203
HR 2264 PP
to remain available through September 30, 1999, for activi-
ties authorized by the Labor-Management Cooperation Act
of 1978 (29 U.S.C. 175a): Provided, That notwithstanding
31 U.S.C. 3302, fees charged, up to full-cost recovery, for
special training activities and for arbitration services shall
be credited to and merged with this account, and shall re-
main available until expended: Provided further, That fees
for arbitration services shall be available only for education,
training, and professional development of the agency
workforce: Provided further, That the Director of the Service
is authorized to accept on behalf of the United States gifts
of services and real, personal, or other property in the aid
of any projects or functions within the Director’s jurisdic-
tion.
FEDERAL MINE SAFETY AND HEALTH REVIEW
COMMISSION
SALARIES AND EXPENSES
For expenses necessary for the Federal Mine Safety
and Health Review Commission (30 U.S.C. 801 et seq.),
$6,060,000.
NATIONAL COMMISSION ON LIBRARIES AND INFORMATION
SCIENCE
SALARIES AND EXPENSES
For necessary expenses for the National Commission
on Libraries and Information Science, established by the
204
HR 2264 PP
Act of July 20, 1970 (Public Law 91–345, as amended by
Public Law 102–95), $1,000,000.
NATIONAL COUNCIL ON DISABILITY
SALARIES AND EXPENSES
For expenses necessary for the National Council on
Disability as authorized by title IV of the Rehabilitation
Act of 1973, as amended, $1,793,000.
NATIONAL EDUCATION GOALS PANEL
For expenses necessary for the National Education
Goals Panel, as authorized by title II, part A of the Goals
2000: Educate America Act, $2,000,000.
NATIONAL LABOR RELATIONS BOARD
SALARIES AND EXPENSES
For expenses necessary for the National Labor Rela-
tions Board to carry out the functions vested in it by the
Labor-Management Relations Act, 1947, as amended (29
U.S.C. 141–167), and other laws, $174,661,000: Provided,
That no part of this appropriation shall be available to or-
ganize or assist in organizing agricultural laborers or used
in connection with investigations, hearings, directives, or
orders concerning bargaining units composed of agricul-
tural laborers as referred to in section 2(3) of the Act of
July 5, 1935 (29 U.S.C. 152), and as amended by the
Labor-Management Relations Act, 1947, as amended, and
as defined in section 3(f) of the Act of June 25, 1938 (29
205
HR 2264 PP
U.S.C. 203), and including in said definition employees en-
gaged in the maintenance and operation of ditches, canals,
reservoirs, and waterways when maintained or operated on
a mutual, nonprofit basis and at least 95 per centum of
the water stored or supplied thereby is used for farming
purposes: Provided further, That none of the funds made
available by this Act shall be used in any way to promul-
gate a final rule (altering 29 CFR part 103) regarding sin-
gle location bargaining units in representation cases.
NATIONAL MEDIATION BOARD
SALARIES AND EXPENSES
For expenses necessary to carry out the provisions of
the Railway Labor Act, as amended (45 U.S.C. 151–188),
including emergency boards appointed by the President,
$8,600,000: Provided, That unobligated balances at the end
of fiscal year 1998 not needed for emergency boards shall
remain available for other statutory purposes through Sep-
tember 30, 1999.
OCCUPATIONAL SAFETY AND HEALTH REVIEW
COMMISSION
SALARIES AND EXPENSES
For expenses necessary for the Occupational Safety
and Health Review Commission (29 U.S.C. 661),
$7,800,000.
206
HR 2264 PP
PHYSICIAN PAYMENT REVIEW COMMISSION
SALARIES AND EXPENSES
For expenses necessary to carry out section 1845(a) of
the Social Security Act, $3,508,000, to be transferred to this
appropriation from the Federal Supplementary Medical In-
surance Trust Fund.
PROSPECTIVE PAYMENT ASSESSMENT COMMISSION
SALARIES AND EXPENSES
For expenses necessary to carry out section 1886(e) of
the Social Security Act, $3,507,000, to be transferred to this
appropriation from the Federal Hospital Insurance and the
Federal Supplementary Medical Insurance Trust Funds.
RAILROAD RETIREMENT BOARD
DUAL BENEFITS PAYMENTS ACCOUNT
For payment to the Dual Benefits Payments Account,
authorized under section 15(d) of the Railroad Retirement
Act of 1974, $205,500,000, which shall include amounts be-
coming available in fiscal year 1998 pursuant to section
224(c)(1)(B) of Public Law 98–76; and in addition, an
amount, not to exceed 2 percent of the amount provided
herein, shall be available proportional to the amount by
which the product of recipients and the average benefit re-
ceived exceeds $205,500,000: Provided, That the total
amount provided herein shall be credited in 12 approxi-
207
HR 2264 PP
mately equal amounts on the first day of each month in
the fiscal year.
FEDERAL PAYMENTS TO THE RAILROAD RETIREMENT
ACCOUNTS
For payment to the accounts established in the Treas-
ury for the payment of benefits under the Railroad Retire-
ment Act for interest earned on unnegotiated checks,
$50,000, to remain available through September 30, 1999,
which shall be the maximum amount available for payment
pursuant to section 417 of Public Law 98–76.
LIMITATION ON ADMINISTRATION
For necessary expenses for the Railroad Retirement
Board for administration of the Railroad Retirement Act
and 
the 
Railroad 
Unemployment 
Insurance 
Act,
$87,728,000, to be derived in such amounts as determined
by the Board from the railroad retirement accounts and
from moneys credited to the railroad unemployment insur-
ance administration fund.
LIMITATION ON THE OFFICE OF INSPECTOR GENERAL
For expenses necessary for the Office of Inspector Gen-
eral for audit, investigatory and review activities, as au-
thorized by the Inspector General Act of 1978, as amended,
not more than $5,394,000, to be derived from the railroad
retirement accounts and railroad unemployment insurance
account.
208
HR 2264 PP
SOCIAL SECURITY ADMINISTRATION
PAYMENTS TO SOCIAL SECURITY TRUST FUNDS
For payment to the Federal Old-Age and Survivors In-
surance and the Federal Disability Insurance trust funds,
as provided under sections 201(m), 228(g), and 1131(b)(2)
of the Social Security Act, $20,308,000.
SPECIAL BENEFITS FOR DISABLED COAL MINERS
For carrying out title IV of the Federal Mine Safety
and Health Act of 1977, $426,090,000, to remain available
until expended.
For making, after July 31 of the current fiscal year,
benefit payments to individuals under title IV of the Fed-
eral Mine Safety and Health Act of 1977, for costs incurred
in the current fiscal year, such amounts as may be nec-
essary.
For making benefit payments under title IV of the Fed-
eral Mine Safety and Health Act 1977 for the first quarter
of fiscal year 1999, $160,000,000, to remain available until
expended.
SUPPLEMENTAL SECURITY INCOME PROGRAM
For carrying out titles XI and XVI of the Social Secu-
rity Act, section 401 of Public Law 92–603, section 212
of Public Law 93–66, as amended, and section 405 of Public
Law 95–216, including payment to the Social Security
trust funds for administrative expenses incurred pursuant
to 
section 
201(g)(1) 
of 
the 
Social 
Security 
Act,
209
HR 2264 PP
$16,162,525,000, to remain available until expended: Pro-
vided, That any portion of the funds provided to a State
in the current fiscal year and not obligated by the State
during that year shall be returned to the Treasury: Pro-
vided further, That not less than $2,225,000 shall be avail-
able for conducting a disability return to work demonstra-
tion initiative, which focuses on providing persons who
have lost limbs with an integrated program of prosthetic
and rehabilitative care and job placement assistance.
From funds provided under the previous paragraph,
not less than $100,000,000 shall be available for payment
to the Social Security trust funds for administrative ex-
penses for conducting continuing disability reviews.
In addition, $175,000,000, to remain available until
September 30, 1999, for payment to the Social Security
trust funds for administrative expenses for continuing dis-
ability reviews as authorized by section 103 of Public Law
104–121 and Supplemental Security Income administra-
tive work as authorized by Public Law 104–193. The term
‘‘continuing disability reviews’’ means reviews and redeter-
minations as defined under section 201(g)(1)(A) of the So-
cial Security Act, as amended, and reviews and redeter-
minations authorized under section 211 of Public Law 104–
193.
210
HR 2264 PP
For making, after June 15 of the current fiscal year,
benefit payments to individuals under title XVI of the So-
cial Security Act, for unanticipated costs incurred for the
current fiscal year, such sums as may be necessary.
For making benefit payments under title XVI of the
Social Security Act for the first quarter of fiscal year 1999,
$8,680,000,000, to remain available until expended.
LIMITATION ON ADMINISTRATIVE EXPENSES
For necessary expenses, including the hire of two pas-
senger motor vehicles, and not to exceed $10,000 for official
reception and representation expenses, not more than
$5,937,708,000 may be expended, as authorized by section
201(g)(1) of the Social Security Act, from any one or all
of the trust funds referred to therein: Provided, That not
less than $1,268,000 shall be for the Social Security Advi-
sory Board: Provided further, That unobligated balances at
the end of fiscal year 1998 not needed for fiscal year 1998
shall remain available until expended for a state-of-the-art
computing network, including related equipment and non-
payroll administrative expenses associated solely with this
network.
From funds provided under the previous paragraph,
not less than $200,000,000 shall be available for conducting
continuing disability reviews.
In addition to funding already available under this
heading, and subject to the same terms and conditions,
211
HR 2264 PP
$290,000,000, to remain available until September 30,
1999, for continuing disability reviews as authorized by sec-
tion 103 of Public Law 104–121, section 10203 of Public
Law 105–33 and Supplemental Security Income adminis-
trative work as authorized by Public Law 104–193. The
term ‘‘continuing disability reviews’’ means reviews and re-
determinations as defined under section 201(g)(1)(A) of the
Social Security Act as amended, and reviews and redeter-
minations authorized under section 211 of Public Law 104–
193.
In addition to funding already available under this
heading, and subject to the same terms and conditions,
$200,000,000, which shall remain available until expended,
to invest in a state-of-the-art computing network, including
related equipment and non-payroll administrative expenses
associated solely with this network, for the Social Security
Administration and the State Disability Determination
Services, may be expended from any or all of the trust funds
as authorized by section 201(g)(1) of the Social Security
Act.
In addition, $35,000,000 to be derived from adminis-
tration fees in excess of $5.00 per supplementary payment
collected pursuant to section 1616(d) of the Social Security
Act or section 212(b)(3) of Public Law 93–66, which shall
remain available until expended. To the extent that the
212
HR 2264 PP
amounts collected pursuant to such section 1616(d) or
212(b)(3) in fiscal year 1998 exceed $35,000,000, the
amounts shall be available in fiscal year 1999 only to the
extent provided in advance in appropriations Acts.
OFFICE OF INSPECTOR GENERAL
(INCLUDING TRANSFER OF FUNDS)
For expenses necessary for the Office of Inspector Gen-
eral in carrying out the provisions of the Inspector General
Act of 1978, as amended, $6,265,000, together with not to
exceed $31,089,000, to be transferred and expended as au-
thorized by section 201(g)(1) of the Social Security Act from
the Federal Old-Age and Survivors Insurance Trust Fund
and the Federal Disability Insurance Trust Fund.
In addition, an amount not to exceed 3 percent of the
total provided in this appropriation may be transferred
from the ‘‘Limitation on Administrative Expenses’’, Social
Security Administration, to be merged with this account,
to be available for the time and purposes for which this
account is available: Provided, That notice of such transfers
shall be transmitted promptly to the Committees on Appro-
priations of the House and Senate.
UNITED STATES INSTITUTE OF PEACE
OPERATING EXPENSES
For necessary expenses of the United States Institute
of Peace as authorized in the United States Institute of
Peace Act, $11,160,000.
213
HR 2264 PP
TITLE V—GENERAL PROVISIONS
SEC. 501. The Secretaries of Labor, Health and
Human Services, and Education are authorized to transfer
unexpended balances of prior appropriations to accounts
corresponding to current appropriations provided in this
Act: Provided, That such transferred balances are used for
the same purpose, and for the same periods of time, for
which they were originally appropriated.
SEC. 502. No part of any appropriation contained in
this Act shall remain available for obligation beyond the
current fiscal year unless expressly so provided herein.
SEC. 503. (a) No part of any appropriation contained
in this Act shall be used, other than for normal and recog-
nized executive-legislative relationships, for publicity or
propaganda purposes, for the preparation, distribution, or
use of any kit, pamphlet, booklet, publication, radio, tele-
vision, or video presentation designed to support or defeat
legislation pending before the Congress or any State legisla-
ture, except in presentation to the Congress or any State
legislature itself.
(b) No part of any appropriation contained in this
Act shall be used to pay the salary or expenses of any grant
or contract recipient, or agent acting for such recipient, re-
lated to any activity designed to influence legislation or ap-
214
HR 2264 PP
propriations pending before the Congress or any State legis-
lature.
SEC. 504. The Secretaries of Labor and Education are
each authorized to make available not to exceed $15,000
from funds available for salaries and expenses under titles
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-
215
HR 2264 PP
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
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
216
HR 2264 PP
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
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.
218
HR 2264 PP
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-
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
219
HR 2264 PP
to risk of injury or death greater than that allowed
for research on fetuses in utero under 45 CFR
46.208(a)(2) and section 498(b) of the Public Health
Service Act (42 U.S.C. 289g(b)).
(b) For purposes of this section, the term ‘‘human 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-
220
HR 2264 PP
ally-sponsored clinical trials are being conducted to deter-
mine therapeutic advantage.
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
221
HR 2264 PP
(ii) by striking clause (iv) and insert-
ing 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 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)’’.
222
HR 2264 PP
(2) MANDATORY
STATE
SUPPLEMENTARY
PAY-
MENTS.—
(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
223
HR 2264 PP
‘‘(bb) such different rate as the Commis-
sioner determines is appropriate for the State.’’.
(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-
224
HR 2264 PP
vided in advance in appropriations Acts, shall be available
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-
225
HR 2264 PP
cial fund established in the Treasury of the United
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.
226
HR 2264 PP
SEC. 519. (a) GENERAL LIMITATION.—Notwithstand-
ing any other provision of law, if any attorneys’ fees are
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.
227
HR 2264 PP
(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.—
228
HR 2264 PP
(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
229
HR 2264 PP
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—
230
HR 2264 PP
(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.
231
HR 2264 PP
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;
232
HR 2264 PP
(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
233
HR 2264 PP
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