1495
source drug, shall be increased by an amount
equal to the product of—
‘‘(i) the total number of units of such
dosage form and strength dispensed after
December 31, 1990, for which payment
was made under the MediGrant plan for
the rebate period; and
‘‘(ii) the amount (if any) by which—
‘‘(I) the average manufacturer
price 
for 
the 
dosage 
form 
and
strength of the drug for the period,
exceeds
‘‘(II) the average manufacturer
price for such dosage form and
strength for the calendar quarter be-
ginning July 1, 1990 (without regard
to whether or not the drug has been
sold or transferred to an entity, in-
cluding a division or subsidiary of the
manufacturer, after the first day of
such quarter), increased by the per-
centage by which the consumer price
index for all urban consumers (United
States city average) for the month be-
fore the month in which the rebate pe-
1496
riod begins exceeds such index for
September 1990.
‘‘(B) TREATMENT OF SUBSEQUENTLY AP-
PROVED DRUGS.—In the case of a covered out-
patient drug approved by the Food and Drug
Administration after October 1, 1990, clause
(ii)(II) of subparagraph (A) shall be applied by
substituting ‘the first full calendar quarter after
the day on which the drug was first marketed’
for ‘the calendar quarter beginning July 1,
1990’ and ‘the month prior to the first month
of the first full calendar quarter after the day
on which the drug was first marketed’ for ‘Sep-
tember 1990’.
‘‘(3) REBATE FOR OTHER DRUGS.—
‘‘(A) IN GENERAL.—The amount of the re-
bate paid to a State participating in the
MediGrant master rebate agreement for a re-
bate period with respect to each dosage form
and strength of covered outpatient drugs (other
than single source drugs and innovator multiple
source drugs) shall be equal to the product of—
‘‘(i) the applicable percentage (as de-
scribed in subparagraph (B)) of the aver-
age manufacturer price for the dosage
1497
form and strength for the rebate period,
and
‘‘(ii) the total number of units of such
dosage form and strength dispensed after
December 31, 1990, for which payment
was made under the MediGrant plan for
the rebate period.
‘‘(B) 
APPLICABLE
PERCENTAGE
DE-
FINED.—For purposes of subparagraph (A)(i),
the ‘applicable percentage’ is 11 percent.
‘‘(4) LIMITATION ON AMOUNT OF REBATE TO
AMOUNTS PAID FOR CERTAIN DRUGS.—Upon request
of a manufacturer of a covered outpatient drug for
which a majority of the estimated number of units
of such dosage form and strength that are subject
to rebates under this section were dispensed to inpa-
tients of nursing facilities (including drugs which are
exempt from the requirements of the MediGrant
master rebate agreement under this section under
subsection (h)(1)(B)), the Secretary shall limit the
amount of the rebate under this subsection with re-
spect to a dosage form and strength of the drug for
a rebate period to the amount paid under the
MediGrant plan with respect to such dosage form
1498
and strength of the drug in the rebate period (with-
out consideration of any dispensing fees paid).
‘‘(d) LIMITATIONS
ON COVERAGE
OF DRUGS
BY
STATES PARTICIPATING IN MASTER AGREEMENT.—
‘‘(1) PERMISSIBLE
RESTRICTIONS.—A State
participating in the MediGrant master rebate agree-
ment under this section may—
‘‘(A) subject to prior authorization under
its MediGrant plan any covered outpatient drug
so long as any such prior authorization pro-
gram complies with the requirements of para-
graph (5); and
‘‘(B) exclude or otherwise restrict coverage
under its plan of a covered outpatient drug if—
‘‘(i) the prescribed use is not for a
medically accepted indication (as defined in
subsection (i)(5));
‘‘(ii) the drug is contained in the list
referred to in paragraph (2);
‘‘(iii) the drug is subject to such re-
strictions pursuant to the MediGrant mas-
ter rebate agreement or any agreement de-
scribed in subsection (a)(4); or
1499
‘‘(iv) the State has excluded coverage
of the drug from its formulary established
in accordance with paragraph (4).
‘‘(2) LIST
OF
DRUGS
SUBJECT
TO
RESTRIC-
TION.—The following drugs or classes of drugs, or
their medical uses, may be excluded from coverage
or otherwise restricted by a State participating in
the MediGrant master rebate agreement:
‘‘(A) Agents when used for anorexia,
weight loss, or weight gain.
‘‘(B) Agents when used to promote fertil-
ity.
‘‘(C) Agents when used for cosmetic pur-
poses or hair growth.
‘‘(D) Agents when used for the sympto-
matic relief of cough and colds.
‘‘(E) Agents when used to promote smok-
ing cessation.
‘‘(F) Prescription vitamins and mineral
products, except prenatal vitamins and fluoride
preparations.
‘‘(G) Nonprescription drugs.
‘‘(H) Covered outpatient drugs which the
manufacturer seeks to require as a condition of
sale that associated tests or monitoring services
1500
be purchased exclusively from the manufacturer
or its designee.
‘‘(I) Barbiturates.
‘‘(J) Benzodiazepines.
‘‘(3) ADDITIONS TO DRUG LISTINGS.—The Sec-
retary shall, by regulation, periodically update the
list of drugs or classes of drugs described in para-
graph (2), or their medical uses, which the Secretary
has determined to be subject to clinical abuse or in-
appropriate use.
‘‘(4) REQUIREMENTS
FOR
FORMULARIES.—A
State participating in the MediGrant master rebate
agreement may establish a formulary if the for-
mulary meets the following requirements:
‘‘(A) The formulary is developed by a com-
mittee consisting of physicians, pharmacists,
and other appropriate individuals appointed by
the Governor of the State.
‘‘(B) Except as provided in subparagraph
(C), the formulary includes the covered out-
patient drugs of any manufacturer which has
entered into and complies with the agreement
under subsection (a) (other than any drug ex-
cluded from coverage or otherwise restricted
under paragraph (2)).
1501
‘‘(C) A covered outpatient drug may be ex-
cluded with respect to the treatment of a spe-
cific disease or condition for an identified popu-
lation (if any) only if, based on the drug’s label-
ing (or, in the case of a drug the prescribed use
of which is not approved under the Federal
Food, Drug, and Cosmetic Act but is a medi-
cally accepted indication, based on information
from the appropriate compendia described in
subsection (i)(5)), the excluded drug does not
have a significant, clinically meaningful thera-
peutic advantage in terms of safety, effective-
ness, or clinical outcome of such treatment for
such population over other drugs included in
the formulary and there is a written expla-
nation (available to the public) of the basis for
the exclusion.
‘‘(D) The State plan permits coverage of a
drug excluded from the formulary (other than
any drug excluded from coverage or otherwise
restricted under paragraph (2)) pursuant to a
prior authorization program that is consistent
with paragraph (5).
‘‘(E) The formulary meets such other re-
quirements as the Secretary may impose in
1502
order to achieve program savings consistent
with protecting the health of program bene-
ficiaries.
A prior authorization program established by a State
under paragraph (5) is not a formulary subject to
the requirements of this paragraph.
‘‘(5) REQUIREMENTS OF PRIOR AUTHORIZATION
PROGRAMS.—The MediGrant plan of a State partici-
pating in the MediGrant master rebate agreement
may require, as a condition of coverage or payment
for a covered outpatient drug for which Federal fi-
nancial participation is available in accordance with
this section the approval of the drug before its dis-
pensing for any medically accepted indication (as de-
fined in subsection (i)(5)) only if the system provid-
ing for such approval—
‘‘(A) provides response by telephone or
other telecommunication device within 24 hours
of a request for prior authorization; and
‘‘(B) except with respect to the drugs on
the list referred to in paragraph (2), provides
for the dispensing of at least a 72-hour supply
of a covered outpatient prescription drug in an
emergency situation (as defined by the Sec-
retary).
1503
‘‘(6) OTHER
PERMISSIBLE
RESTRICTIONS.—A
State participating in the MediGrant master rebate
agreement may impose limitations, with respect to
all such drugs in a therapeutic class, on the mini-
mum or maximum quantities per prescription or on
the number of refills, if such limitations are nec-
essary to discourage waste, and may address in-
stances of fraud or abuse by individuals in any man-
ner authorized under this Act.
‘‘(e) DRUG USE REVIEW.—
‘‘(1) IN GENERAL.—A State participating in the
MediGrant master rebate agreement may provide for
a drug use review program to educate physicians
and pharmacists to identify and reduce the fre-
quency of patterns of fraud, abuse, gross overuse, or
inappropriate or medically unnecessary care, among
physicians, pharmacists, and patients, or associated
with specific drugs or groups of drugs, as well as po-
tential and actual severe adverse reactions to drugs.
‘‘(2) APPLICATION OF STATE STANDARDS.—A
State with a drug use review program under this
subsection shall establish and operate the program
under such standards as it may establish.
‘‘(f) ELECTRONIC CLAIMS MANAGEMENT.—In ac-
cordance with chapter 35 of title 44, United States Code
1504
(relating to coordination of Federal information policy),
the Secretary shall encourage each State to establish, as
its principal means of processing claims for covered out-
patient drugs under its MediGrant plan, a point-of-sale
electronic claims management system, for the purpose of
performing on-line, real time eligibility verifications,
claims data capture, adjudication of claims, and assisting
pharmacists (and other authorized persons) in applying
for and receiving payment.
‘‘(g) ANNUAL REPORT.—
‘‘(1) IN GENERAL.—Not later than May 1 of
each year, the Secretary shall transmit to the Com-
mittee on Finance of the Senate, the Committee on
Commerce of the House of Representatives, and the
Committee on Aging of the Senate a report on the
operation of this section in the preceding fiscal year.
‘‘(2) DETAILS.—Each report shall include infor-
mation on—
‘‘(A) ingredient costs paid under this title
for single source drugs, multiple source drugs,
and nonprescription covered outpatient drugs;
‘‘(B) the total value of rebates received
and number of manufacturers providing such
rebates;
1505
‘‘(C) the effect of inflation on the value of
rebates required under this section;
‘‘(D) trends in prices paid under this title
for covered outpatient drugs; and
‘‘(E) Federal and State administrative
costs associated with compliance with the provi-
sions of this title.
‘‘(h) EXEMPTION FOR CAPITATED HEALTH CARE
ORGANIZATIONS, HOSPITALS, AND
NURSING
FACILI-
TIES.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the requirements of the MediGrant mas-
ter rebate agreement under this section shall not
apply with respect to covered outpatient drugs dis-
pensed by or through—
‘‘(A) a capitated health care organization
(as defined in section 2114(c)(1)); or
‘‘(B) a hospital or nursing facility that dis-
penses covered outpatient drugs using a drug
formulary system and bills the State no more
than the hospital’s purchasing costs for covered
outpatient drugs.
‘‘(2) CONSTRUCTION
IN
DETERMINING
BEST
PRICE.—Nothing in paragraph (1) shall be con-
strued as excluding amounts paid by the entities de-
1506
scribed in such paragraph for covered outpatient
drugs from the determination of the best price (as
defined in subsection (c)(1)(C)) for such drugs.
‘‘(i) DEFINITIONS.—In the section—
‘‘(1) AVERAGE
MANUFACTURER
PRICE.—The
term ‘average manufacturer price’ means, with re-
spect to a covered outpatient drug of a manufacturer
for a rebate period, the average price paid to the
manufacturer for the drug in the United States by
wholesalers for drugs distributed to the retail phar-
macy class of trade, after deducting customary
prompt pay discounts.
‘‘(2) COVERED OUTPATIENT DRUG.—Subject to
the exceptions in subparagraph (D), the term ‘cov-
ered outpatient drug’ means—
‘‘(A) of those drugs which are treated as
prescribed drugs for purposes of section
2171(a)(1)(H), a drug which may be dispensed
only upon prescription (except as provided in
paragraph (7)), and—
‘‘(i) which is approved as a prescrip-
tion drug under section 505 or 507 of the
Federal Food, Drug, and Cosmetic Act;
‘‘(ii)(I) which was commercially used
or sold in the United States before the
1507
date of the enactment of the Drug Amend-
ments of 1962 or which is identical, simi-
lar, or related (within the meaning of sec-
tion 310.6(b)(1) of title 21 of the Code of
Federal Regulations) to such a drug, and
(II) which has not been the subject of a
final determination by the Secretary that it
is a ‘new drug’ (within the meaning of sec-
tion 201(p) of the Federal Food, Drug,
and Cosmetic Act) or an action brought by
the Secretary under section 301, 302(a),
or 304(a) of such Act to enforce section
502(f) or 505(a) of such Act; or
‘‘(iii)(I) which is described in section
107(c)(3) of the Drug Amendments of
1962 and for which the Secretary has de-
termined there is a compelling justification
for its medical need, or is identical, simi-
lar, or related (within the meaning of sec-
tion 310.6(b)(1) of title 21 of the Code of
Federal Regulations) to such a drug, and
(II) for which the Secretary has not issued
a notice of an opportunity for a hearing
under section 505(e) of the Federal Food,
Drug, and Cosmetic Act on a proposed
1508
order of the Secretary to withdraw ap-
proval of an application for such drug
under such section because the Secretary
has determined that the drug is less than
effective for some or all conditions of use
prescribed, recommended, or suggested in
its labeling;
‘‘(B) a biological product, other than a
vaccine which—
‘‘(i) may only be dispensed upon pre-
scription,
‘‘(ii) is licensed under section 351 of
the Public Health Service Act, and
‘‘(iii) is produced at an establishment
licensed under such section to produce
such product;
‘‘(C) insulin certified under section 506 of
the Federal Food, Drug, and Cosmetic Act; and
‘‘(D) a drug which may be sold without a
prescription (commonly referred to as an ‘over-
the-counter drug’), if the drug is prescribed by
a physician (or other person authorized to pre-
scribe under State law).
‘‘(3) LIMITING DEFINITION.—The term ‘covered
outpatient drug’ does not include any drug, biologi-
1509
cal product, or insulin provided as part of, or as in-
cident to and in the same setting as, any of the fol-
lowing (and for which payment may be made under
a MediGrant plan as part of payment for the follow-
ing and not as direct reimbursement for the drug):
‘‘(A) Inpatient hospital services.
‘‘(B) Hospice services.
‘‘(C) Dental services, except that drugs for
which the MediGrant plan authorizes direct re-
imbursement to the dispensing dentist are cov-
ered outpatient drugs.
‘‘(D) Physicians’ services.
‘‘(E) Outpatient hospital services.
‘‘(F) Nursing facility services and services
provided by an intermediate care facility for the
mentally retarded.
‘‘(G) Other laboratory and x-ray services.
‘‘(H) Renal dialysis services.
Such term also does not include any such drug or
product for which a National Drug Code number is
not required by the Food and Drug Administration
or a drug or biological used for a medical indication
which is not a medically accepted indication. Any
drug, biological product, or insulin excluded from the
definition of such term as a result of this paragraph
1510
shall be treated as a covered outpatient drug for
purposes of determining the best price (as defined in
subsection (c)(1)(C)) for such drug, biological prod-
uct, or insulin.
‘‘(4) MANUFACTURER.—The term ‘manufac-
turer’ means, with respect to a covered outpatient
drug, the entity holding legal title to or possession
of the National Drug Code number for such drug.
‘‘(5) MEDICALLY ACCEPTED INDICATION.—The
term ‘medically accepted indication’ means any use
for a covered outpatient drug which is approved
under the Federal Food, Drug, and Cosmetic Act, or
the use of which is supported by one or more cita-
tions included or approved for inclusion in any of the
following compendia:
‘‘(A) American Hospital Formulary Service
Drug Information.
‘‘(B) United States Pharmacopeia-Drug
Information.
‘‘(C) American Medical Association Drug
Evaluations.
‘‘(D) The peer-reviewed medical literature.
‘‘(6) MULTIPLE
SOURCE
DRUG; INNOVATOR
MULTIPLE
SOURCE
DRUG; NONINNOVATOR
MUL-
TIPLE SOURCE DRUG; SINGLE SOURCE DRUG.—
1511
‘‘(A) DEFINED.—
‘‘(i) MULTIPLE SOURCE DRUG.—The
term ‘multiple source drug’ means, with
respect to a rebate period, a covered out-
patient drug (not including any drug de-
scribed in paragraph (2)(D)) for which
there are 2 or more drug products which—
‘‘(I) are rated as therapeutically
equivalent (under the Food and Drug
Administration’s most recent publica-
tion of ‘Approved Drug Products with
Therapeutic 
Equivalence 
Evalua-
tions’),
‘‘(II) except as provided in sub-
paragraph (B), are pharmaceutically
equivalent and bioequivalent, as de-
fined in subparagraph (C) and as de-
termined by the Food and Drug Ad-
ministration, and
‘‘(III) are sold or marketed in
the State during the period.
‘‘(ii) INNOVATOR
MULTIPLE
SOURCE
DRUG.—The 
term 
‘innovator 
multiple
source drug’ means a multiple source drug
that was originally marketed under an
1512
original new drug application or product li-
censing application approved by the Food
and Drug Administration.
‘‘(iii) 
NONINNOVATOR
MULTIPLE
SOURCE
DRUG.—The term ‘noninnovator
multiple source drug’ means a multiple
source drug that is not an innovator mul-
tiple source drug.
‘‘(iv) SINGLE
SOURCE
DRUG.—The
term ‘single source drug’ means a covered
outpatient drug which is produced or dis-
tributed under an original new drug appli-
cation approved by the Food and Drug Ad-
ministration, including a drug product
marketed by any cross-licensed producers
or distributors operating under the new
drug application or product licensing appli-
cation.
‘‘(B) 
EXCEPTION.—Subparagraph
(A)(i)(II) shall not apply if the Food and Drug
Administration changes by regulation the re-
quirement that, for purposes of the publication
described in subparagraph (A)(i)(I), in order
for drug products to be rated as therapeutically
equivalent, they must be pharmaceutically
1513
equivalent and bioequivalent, as defined in sub-
paragraph (C).
‘‘(C) DEFINITIONS.—For purposes of this
paragraph—
‘‘(i) drug products are pharmaceuti-
cally equivalent if the products contain
identical amounts of the same active drug
ingredient in the same dosage form and
meet compendial or other applicable stand-
ards of strength, quality, purity, and iden-
tity;
‘‘(ii) drugs are bioequivalent if they do
not 
present 
a 
known 
or 
potential
bioequivalence problem, or, if they do
present such a problem, they are shown to
meet 
an 
appropriate 
standard 
of
bioequivalence; and
‘‘(iii) a drug product is considered to
be sold or marketed in a State if it appears
in a published national listing of average
wholesale prices selected by the Secretary,
if the listed product is generally available
to the public through retail pharmacies in
that State.
1514
‘‘(7) 
NONPRESCRIPTION
DRUGS.—If 
the
MediGrant plan of a State participating in the
MediGrant master rebate agreement under this sec-
tion includes coverage of prescribed drugs as de-
scribed in section 2171(a)(1)(H) and permits cov-
erage of drugs which may be sold without a prescrip-
tion (commonly referred to as ‘over-the-counter’
drugs), if they are prescribed by a physician (or
other person authorized to prescribe under State
law), such a drug shall be regarded as a covered out-
patient drug for purposes of the State’s participation
in the agreement.
‘‘(8) REBATE PERIOD.—The term ‘rebate pe-
riod’ means, with respect to an agreement under
subsection (a), a calendar quarter or other period
specified by the Secretary with respect to the pay-
ment of rebates under such agreement.’’.
SEC. 16002. TERMINATION OF CURRENT PROGRAM AND
TRANSITION.
(a) TERMINATION OF CURRENT PROGRAM; LIMITA-
TION ON MEDICAID PAYMENTS IN FISCAL YEAR 1996.—
Title XIX of the Social Security Act is amended—
(1) by redesignating section 1931 as section
1932; and
1515
(2) by inserting after section 1930 the following
new section:
‘‘TERMINATION OF MEDICAID PROGRAM; LIMITATION ON
NEW OBLIGATION AUTHORITY
‘‘SEC. 1931. (a) ELIMINATION OF INDIVIDUAL ENTI-
TLEMENT.—Effective on the date of the enactment of this
section—
‘‘(1) except as provided in subsection (b), the
Federal Government has no obligation to provide
payment with respect to items and services provided
under this title, and
‘‘(2) this title shall not be construed as provid-
ing for an entitlement, under Federal law in relation
to the Federal Government, in an individual or per-
son (including any provider) at the time of provision
or receipt of services.
‘‘(b) LIMITATION
ON OBLIGATION AUTHORITY.—
Notwithstanding any other provision of this title—
‘‘(1) 
POST-ENACTMENT, 
PRE-MEDIGRANT.—
Subject to paragraph (2), the Secretary is author-
ized to enter into obligations with any State under
this title for expenses incurred after the date of the
enactment of this Act and during fiscal year 1996,
but not in excess of the obligation allotment for that
State for fiscal year 1996 under section 2121(b)(4).
1516
‘‘(2) NONE AFTER MEDIGRANT.—The Secretary
is not authorized to enter into any obligation with
any State under this title for expenses incurred on
or after the earlier of—
‘‘(A) October 1, 1996; or
‘‘(B) the first day of the first quarter on
which the State plan under title XXI is first ef-
fective.
‘‘(3) AGREEMENT.—A State’s submission of
claims for payment under section 1903 after the
date of the enactment of this title with respect to
which the limitation described in paragraph (1) ap-
plies is deemed to constitute the State’s acceptance
of the obligation limitation under such paragraph
(including the formula for computing the amount of
such obligation limitation).
‘‘(c) REQUIREMENT
FOR TIMELY SUBMITTAL
OF
CLAIMS.—No payment shall be made to a State under this
title with respect to an obligation incurred before the date
of the enactment of this section, unless the State has sub-
mitted to the Secretary, by not later than June 30, 1996,
a claim for Federal financial participation for expenses
paid by the State with respect to such obligations. Nothing
in subsection (a) or (b) shall be construed as affecting the
1517
obligation of the Federal Government to pay claims de-
scribed in the previous sentence.’’.
(b) MEDICAID TRANSITION.—
(1) TREATMENT OF CERTAIN CAUSES OF AC-
TION.—No cause of action under title XIX of the
Social Security Act which seeks to require a State
to establish or maintain minimum payment rates
under such title and which has not become final as
of the date of the enactment of this Act shall be
brought or continued.
(2) 
TREATMENT
OF
CERTAIN
DISALLOW-
ANCES.—Notwithstanding any provision of law, in
the case where payment has been made under sec-
tion 1903(a) of the Social Security Act to a State
before October 1, 1995, and for which a disallow-
ance has not been taken as of such date (or, if so
taken, has not been completed by such date), the
Secretary of Health and Human Services shall dis-
continue the disallowance proceeding and, if such
disallowance has been taken as of the date of the en-
actment of this Act, any payment reductions effected
shall be rescinded and the payments returned to the
State.
(3) EXTENSION
OF
MORATORIUM.—Section
6408(a)(3) of the Omnibus Budget Reconciliation
1518
Act of 1989, as amended by section 13642 of the
Omnibus Budget Reconciliation Act of 1993, is
amended by striking ‘‘December 31, 1995’’ and in-
serting ‘‘the first day of the first quarter on which
the MediGrant plan for the State of Michigan is
first effective under title XXI of such Act’’.
(c) NO APPLICATION OF PRIOR MEDICAID JUDG-
MENTS TO MEDIGRANT PROGRAM.—No judicial or admin-
istrative decision rendered regarding requirements im-
posed under title XIX of the Social Security Act with re-
spect to a State shall have any application to the
MediGrant plan of the State title XXI of such Act. A
State may, pursuant to the previous sentence, seek the
abrogation or modification of any such decision after the
date of termination of the State plan under title XIX of
such Act.
(d) TERMINATION OF PROGRAM FOR DISTRIBUTION
OF PEDIATRIC VACCINES
(1) IN GENERAL.—Subject to paragraph (2),
section 1928 of the Social Security Act (42 U.S.C.
1396s) is repealed, effective on the date of the en-
actment of this Act.
(2) TRANSITION.—(A) Such repeal shall not af-
fect the distribution of vaccines purchased and deliv-
1519
ered to the States before the date of the enactment
of this Act.
(B) No vaccine may be purchased after such
date by the Federal Government or any State under
any contract under section 1928(d) of the Social Se-
curity Act.
(e) ANTI-FRAUD PROVISIONS.—
(1) IN GENERAL.—Section 1128(h)(1) of the
Social Security Act (42 U.S.C. 1320a–7(h)(1)) is
amended by inserting ‘‘or a MediGrant plan under
title XXI’’ after ‘‘title XIX’’.
(2) CONTINUED
ROLE
OF
INSPECTOR
GEN-
ERAL.—The Inspector General in the Department of
Health and Human Services shall have the same re-
sponsibilities and duties in relation to fraud and
abuse and related matters under the MediGrant pro-
gram under title XXI of the Social Security Act as
such Inspector General has had in relation to the
medicaid program under title XIX of such Act be-
fore the date of the enactment of this Act.
(f) FINAL EXTENSION OF MEDICAID WAIVER FOR
DAYTON AREA HEALTH PLAN.—Section 2 of Public Law
102–276, as amended by section 13644 of the Omnibus
Budget Reconciliation Act of 1993, is amended by striking
‘‘December 31, 1995’’ and inserting ‘‘the last day of the
1520
last calendar quarter in which a State medicaid plan is
in effect in Ohio under title XIX of the Social Security
Act’’.
TITLE XVII—ABOLISHMENT OF
DEPARTMENT OF COMMERCE
SEC. 17001. SHORT TITLE.
This title may be cited as the ‘‘Department of Com-
merce Dismantling Act’’.
SEC. 17002. TABLE OF CONTENTS.
The table of contents for this title is as follows:
TITLE XVII—ABOLISHMENT OF DEPARTMENT OF COMMERCE
Sec. 17001. Short title.
Sec. 17002. Table of contents.
Subtitle A—Abolishment of Department of Commerce
Sec. 17101. Abolishment of Department of Commerce.
Sec. 17102. Resolution and termination of Department functions.
Sec. 17103. Responsibilities of the Director of the Office of Management and
Budget.
Sec. 17104. Office of Programs Resolution.
Sec. 17105. Personnel.
Sec. 17106. Plans and reports.
Sec. 17107. GAO audit and access to records.
Sec. 17108. Conforming amendments.
Sec. 17109. Privatization framework.
Sec. 17110. Priority placement programs for Federal employees affected by a
reduction in force attributable to this title.
Sec. 17111. Funding reductions for transferred functions.
Sec. 17112. Definitions.
Subtitle B—Disposition of Various Programs, Functions, and Agencies of
Department of Commerce
Sec. 17201. Abolishment of Economic Development Administration and trans-
fer of functions.
Sec. 17202. Technology Administration.
Sec. 17203. Reorganization of the Bureau of the Census.
Sec. 17204. Bureau of Economic Analysis.
Sec. 17205. Terminated functions of NTIA.
Sec. 17206. National Oceanic and Atmospheric Administration.
Sec. 17207. National Institute for Science and Technology.
Sec. 17208. Miscellaneous terminations; moratorium on program activities.
1521
Sec. 17209. Effective date.
Subtitle C—Office of United States Trade Representative
CHAPTER 1—GENERAL PROVISIONS
Sec. 17301. Definitions.
CHAPTER 2—OFFICE OF UNITED STATES TRADE REPRESENTATIVE
SUBCHAPTER A—ESTABLISHMENT
Sec. 17311. Establishment of the Office.
Sec. 17312. Functions of the USTR.
SUBCHAPTER B—OFFICERS
Sec. 17321. Deputy Administrator of the Office.
Sec. 17322. Deputy United States Trade Representatives.
Sec. 17323. Assistant Administrators.
Sec. 17324. Director General for Export Promotion.
Sec. 17325. General Counsel.
Sec. 17326. Inspector General.
Sec. 17327. Chief Financial Officer.
SUBCHAPTER C—TRANSFERS TO THE OFFICE
Sec. 17331. Office of the United States Trade Representative.
Sec. 17332. Transfers from the Department of Commerce.
Sec. 17333. Trade and Development Agency.
Sec. 17334. Export-Import Bank.
Sec. 17335. Overseas Private Investment Corporation.
Sec. 17336. Consolidation of export promotion and financing activities.
Sec. 17337. Additional trade functions.
SUBCHAPTER D—ADMINISTRATIVE PROVISIONS
Sec. 17341. Personnel provisions.
Sec. 17342. Delegation and assignment.
Sec. 17343. Succession.
Sec. 17344. Reorganization.
Sec. 17345. Rules.
Sec. 17346. Funds transfer.
Sec. 17347. Contracts, grants, and cooperative agreements.
Sec. 17348. Use of facilities.
Sec. 17349. Gifts and bequests.
Sec. 17350. Working capital fund.
Sec. 17351. Service charges.
Sec. 17352. Seal of Office.
SUBCHAPTER E—RELATED AGENCIES
Sec. 17361. Interagency Trade Organization.
Sec. 17362. National Security Council.
Sec. 17363. International Monetary Fund.
SUBCHAPTER F—CONFORMING AMENDMENTS
Sec. 17371. Amendments to general provisions.
Sec. 17372. Repeals.
1522
Sec. 17373. Conforming amendments relating to Executive Schedule positions.
SUBCHAPTER G—MISCELLANEOUS
Sec. 17381. Effective date.
Sec. 17382. Interim appointments.
Sec. 17383. Funding reductions resulting from reorganization.
Subtitle D—Patent and Trademark Office Corporation
Sec. 17401. Short title.
CHAPTER 1—PATENT AND TRADEMARK OFFICE
Sec. 17411. Establishment of Patent and Trademark Office as a corporation.
Sec. 17412. Powers and duties.
Sec. 17413. Organization and management.
Sec. 17414. Management Advisory Board.
Sec. 17415. Independence from Department of Commerce.
Sec. 17416. Trademark trial and appeal board.
Sec. 17417. Board of patent appeals and interferences.
Sec. 17418. Suits by and against the corporation.
Sec. 17419. Annual report of Commissioner.
Sec. 17420. Suspension or exclusion from practice.
Sec. 17421. Funding.
Sec. 17422. Audits.
Sec. 17423. Transfers.
CHAPTER 2—EFFECTIVE DATE; TECHNICAL AMENDMENTS
Sec. 17431. Effective date.
Sec. 17432. Technical and conforming amendments.
Subtitle E—Miscellaneous Provisions
Sec. 17501. References.
Sec. 17502. Exercise of authorities.
Sec. 17503. Savings provisions.
Sec. 17504. Transfer of assets.
Sec. 17505. Delegation and assignment.
Sec. 17506. Authority of director of the office of management and budget with
respect to functions transferred.
Sec. 17507. Certain vesting of functions considered transfers.
Sec. 17508. Availability of existing funds.
Sec. 17509. Definitions.
1523
Subtitle A—Abolishment of
Department of Commerce
SEC. 17101. ABOLISHMENT OF DEPARTMENT OF COM-
MERCE.
(a) ABOLISHMENT OF DEPARTMENT.—The Depart-
ment of Commerce is abolished effective on the abolish-
ment date specified in subsection (c).
(b) TRANSFER
OF DEPARTMENT FUNCTIONS
TO
OMB.—Except as otherwise provided in this title, all func-
tions that immediately before the abolishment date speci-
fied in subsection (c) are authorized to be performed by
the Secretary of Commerce, any other officer or employee
of the Department acting in that capacity, or any agency
or office of the Department, are transferred to the Direc-
tor of the Office of Management and Budget effective on
that abolishment date.
(c) ABOLISHMENT DATE.—The abolishment date re-
ferred to in subsections (a) and (b) is the earlier of—
(1) the last day of the 6-month period begin-
ning on the date of the enactment of this Act; or
(2) September 30, 1996.
SEC. 17102. RESOLUTION AND TERMINATION OF DEPART-
MENT FUNCTIONS.
(a) RESOLUTION OF FUNCTIONS.—During the period
beginning on the date of enactment of this Act and ending
1524
on the functions termination date specified in subsection
(c)—
(1) the disposition and resolution of functions
of the Department of Commerce shall be completed
in accordance with this title; and
(2) the Director shall resolve all functions that
are transferred to the Director under section
17101(b) and are not otherwise continued under this
title.
(b) TERMINATION
OF FUNCTIONS.—All functions
that are transferred to the Director under section
17101(b) that are not otherwise continued by this title
shall terminate on the functions termination date specified
in subsection (c).
(c) FUNCTIONS TERMINATION DATE.—The functions
termination date referred to in subsections (a) and (b) is
the last day of the 3-year period beginning on the date
of the enactment of this Act.
SEC. 17103. RESPONSIBILITIES OF THE DIRECTOR OF THE
OFFICE OF MANAGEMENT AND BUDGET.
The Director of the Office of Management and Budg-
et, acting through the Administrator of the Office of Pro-
grams Resolution, shall be responsible for the implementa-
tion of this subtitle, including—
1526
(c) FUNCTIONS.—The Administrator shall perform
such functions as are vested in the Administrator by this
title or delegated to the Administrator by the Director.
(d) AUTHORITIES
OF
THE ADMINISTRATOR.—For
purposes of performing the functions of the Administrator
under subsection (c) and subject to the availability of ap-
propriations, the Administrator may—
(1) enter into contracts;
(2) employ experts and consultants in accord-
ance with section 3109 of title 5, United States
Code, at rates for individuals not to exceed the per
diem rate equivalent to the rate for level IV of the
Executive Schedule; and
(3) utilize, on a reimbursable basis, the services,
facilities, and personnel of other Federal agencies.
(e) AUDITOR GENERAL.—
(1) IN GENERAL.—There shall be in the Office
an Auditor General, who shall be appointed by and
report to the Administrator.
(2) FUNCTIONS.—The Auditor General shall—
(A) conduct audits and investigations with
respect to activities of the Office; and
(B) submit to the Administrator and the
Director reports on the findings of those audits
and investigations.
1527
(f) REORGANIZATION.—The Administrator may allo-
cate or reallocate among the officers of the Office any
function vested in the Administrator or the Office, and
may establish, consolidate, alter, or discontinue in the Of-
fice any organizational entities that were entities of the
Department of Commerce, as the Administrator considers
necessary or appropriate.
(g) ANNUAL AUTHORIZATION REQUIRED.—No sums
may be appropriated for any fiscal year for the Office ex-
cept as specifically authorized for that fiscal year by law.
SEC. 17105. PERSONNEL.
Effective on the abolishment date specified in section
17101(c), there are transferred to the Office all individ-
uals who—
(1) immediately before the abolishment date,
were officers or employees of the Department of
Commerce; and
(2) in their capacity as such an officer or em-
ployee, performed functions that are transferred to
the Director under section 17101(b).
SEC. 17106. PLANS AND REPORTS.
(a) INITIAL IMPLEMENTATION PLAN.—
(1) IN GENERAL.—Not later than 90 days after
the date of enactment of this Act, the Director shall
submit a report, through the President, to the Con-
1528
gress specifying those actions taken and necessary to
be taken—
(A) to resolve those programs and func-
tions terminated on the date of enactment of
this Act; and
(B) to implement the additional transfers
and other program dispositions provided for in
this title.
(2) CONTENTS.—The report shall include—
(A) a description of the anticipated size
and composition of the Programs Resolution
Office,
(B) recommendations for additional legisla-
tion, if any, needed to reflect or otherwise to
implement the abolishments, transfers, termi-
nations, and other dispositions of programs and
functions under this title; and
(C) a description of actions planned and
taken to comply with limitations imposed by
this Act on future spending for continued func-
tions.
(b) ANNUAL STATUS REPORTS.—At the end of each
of the first, second, and third years following the date of
enactment of this Act, the Director shall submit a report,
through the President, to the Congress which—
1529
(1) specifies the status and progress of actions
taken to implement this title and to wind-up the af-
fairs of the Department of Commerce by the func-
tions termination date specified in section 17102(c);
(2) includes a summary of reports submitted to
the Director under section 17104(e)(2)(B) during
the period covered by the report by the Auditor Gen-
eral of the Office;
(3) includes any recommendations the Director
may have for additional legislation; and
(4) describes actions taken to comply with limi-
tations imposed by this Act on future spending for
continued functions.
(c) GAO REPORTS.—Not later than 60 days after is-
suance of each report under subsections (a) and (b), the
Comptroller General of the United States shall submit to
the Congress a report which—
(1) evaluates the report under that subsection;
and
(2) includes any recommendations the Comp-
troller General considers appropriate.
SEC. 17107. GAO AUDIT AND ACCESS TO RECORDS.
(a) AUDIT OF PERSONS PERFORMING FUNCTIONS
PURSUANT TO THIS ACT.—All agencies, corporations, or-
ganizations, and other persons of any description which
1530
under the authority of the United States perform any
function or activity pursuant to this title shall be subject
to audit by the Comptroller General of the United States
with respect to such function or activity.
(b) AUDIT OF PERSONS PROVIDING CERTAIN GOODS
OR SERVICES.—All persons and organizations which, by
contract, grant, or otherwise, provide goods or services to,
or receive financial assistance from, any agency or other
person performing functions or activities under or referred
to by this title shall be subject to audit by the Comptroller
General of the United States with respect to such provi-
sion of goods or services or receipt of financial assistance.
(c) PROVISIONS APPLICABLE
TO
AUDITS UNDER
THIS SECTION.—
(1) NATURE
AND
SCOPE
OF
AUDIT.—The
Comptroller General of the United States shall de-
termine the nature, scope, terms, and conditions of
audits conducted under this section.
(2) COORDINATION
WITH
OTHER
PROVISIONS
OF LAW.—The authority of the Comptroller General
of the United States under this section shall be in
addition to any audit authority available to the
Comptroller General under other provisions of this
title or any other law.
1531
(3) RIGHTS
OF
ACCESS, EXAMINATION, AND
COPYING.—The Comptroller General of the United
States, and any duly authorized representative of the
Comptroller General, shall have access to, and the
right to examine and copy, all records and other re-
corded information in any form, and to examine any
property within the possession or control of any
agency or person which is subject to audit under this
section, which the Comptroller General considers rel-
evant to an audit conducted under this section.
(4) ENFORCEMENT OF RIGHT OF ACCESS.—The
right of access of the Comptroller General of the
United States to information under this section shall
be enforceable under section 716 of title 31, United
States Code.
(5) 
MAINTENANCE
OF
CONFIDENTIAL
RECORDS.—Section 716(e) of title 31, United States
Code, shall apply to information obtained by the
Comptroller General under this section.
SEC. 17108. CONFORMING AMENDMENTS.
(a) PRESIDENTIAL SUCCESSION.—Section 19(d)(1)
of title 3, United States Code, is amended by striking
‘‘Secretary of Commerce,’’.
1532
(b) EXECUTIVE DEPARTMENTS.—Section 101 of title
5, United States Code, is amended by striking the follow-
ing item: ‘‘The Department of Commerce.’’.
(c) SECRETARY’S COMPENSATION.—Section 5312 of
title 5, United States Code, is amended by striking the
following item: ‘‘Secretary of Commerce.’’.
(d) COMPENSATION FOR POSITIONS AT LEVEL III.—
Section 5314 of title 5, United States Code, is amended—
(1) by striking the following item:
‘‘Under Secretary of Commerce, Under Secretary of
Commerce for Economic Affairs, Under Secretary of Com-
merce for Export Administration and Under Secretary of
Commerce for Travel and Tourism.’’;
(2) by striking the following item:
‘‘Under Secretary of Commerce for Oceans and At-
mosphere, the incumbent of which also serves as Adminis-
trator of the National Oceanic and Atmospheric Adminis-
tration.’’;
(3) by striking the following item:
‘‘Under Secretary of Commerce for Technology.’’;
and
(4) by adding at the end the following item:
‘‘Administrator, Office of Programs Resolution’’.
(e) COMPENSATION FOR POSITIONS AT LEVEL IV.—
Section 5315 of title 5, United States Code, is amended—
1533
(1) by striking the following item:
‘‘Assistant Secretaries of Commerce (11).’’;
(2) by striking the following item:
‘‘General Counsel of the Department of Commerce.’’;
(3) by striking the following item:
‘‘Assistant Secretary of Commerce for Oceans and
Atmosphere, the incumbent of which also serves as Deputy
Administrator of the National Oceanic and Atmospheric
Administration.’’;
(4) by striking the following item:
‘‘Director, National Institute of Standards and Tech-
nology, Department of Commerce.’’;
(5) by striking the following item:
‘‘Inspector General, Department of Commerce.’’;
(6) by striking the following item:
‘‘Chief Financial Officer, Department of Com-
merce.’’; and
(7) in the item relating to the Bureau of the
Census, by striking ‘‘, Department of Commerce’’.
(f) COMPENSATION FOR POSITIONS AT LEVEL V.—
Section 5316 of title 5, United States Code, is amended—
(1) by striking the following item:
‘‘Director, United States Travel Service, Department
of Commerce.’’; and
(2) by striking the following item:
1534
‘‘National Export Expansion Coordinator, Depart-
ment of Commerce.’’.
(g) INSPECTOR GENERAL ACT OF 1978.—The In-
spector General Act of 1978 (5 U.S.C. App.) is amend-
ed—
(1) in section 9(a)(1), by striking subparagraph
(B);
(2) in section 11(1), by striking ‘‘Commerce,’’;
and
(3) in section 11(2), by striking ‘‘Commerce,’’.
(h) EFFECTIVE DATE.—The amendments made by
this section shall be effective on the abolishment date spec-
ified in section 17101(c).
SEC. 17109. PRIVATIZATION FRAMEWORK.
(a) IN GENERAL.—The Office of Management and
Budget shall privatize each function designated for privat-
ization under subtitle B within 18 months of the date the
transfer of such function to the Office. The Office shall
pursue such forms of privatization arrangements as the
Office considers appropriate to best serve the interests of
the United States. If the Office is unable to privatize a
function within 18 months, the Office shall report its in-
ability to the Congress with its recommendations as to the
appropriate disposition of the function and its assets.
1535
(b) ROLE OF THE FEDERAL GOVERNMENT.—No pri-
vatization arrangement made under subsection (a) shall
include any future role for, or accountability to, the Fed-
eral Government unless it is necessary to assure the con-
tinued accomplishment of a specific Federal objective. The
Federal role should be the minimum necessary to accom-
plish Federal objectives.
(c) ASSETS.—In privatizing a function, the Office of
Management and Budget shall take any action necessary
to preserve the value of the assets of a function during
the period the Office holds such assets and to continue
the performance of the function to the extent necessary
to preserve the value of the assets or to accomplish core
Federal objectives.
SEC. 17110. PRIORITY PLACEMENT PROGRAMS FOR FED-
ERAL EMPLOYEES AFFECTED BY A REDUC-
TION IN FORCE ATTRIBUTABLE TO THIS
TITLE.
(a) IN GENERAL.—Subchapter I of chapter 33 of title
5, United States Code, is amended by adding at the end
the following:
1536
‘‘§ 3329b. Priority placement programs for employees
affected by a reduction in force attrib-
utable to the Department of Commerce
Dismantling Act
‘‘(a)(1) For the purpose of this section, the term ‘af-
fected agency’—
‘‘(A) except as provided in subparagraph (B),
means an Executive agency to which personnel are
transferred in connection with a transfer of function
under the Department of Commerce Dismantling
Act, and
‘‘(B) with respect to employees of the Depart-
ment of Commerce in general administration, the In-
spector General’s office, or the General Council’s of-
fice, or who provided overhead support to other com-
ponents of the Department on a reimbursable basis,
means all agencies to which functions of those em-
ployees are transferred under the Department of
Commerce Dismantling Act.
‘‘(2) This section applies with respect to any reduc-
tion in force that—
‘‘(A) occurs within 12 months after the date of
the enactment of this section; and
‘‘(B) is due to—
1537
‘‘(i) the termination of any function of the
Department of Commerce or the Office of Pro-
grams Resolution, as the case may be; or
‘‘(ii) the agency’s having excess personnel
as a result of a transfer of function described
in paragraph (1), as determined by—
‘‘(I) the Administrator of the Office of
Programs Resolution, in the case of a
function transferred to the Office of Man-
agement and Budget; or
‘‘(II) the head of the agency, in the
case of any other function.
‘‘(b) As soon as practicable after the date of the en-
actment of this section, each affected agency shall estab-
lish an agencywide priority placement program to facili-
tate employment placement for employees who—
‘‘(1) are scheduled to be separated from service
due to a reduction in force described in subsection
(a)(2); or
‘‘(2) are separated from service due to such a
reduction in force.
‘‘(c)(1) Each agencywide priority placement program
shall include provisions under which a vacant position
shall not be filled by the appointment or transfer of any
individual from outside of that agency if—
1538
‘‘(A) there is then available any individual de-
scribed in paragraph (2) who is qualified for the po-
sition; and
‘‘(B) the position—
‘‘(i) is at the same grade (or pay level) or
not more than 1 grade (or pay level) below that
of the position last held by such individual be-
fore placement in the new position; and
‘‘(ii) is within the same commuting area as
the individual’s last-held position (as referred to
in clause (i)) or residence.
‘‘(2) For purposes of an agencywide priority place-
ment program, an individual shall be considered to be de-
scribed in this paragraph if such individual’s most recent
performance evaluation was at least fully successful (or
the equivalent), and such individual is either—
‘‘(A) an employee of such agency who is sched-
uled to be separated, as described in subsection
(b)(1); or
‘‘(B) an individual who became a former em-
ployee of such agency as a result of a separation, as
described in subsection (b)(2).
‘‘(d)(1) Nothing in this section shall affect any prior-
ity placement program of the Department of Defense
1539
which is in operation as of the date of the enactment of
this section.
‘‘(2) Nothing in this section shall impair placement
programs within agencies subject to reductions in force re-
sulting from causes other than the Department of Com-
merce Dismantling Act.
‘‘(e) An individual shall cease to be eligible to partici-
pate in a program under this section on the earlier of—
‘‘(1) the conclusion of the 12-month period be-
ginning on the date on which that individual first
became eligible to participate under subsection
(c)(2); or
‘‘(2) the date on which the individual declines
a bona fide offer (or if the individual does not act
on the offer, the last day for accepting such offer)
from the affected agency of a position described in
subsection (c)(1)(B).’’.
(b) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Title 5, United States Code, is amended by redesignat-
ing the second section which is designated as section 3329
as section 3329a.
(2) The table of sections for chapter 33 of title 5,
United States Code, is amended by striking the item relat-
ing to the second section which is designated as section
3329 and inserting the following:
1540
‘‘3329a.
Government-wide list of vacant positions.
‘‘3329b.
Priority placement programs for employees affected by a reduction
in force attributable to the Department of Commerce Disman-
tling Act.’’.
SEC. 17111. FUNDING REDUCTIONS FOR TRANSFERRED
FUNCTIONS.
(a) FUNDING REDUCTIONS.—Except as provided in
subsection (b), for each fiscal year that begins on or after
the date of the enactment of this Act, the total amount
obligated or expended by the United States in performing
functions transferred under this title to the Director or
to the Office from the Department of Commerce, or any
of its officers or components, may not exceed 75 percent
of the total amount obligated or expended by the United
States in performing such functions for fiscal year 1995.
(b) EXCEPTIONS.—Subsection (a) shall not apply
to—
(1) functions transferred to the Director under
section 17203 (relating to the Bureau of the Cen-
sus); or
(2) obligations or expenditures incurred as a di-
rect consequence of the termination, transfer, or
other disposition of functions described in subsection
(a) pursuant to this title.
(c) RULE
OF CONSTRUCTION.—This section shall
take precedence over any other provision of law unless
1541
such provision explicitly refers to this section and makes
an exception to it.
(d) RESPONSIBILITIES OF THE DIRECTOR.—The Di-
rector shall—
(1) ensure compliance with the requirements of
this section; and
(2) include in each report under sections 17106
(a) and (b) a description of actions taken to comply
with such requirements.
SEC. 17112. DEFINITIONS.
For purposes of this subtitle, the following definitions
apply:
(1) ADMINISTRATOR.—The term ‘‘Adminis-
trator’’ means the Administrator of the Office of
Programs Resolution.
(2) DIRECTOR.—The term ‘‘Director’’ means
the Director of the Office of Management and Budg-
et.
(3) OFFICE.—The term ‘‘Office’’ means the Of-
fice of Programs Resolution.
(4) WIND-UP PERIOD.—The term ‘‘wind-up pe-
riod’’ means the period beginning on the date of the
enactment of this Act and ending on the functions
termination date specified in section 17102(c).
1542
Subtitle B—Disposition of Various
Programs, Functions, and Agen-
cies of Department of Com-
merce
SEC. 17201. ABOLISHMENT OF ECONOMIC DEVELOPMENT
ADMINISTRATION AND TRANSFER OF FUNC-
TIONS.
(a) IN GENERAL.—The Public Works and Economic
Development Act of 1965 (40 U.S.C. 3131 et seq.) is
amended by striking all after the first section and insert-
ing the following:
‘‘SEC. 2. ADMINISTRATOR DEFINED.
‘‘In this Act, the term ‘Administrator’ means the Ad-
ministrator of the Small Business Administration.
‘‘TITLE I—STATEMENT OF
PURPOSE
‘‘SEC. 101. FINDINGS AND DECLARATION.
‘‘(a) FINDINGS.—Congress finds that—
‘‘(1) the maintenance of the national economy
at a high level is vital to the best interests of the
United States, but that some of our regions, coun-
ties, and communities are suffering substantial and
persistent unemployment and underemployment that
cause hardship to many individuals and their fami-
lies, and waste invaluable human resources;
1543
‘‘(2) to overcome this problem the Federal Gov-
ernment, in cooperation with the States, should help
areas and regions of substantial and persistent un-
employment and underemployment to take effective
steps in planning and financing their public works
and economic development;
‘‘(3) Federal financial assistance, including
grants for public works and development facilities to
communities, industries, enterprises, and individuals
in areas needing development should enable such
areas to help themselves achieve lasting improve-
ment and enhance the domestic prosperity by the es-
tablishment of stable and diversified local economies
and improved local conditions, if such assistance is
preceded by and consistent with sound, long-range
economic planning; and
‘‘(4) under the provisions of this Act, new em-
ployment opportunities should be created by develop-
ing and expanding new and existing public works
and other facilities and resources rather than by
merely transferring jobs from one area of the United
States to another.
‘‘(b) DECLARATION.—Congress declares that, in fur-
therance of maintaining the national economy at a high
level—
1544
‘‘(1) the assistance authorized by this Act
should be made available to both rural and urban
areas;
‘‘(2) such assistance should be made available
for planning for economic development prior to the
actual occurrences of economic distress in order to
avoid such condition; and
‘‘(3) such assistance should be used for long-
term economic rehabilitation in areas where long-
term economic deterioration has occurred or is tak-
ing place.
‘‘TITLE II—GRANTS FOR PUBLIC
WORKS AND DEVELOPMENT
FACILITIES
‘‘SEC. 201. DIRECT AND SUPPLEMENTARY GRANTS.
‘‘(a) IN GENERAL.—Upon the application of any eli-
gible recipient, the Administrator may—
‘‘(1) make direct grants for the acquisition or
development of land and improvements for public
works, public service, or development facility usage,
and the acquisition, design and engineering, con-
struction, rehabilitation, alteration, expansion, or im-
provement of such facilities, including related ma-
chinery and equipment, within an area described in
section 502(a), if the Administrator finds that—
1545
‘‘(A) the project for which financial assist-
ance is sought will directly or indirectly—
‘‘(i) tend to improve the opportunities,
in the area where such project is or will be
located, for the successful establishment or
expansion of industrial or commercial
plants or facilities;
‘‘(ii) otherwise assist in the creation
of additional long-term employment oppor-
tunities for such area; or
‘‘(iii) primarily benefit the long-term
unemployed and members of low-income
families;
‘‘(B) the project for which a grant is re-
quested will fulfill a pressing need of the area,
or part thereof, in which it is, or will be, lo-
cated; and
‘‘(C) the area for which a project is to be
undertaken has an approved investment strat-
egy as provided by section 503 and such project
is consistent with such strategy;
‘‘(2) make supplementary grants in order to en-
able the States and other entities within areas de-
scribed in section 502(a) to take maximum advan-
tage of designated Federal grant-in-aid programs (as
1546
defined in subsection (c)(4)), direct grants-in-aid au-
thorized under this section, and Federal grant-in-aid
programs authorized by the Watershed Protection
and Flood Prevention Act (68 Stat. 666), and the
11 watersheds authorized by the Flood Control Act
of December 22, 1944 (58 Stat. 887), for which
they are eligible but for which, because of their eco-
nomic situation, they cannot supply the required
matching share.
‘‘(b) COST SHARING.—Subject to subsection (c), the
amount of any direct grant under this subsection for any
project shall not exceed 50 percent of the cost of such
project.
‘‘(c) REQUIREMENTS
APPLICABLE
TO
SUPPLE-
MENTARY GRANTS.—
‘‘(1) AMOUNT OF SUPPLEMENTARY GRANTS.—
‘‘(A) IN GENERAL.—Except as provided by
subparagraph (B), the amount of any supple-
mentary grant under this section for any
project shall not exceed the applicable percent-
age established by regulations promulgated by
the Administrator, but in no event shall the
non-Federal share of the aggregate cost of any
such project (including assumptions of debt) be
less than 20 percent of such cost.
1547
‘‘(B) EXCEPTION.—Notwithstanding sub-
paragraph (A), in the case of an Indian tribe,
a State (or a political subdivision of the State),
or a community development corporation which
the Administrator determines has exhausted its
effective taxing and borrowing capacity, the Ad-
ministrator shall reduce the non-Federal share
below the percentage specified in subparagraph
(A) or shall waive the non-Federal share in the
case of such a grant for a project in an area
described in section 502(a)(4).
‘‘(2) FORM
OF
SUPPLEMENTARY
GRANTS.—
Supplementary grants shall be made by the Admin-
istrator, in accordance with such regulations as the
Administrator may prescribe, by increasing the
amounts of direct grants authorized under this sec-
tion or by the payment of funds appropriated under
this Act to the heads of the departments, agencies,
and instrumentalities of the Federal Government re-
sponsible for the administration of the applicable
Federal programs.
‘‘(3) FEDERAL SHARE LIMITATIONS SPECIFIED
IN OTHER LAWS.—Notwithstanding any requirement
as to the amount or sources of non-Federal funds
that may otherwise be applicable to the Federal pro-
1548
gram involved, funds provided under this subsection
shall be used for the sole purpose of increasing the
Federal contribution to specific projects in areas de-
scribed in section 502(a) under such programs above
the fixed maximum portion of the cost of such
project otherwise authorized by the applicable law.
‘‘(4) 
DESIGNATED
FEDERAL
GRANT-IN-AID
PROGRAMS DEFINED.—In this subsection, the term
‘designated Federal grant-in-aid programs’ means
such existing or future Federal grant-in-aid pro-
grams assisting in the construction or equipping of
facilities as the Administrator may, in furtherance of
the purposes of this Act, designate as eligible for al-
location of funds under this section.
‘‘(5) CONSIDERATION OF RELATIVE NEED IN
DETERMINING
AMOUNT.—In 
determining 
the
amount of any supplementary grant available to any
project under this section, the Administrator shall
take into consideration the relative needs of the area
and the nature of the projects to be assisted.
‘‘(d) REGULATIONS.—The Administrator shall pre-
scribe rules, regulations, and procedures to carry out this
section which will assure that adequate consideration is
given to the relative needs of eligible areas. In prescribing
1549
such rules, regulations, and procedures the Administrator
shall consider among other relevant factors—
‘‘(1) the severity of the rates of unemployment
in the eligible areas and the duration of such unem-
ployment; and
‘‘(2) the income levels of families and the extent
of underemployment in eligible areas.
‘‘(e) REVIEW AND COMMENT UPON PROJECTS BY
LOCAL GOVERNMENTAL AUTHORITIES.—The Adminis-
trator shall prescribe regulations which will assure that
appropriate local governmental authorities have been given
a reasonable opportunity to review and comment upon
proposed projects under this section.
‘‘SEC. 202. CONSTRUCTION COST INCREASES.
‘‘In any case where a grant (including a supplemental
grant) has been made by the Administrator under this
title for a project and after such grant has been made
but before completion of the project, the cost of such
project based upon the designs and specifications which
were the basis of the grant has been increased because
of increases in costs, the amount of such grant may be
increased by an amount equal to the percentage increase,
as determined by the Administrator, in such costs, but in
no event shall the percentage of the Federal share of such
project exceed that originally provided for in such grant.
1550
‘‘SEC. 203. USE OF FUNDS IN PROJECTS CONSTRUCTED
UNDER PROJECTED COST.
‘‘In any case where a grant (including a supplemental
grant) has been made by the Administrator under this
title for a project, and after such grant has been made
but before completion of the project, the cost of such
project based upon the designs and specifications which
were the basis of the grant has decreased because of de-
creases in costs, such underrun funds may be used to im-
prove the project either directly or indirectly as deter-
mined by the Administrator.
‘‘SEC. 204. CHANGED PROJECT CIRCUMSTANCES.
‘‘In any case where a grant (including a supplemental
grant) has been made by the Administrator under this
title for a project, and after such grant has been made
but before completion of the project, the purpose or scope
of such project based upon the designs and specifications
which were the basis of the grant has changed, the Admin-
istrator may approve the use of grant funds on such
changed project if the Administrator determines that such
changed project meets the requirements of this title and
that such changes are necessary to enhance economic de-
velopment in the area.
1551
‘‘TITLE III—SPECIAL ECONOMIC
DEVELOPMENT AND ADJUST-
MENT ASSISTANCE
‘‘SEC. 301. STATEMENT OF PURPOSE.
‘‘The purpose of this title to provide special economic
development and adjustment assistance programs to help
State and local areas meet special needs arising from ac-
tual or threatened severe unemployment arising from eco-
nomic dislocation (including unemployment arising from
actions of the Federal Government, from defense base clo-
sures and realignments, and from compliance with envi-
ronmental requirements which remove economic activities
from a locality) and economic adjustment problems result-
ing from severe changes in economic conditions (including
long-term economic deterioration), and to encourage coop-
erative intergovernmental action to prevent or solve eco-
nomic adjustment problems. Nothing in this title is in-
tended to replace the efforts of the economic adjustment
program of the Department of Defense.
‘‘SEC. 302. SPECIAL ECONOMIC DEVELOPMENT AND AD-
JUSTMENT ASSISTANCE.
‘‘(a) IN GENERAL.—The Administrator is authorized
to make grants directly to any eligible recipient in an area
which the Administrator determines, in accordance with
1552
criteria to be established by the Administrator by regula-
tion—
‘‘(1) has experienced, or may reasonably be
foreseen to be about to experience, a special need to
meet an expected rise in unemployment, or other
economic adjustment problems (including those
caused by any action or decision of the Federal Gov-
ernment); or
‘‘(2) has demonstrated long-term economic de-
terioration.
‘‘(b) PURPOSES.—Amounts from grants under sub-
section (a) shall be used by an eligible recipient to carry
out or develop an investment strategy which—
‘‘(1) meets the requirements of section 503; and
‘‘(2) is approved by the Administrator.
‘‘(c) TYPES OF ASSISTANCE.—In carrying out an in-
vestment strategy using amounts from grants under sub-
section (a), an eligible recipient may provide assistance for
any of the following:
‘‘(1) Public facilities.
‘‘(2) Public services.
‘‘(3) Business development.
‘‘(4) Planning.
‘‘(5) Research and technical assistance.
‘‘(6) Administrative expenses.
1553
‘‘(7) Training.
‘‘(8) Relocation of individuals and businesses.
‘‘(9) Other assistance which demonstrably fur-
thers the economic adjustment objectives of this
title.
‘‘(d) DIRECT EXPENDITURE OR REDISTRIBUTION BY
RECIPIENT.—Amounts from grants under subsection (a)
may be used in direct expenditures by the eligible recipient
or through redistribution by the eligible recipient to public
and private entities in grants, loans, loan guarantees, pay-
ments to reduce interest on loan guarantees, or other ap-
propriate assistance, but no grant shall be made by an
eligible recipient to a private profit-making entity.
‘‘(e) COORDINATION.—The Administrator to the ex-
tent practicable shall coordinate the activities relating to
the requirements for investment strategies and making
grants and loans under this title with other Federal pro-
grams, States, economic development districts, and other
appropriate planning and development organizations.
‘‘(f) BASE CLOSINGS AND REALIGNMENTS.—
‘‘(1) LOCATION OF PROJECTS.—In any case in
which the Administrator determines a need for as-
sistance under subsection (a) due to the closure or
realignment of a military installation, the Adminis-
trator may make such assistance available for
1554
projects to be carried out on the military installation
and for projects to be carried out in communities ad-
versely affected by the closure or realignment.
‘‘(2) INTEREST IN PROPERTY.—Notwithstand-
ing any other provision of law, the Administrator
may provide to an eligible recipient any assistance
available under this Act for a project to be carried
out on a military installation that is closed or sched-
uled for closure or realignment without requiring
that the eligible recipient have title to the property
or a leasehold interest in the property for any speci-
fied term.
‘‘SEC. 303. ANNUAL REPORTS BY RECIPIENT.
‘‘Each eligible recipient which receives assistance
under this title from the Administrator shall annually dur-
ing the period such assistance continue to make a full and
complete report to the Administrator, in such manner as
the Administrator shall prescribe, and such report shall
contain an evaluation of the effectiveness of the economic
assistance provided under this title in meeting the need
it was designed to alleviate and the purposes of this title.
‘‘SEC. 304. SALE OF FINANCIAL INSTRUMENTS IN REVOLV-
ING LOAN FUNDS.
‘‘Any loan, loan guarantee, equity, or other financial
instrument in the portfolio of a revolving loan fund, in-
1555
cluding any financial instrument made available using
amounts from a grant made before the effective date speci-
fied in section 802, may be sold, encumbered, or pledged
at the discretion of the grantee of the Fund, to a third
party provided that the net proceeds of the transaction—
‘‘(1) shall be deposited into the Fund and may
only be used for activities which are consistent with
the purposes of this title; and
‘‘(2) shall be subject to the financial manage-
ment, accounting, reporting, and auditing standards
which were originally applicable to the grant.
‘‘SEC. 305. TREATMENT OF REVOLVING LOAN FUNDS.
‘‘(a) IN GENERAL.—Amounts from grants made
under this title which are used by an eligible recipient to
establish a revolving loan fund shall not be treated, except
as provided by subsection (b), as amounts derived from
Federal funds for the purposes of any Federal law after
such amounts are loaned from the fund to a borrower and
repaid to the fund.
‘‘(b) EXCEPTIONS.—Amounts described in subsection
(a) which are loaned from a revolving loan fund to a bor-
rower and repaid to the fund—
‘‘(1) may only be used for activities which are
consistent with the purposes of this title; and
1556
‘‘(2) shall be subject to the financial manage-
ment, accounting, reporting, and auditing standards
which were originally applicable to the grant.
‘‘(c) REGULATIONS.—Not later than 30 days after
the effective date specified in section 802, the Adminis-
trator shall issue regulations to carry out subsection (a).
‘‘(d) PUBLIC REVIEW AND COMMENT.—Before issu-
ing any final guidelines or administrative manuals govern-
ing the operation of revolving loan funds established using
amounts from grants under this title, the Administrator
shall provide reasonable opportunity for public review of
and comment on such guidelines and administrative
manuals.
‘‘(e) APPLICABILITY
TO PAST GRANTS.—The re-
quirements of this section applicable to amounts from
grants made under this title shall also apply to amounts
from grants made, before the effective date specified in
section 802, under title I of this Act, as in effect on the
day before such effective date.
‘‘TITLE IV—TECHNICAL ASSIST-
ANCE, RESEARCH, AND IN-
FORMATION
‘‘SEC. 401. TECHNICAL ASSISTANCE.
‘‘(a) IN GENERAL.—In carrying out its duties under
this Act, the Administrator may provide technical assist-
1557
ance which would be useful in alleviating or preventing
conditions 
of 
excessive 
unemployment 
or
underemployment to areas which the Administrator finds
have substantial need for such assistance. Such assistance
shall include project planning and feasibility studies, man-
agement and operational assistance, establishment of busi-
ness outreach centers, and studies evaluating the needs
of, and development potentialities for, economic growth of
such areas.
‘‘(b) PROCEDURES AND TERMS.—
‘‘(1) MANNER OF PROVIDING ASSISTANCE.—As-
sistance may be provided by the Administrator
through—
‘‘(A) members of the Administrator’s staff;
‘‘(B) the payment of funds authorized for
this section to departments or agencies of the
Federal Government;
‘‘(C) the employment of private individ-
uals, partnerships, firms, corporations, or suit-
able institutions under contracts entered into
for such purposes; or
‘‘(D) grants-in-aid to appropriate public or
private nonprofit State, area, district, or local
organizations.
1558
‘‘(2) REPAYMENT TERMS.—The Administrator,
in the Administrator’s discretion, may require the
repayment of assistance provided under this sub-
section and prescribe the terms and conditions of
such repayment.
‘‘(c) GRANTS
COVERING
ADMINISTRATIVE
EX-
PENSES.—
‘‘(1) IN
GENERAL.—The Administrator may
make grants to defray not to exceed 50 percent of
the administrative expenses of organizations which
the Administrator determines to be qualified to re-
ceive grants-in-aid under subsections (a) and (b); ex-
cept that in the case of a grant under this sub-
section to an Indian tribe, the Administrator is au-
thorized to defray up to 100 percent of such ex-
penses.
‘‘(2) 
DETERMINATION
OF
NON-FEDERAL
SHARE.—In determining the amount of the non-Fed-
eral share of such costs or expenses, the Adminis-
trator shall give due consideration to all contribu-
tions both in cash and in kind, fairly evaluated, in-
cluding contributions of space, equipment, and serv-
ices.
‘‘(3) 
USE
OF
GRANTS
WITH
PLANNING
GRANTS.—Where practicable, grants-in-aid author-
1559
ized under this subsection shall be used in conjunc-
tion with other available planning grants to assure
adequate and effective planning and economical use
of funds.
‘‘(d) AVAILABILITY OF TECHNICAL INFORMATION;
FEDERAL PROCUREMENT.—The Administrator shall aid
areas described in section 502(a) and other areas by fur-
nishing to interested individuals, communities, industries,
and enterprises within such areas any assistance, technical
information, market research, or other forms of assist-
ance, information, or advice which would be useful in alle-
viating or preventing conditions of excessive unemploy-
ment or underemployment within such areas. The Admin-
istrator may furnish the procurement divisions of the var-
ious departments, agencies, and other instrumentalities of
the Federal Government with a list containing the names
and addresses of business firms which are located in areas
described in section 502(a) and which are desirous of ob-
taining Government contracts for the furnishing of sup-
plies or services, and designating the supplies and services
such firms are engaged in providing.
‘‘SEC. 402. ECONOMIC DEVELOPMENT PLANNING.
‘‘(a) DIRECT GRANTS.—
‘‘(1) IN
GENERAL.—The Administrator may
make, upon application of any State, or city, or
1560
other political subdivision of a State, or sub-State
planning and development organization (including an
area described in section 502(a) or an economic de-
velopment district), direct grants to such State, city,
or other political subdivision, or organization to pay
up to 50 percent of the cost for economic develop-
ment planning.
‘‘(2) PLANNING
PROJECTS
SPECIFICALLY
IN-
CLUDED.—The planning for cities, other political
subdivisions, and sub-State planning and develop-
ment organizations (including areas described in sec-
tion 502(a) and economic development districts) as-
sisted under this section shall include systematic ef-
forts to reduce unemployment and increase incomes.
‘‘(3) PLANNING PROCESS.—The planning shall
be a continuous process involving public officials and
private citizens in analyzing local economies, defin-
ing development goals, determining project opportu-
nities, and formulating and implementing a develop-
ment program.
‘‘(4) COORDINATION
OF
ASSISTANCE
UNDER
SECTION 401(c).—The assistance available under
this section may be provided in addition to assist-
ance available under section 401(c) but shall not
supplant such assistance.
1561
‘‘(b) COMPLIANCE WITH REVIEW PROCEDURE.—The
planning assistance authorized under this title shall be
used in conjunction with any other available Federal plan-
ning assistance to assure adequate and effective planning
and economical use of funds.
‘‘TITLE V—ELIGIBILITY AND
INVESTMENT STRATEGIES
‘‘PART A—ELIGIBILITY
‘‘SEC. 501. ELIGIBLE RECIPIENT DEFINED.
‘‘In this Act, the term ‘eligible recipient’ means an
area described in section 502(a), an economic development
district designated under section 510, an Indian tribe, a
State, a city or other political subdivision of a State, or
a consortium of such political subdivisions, or a public or
private nonprofit organization or association acting in co-
operation with officials of such political subdivisions.
‘‘SEC. 502. AREA ELIGIBILITY.
‘‘(a) CERTIFICATION.—In order to be eligible for as-
sistance under title II, an applicant seeking assistance to
undertake a project in an area shall certify, as part of
an application for such assistance, that the area on the
date of submission of such application meets 1 or more
of the following criteria:
‘‘(1) The area has a per capita income of 80
percent or less of the national average.
1562
‘‘(2) The area has an unemployment rate 1 per-
cent above the national average percentage for the
most recent 24-month period for which statistics are
available.
‘‘(3) The area has experienced or is about to
experience a sudden economic dislocation resulting
in job loss that is significant both in terms of the
number of jobs eliminated and the effect upon the
employment rate of the area.
‘‘(4) The area is a community or neighborhood
(defined without regard to political or other subdivi-
sions or boundaries) which the Administrator deter-
mines has one or more of the following conditions:
‘‘(A) A large concentration of low-income
persons.
‘‘(B) Rural areas having substantial out-
migration.
‘‘(C) Substantial unemployment.
‘‘(b) DOCUMENTATION.—A certification made under
subsection (a) shall be supported by Federal data, when
available, and in other cases by data available through the
State government. Such documentation shall be accepted
by the Administrator unless it is determined to be inac-
curate. The most recent statistics available shall be used.
1563
‘‘(c) PRIOR DESIGNATIONS.—Any designation of a
redevelopment area made before the effective date speci-
fied in section 802 shall not be effective after such effec-
tive date.
‘‘SEC. 503. INVESTMENT STRATEGY.
‘‘The Administrator may provide assistance under ti-
tles II and III to an applicant for a project only if the
applicant submits to the Administrator, as part of an ap-
plication for such assistance, and the Administrator ap-
proves an investment strategy which—
‘‘(1) identifies the economic development prob-
lems to be addressed using such assistance;
‘‘(2) identifies past, present, and projected fu-
ture economic development investments in the area
receiving such assistance and public and private par-
ticipants and sources of funding for such invest-
ments;
‘‘(3) sets forth a strategy for addressing the
economic problems identified pursuant to paragraph
(1) and describes how the strategy will solve such
problems;
‘‘(4) provides a description of the project nec-
essary to implement the strategy, estimates of costs,
and timetables; and
1564
‘‘(5) provides a summary of public and private
resources expected to be available for the project.
‘‘SEC. 504. APPROVAL OF PROJECTS.
‘‘Only applications for grants or other assistance
under this Act for specific projects shall be approved which
are certified by the State representing such applicant and
determined by the Administrator—
‘‘(1) to be included in a State investment strat-
egy;
‘‘(2) to have adequate assurance that the
project will be properly administered, operated, and
maintained; and
‘‘(3) to otherwise meet the requirements for as-
sistance under this Act.
‘‘PART B—ECONOMIC DEVELOPMENT DISTRICTS
‘‘SEC. 510. DESIGNATION OF ECONOMIC DEVELOPMENT
DISTRICTS AND ECONOMIC DEVELOPMENT
CENTERS.
‘‘(a) IN GENERAL.—In order that economic develop-
ment projects of broader geographic significance may be
planned and carried out, the Administrator may—
‘‘(1) designate appropriate ‘economic develop-
ment districts’ within the United States with the
concurrence of the States in which such districts will
be wholly or partially located, if—
1566
ministrator shall prescribe, such areas as the Admin-
istrator may deem appropriate, if—
‘‘(A) the proposed center has been identi-
fied and included in an approved district invest-
ment strategy and recommended by the State
or States affected for such special designation;
‘‘(B) the proposed center is geographically
and economically so related to the district that
its economic growth may reasonably be expected
to contribute significantly to the alleviation of
distress in the areas described in section 502(a)
of the district; and
‘‘(C) the proposed center does not have a
population in excess of 250,000 according to
the most recent Federal census.
‘‘(3) provide financial assistance in accordance
with the criteria of this Act, except as may be herein
otherwise provided, for projects in economic develop-
ment centers designated under subsection (a)(2),
if—
‘‘(A) the project will further the objectives
of the investment strategy of the district in
which it is to be located;
‘‘(B) the project will enhance the economic
growth potential of the district or result in ad-
1567
ditional long-term employment opportunities
commensurate with the amount of Federal fi-
nancial assistance requested; and
‘‘(C) the amount of Federal financial as-
sistance requested is reasonably related to the
size, population, and economic needs of the dis-
trict;
‘‘(4) subject to the 50 percent non-Federal
share required for any project by section 201(c), in-
crease the amount of grant assistance authorized by
section 201 for projects within areas described in
section 502(a), by an amount not to exceed 10 per-
cent of the aggregate cost of any such project, in ac-
cordance with such regulations as the Administrator
shall prescribe if—
‘‘(A) the area described in section 502(a)
is situated within a designated economic devel-
opment district and is actively participating in
the economic development activities of the dis-
trict; and
‘‘(B) the project is consistent with an ap-
proved investment strategy.
‘‘(b) AUTHORITIES.—In designating economic devel-
opment districts and approving district investment strate-
1568
gies under subsection (a), the Administrator may, under
regulations prescribed by the Administrator—
‘‘(1) invite the several States to draw up pro-
posed district boundaries and to identify potential
economic development centers;
‘‘(2) cooperate with the several States—
‘‘(A) in sponsoring and assisting district
economic planning and development groups;
and
‘‘(B) in assisting such district groups to
formulate district investment strategies; and
‘‘(3) encourage participation by appropriate
local governmental authorities in such economic de-
velopment districts.
‘‘(c) TERMINATION OR MODIFICATION OF DESIGNA-
TIONS.—The Administrator shall by regulation prescribe
standards for the termination or modification of economic
development districts and economic development centers
designated under the authority of this section.
‘‘(d) DEFINITIONS.—In this Act, the following defini-
tions apply:
‘‘(1) ECONOMIC DEVELOPMENT DISTRICT.—The
term ‘economic development district’ refers to any
area within the United States composed of cooperat-
ing areas described in section 502(a) and, where ap-
1569
propriate, designated economic development centers
and neighboring counties or communities, which has
been designated by the Administrator as an eco-
nomic development district. Such term includes any
economic development district designated under sec-
tion 403 of this Act, as in effect on the day before
the effective date specified in section 802.
‘‘(2) ECONOMIC DEVELOPMENT CENTER.—The
term ‘economic development center’ refers to any
area within the United States which has been identi-
fied as an economic development center in an ap-
proved investment strategy and which has been des-
ignated by the Administrator as eligible for financial
assistance under this Act in accordance with the
provisions of this section.
‘‘(3) LOCAL
GOVERNMENT.—The term ‘local
government’ means any city, county, town, parish,
village, or other general-purpose political subdivision
of a State.
‘‘(e) PARTS OF ECONOMIC DEVELOPMENT DISTRICTS
NOT WITHIN AREAS DESCRIBED IN SECTION 502(a).—
The Administrator is authorized to provide the financial
assistance which is available to an area described in sec-
tion 502(a) under this Act to those parts of an economic
development district which are not within an area de-
1570
scribed in section 502(a), when such assistance will be of
a substantial direct benefit to an area described in section
502(a) within such district. Such financial assistance shall
be provided in the same manner and to the same extent
as is provided in this Act for an area described in section
502(a); except that nothing in this subsection shall be con-
strued to permit such parts to receive the increase in the
amount of grant assistance authorized in subsection
(a)(4).
‘‘TITLE VI—ADMINISTRATION
‘‘SEC. 601. APPOINTMENT OF ASSOCIATE ADMINISTRATOR;
FULL TIME EQUIVALENT EMPLOYEES.
‘‘(a) APPOINTMENT.—The Administrator shall carry
out the duties vested in the Administrator by this Act act-
ing through an Associate Administrator of the Small Busi-
ness Administration, who shall be appointed by the Presi-
dent by and with the advice and consent of the Senate.
‘‘(b) PAY.—The Associate Administrator shall be
compensated by the Federal Government at the rate pre-
scribed for level V of the Executive Schedule under section
5316 of title 5, United States Code.
‘‘(c) FULL TIME EQUIVALENT EMPLOYEES.—The
Administrator shall assign not to exceed 25 full time
equivalent employees of the Small Business Administra-
tion (excluding the Associate Administrator) to assist the
1571
Administrator in the carrying out the duties vested in the
Administrator by this Act.
‘‘SEC. 602. REGIONAL COOPERATIVE AGREEMENTS.
‘‘(a) IN GENERAL.—The Administrator shall make
grants and carry out such other functions under this Act
as the Administrator considers appropriate by entering
into cooperative agreements with 1 or more States on a
regional basis. Each State entering into such an agree-
ment shall be represented by the chief executive officer
of the State.
‘‘(b) TERMS AND CONDITIONS.—A cooperative agree-
ment entered into under subsection (a) shall include such
terms and conditions as the Administrator determines are
necessary to carry out the provisions of this Act. Such
terms and conditions at a minimum shall provide that no
decision concerning regional policies or approval of project
or grant applications may be made without the consent
of the Administrator and a majority of the States partici-
pating in the cooperative agreement.
‘‘(c) PARTICIPATION NOT REQUIRED.—No State
shall be required to enter into a cooperative agreement
under this section or to participate in any program estab-
lished by this Act.
1572
‘‘SEC. 603. ADMINISTRATIVE EXPENSES.
‘‘(a) PAYMENT BY STATES.—Fifty percent of the ad-
ministrative expenses incurred by States in participating
in a cooperative agreement entered into under section 602
shall be paid by such States and the remaining 50 percent
of such expenses shall be paid by the Federal Government.
‘‘(b) DETERMINATION OF STATE SHARE.—The share
of the administrative expenses to be paid by each State
participating in a cooperative agreement shall be deter-
mined by a majority vote of such States. The Adminis-
trator may not participate or vote in such determination.
‘‘(c) DELINQUENT PAYMENTS.—No assistance au-
thorized by this Act shall be furnished to any State or
to any political subdivision or resident of a State, nor shall
the State participate or vote in any decision described in
section 602(b), while such State is delinquent in the pay-
ment of such State’s share of the administrative expenses
described in subsection (a).
‘‘SEC. 604. FEDERAL SHARE.
‘‘Except as otherwise expressly provided by this Act,
the Federal share of the cost of any project funded with
amounts made available under this Act shall not exceed
50 percent of such cost.
‘‘SEC. 605. COOPERATION OF FEDERAL AGENCIES.
‘‘Each Federal department and agency, in accordance
with applicable laws and within the limits of available
1573
funds, shall cooperate with the Administrator in order to
assist the Administrator in carrying out the functions of
the Administrator.
‘‘SEC. 606. CONSULTATION WITH OTHER PERSONS AND
AGENCIES.
‘‘(a) CONSULTATION ON PROBLEMS RELATING TO
EMPLOYMENT.—The Administrator is authorized from
time to time to call together and confer with any persons,
including representatives of labor, management, agri-
culture, and government, who can assist in meeting the
problems of area and regional unemployment or
underemployment.
‘‘(b) CONSULTATION ON ADMINISTRATION OF ACT.—
The Administrator may make provisions for such consulta-
tion with interested departments and agencies as the Ad-
ministrator may deem appropriate in the performance of
the functions vested in the Administrator by this Act.
‘‘SEC. 607. ADMINISTRATION, OPERATION, AND MAINTE-
NANCE.
‘‘No Federal assistance shall be approved under this
Act unless the Administrator is satisfied that the project
for which Federal assistance is granted will be properly
and efficiently administered, operated, and maintained.
1574
‘‘TITLE VII—MISCELLANEOUS
‘‘SEC. 701. POWERS OF ADMINISTRATOR.
‘‘(a) IN GENERAL.—In performing the Administra-
tor’s duties under this Act, the Administrator is author-
ized to—
‘‘(1) adopt, alter, and use a seal, which shall be
judicially noticed;
‘‘(2) subject to the civil-service and classifica-
tion laws, select, employ, appoint, and fix the com-
pensation of such personnel as may be necessary to
carry out the provisions of this Act;
‘‘(3) hold such hearings, sit and act at such
times and places, and take such testimony, as the
Administrator may deem advisable;
‘‘(4) request directly from any executive depart-
ment, bureau, agency, board, commission, office,
independent establishment, or instrumentality infor-
mation, suggestions, estimates, and statistics needed
to carry out the purposes of this Act; and each de-
partment, bureau, agency, board, commission, office,
establishment, or instrumentality is authorized to
furnish such information, suggestions, estimates,
and statistics directly to the Administrator;
‘‘(5) under regulations prescribed by the Ad-
ministrator, assign or sell at public or private sale,
1575
or otherwise dispose of for cash or credit, in the Ad-
ministrator’s discretion and upon such terms and
conditions and for such consideration as the Admin-
istrator determines to be reasonable, any evidence of
debt, contract, claim, personal property, or security
assigned to or held by the Administrator in connec-
tion with assistance extended under this Act, and
collect or compromise all obligations assigned to or
held by the Administrator in connection with such
assistance until such time as such obligations may
be referred to the Attorney General for suit or col-
lection;
‘‘(6) deal with, complete, renovate, improve,
modernize, insure, rent, or sell for cash or credit,
upon such terms and conditions and for such consid-
eration as the Administrator determines to be rea-
sonable, any real or personal property conveyed to,
or otherwise acquired by the Administrator in con-
nection with assistance extended under this Act;
‘‘(7) pursue to final collection, by way of com-
promise or other administrative action, prior to ref-
erence to the Attorney General, all claims against
third parties assigned to the Administrator in con-
nection with assistance extended this Act;
1576
‘‘(8) acquire, in any lawful manner and in ac-
cordance with the requirements of the Federal Prop-
erty and Administrative Services Act of 1949, any
property (real, personal, or mixed, tangible or intan-
gible), whenever necessary or appropriate to the con-
duct of the activities authorized under this Act;
‘‘(9) in addition to any powers, functions, privi-
leges, and immunities otherwise vested in the Ad-
ministrator, take any action, including the procure-
ment of the services of attorneys by contract, deter-
mined by the Administrator to be necessary or desir-
able in making, purchasing, servicing, compromising,
modifying, liquidating, or otherwise administratively
dealing with assets held in connection with financial
assistance extended under this Act;
‘‘(10) employ experts and consultants or organi-
zations as authorized by section 3109 of title 5,
United States Code, compensate individuals so em-
ployed at rates not in excess of $100 per diem, in-
cluding travel time, and allow them, while away from
their homes or regular places of business, travel ex-
penses (including per diem in lieu of subsistence) as
authorized by section 5703 of title 5, United States
Code, for persons in the Government service em-
ployed intermittently, while so employed, except that
1577
contracts for such employment may be renewed an-
nually;
‘‘(11) sue and be sued in any court of record
of a State having general jurisdiction or in any Unit-
ed States district court, and jurisdiction is conferred
upon such district court to determine such con-
troversies without regard to the amount in con-
troversy; but no attachment, injunction, garnish-
ment, or other similar process, mesne or final, shall
be issued against the Administrator or the Adminis-
trator’s property;
‘‘(12) make discretionary grants, pursuant to
authorities otherwise available to the Administrator
under this Act and without regard to the require-
ments of section 504, to implement significant re-
gional initiatives, to take advantage of special devel-
opment opportunities, or to respond to emergency
economic distress in a region from the funds with-
held from distribution by the Administrator; except
that the aggregate amount of such discretionary
grants in any fiscal year may not exceed 10 percent
of the amounts appropriated under title VIII for
such fiscal year;
‘‘(13) allow a State to use not to exceed 5 per-
cent of the total of amounts received by the State
1578
in a fiscal year in grants under this Act for reason-
able expenses incurred by the State in administering
such amounts; and
‘‘(14) establish such rules, regulations, and pro-
cedures as the Administrator considers appropriate
in carrying out the provisions of this Act.
‘‘(b) 
DEFICIENCY
JUDGMENTS.—The 
authority
under subsection (a)(7) to pursue claims shall include the
authority to obtain deficiency judgments or otherwise in
the case of mortgages assigned to the Administrator.
‘‘(c) INAPPLICABILITY
OF CERTAIN OTHER RE-
QUIREMENTS.—Section 3709 of the Revised Statutes of
the United States shall not apply to any contract of haz-
ard insurance or to any purchase or contract for services
or supplies on account of property obtained by the Admin-
istrator as a result of assistance extended under this Act
if the premium for the insurance or the amount of the
insurance does not exceed $1,000.
‘‘(d) POWERS OF CONVEYANCE AND EXECUTION.—
The power to convey and to execute, in the name of the
Administrator, deeds of conveyance, deeds of release, as-
signments and satisfactions of mortgages, and any other
written instrument relating to real or personal property
or any interest therein acquired by the Administrator pur-
suant to the provisions of this Act may be exercised by
1579
the Administrator, or by any officer or agent appointed
by the Administrator for such purpose, without the execu-
tion of any express delegation of power or power of attor-
ney.
‘‘SEC. 702. ESTABLISHMENT OF CLEARINGHOUSE.
‘‘In carrying out the Administrator’s duties under
this Act, the Administrator shall ensure that the Small
Business Administration—
‘‘(1) serves as a central information clearing-
house on matters relating to economic development,
economic adjustment, disaster recovery, and defense
conversion programs and activities of the Federal
and State governments, including political subdivi-
sions of the States; and
‘‘(2) helps potential and actual applicants for
economic development, economic adjustment, disas-
ter recovery, and defense conversion assistance
under Federal, State, and local laws in locating and
applying for such assistance, including financial and
technical assistance.
‘‘SEC. 703. PERFORMANCE MEASURES.
‘‘The Administrator shall establish performance
measures for grants and other assistance provided under
this Act. Such performance measures shall be used to
1580
evaluate project proposals and conduct evaluations of
projects receiving such assistance.
‘‘SEC. 704. MAINTENANCE OF STANDARDS.
‘‘The Administrator shall continue to implement and
enforce the provisions of section 712 of this Act, as in
effect on the day before the effective date specified in sec-
tion 802.
‘‘SEC. 705. TRANSFER OF FUNCTIONS.
‘‘The functions, powers, duties, and authorities and
the assets, funds, contracts, loans, liabilities, commit-
ments, authorizations, allocations, and records which are
vested in or authorized to be transferred to the Secretary
of the Treasury under section 29(b) of the Area Redevel-
opment Act, and all functions, powers, duties, and authori-
ties under section 29(c) of such Act are hereby vested in
the Administrator.
‘‘SEC. 706. DEFINITION OF STATE.
‘‘In this Act, the terms ‘State’, ‘States’, and ‘United
States’ include the several States, the District of Colum-
bia, Puerto Rico, the Virgin Islands, American Samoa,
Guam, the Marshall Islands, Micronesia, and the North-
ern Mariana Islands.
‘‘SEC. 707. ANNUAL REPORT TO CONGRESS.
‘‘The Administrator shall transmit to Congress a
comprehensive and detailed annual report of the Adminis-
1581
trator’s operations under this Act for each fiscal year be-
ginning with the fiscal year ending September 30, 1996.
Such report shall be printed and shall be transmitted to
Congress not later than April 1 of the year following the
fiscal year with respect to which such report is made.
‘‘SEC. 708. USE OF OTHER FACILITIES.
‘‘(a) DELEGATION OF FUNCTIONS TO OTHER FED-
ERAL DEPARTMENTS
AND AGENCIES.—The Adminis-
trator may delegate to the heads of other departments and
agencies of the Federal Government any of the Adminis-
trator’s functions, powers, and duties under this Act as
the Administrator may deem appropriate, and to authorize
the redelegation of such functions, powers, and duties by
the heads of such departments and agencies.
‘‘(b) DEPARTMENT
AND AGENCY EXECUTION
OF
DELEGATED AUTHORITY.—Departments and agencies of
the Federal Government shall exercise their powers, du-
ties, and functions in such manner as will assist in carry-
ing out the objectives of this Act.
‘‘(c) TRANSFER BETWEEN DEPARTMENTS.—Funds
authorized to be appropriated under this Act may be
transferred between departments and agencies of the Gov-
ernment, if such funds are used for the purposes for which
they are specifically authorized and appropriated.
1582
‘‘(d) FUNDS TRANSFERRED FROM OTHER DEPART-
MENTS AND AGENCIES.—In order to carry out the objec-
tives of this Act, the Administrator may accept transfers
of funds from other departments and agencies of the Fed-
eral Government if the funds are used for the purposes
for which (and in accordance with the terms under which)
the funds are specifically authorized and appropriated.
Such transferred funds shall remain available until ex-
pended, and may be transferred to and merged with the
appropriations under the heading ‘salaries and expenses’
by the Administrator to the extent necessary to administer
the program.
‘‘SEC. 709. EMPLOYMENT OF EXPEDITERS AND ADMINIS-
TRATIVE EMPLOYEES.
‘‘No financial assistance shall be extended by the Ad-
ministrator under this Act to any business enterprise un-
less the owners, partners, or officers of such business en-
terprise—
‘‘(1) certify to the Administrator the names of
any attorneys, agents, and other persons engaged by
or on behalf of such business enterprise for the pur-
pose of expediting applications made to the Adminis-
trator for assistance of any sort, under this Act, and
the fees paid or to be paid to any such person; and
1583
‘‘(2) execute an agreement binding such busi-
ness enterprise, for a period of 2 years after such
assistance is rendered by the Administrator to such
business enterprise, to refrain from employing, ten-
dering any office or employment to, or retaining for
professional services, any person who, on the date
such assistance or any part thereof was rendered, or
within the 1-year period ending on such date, shall
have served as an officer, attorney, agent, or em-
ployee, occupying a position or engaging in activities
which the Administrator determines involves discre-
tion with respect to the granting of assistance under
this Act.
‘‘SEC. 710. MAINTENANCE OF RECORDS OF APPROVED AP-
PLICATIONS FOR FINANCIAL ASSISTANCE;
PUBLIC INSPECTION.
‘‘(a) MAINTENANCE OF RECORD REQUIRED.—The
Administrator shall maintain as a permanent part of the
records of the Small Business Administration a list of ap-
plications approved for financial assistance under this Act,
which shall be kept available for public inspection during
the regular business hours of the Small Business Adminis-
tration.
1584
‘‘(b) POSTING TO LIST.—The following information
shall be posted in such list as soon as each application
is approved:
‘‘(1) The name of the applicant and, in the case
of corporate applications, the names of the officers
and directors thereof.
‘‘(2) The amount and duration of the financial
assistance for which application is made.
‘‘(3) The purposes for which the proceeds of the
financial assistance are to be used.
‘‘SEC. 711. RECORDS AND AUDIT.
‘‘(a) RECORDKEEPING AND DISCLOSURE REQUIRE-
MENTS.—Each recipient of assistance under this Act shall
keep such records as the Administrator shall prescribe, in-
cluding records which fully disclose the amount and the
disposition by such recipient of the proceeds of such assist-
ance, the total cost of the project or undertaking in con-
nection with which such assistance is given or used, and
the amount and nature of that portion of the cost of the
project or undertaking supplied by other sources, and such
other records as will facilitate an effective audit.
‘‘(b) ACCESS
TO BOOKS
FOR EXAMINATION
AND
AUDIT.—The Administrator and the Comptroller General
of the United States, or any of their duly authorized rep-
resentatives, shall have access for the purpose of audit and
1585
examination to any books, documents, papers, and records
of the recipient that are pertinent to assistance received
under this Act.
‘‘SEC. 712. PROHIBITION AGAINST A STATUTORY CON-
STRUCTION WHICH MIGHT CAUSE DIMINU-
TION IN OTHER FEDERAL ASSISTANCE.
‘‘All financial and technical assistance authorized
under this Act shall be in addition to any Federal assist-
ance previously authorized, and no provision of this Act
shall be construed as authorizing or permitting any reduc-
tion or diminution in the proportional amount of Federal
assistance to which any State or other entity eligible under
this Act would otherwise be entitled under the provisions
of any other Act.
‘‘SEC. 713. ACCEPTANCE OF APPLICANTS’ CERTIFICATIONS.
‘‘The Administrator may accept, when deemed appro-
priate, the applicants’ certifications to meet the require-
ments of this Act.
‘‘TITLE VIII—FUNDING;
EFFECTIVE DATE
‘‘SEC. 801. AUTHORIZATION OF APPROPRIATIONS
‘‘There is authorized to be appropriated to carry out
this Act $340,000,000 per fiscal year for each of fiscal
years 1996, 1997, 1998, 1999, and 2000. Such sums shall
remain available until expended.
1586
‘‘SEC. 802. EFFECTIVE DATE.
‘‘The effective date specified in this section is the
abolishment date specified in section 17101(c) of the De-
partment of Commerce Dismantling Act.’’.
(b) CONFORMING AMENDMENTS TO TITLE 5.—Sec-
tion 5316 of title 5, United States Code, is amended—
(1) by striking ‘‘Associate Administrators of the
Small Business Administration (4)’’ and inserting
‘‘Associate Administrators of the Small Business
Administration (5)’’; and
(2) by striking ‘‘Administrator for Economic
Development.’’.
(c) GAO STUDY.—On or before December 30, 1996,
the Comptroller General shall submit to Congress a plan
or plans for consolidating economic development programs
throughout the Federal Government. The plan or plans
shall focus on, but not be limited to, consolidating pro-
grams included in the Catalogue of Federal Domestic As-
sistance with similar purposes and target populations. The
plan or plans shall detail how consolidation can lead to
improved grant or program management, improvements in
achieving program goals, and reduced costs.
SEC. 17202. TECHNOLOGY ADMINISTRATION.
(a) TECHNOLOGY ADMINISTRATION.—
1587
(1) GENERAL RULE.—Except as otherwise pro-
vided in this section, the Technology Administration
is terminated.
(2) OFFICE OF TECHNOLOGY POLICY.—The Of-
fice of Technology Policy is terminated.
(b) NATIONAL
INSTITUTE
OF
STANDARDS
AND
TECHNOLOGY.—
(1) REDESIGNATION.—The National Institute
of Standards and Technology is hereby redesignated
as the National Bureau of Standards, and all ref-
erences to the National Institute of Standards and
Technology in Federal law or regulations are deemed
to be references to the National Bureau of Stand-
ards.
(2) GENERAL RULE.—The National Bureau of
Standards (in this subsection referred to as the
‘‘Bureau’’) is transferred to the National Institute
for Science and Technology, established under sec-
tion 17207.
(3) FUNCTIONS OF DIRECTOR.—Except as oth-
erwise provided in this section or section 17208,
upon the transfer under paragraph (2), the Director
of the Bureau shall perform all functions relating to
the Bureau that, immediately before the effective
date specified in section 17209(a), were functions of
1588
the Secretary of Commerce or the Under Secretary
of Commerce for Technology.
(c) NATIONAL
TECHNICAL
INFORMATION
SERV-
ICE.—All functions of the National Technical Information
Service are transferred to the Director of Office of Man-
agement and Budget for privatization in accordance with
section 17109.
(d) AMENDMENTS.—
(1) NATIONAL INSTITUTE OF STANDARDS AND
TECHNOLOGY
ACT.—The National Institute of
Standards and Technology Act (15 U.S.C. 271 et
seq.) is amended—
(A) in section 2(b), by striking paragraph
(1) and redesignating paragraphs (2) through
(11) as paragraphs (1) through (10), respec-
tively;
(B) in section 2(d), by striking ‘‘, including
the programs established under sections 25, 26,
and 28 of this Act’’;
(C) in section 10, by striking ‘‘Advanced’’
in both the section heading and subsection (a),
and inserting in lieu thereof ‘‘Standards and’’;
and
(D) by striking sections 24, 25, 26, and
28.
1589
(2) STEVENSON-WYDLER TECHNOLOGY INNOVA-
TION
ACT
OF
1980.—The Stevenson-Wydler Tech-
nology Innovation Act of 1980 (15 U.S.C. 3701 et
seq.) is amended—
(A) in section 3, by striking paragraph (2)
and redesignating paragraphs (3) through (5)
as paragraphs (2) through (4), respectively;
(B) in section 4, by striking paragraphs
(1), (4), and (13) and redesignating paragraphs
(2), (3), (5), (6), (7), (8), (9), (10), (11), and
(12) as paragraphs (1) through (10), respec-
tively;
(C) by striking sections 5, 6, 7, 8, 9, and
10;
(D) in section 11—
(i) by striking ‘‘, the Federal Labora-
tory Consortium for Technology Transfer,’’
in subsection (c)(3);
(ii) by striking ‘‘and the Federal Lab-
oratory Consortium for Technology Trans-
fer’’ in subsection (d)(2);
(iii) by striking ‘‘, and refer such re-
quests’’ and all that follows through ‘‘avail-
able to the Service’’ in subsection (d)(3);
and
1590
(iv) by striking subsection (e); and
(E) in section 17—
(i) by striking ‘‘Subject to paragraph
(2), separate’’ in subsection (c)(1) and in-
serting in lieu thereof ‘‘Separate’’;
(ii) by striking paragraph (2) of sub-
section (c) and redesignating paragraph
(3) as paragraph (2);
(iii) by striking ‘‘funds to carry out’’
in subsection (f), and inserting in lieu
thereof ‘‘funds only to pay the salary of
the Director of the Office of Quality Pro-
grams, who shall be responsible for carry-
ing out’’; and
(iv) by adding at the end the following
new subsection:
‘‘(h) VOLUNTARY
AND
UNCOMPENSATED
SERV-
ICES.—The Director of the Office of Quality Programs
may accept voluntary and uncompensated services not-
withstanding the provisions of section 1342 of title 31,
United States Code.’’.
(3) MISCELLANEOUS AMENDMENTS.—Section 3
of Public Law 94–168 (15 U.S.C. 205b) is amend-
ed—
(A) by striking paragraph (2);
1591
(B) by redesignating paragraphs (3) and
(4) as paragraphs (2) and (3), respectively; and
(C) in paragraph (3), as so redesignated
by subparagraph (B) of this paragraph, by
striking ‘‘in nonbusiness activities’’.
SEC. 17203. REORGANIZATION OF THE BUREAU OF THE
CENSUS.
(a) PROVISIONS RELATING TO INTERIM PERIOD.—
(1) FUNCTIONS OF THE SECRETARY OF COM-
MERCE.—During the 6-month period beginning on
the abolishment date specified in section 17101(c),
the Director of the Office of Management and Budg-
et shall perform all functions that, immediately be-
fore such effective date, were functions of the Sec-
retary of Commerce under title 13, United States
Code.
(2) REORGANIZATION AUTHORITY UNDER SEC-
TION
17104(f) NOT
TO
APPLY.—Section 17104(f)
shall not apply with respect to the Bureau of the
Census or any function to be performed by the ap-
propriate official pursuant to paragraph (1).
(b) TRANSFER OF FUNCTIONS.—
(1) IN GENERAL.—Notwithstanding any provi-
sion of section 17209, effective as of the first day
1592
following the end of the 6-month period referred to
in subsection (a)(1)—
(A) the Bureau of the Census shall be
transferred to the Department of Labor; and
(B) all functions that, immediately before
such first day, were functions of the Director of
the Office of Management and Budget by rea-
son of subsection (a)(1) shall be transferred to
the Secretary of Labor.
(2) CONTINUATION OF SERVICE OF THE DIREC-
TOR OF THE CENSUS.—The individual serving as the
Director of the Census at the end of the 6-month pe-
riod referred to in subsection (a)(1) may continue
serving in that capacity, after the end of such pe-
riod, until a successor has taken office.
(c) AMENDMENTS.—Effective as of the first day fol-
lowing the end of the 6-month period referred to in sub-
section (a)(1)—
(1) TRANSFER OF THE BUREAU OF THE CEN-
SUS TO THE DEPARTMENT OF LABOR.—(A) Section
2 of title 13, United States Code, is amended by
striking ‘‘is continued as’’ through the period and
inserting ‘‘is an agency within, and under the juris-
diction of, the Department of Labor.’’.
1593
(B) Subsection (e) of section 12 of the Act of
February 14, 1903 (15 U.S.C. 1511(e)) is repealed.
(2) DEFINITION
OF
SECRETARY.—Title 13,
United States Code, is amended in section 1(2) by
striking ‘‘Secretary of Commerce’’ and inserting
‘‘Secretary of Labor’’.
(3) REFERENCES
TO
THE
DEPARTMENT
OF
COMMERCE.—Title 13, United States Code, is
amended in sections 4, 9(a), 23(b), 24(e), 44, 103,
132, 211, 213(b)(2), 221, 222, 223, 224, 225(a),
and 241 by striking ‘‘Department of Commerce’’
each place it appears and inserting ‘‘Department of
Labor’’.
(4) REFERENCES TO THE SECRETARY OF COM-
MERCE.—(A) Section 304(a) of title 13, United
States Code, is amended by striking ‘‘Secretary of
Commerce’’ and inserting ‘‘Secretary of Labor’’.
(B)(i) Section 401(a) of title 13, United States
Code, is amended by striking ‘‘Secretary of Com-
merce’’ and inserting ‘‘Secretary’’.
(ii) Section 8(e) of the Foreign Direct Invest-
ment and International Financial Data Improve-
ments Act of 1990 (22 U.S.C. 3144(e)) is amended
by striking ‘‘Secretary of Commerce’’ and inserting
‘‘Secretary of Labor’’.
1594
(iii) Section 401(a) of title 13, United States
Code, is amended by striking ‘‘Department of Com-
merce’’ and inserting ‘‘Federal Reserve System’’.
(5) COMPENSATION FOR THE POSITION OF DI-
RECTOR OF THE CENSUS.—Section 5315 of title 5,
United States Code, as amended by section
17108(e)(7), is further amended by striking ‘‘Cen-
sus.’’ 
and 
inserting 
‘‘Census, 
Department 
of
Labor.’’.
(6) CONFIDENTIALITY.—Section 9 of title 13,
United States Code, is amended by adding at the
end the following:
‘‘(c)(1) Nothing in subsection (a)(3) shall be consid-
ered to permit the disclosure of any matter or information
to an officer or employee of the Department of Labor who
is not referred to in subchapter II if, immediately before
the start of the 6-month period referred to in section
17203(a)(1) of the Department of Commerce Dismantling
Act, such disclosure (if then made by an officer or em-
ployee of the Department of Commerce) would have been
impermissible under this section (as then in effect).
‘‘(2) Paragraph (1) shall not apply with respect to
any disclosure made to the Secretary.’’.
(d) SENSE OF THE CONGRESS.—It is the sense of
the Congress that the Bureau of the Census should—
1595
(1) make appropriate use of any authority af-
forded to it by the Census Address List Improve-
ment Act of 1994 (Public Law 103–430; 108 Stat.
4393), and take measures to ensure the timely im-
plementation of such Act; and
(2) streamline census questionnaires to promote
savings in the collection and tabulation of data.
(e) RULE OF CONSTRUCTION.—For purposes of sub-
title E, the reorganization of the Bureau of the Census
pursuant to subsections (b) and (c) shall be treated as
if it involved a transfer of functions.
SEC. 17204. BUREAU OF ECONOMIC ANALYSIS.
(a) IN GENERAL.—(1) The functions of the Bureau
of Economic Analysis are transferred to the Secretary of
Labor.
(2) All functions which, immediately before such date,
are functions of the Secretary of Commerce with respect
to the Bureau of Economic Analysis are transferred to the
Secretary of Labor.
(b) CONSOLIDATION WITH THE BUREAU OF LABOR
STATISTICS.—The Secretary of Labor shall consolidate
the functions transferred under subsection (a) with the
Bureau of Labor Statistics within the Department of
Labor.
1603
(E) The Great Lakes Fish and Wildlife
Tissue Bank Act (16 U.S.C. 943 et seq.).
(F) The Nonindigenous Aquatic Nuisance
Prevention and Control Act of 1990 (16 U.S.C.
4701 et seq.), except for those provisions affect-
ing the Assistant Secretary of the Army (civil
works) and the Secretary of the department in
which the Coast Guard is operating.
(G) Section 3 of the Sea Grant Program
Improvement Act of 1976 (33 U.S.C. 1124a).
(H) Section 208(c) of the National Sea
Grant 
College 
Program 
Act 
(33 
U.S.C.
1127(c)).
(I) Section 305 of the Coastal Zone Man-
agement Act of 1972 (16 U.S.C. 1454) is re-
pealed effective October 1, 1998.
(J) The NOAA Fleet Modernization Act
(33 U.S.C. 891 et seq.).
(K) Public Law 85–342 (72 Stat. 35; 16
U.S.C. 778 et seq.), relating to fish research
and experimentation.
(L) The first section of the Act of August
8, 1956 (70 Stat. 1126; 16 U.S.C. 760d), relat-
ing to grants for commercial fishing education.