri-
culture of the House of Representatives and the
Committee on Agriculture, Nutrition, and Forestry
of the Senate regarding whether the additional fund-
ing provided under paragraph (1)(A) has been uti-
lized by State agencies to increase the number of
work slots in their employment and training pro-
grams and workfare for recipients subject to section
6(o) in the most efficient and effective manner.’’;
and
(4) in paragraph (3) (as so redesignated), by
striking ‘‘paragraph (3)’’ and inserting ‘‘paragraph
(4)’’.
(b) CONFORMING
AMENDMENTS.—(1) Subsection
(b)(1)(B)(iv)(III)(hh) of section 17 of the Food Stamp Act
of 1977 (7 U.S.C. 2026) is amended by striking ‘‘(h)(2),
or (h)(3) of section 16’’ and inserting ‘‘(h)(3), or (h)(4)
of section 16’’.
(2) Subsection (d)(1)(B)(ii) of section 22 of such Act
(7 U.S.C. 2031) is amended by striking ‘‘(h)(2), and
(h)(3) of section 16’’ and inserting ‘‘(h)(3), and (h)(4) of
section 16’’.
SEC. 1003. AUTHORIZING USE OF NONGOVERNMENTAL
PERSONNEL IN MAKING DETERMINATIONS
OF ELIGIBILITY FOR BENEFITS UNDER THE
FOOD STAMP PROGRAM.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, no provision of law shall be construed as pre-
venting any State (as defined in section 3(m) of the Food
Stamp Act of 1977 (7 U.S.C. 2012(m))) from allowing
eligibility determinations described in subsection (b) to be
made by an entity that is not a State or local government,
or by an individual who is not an employee of a State or
local government, which meets such qualifications as the
State determines. For purposes of any Federal law, such
determinations shall be considered to be made by the State
and by a State agency.
(b) ELIGIBILITY DETERMINATIONS.—An eligibility
determination described in this subsection is a determina-
tion of eligibility of individuals or households to receive
benefits under the food stamp program as defined in sec-
tion 3(h) of the Food Stamp Act of 1977 (7 U.S.C.
2012(h)).
(c) CONSTRUCTION.—Nothing in this section shall be
construed as affecting—
(1) the conditions for eligibility for benefits (in-
cluding any conditions relating to income or re-
sources);
(2) the rights to challenge determinations re-
garding eligibility or rights to benefits; and
(3) determinations regarding quality control or
error rates.
TITLE II—COMMITTEE ON BANK-
ING AND FINANCIAL SERV-
ICES
SEC. 2001. TABLE OF CONTENTS.
The table of contents for this title is as follows:
TITLE II—COMMITTEE ON BANKING AND FINANCIAL SERVICES
Sec. 2001. Table of contents.
Sec. 2002. Extension of foreclosure avoidance and borrower assistance provi-
sions for FHA single family housing mortgage insurance pro-
gram.
Sec. 2003. Adjustment of maximum monthly rents for certain dwelling units in
new construction and substantial or moderate rehabilitation
projects assisted under section 8 rental assistance program.
Sec. 2004. Adjustment of maximum monthly rents for non-turnover dwelling
units assisted under section 8 rental assistance program.
SEC. 2002. EXTENSION OF FORECLOSURE AVOIDANCE AND
BORROWER ASSISTANCE PROVISIONS FOR
FHA SINGLE FAMILY HOUSING MORTGAGE
INSURANCE PROGRAM.
Section 407 of The Balanced Budget Downpayment
Act, I (12 U.S.C. 1710 note) is amended—
(1) in subsection (c)—
(A) by striking ‘‘only’’; and
(B) by inserting ‘‘, on, or after’’ after ‘‘be-
fore’’; and
(2) by striking subsection (e).
SEC. 2003. ADJUSTMENT OF MAXIMUM MONTHLY RENTS
FOR CERTAIN DWELLING UNITS IN NEW CON-
STRUCTION 
AND 
SUBSTANTIAL 
OR 
MOD-
ERATE 
REHABILITATION 
PROJECTS 
AS-
SISTED UNDER SECTION 8 RENTAL ASSIST-
ANCE PROGRAM.
The third sentence of section 8(c)(2)(A) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(c)(2)(A))
is amended by inserting before the period at the end the
following: ‘‘, and during fiscal year 1999 and thereafter’’.
SEC. 2004. ADJUSTMENT OF MAXIMUM MONTHLY RENTS
FOR NON-TURNOVER DWELLING UNITS AS-
SISTED UNDER SECTION 8 RENTAL ASSIST-
ANCE PROGRAM.
The last sentence of section 8(c)(2)(A) of the United
States Housing Act of 1937 is amended by inserting be-
fore the period at the end the following: ‘‘, and during
fiscal year 1999 and thereafter’’.
TITLE III—COMMITTEE ON
COMMERCE-NONMEDICARE
Subtitle A—Nuclear Regulatory
Commission Annual Charges
SEC. 3001. 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