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greater, the acreage may be reduced so that the fair mar-
ket value is approximately equal: Provided, That the Sec-
retary shall order appraisals made of the fair market value
for improvements thereon: Provided further, That any
such cash payment received by the Secretary shall be de-
posited to ‘‘Miscellaneous Trust Funds, National Park
Service’’ and shall be available without further appropria-
tion until expended for the acquisition of land within the
National Park System.
(e) Costs of conducting necessary land surveys, pre-
paring the legal descriptions of the lands to be conveyed,
performing the appraisals, and administrative costs in-
curred in completing the exchange shall be borne by the
Corporation.
(f) Following any exchange authorized by this provi-
sion, the boundaries of Oxon Cove Park shall be expanded
to include the land acquired by the United States.
SEC. 324. SECTION 1. LAND EXCHANGE.—
(a) EXCHANGE.—Subject to subsection (c), the
Secretary of Agriculture (referred to in this section
as the ‘‘Secretary’’) shall convey all right, title, and
interest of the United States in and to the National
Forest System lands described in subsection (b)(1)
to Public Utility District No. 1 of Chelan County,
Washington (referred to in this section as the ‘‘Pub-
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lic Utility District’’), in exchange for the conveyance
to the Department of Agriculture by the Public Util-
ity District of all right, title, and interest of the
Public Utility District in and to the lands described
in subsection (b)(2).
(b) DESCRIPTION OF LANDS.—
(1) NATIONAL FOREST SYSTEM LANDS.—
The National Forest System lands referred to
in subsection (a) are 122 acres, more or less,
that are partially occupied by a wastewater
treatment facility referred to in subsection
(c)(4)(A) with the following legal description:
(A) The NE1⁄4 of SW1⁄4 of section 27
of township 27 north, range 17 east, Wil-
lamette Meridian, Chelan County, Wash-
ington.
(B) The N1⁄2 of SE1⁄4 of SW1⁄4 of
such section 27.
(C) The W1⁄2 of NW1⁄4 of SE1⁄4 of
such section 27.
(D) The NW1⁄4 of SW1⁄4 of SE1⁄4 of
such section 27.
(E) The E1⁄2 of NW1⁄4 of the SE1⁄4 of
such section 27.
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(F) That portion of the S1⁄2 of SE1⁄4
of SW1⁄4 lying north of the northerly edge
of Highway 209 right-of-way of such sec-
tion 27.
(2) PUBLIC
UTILITY
DISTRICT
LANDS.—
The lands owned by the Public Utility District
are 109.15 acres, more or less, with the follow-
ing legal description:
(A) S1⁄2 of SW1⁄4 of section 35 of
township 26 north, range 17 east, Willam-
ette Meridian, Chelan County, Washington.
(B) The area specified by Public Util-
ity District No. 1 as Government Lot 5 in
such section 35.
(c) REQUIREMENTS FOR EXCHANGE.—
(1) TITLE
ACCEPTANCE
AND
CONVEY-
ANCE.—Upon offer by the Public Utility Dis-
trict of all right, title and interest in and to the
lands described in subsection (b)(2), if the title
is found acceptable by the Secretary, the Sec-
retary shall accept title to such lands and inter-
ests therein and shall convey to the Public Util-
ity District all right, title, and interest of the
United States in and to the lands described in
subsection (b)(1).
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(2) APPRAISALS REQUIRED.—Before mak-
ing an exchange pursuant to subsection (a), the
Secretary shall conduct appraisals of the lands
that are subject to the exchange to determine
the fair market value of the lands. Such ap-
praisals shall not include the value of the
wastewater treatment facility referred to in
paragraph (4)(A).
(3) ADDITIONAL CONSIDERATION.—If, on
the basis of the appraisals made under para-
graph (1), the Secretary determines that the
fair market value of the lands to be conveyed by
one party under subsection (a) is less than the
fair market value of the lands to be conveyed by
the other party under subsection (a), then, as
a condition of making the exchange under sub-
section (a), the party conveying the lands with
the lesser value shall pay the other party the
amount by which the fair market value of the
lands of greater value exceeds the fair market
value of the lands of lesser value.
(4) CONVEYANCE OF WASTEWATER TREAT-
MENT FACILITY.—(A) As part of an exchange
made under subsection (a), the Secretary shall
convey to the Public Utility District of Chelan
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County, Washington, all right, title and interest
of the United States in and to the wastewater
treatment facility (including the wastewater
treatment plant and associated lagoons) located
on the lands described in subsection (b)(1) that
is in existence on the date of the exchange.
(B) As a condition for the exchange under
subsection (a), the Public Utility District shall
provide for a credit equal to the fair market
value of the wastewater treatment facility con-
veyed pursuant to subparagraph (A) (deter-
mined as of November 4, 1991), that shall be
applied to the United States’ share of any new
wastewater treatment facility constructed by
the Public Utility District after such date.
(d) ADDITIONAL
TERMS
AND
CONDITIONS.—
The Secretary may require such additional terms
and conditions in connection with the exchange
under this section as the Secretary determines ap-
propriate to protect the interests of the United
States.
SEC. 325. ‘‘Snoqualmie National Forest Boundary
Adjustment Act of 1996.’’
(a) IN GENERAL.—The Secretary of Agriculture
is hereby directed to modify the boundary of the
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Snoqualmie National Forest to include and encom-
pass 10,589.47 acres, more or less, as generally de-
picted on a map entitled ‘‘Snoqualmie National For-
est Proposed 1996 Boundary Modification’’ dated
July, 1996. Such map, together with a legal descrip-
tion of all lands included in the boundary adjust-
ment, shall be on file and available for public inspec-
tion in the Office of the Chief of the Forest Service
in Washington, District of Columbia.
(b) RULE FOR LAND AND WATER CONSERVA-
TION FUND.—For the purposes of section 7 of the
Land and Water Conservation Fund Act of 1965
(16 U.S.C. 460l–9), the boundary of the Snoqualmie
National Forest, as modified pursuant to subsection
(a), shall be considered to be the boundary of that
National Forest as of January 1, 1965.
SEC. 326. Sugarbush Land Exchange Act of 1996.
(a) EXCHANGE OR SALE OF LAND.—
(1) If Sugarbush Resort Holdings, Inc.
conveys to the United States land acceptable to
the Secretary of Agriculture that is at least
equal in value to the value of the land described
in subsection (a)(2), makes a payment of cash
at least equal to that value, or conveys land and
makes a payment of cash that in combination
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are at least equal to that value, the Secretary,
subject to valid existing rights, shall, under
such terms and conditions as the Secretary may
prescribe, convey all right, title, and interest of
the United States in and to the land described
in subsection (a)(2).
(2) FEDERAL LAND TO BE EXCHANGED.—
The Federal land to be exchanged is approxi-
mately 57 acres of federally owned land in the
Green Mountain National Forest depicted on
the map entitled ‘‘Green Mountain National
Forest, Sugarbush Exchange,’’ dated December
1995.
(3) Lands acquired from Sugarbush Resort
Holdings, Inc.—Any land conveyed to the Unit-
ed States in an exchange under subsection
(a)(1) shall be subject to such valid existing
rights of record as may be acceptable to the
Secretary, and the title to the parcel shall con-
form with the title approval standards applica-
ble to federal land acquisitions.
(b) ADMINISTRATION OF LAND.—
(1) ADDITION TO GREEN MOUNTAIN NA-
TIONAL FOREST.—On approval and acceptance
of title by the Secretary, the land acquired by
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the United States through an exchange or with
proceeds from a sale under subsection (a) shall
become part of the Green Mountain National
Forest, and the boundaries of the National For-
est shall be adjusted to include the land.
(2) 
ADMINISTRATION.—Land 
acquired
under this Act shall be administered by the Sec-
retary in accordance with the laws (including
regulations) pertaining to the National Forest
System.
(3) AUTHORITY
OF
THE
SECRETARY.—
This section does not limit the authority of the
Secretary to adjust the boundaries of the Green
Mountain National Forest pursuant to section
11 of the Act of March 1, 1911 (36 Stat. 963,
chapter 186; 16 U.S.C. 521) (commonly known
as the ‘‘Weeks Law’’).
(4) For the purposes of section 7 of the
Land and Water Conservation Fund Act of
1965 (16 U.S.C. 460l–9), the boundaries of the
Green Mountain National Forest, as adjusted
under this Act, shall be considered to be the
boundaries of the Green Mountain National
Forest as of January 1, 1965.
SEC. 327. Snowbird Wilderness Study Area.
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(a) IN GENERAL.—Section 6(a)(4) of the North
Carolina Wilderness Act of 1984 (Public Law 98–324) is
amended—
(1) by striking ‘‘eight thousand four hundred
and ninety acres’’ and inserting ‘‘8,390 acres’’; and
(b) by striking ‘‘July 1983’’ and inserting ‘‘July
1996’’.
(B) MANAGEMENT.—The Secretary of Agriculture
shall manage the area removed from wilderness study
status by the amendments made by subsection (a) in ac-
cordance with the provision of law applicable to adjacent
areas outside the wilderness study area.
SEC. 328. Renaming of Wilderness Area.
(a) The Columbia Wilderness, created by the Or-
egon Wilderness Act of 1984, Public Law 98–328, lo-
cated in the Mt. Hood National Forest, Oregon, shall be
known and designated as the ‘‘Mark O. Hatfield Wilder-
ness’’.
(b) Any references in a law, map, regulation, doc-
ument, paper, or other record of the United States to the
Columbia Wilderness shall be deemed to be a reference
to the ‘‘Mark O. Hatfield Wilderness’’.
SEC. 329. Notwithstanding any other provision of
law, for fiscal year 1997 the Secretaries of Agriculture
and Interior are authorized to limit competition for wa-
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tershed restoration project contracts as part of the ‘‘Jobs
in the Woods’’ component of the President’s Forest Plan
for the Pacific Northwest to individuals and entities in
historically timber-dependent areas in the States of
Washington, Oregon, and northern California that have
been affected by reduced timber harvesting on Federal
lands.
SEC. 330. Section 9 of the Rhode Island Indian
Claims Settlement Act (25 U.S.C. 1708) is amended—
(1) by striking ‘‘Sec. 9. Except as’’; and insert-
ing the following:
‘‘(a) IN GENERAL.—Except as’’;
(2) by striking the section heading and insert-
ing the following:
‘‘SEC. 9. APPLICABILITY OF STATE LAW; TREATMENT OF
SETTLEMENT LANDS UNDER THE INDIAN
GAMING REGULATORY ACT.’’;
and
(3) by adding at the end the following new sub-
section:
‘‘(b) 
TREATMENT
OF
SETTLEMENT
LANDS
UNDER THE INDIAN GAMING REGULATORY ACT.—For
purposes of the Indian Gaming Regulatory Act (25
U.S.C. 2701 et seq.), settlement lands shall not be treat-
ed as Indian lands.’’.
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TITLE IV—EMERGENCY APPROPRIATIONS
DEPARTMENT OF THE INTERIOR
BUREAU OF LAND MANAGEMENT
MANAGEMENT OF LANDS AND RESOURCES
For an additional amount for management of
lands and resources, $3,500,000, to remain available
until expended, to restore public lands damaged by fire:
Provided, That Congress hereby designates this amount
as an emergency requirement pursuant to section
251(b)(2)(D)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended: Provided fur-
ther, That this amount shall be available only to the ex-
tent that an official budget request for a specific dollar
amount, that includes designation of the entire amount
as an emergency requirement as defined in the Balanced
Budget and Emergency Deficit Control Act of 1985, as
amended, is transmitted by the President to the Con-
gress.
WILDLAND FIRE MANAGEMENT
For an additional amount for wildland fire man-
agement, $100,000,000, to remain available until ex-
pended, for emergency rehabilitation and wildfire sup-
pression activities of the Department of the Interior: Pro-
vided, That Congress hereby designates this amount as
an 
emergency 
requirement 
pursuant 
to 
section
251(b)(2)(D)(i) of the Balanced Budget and Emergency
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Deficit Control Act of 1985, as amended: Provided fur-
ther, That this amount shall be available only to the ex-
tent that an official budget request for a specific dollar
amount, that includes designation of the entire amount
as an emergency requirement as defined in the Balanced
Budget and Emergency Deficit Control Act of 1985, as
amended, is transmitted by the President to the Con-
gress.
OREGON AND CALIFORNIA GRANT LANDS
For an additional amount for Oregon and Califor-
nia grant lands, $2,500,000, to remain available until ex-
pended, to restore public lands damaged by fire: Pro-
vided, That Congress hereby designates this amount as
an 
emergency 
requirement 
pursuant 
to 
section
251(b)(2)(D)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended: Provided fur-
ther, That this amount shall be available only to the ex-
tent that an official budget request for a specific dollar
amount, that includes designation of the entire amount
as an emergency requirement as defined in the Balanced
Budget and Emergency Deficit Control Act of 1985, as
amended, is transmitted by the President to the Con-
gress.
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UNITED STATES FISH AND WILDLIFE SERVICE
RESOURCE MANAGEMENT
For an additional amount for resource manage-
ment, $2,100,000, to remain available until expended, of
which $600,000 is to restore public lands damaged by
fire and $1,500,000 is to address anti-terrorism require-
ments: Provided, That Congress hereby designates this
amount as an emergency requirement pursuant to section
251(b)(2)(D)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended: Provided fur-
ther, That this amount shall be available only to the ex-
tent that an official budget request for a specific dollar
amount, that includes designation of the entire amount
as an emergency requirement as defined in the Balanced
Budget and Emergency Deficit Control Act of 1985, as
amended, is transmitted by the President to the Con-
gress.
CONSTRUCTION
For an additional amount for construction,
$15,891,000, to remain available until expended, to re-
pair damage caused by hurricanes, floods and other acts
of nature: Provided, That Congress hereby designates
this amount as an emergency requirement pursuant to
section 251(b)(2)(D)(i) of the Balanced Budget and
Emergency Deficit Control Act of 1985, as amended:
Provided further, That this amount shall be available only
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to the extent that an official budget request for a specific
dollar amount, that includes designation of the entire
amount as an emergency requirement as defined in the
Balanced Budget and Emergency Deficit Control Act of
1985, as amended, is transmitted by the President to the
Congress.
NATIONAL PARK SERVICE
OPERATION OF THE NATIONAL PARK SYSTEM
For an additional amount for operation of the Na-
tional park system, $2,300,000, to remain available until
expended, to address anti-terrorism requirements: Pro-
vided, That Congress hereby designates this amount as
an 
emergency 
requirement 
pursuant 
to 
section
251(b)(2)(D)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended: Provided fur-
ther, That this amount shall be available only to the ex-
tent that an official budget request for a specific dollar
amount, that includes designation of the entire amount
as an emergency requirement as defined in the Balanced
Budget and Emergency Deficit Control Act of 1985, as
amended, is transmitted by the President to the Con-
gress.
CONSTRUCTION
For an additional amount for construction,
$9,300,000, to remain available until expended, of which
$3,000,000 is to repair damage caused by hurricanes and
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$6,300,000 is to address anti-terrorism requirements:
Provided, That Congress hereby designates this amount
as an emergency requirement pursuant to section
251(b)(2)(D)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended: Provided fur-
ther, That this amount shall be available only to the ex-
tent that an official budget request for a specific dollar
amount, that includes designation of the entire amount
as an emergency requirement as defined in the Balanced
Budget and Emergency Deficit Control Act of 1985, as
amended, is transmitted by the President to the Con-
gress.
UNITED STATES GEOLOGICAL SURVEY
SURVEYS, INVESTIGATIONS, AND RESEARCH
For an additional amount for surveys, investiga-
tions, and research, $1,138,000, to remain available until
expended, to address damage caused by hurricanes and
floods: Provided, That Congress hereby designates this
amount as an emergency requirement pursuant to section
251(b)(2)(D)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended: Provided fur-
ther, That this amount shall be available only to the ex-
tent that an official budget request for a specific dollar
amount, that includes designation of the entire amount
as an emergency requirement as defined in the Balanced
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Budget and Emergency Deficit Control Act of 1985, as
amended, is transmitted by the President to the Con-
gress.
BUREAU OF INDIAN AFFAIRS
OPERATION OF INDIAN PROGRAMS
For an additional amount for operation of Indian
programs, $6,600,000, to remain available until ex-
pended, to repair damage caused by floods and to restore
Indian lands damaged by fire: Provided, That Congress
hereby designates this amount as an emergency require-
ment pursuant to section 251(b)(2)(D)(i) of the Balanced
Budget and Emergency Deficit Control Act of 1985, as
amended: Provided further, That this amount shall be
available only to the extent that an official budget re-
quest for a specific dollar amount, that includes designa-
tion of the entire amount as an emergency requirement
as defined in the Balanced Budget and Emergency Defi-
cit Control Act of 1985, as amended, is transmitted by
the President to the Congress.
CONSTRUCTION
For an additional amount for construction,
$6,000,000, to remain available until expended, to repair
damage caused by floods: Provided, That Congress here-
by designates this amount as an emergency requirement
pursuant to section 251(b)(2)(D)(i) of the Balanced
Budget and Emergency Deficit Control Act of 1985, as
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amended: Provided further, That this amount shall be
available only to the extent that an official budget re-
quest for a specific dollar amount, that includes designa-
tion of the entire amount as an emergency requirement
as defined in the Balanced Budget and Emergency Defi-
cit Control Act of 1985, as amended, is transmitted by
the President to the Congress.
DEPARTMENT OF AGRICULTURE
FOREST SERVICE
NATIONAL FOREST SYSTEM
For an additional amount for the National Forest
System, $3,395,000 to remain available until expended,
to repair damage caused by hurricanes: Provided, That
Congress hereby designates this amount as an emergency
requirement pursuant to section 251(d)(2)(D)(i) of the
Balanced Budget and Emergency Deficit Control Act of
1985, as amended; Provided further, That this amount
shall be available only to the extent that an official budg-
et request for a specific dollar amount, that includes des-
ignation of the entire amount as an emergency require-
ment as defined in the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended, is transmitted
by the President to the Congress.
WILDLAND FIRE MANAGEMENT
For an additional amount for wildland fire man-
agement, $550,000,000, to remain available until ex-
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pended, for presuppression due to emergencies, for emer-
gency fire suppression on or adjacent to National Forest
System lands or other lands under fire protection agree-
ment and for emergency rehabilitation of burned over
National Forest System lands: Provided, That such funds
are available for repayment of advances from other ap-
propriations accounts previously transferred for such pur-
poses: Provided further, That Congress hereby designates
this amount as an emergency requirement pursuant to
section 251(b)(2)(D)(i) of the Balanced Budget and
Emergency Deficit Control Act of 1985, as amended:
Provided further, That this amount shall be available only
to the extent that an official budget request for a specific
dollar amount, that includes designation of the entire
amount as an emergency requirement as defined in the
Balanced Budget and Emergency Deficit Control Act of
1985, as amended, is transmitted by the President to the
Congress.
RECONSTRUCTION AND CONSTRUCTION
For an additional amount for reconstruction and
construction, $5,210,000, to remain available until ex-
pended, to repair damage caused by hurricanes: Provided,
That Congress hereby designates this amount as an
emergency 
requirement 
pursuant 
to 
section
251(b)(2)(D)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended: Provided fur-
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HR 4278 RDS
ther, That this amount shall be available only to the ex-
tent that an official budget request for a specific dollar
amount, that includes designation of the entire amount
as an emergency requirement as defined in the Balanced
Budget and Emergency Deficit Control Act of 1985, as
amended, is transmitted by the President to the Con-
gress.
OTHER RELATED AGENCIES
SMITHSONIAN INSTITUTION
SALARIES AND EXPENSES
For an additional amount for salaries and ex-
penses, $935,000, to remain available until expended, to
address anti-terrorism requirements: Provided, That Con-
gress hereby designates this amount as an emergency re-
quirement pursuant to section 251(b)(2)(D)(i) of the
Balanced Budget and Emergency Deficit Control Act of
1985, as amended: Provided further, That this amount
shall be available only to the extent that an official budg-
et request for a specific dollar amount, that includes des-
ignation of the entire amount as an emergency require-
ment as defined in the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended, is transmitted
by the President to the Congress.
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JOHN F. KENNEDY CENTER FOR THE PERFORMING
ARTS
OPERATIONS AND MAINTENANCE
For an additional amount for operations and
maintenance, $1,600,000, to remain available until ex-
pended, to address anti-terrorism requirements: Provided,
That Congress hereby designates this amount as an
emergency 
requirement 
pursuant 
to 
section
251(b)(2)(D)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended: Provided fur-
ther, That this amount shall be available only to the ex-
tent that an official budget request for a specific dollar
amount, that includes designation of the entire amount
as an emergency requirement as defined in the Balanced
Budget and Emergency Deficit Control Act of 1985, as
amended, is transmitted by the President to the Con-
gress.
CONSTRUCTION
For an additional amount for construction,
$3,400,000, to remain available until expended, to ad-
dress anti-terrorism requirements: Provided, That Con-
gress hereby designates this amount as an emergency re-
quirement pursuant to section 251(b)(2)(D)(i) of the
Balanced Budget and Emergency Deficit Control Act of
1985, as amended: Provided further, That this amount
shall be available only to the extent that an official budg-
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HR 4278 RDS
et request for a specific dollar amount, that includes des-
ignation of the entire amount as an emergency require-
ment as defined in the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended, is transmitted
by the President to the Congress.
NATIONAL GALLERY OF ART
SALARIES AND EXPENSES
For an additional amount for salaries and ex-
penses, $382,000, to remain available until expended, to
address anti-terrorism requirements: Provided, That Con-
gress hereby designates this amount as an emergency re-
quirement pursuant to section 251(b)(2)(D)(i) of the
Balanced Budget and Emergency Deficit Control Act of
1985, as amended: Provided further, That this amount
shall be available only to the extent that an official budg-
et request for a specific dollar amount, that includes des-
ignation of the entire amount as an emergency require-
ment as defined in the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended, is transmitted
by the President to the Congress.
UNITED STATES HOLOCAUST MEMORIAL COUNCIL
HOLOCAUST MEMORIAL COUNCIL
For an additional amount for the Holocaust Me-
morial Council, $1,000,000, to remain available until ex-
pended, to address anti-terrorism requirements: Provided,
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That Congress hereby designates this amount as an
emergency 
requirement 
pursuant 
to 
section
251(b)(2)(D)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended: Provided fur-
ther, That this amount shall be available only to the ex-
tent that an official budget request for a specific dollar
amount, that includes designation of the entire amount
as an emergency requirement as defined in the Balanced
Budget and Emergency Deficit Control Act of 1985, as
amended, is transmitted by the President to the Con-
gress.
This Act may be cited as the ‘‘Department of the
Interior and Related Agencies Appropriations Act,
1997’’.
(e) For programs, projects or activities in the De-
partments of Labor, Health and Human Services, and
Education, and Related Agencies Appropriations Act,
1997, provided as follows, to be effective as if it had been
enacted into law as the regular appropriations Act:
AN ACT
Making appropriations for the Departments of
Labor, Health and Human Services, and Education, and
related agencies for the fiscal year ending September 30,
1997, and for other purposes.
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TITLE I—DEPARTMENT OF LABOR
EMPLOYMENT AND TRAINING ADMINISTRATION
TRAINING AND EMPLOYMENT SERVICES
For expenses necessary to carry into effect the
Job Training Partnership Act, as amended, including the
purchase and hire of passenger motor vehicles, the con-
struction, alteration, and repair of buildings and other fa-
cilities, and the purchase of real property for training
centers as authorized by the Job Training Partnership
Act; the Women in Apprenticeship and Nontraditional
Occupations Act; the National Skill Standards Act of
1994; and the School-to-Work Opportunities Act;
$4,719,703,000 
plus 
reimbursements, 
of 
which
$3,559,408,000 is available for obligation for the period
July 1, 1997 through June 30, 1998; of which
$88,685,000 is available for the period July 1, 1997
through June 30, 2000 for necessary expenses of con-
struction, rehabilitation, and acquisition of Job Corps
centers; and of which $200,000,000 shall be available
from July 1, 1997 through September 30, 1998, for car-
rying out activities of the School-to-Work Opportunities
Act: Provided, That $52,502,000 shall be for carrying
out section 401 of the Job Training Partnership Act,
$69,285,000 shall be for carrying out section 402 of such
Act, $7,300,000 shall be for carrying out section 441 of
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such Act, $8,000,000 shall be for all activities conducted
by and through the National Occupational Information
Coordinating Committee under such Act, $895,000,000
shall be for carrying out title II, part A of such Act, and
$126,672,000 shall be for carrying out title II, part C of
such Act: Provided further, That no funds from any other
appropriation shall be used to provide meal services at or
for Job Corps centers: Provided further, That funds pro-
vided to carry out title III of the Job Training Partner-
ship Act shall not be subject to the limitation contained
in subsection (b) of section 315 of such Act; that the
waiver allowing a reduction in the cost limitation relating
to retraining services described in subsection (a)(2) of
such section 315 may be granted with respect to funds
from this Act if a substate grantee demonstrates to the
Governor that such waiver is appropriate due to the
availability of low-cost retraining services, is necessary to
facilitate the provision of needs-related payments to ac-
company long-term training, or is necessary to facilitate
the provision of appropriate basic readjustment services;
and that funds provided to carry out the Secretary’s dis-
cretionary grants under part B of such title III may be
used to provide needs-related payments to participants
who, in lieu of meeting the requirements relating to en-
rollment in training under section 314(e) of such Act, are
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enrolled in training by the end of the sixth week after
grant funds have been awarded: Provided further, That
service delivery areas may transfer funding provided
herein under authority of titles II–B and II–C of the Job
Training Partnership Act between the programs author-
ized by those titles of that Act, if such transfer is ap-
proved by the Governor: Provided further, That service
delivery areas and substate areas may transfer up to 20
percent of the funding provided herein under authority of
title II–A and title III of the Job Training Partnership
Act between the programs authorized by those titles of
the Act, if such transfer is approved by the Governor:
Provided further, That, notwithstanding any other provi-
sion of law, any proceeds from the sale of Job Corps cen-
ter facilities shall be retained by the Secretary of Labor
to carry out the Job Corps program: Provided further,
That notwithstanding any other provision of law, the Sec-
retary of Labor may waive any of the statutory or regu-
latory requirements of titles I–III of the Job Training
Partnership Act (except for requirements relating to
wage and labor standards, worker rights, participation
and protection, grievance procedures and judicial review,
nondiscrimination, allocation of funds to local areas, eligi-
bility, review and approval of plans, the establishment
and functions of service delivery areas and private indus-
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with the Secretary requiring such State to meet agreed
upon outcomes and implement other appropriate meas-
ures to ensure accountability: Provided further, That the
Secretary of Labor shall establish a workforce flexibility
(work-flex) partnership demonstration program under
which the Secretary shall authorize not more than six
States, of which at least three States shall each have pop-
ulations not in excess of 3,500,000, with a preference
given to those States that have been designated Ed-Flex
Partnership States under section 311(e) of Public Law
103–227, to waive any statutory or regulatory require-
ment applicable to service delivery areas or substate
areas within the State under titles I–III of the Job
Training Partnership Act (except for requirements relat-
ing to wage and labor standards, grievance procedures
and judicial review, nondiscrimination, allotment of
funds, and eligibility), and any of the statutory or regu-
latory requirements of sections 8–10 of the Wagner-
Peyser Act (except for requirements relating to the provi-
sion of services to unemployment insurance claimants
and veterans, and to universal access to basic labor ex-
change services without cost to job seekers), for a dura-
tion not to exceed the waiver period authorized under sec-
tion 311(e) of Public Law 103–227, pursuant to a plan
submitted by such States and approved by the Secretary
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for the provision of workforce employment and training
activities in the States, which includes a description of
the process by which service delivery areas and substate
areas may apply for and have waivers approved by the
State, the requirements of the Wagner-Peyser Act to be
waived, the outcomes to be achieved and other measures
to be taken to ensure appropriate accountability for fed-
eral funds.
COMMUNITY SERVICE EMPLOYMENT FOR OLDER
AMERICANS
(TRANSFER OF FUNDS)
To carry out the activities for national grants or
contracts with public agencies and public or private non-
profit organizations under paragraph (1)(A) of section
506(a) of title V of the Older Americans Act of 1965, as
amended, or to carry out older worker activities as subse-
quently authorized, $361,140,000, including $21,840,000
which shall be available for the period ending June 30,
1997.
To carry out the activities for grants to States
under paragraph (3) of section 506(a) of title V of the
Older Americans Act of 1965, as amended, or to carry
out older worker activities as subsequently authorized,
$101,860,000, including $6,160,000 which shall be avail-
able for the period ending June 30, 1997.
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The funds appropriated under this heading shall
be transferred to the Department of Health and Human
Services, ‘‘Aging Services Programs’’ following the enact-
ment of legislation authorizing the administration of the
program by that Department.
FEDERAL UNEMPLOYMENT BENEFITS AND ALLOWANCES
For payments during the current fiscal year of
trade adjustment benefit payments and allowances under
part I, and for training, for allowances for job search and
relocation, and for related State administrative expenses
under part II, subchapters B and D, chapter 2, title II
of the Trade Act of 1974, as amended, $324,500,000, to-
gether with such amounts as may be necessary to be
charged to the subsequent appropriation for payments for
any period subsequent to September 15 of the current
year.
STATE UNEMPLOYMENT INSURANCE AND EMPLOYMENT
SERVICE OPERATIONS
For 
authorized 
administrative 
expenses,
$173,452,000, 
together 
with 
not 
to 
exceed
$3,146,826,000 (including not to exceed $1,653,000
which may be used for amortization payments to States
which had independent retirement plans in their State
employment service agencies prior to 1980, and including
not to exceed $2,000,000 which may be obligated in con-
tracts with non-State entities for activities such as occu-
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pational and test research activities which benefit the
Federal-State Employment Service System), which may
be expended from the Employment Security Administra-
tion account in the Unemployment Trust Fund including
the cost of administering section 1201 of the Small Busi-
ness Job Protection Act of 1996, section 7(d) of the
Wagner-Peyser Act, as amended, the Trade Act of 1974,
as amended, the Immigration Act of 1990, and the Immi-
gration and Nationality Act, as amended, and of which
the sums available in the allocation for activities author-
ized by title III of the Social Security Act, as amended
(42 U.S.C. 502–504), and the sums available in the allo-
cation for necessary administrative expenses for carrying
out 5 U.S.C. 8501–8523, shall be available for obligation
by the States through December 31, 1997, except that
funds used for automation acquisitions shall be available
for obligation by States through September 30, 1999;
and of which $23,452,000, together with not to exceed
$738,283,000 of the amount which may be expended
from said trust fund, shall be available for obligation for
the period July 1, 1997 through June 30, 1998, to fund
activities under the Act of June 6, 1933, as amended, in-
cluding the cost of penalty mail authorized under 39
U.S.C. 3202(a)(1)(E) made available to States in lieu of
allotments for such purpose, and of which $216,333,000
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shall be available only to the extent necessary for addi-
tional State allocations to administer unemployment com-
pensation laws to finance increases in the number of un-
employment insurance claims filed and claims paid or
changes in a State law: Provided, That to the extent that
the Average Weekly Insured Unemployment (AWIU) for
fiscal year 1997 is projected by the Department of Labor
to exceed 2,828,000 an additional $28,600,000 shall be
available for obligation for every 100,000 increase in the
AWIU level (including a pro rata amount for any incre-
ment less than 100,000) from the Employment Security
Administration Account of the Unemployment Trust
Fund: Provided further, That funds appropriated in this
Act which are used to establish a national one-stop career
center network may be obligated in contracts, grants or
agreements with non-State entities: Provided further,
That funds appropriated under this Act for activities au-
thorized under the Wagner-Peyser Act, as amended, and
title III of the Social Security Act, may be used by the
States to fund integrated Employment Service and Un-
employment Insurance automation efforts, notwithstand-
ing cost allocation principles prescribed under Office of
Management and Budget Circular A–87.
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ADVANCES TO THE UNEMPLOYMENT TRUST FUND AND
OTHER FUNDS
For repayable advances to the Unemployment
Trust Fund as authorized by sections 905(d) and 1203
of the Social Security Act, as amended, and to the Black
Lung Disability Trust Fund as authorized by section
9501(c)(1) of the Internal Revenue Code of 1954, as
amended; and for nonrepayable advances to the Unem-
ployment Trust Fund as authorized by section 8509 of
title 5, United States Code, section 104(d) of Public Law
102–164, and section 5 of Public Law 103–6, and to the
‘‘Federal unemployment benefits and allowances’’ ac-
count, to remain available until September 30, 1998,
$373,000,000.
In addition, for making repayable advances to the
Black Lung Disability Trust Fund in the current fiscal
year after September 15, 1997, for costs incurred by the
Black Lung Disability Trust Fund in the current fiscal
year, such sums as may be necessary.
PROGRAM ADMINISTRATION
For expenses of administering employment and
training programs and for carrying out section 908 of the
Social Security Act, $81,393,000, together with not to
exceed $39,977,000, which may be expended from the
Employment Security Administration account in the Un-
employment Trust Fund.
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PENSION AND WELFARE BENEFITS ADMINISTRATION
SALARIES AND EXPENSES
For necessary expenses for Pension and Welfare
Benefits 
Administration, 
$77,083,000, 
of 
which
$6,000,000 shall remain available through September 30,
1998 for expenses of revising the processing of employee
benefit plan returns.
PENSION BENEFIT GUARANTY CORPORATION
PENSION BENEFIT GUARANTY CORPORATION FUND
The Pension Benefit Guaranty Corporation is au-
thorized to make such expenditures, including financial
assistance authorized by section 104 of Public Law 96–
364, within limits of funds and borrowing authority avail-
able to such Corporation, and in accord with law, and to
make such contracts and commitments without regard to
fiscal year limitations as provided by section 104 of the
Government Corporation Control Act, as amended (31
U.S.C. 9104), as may be necessary in carrying out the
program through September 30, 1997, for such Corpora-
tion: Provided, That not to exceed $10,345,000 shall be
available for administrative expenses of the Corporation:
Provided further, That expenses of such Corporation in
connection with the termination of pension plans, for the
acquisition, protection or management, and investment of
trust assets, and for benefits administration services shall
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be considered as non-administrative expenses for the pur-
poses hereof, and excluded from the above limitation.
EMPLOYMENT STANDARDS ADMINISTRATION
SALARIES AND EXPENSES
For necessary expenses for the Employment Stand-
ards Administration, including reimbursement to State,
Federal, and local agencies and their employees for in-
spection services rendered, $290,422,000, together with
$983,000 which may be expended from the Special Fund
in accordance with section 39(c) and 44 (j) of the
Longshore and Harbor Workers’ Compensation Act: Pro-
vided, That the Secretary of Labor is authorized to ac-
cept, retain, and spend, until expended, in the name of
the Department of Labor, all sums of money ordered to
be paid to the Secretary of Labor, in accordance with the
terms of the Consent Judgment in Civil Action No. 91–
0027 of the United States District Court for the District
of the Northern Mariana Islands (May 21, 1992): Pro-
vided further, That the Secretary of Labor is authorized
to establish and, in accordance with 31 U.S.C. 3302, col-
lect and deposit in the Treasury fees for processing appli-
cations and issuing certificates under sections 11(d) and
14 of the Fair Labor Standards Act of 1938, as amended
(29 U.S.C. 2119d) and 214) and for processing applica-
tions and issuing registrations under Title I of the Mi-
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grant and Seasonal Agricultural Worker Protection Act,
29 U.S.C. 1801 et seq.
SPECIAL BENEFITS
(INCLUDING TRANSFER OF FUNDS)
For the payment of compensation, benefits, and ex-
penses (except administrative expenses) accruing during
the current or any prior fiscal year authorized by title 5,
chapter 81 of the United States Code; continuation of
benefits as provided for under the head ‘‘Civilian War
Benefits’’ in the Federal Security Agency Appropriation
Act, 1947; the Employees’ Compensation Commission
Appropriation Act, 1944; and sections 4(c) and 5(f) of
the War Claims Act of 1948 (50 U.S.C. App. 2012); and
50 per centum of the addition compensation and benefits
required by section 10(h) of the Longshore and Harbor
Workers’ Compensation Act, as amended, $213,000,000
together with such amounts as may be necessary to be
charged to the subsequent year appropriation for the pay-
ment of compensation and other benefits for any period
subsequent to August 15 of the current year: Provided,
That such sums as are necessary may be used under sec-
tion 8104 of title 5, United States Code, by the Secretary
to reimburse an employer, who is not the employer at the
time of injury, for portions of the salary of a reemployed,
disabled beneficiary: Provided further, That balances of
reimbursements unobligated on September 30, 1996,
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shall remain available until expended for the payment of
compensation, benefits, and expenses: Provided further,
That in addition there shall be transferred to this appro-
priation from the Postal Service and from any other cor-
poration or instrumentality required under section
8147(c) of title 5, United States Code, to pay an amount
for its fair share of the cost of administration, such sums
as the Secretary of Labor determines to be the cost of
administration for employees of such fair share entities
through September 30, 1997: Provided further, That of
those funds transferred to this account from the fair
share entities to pay the cost of administration,
$11,390,000 shall be made available to the Secretary of
Labor for expenditures relating to capital improvements
in support of Federal Employees’ Compensation Act ad-
ministration, and the balance of such funds shall be paid
into the Treasury as miscellaneous receipts: Provided fur-
ther, That the Secretary may require that any person fil-
ing a notice of injury or a claim for benefits under sub-
chapter 5, U.S.C., chapter 81, or under subchapter 33,
U.S.C. 901, et seq. (the Longshore and Harbor Workers’
Compensation Act, as amended), provide as part of such
notice and claim, such identifying information (including
Social Security account number) as such regulations may
prescribe.
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BLACK LUNG DISABILITY TRUST FUND
(INCLUDING TRANSFER OF FUNDS)
For payments from the Black Lung Disability
Trust Fund, $1,007,644,000, of which $961,665,000
shall be available until September 30, 1998, for payment
of all benefits as authorized by section 9501(d) (1), (2),
(4), and (7) of the Internal Revenue Code of 1954, as
amended, and interest on advances as authorized by sec-
tion 9501(c)(2) of that Act, and of which $26,071,000
shall be available for transfer to Employment Standards
Administration, Salaries and Expenses, $19,621,000 for
transfer to Departmental Management, Salaries and Ex-
penses, and $287,000 for transfer to Departmental Man-
agement, Office of Inspector General, for expenses of op-
eration and administration of the Black Lung Benefits
program as authorized by section 9501(d)(5)(A) of that
Act: Provided, That, in addition, such amounts as may
be necessary may be charged to the subsequent year ap-
propriation for the payment of compensation, interest, or
other benefits for any period subsequent to August 15 of
the current year: Provided further, That in addition such
amounts shall be paid from this fund into miscellaneous
receipts as the Secretary of the Treasury determines to
be the administrative expenses of the Department of the
Treasury for administering the fund during the current
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fiscal year, as authorized by section 9501(d)(5)(B) of
that Act.
OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION
SALARIES AND EXPENSES
For necessary expenses for the Occupational Safe-
ty and Health Administration, $325,734,000, including
not to exceed $77,354,000 which shall be the maximum
amount available for grants to States under section 23(g)
of the Occupational Safety and Health Act, which grants
shall be no less than fifty percent of the costs of State
occupational safety and health programs required to be
incurred under plans approved by the Secretary under
section 18 of the Occupational Safety and Health Act of
1970; and, in addition, notwithstanding 31 U.S.C. 3302,
the Occupational Safety and Health Administration may
retain up to $750,000 per fiscal year of training institute
course tuition fees, otherwise authorized by law to be col-
lected, and may utilize such sums for occupational safety
and health training and education grants: Provided,
That, notwithstanding 31 U.S.C. 3302, the Secretary of
Labor is authorized, during the fiscal year ending Sep-
tember 30, 1997, to collect and retain fees for services
provided to Nationally Recognized Testing Laboratories,
and may utilize such sums, in accordance with the provi-
sions of 29 U.S.C. 9a, to administer national and inter-
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national laboratory recognition programs that ensure the
safety of equipment and products used by workers in the
workplace: Provided further, That none of the funds ap-
propriated under this paragraph shall be obligated or ex-
pended to prescribe, issue, administer, or enforce any
standard, rule, regulation, or order under the Occupa-
tional Safety and Health Act of 1970 which is applicable
to any person who is engaged in a farming operation
which does not maintain a temporary labor camp and
employs ten or fewer employees: Provided further, That
no funds appropriated under this paragraph shall be obli-
gated or expended to administer or enforce any standard,
rule, regulation, or order under the Occupational Safety
and Health Act of 1970 with respect to any employer of
ten or fewer employees who is included within a category
having an occupational injury lost workday case rate, at
the most precise Standard Industrial Classification Code
for which such data are published, less than the national
average rate as such rates are most recently published by
the Secretary, acting through the Bureau of Labor Sta-
tistics, in accordance with section 24 of that Act (29
U.S.C. 673), except—
(1) to provide, as authorized by such Act, con-
sultation, technical assistance, educational and train-
ing services, and to conduct surveys and studies;
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(2) to conduct an inspection or investigation in
response to an employee complaint, to issue a cita-
tion for violations found during such inspection, and
to assess a penalty for violations which are not cor-
rected within a reasonable abatement period and for
any willful violations found;
(3) to take any action authorized by such Act
with respect to imminent dangers;
(4) to take any action authorized by such Act
with respect to health hazards;
(5) to take any action authorized by such Act
with respect to a report of an employment accident
which is fatal to one or more employees or which re-
sults in hospitalization of two or more employees,
and to take any action pursuant to such investiga-
tion authorized by such Act; and
(6) to take any action authorized by such Act
with respect to complaints of discrimination against
employees for exercising rights under such Act: Pro-
vided further, That the foregoing proviso shall not
apply to any person who is engaged in a farming op-
eration which does not maintain a temporary labor
camp and employs ten or fewer employees.
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MINE SAFETY AND HEALTH ADMINISTRATION
SALARIES AND EXPENSES
For necessary expenses for the Mine Safety and
Health Administration, $197,810,000, including purchase
and bestowal of certificates and trophies in connection
with mine rescue and first-aid work, and the hire of pas-
senger motor vehicles; the Secretary is authorized to ac-
cept lands, buildings, equipment, and other contributions
from public and private sources and to prosecute projects
in cooperation with other agencies, Federal, State, or pri-
vate; the Mine Safety and Health Administration is au-
thorized to promote health and safety education and
training in the mining community through cooperative
programs with States, industry, and safety associations;
and any funds available to the Department may be used,
with the approval of the Secretary, to provide for the
costs of mine rescue and survival operations in the event
of a major disaster: Provided, That none of the funds ap-
propriated under this paragraph shall be obligated or ex-
pended to carry out section 115 of the Federal Mine
Safety and Health Act of 1977 or to carry out that por-
tion of section 104(g)(1) of such Act relating to the en-
forcement of any training requirements, with respect to
shall dredging, or with respect to any sand, gravel, sur-
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face stone, surface clay, colloidal phosphate, or surface
limestone mine.
BUREAU OF LABOR STATISTICS
SALARIES AND EXPENSES
For necessary expenses for the Bureau of Labor
Statistics, including advances or reimbursements to
State, Federal, and local agencies and their employees for
services rendered, $309,647,000, of which $16,145,000
shall be for expenses of revising the Consumer Price
Index and shall remain available until September 30,
1998, together with not to exceed $52,053,000, which
may be expended from the Employment Security Admin-
istration account in the Unemployment Trust Fund.
DEPARTMENTAL MANAGEMENT
SALARIES AND EXPENSES
For necessary expenses for Departmental Man-
agement, including the hire of three sedans, and includ-
ing up to $4,358,000 for the President’s Committee on
Employment of People With Disabilities, $144,211,000;
together with not to exceed $297,000, which may be ex-
pended from the Employment Security Administration
account in the Unemployment Trust Fund: Provided,
That no funds made available by this Act may be used
by the Solicitor of Labor to participate in a review in any
United States court of appeals of any decision made by
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the Benefits Review Board under section 21 of the
Longshore and Harbor Workers’ Compensation Act (33
U.S.C. 921) where such participation is precluded by the
decision of the United States Supreme Court in Director,
Office of Workers’ Compensation Programs v. Newport
News Shipbuilding, 115 S. Ct. 1278 (1995): Provided
further, That no funds made available by this Act may
be used by the Secretary of Labor to review a decision
under the Longshore and Harbor Workers’ Compensation
Act (33 U.S.C. 901 et seq.) that has been appealed and
that has been pending before the Benefits Review Board
for more than 12 months: Provided further, That any
such decision pending a review by the Benefits Review
Board for more than one year shall be considered af-
firmed by the Benefits Review Board on that date, and
shall be considered the final order of the Board for pur-
poses of obtaining a review in the United States courts
of appeals: Provided further, That these provisions shall
not be applicable to the review of any decision issued
under the Black Lung Benefits Act (30 U.S.C. 901 et
seq.).
ASSISTANT SECRETARY FOR VETERANS EMPLOYMENT
AND TRAINING
Not to exceed $181,949,000 may be derived from
the Employment Security Administration account in the
Unemployment Trust Fund to carry out the provisions of
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38 U.S.C. 4100–4110A and 4321–4327, and Public Law
103–353, and which shall be available for obligation by
the States through December 31, 1997.
OFFICE OF INSPECTOR GENERAL
For salaries and expenses of the Office of Inspec-
tor General in carrying out the provisions of the Inspec-
tor General Act of 1978, as amended, $42,938,000, to-
gether with not to exceed $3,543,000, which may be ex-
pended from the Employment Security Administration
account in the Unemployment Trust Fund.
GENERAL PROVISIONS
SEC. 101. None of the funds appropriated in this
title for the Job Corps shall be used to pay the com-
pensation of an individual, either as direct costs or any
proration as an indirect cost, at a rate in excess of
$125,000.
(TRANSFER OF FUNDS)
SEC. 102. Not to exceed 1 percent of any discre-
tionary funds (pursuant to the Balanced Budget and
Emergency Deficit Control Act, as amended) which are
appropriated for the current fiscal year for the Depart-
ment of Labor in this Act may be transferred between
appropriations, but no such appropriation shall be in-
creased by more than 3 percent by any such transfer:
Provided, That the Appropriations Committees of both
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Houses of Congress are notified at least fifteen days in
advance of any transfer.
SEC. 103. Funds shall be available for carrying
out title IV–B of the Job Training Partnership Act, not-
withstanding section 427(c) of that Act, if a Job Corps
center fails to meet national performance standards es-
tablished by the Secretary.
SEC. 104. Effective January 1, 1997, no funds
appropriated or otherwise made available to the Depart-
ment of Labor in this title shall be disbursed without the
approval of the Department’s Chief Financial Officer or
his delegatee.
SEC. 105. Notwithstanding any other provision of
law, the Secretary of Labor may waive any of the re-
quirements contained in sections 4, 104, 105, 107, 108,
121, 164, 204, 253, 254, 264, 301, 311, 313, 314, and
315 of the Job Training Partnership Act in order to as-
sist States in improving State workforce development sys-
tems, pursuant to a request submitted by a State that
has prior to the date of enactment of this Act executed
a Memorandum of Understanding with the United States
requiring such State to meet agreed upon outcomes.
This title may be cited as the ‘‘Department of
Labor Appropriations Act, 1997’’.
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TITLE II—DEPARTMENT OF HEALTH AND
HUMAN SERVICES
HEALTH RESOURCES AND SERVICES ADMINISTRATION
HEALTH RESOURCES AND SERVICES
For carrying out titles II, III, VII, VIII, X, XII,
XVI, XIX, and XXVI of the Public Health Service Act,
section 427(a) of the Federal Coal Mine Health and
Safety Act, title V of the Social Security Act, the Health
Care Quality Improvement Act of 1986, as amended, and
the Native Hawaiian Health Care Act of 1988, as
amended, $3,405,019,000, of which $297,000 shall re-
main available until expended for interest subsidies on
loan guarantees made prior to fiscal year 1981 under
part B of title VII of the Public Health Service Act: Pro-
vided, That the Division of Federal Occupational Health
may utilize personal services contracting to employ pro-
fessional management/administrative and occupational
health professionals: Provided further, That of the funds
made available under this heading, $828,000 shall be
available until expended for facilities renovations at the
Gillis W. Long Hansen’s Disease Center: Provided fur-
ther, That in addition to fees authorized by section
427(b) of the Health Care Quality Improvement Act of
1986, fees shall be collected for the full disclosure of in-
formation under the Act sufficient to recover the full
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costs of operating the National Practitioner Data Bank,
and shall remain available until expended to carry out
that Act: Provided further, That no more than
$5,000,000 is available for carrying out the provisions of
Public Law 104–73: Provided further, That of the funds
made available under this heading, $198,452,000 shall be
for the program under title X of the Public Health Serv-
ice Act to provide for voluntary family planning projects:
Provided further, That amounts provided to said projects
under such title shall not be expended for abortions, that
all pregnancy counseling shall be nondirective, and that
such amounts shall not be expended for any activity (in-
cluding the publication or distribution of literature) that
in any way tends to promote public support or opposition
to any legislative proposal or candidate for public office:
Provided further, That $167,000,000 shall be for State
AIDS Drug Assistance Programs authorized by section
2616 of the Public Health Service Act and shall be dis-
tributed to States as authorized by section 2618(b)(2) of
such Act: Provided further, That notwithstanding any
other provision of law, funds made available under this
heading may be used to continue operating the Council
on Graduate Medical Education established by section
301 of Public law 102–408: Provided further, That, of
the funds made available under this heading, not more
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than $8,000,000 shall be made available and shall remain
available until expended for loan guarantees for loans
made by non-Federal lenders for the construction, ren-
ovation, and modernization of medical facilities that are
owned and operated by health centers funded under part
A of title XVI of the Public Health Service Act as
amended, and, subject to authorization, for loans made to
health centers for the costs of developing and operating
managed care networks or plans, and that such funds be
available to subsidize guarantees of total loan principal in
an amount not to exceed $80,000,000: Provided further,
That notwithstanding section 502(a)(1) of the Social Se-
curity Act, not to exceed $103,609,000 is available for
carrying out special projects of regional and national sig-
nificance pursuant to section 501(a)(2) of such Act.
MEDICAL FACILITIES GUARANTEE AND LOAN FUND
FEDERAL INTEREST SUBSIDIES FOR MEDICAL FACILITIES
For carrying out subsections (d) and (e) of section
1602 of the Public Health Service Act, $7,000,000, to-
gether with any amounts received by the Secretary in
connection with loans and loan guarantees under title VI
of the Public Health Service Act, to be available without
fiscal year limitation for the payment of interest sub-
sidies. During the fiscal year, no commitments for direct
loans or loan guarantees shall be made.
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HEALTH EDUCATION ASSISTANCE LOANS PROGRAM
For the cost of guaranteed loans, such sums as
may be necessary to carry out the purpose of the pro-
gram, as authorized by title VII of the Public Health
Service Act, as amended: Provided, That such costs, in-
cluding the cost of modifying such loans, shall be as de-
fined in section 502 of the Congressional Budget Act of
1974: Provided further, That these funds are available to
subsidize gross obligations for the total loan principal any
part of which is to be guaranteed at not to exceed
$140,000,000. In addition, for administrative expenses to
carry out the guaranteed loan program, $2,688,000.
VACCINE INJURY COMPENSATION PROGRAM TRUST FUND
For payments from the Vaccine Injury Compensa-
tion Program Trust Fund, such sums as may be nec-
essary for claims associated with vaccine-related injury or
death with respect to vaccines administered after Septem-
ber 30, 1988, pursuant to subtitle 2 of title XXI of the
Public Health Service Act, to remain available until ex-
pended: Provided, That for necessary administrative ex-
penses, not to exceed $3,000,000 shall be available from
the Trust Fund to the Secretary of Health and Human
Services.
VACCINE INJURY COMPENSATION
For payment of claims resolved by the United
States Court of Federal Claims related to the administra-
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tion of vaccines before October 1, 1988, $110,000,000 to
remain available until expended.
CENTERS FOR DISEASE CONTROL AND PREVENTION
DISEASE CONTROL, RESEARCH, AND TRAINING
To carry out titles II, III, VII, XI, XV, XVII, and
XIX of the Public Health Service Act, sections 101, 102,
103, 201, 202, 203, 301, and 501 of the Federal Mine
Safety and Health Act of 1977, and sections 20, 21 and
22 of the Occupational Safety and Health Act of 1970,
title IV of the Immigration and Nationality Act and sec-
tion 501 of the Refugee Education Assistance Act of
1980; including insurance of official motor vehicles in
foreign countries; and hire, maintenance, and operation
of aircraft, $2,262,698,000, of which $30,553,000 shall
remain available until expended for equipment and con-
struction and renovation of facilities, and of which
$32,000,000 shall remain available until September 30,
1998 for mine safety and health activities, and in addi-
tion, such sums as may be derived from authorized user
fees, which shall be credited to this account: Provided,
That in addition to amounts provided herein, up to
$48,400,000 shall be available from amounts available
under section 241 of the Public Health Service Act, to
carry out the National Center for Health Statistics sur-
veys: Provided further, That none of the funds made
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available for injury prevention and control at the Centers
for Disease Control and Prevention may be used to advo-
cate or promote gun control: Provided further, That the
Director may redirect the total amount made available
under authority of Public Law 101–502, section 3, dated
November 3, 1990, to activities the Director may so des-
ignate: Provided further, That the Congress is to be noti-
fied promptly of any such transfer: Provided further,
That the functions described in clause (1) of the first
proviso under the subheading ‘‘mines and minerals’’
under the heading ‘‘Bureau of Mines’’ in the text of title
I of the Department of the Interior and Related Agencies
Appropriations Act, 1996, as enacted by section 101 (c)
of the Omnibus Consolidated Rescissions and Appropria-
tions Act of 1996 (Public Law 104–134), are hereby
transferred to, and vested in, the Secretary of Health and
Human Services, subject to section 1531 of title 31,
United States Code: Provided further, That of the
amount provided, $23,000,000 is designated by Congress
as an emergency requirement pursuant to section
251(b)(2)(D)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended.
In addition, $41,000,000, to be derived from the
Violent Crime Reduction Trust Fund, for carrying out
sections 40151 and 40261 of Public Law 103–322.
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NATIONAL INSTITUTES OF HEALTH
NATIONAL CANCER INSTITUTE
For carrying out section 301 and title IV of the
Public Health Service Act with respect to cancer,
$2,382,532,000.
NATIONAL HEART, LUNG, AND BLOOD INSTITUTE
For carrying out section 301 and title IV of the
Public Health Service Act with respect to cardiovascular,
lung, and blood diseases, and blood and blood products,
$1,433,001,000.
NATIONAL INSTITUTE OF DENTAL RESEARCH
For carrying out section 301 and title IV of the
Public Health Service Act with respect to dental disease,
$195,997,000.
NATIONAL INSTITUTE OF DIABETES AND DIGESTIVE AND
KIDNEY DISEASES
For carrying out section 301 and title IV of the
Public Health Service Act with respect to diabetes and
digestive and kidney disease, $815,982,000.
NATIONAL INSTITUTE OF NEUROLOGICAL DISORDERS
AND STROKE
For carrying out section 301 and title IV of the
Public Health Service Act with respect to neurological
disorders and stroke, $726,746,000.
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NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS
DISEASES
For carrying out section 301 and title IV of the
Public Health Service Act with respect to allergy and in-
fectious diseases, $1,257,234,000.
NATIONAL INSTITUTE OF GENERAL MEDICAL SCIENCES
For carrying out section 301 and title IV of the
Public Health Service Act with respect to general medical
sciences, $998,470,000.
NATIONAL INSTITUTE OF CHILD HEALTH AND HUMAN
DEVELOPMENT
For carrying out section 301 and title IV of the
Public Health Service Act with respect to child health
and human development, $631,703,000.
NATIONAL EYE INSTITUTE
For carrying out section 301 and title IV of the
Public Health Service Act with respect to eye diseases
and visual disorders, $332,735,000.
NATIONAL INSTITUTE OF ENVIRONMENTAL HEALTH
SCIENCES
For carrying out sections 301 and 311 and title
IV of the Public Health Service Act with respect to envi-
ronmental health sciences, $308,819,000.
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NATIONAL INSTITUTE ON AGING
For carrying out section 301 and title IV of the
Public Health Service Act with respect to aging,
$486,047,000.
NATIONAL INSTITUTE OF ARTHRITIS AND
MUSCULOSKELETAL AND SKIN DISEASES
For carrying out section 301 and title IV of the
Public Health Service Act with respect to arthritis and
musculoskeletal and skin diseases, $257,111,000.
NATIONAL INSTITUTE ON DEAFNESS AND OTHER
COMMUNICATION DISORDERS
For carrying out section 301 and title IV of the
Public Health Service Act with respect to deafness and
other communication disorders, $188,422,000.
NATIONAL INSTITUTE OF NURSING RESEARCH
For carrying out section 301 and title IV of the
Public Health Service Act with respect to nursing re-
search, $59,743,000.
NATIONAL INSTITUTE ON ALCOHOL ABUSE AND
ALCOHOLISM
For carrying out section 301 and title IV of the
Public Health Service Act with respect to alcohol abuse
and alcoholism, $212,004,000.
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NATIONAL INSTITUTE ON DRUG ABUSE
For carrying out section 301 and title IV of the
Public Health Service Act with respect to drug abuse,
$489,375,000.
NATIONAL INSTITUTE OF MENTAL HEALTH
For carrying out section 301 and title IV of the
Public Health Service Act with respect to mental health,
$701,585,000.
NATIONAL CENTER FOR RESEARCH RESOURCES
For carrying out section 301 and title IV of the
Public Health Service Act with respect to research re-
sources 
and 
general 
research 
support 
grants,
$415,145,000: Provided, That none of these funds shall
be used to pay recipients of the general research support
grants program any amount for indirect expenses in con-
nection with such grants: Provided further, That
$20,000,000 shall be for extramural facilities construc-
tion grants.
NATIONAL CENTER FOR HUMAN GENOME RESEARCH
For carrying out section 301 and title IV of the
Public Health Service Act with respect to human genome
research, $189,657,000.
JOHN E. FOGARTY INTERNATIONAL CENTER
For carrying out the activities at the John E.
Fogarty International Center, $26,586,000.
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NATIONAL LIBRARY OF MEDICINE
For carrying out section 301 and title IV of the
Public Health Service Act with respect to health informa-
tion communications, $151,103,000, of which $4,000,000
shall be available until expended for improvement of in-
formation systems: Provided, That in fiscal year 1997,
the Library may enter into personal services contracts for
the provision of services in facilities owned, operated, or
constructed under the jurisdiction of the National Insti-
tutes of Health.
OFFICE OF THE DIRECTOR
(INCLUDING TRANSFER OF FUNDS)
For carrying out the responsibilities of the Office
of 
the 
Director, 
National 
Institutes 
of 
Health,
$287,206,000, of which $35,589,000 shall be for the Of-
fice of AIDS Research: Provided, That funding shall be
available for the purchase of not to exceed five passenger
motor vehicles for replacement only: Provided further,
That the Director may direct up to 1 percent of the total
amount made available in this Act to all National Insti-
tutes of Health appropriations to activities the Director
may so designate: Provided further, That no such appro-
priation shall be increased or decreased by more than 1
percent by any such transfers and that the Congress is
promptly notified of the transfer: Provided further, That
NIH is authorized to collect third party payments for the
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cost of clinical services that are incurred in National In-
stitutes of Health research facilities and that such pay-
ments shall be credited to the National Institutes of
Health Management Fund: Provided further, That all
funds credited to the NIH Management Fund shall re-
main available for one fiscal year after the fiscal year in
which they are deposited: Provided further, That up to
$200,000 shall be available to carry out section 499 of
the Public Health Service Act.
BUILDINGS AND FACILITIES
For the study of, construction of, and acquisition
of equipment for, facilities of or used by the National In-
stitutes of Health, including the acquisition of real prop-
erty, $200,000,000, to remain available until expended,
of which $90,000,000 shall be for the clinical research
center: Provided, That, notwithstanding any other provi-
sion of law, a single contract or related contracts for the
development and construction of the clinical research cen-
ter may be employed which collectively include the full
scope of the project: Provided further, That the solicita-
tion and contract shall contain the clause ‘‘availability of
funds’’ found at 48 CFR 52.232–18.
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SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES
ADMINISTRATION
SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES
For carrying out titles V and XIX of the Public
Health Service Act with respect to substance abuse and
mental health services, the Protection and Advocacy for
Mentally Ill Individuals Act of 1986, section 30401 of
Public Law 103–322 and section 301 of the Public
Health Service Act with respect to program management,
$2,134,743,000, of which $5,000,000 shall be for grants
to rural and Native American projects and $12,800,000
shall be for activities authorized by section 30401 of Pub-
lic Law 103–322.
RETIREMENT PAY AND MEDICAL BENEFITS FOR
COMMISSIONED OFFICERS
For retirement pay and medical benefits of Public
Health Service Commissioned Officers as authorized by
law, and for payments under the Retired Serviceman’s
Family Protection Plan and Survivor Benefit Plan and
for medical care of dependents and retired personnel
under the Dependents’ Medical Care Act (10 U.S.C. ch.
55), and for payments pursuant to section 229(b) of the
Social Security Act (42 U.S.C. 429(b)), such amounts as
may be required during the current fiscal year.
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AGENCY FOR HEALTH CARE POLICY AND RESEARCH
HEALTH CARE POLICY AND RESEARCH
For carrying out titles III and IX of the Public
Health Service Act, and part A of title XI of the Social
Security Act, $96,175,000; in addition, amounts received
from Freedom of Information Act fees, reimbursable and
interagency agreements, and the sale of data tapes shall
be credited to this appropriation and shall remain avail-
able until expended: Provided, That the amount made
available pursuant to section 926(b) of the Public Health
Service Act shall not exceed $47,412,000.
HEALTH CARE FINANCING ADMINISTRATION
GRANTS TO STATES FOR MEDICAID
For carrying out, except as otherwise provided, ti-
tles 
XI 
and 
XIX 
of 
the 
Social 
Security 
Act,
$75,056,618,000, to remain available until expended.
For making, after May 31, 1997, payments to
States under title XIX of the Social Security Act for the
last quarter of fiscal year 1997 for unanticipated costs,
incurred for the current fiscal year, such sums as may be
necessary.
For making payments to States under title XIX
of the Social Security Act for the first quarter of fiscal
year 1998, $27,988,993,000, to remain available until ex-
pended.
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Payment under title XIX may be made for any
quarter with respect to a State plan or plan amendment
in effect during such quarter, if submitted in or prior to
such quarter and approved in that or any subsequent
quarter.
PAYMENTS TO HEALTH CARE TRUST FUNDS
For payment to the Federal Hospital Insurance
and the Federal Supplementary Medical Insurance Trust
Funds, as provided under sections 217(g) and 1844 of
the Social Security Act, sections 103(c) and 111(d) of
the Social Security Amendments of 1965, section 278(d)
of Public Law 97–248, and for administrative expenses
incurred pursuant to section 201(g) of the Social Secu-
rity Act, $60,079,000,000.
PROGRAM MANAGEMENT
For carrying out, except as otherwise provided, ti-
tles XI, XVIII, and XIX of the Social Security Act, title
XIII of the Public Health Service Act, and the Clinical
Laboratory Improvement Amendments of 1988, not to
exceed $1,735,125,000 to be transferred from the Fed-
eral Hospital Insurance and the Federal Supplementary
Medical Insurance Trust Funds, as authorized by section
201(g) of the Social Security Act; together with all funds
collected in accordance with section 353 of the Public
Health Service Act, the latter funds to remain available
until expended, together with such sums as may be col-
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lected from authorized user fees and the sale of data,
which shall remain available until expended: Provided,
That all funds derived in accordance with 31 U.S.C.
9701 from organizations established under title XIII of
the Public Health Service Act are to be credited to and
available for carrying out the purposes of this appropria-
tion.
HEALTH MAINTENANCE ORGANIZATION LOAN AND LOAN
GUARANTEE FUND
For carrying out subsections (d) and (e) of section
1308 of the Public Health Service Act, any amounts re-
ceived by the Secretary in connection with loans and loan
guarantees under title XIII of the Public Health Service
Act, to be available without fiscal year limitation for the
payment of outstanding obligations. During fiscal year
1997, no commitments for direct loans or loan guaran-
tees shall be made.
ADMINISTRATION FOR CHILDREN AND FAMILIES
FAMILY SUPPORT PAYMENTS TO STATES
For making payments of such sums as necessary
to each State for carrying out the program of Aid to
Families with Dependent Children under title IV–A of
the Social Security Act in fiscal year 1997 before the ef-
fective date of the program of Temporary Assistance to
Needy Families (TANF) with respect to such State: Pro-
vided, That the sum of the amounts available to a State
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with respect to expenditures under such title IV–A in fis-
cal year 1997 under this appropriation and under such
title IV–A as amended by the Personal Responsibility and
Work Opportunity Reconciliation Act of 1996 shall not
exceed the limitations under section 116(b) of such Act.
For making payments to States for carrying out
title IV–A (other than section 402(g)(6)) of the Social
Security Act in calendar quarters prior to October 1,
1996, such sums as may be necessary.
For making payments to States or other non-Fed-
eral entities under titles I, IV–D, X, XI, XIV, and XVI
of the Social Security Act and the Act of July 5, 1960
(24 U.S.C. ch. 9), $2,158,000,000 to remain available
until expended.
For making, after May 31 of the current fiscal
year, payments to States or other non-Federal entities
under titles I, IV–D, X, XI, XIV, and XVI of the Social
Security Act, for the last three months of the current
year for unanticipated costs, incurred for the current fis-
cal year, such sums as may be necessary.
For making payments to States or other non-Fed-
eral entities under titles I, IV–D, X, XI, XIV, and XVI
of the Social Security Act and the Act of July 5, 1960
(24 U.S.C. ch. 9) for the first quarter of fiscal year
1998, $607,000,000, to remain available until expended.
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CHILD CARE AND DEVELOPMENT BLOCK GRANT
(INCLUDING TRANSFER OF FUNDS)
For carrying out sections 658A through 658R of
the Omnibus Budget Reconciliation Act of 1981 (The
Child Care and Development Block Grant Act of 1990),
$956,120,000, of which $937,000,000 shall become avail-
able on October 1, 1997 and shall remain available
through 
September 
30, 
1998: 
Provided, 
That
$19,120,000 shall become available for obligation on Oc-
tober 1, 1996 for child care resource and referral and
school-aged child care activities, of which $6,120,000
shall be derived from an amount that shall be transferred
from the amount appropriated under section 452(j) of
the Social Security Act (42 U.S.C. 652(j)) for fiscal year
1996 and remaining available for expenditure.
SOCIAL SERVICES BLOCK GRANT
For making grants to States pursuant to section
2002 of the Social Security Act, $2,500,000,000: Pro-
vided, That notwithstanding section 2003(c) of such Act,
as amended, the amount specified for allocation under
such section for fiscal year 1997 shall be $2,500,000,000.
CHILDREN AND FAMILIES SERVICES PROGRAMS
(INCLUDING RESCISSIONS)
For carrying out, except as otherwise provided,
the Runaway and Homeless Youth Act, the Developmen-
tal Disabilities Assistance and Bill of Rights Act, the
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Head Start Act, the Child Abuse Prevention and Treat-
ment Act, the Temporary Child Care for Children with
Disabilities and Crisis Nurseries Act of 1986, section
429A, part B of title IV of the Social Security Act, sec-
tion 413 of the Social Security Act, the Family Violence
Prevention and Services Act, the Native American Pro-
grams Act of 1974, title II of Public Law 95–266 (adop-
tion opportunities), the Abandoned Infants Assistance
Act of 1988, and part B(1) of title IV of the Social Secu-
rity Act; for making payments under the Community
Services Block Grant Act; and for necessary administra-
tive expenses to carry out said Acts and titles I, IV, X,
XI, XIV, XVI, and XX of the Social Security Act, the
Act of July 5, 1960 (24 U.S.C. ch. 9), the Omnibus
Budget Reconciliation Act of 1981, title IV of the Immi-
gration and Nationality Act, section 501 of the Refugee
Education Assistance Act of 1980, and section 126 and
titles IV and V of Public Law 100–485, $5,363,569,000,
of which $536,432,000 shall be for making payments
under the Community Services Block Grant Act: Pro-
vided, That to the extent Community Services Block
Grant funds are distributed as grant funds by a State to
an eligible entity as provided under the Act, and have not
been expended by such entity, they shall remain with
such entity for carryover into the next fiscal year for ex-
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penditure by such entity consistent with program pur-
poses: Provided further, That of the amount appropriated
for fiscal year 1997 under section 672(a) of the Commu-
nity Services Block Grant Act, the Secretary shall use up
to one percent of the funds available to correct allocation
errors that occurred in fiscal year 1995 and fiscal year
1996 to ensure that the minimum allotment to each
State for each of fiscal years 1995 and 1996 would be
$2,222,460: Provided further, That no more than one-half
of one percent of the funds available under section 672(a)
shall be used for the purposes of section 674(a) of the
Community Services Block Grant Act.
In addition, $20,000,000, to be derived from the
Violent Crime Reduction Trust Fund, for carrying out
sections 40155, 40211 and 40241 of Public Law 103–
322.
Funds appropriated for fiscal year 1996 and fiscal
year 1997 under section 429A(e), part B of title IV of
the Social Security Act shall be reduced by $6,000,000
in each such year.
Funds appropriated for fiscal year 1997 under
section 413(h)(1) of the Social Security Act shall be re-
duced by $15,000,000.
FAMILY PRESERVATION AND SUPPORT
For carrying out section 430 of the Social Secu-
rity Act, $240,000,000.
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PAYMENTS TO STATES FOR FOSTER CARE AND ADOPTION
ASSISTANCE
For making payments to States or other non-Fed-
eral entities, under title IV–E of the Social Security Act,
$4,445,031,000.
For making payments to States or other non-Fed-
eral entities, under title IV–E of the Social Security Act,
for the first quarter of fiscal year 1998, $1,111,000,000.
ADMINISTRATION ON AGING
AGING SERVICES PROGRAMS
For carrying out, to the extent not otherwise pro-
vided, the Older Americans Act of 1965, as amended,
$830,168,000: Provided, That notwithstanding section
308(b)(1) of such Act, the amounts available to each
State for administration of the State plan under title III
of such Act shall be reduced not more than 5 percent
below the amount that was available to such State for
such purpose for fiscal year 1995: Provided further, That
in considering grant applications for nutrition services for
elder Indian recipients, the Assistant Secretary shall pro-
vide maximum flexibility to applicants who seek to take
into account subsistence, local customs and other charac-
teristics that are appropriate to the unique cultural, re-
gional and geographic needs of the American Indian,
Alaskan and Hawaiian native communities to be served.
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OFFICE OF THE SECRETARY
GENERAL DEPARTMENTAL MANAGEMENT
For necessary expenses, not otherwise provided,
for general departmental management, including hire of
six sedans, and for carrying out titles III, XVII, and XX
of the Public Health Service Act, $174,523,000, together
with $5,851,000, to be transferred and expended as au-
thorized by section 201(g)(1) of the Social Security Act
from the Hospital Insurance Trust Fund and the Supple-
mental Medical Insurance Trust Fund: Provided, That of
the funds made available under this heading for carrying
out title XVII of the Public Health Service Act,
$11,500,000 shall be available until expended for extra-
mural construction: Provided further, That notwithstand-
ing section 2010 (b) and (c) under title XX of the Public
Health Service Act, as amended, of the funds made avail-
able under this heading, $10,879,000 shall be for activi-
ties specified under section 2003(b)(2) of title XX of the
Public Health Service Act, as amended, and of which
$9,011,000 shall be for prevention grants under section
510(b)(2) of title V of the Social Security Act, as amend-
ed: Provided further, That of the amount provided,
$5,775,000 is designated by Congress as an emergency
requirement pursuant to section 251(b)(2)(D)(i) of the
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Balanced Budget and Emergency Deficit Control Act of
1985, as amended.
OFFICE OF INSPECTOR GENERAL
For expenses necessary for the Office of Inspector
General in carrying out the provisions of the Inspector
General Act of 1978, as amended, $32,999,000, together
with any funds, to remain available until expended, that
represent the equitable share from the forfeiture of prop-
erty in investigations in which the Office of Inspector
General participated, and which are transferred to the
Office of Inspector General by the Department of Jus-
tice, the Department of the Treasury, or the United
States Postal Service.
OFFICE FOR CIVIL RIGHTS
For expenses necessary for the Office for Civil
Rights, $16,216,000, together with not to exceed
$3,314,000, to be transferred and expended as author-
ized by section 201(g)(1) of the Social Security Act from
the Hospital Insurance Trust Fund and the Supple-
mental Medical Insurance Trust Fund.
POLICY RESEARCH
For carrying out, to the extent not otherwise pro-
vided, research studies under section 1110 of the Social
Security Act and section 301(l) of Public Law 104–191,
$18,500,000: Provided, That $9,500,000, to remain
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available until September 30, 1998, shall be for carrying
out section 301(l) of Public Law 104–191.
GENERAL PROVISIONS
SEC. 201. Funds appropriated in this title shall be
available for not to exceed $37,000 for official reception
and representation expenses when specifically approved
by the Secretary.
SEC. 202. The Secretary shall make available
through assignment not more than 60 employees of the
Public Health Service to assist in child survival activities
and to work in AIDS programs through and with funds
provided by the Agency for International Development,
the United Nations International Children’s Emergency
Fund or the World Health Organization.
SEC. 203. None of the funds appropriated under
this Act may be used to implement section 399L(b) of
the Public Health Service Act or section 1503 of the Na-
tional Institutes of Health Revitalization Act of 1993,
Public Law 103–43.
SEC. 204. None of the funds made available by
this Act may be used to withhold payment to any State
under the Child Abuse Prevention and Treatment Act by
reason of a determination that the State is not in compli-
ance with section 1340.2(d)(2)(ii) of title 45 of the Code
of Federal Regulations. This provision expires upon the
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date of enactment of the reauthorization of the Child
Abuse Prevention and Treatment Act.
SEC. 205. None of the funds appropriated in this
Act for the National Institutes of Health and the Sub-
stance Abuse and Mental Health Services Administration
shall be used to pay the salary of an individual, through
a grant or other extramural mechanism, at a rate in ex-
cess of $125,000 per year.
SEC. 206. None of the funds appropriated in this
Act may be expended pursuant to section 241 of the Pub-
lic Health Service Act, except for funds specifically pro-
vided for in this Act, or for other taps and assessments
made by any office located in the Department of Health
and Human Services, prior to the Secretary’s preparation
and submission of a report to the Committee on Appro-
priations of the Senate and of the House detailing the
planned uses of such funds.
(TRANSFER OF FUNDS)
SEC. 207. Of the funds appropriated or otherwise
made available for the Department of Health and Human
Services, General Departmental Management, for fiscal
year 1997, the Secretary of Health and Human Services
shall transfer to the Office of the Inspector General such
sums as may be necessary for any expenses with respect
to the provision of security protection for the Secretary
of Health and Human Services.
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SEC. 208. None of the funds appropriated in this
Act may be obligated or expended for the Federal Council
on Aging under the Older Americans Act or the Advisory
Board on Child Abuse and Neglect under the Child
Abuse Prevention and Treatment Act.
(TRANSFER OF FUNDS)
SEC. 209. Not to exceed 1 percent of any discre-
tionary funds (pursuant to the Balanced Budget and
Emergency Deficit Control Act, as amended) which are
appropriated for the current fiscal year for the Depart-
ment of Health and Human Services in this Act may be
transferred between appropriations, but no such appro-
priation shall be increased by more than 3 percent by any
such transfer: Provided, That the Appropriations Com-
mittees of both House of Congress are notified at least
fifteen days in advance of any transfer.
(TRANSFER OF FUNDS)
SEC. 210. The Director of the National Institutes
of Health, jointly with the Director of the Office of AIDS
Research, may transfer up to 3 percent among institutes,
centers, and divisions from the total amounts identified
by these two Directors as funding for research pertaining
to the human immunodeficiency virus: Provided, That the
Congress is promptly notified of the transfer.
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(TRANSFER OF FUNDS)
SEC. 211. Of the amounts made available in this
Act for the National Institutes of Health, the amount for
research related to the human immunodeficiency virus, as
jointly determined by the Director of NIH and the Direc-
tor of the Office of AIDS Research, shall be made avail-
able to the ‘‘Office of AIDS Research’’ account. The Di-
rector of the Office of AIDS Research shall transfer from
such account amounts necessary to carry out section
2353(d)(3) of the Public Health Service Act.
SEC. 212. Not later than January 1, 1997, the
Administrator of the Health Care Financing Administra-
tion, with the advice and technical assistance of the
Agency for Health Care Policy and Research, shall trans-
mit to the appropriate committees of the Congress a re-
port including—
(1) a review of all available studies and research
data on the treatment of end-stage emphysema and
chronic obstructive pulmonary disease by both unilateral
and bilateral lung volume reduction surgery, involving
both invasive and noninvasive surgery and supplemental
surgical methods, including laser applications; and
(2) a recommendation, based on such review, as to
the appropriateness of Medicare coverage of such proce-
dures and the conditions, if necessary, that facilities and
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physicians should be required to meet, to ensure the effi-
cacy of such procedures, as more detailed clinical studies
are conducted.
SEC. 213. Section 304(a)(1) of the Family Vio-
lence 
Prevention 
and 
Services 
Act 
(42 
U.S.C.
10403(a)(1)) is amended by striking ‘‘$200,000’’ and in-
serting ‘‘$400,000’’.
SEC. 214. The new clinical research center at the
National Institutes of Health is hereby named the Mark
O. Hatfield Clinical Research Center.
SEC. 215. Section 345 of Public Law 104–193 is
amended by replacing ‘‘section 457(a)’’ wherever it ap-
pears with ‘‘a plan approved under this part’’. Amounts
available under such section shall be calculated as though
such section were effective October 1, 1995.
This title may be cited as the ‘‘Department of
Health and Human Services Appropriations Act, 1997’’.
TITLE III—DEPARTMENT OF EDUCATION
EDUCATION REFORM
For carrying out activities authorized by titles III
and IV of the Goals 2000: Educate America Act and the
School-to-Work Opportunities Act, $691,000,000, of
which $476,000,000 for the Goals 2000: Educate Amer-
ica Act and $200,000,000 for the School-to-Work Oppor-
tunities Act shall become available on July 1, 1997, and
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remain available through September 30, 1998: Provided,
That none of the funds appropriated under this heading
shall be obligated or expended to carry out section
304(a)(2)(A) of the Goals 2000: Educate America Act.
EDUCATION FOR THE DISADVANTAGED
For carrying out title I of the Elementary and
Secondary Education Act of 1965, and section 418A of
the Higher Education Act, $7,698,469,000, of which
$6,380,114,000 shall become available on July 1, 1997,
and shall remain available through September 30, 1998,
and of which $1,298,386,000 shall become available on
October 1, 1997 and shall remain available through Sep-
tember 30, 1998, for academic year 1997–1998: Pro-
vided, That $6,194,850,000 shall be available for basic
grants under section 1124: Provided further, That up to
$3,500,000 of these funds shall be available to the Sec-
retary on October 1, 1996, to obtain updated local-edu-
cational-agency-level census poverty data from the Bu-
reau of the Census: Provided further, That $999,249,000
shall be available for concentration grants under section
1124(A) and $7,000,000 shall be available for evalua-
tions under section 1501.
IMPACT AID
For carrying out programs of financial assistance
to federally affected schools authorized by title VIII of
the Elementary and Secondary Education Act of 1965,
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$730,000,000, of which $615,500,000 shall be for basic
support payments under section 8003(b), $40,000,000
shall be for payments for children with disabilities under
section 8003(d), $52,000,000, to remain available until
expended, shall be for payments under section 8003(f),
$5,000,000 shall be for construction under section 8007,
and $17,500,000 shall be for Federal property payments
under section 8002.
SCHOOL IMPROVEMENT PROGRAMS
For carrying out school improvement activities au-
thorized by titles II, IV–A–1, V–A and B, VI, IX, X and
XIII of the Elementary and Secondary Education Act of
1965; the Stewart B. McKinney Homeless Assistance
Act; and the Civil Rights Act of 1964; $1,425,631,000,
of which $1,202,478,000 shall become available on July
1, 1997, and remain available through September 30,
1998: Provided, That of the amount appropriated,
$310,000,000 shall be for Eisenhower professional devel-
opment State grants under title II–B and $310,000,000
shall be for innovative education program strategies State
grants under title VI–A.
BILINGUAL AND IMMIGRANT EDUCATION
For carrying out, to the extent not otherwise pro-
vided, bilingual, foreign language and immigrant edu-
cation activities authorized by parts A and C and section
7203 of title VII of the Elementary and Secondary Edu-
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cation 
Act, 
without 
regard 
to 
section 
7103(b),
$261,700,000, of which $100,000,000 shall be for immi-
grant education programs authorized by part C: Pro-
vided, That State educational agencies may use all, or
any part of, their part C allocation for competitive grants
to local educational agencies: Provided further, That the
Department of Education should only support instruc-
tional programs which ensure that students completely
master English in a timely fashion (a period of three to
five years) while meeting rigorous achievement standards
in the academic content areas.
SPECIAL EDUCATION
For carrying out parts B, C, D, E, F, G, and H
and section 610(j)(2)(C) of the Individuals with Disabil-
ities 
Education 
Act, 
$4,036,000,000, 
of 
which
$3,783,685,000 shall become available for obligation on
July 1, 1997, and shall remain available through Septem-
ber 30, 1998: Provided, That the Republic of the Mar-
shall Islands, the Federated States of Micronesia, and
the Republic of Palau shall continue to be eligible to re-
ceive funds under the Individuals with Disabilities Edu-
cation Act consistent with the provisions of Public Law
104–134: Provided further, That the entities that received
competitive awards for direct services to children under
section 611 of the Individuals with Disabilities Education
Act in accordance with the competition required in Public
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Law 104–134 shall continue to be funded, without com-
petition, in the same amounts as under Public Law 104–
134.
REHABILITATION SERVICES AND DISABILITY RESEARCH
For carrying out, to the extent not otherwise pro-
vided, the Rehabilitation Act of 1973, the Technology-Re-
lated Assistance for Individuals with Disabilities Act, and
the Helen Keller National Center Act, as amended,
$2,509,447,000.
SPECIAL INSTITUTIONS FOR PERSONS WITH
DISABILITIES
AMERICAN PRINTING HOUSE FOR THE BLIND
For carrying out the Act of March 3, 1879, as
amended (20 U.S.C. 101 et seq.), $6,680,000.
NATIONAL TECHNICAL INSTITUTE FOR THE DEAF
For the National Technical Institute for the Deaf
under titles I and II of the Education of the Deaf Act
of 1986 (20 U.S.C. 4301 et seq.), $43,041,000: Provided,
That from the amount available, the Institute may at its
discretion use funds for the endowment program as au-
thorized under section 207.
GALLAUDET UNIVERSITY
For the Kendall Demonstration Elementary
School, the Model Secondary School for the Deaf, and
the partial support of Gallaudet University under titles I
and II of the Education of the Deaf Act of 1986 (20
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U.S.C. 4301 et seq.), $79,182,000: Provided, That from
the amount available, the University may at its discretion
use funds for the endowment program as authorized
under section 207.
VOCATIONAL AND ADULT EDUCATION
For carrying out, to the extent not otherwise pro-
vided, the Carl D. Perkins Vocational and Applied Tech-
nology Education Act, the Adult Education Act, and the
National Literacy Act of 1991, $1,486,531,000, of which
$4,500,000 shall be for the National Institute for Lit-
eracy; and of which $1,483,612,000 shall become avail-
able on July 1, 1997 and shall remain available through
September 30, 1998: Provided, That, of the amounts
made available for title II of the Carl D. Perkins Voca-
tional 
and 
Applied 
Technology 
Education 
Act,
$4,500,000 shall be used by the Secretary for national
programs under title IV, without regard to section 451:
Provided further, That, in addition, the Secretary may re-
serve up to $9,000,000 under section 101(a)(1)(A) of the
Carl D. Perkins Vocational and Applied Technology Edu-
cation Act, without regard to section 451: Provided fur-
ther, That the Secretary may reserve up to $5,000,000
under section 313(d) of the Adult Education Act for ac-
tivities carried out under section 383 of that Act: Pro-
vided further, That no funds shall be awarded to a State
Council under section 112(f) of the Carl D. Perkins Vo-
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cational and Applied Technology Education Act, and no
State shall be required to operate such a Council.
STUDENT FINANCIAL ASSISTANCE
For carrying out subparts 1, 3, and 4, of part A,
part C and part E of title IV of the Higher Education
Act of 1965, as amended, $7,560,407,000, which shall
remain available through September 30, 1998.
The maximum Pell Grant for which a student
shall be eligible during award year 1997–1998 shall be
$2,700: Provided, That notwithstanding section 401(g) of
the Act, if the Secretary determines, prior to publication
of the payment schedule for such award year, that the
amount included within this appropriation for Pell Grant
awards in such award year, and any funds available from
the fiscal year 1996 appropriation for Pell Grant awards,
are insufficient to satisfy fully all such awards for which
students are eligible, as calculated under section 401(b)
of the Act, the amount paid for each such award shall
be reduced by either a fixed or variable percentage, or by
a fixed dollar amount, as determined in accordance with
a schedule of reductions established by the Secretary for
this purpose.
FEDERAL FAMILY EDUCATION LOAN PROGRAM ACCOUNT
For Federal administrative expenses to carry out
guaranteed student loans authorized by title IV, part B,
of the Higher Education Act, as amended, $46,572,000.
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HIGHER EDUCATION
For carrying out, to the extent not otherwise pro-
vided, parts A and B of title III, without regard to sec-
tion 360(a)(1)(B)(ii), titles IV, V, VI, VII, and IX, part
A and subpart 1 of part B of title X, and title XI of the
Higher Education Act of 1965, as amended, Public Law
102–423 and the Mutual Educational and Cultural Ex-
change Act of 1961; $879,054,000, of which $15,673,000
for interest subsidies under title VII of the Higher Edu-
cation Act, as amended, shall remain available until ex-
pended: Provided, That funds available for part D of title
IX of the Higher Education Act shall be available to fund
noncompeting continuation awards for academic year
1997–1998 for fellowships awarded originally under part
B of title IX of said Act, under the terms and conditions
of part B: Provided further, That $5,931,000 of the
funds available for part D of title IX of the Higher Edu-
cation Act shall be available to fund new and noncompet-
ing continuation awards for academic year 1997–1998
for fellowships awarded under part C of title IX of said
Act, under the terms and conditions of part C: Provided
further, That notwithstanding sections 419D, 419E, and
419H of the Higher Education Act, as amended, scholar-
ships made under title IV, part A, subpart 6 shall be pro-
rated to maintain the same number of new scholarships
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under the Howard University Endowment Act (Public
Law 98–480).
HIGHER EDUCATION FACILITIES LOANS
The Secretary is hereby authorized to make such
expenditures, within the limits of funds available under
this heading and in accord with law, and to make such
contracts and commitments without regard to fiscal year
limitation, as provided by section 104 of the Government
Corporation Control Act (31 U.S.C. 9104), as may be
necessary in carrying out the program for the current fis-
cal year.
COLLEGE HOUSING AND ACADEMIC FACILITIES LOANS
PROGRAM
For administrative expenses to carry out the exist-
ing direct loan program of college housing and academic
facilities loans entered into pursuant to title VII, part C,
of the Higher Education Act, as amended, $698,000.
COLLEGE HOUSING LOANS
Pursuant to title VII, part C of the Higher Edu-
cation Act, as amended, for necessary expenses of the col-
lege housing loans program, the Secretary shall make ex-
penditures and enter into contracts without regard to fis-
cal year limitation using loan repayments and other re-
sources available to this account. Any unobligated bal-
ances becoming available from fixed fees paid into this
account pursuant to 12 U.S.C. 1749d, relating to pay-
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ment of costs for inspections and site visits, shall be
available for the operating expenses of this account.
HISTORICALLY BLACK COLLEGE AND UNIVERSITY
CAPITAL FINANCING, PROGRAM ACCOUNT
The total amount of bonds insured pursuant to
section 724 of title VII, part B of the Higher Education
Act shall not exceed $357,000,000, and the cost, as de-
fined in section 502 of the Congressional Budget Act of
1974, of such bonds shall not exceed zero.
For administrative expenses to carry out the His-
torically Black College and University Capital Financing
Program entered into pursuant to title VII, part B of the
Higher Education Act, as amended, $104,000.
EDUCATION RESEARCH, STATISTICS, AND IMPROVEMENT
For carrying out activities authorized by the Edu-
cational Research, Development, Dissemination, and Im-
provement Act of 1994, including part E; the National
Education Statistics Act of 1994; section 2102, sections
3132, 3136 and 3141, parts B, C, and D of title III and
parts A, B, I, and K and section 10601 of title X, and
part C of title XIII of the Elementary and Secondary
Education Act of 1965, as amended, and title VI of Pub-
lic 
Law 
103–227, 
$598,350,000: 
Provided, 
That
$200,000,000 shall be for section 3132, $56,965,000
shall be for section 3136 and $10,000,000 shall be for
section 3141 of the Elementary and Secondary Education
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Act: Provided further, That notwithstanding any other
provision of law, one-half of one percent of the amount
available for section 3132 of the Elementary and Second-
ary Education Act of 1965, as amended, shall be set
aside for the outlying areas to be distributed among the
outlying areas on the basis of their relative need as deter-
mined by the Secretary in accordance with the purposes
of the program: Provided further, That, notwithstanding
section 3131(b) of said Act, if any State educational
agency does not apply for a grant under section 3132,
that State’s allotment under section 3131 shall be re-
served by the Secretary for grants to local educational
agencies in the State that apply directly to the Secretary
according to the terms and conditions announced by the
Secretary in the Federal Register: Provided further, That,
of the amount available for title III, part B of the Ele-
mentary and Secondary Education Act of 1965, as
amended, funds shall be awarded to continue the Iowa
Communication Network statewide fiber optic demonstra-
tion and $2,000,000 shall be awarded to the Southeast-
ern Pennsylvania Consortium for Higher Education for
the establishment of local and wide area computer net-
works to provide instructional resources to students and
faculty: Provided further, That none of the funds appro-
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priated in this paragraph may be obligated or expended
for the Goals 2000 Community Partnerships Program.
LIBRARIES
Notwithstanding title VII of this Act, for carrying
out titles I, II, III, and IV of the Library Services and
Construction Act, and title II–B of the Higher Education
Act, $136,369,000, of which $16,369,000 shall be used
to carry out the provisions of title II of the Library Serv-
ices and Construction Act and shall remain available
until expended; and $2,500,000 shall be for section 222
and $5,000,000 shall be for section 223 of the Higher
Education Act: Provided, That $1,000,000 shall be com-
petitively awarded to a nonprofit regional social tolerance
resource center, operating tolerance tools and prejudice
reduction programs and multimedia tolerance and geno-
cide exhibits: Provided further, That $1,500,000 shall be
for the continuation of a demonstration project making
information available for public use by connecting
Internet to a multistate consortium and a historical soci-
ety: Provided further, That $1,000,000 shall be for con-
tinuation of catalog conversion of research and doctoral
institutions and networking of local libraries under the
fiber optics demonstration initiated in Public Law 102–
394 under section 223 of the Higher Education Act: Pro-
vided further, That each State or local recipient of funds
under titles I, II, III, and IV of the Library Services and
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Construction Act may use any such funds to plan for any
library program or activity authorized under title VII of
this Act and conduct any other activity reasonably nec-
essary to provide for an orderly and effective transition
to the operation of library programs or activities under
title VII of this Act.
DEPARTMENTAL MANAGEMENT
PROGRAM ADMINISTRATION
For carrying out, to the extent not otherwise pro-
vided, the Department of Education Organization Act,
including rental of conference rooms in the District of
Columbia and hire of two passenger motor vehicles,
$327,000,000.
OFFICE FOR CIVIL RIGHTS
For expenses necessary for the Office for Civil
Rights, as authorized by section 203 of the Department
of Education Organization Act, $55,000,000.
OFFICE OF THE INSPECTOR GENERAL
For expenses necessary for the Office of the In-
spector General, as authorized by section 212 of the De-
partment of Education Organization Act, $30,000,000.
GENERAL PROVISIONS
SEC. 301. No funds appropriated in this Act may
be used for the transportation of students or teachers (or
for the purchase of equipment for such transportation) in
order to overcome racial imbalance in any school or
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school system, or for the transportation of students or
teachers (or for the purchase of equipment for such
transportation) in order to carry out a plan of racial de-
segregation of any school or school system.
SEC. 302. None of the funds contained in this Act
shall be used to require, directly or indirectly, the trans-
portation of any student to a school other than the school
which is nearest the student’s home, except for a student
requiring special education, to the school offering such
special education, in order to comply with title VI of the
Civil Rights Act of 1964. For the purpose of this section
an indirect requirement of transportation of students in-
cludes the transportation of students to carry out a plan
involving the reorganization of the grade structure of
schools, the pairing of schools, or the clustering of
schools, or any combination of grade restructuring, pair-
ing or clustering. The prohibition described in this sec-
tion does not include the establishment of magnet
schools.
SEC. 303. No funds appropriated under this Act
may be used to prevent the implementation of programs
of voluntary prayer and meditation in the public schools.
SEC. 304. Notwithstanding any other provision of
law, funds available under section 458 of the Higher
Education Act shall not exceed $491,000,000 for fiscal
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year 1997. The Department of Education shall use
$80,000,000 of the amounts provided for payment of ad-
ministrative cost allowances to guaranty agencies for fis-
cal year 1996. For fiscal year 1997, the Department of
Education shall pay administrative costs to guaranty
agencies, calculated on the basis of 0.85 percent of the
total principal amount of loans upon which insurance was
issued on or after October 1, 1996: Provided, That such
administrative costs shall be paid only on the first
$8,200,000,000 of the principal amount of loans upon
which insurance was issued on or after October 1, 1996
by such guaranty agencies, and shall not exceed a total
of $70,000,000. Such payments are to be paid quarterly,
and receipt of such funds and uses of such funds shall
be in accordance with section 428(f) of the Higher Edu-
cation Act.
Notwithstanding section 458 of the Higher Edu-
cation Act, the Secretary may not use funds available
under that section or any other section for subsequent
fiscal years for administrative expenses of the William D.
Ford Direct Loan Program. The Secretary may not re-
quire the return of guaranty agency reserve funds during
fiscal year 1997, except after consultation with both the
Chairmen and ranking members of the House Economic
and Educational Opportunities Committee and the Sen-
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ate Labor and Human Resources Committee. Any reserve
funds recovered by the Secretary shall be returned to the
Treasury of the United States for purposes of reducing
the Federal deficit.
No funds available to the Secretary may be used
for (1) the hiring of advertising agencies or other third
parties to provide advertising services for student loan
programs prior to January 1, 1997, or (2) payment of
administrative fees relating to the William D. Ford Di-
rect Loan Program to institutions of higher education.
SEC. 305. None of the funds appropriated in this
Act may be obligated or expended to carry out section
621(b) of Public Law 101–589.
(TRANSFER OF FUNDS)
SEC. 306. Not to exceed 1 percent of any discre-
tionary funds (pursuant to the Balanced Budget and
Emergency Deficit Control Act, as amended) which are
appropriated for the current fiscal year for the Depart-
ment of Education in this Act may be transferred be-
tween appropriations, but no such appropriation shall be
increased by more than 3 percent by any such transfer:
Provided, That the Appropriations Committees of both
Houses of Congress are notified at least fifteen days in
advance of any transfer.
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SEC. 307. (a) Section 8003(f)(3)(A)(i) of the Ele-
mentary and Secondary Education Act of 1965 (20
U.S.C. 7703(f)(3)(A)(i)) is amended—
(1) in the matter preceding subclause (I), by
striking ‘‘The Secretary’’ and all that follows
through ‘‘greater of—’’ and inserting the following:
‘‘The Secretary, in conjunction with the local edu-
cational agency, shall first determine each of the fol-
lowing:’’;
(2) in each of subclauses (I) through (III), by
striking ‘‘the average’’ each place it appears the first
time in each such subclause and inserting ‘‘The av-
erage’’;
(3) in subclause (I), by striking the semicolon
and inserting a period;
(4) in subclause (II), by striking ‘‘: or’’ and in-
serting a period; and
(5) by adding at the end the following:
‘‘The local educational agency shall select one of
the amounts determined under subclause (I), (II), or
(III) for purposes of the remaining computations under
this subparagraph.’’.
(b) The amendments made by subsection (a) shall
apply with respect to fiscal years beginning with fiscal
year 1995.
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SEC. 308. Section 485(e)(9) of the Higher Edu-
cation Act of 1965 is amended by striking out ‘‘June 30’’
in the second sentence of such section and inserting ‘‘Au-
gust 30’’.
This title may be cited as the ‘‘Department of
Education Appropriations Act, 1997’’.
TITLE IV—RELATED AGENCIES
ARMED FORCES RETIREMENT HOME
For expenses necessary for the Armed Forces Re-
tirement Home to operate and maintain the United
States Soldiers’ and Airmen’s Home and the United
States Naval Home, to be paid from funds available in
the Armed Forces Retirement Home Trust Fund,
$56,204,000, of which $432,000 shall remain available
until expended for construction and renovation of the
physical plants at the United States Soldiers’ and Air-
men’s Home and the United States Naval Home: Pro-
vided, That this appropriation shall not be available for
the payment of hospitalization of members of the Sol-
diers’ and Airmen’s Home in United States Army hos-
pitals at rates in excess of those prescribed by the Sec-
retary of the Army upon recommendation of the Board
of Commissioners and the Surgeon General of the Army.
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CORPORATION FOR NATIONAL AND COMMUNITY SERVICE
DOMESTIC VOLUNTEER SERVICE PROGRAMS, OPERATING
EXPENSES
For expenses necessary for the Corporation for
National and Community Service to carry out the provi-
sions of the Domestic Volunteer Service Act of 1973, as
amended, $213,969,000.
CORPORATION FOR PUBLIC BROADCASTING
For payment to the Corporation for Public Broad-
casting, as authorized by the Communications Act of
1934, an amount which shall be available within limita-
tions specified by that Act, for the fiscal year 1999,
$250,000,000: Provided, That no funds made available to
the Corporation for Public Broadcasting by this Act shall
be used to pay for receptions, parties, or similar forms
of entertainment for Government officials or employees:
Provided further, That none of the funds contained in
this paragraph shall be available or used to aid or sup-
port any program or activity from which any person is
excluded, or is denied benefits, or is discriminated
against, on the basis of race, color, national origin, reli-
gion, or sex.
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FEDERAL MEDIATION AND CONCILIATION SERVICE
SALARIES AND EXPENSES
For expenses necessary for the Federal Mediation
and Conciliation Service to carry out the functions vested
in it by the Labor Management Relations Act, 1947 (29
U.S.C. 171–180, 182–183), including hire of passenger
motor vehicles; and for expenses necessary for the Labor-
Management Cooperation Act of 1978 (29 U.S.C. 175a);
and for expenses necessary for the Service to carry out
the functions vested in it by the Civil Service Reform Act,
Public Law 95–454 (5 U.S.C. chapter 71), $32,579,000
including $1,500,000, to remain available through Sep-
tember 30, 1998, for activities authorized by the Labor-
Management Cooperation Act of 1978 (29 U.S.C. 175a):
Provided, That notwithstanding 31 U.S.C. 3302, fees
charged, up to full-cost recovery, for special training ac-
tivities and for arbitration services shall be credited to
and merged with this account, and shall remain available
until expended: Provided further, That fees for arbitration
services shall be available only for education, training,
and professional development of the agency workforce:
Provided further, That the Director of the Service is au-
thorized to accept on behalf of the United States gifts of
services and real, personal, or other property in the aid
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of any projects or functions within the Director’s jurisdic-
tion.
FEDERAL MINE SAFETY AND HEALTH REVIEW
COMMISSION
SALARIES AND EXPENSES
For expenses necessary for the Federal Mine
Safety and Health Review Commission (30 U.S.C. 801 et
seq.), $6,060,000.
NATIONAL COMMISSION ON LIBRARIES AND
INFORMATION SCIENCE
SALARIES AND EXPENSES
For necessary expenses for the National Commis-
sion on Libraries and Information Science, established by
the Act of July 20, 1970 (Public Law 91–345, as amend-
ed by Public Law 102–95), $897,000.
NATIONAL COUNCIL ON DISABILITY
SALARIES AND EXPENSES
For expenses necessary for the National Council
on Disability as authorized by title IV of the Rehabilita-
tion Act of 1973, as amended, $1,793,000.
NATIONAL EDUCATION GOALS PANEL
For expenses necessary for the National Edu-
cation Goals Panel, as authorized by title II, part A of
the Goals 2000: Educate America Act, $1,500,000.
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NATIONAL LABOR RELATIONS BOARD
SALARIES AND EXPENSES
For expenses necessary for the National Labor
Relations Board to carry out the functions vested in it
by the Labor-Management Relations Act, 1947, as
amended (29 U.S.C. 141–167), and other laws,
$175,000,000: Provided, That no part of this appropria-
tion shall be available to organize or assist in organizing
agricultural laborers or used in connection with investiga-
tions, hearings, directives, or orders concerning bargain-
ing units composed of agricultural laborers as referred to
in section 2(3) of the Act of July 5, 1935 (29 U.S.C.
152), and as amended by the Labor-Management Rela-
tions Act, 1947, as amended, and as defined in section
3(f) of the Act of June 25, 1938 (29 U.S.C. 203), and
including in said definition employees engaged in the
maintenance and operation of ditches, canals, reservoirs,
and waterways when maintained or operated on a mu-
tual, nonprofit basis and at least 95 per centum of the
water stored or supplied thereby is used for farming pur-
poses: Provided further, That none of the funds made
available by this Act shall be used in any way to promul-
gate a final rule (altering 29 CFR part 103) regarding
single location bargaining units in representation cases.
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NATIONAL MEDIATION BOARD
SALARIES AND EXPENSES
For expenses necessary to carry out the provisions
of the Railway Labor Act, as amended (45 U.S.C. 151–
188), including emergency boards appointed by the Presi-
dent, $8,300,000: Provided, That unobligated balances at
the end of fiscal year 1997 not needed for emergency
boards shall remain available for other statutory purposes
through September 30, 1998.
OCCUPATIONAL SAFETY AND HEALTH REVIEW
COMMISSION
SALARIES AND EXPENSES
For expenses necessary for the Occupational Safe-
ty and Health Review Commission (29 U.S.C. 661),
$7,753,000.
PHYSICIAN PAYMENT REVIEW COMMISSION
SALARIES AND EXPENSES
For expenses necessary to carry out section
1845(a) of the Social Security Act, $3,263,000, to be
transferred to this appropriation from the Federal Sup-
plementary Medical Insurance Trust Fund.
PROSPECTIVE PAYMENT ASSESSMENT COMMISSION
SALARIES AND EXPENSES
For expenses necessary to carry out section
1886(e) of the Social Security Act, $3,263,000, to be
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transferred to this appropriation from the Federal Hos-
pital Insurance and the Federal Supplementary Medical
Insurance Trust Funds.
SOCIAL SECURITY ADMINISTRATION
PAYMENTS TO SOCIAL SECURITY TRUST FUNDS
For payment to the Federal Old-Age and Survi-
vors Insurance and the Federal Disability Insurance trust
funds, as provided under sections 201(m), 228(g), and
1131(b)(2) of the Social Security Act, $20,923,000.
In addition, to reimburse these trust funds for ad-
ministrative expenses to carry out sections 9704 and
9706 
of 
the 
Internal 
Revenue 
Code 
of 
1986,
$10,000,000, to remain available until expended.
SPECIAL BENEFITS FOR DISABLED COAL MINERS
For carrying out title IV of the Federal Mine
Safety and Health Act of 1977, $460,070,000, to remain
available until expended.
For making, after July 31 of the current fiscal
year, benefit payments to individuals under title IV of the
Federal Mine Safety and Health Act of 1977, for costs
incurred in the current fiscal year, such amounts as may
be necessary.
For making benefit payments under title IV of the
Federal Mine Safety and Health Act 1977 for the first
quarter of fiscal year 1998, $160,000,000, to remain
available until expended.
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SUPPLEMENTAL SECURITY INCOME PROGRAM
For carrying out titles XI and XVI of the Social
Security Act, section 401 of Public Law 92–603, section
212 of Public Law 93–66, as amended, and section 405
of Public Law 95–216, including payment to the Social
Security trust funds for administrative expenses incurred
pursuant to section 201(g)(1) of the Social Security Act,
$19,372,010,000, to remain available until expended:
Provided, That any portion of the funds provided to a
State in the current fiscal year and not obligated by the
State during that year shall be returned to the Treasury.
From funds provided under the previous para-
graph, not less than $100,000,000 shall be available for
payment to the Social Security trust funds for adminis-
trative expenses for conducting continuing disability re-
views.
In addition, $175,000,000, to remain available
until September 30, 1998, for payment to the Social Se-
curity trust funds for administrative expenses for con-
tinuing disability reviews as authorized by section 103 of
Public Law 104–121 and Supplemental Security Income
administrative work as authorized by Public Law 104–
193. The term ‘‘continuing disability reviews’’ means re-
views and redetermination as defined under section
201(g)(1)(A) of the Social Security Act as amended, and
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reviews and redeterminations authorized under section
211 of Public Law 104–193.
For making, after June 15 of the current fiscal
year, benefit payments to individuals under title XVI of
the Social Security Act, for unanticipated costs incurred
for the current fiscal year, such sums as may be nec-
essary.
For carrying out title XVI of the Social Security
Act for the first quarter of fiscal year 1998,
$9,690,000,000, to remain available until expended.
LIMITATION ON ADMINISTRATIVE EXPENSES
For necessary expenses, including the hire of two
passenger motor vehicles, and not to exceed $10,000 for
official reception and representation expenses, not more
than $5,873,382,000 may be expended, as authorized by
section 201(g)(1) of the Social Security Act or as nec-
essary to carry out sections 9704 and 9706 of the Inter-
nal Revenue Code of 1986 from any one or all of the
trust funds referred to therein: Provided, That reimburse-
ment to the trust funds under this heading for adminis-
trative expenses to carry out sections 9704 and 9706 of
the Internal Revenue Code of 1986 shall be made, with
interest, not later than September 30, 1988: Provided
further, That not less than $1,268,000 shall be for the
Social Security Advisory Board: Provided further, That
unobligated balances at the end of fiscal year 1997 not
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needed for fiscal year 1997 shall remain available until
expended for a state-of-the-art computing network, in-
cluding related equipment and administrative expenses
associated solely with this network.
From funds provided under the previous para-
graph, not less than $200,000,000 shall be available for
conducting continuing disability reviews.
In addition to funding already available under this
heading, and subject to the same terms and conditions,
$310,000,000, to remain available until September 30,
1998, for continuing disability reviews as authorized by
section 103 of Public Law 104–121 and Supplemental
Security Income administrative work as authorized by
Public Law 104–193. The term ‘‘continuing disability re-
views’’ means reviews and redetermination as defined
under section 201(g)(1)(A) of the Social Security Act as
amended, and reviews and redeterminations authorized
under section 211 of Public Law 104–193.
In addition to funding already available under this
heading, and subject to the same terms and conditions,
$234,895,000, which shall remain available until ex-
pended, to invest in a state-of-the-art computing network,
including related equipment and administrative expenses
associated solely with this network, for the Social Secu-
rity Administration and the State Disability Determina-
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tion Services, may be expended from any or all of the
trust funds as authorized by section 201(g)(1) of the So-
cial Security Act.
OFFICE OF INSPECTOR GENERAL
For expenses necessary for the Office of Inspector
General in carrying out the provisions of the Inspector
General Act of 1978, as amended, $6,335,000, together
with not to exceed $31,089,000, to be transferred and ex-
pended as authorized by section 201(g)(1) of the Social
Security Act from the Federal Old-Age and Survivors In-
surance Trust Fund and the Federal Disability Insurance
Trust Fund.
RAILROAD RETIREMENT BOARD
DUAL BENEFITS PAYMENTS ACCOUNT
For payment to the Dual Benefits Payments Ac-
count, authorized under section 15(d) of the Railroad Re-
tirement Act of 1974, $223,000,000, which shall include
amounts becoming available in fiscal year 1997 pursuant
to section 224(c)(1)(B) of Public Law 98–76; and in ad-
dition, an amount, not to exceed 2 percent of the amount
provided herein, shall be available proportional to the
amount by which the product of recipients and the aver-
age benefit received exceeds $223,000,000: Provided,
That the total amount provided herein shall be credited
in 12 approximately equal amounts on the first day of
each month in the fiscal year.
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FEDERAL PAYMENTS TO THE RAILROAD RETIREMENT
ACCOUNTS
For payment to the accounts established in the
Treasury for the payment of benefits under the Railroad
Retirement Act for interest earned on unnegotiated
checks, $300,000, to remain available through September
30, 1998, which shall be the maximum amount available
for payment pursuant to section 417 of Public Law 98–
76.
LIMITATION ON ADMINISTRATION
For necessary expenses for the Railroad Retire-
ment Board for administration of the Railroad Retire-
ment Act and the Railroad Unemployment Insurance
Act, $87,898,000, to be derived in such amounts as de-
termined by the Board from the railroad retirement ac-
counts and from moneys credited to the railroad unem-
ployment insurance administration fund.
LIMITATION ON THE OFFICE OF INSPECTOR GENERAL
For expenses necessary for the Office of Inspector
General for audit, investigatory and review activities, as
authorized by the Inspector General Act of 1978, as
amended, not more than $5,404,000, to be derived from
the railroad retirement accounts and railroad unemploy-
ment insurance account: Provided, That none of the
funds made available in this Act may be transferred to
the Office from the Department of Health and Human
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Services, or used to carry out any such transfer: Provided
further, That none of the funds made available in this
paragraph may be used for any audit, investigation, or
review of the Medicare program.
UNITED STATES INSTITUTE OF PEACE
OPERATING EXPENSES
For necessary expenses of the United States Insti-
tute of Peace as authorized in the United States Institute
of Peace Act, $11,160,000.
TITLE V—GENERAL PROVISIONS
SEC. 501. The Secretaries of Labor, Health and
Human Services, and Education are authorized to trans-
fer unexpended balances of prior appropriations to ac-
counts corresponding to current appropriations provided
in this Act: Provided, That such transferred balances are
used for the same purpose, and for the same periods of
time, for which they were originally appropriated.
SEC. 502. No part of any appropriation contained
in this Act shall remain available for obligation beyond
the current fiscal year unless expressly so provided here-
in.
SEC. 503. (a) No part of any appropriation con-
tained in this Act shall be used, other than for normal
and recognized executive-legislative relationships, for pub-
licity or propaganda purposes, for the preparation, dis-
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tribution, or use of any kit, pamphlet, booklet, publica-
tion, radio, television, or video presentation designed to
support or defeat legislation pending before the Congress,
except in presentation to the Congress itself or any State
legislature, except in presentation to the Congress or any
State legislative body itself.
(b) No part of any appropriation contained in this
Act shall be used to pay the salary or expenses of any
grant or contract recipient, or agent acting for such re-
cipient, related to any activity designed to influence legis-
lation or appropriations pending before the Congress or
any State legislature.
SEC. 504. The Secretaries of Labor and Edu-
cation are each authorized to make available not to ex-
ceed $15,000 from funds available for salaries and ex-
penses under titles I and III, respectively, for official re-
ception and representation expenses; the Director of the
Federal Mediation and Conciliation Service is authorized
to make available for official reception and representation
expenses not to exceed $2,500 from the funds available
for ‘‘Salaries and expenses, Federal Mediation and Con-
ciliation Service’’; and the Chairman of the National Me-
diation Board is authorized to make available for official
reception and representation expenses not to exceed
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$2,500 from funds available for ‘‘Salaries and expenses,
National Mediation Board’’.
SEC. 505. Notwithstanding any other provision of
this Act, no funds appropriated under this Act shall be
used to carry out any program of distributing sterile nee-
dles for the hypodermic injection of any illegal drug un-
less the Secretary of Health and Human Services deter-
mines that such programs are effective in preventing the
spread of HIV and do not encourage the use of illegal
drugs.
SEC. 506. (a) PURCHASE
OF AMERICAN-MADE
EQUIPMENT AND PRODUCTS.—It is the sense of the Con-
gress that, to the greatest extent practicable, all equip-
ment and products purchased with funds made available
in this Act should be American-made.
(b) NOTICE REQUIREMENT.—In providing finan-
cial assistance to, or entering into any contract with, any
entity using funds made available in this Act, the head
of each Federal agency, to the greatest extent prac-
ticable, shall provide to such entity a notice describing
the statement made in subsection (a) by the Congress.
(c) PROHIBITION OF CONTRACTS WITH PERSONS
FALSELY LABELING PRODUCTS AS MADE IN AMERICA.—
If it has been finally determined by a court or Federal
agency that any person intentionally affixed a label bear-
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ing a ‘‘Made in America’’ inscription, or any inscription
with the same meaning, to any product sold in or shipped
to the United States that is not made in the United
States, the person shall be ineligible to receive any con-
tract or subcontract made with funds made available in
this Act, pursuant to the debarment, suspension, and in-
eligibility procedures described in sections 9.400 through
9.409 of title 48, code of Federal Regulations.
SEC. 507. When issuing statements, press re-
leases, requests for proposals, bid solicitations and other
documents describing projects or programs funded in
whole or in part with Federal money, all grantees receiv-
ing Federal funds included in this Act, including but not
limited to State and local governments and recipients of
Federal research grants, shall clearly state (1) the per-
centage of the total costs of the program or project which
will be financed with Federal money, (2) the dollar
amount of Federal funds for the project or program, and
(3) percentage and dollar amount of the total costs of the
project or program that will be financed by nongovern-
mental sources.
SEC. 508. None of the funds appropriated under
this Act shall be expended for any abortion except when
it is made known to the Federal entity or official to
which funds are appropriated under this Act that such
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procedure is necessary to save the life of the mother or
that the pregnancy is the result of an act of rape or in-
cest.
SEC. 509. Notwithstanding any other provision of
law—
(1) no amount may be transferred from an ap-
propriation account for the Departments of Labor,
Health and Human Services, and Education except
as authorized in this or any subsequent appropria-
tion Act, or in the Act establishing the program or
activity for which funds are contained in this Act;
(2) no department, agency, or other entity,
other than the one responsible for administering the
program or activity for which an appropriation is
made in this Act, may exercise authority for the tim-
ing of the obligation and expenditure of such appro-
priation, or for the purpose for which it is obligated
and expended, except to the extent and in the man-
ner otherwise provided in sections 1512 and 1513 of
title 31, United States Code; and
(3) no funds provided under this Act shall be
available for the salary (or any part thereof) of an
employee who is reassigned on a temporary detail
basis to another position in the employing agency or
department or in any other agency or department,
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unless the detail is independently approved by the
head of the employing department of agency.
SEC. 510. None of the funds made available in
this Act may be used for the expenses of an electronic
benefit transfer (EBT) task force.
SEC. 511. None of the funds made available in
this Act may be used to enforce the requirements of sec-
tion 428(b)(1)(U)(iii) of the Higher Education Act of
1965 with respect to any lender when it is made known
to the Federal official having authority to obligate or ex-
pend such funds that the lender has a loan portfolio
under part B of title IV of such Act that is equal to
or less than $5,000,000.
SEC. 512. (a) None of the funds made available
in this Act may be used for—
(1) the creation of a human embryo or embryos
for research purposes; or
(2) research in which a human embryo or em-
bryos are destroyed, discarded, or knowingly sub-
jected to risk of injury or death greater than that
allowed for research on fetuses in utero under 45
CFR 46.208(a)(2) and section 498(b) of the Public
Health Service Act (42 U.S.C. 289g(b)).
(b) For purposes of this section, the term ‘‘human
embryo or embryos’’ include any organism, not protected
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as a human subject under 45 CFR 46 as of the date of
the enactment of this Act, that is derived by fertilization,
parthenogenesis, cloning, or any other means from one or
more human gametes.
SEC. 513. (a) LIMITATION ON USE OF FUNDS
FOR PROMOTION
OF LEGALIZATION
OF CONTROLLED
SUBSTANCES.—None of the funds made available in this
Act may be used for any activity when it is made known
to the Federal official having authority to obligate or ex-
pend such funds that the activity promotes the legaliza-
tion of any drug or other substance included in schedule
I of the schedules of controlled substances established by
section 202 of the Controlled Substances Act (21 U.S.C.
812).
(b) EXCEPTIONS.—The limitation in subsection
(a) shall not apply when it is made known to the Federal
official having authority to obligate or expend such funds
that there is significant medical evidence of a therapeutic
advantage to the use of such drug or other substance or
that Federally-sponsored clinical trials are being con-
ducted to determine therapeutic advantage.
SEC. 514. (a) DENIAL OF FUNDS FOR PREVENT-
ING ROTC ACCESS
TO CAMPUS.—None of the funds
made available in this or any other Departments of
Labor, Health and Human Services, and Education, and
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Related Agencies Appropriations Act for any fiscal year
may be provided by contract or by grant (including a
grant of funds to be available for student aid) to a cov-
ered educational entity if the Secretary of Defense deter-
mines that the covered educational entity has a policy or
practice (regardless of when implemented) that either
prohibits, or in effect prevents—
(1) the maintaining, establishing, or operation
of a unit of the Senior Reserve Officer Training
Corps (in accordance with section 654 of title 10,
United States Code, and other applicable Federal
laws) at the covered educational entity; or
(2) a student at the covered educational entity
from enrolling in a unit of the Senior Reserve Offi-
cer Training Corps at another institution of higher
education.
(b) DENIAL OF FUNDS FOR PREVENTING FED-
ERAL MILITARY RECRUITING ON CAMPUS.—None of the
funds made available in this or any other Departments
of Labor, Health and Human Services, and Education,
and Related Agencies Appropriations Act for any fiscal
year may be provided by contract or by grant (including
a grant of funds to be available for student aid) to a cov-
ered educational entity if the Secretary of Defense deter-
mines that the covered educational entity has a policy or
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practice (regardless of when implemented) that either
prohibits, or in effect prevents—
(1) entry to campuses, or access to students
(who are 17 years of age or older) on campuses, for
purposes of Federal military recruiting; or
(2) access by military recruiters for purposes of
Federal military recruiting to the following informa-
tion pertaining to students (who are 17 years of age
or older) enrolled at the covered educational entity:
(A) student names, addresses, and tele-
phone listings; and
(B) if known, student ages, levels of edu-
cation, and majors.
(c) EXCEPTIONS.—The limitation established in
subsection (a) or (b) shall not apply to a covered edu-
cational entity if the Secretary of Defense determines
that—
(1) the covered educational entity has ceased
the policy or practice described in such subsection;
(2) the institution of higher education involved
has a longstanding policy of pacifism based on his-
torical religious affiliation; or
(3) the institution of higher education involved
is prohibited by the law of any State, or by the order
of any State court, from allowing Senior Reserve Of-
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ficer Training Corps activities or Federal military
recruiting on campus, except that this paragraph
shall apply only during the one-year period begin-
ning on the effective date of this section.
(d) NOTICE OF DETERMINATIONS.—Whenever the
Secretary of Defense makes a determination under sub-
section (a), (b), or (c), the Secretary—
(1) shall transmit a notice of the determination
to the Secretary of Education and to the Congress;
and
(2) shall publish in the Federal Register a no-
tice of the determination and the effect of the deter-
mination on the eligibility of the covered educational
entity for contracts and grants.
(e) SEMIANNUAL
NOTICE
IN
FEDERAL
REG-
ISTER.—The Secretary of Defense shall publish in the
Federal Register once every 6 months a list of each cov-
ered educational entity that is currently ineligible for con-
tracts and grants by reason of a determination of the
Secretary under subsection (a) or (b).
(f) COVERED EDUCATIONAL ENTITY.—For pur-
poses of this section, the term ‘‘covered educational en-
tity’’ means an institution of higher education, or a sub-
element of an institution of higher education.
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to the Federal official having authority to obligate or ex-
pend such funds that—
(1) such entity is otherwise a contractor with
the United States and is subject to the requirement
in section 4212(d) of title 38, United States Code,
regarding submission of an annual report to the Sec-
retary of Labor concerning employment of certain
veterans; and
(2) such entity has not submitted a report as
required by that section for the most recent year for
which such requirement was applicable to such en-
tity.
SEC. 517. (a) Notwithstanding any provision of
the Carl D. Perkins Vocational and Applied Technology
Act (as such Act was in effect on September 24, 1990),
a State shall be deemed to have met the requirements of
section 503 of such Act with respect to decisions ap-
pealed by applications filed on April 30, 1993 and Octo-
ber 29, 1993 under section 452(b) of the General Edu-
cation Provisions Act.
(b) Subsection (a) shall take effect on October 1,
1996.
SEC. 518. None of the funds appropriated in this
Act may be made available to any entity under title X
of the Public Health Service Act unless it is made known
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to the Federal official having authority to obligate or ex-
pend such funds that the applicant for the award certifies
to the Secretary that it encourages family participation
in the decision of the minor to seek family planning serv-
ices.
SEC. 519. Of the budgetary resources available to
agencies in this Act for salaries and expenses during fis-
cal year 1997, $30,500,000, to be allocated by the Office
of Management and Budget, are permanently canceled:
Provided, That the foregoing provision shall not apply to
the Food and Drug Administration and the Indian
Health Service: Provided further, That amounts available
in this Act for congressional and legislative affairs, public
affairs, and intergovernmental affairs activities are here-
by reduced by $2,000,000.
SEC. 520. VOLUNTARY SEPARATION INCENTIVES
FOR EMPLOYEES OF CERTAIN FEDERAL AGENCIES.—(a)
DEFINITIONS.—For the purposes of this section—
(1) the term ‘‘agency’’ means the Railroad Re-
tirement Board and the Office of Inspector General
of the Railroad Retirement Board;
(2) the term ‘‘employee’’ means an employee
(as defined by section 2105 of title 5, United States
Code) who is employed by an agency, is serving
under an appointment without time limitation, and
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has been currently employed for a continuous period
of at least 3 years, but does not include—
(A) a reemployed annuitant under sub-
chapter III of chapter 83 or chapter 84 of title
5, United States Code, or another retirement
system for employees of the agency;
(B) an employee having a disability on the
basis of which such employee is or would be eli-
gible for disability retirement under subchapter
III of chapter 83 or chapter 84 of title 5, Unit-
ed States Code, or another retirement system
for employees of the agency;
(C) an employee who is in receipt of a spe-
cific notice of involuntary separation for mis-
conduct or unacceptable performance;
(D) an employee who, upon completing an
additional period of service as referred to in
section 3(b)(2)(B)(ii) of the Federal Workforce
Restructuring Act of 1994 (5 U.S.C. 5597
note), would qualify for a voluntary separation
incentive payment under section 3 of such Act;
(E) an employee who has previously re-
ceived any voluntary separation incentive pay-
ment by the Federal Government under this
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section or any other authority and has not re-
paid such payment;
(F) an employee covered by statutory re-
employment rights who is on transfer to an-
other organization; or
(G) any employee who, during the twenty-
four-month period preceding the date of separa-
tion, has received a recruitment or relocation
bonus under section 5753 of title 5, United
States Code, or who, within the twelve-month
period preceding the date of separation, re-
ceived a retention allowance under section 5754
of title 5, United States Code.
(b) AGENCY STRATEGIC PLAN.—
(1) IN GENERAL.—The three-member Railroad
Retirement Board, prior to obligating any resources
for voluntary separation incentive payments, shall
submit to the House and Senate Committees on Ap-
propriations and the Committee on Governmental
Affairs of the Senate and the Committee on Govern-
ment Reform and Oversight of the House of Rep-
resentatives a strategic plan outlining the intended
use of such incentive payments and a proposed orga-
nizational chart for the agency once such incentive
payments have been completed.
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(2) CONTENTS.—The agency’s plan shall in-
clude—
(A) the positions and functions to be re-
duced or eliminated, identified by organizational
unit, geographic location, occupational category
and grade level;
(B) the number and amounts of voluntary
separation incentive payments to be offered;
and
(C) a description of how the agency will
operate without the eliminated positions and
functions.
(c) AUTHORITY TO PROVIDE VOLUNTARY SEPA-
RATION INCENTIVE PAYMENTS.—
(1) IN GENERAL.—A voluntary separation in-
centive payment under this section may be paid by
an agency to any employee only to the extent nec-
essary to eliminate the positions and functions iden-
tified by the strategic plan.
(2) AMOUNT AND TREATMENT OF PAYMENTS.—
A voluntary separation incentive payment—
(A) shall be paid in a lump sum after the
employee’s separation;
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(B) shall be paid from appropriations or
funds available for the payment of the basic pay
of the employees;
(C) shall be equal to the lesser of—
(i) an amount equal to the amount
the employee would be entitled to receive
under section 5595(c) of title 5, United
States Code; or
(ii) an amount determined by the
agency head not to exceed $25,000;
(D) may not be made except in the case of
any qualifying employee who voluntarily sepa-
rates (whether by retirement or resignation) be-
fore September 30, 1997;
(E) shall not be a basis for payment, and
shall not be included in the computation, of any
other type of Government benefit; and
(F) shall not be taken into account in de-
termining the amount of any severance pay to
which the employee may be entitled under sec-
tion 5595 of title 5, United States Code, based
on any other separation.
(d) ADDITIONAL
AGENCY
CONTRIBUTIONS
TO
THE RETIREMENT FUND.—
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(1) IN
GENERAL.—In addition to any other
payments which it is required to make under sub-
chapter III of chapter 83 of title 5, United States
Code, an agency shall remit to the Office of Person-
nel Management for deposit in the Treasury of the
United States to the credit of the Civil Service Re-
tirement and Disability Fund an amount equal to 15
percent of the final basic pay of each employee of
the agency who is covered under subchapter III of
chapter 83 or chapter 84 of title 5, United States
Code, to whom a voluntary separation incentive has
been paid under this section.
(2) DEFINITION.—For the purpose of para-
graph (1), the term ‘‘final basic pay’’, with respect
to an employee, means the total amount of basic pay
which would be payable for a year of service by such
employee, computed using the employee’s final rate
of basic pay, and if last serving on other than a full-
time basis, with appropriate adjustment therefor.
(e) EFFECT
OF
SUBSEQUENT
EMPLOYMENT
WITH THE GOVERNMENT.—An individual who has re-
ceived a voluntary separation incentive payment under
this section and accepts any employment for compensa-
tion with the Government of the United States, or who
works for any agency of the United States Government
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through a personal services contract, within 5 years after
the date of the separation on which the payment is based
shall be required to pay, prior to the individual’s first day
of employment, the entire amount of the incentive pay-
ment to the agency that paid the incentive payment.
(f) REDUCTION OF AGENCY EMPLOYMENT LEV-
ELS.—
(1) IN GENERAL.—The total number of funded
employee positions in the agency shall be reduced by
one position for each vacancy created by the separa-
tion of any employee who has received, or is due to
receive, a voluntary separation incentive payment
under this section. For the purposes of this sub-
section, positions shall be counted on a full-time-
equivalent basis.
(2) ENFORCEMENT.—The President, through
the Office of Management and Budget, shall monitor
the agency and take any action necessary to ensure
that the requirements of this subsection are met.
(g) EFFECTIVE DATE.—This section shall take ef-
fect October 1, 1996.
SEC. 521. CORRECTION OF EFFECTIVE DATE.—
Effective on the day after the date of enactment of the
Health Centers Consolidation Act of 1996, section 5 of
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that Act is amended by striking ‘‘October 1, 1997’’ and
inserting ‘‘October 1, 1996’’.
TITLE VI—REORGANIZATION AND PRIVATIZA-
TION OF SALLIE MAE AND CONNIE LEE
SEC. 601. SHORT TITLE.
This title may be cited as the ‘‘Student Loan Market-
ing Association Reorganization Act of 1996’’.
SEC. 602. REORGANIZATION OF THE STUDENT LOAN MAR-
KETING ASSOCIATION THROUGH THE FOR-
MATION OF A HOLDING COMPANY.
(a) AMENDMENT.—Part B of title IV of the Higher
Education Act of 1965 (20 U.S.C. 1071 et seq.) is amend-
ed by inserting after section 439 (20 U.S.C. 1087–2) the
following new section:
‘‘SEC. 440. REORGANIZATION OF THE STUDENT LOAN MAR-
KETING ASSOCIATION THROUGH THE FOR-
MATION OF A HOLDING COMPANY.
‘‘(a) ACTIONS BY THE ASSOCIATION’S BOARD OF DI-
RECTORS.—The Board of Directors of the Association
shall take or cause to be taken all such action as the Board
of Directors deems necessary or appropriate to effect,
upon the shareholder approval described in subsection (b),
a restructuring of the common stock ownership of the As-
sociation, as set forth in a plan of reorganization adopted
by the Board of Directors (the terms of which shall be
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consistent with this section) so that all of the outstanding
common shares of the Association shall be directly owned
by a Holding Company. Such actions may include, in the
Board of Director’s discretion, a merger of a wholly owned
subsidiary of the Holding Company with and into the As-
sociation, which would have the effect provided in the plan
of reorganization and the law of the jurisdiction in which
such subsidiary is incorporated. As part of the restructur-
ing, the Board of Directors may cause—
‘‘(1) the common shares of the Association to
be converted, on the reorganization effective date, to
common shares of the Holding Company on a one
for one basis, consistent with applicable State or
District of Columbia law; and
‘‘(2) Holding Company common shares to be
registered with the Securities and Exchange Com-
mission.
‘‘(b) SHAREHOLDER APPROVAL.—The plan of reor-
ganization adopted by the Board of Directors pursuant to
subsection (a) shall be submitted to common shareholders
of the Association for their approval. The reorganization
shall occur on the reorganization effective date, provided
that the plan of reorganization has been approved by the
affirmative votes, cast in person or by proxy, of the holders
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of a majority of the issued and outstanding shares of the
Association common stock.
‘‘(c) TRANSITION.—In the event the shareholders of
the Association approve the plan of reorganization under
subsection (b), the following provisions shall apply begin-
ning on the reorganization effective date:
‘‘(1) IN GENERAL.—Except as specifically pro-
vided in this section, until the dissolution date the
Association shall continue to have all of the rights,
privileges and obligations set forth in, and shall be
subject to all of the limitations and restrictions of,
section 439, and the Association shall continue to
carry out the purposes of such section. The Holding
Company and any subsidiary of the Holding Com-
pany (other than the Association) shall not be enti-
tled to any of the rights, privileges, and obligations,
and shall not be subject to the limitations and re-
strictions, applicable to the Association under section
439, except as specifically provided in this section.
The Holding Company and any subsidiary of the
Holding Company (other than the Association or a
subsidiary of the Association) shall not purchase
loans insured under this Act until such time as the
Association ceases acquiring such loans, except that
the Holding Company may purchase such loans if
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the Association is merely continuing to acquire loans
as a lender of last resort pursuant to section 439(q)
or under an agreement with the Secretary described
in paragraph (6).
‘‘(2) TRANSFER OF CERTAIN PROPERTY.—
‘‘(A) IN GENERAL.—Except as provided in
this section, on the reorganization effective date
or as soon as practicable thereafter, the Asso-
ciation shall use the Association’s best efforts to
transfer to the Holding Company or any sub-
sidiary of the Holding Company (or both), as
directed by the Holding Company, all real and
personal property of the Association (both tan-
gible and intangible) other than the remaining
property. Subject to the preceding sentence,
such transferred property shall include all right,
title, and interest in—
‘‘(i) direct or indirect subsidiaries of
the Association (excluding special purpose
funding companies in existence on the date
of enactment of this section and any inter-
est in any government-sponsored enter-
prise);
‘‘(ii) contracts, leases, and other
agreements of the Association;
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‘‘(iii) licenses and other intellectual
property of the Association; and
‘‘(iv) any other property of the Asso-
ciation.
‘‘(B) CONSTRUCTION.—Nothing in this
paragraph shall be construed to prohibit the As-
sociation from transferring remaining property
from time to time to the Holding Company or
any subsidiary of the Holding Company, subject
to the provisions of paragraph (4).
‘‘(3) TRANSFER OF PERSONNEL.—On the reor-
ganization effective date, employees of the Associa-
tion shall become employees of the Holding Com-
pany (or any subsidiary of the Holding Company),
and the Holding Company (or any subsidiary of the
Holding Company) shall provide all necessary and
appropriate management and operational support
(including loan servicing) to the Association, as re-
quested by the Association. The Association, how-
ever, may obtain such management and operational
support from persons or entities not associated with
the Holding Company.
‘‘(4) DIVIDENDS.—The Association may pay
dividends in the form of cash or noncash distribu-
tions so long as at the time of the declaration of
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such dividends, after giving effect to the payment of
such dividends as of the date of such declaration by
the Board of Directors of the Association, the Asso-
ciation’s capital would be in compliance with the
capital standards and requirements set forth in sec-
tion 439(r). If, at any time after the reorganization
effective date, the Association fails to comply with
such capital standards, the Holding Company shall
transfer with due diligence to the Association addi-
tional capital in such amounts as are necessary to
ensure that the Association again complies with the
capital standards.
‘‘(5) CERTIFICATION
PRIOR
TO
DIVIDEND.—
Prior to the payment of any dividend under para-
graph (4), the Association shall certify to the Sec-
retary of the Treasury that the payment of the divi-
dend will be made in compliance with paragraph (4)
and shall provide copies of all calculations needed to
make such certification.
‘‘(6) RESTRICTIONS ON NEW BUSINESS ACTIV-
ITY OR ACQUISITION OF ASSETS BY ASSOCIATION.—
‘‘(A) IN GENERAL.—After the reorganiza-
tion effective date, the Association shall not en-
gage in any new business activities or acquire
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any additional program assets described in sec-
tion 439(d) other than in connection with—
‘‘(i) student loan purchases through
September 30, 2007;
‘‘(ii) contractual commitments for fu-
ture warehousing advances, or pursuant to
letters of credit or standby bond purchase
agreements, which are outstanding as of
the reorganization effective date;
‘‘(iii) the Association serving as a
lender-of-last-resort pursuant to section
439(q); and
‘‘(iv) the Association’s purchase of
loans insured under this part, if the Sec-
retary, with the approval of the Secretary
of the Treasury, enters into an agreement
with the Association for the continuation
or resumption of the Association’s second-
ary market purchase program because the
Secretary determines there is inadequate
liquidity for loans made under this part.
‘‘(B) AGREEMENT.—The Secretary is au-
thorized to enter into an agreement described in
clause (iv) of subparagraph (A) with the Asso-
ciation covering such secondary market activi-
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ties. Any agreement entered into under such
clause shall cover a period of 12 months, but
may be renewed if the Secretary determines
that liquidity remains inadequate. The fee pro-
vided under section 439(h)(7) shall not apply to
loans acquired under any such agreement with
the Secretary.
‘‘(7) ISSUANCE OF DEBT OBLIGATIONS DURING
THE TRANSITION PERIOD; ATTRIBUTES OF DEBT OB-
LIGATIONS.—After the reorganization effective date,
the Association shall not issue debt obligations which
mature later than September 30, 2008, except in
connection with serving as a lender-of-last-resort
pursuant to section 439(q) or with purchasing loans
under an agreement with the Secretary as described
in paragraph (6). Nothing in this section shall mod-
ify the attributes accorded the debt obligations of
the Association by section 439, regardless of whether
such debt obligations are incurred prior to, or at any
time following, the reorganization effective date or
are transferred to a trust in accordance with sub-
section (d).
‘‘(8) MONITORING
OF
SAFETY
AND
SOUND-
NESS.—
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‘‘(A) OBLIGATION TO OBTAIN, MAINTAIN,
AND REPORT INFORMATION.—The Association
shall obtain such information and make and
keep such records as the Secretary of the
Treasury may from time to time prescribe con-
cerning—
‘‘(i) the financial risk to the Associa-
tion resulting from the activities of any as-
sociated person, to the extent such activi-
ties are reasonably likely to have a mate-
rial impact on the financial condition of
the Association, including the Association’s
capital ratio, the Association’s liquidity, or
the Association’s ability to conduct and fi-
nance the Association’s operations; and
‘‘(ii) the Association’s policies, proce-
dures, and systems for monitoring and
controlling any such financial risk.
‘‘(B) SUMMARY REPORTS.—The Secretary
of the Treasury may require summary reports
of the information described in subparagraph
(A) to be filed no more frequently than quar-
terly. If, as a result of adverse market condi-
tions or based on reports provided pursuant to
this subparagraph or other available informa-
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tion, the Secretary of the Treasury has con-
cerns regarding the financial or operational con-
dition of the Association, the Secretary of the
Treasury may, notwithstanding the preceding
sentence and subparagraph (A), require the As-
sociation to make reports concerning the activi-
ties of any associated person whose business ac-
tivities are reasonably likely to have a material
impact on the financial or operational condition
of the Association.
‘‘(C) SEPARATE OPERATION OF CORPORA-
TIONS.—
‘‘(i) IN GENERAL.—The funds and as-
sets of the Association shall at all times be
maintained separately from the funds and
assets of the Holding Company or any sub-
sidiary of the Holding Company and may
be used by the Association solely to carry
out the Association’s purposes and to fulfill
the Association’s obligations.
‘‘(ii) BOOKS AND RECORDS.—The As-
sociation shall maintain books and records
that clearly reflect the assets and liabilities
of the Association, separate from the as-
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sets and liabilities of the Holding Company
or any subsidiary of the Holding Company.
‘‘(iii) CORPORATE OFFICE.—The As-
sociation shall maintain a corporate office
that is physically separate from any office
of the Holding Company or any subsidiary
of the Holding Company.
‘‘(iv) DIRECTOR.—No director of the
Association who is appointed by the Presi-
dent pursuant to section 439(c)(1)(A) may
serve as a director of the Holding Com-
pany.
‘‘(v) ONE OFFICER REQUIREMENT.—
At least one officer of the Association shall
be an officer solely of the Association.
‘‘(vi) 
TRANSACTIONS.—Transactions
between the Association and the Holding
Company or any subsidiary of the Holding
Company, including any loan servicing ar-
rangements, shall be on terms no less fa-
vorable to the Association than the Asso-
ciation could obtain from an unrelated
third party offering comparable services.
‘‘(vii) 
CREDIT
PROHIBITION.—The
Association shall not extend credit to the
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Holding Company or any subsidiary of the
Holding Company nor guarantee or pro-
vide any credit enhancement to any debt
obligations of the Holding Company or any
subsidiary of the Holding Company.
‘‘(viii) AMOUNTS
COLLECTED.—Any
amounts collected on behalf of the Associa-
tion by the Holding Company or any sub-
sidiary of the Holding Company with re-
spect to the assets of the Association, pur-
suant to a servicing contract or other ar-
rangement between the Association and the
Holding Company or any subsidiary of the
Holding Company, shall be collected solely
for the benefit of the Association and shall
be immediately deposited by the Holding
Company or such subsidiary to an account
under the sole control of the Association.
‘‘(D) ENCUMBRANCE
OF
ASSETS.—Not-
withstanding any Federal or State law, rule, or
regulation, or legal or equitable principle, doc-
trine, or theory to the contrary, under no cir-
cumstances shall the assets of the Association
be available or used to pay claims or debts of
or incurred by the Holding Company. Nothing
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in this subparagraph shall be construed to limit
the right of the Association to pay dividends
not otherwise prohibited under this subpara-
graph or to limit any liability of the Holding
Company explicitly provided for in this section.
‘‘(E) HOLDING
COMPANY
ACTIVITIES.—
After the reorganization effective date and prior
to the dissolution date, all business activities of
the Holding Company shall be conducted
through subsidiaries of the Holding Company.
‘‘(F) CONFIDENTIALITY.—Any information
provided by the Association pursuant to this
section shall be subject to the same confiden-
tiality 
obligations 
contained 
in 
section
439(r)(12).
‘‘(G) DEFINITION.—For purposes of this
paragraph, the term ‘associated person’ means
any person, other than a natural person, who is
directly or indirectly controlling, controlled by,
or under common control with, the Association.
‘‘(9) ISSUANCE OF STOCK WARRANTS.—
‘‘(A) IN GENERAL.—On the reorganization
effective date, the Holding Company shall issue
to the District of Columbia Financial Respon-
sibility and Management Assistance Authority a
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number of stock warrants that is equal to one
percent of the outstanding shares of the Asso-
ciation, determined as of the last day of the fis-
cal quarter preceding the date of enactment of
this section, with each stock warrant entitling
the holder of the stock warrant to purchase
from the Holding Company one share of the
registered common stock of the Holding Com-
pany or the Holding Company’s successors or
assigns, at any time on or before September 30,
2008. The exercise price for such warrants shall
be an amount equal to the average closing price
of the common stock of the Association for the
20 business days prior to the date of enactment
of this section on the exchange or market which
is then the primary exchange or market for the
common stock of the Association. The number
of shares of Holding Company common stock
subject to each stock warrant and the exercise
price of each stock warrant shall be adjusted as
necessary to reflect—
‘‘(i) the conversion of Association
common stock into Holding Company com-
mon stock as part of the plan of reorga-
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nization approved by the Association’s
shareholders; and
‘‘(ii) any issuance or sale of stock (in-
cluding issuance or sale of treasury stock),
stock split, recapitalization, reorganization,
or other corporate event, if agreed to by
the Secretary of the Treasury and the As-
sociation.
‘‘(B) AUTHORITY TO SELL OR EXERCISE
STOCK WARRANTS; DEPOSIT OF PROCEEDS.—
The District of Columbia Financial Responsibil-
ity and Management Assistance Authority is
authorized to sell or exercise the stock warrants
described in subparagraph (A). The District of
Columbia Financial Responsibility and Manage-
ment Assistance Authority shall deposit into the
account established under section 3(e) of the
Student Loan Marketing Association Reorga-
nization Act of 1996 amounts collected from
the sale and proceeds resulting from the exer-
cise of the stock warrants pursuant to this sub-
paragraph.
‘‘(10) RESTRICTIONS ON TRANSFER OF ASSO-
CIATION
SHARES
AND
BANKRUPTCY
OF
ASSOCIA-
TION.—After the reorganization effective date, the
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Holding Company shall not sell, pledge, or otherwise
transfer the outstanding shares of the Association,
or agree to or cause the liquidation of the Associa-
tion or cause the Association to file a petition for
bankruptcy under title 11, United States Code, with-
out prior approval of the Secretary of the Treasury
and the Secretary of Education.
‘‘(d) TERMINATION OF THE ASSOCIATION.—In the
event the shareholders of the Association approve a plan
of reorganization under subsection (b), the Association
shall dissolve, and the Association’s separate existence
shall terminate on September 30, 2008, after discharge
of all outstanding debt obligations and liquidation pursu-
ant to this subsection. The Association may dissolve pur-
suant to this subsection prior to such date by notifying
the Secretary of Education and the Secretary of the
Treasury of the Association’s intention to dissolve, unless
within 60 days after receipt of such notice the Secretary
of Education notifies the Association that the Association
continues to be needed to serve as a lender of last resort
pursuant to section 439(q) or continues to be needed to
purchase loans under an agreement with the Secretary de-
scribed in subsection (c)(6). On the dissolution date, the
Association shall take the following actions:
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‘‘(1) ESTABLISHMENT OF A TRUST.—The Asso-
ciation shall, under the terms of an irrevocable trust
agreement that is in form and substance satisfactory
to the Secretary of the Treasury, the Association
and the appointed trustee, irrevocably transfer all
remaining obligations of the Association to the trust
and irrevocably deposit or cause to be deposited into
such trust, to be held as trust funds solely for the
benefit of holders of the remaining obligations,
money or direct noncallable obligations of the United
States or any agency thereof for which payment the
full faith and credit of the United States is pledged,
maturing as to principal and interest in such
amounts and at such times as are determined by the
Secretary of the Treasury to be sufficient, without
consideration of any significant reinvestment of such
interest, to pay the principal of, and interest on, the
remaining obligations in accordance with their
terms. To the extent the Association cannot provide
money or qualifying obligations in the amount re-
quired, the Holding Company shall be required to
transfer money or qualifying obligations to the trust
in the amount necessary to prevent any deficiency.
‘‘(2) USE OF TRUST ASSETS.—All money, obli-
gations, or financial assets deposited into the trust
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Company nor any subsidiary of the Holding
Company is a government-sponsored enterprise
or instrumentality of the United States.
‘‘(f) STRICT CONSTRUCTION.—Except as specifically
set forth in this section, nothing in this section shall be
construed to limit the authority of the Association as a
federally chartered corporation, or of the Holding Com-
pany as a State or District of Columbia chartered corpora-
tion.
‘‘(g) RIGHT TO ENFORCE.—The Secretary of Edu-
cation or the Secretary of the Treasury, as appropriate,
may request that the Attorney General bring an action
in the United States District Court for the District of Co-
lumbia for the enforcement of any provision of this sec-
tion, or may, under the direction or control of the Attorney
General, bring such an action. Such court shall have juris-
diction and power to order and require compliance with
this section.
‘‘(h) DEADLINE FOR REORGANIZATION EFFECTIVE
DATE.—This section shall be of no further force and effect
in the event that the reorganization effective date does not
occur on or before 18 months after the date of enactment
of this section.
‘‘(i) DEFINITIONS.—For purposes of this section:
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‘‘(1) ASSOCIATION.—The term ‘Association’
means the Student Loan Marketing Association.
‘‘(2) DISSOLUTION DATE.—The term ‘dissolu-
tion date’ means September 30, 2008, or such ear-
lier date as the Secretary of Education permits the
transfer of remaining obligations in accordance with
subsection (d).
‘‘(3) HOLDING COMPANY.—The term ‘Holding
Company’ means the new business corporation es-
tablished pursuant to this section by the Association
under the laws of any State of the United States or
the District of Columbia for the purposes of the re-
organization and restructuring described in sub-
section (a).
‘‘(4) REMAINING OBLIGATIONS.—The term ‘re-
maining obligations’ means the debt obligations of
the Association outstanding as of the dissolution
date.
‘‘(5) REMAINING
PROPERTY.—The term ‘re-
maining property’ means the following assets and li-
abilities of the Association which are outstanding as
of the reorganization effective date:
‘‘(A) Debt obligations issued by the Asso-
ciation.
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‘‘(B) Contracts relating to interest rate,
currency, or commodity positions or protections.
‘‘(C) Investment securities owned by the
Association.
‘‘(D) Any instruments, assets, or agree-
ments described in section 439(d) (including,
without limitation, all student loans and agree-
ments relating to the purchase and sale of stu-
dent loans, forward purchase and lending com-
mitments, warehousing advances, academic fa-
cilities obligations, letters of credit, standby
bond purchase agreements, liquidity agree-
ments, and student loan revenue bonds or other
loans).
‘‘(E) Except as specifically prohibited by
this section or section 439, any other nonmate-
rial assets or liabilities of the Association which
the Association’s Board of Directors determines
to be necessary or appropriate to the Associa-
tion’s operations.
‘‘(6) REORGANIZATION.—The term ‘reorganiza-
tion’ means the restructuring event or events (in-
cluding any merger event) giving effect to the Hold-
ing Company structure described in subsection (a).
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‘‘(7) REORGANIZATION EFFECTIVE DATE.—The
term ‘reorganization effective date’ means the effec-
tive date of the reorganization as determined by the
Board of Directors of the Association, which shall
not be earlier than the date that shareholder ap-
proval is obtained pursuant to subsection (b) and
shall not be later than the date that is 18 months
after the date of enactment of this section.
‘‘(8) 
SUBSIDIARY.—The 
term 
‘subsidiary’
means one or more direct or indirect subsidiaries.’’.
(b) TECHNICAL AMENDMENTS.—
(1) ELIGIBLE LENDER.—
(A) AMENDMENTS TO THE HIGHER EDU-
CATION ACT.—
(i) DEFINITION OF ELIGIBLE LEND-
ER.—Section 435(d)(1)(F) of the Higher
Education 
Act 
of 
1965 
(20 
U.S.C.
1085(d)(1)(F)) is amended by inserting
after ‘‘Student Loan Marketing Associa-
tion’’ the following: ‘‘or the Holding Com-
pany of the Student Loan Marketing Asso-
ciation, including any subsidiary of the
Holding Company, created pursuant to
section 440,’’.
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(ii) DEFINITION OF ELIGIBLE LEND-
ER
AND
FEDERAL
CONSOLIDATION
LOANS.—Sections 
435(d)(1)(G) 
and
428C(a)(1)(A) of such Act (20 U.S.C.
1085(d)(1)(G) and 1078–3(a)(1)(A)) are
each amended by inserting after ‘‘Student
Loan Marketing Association’’ the follow-
ing: ‘‘or the Holding Company of the Stu-
dent Loan Marketing Association, includ-
ing any subsidiary of the Holding Com-
pany, created pursuant to section 440’’.
(B) EFFECTIVE DATE.—The amendments
made by this paragraph shall take effect on the
reorganization effective date as defined in sec-
tion 440(h) of the Higher Education Act of
1965 (as added by subsection (a)).
(2) ENFORCEMENT
OF
SAFETY
AND
SOUND-
NESS REQUIREMENTS.—Section 439(r) of the High-
er Education Act of 1965 (20 U.S.C. 1087–2(r)) is
amended—
(A) in the first sentence of paragraph (12),
by inserting ‘‘or the Association’s associated
persons’’ after ‘‘by the Association’’;
(B) by redesignating paragraph (13) as
paragraph (15); and
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(C) by inserting after paragraph (12) the
following new paragraph:
‘‘(13) ENFORCEMENT OF SAFETY AND SOUND-
NESS REQUIREMENTS.—The Secretary of Education
or the Secretary of the Treasury, as appropriate,
may request that the Attorney General bring an ac-
tion in the United States District Court for the Dis-
trict of Columbia for the enforcement of any provi-
sion of this section, or may, under the direction or
control of the Attorney General, bring such an ac-
tion. Such court shall have jurisdiction and power to
order and require compliance with this section.’’.
(3) FINANCIAL SAFETY AND SOUNDNESS.—Sec-
tion 439(r) of the Higher Education Act of 1965
(20 U.S.C. 1087–2(r)) is further amended—
(A) in paragraph (1)—
(i) by striking ‘‘and’’ at the end of
subparagraph (A);
(ii) by striking the period at the end
of subparagraph (B) and inserting ‘‘;
and’’; and
(iii) by adding at the end the follow-
ing new subparagraph:
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whether the requirements of this section and
section 440 are being met.’’; and
(ii) by adding at the end the following
new subparagraph:
‘‘(D) ANNUAL ASSESSMENT.—
‘‘(i) IN
GENERAL.—For each fiscal year
beginning on or after October 1, 1996, the Sec-
retary of the Treasury may establish and collect
from the Association an assessment (or assess-
ments) in amounts sufficient to provide for rea-
sonable costs and expenses of carrying out the
duties of the Secretary of the Treasury under
this section and section 440 during such fiscal
year. In no event may the total amount so as-
sessed exceed, for any fiscal year, $800,000, ad-
justed for each fiscal year ending after Septem-
ber 30, 1997, by the ratio of the Consumer
Price Index for All Urban Consumers (issued
by the Bureau of Labor Statistics) for the final
month of the fiscal year preceding the fiscal
year for which the assessment is made to the
Consumer Price Index for All Urban Consum-
ers for September 1997.
‘‘(ii) DEPOSIT.—Amounts collected from
assessments under this subparagraph shall be
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deposited in an account within the Treasury of
the United States as designated by the Sec-
retary of the Treasury for that purpose. The
Secretary of the Treasury is authorized and di-
rected to pay out of any funds available in such
account the reasonable costs and expenses of
carrying out the duties of the Secretary of the
Treasury under this section and section 440.
None of the funds deposited into such account
shall be available for any purpose other than
making payments for such costs and ex-
penses.’’; and
(C) by inserting after paragraph (13) (as
added by paragraph (2)(C)) the following new
paragraph:
‘‘(14) ACTIONS BY SECRETARY.—
‘‘(A) IN GENERAL.—For any fiscal quarter
ending after January 1, 2000, the Association
shall have a capital ratio of at least 2.25 per-
cent. The Secretary of the Treasury may, when-
ever such capital ratio is not met, take any one
or more of the actions described in paragraph
(7), except that—
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‘‘(i) the capital ratio to be restored
pursuant to paragraph (7)(D) shall be
2.25 percent; and
‘‘(ii) if the relevant capital ratio is in
excess of or equal to 2 percent for such
quarter, the Secretary of the Treasury
shall defer taking any of the actions set
forth in paragraph (7) until the next suc-
ceeding quarter and may then proceed with
any such action only if the capital ratio of
the Association remains below 2.25 per-
cent.
‘‘(B) APPLICABILITY.—The provisions of
paragraphs (4), (5), (6), (8), (9), (10), and
(11) shall be of no further application to the
Association for any period after January 1,
2000.’’.
(4) INFORMATION
REQUIRED; DIVIDENDS.—
Section 439(r) of the Higher Education Act of 1965
(20 U.S.C. 1087–2(r)) is further amended—
(A) by adding at the end of paragraph (2)
(as amended in paragraph (3)(B)(ii)) the fol-
lowing new subparagraph:
‘‘(E) OBLIGATION TO OBTAIN, MAINTAIN, AND
REPORT INFORMATION.—
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‘‘(i) IN GENERAL.—The Association shall
obtain such information and make and keep
such records as the Secretary of the Treasury
may from time to time prescribe concerning—
‘‘(I) the financial risk to the Associa-
tion resulting from the activities of any as-
sociated person, to the extent such activi-
ties are reasonably likely to have a mate-
rial impact on the financial condition of
the Association, including the Association’s
capital ratio, the Association’s liquidity, or
the Association’s ability to conduct and fi-
nance the Association’s operations; and
‘‘(II) the Association’s policies, proce-
dures, and systems for monitoring and
controlling any such financial risk.
‘‘(ii) SUMMARY REPORTS.—The Secretary
of the Treasury may require summary reports
of such information to be filed no more fre-
quently than quarterly. If, as a result of ad-
verse market conditions or based on reports
provided pursuant to this subparagraph or
other available information, the Secretary of the
Treasury has concerns regarding the financial
or operational condition of the Association, the
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Secretary of the Treasury may, notwithstanding
the preceding sentence and clause (i), require
the Association to make reports concerning the
activities of any associated person, whose busi-
ness activities are reasonably likely to have a
material impact on the financial or operational
condition of the Association.
‘‘(iii) DEFINITION.—For purposes of this
subparagraph, the term ‘associated person’
means any person, other than a natural person,
directly or indirectly controlling, controlled by,
or under common control with the Associa-
tion.’’; and
(B) by adding at the end the following new
paragraphs:
‘‘(16) DIVIDENDS.—The Association may pay
dividends in the form of cash or noncash distribu-
tions so long as at the time of the declaration of
such dividends, after giving effect to the payment of
such dividends as of the date of such declaration by
the Board of Directors of the Association, the Asso-
ciation’s capital would be in compliance with the
capital standards set forth in this section.
‘‘(17) CERTIFICATION PRIOR TO PAYMENT OF
DIVIDEND.—Prior to the payment of any dividend
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under paragraph (16), the Association shall certify
to the Secretary of the Treasury that the payment
of the dividend will be made in compliance with
paragraph (16) and shall provide copies of all cal-
culations needed to make such certification.’’.
(c) SUNSET OF THE ASSOCIATION’S CHARTER IF NO
REORGANIZATION PLAN OCCURS.—Section 439 of the
Higher Education Act of 1965 (20 U.S.C. 1087–2) is
amended by adding at the end the following new sub-
section:
‘‘(s) CHARTER SUNSET.—
‘‘(1) APPLICATION OF PROVISIONS.—This sub-
section applies beginning 18 months and one day
after the date of enactment of this subsection if no
reorganization of the Association occurs in accord-
ance with the provisions of section 440.
‘‘(2) SUNSET PLAN.—
‘‘(A) PLAN SUBMISSION BY THE ASSOCIA-
TION.—Not later than July 1, 2007, the Asso-
ciation shall submit to the Secretary of the
Treasury and to the Chairman and Ranking
Member of the Committee on Labor and
Human Resources of the Senate and the Chair-
man and Ranking Member of the Committee on
Economic and Educational Opportunities of the
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House of Representatives, a detailed plan for
the orderly winding up, by July 1, 2013, of
business activities conducted pursuant to the
charter set forth in this section. Such plan
shall—
‘‘(i) ensure that the Association will
have adequate assets to transfer to a trust,
as provided in this subsection, to ensure
full payment of remaining obligations of
the Association in accordance with the
terms of such obligations;
‘‘(ii) provide that all assets not used
to pay liabilities shall be distributed to
shareholders as provided in this subsection;
and
‘‘(iii) provide that the operations of
the Association shall remain separate and
distinct from that of any entity to which
the assets of the Association are trans-
ferred.
‘‘(B) AMENDMENT OF THE PLAN BY THE
ASSOCIATION.—The Association shall from time
to time amend such plan to reflect changed cir-
cumstances, and submit such amendments to
the Secretary of the Treasury and to the Chair-
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man and Ranking Minority Member of the
Committee on Labor and Human Resources of
the Senate and Chairman and Ranking Minor-
ity Member of the Committee on Economic and
Educational Opportunities of the House of Rep-
resentatives. In no case may any amendment
extend the date for full implementation of the
plan beyond the dissolution date provided in
paragraph (3).
‘‘(C) PLAN MONITORING.—The Secretary
of the Treasury shall monitor the Association’s
compliance with the plan and shall continue to
review the plan (including any amendments
thereto).
‘‘(D) AMENDMENT OF THE PLAN BY THE
SECRETARY OF THE TREASURY.—The Secretary
of the Treasury may require the Association to
amend the plan (including any amendments to
the plan), if the Secretary of the Treasury
deems such amendments necessary to ensure
full payment of all obligations of the Associa-
tion.
‘‘(E) IMPLEMENTATION BY THE ASSOCIA-
TION.—The Association shall promptly imple-
ment the plan (including any amendments to
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the plan, whether such amendments are made
by the Association or are required to be made
by the Secretary of the Treasury).
‘‘(3) DISSOLUTION OF THE ASSOCIATION.—The
Association shall dissolve and the Association’s sepa-
rate existence shall terminate on July 1, 2013, after
discharge of all outstanding debt obligations and liq-
uidation pursuant to this subsection. The Associa-
tion may dissolve pursuant to this subsection prior
to such date by notifying the Secretary of Education
and the Secretary of the Treasury of the Associa-
tion’s intention to dissolve, unless within 60 days of
receipt of such notice the Secretary of Education no-
tifies the Association that the Association continues
to be needed to serve as a lender of last resort pur-
suant to subsection (q) or continues to be needed to
purchase loans under an agreement with the Sec-
retary described in paragraph (4)(A). On the dis-
solution date, the Association shall take the follow-
ing actions:
‘‘(A) ESTABLISHMENT OF A TRUST.—The
Association shall, under the terms of an irrev-
ocable trust agreement in form and substance
satisfactory to the Secretary of the Treasury,
the Association, and the appointed trustee, ir-
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revocably transfer all remaining obligations of
the Association to a trust and irrevocably de-
posit or cause to be deposited into such trust,
to be held as trust funds solely for the benefit
of holders of the remaining obligations, money
or direct noncallable obligations of the United
States or any agency thereof for which payment
the full faith and credit of the United States is
pledged, maturing as to principal and interest
in such amounts and at such times as are de-
termined by the Secretary of the Treasury to be
sufficient, without consideration of any signifi-
cant reinvestment of such interest, to pay the
principal of, and interest on, the remaining obli-
gations in accordance with their terms.
‘‘(B) USE OF TRUST ASSETS.—All money,
obligations, or financial assets deposited into
the trust pursuant to this subsection shall be
applied by the trustee to the payment of the re-
maining obligations assumed by the trust. Upon
the fulfillment of the trustee’s duties under the
trust, any remaining assets of the trust shall be
transferred to the persons who, at the time of
the dissolution, were the shareholders of the As-
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sociation, or to the legal successors or assigns
of such persons.
‘‘(C) OBLIGATIONS NOT TRANSFERRED TO
THE TRUST.—The Association shall make prop-
er provision for all other obligations of the As-
sociation, including the repurchase or redemp-
tion, or the making of proper provision for the
repurchase or redemption, of any preferred
stock of the Association outstanding.
‘‘(D) TRANSFER OF REMAINING ASSETS.—
After compliance with subparagraphs (A) and
(C), the Association shall transfer to the share-
holders of the Association any remaining assets
of the Association.
‘‘(4) RESTRICTIONS
RELATING
TO
WINDING
UP.—
‘‘(A) RESTRICTIONS ON NEW BUSINESS AC-
TIVITY OR ACQUISITION OF ASSETS BY THE AS-
SOCIATION.—
‘‘(i) IN GENERAL.—Beginning on July
1, 2009, the Association shall not engage
in any new business activities or acquire
any additional program assets (including
acquiring assets pursuant to contractual
commitments) described in subsection (d)
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other than in connection with the Associa-
tion—
‘‘(I) serving as a lender of last
resort pursuant to subsection (q); and
‘‘(II) purchasing loans insured
under this part, if the Secretary, with
the approval of the Secretary of the
Treasury, enters into an agreement
with the Association for the continu-
ation or resumption of the Associa-
tion’s secondary market purchase pro-
gram because the Secretary deter-
mines there is inadequate liquidity for
loans made under this part.
‘‘(ii) AGREEMENT.—The Secretary is
authorized to enter into an agreement de-
scribed in subclause (II) of clause (i) with
the Association covering such secondary
market activities. Any agreement entered
into under such subclause shall cover a pe-
riod of 12 months, but may be renewed if
the Secretary determines that liquidity re-
mains inadequate. The fee provided under
subsection (h)(7) shall not apply to loans
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acquired under any such agreement with
the Secretary.
‘‘(B) ISSUANCE
OF
DEBT
OBLIGATIONS
DURING THE WIND UP PERIOD; ATTRIBUTES OF
DEBT OBLIGATIONS.—The Association shall not
issue debt obligations which mature later than
July 1, 2013, except in connection with serving
as a lender of last resort pursuant to subsection
(q) or with purchasing loans under an agree-
ment with the Secretary as described in sub-
paragraph (A). Nothing in this subsection shall
modify the attributes accorded the debt obliga-
tions of the Association by this section, regard-
less of whether such debt obligations are trans-
ferred to a trust in accordance with paragraph
(3).
‘‘(C) USE
OF
ASSOCIATION
NAME.—The
Association may not transfer or permit the use
of the name ‘Student Loan Marketing Associa-
tion’, ‘Sallie Mae’, or any variation thereof, to
or by any entity other than a subsidiary of the
Association.’’.
(d) REPEALS.—
(1) IN GENERAL.—Sections 439 of the Higher
Education Act of 1965 (20 U.S.C. 1087–2) and 440
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of such Act (as added by subsection (a) of this sec-
tion) are repealed.
(2) EFFECTIVE DATE.—The repeals made by
paragraph (1) shall be effective one year after—
(A) the date on which all of the obligations
of the trust established under section 440(d)(1)
of the Higher Education Act of 1965 (as added
by subsection (a)) have been extinguished, if a
reorganization occurs in accordance with section
440 of such Act; or
(B) the date on which all of the obligations
of the trust established under subsection
439(s)(3)(A) of such Act (as added by sub-
section (c)) have been extinguished, if a reorga-
nization does not occur in accordance with sec-
tion 440 of such Act.
(e) ASSOCIATION NAMES.—Upon dissolution in ac-
cordance with section 439(s) of the Higher Education Act
of 1965 (20 U.S.C. 1087–2), the names ‘‘Student Loan
Marketing Association’’, ‘‘Sallie Mae’’, and any variations
thereof may not be used by any entity engaged in any
business similar to the business conducted pursuant to
section 439 of such Act (as such section was in effect on
the date of enactment of this Act) without the approval
of the Secretary of the Treasury.
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(f) RIGHT TO ENFORCE.—The Secretary of Edu-
cation or the Secretary of the Treasury, as appropriate,
may request that the Attorney General bring an action
in the United States District Court for the District of Co-
lumbia for the enforcement of any provision of subsection
(e), or may, under the direction or control of the Attorney
General, bring such an action. Such court shall have juris-
diction and power to order and require compliance with
subsection (e).
SEC. 603. CONNIE LEE PRIVATIZATION.
(a) STATUS OF THE CORPORATION AND CORPORATE
POWERS; OBLIGATIONS
NOT
FEDERALLY
GUARAN-
TEED.—
(1) STATUS OF THE CORPORATION.—The Cor-
poration shall not be an agency, instrumentality, or
establishment of the United States Government, nor
a Government corporation, nor a Government con-
trolled corporation, as such terms are defined in sec-
tion 103 of title 5, United States Code. No action
under section 1491 of title 28, United States Code
(commonly known as the Tucker Act) shall be allow-
able against the United States based on the actions
of the Corporation.
(2) CORPORATE
POWERS.—The Corporation
shall be subject to the provisions of this section, and,
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to the extent not inconsistent with this section, to
the District of Columbia Business Corporation Act
(or the comparable law of another State, if applica-
ble). The Corporation shall have the powers con-
ferred upon a corporation by the District of Colum-
bia Business Corporation Act (or such other applica-
ble State law) as from time to time in effect in order
to conduct the Corporation’s affairs as a private,
for-profit corporation and to carry out the Corpora-
tion’s purposes and activities incidental thereto. The
Corporation shall have the power to enter into con-
tracts, to execute instruments, to incur liabilities, to
provide products and services, and to do all things
as are necessary or incidental to the proper manage-
ment of the Corporation’s affairs and the efficient
operation of a private, for-profit business.
(3) LIMITATION ON OWNERSHIP OF STOCK.—
(A) STUDENT LOAN MARKETING ASSOCIA-
TION.—The Student Loan Marketing Associa-
tion shall not increase its share of the owner-
ship of the Corporation in excess of 42 percent
of the shares of stock of the Corporation out-
standing on the date of enactment of this Act.
The Student Loan Marketing Association shall
not control the operation of the Corporation,
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except that the Student Loan Marketing Asso-
ciation may participate in the election of direc-
tors as a shareholder, and may continue to ex-
ercise the Student Loan Marketing Associa-
tion’s right to appoint directors under section
754 of the Higher Education Act of 1965 (20
U.S.C. 1132f–3) as long as that section is in ef-
fect.
(B) PROHIBITION.—Until such time as the
Secretary of the Treasury sells the stock of the
Corporation owned by the Secretary of Edu-
cation pursuant to subsection (c), the Student
Loan Marketing Association shall not provide
financial support or guarantees to the Corpora-
tion.
(C) FINANCIAL
SUPPORT
OR
GUARAN-
TEES.—After the Secretary of the Treasury
sells the stock of the Corporation owned by the
Secretary of Education pursuant to subsection
(c), the Student Loan Marketing Association
may provide financial support or guarantees to
the Corporation, if such support or guarantees
are subject to terms and conditions that are no
more advantageous to the Corporation than the
terms and conditions the Student Loan Market-
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ing Association provides to other entities, in-
cluding, where applicable, other monoline finan-
cial guaranty corporations in which the Student
Loan Marketing Association has no ownership
interest.
(4) NO FEDERAL GUARANTEE.—
(A) OBLIGATIONS INSURED BY THE COR-
PORATION.—
(i) FULL FAITH AND CREDIT OF THE
UNITED STATES.—No obligation that is in-
sured, guaranteed, or otherwise backed by
the Corporation shall be deemed to be an
obligation that is guaranteed by the full
faith and credit of the United States.
(ii) STUDENT LOAN MARKETING ASSO-
CIATION.—No obligation that is insured,
guaranteed, or otherwise backed by the
Corporation shall be deemed to be an obli-
gation that is guaranteed by the Student
Loan Marketing Association.
(iii) SPECIAL RULE.—This paragraph
shall not affect the determination of
whether such obligation is guaranteed for
purposes of Federal income taxes.
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(B) SECURITIES OFFERED BY THE COR-
PORATION.—No debt or equity securities of the
Corporation shall be deemed to be guaranteed
by the full faith and credit of the United
States.
(5) DEFINITION.—The term ‘‘Corporation’’ as
used in this section means the College Construction
Loan Insurance Association as in existence on the
day before the date of enactment of this Act, and
any successor corporation.
(b) RELATED PRIVATIZATION REQUIREMENTS.—
(1) NOTICE REQUIREMENTS.—
(A) IN GENERAL.—During the six-year pe-
riod following the date of enactment of this Act,
the Corporation shall include, in each of the
Corporation’s contracts for the insurance, guar-
antee, or reinsurance of obligations, and in each
document offering debt or equity securities of
the Corporation, a prominent statement provid-
ing notice that—
(i) such obligations or such securities,
as the case may be, are not obligations of
the United States, nor are such obligations
or such securities, as the case may be,
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guaranteed in any way by the full faith
and credit of the United States; and
(ii) the Corporation is not an instru-
mentality of the United States.
(B) ADDITIONAL
NOTICE.—During the
five-year period following the sale of stock pur-
suant to subsection (c)(1), in addition to the
notice requirements in subparagraph (A), the
Corporation shall include, in each of the con-
tracts and documents referred to in such sub-
paragraph, a prominent statement providing no-
tice that the United States is not an investor in
the Corporation.
(2) CORPORATE CHARTER.—The Corporation’s
charter shall be amended as necessary and without
delay to conform to the requirements of this section.
(3) CORPORATE NAME.—The name of the Cor-
poration, or of any direct or indirect subsidiary
thereof, may not contain the term ‘‘College Con-
struction Loan Insurance Association’’, or any sub-
stantially similar variation thereof.
(4) ARTICLES OF INCORPORATION.—The Cor-
poration shall amend the Corporation’s articles of
incorporation without delay to reflect that one of the
purposes of the Corporation shall be to guarantee,
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insure, and reinsure bonds, leases, and other evi-
dences of debt of educational institutions, including
Historically Black Colleges and Universities and
other academic institutions which are ranked in the
lower investment grade category using a nationally
recognized credit rating system.
(5) REQUIREMENTS UNTIL STOCK SALE.—Not-
withstanding subsection (d), the requirements of sec-
tions 754 and 760 of the Higher Education Act of
1965 (20 U.S.C. 1132f–3 and 1132f–9), as such
sections were in effect on the day before the date of
enactment of this Act, shall continue to be effective
until the day immediately following the date of clos-
ing of the purchase of the Secretary of Education’s
stock (or the date of closing of the final purchase,
in the case of multiple transactions) pursuant to
subsection (c)(1) of this Act.
(c) SALE OF FEDERALLY OWNED STOCK.—
(1) PURCHASE
BY
THE
CORPORATION.—The
Secretary of the Treasury shall sell and the Corpora-
tion shall purchase, within 90 days after the date of
enactment of this Act, the stock of the Corporation
held by the Secretary of Education at a price deter-
mined by the binding, independent appraisal of a na-
tionally recognized financial firm, except that the
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90-day period may be extended by mutual agreement
of the Secretary of the Treasury and the Corpora-
tion to not more than 150 days after the date of en-
actment of this Act. The appraiser shall be jointly
selected by the Secretary of the Treasury and the
Corporation. In the event that the Secretary of the
Treasury and the Corporation cannot agree on the
appraiser, then the Secretary of the Treasury and
the Corporation shall name an independent third
party to select the appraiser.
(2) REIMBURSEMENT OF COSTS AND EXPENSES
OF SALE.—The Secretary of the Treasury shall be
reimbursed from the proceeds of the sale of the
stock under this subsection for all reasonable costs
and expenses related to such sale, except that one-
half of all reasonable costs and expenses relating to
the independent appraisal under paragraph (1) shall
be borne by the Corporation.
(3) DEPOSIT
INTO
ACCOUNT.—Amounts col-
lected from the sale of stock pursuant to this sub-
section that are not used to reimburse the Secretary
of the Treasury pursuant to paragraph (2) shall be
deposited into the account established under sub-
section (e).
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(4) ASSISTANCE BY THE CORPORATION.—The
Corporation shall provide such assistance as the Sec-
retary of the Treasury and the Secretary of Edu-
cation may require to facilitate the sale of the stock
under this subsection.
(5) REPORT TO CONGRESS.—Not later than 6
months after the date of enactment of this Act, the
Secretary of the Treasury shall report to the appro-
priate committees of Congress on the completion and
terms of the sale of stock of the Corporation pursu-
ant to this subsection.
(d) REPEAL OF STATUTORY RESTRICTIONS AND
RELATED PROVISIONS.—Part D of title VII of the High-
er Education Act of 1965 (20 U.S.C. 1132f et seq.) is
repealed.
(e) ESTABLISHMENT OF ACCOUNT.—
(1) IN GENERAL.—Notwithstanding any other
provision of law, the District of Columbia Financial
Responsibility and Management Assistance Author-
ity shall establish an account to receive—
(A) amounts collected from the sale and
proceeds resulting from the exercise of stock
warrants pursuant to section 440(c)(9) of the
Higher Education Act of 1965;
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(B) amounts and proceeds remitted as
compensation for the right to assign the ‘‘Sallie
Mae’’ name as a trademark or service mark
pursuant to section 440(e)(3) of the Higher
Education Act of 1965; and
(C) amounts and proceeds collected from
the sale of the stock of the Corporation and de-
posited pursuant to subsection (c)(3).
(2) AMOUNTS AND PROCEEDS.—
(A) AMOUNTS AND PROCEEDS RELATING
TO SALLIE MAE.—The amounts and proceeds
described in subparagraphs (A) and (B) of
paragraph (1) shall be used to finance public el-
ementary and secondary school facility con-
struction and repair within the District of Co-
lumbia or to carry out the District of Columbia
School Reform Act of 1995.
(B) AMOUNTS AND PROCEEDS RELATING
TO CONNIE LEE.—The amounts and proceeds
described in subparagraph (C) of paragraph (1)
shall be used to finance public elementary and
secondary school facility construction and repair
within the District of Columbia.
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SEC. 604. DISCRIMINATION IN SECONDARY MARKETS PRO-
HIBITED.
Part B of title IV of the Higher Education Act of
1965 (20 U.S.C. 1071 et seq.) is amended by adding
after section 440 (as added by section 602) the following
new section:
‘‘SEC. 440A. DISCRIMINATION IN SECONDARY MARKETS
PROHIBITED.
‘‘The Student Loan Marketing Association (and,
if the Association is privatized under section 440, any
successor entity functioning as a secondary market for
loans under this part, including the Holding Company
described in such section) shall not engage directly or in-
directly in any pattern or practice that results in a denial
of a borrower’s access to loans under this part because
of the borrower’s race, sex, color, religion, national origin,
age, disability status, income, attendance at a particular
eligible institution, length of the borrower’s educational
program, or the borrower’s academic year at an eligible
institution.’’.
TITLE VII—MUSEUM AND LIBRARY SERVICES
ACT OF 1996
SECTION 701. SHORT TITLE.
This title may be cited as the ‘‘Museum and Li-
brary Services Act of 1996’’.
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SEC. 702. MUSEUM AND LIBRARY SERVICES.
The Museum Services Act (20 U.S.C. 961 et seq.)
is amended to read as follows:
‘‘TITLE II—MUSEUM AND LIBRARY SERVICES
‘‘Subtitle A—General Provisions
‘‘SEC. 201. SHORT TITLE.
‘‘This title may be cited as the ‘Museum and Li-
brary Services Act’.
‘‘SEC. 202. GENERAL DEFINITIONS.
‘‘As used in this title:
‘‘(1) COMMISSION.—The term ‘Commission’
means the National Commission on Libraries and
Information Science established under section 3 of
the National Commission on Libraries and Informa-
tion Sciences Act (20 U.S.C. 1502).
‘‘(2) DIRECTOR.—The term ‘Director’ means
the Director of the Institute appointed under section
204.
‘‘(3) INSTITUTE.—The term ‘Institute’ means
the Institute of Museum and Library Services estab-
lished under section 203.
‘‘(4) MUSEUM
BOARD.—The term ‘Museum
Board’ means the National Museum Services Board
established under section 275.
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‘‘SEC. 203. INSTITUTE OF MUSEUM AND LIBRARY SERVICES.
‘‘(a) ESTABLISHMENT.—There is established,
within the National Foundation on the Arts and the Hu-
manities, an Institute of Museum and Library Services.
‘‘(b) OFFICES.—The Institute shall consist of an
Office of Museum Services and an Office of Library Serv-
ices. There shall be a National Museum Services Board
in the Office of Museum Services.
‘‘SEC. 204. DIRECTOR OF THE INSTITUTE.
‘‘(a) APPOINTMENT.—
‘‘(1) IN
GENERAL.—The Institute shall be
headed by a Director, appointed by the President, by
and with the advice and consent of the Senate.
‘‘(2) TERM.—The Director shall serve for a
term of 4 years.
‘‘(3) QUALIFICATIONS.—Beginning with the
first individual appointed to the position of Director
after the date of enactment of the Museum and Li-
brary Services Act of 1996, every second individual
so appointed shall be appointed from among individ-
uals who have special competence with regard to li-
brary and information services. Beginning with the
second individual appointed to the position of Direc-
tor after the date of enactment of the Museum and
Library Services Act of 1996, every second individ-
ual so appointed shall be appointed from among in-