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cy if the person has an outstanding debt (other than a
debt under the Internal Revenue Code of 1986) with any
Federal agency which is in a delinquent status, as deter-
mined under standards prescribed by the Secretary of the
Treasury. Such a person may obtain additional loans or
loan guarantees only after such delinquency is resolved in
accordance with those standards. The Secretary of the
Treasury may exempt, at the request of an agency, any
class of claims.
‘‘(b) The head of a Federal agency may delegate the
waiver authority under subsection (a) to the Chief Finan-
cial Officer of the agency. The waiver authority may be
redelegated only to the Deputy Chief Financial Officer of
the agency.
‘‘(c) For purposes of this section, the term ‘person’
means—
‘‘(1) an individual; or
‘‘(2) any sole proprietorship, partnership, cor-
poration, nonprofit organization, or other form of
business association.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for subchapter II of chapter 37 of title 31, United States
Code, is amended by inserting after the item relating to
section 3720A the following new item:
‘‘3720B. Barring delinquent Federal debtors from obtaining Federal loans or
loan guarantees.’’.
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Subpart D—Expansion and Enhancement of
Collection Authorities
SEC. 5241. DISCLOSURE TO CONSUMER REPORTING AGEN-
CIES AND COMMERCIAL REPORTING AGEN-
CIES.
Section 3711(f) of title 31, United States Code, is
amended—
(1) by striking ‘‘may’’ the first place it appears
and inserting ‘‘shall’’;
(2) by striking ‘‘an individual’’ each place it ap-
pears and inserting ‘‘a covered person’’;
(3) by striking ‘‘the individual’’ each place it
appears and inserting ‘‘the covered person’’; and
(4) by adding at the end the following new
paragraphs:
‘‘(4) The head of each executive agency shall require,
as a condition for guaranteeing any loan, financing, or
other extension of credit under any law to a covered per-
son, that the lender provide information relating to the
extension of credit to consumer reporting agencies or com-
mercial reporting agencies, as appropriate.
‘‘(5) The head of each executive agency may provide
to a consumer reporting agency or commercial reporting
agency information from a system of records that a cov-
ered person is responsible for a claim which is current,
if notice required by section 552a(e)(4) of title 5 indicates
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that information in the system may be disclosed to a
consumer reporting agency or commercial reporting agen-
cy, respectively.
‘‘(6) In this subsection, the term ‘covered person’
means an individual, a sole proprietorship, a corporation
(including a nonprofit corporation), or any other form of
business association.’’.
SEC. 5242. CONTRACTS FOR COLLECTION SERVICES.
Section 3718 of title 31, United States Code, is
amended—
(1) in subsection (a), by striking the first sen-
tence and inserting the following: ‘‘Under conditions
the head of an executive, judicial, or legislative agen-
cy considers appropriate, the head of the agency
may enter into a contract with a person for collec-
tion service to recover indebtedness owed, or to lo-
cate or recover assets of, the United States Govern-
ment. The head of an agency may not enter into a
contract under the preceding sentence to locate or
recover assets of the United States held by a State
government or financial institution unless that agen-
cy has established procedures approved by the Sec-
retary of the Treasury to identify and recover such
assets.’’; and
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(2) in subsection (d), by inserting ‘‘, or to lo-
cate or recover assets of,’’ after ‘‘owed’’.
SEC. 5243. CROSS-SERVICING PARTNERSHIPS AND CEN-
TRALIZATION OF DEBT COLLECTION ACTIVI-
TIES IN THE DEPARTMENT OF THE TREAS-
URY.
Section 3711 of title 31, United States Code, is
amended by adding at the end the following new sub-
sections:
‘‘(g)(1) If a nontax debt or claim owed to the United
States has been delinquent for a period of 180 days—
‘‘(A) the head of the executive, judicial, or legis-
lative agency that administers the program that gave
rise to the debt or claim shall transfer the debt or
claim to the Secretary of the Treasury; and
‘‘(B) upon such transfer the Secretary of the
Treasury shall take appropriate action to collect or
terminate collection actions on the debt or claim.
‘‘(2) Paragraph (1) shall not apply—
‘‘(A) to any debt or claim that—
‘‘(i) is in litigation or foreclosure;
‘‘(ii) will be disposed of under an asset
sales program within 1 year after the date the
debt or claim is first delinquent, or a greater
period of time if a delay would be in the best
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interests of the United States, as determined by
the Secretary of the Treasury;
‘‘(iii) has been referred to a private collec-
tion contractor for collection for a period of
time determined by the Secretary of the Treas-
ury;
‘‘(iv) has been referred by, or with the con-
sent of, the Secretary of the Treasury to a debt
collection center for a period of time determined
by the Secretary of the Treasury; or
‘‘(v) will be collected under internal offset,
if such offset is sufficient to collect the claim
within 3 years after the date the debt or claim
is first delinquent; and
‘‘(B) to any other specific class of debt or
claim, as determined by the Secretary of the Treas-
ury at the request of the head of an executive, judi-
cial, or legislative agency or otherwise.
‘‘(3) For purposes of this section, the Secretary of
the Treasury may designate, and withdraw such designa-
tion of debt collection centers operated by other Federal
agencies. The Secretary of the Treasury shall designate
such centers on the basis of their performance in collecting
delinquent claims owed to the Government.
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‘‘(4) At the discretion of the Secretary of the Treas-
ury, referral of a nontax claim may be made to—
‘‘(A) any executive department or agency oper-
ating a debt collection center for servicing, collec-
tion, compromise, or suspension or termination of
collection action;
‘‘(B) a contractor operating under a contract
for servicing or collection action; or
‘‘(C) the Department of Justice for litigation.
‘‘(5) nontax claims referred or transferred under this
section shall be serviced, collected, or compromised, or col-
lection action thereon suspended or terminated, in accord-
ance with otherwise applicable statutory requirements and
authorities. Executive departments and agencies operating
debt collection centers may enter into agreements with the
Secretary of the Treasury to carry out the purposes of
this subsection. The Secretary of the Treasury shall—
‘‘(A) maintain competition in carrying out this
subsection;
‘‘(B) maximize collections of delinquent debts
by placing delinquent debts quickly;
‘‘(C) maintain a schedule of contractors and
debt collection centers eligible for referral of claims;
and
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‘‘(D) refer delinquent debts to the person most
appropriate to collect the type or amount of claim
involved.
‘‘(6) Any agency operating a debt collection center
to which nontax claims are referred or transferred under
this subsection may charge a fee sufficient to cover the
full cost of implementing this subsection. The agency
transferring or referring the nontax claim shall be charged
the fee, and the agency charging the fee shall collect such
fee by retaining the amount of the fee from amounts col-
lected pursuant to this subsection. Agencies may agree to
pay through a different method, or to fund an activity
from another account or from revenue received from the
procedure described under section 3720C of this title.
Amounts charged under this subsection concerning delin-
quent claims may be considered as costs pursuant to sec-
tion 3717(e) of this title.
‘‘(7) Notwithstanding any other law concerning the
depositing and collection of Federal payments, including
section 3302(b) of this title, agencies collecting fees may
retain the fees from amounts collected. Any fee charged
pursuant to this subsection shall be deposited into an ac-
count to be determined by the executive department or
agency operating the debt collection center charging the
fee (in this subsection referred to in this section as the
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‘Account’). Amounts deposited in the Account shall be
available until expended to cover costs associated with the
implementation and operation of Governmentwide debt
collection activities. Costs properly chargeable to the Ac-
count include—
‘‘(A) the costs of computer hardware and soft-
ware, word processing and telecommunications
equipment, and other equipment, supplies, and fur-
niture;
‘‘(B) personnel training and travel costs;
‘‘(C) other personnel and administrative costs;
‘‘(D) the costs of any contract for identification,
billing, or collection services; and
‘‘(E) reasonable costs incurred by the Secretary
of the Treasury, including services and utilities pro-
vided by the Secretary, and administration of the
Account.
‘‘(8) Not later than January 1 of each year, there
shall be deposited into the Treasury as miscellaneous re-
ceipts an amount equal to the amount of unobligated bal-
ances remaining in the Account at the close of business
on September 30 of the preceding year, minus any part
of such balance that the executive department or agency
operating the debt collection center determines is nec-
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essary to cover or defray the costs under this subsection
for the fiscal year in which the deposit is made.
‘‘(9) To carry out the purposes of this subsection, the
Secretary of the Treasury may prescribe such rules, regu-
lations, and procedures as the Secretary considers nec-
essary.
‘‘(h)(1) The head of an executive, judicial, or legisla-
tive agency acting under subsection (a)(1), (2), or (3) of
this section to collect a claim, compromise a claim, or ter-
minate collection action on a claim may obtain a consumer
report (as that term is defined in section 603 of the Fair
Credit Reporting Act (15 U.S.C. 1681a)) or comparable
credit information on any person who is liable for the
claim.
‘‘(2) The obtaining of a consumer report under this
subsection is deemed to be a circumstance or purpose au-
thorized or listed under section 604 of the Fair Credit Re-
porting Act (15 U.S.C. 1681b).’’.
SEC. 5244. COMPROMISE OF CLAIMS.
Section 11 of the Administrative Dispute Resolution
Act (Public Law 101–552, 104 Stat. 2736, 5 U.S.C. 571
note) is amended by adding at the end the following sen-
tence: ‘‘This section shall not apply to section 8(b) of this
Act.’’.
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SEC. 5245. WAGE GARNISHMENT REQUIREMENT.
(a) IN GENERAL.—Chapter 37 of title 31, United
States Code, is amended in subchapter II by adding after
section 3720C, as added by section 5261 of this subtitle,
the following new section:
‘‘§ 3720D. Garnishment
‘‘(a) Notwithstanding any provision of State law, the
head of an executive, judicial, or legislative agency that
administers a program that gives rise to a delinquent
nontax debt owed to the United States by an individual
may in accordance with this section garnish the disposable
pay of the individual to collect the amount owed, if the
individual is not currently making required repayment in
accordance with any agreement between the agency head
and the individual.
‘‘(b) In carrying out any garnishment of disposable
pay of an individual under subsection (a), the head of an
executive, judicial, or legislative agency shall comply with
the following requirements:
‘‘(1) The amount deducted under this section
for any pay period may not exceed 15 percent of dis-
posable pay, except that a greater percentage may
be deducted with the written consent of the individ-
ual.
‘‘(2) The individual shall be provided written
notice, sent by mail to the individual’s last known
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address, a minimum of 30 days prior to the initi-
ation of proceedings, from the head of the executive,
judicial, or legislative agency, informing the individ-
ual of—
‘‘(A) the nature and amount of the debt to
be collected;
‘‘(B) the intention of the agency to initiate
proceedings to collect the debt through deduc-
tions from pay; and
‘‘(C) an explanation of the rights of the in-
dividual under this section.
‘‘(3) The individual shall be provided an oppor-
tunity to inspect and copy records relating to the
debt.
‘‘(4) The individual shall be provided an oppor-
tunity to enter into a written agreement with the ex-
ecutive, judicial, or legislative agency, under terms
agreeable to the head of the agency, to establish a
schedule for repayment of the debt.
‘‘(5) The individual shall be provided an oppor-
tunity for a hearing in accordance with subsection
(c) on the determination of the head of the execu-
tive, judicial, or legislative agency concerning—
‘‘(A) the existence or the amount of the
debt, and
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‘‘(B) in the case of an individual whose re-
payment schedule is established other than by
a written agreement pursuant to paragraph (4),
the terms of the repayment schedule.
‘‘(6) If the individual has been reemployed with-
in 12 months after having been involuntarily sepa-
rated from employment, no amount may be deducted
from the disposable pay of the individual until the
individual has been reemployed continuously for at
least 12 months.
‘‘(c)(1) A hearing under subsection (b)(5) shall be
provided prior to issuance of a garnishment order if the
individual, on or before the 15th day following the mailing
of the notice described in subsection (b)(2), and in accord-
ance with such procedures as the head of the executive,
judicial, or legislative agency may prescribe, files a petition
requesting such a hearing.
‘‘(2) If the individual does not file a petition request-
ing a hearing prior to such date, the head of the agency
shall provide the individual a hearing under subsection
(a)(5) upon request, but such hearing need not be pro-
vided prior to issuance of a garnishment order.
‘‘(3) The hearing official shall issue a final decision
at the earliest practicable date, but not later than 60 days
after the filing of the petition requesting the hearing.
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‘‘(d) The notice to the employer of the withholding
order shall contain only such information as may be nec-
essary for the employer to comply with the withholding
order.
‘‘(e)(1) An employer may not discharge from employ-
ment, refuse to employ, or take disciplinary action against
an individual subject to wage withholding in accordance
with this section by reason of the fact that the individual’s
wages have been subject to garnishment under this sec-
tion, and such individual may sue in a State or Federal
court of competent jurisdiction any employer who takes
such action.
‘‘(2) The court shall award attorneys’ fees to a pre-
vailing employee and, in its discretion, may order rein-
statement of the individual, award punitive damages and
back pay to the employee, or order such other remedy as
may be reasonably necessary.
‘‘(f)(1) The employer of an individual—
‘‘(A) shall pay to the head of an executive, judi-
cial, or legislative agency as directed in a withhold-
ing order issued in an action under this section with
respect to the individual, and
‘‘(B) shall be liable for any amount that the
employer fails to withhold from wages due an em-
ployee following receipt by such employer of notice
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of the withholding order, plus attorneys’ fees, costs,
and, in the court’s discretion, punitive damages.
‘‘(2)(A) The head of an executive, judicial, or legisla-
tive agency may sue an employer in a State or Federal
court of competent jurisdiction to recover amounts for
which the employer is liable under paragraph (1)(B).
‘‘(B) A suit under this paragraph may not be filed
before the termination of the collection action, unless ear-
lier filing is necessary to avoid expiration of any applicable
statute of limitations period.
‘‘(3) Notwithstanding paragraphs (1) and (2), an em-
ployer shall not be required to vary its normal pay and
disbursement cycles in order to comply with this sub-
section.
‘‘(g) For the purpose of this section, the term ‘dispos-
able pay’ means that part of the compensation of any indi-
vidual from an employer remaining after the deduction of
any amounts required by any other law to be withheld.
‘‘(h) The Secretary of the Treasury shall issue regula-
tions to implement this section.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for subchapter II of chapter 37 of title 31, United States
Code, is amended by inserting after the item relating to
section 3720C (as added by section 5261 of this subtitle)
the following new item:
‘‘3720D. Garnishment.’’.
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SEC. 5246. DEBT SALES BY AGENCIES.
Section 3711 of title 31, United States Code, is fur-
ther amended by adding at the end the following new sub-
section:
‘‘(h)(1) The head of an executive, judicial, or legisla-
tive agency may sell, subject to section 504(b) of the Fed-
eral Credit Reform Act of 1990 and using competitive pro-
cedures, any nontax debt owed to the United States that
is delinquent for more than 90 days. Appropriate fees
charged by a contractor to assist in the conduct of a sale
under this subsection may be payable from the proceeds
of the sale.
‘‘(2) After terminating collection action, the head of
an executive, judicial, or legislative agency shall sell, using
competitive procedures, any nontax debt or class of nontax
debts owed to the United States, if the Secretary of the
Treasury determines the sale is in the best interests of
the United States.
‘‘(3) Sales of nontax debt under this subsection—
‘‘(A) shall be for—
‘‘(i) cash, or
‘‘(ii) cash and a residuary equity or profit
participation, if the head of the agency reason-
ably determines that the proceeds will be great-
er than sale solely for cash,
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‘‘(B) shall be without recourse, but may include
the use of guarantees if otherwise authorized, and
‘‘(C) shall transfer to the purchaser all rights
of the Government to demand payment of the
nontax debt, other than with respect to a residuary
equity or profit participation under subparagraph
(A)(ii).
‘‘(4)(A) Within one year after the date of enactment
of the Debt Collection Improvement Act of 1995, and
every year thereafter, each executive agency with current
and delinquent collateralized nontax debts shall report to
the Congress on the valuation of its existing portfolio of
loans, notes and guarantees, and other collateralized debts
based on standards developed by the Director of the Office
of Management and Budget, in consultation with the Sec-
retary of the Treasury.
‘‘(B) The Director of the Office of Management and
Budget shall determine what information is required to
be reported to comply with subparagraph (A). At a mini-
mum, for each financing account and for each liquidating
account (as those terms are defined in sections 502(7) and
502(8), respectively, of the Federal Credit Reform Act of
1990) the following information shall be reported:
‘‘(i) The cumulative balance of current debts
outstanding, the estimated net present value of such
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debts, the annual administrative expenses of those
debts (including the portion of salaries and expenses
that are directly related thereto), and the estimated
net proceeds that would be received by the Govern-
ment if such debts were sold.
‘‘(ii) The cumulative balance of delinquent
debts, debts outstanding, the estimated net present
value of such debts, the annual administrative ex-
penses of those debts (including the portion of sala-
ries and expenses that are directly related thereto),
and the estimated net proceeds that would be re-
ceived by the Government if such debts were sold.
‘‘(iii) The cumulative balance of guaranteed
loans outstanding, the estimated net present value of
such guarantees, the annual administrative expenses
of such guarantees (including the portion of salaries
and expenses that are directly related to such guar-
anteed loans), and the estimated net proceeds that
would be received by the Government if such loan
guarantees were sold.
‘‘(iv) The cumulative balance of defaulted loans
that were previously guaranteed and have resulted in
loans receivables, the estimated net present value of
such loan assets, the annual administrative expenses
of such loan assets (including the portion of salaries
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and expenses that are directly related to such loan
assets), and the estimated net proceeds that would
be received by the Government if such loan assets
were sold.
‘‘(v) The marketability of all debts.
‘‘(5) This subsection is not intended to limit existing
statutory authority of agencies to sell loans, debts, or
other assets.’’.
SEC. 5247. ADJUSTMENTS OF ADMINISTRATIVE DEBT.
Section 3717 of title 31, United States Code, is
amended by adding at the end of subsection (h) the follow-
ing new subsection:
‘‘(i)(1) The head of an executive, judicial, or legisla-
tive agency may increase an administrative claim by the
cost of living adjustment in lieu of charging interest and
penalties under this section. Adjustments under this sub-
section will be computed annually.
‘‘(2) For the purpose of this subsection—
‘‘(A) the term ‘cost of living adjustment’ means
the percentage by which the Consumer Price Index
for the month of June of the calendar year preced-
ing the adjustment exceeds the Consumer Price
Index for the month of June of the calendar year in
which the claim was determined or last adjusted;
and
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‘‘(B) the term ‘administrative claim’ includes all
debt that is not based on an extension of Govern-
ment credit through direct loans, loan guarantees, or
insurance, including fines, penalties, and overpay-
ments.’’.
SEC. 5248. DISSEMINATION OF INFORMATION REGARDING
IDENTITY OF DELINQUENT DEBTORS.
(a) IN GENERAL.—Chapter 37 of title 31, United
States Code, is amended in subchapter II by adding after
section 3720D, as added by section 5245 of this subtitle,
the following new section:
‘‘§ 3720E. Dissemination of information regarding
identity of delinquent debtors
‘‘(a) The head of any agency may, with the review
of the Secretary of the Treasury, for the purpose of col-
lecting any delinquent nontax debt owed by any person,
publish or otherwise publicly disseminate information re-
garding the identity of the person and the existence of the
nontax debt.
‘‘(b)(1) The Secretary of the Treasury, in consulta-
tion with the Director of the Office of Management and
Budget and the heads of other appropriate Federal agen-
cies, shall issue regulations establishing procedures and
requirements the Secretary considers appropriate to carry
out this section.
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‘‘(2) Regulations under this subsection shall in-
clude—
‘‘(A) standards for disseminating information
that maximize collections of delinquent nontax debts,
by directing actions under this section toward delin-
quent debtors that have assets or income sufficient
to pay their delinquent nontax debt;
‘‘(B) procedures and requirements that prevent
dissemination of information under this section re-
garding persons who have not had an opportunity to
verify, contest, and compromise their nontax debt in
accordance with this subchapter; and
‘‘(C) procedures to ensure that persons are not
incorrectly identified pursuant to this section.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for subchapter II of chapter 37 of title 31, United States
Code, is amended by adding after the item relating to sec-
tion 3720D (as added by section 5245 of this subtitle)
the following new item:
‘‘3720E. Dissemination of information regarding identity of delinquent debt-
ors.’’.
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Subpart E—Federal Civil Monetary Penalties
SEC. 5251. ADJUSTING FEDERAL CIVIL MONETARY PEN-
ALTIES FOR INFLATION.
(a) IN GENERAL.—The Federal Civil Penalties Infla-
tion Adjustment Act of 1990 (Public Law 101–410, 104
Stat. 890; 28 U.S.C. 2461 note) is amended—
(1) by amending section 4 to read as follows:
‘‘SEC. 4. The head of each agency shall, not later
than 180 days after the date of enactment of the Debt
Collection Improvement Act of 1995, and at least once
every 4 years thereafter—
‘‘(1) by regulation adjust each civil monetary
penalty provided by law within the jurisdiction of the
Federal agency, except for any penalty (including
any addition to tax and additional amount) under
the Internal Revenue Code of 1986, the Tarriff Act
of 1930, or the Social Security Act, by the inflation
adjustment described under section 5 of this Act;
and
‘‘(2) publish each such regulation in the Fed-
eral Register.’’;
(2) in section 5(a), by striking ‘‘The adjustment
described under paragraphs (4) and (5)(A) of sec-
tion 4’’ and inserting ‘‘The inflation adjustment
under section 4’’; and
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(3) by adding at the end the following new sec-
tion:
‘‘SEC. 7. Any increase under this Act in a civil mone-
tary penalty shall apply only to violations which occur
after the date the increase takes effect.’’.
(b) LIMITATION
ON INITIAL ADJUSTMENT.—The
first adjustment of a civil monetary penalty made pursu-
ant to the amendment made by to subsection (a) may not
exceed 10 percent of such penalty.
Subpart F—Gain Sharing
SEC. 5261. DEBT COLLECTION IMPROVEMENT ACCOUNT.
(a) IN GENERAL.—Title 31, United States Code, is
amended by inserting after section 3720B (as added by
section 5232 of this subtitle) the following new section:
‘‘§ 3720C. Debt Collection Improvement Account
‘‘(a)(1) There is hereby established in the Treasury
a special fund to be known as the ‘Debt Collection Im-
provement Account’ (hereinafter in this section referred
to as the ‘Account’).
‘‘(2) The Account shall be maintained and managed
by the Secretary of the Treasury, who shall ensure that
agency programs are credited with amounts transferred
under subsection (b)(1).
‘‘(b)(1) Not later than 30 days after the end of a
fiscal year, an agency may transfer to the Account the
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amount described in paragraph (3), as adjusted under
paragraph (4).
‘‘(2) Agency transfers to the Account may include
collections from—
‘‘(A) salary, administrative, and tax refund off-
sets;
‘‘(B) automated levy authority;
‘‘(C) the Department of Justice;
‘‘(D) private collection agencies;
‘‘(E) sales of delinquent loans; and
‘‘(F) contracts to locate or recover assets.
‘‘(3) The amount referred to in paragraph (1) shall
be 5 percent of the amount of delinquent debt collected
by an agency in a fiscal year, minus the greater of—
‘‘(A) 5 percent of the amount of delinquent
nontax debt collected by the agency in the previous
fiscal year, or
‘‘(B) 5 percent of the amount of delinquent
nontax debt collected by the agency in the previous
4 fiscal years.
‘‘(4) In consultation with the Secretary of the Treas-
ury, the Office of Management and Budget may adjust
the amount described in paragraph (3) for an agency to
reflect the level of effort in credit management programs
by the agency. As an indicator of the level of effort in
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credit management, the Office of Management and Budg-
et shall consider the following:
‘‘(A) The number of days between the date a
claim or debt became delinquent and the date which
an agency referred the debt or claim to the Sec-
retary of the Treasury or obtained an exemption
from this referral under section 3711(g)(2) of this
title.
‘‘(B) The ratio of delinquent debts or claims to
total receivables for a given program, and the
change in this ratio over a period of time.
‘‘(c)(1) The Secretary of the Treasury may make pay-
ments from the Account solely to reimburse agencies for
qualified expenses. For agencies with franchise funds,
such payments may be credited to subaccounts designated
for debt collection.
‘‘(2) For purposes of this section, the term ‘qualified
expenses’ means expenditures for the improvement of
credit management, debt collection, and debt recovery ac-
tivities, including—
‘‘(A) account servicing (including cross-servic-
ing under section 3711(g) of this title),
‘‘(B) automatic data processing equipment ac-
quisitions,
‘‘(C) delinquent debt collection,
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‘‘(D) measures to minimize delinquent debt,
‘‘(E) sales of delinquent debt,
‘‘(F) asset disposition, and
‘‘(G) training of personnel involved in credit
and debt management.
‘‘(3)(A) Amounts in the Account shall be available
to the Secretary of the Treasury for purposes of this sec-
tion to the extent and in amounts provided in advance in
appropriation Acts.
‘‘(B) As soon as practicable after the end of the third
fiscal year after which appropriations are made pursuant
to this section, and every 3 years thereafter, any unappro-
priated balance in the Account shall be transferred to the
general fund of the Treasury as miscellaneous receipts.
‘‘(d) For direct loans and loan guarantee programs
subject to title V of the Congressional Budget Act of 1974,
amounts credited in accordance with subsection (c) shall
be considered administrative costs.
‘‘(e) The Secretary of the Treasury shall prescribe
such rules, regulations, and procedures as the Secretary
considers necessary or appropriate to carry out the pur-
poses of this section.’’.
(b) CLERICAL AMENDMENT.—The table of sections
for chapter 37 of title 31, United States Code, is amended
by inserting after the item relating to section 3720B (as
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added by section 5232 of this subtitle) the following new
item:
‘‘3720C. Debt Collection Improvement Account.’’.
Subpart G—Tax Refund Offset Authority
SEC. 5271. EXPANDING TAX REFUND OFFSET AUTHORITY.
(a) DISCRETIONARY AUTHORITY.—Section 3720A of
title 31, United States Code, is amended by adding after
subsection (h) the following new subsection:
‘‘(i) An agency subject to section 9 of the Act of May
18, 1933 (16 U.S.C. 831h), may implement this section
at its discretion.’’.
(b) FEDERAL AGENCY DEFINED.—Section 6402(f)
of the Internal Revenue Code of 1986 (26 U.S.C.
6402(f)), is amended to read as follows:
‘‘(f) FEDERAL AGENCY.—For purposes of this sec-
tion, the term ‘Federal agency’ means a department, agen-
cy, or instrumentality of the United States, and includes
a Government corporation (as such term is defined in sec-
tion 103 of title 5, United States Code).’’.
SEC. 5272. EXPANDING AUTHORITY TO COLLECT PAST-DUE
SUPPORT.
(a) NOTIFICATION OF SECRETARY OF THE TREAS-
URY.—Section 3720A(a) of title 31, United States Code,
is amended to read as follows:
‘‘(a) Any Federal agency that is owed by a person
a past-due, legally enforceable debt (including debt admin-
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istered by a third party acting as an agent for the Federal
Government) shall, and any agency subject to section 9
of the Act of May 18, 1933 (16 U.S.C. 831h), owed such
a debt may, in accordance with regulations issued pursu-
ant to subsections (b) and (d), notify the Secretary of the
Treasury at least once each year of the amount of such
debt.’’.
(b) IMPLEMENTATION OF SUPPORT COLLECTION BY
SECRETARY OF THE TREASURY.—Section 464(a) of the
Act of August 14, 1935 (42 U.S.C. 664(a)) is amended—
(1) in paragraph (1), by adding at the end the
following: ‘‘This subsection may be executed by the
disbursing official of the Department of the Treas-
ury.’’; and
(2) in paragraph (2)(A), by adding at the end
the following: ‘‘This subsection may be executed by
the disbursing official of the Department of the
Treasury.’’.
Subpart H—Disbursements
SEC. 5281. ELECTRONIC FUNDS TRANSFER.
Section 3332 of title 31, United States Code, popu-
larly known as the Federal Financial Management Act of
1994, is amended—
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(1) by redesignating subsection (e) as sub-
section (h), and inserting after subsection (d) the
following new subsections:
‘‘(e)(1) Notwithstanding subsections (a) through (d)
of this section, sections 5120 (a) and (d) of title 38, and
any other provision of law, all Federal payments to a re-
cipient who becomes eligible for that type of payments
after 90 days after the date of the enactment of the Debt
Collection Improvement Act of 1995 shall be made by elec-
tronic funds transfer.
‘‘(2) The head of a Federal agency shall, with respect
to Federal payments made or authorized by the agency,
waive the application of paragraph (1) to a recipient of
those payments upon receipt of written certification from
the recipient that the recipient does not have an account
with a financial institution or an authorized payment
agent.
‘‘(f)(1) Notwithstanding any other provision of law
(including subsections (a) through (e) of this section and
sections 5120 (a) and (d) of title 38), except as provided
in paragraph (2) all Federal payments made after Janu-
ary 1, 1999, shall be made by electronic funds transfer.
‘‘(2)(A) The Secretary of the Treasury may waive ap-
plication of this subsection to payments—
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‘‘(i) for individuals or classes of individuals for
whom compliance imposes a hardship;
‘‘(ii) for classifications or types of checks; or
‘‘(iii) in other circumstances as may be nec-
essary.
‘‘(B) The Secretary of the Treasury shall make deter-
minations under subparagraph (A) based on standards de-
veloped by the Secretary.
‘‘(g) Each recipient of Federal payments required to
be made by electronic funds transfer shall—
‘‘(1) designate 1 or more financial institutions
or other authorized agents to which such payments
shall be made; and
‘‘(2) provide to the Federal agency that makes
or authorizes the payments information necessary
for the recipient to receive electronic funds transfer
payments through each institution or agent des-
ignated under paragraph (1).’’; and
(2) by adding after subsection (h) (as so redes-
ignated) the following new subsections:
‘‘(i)(1) The Secretary of the Treasury may prescribe
regulations that the Secretary considers necessary to carry
out this section.
‘‘(2) Regulations under this subsection shall ensure
that individuals required under subsection (g) to have an
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account at a financial institution because of the applica-
tion of subsection (f)(1)—
‘‘(A) will have access to such an account at a
reasonable cost; and
‘‘(B) are given the same consumer protections
with respect to the account as other account holders
at the same financial institution.
‘‘(j) For purposes of this section—
‘‘(1) The term ‘electronic funds transfer’ means
any transfer of funds, other than a transaction origi-
nated by cash, check, or similar paper instrument,
that is initiated through an electronic terminal, tele-
phone, computer, or magnetic tape, for the purpose
of ordering, instructing, or authorizing a financial
institution to debit or credit an account. The term
includes Automated Clearing House transfers, Fed
Wire transfers, transfers made at automatic teller
machines, and point-of-sale terminals.
‘‘(2) The term ‘Federal agency’ means—
‘‘(A) an agency (as defined in section 101
of this title); and
‘‘(B) a Government corporation (as defined
in section 103 of title 5).
‘‘(3) The term ‘Federal payments’ includes—
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‘‘(A) Federal wage, salary, and retirement
payments;
‘‘(B) vendor and expense reimbursement
payments; and
‘‘(C) benefit payments.
Such term shall not include any payment under the
Internal Revenue Code of 1986.’’
SEC. 5282. REQUIREMENT TO INCLUDE TAXPAYER IDENTI-
FYING NUMBER WITH PAYMENT VOUCHER.
Section 3325 of title 31, United States Code, is
amended by adding at the end the following new sub-
section:
‘‘(d) The head of an executive agency or an officer
or employee of an executive agency referred to in sub-
section (a)(1)(B), as applicable, shall include with each
certified voucher submitted to a disbursing official pursu-
ant to this section the taxpayer identifying number of each
person to whom payment may be made under the
voucher.’’.
Subpart I—Miscellaneous
SEC. 5291. MISCELLANEOUS AMENDMENTS TO DEFINI-
TIONS.
Section 3701 of title 31, United States Code, is
amended—
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(1) by amending subsection (a)(1) to read as
follows:
‘‘(1) ‘administrative offset’ means withholding
funds payable by the United States (including funds
payable by the United States on behalf of a State
government) to, or held by the United States for, a
person to satisfy a claim.’’;
(2) by amending subsection (b) to read as fol-
lows:
‘‘(b)(1) In subchapter II of this chapter, The term
‘claim’ or ‘debt’ means any amount of funds or property
that has been determined by an appropriate official of the
Federal Government to be owed to the United States by
a person, organization, or entity other than another Fed-
eral agency. A claim includes, without limitation—
‘‘(A) funds owed on account of loans made, in-
sured, or guaranteed by the Government, including
any deficiency or any difference between the price
obtained by the Government in the sale of a prop-
erty and the amount owed to the Government on a
mortgage on the property,
‘‘(B) expenditures of nonappropriated funds,
‘‘(C) over-payments, including payments dis-
allowed by audits performed by the Inspector Gen-
eral of the agency administering the program,
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‘‘(D) any amount the United States is author-
ized by statute to collect for the benefit of any per-
son,
‘‘(E) the unpaid share of any non-Federal part-
ner in a program involving a Federal payment and
a matching, or cost-sharing, payment by the non-
Federal partner,
‘‘(F) any fines or penalties assessed by an agen-
cy; and
‘‘(G) other amounts of money or property owed
to the Government.
‘‘(2) For purposes of sections 3716 of this title, each
of the terms ‘claim’ and ‘debt’ includes an amount of
funds or property owed by a person to a State (including
any past-due support being enforced by the State), the
District of Columbia, American Samoa, Guam, the United
States Virgin Islands, the Commonwealth of the Northern
Mariana Islands, or the Commonwealth of Puerto Rico.’’;
and
(3) by adding after subsection (f) (as added by
section 5241 of this subtitle) the following new sub-
section:
‘‘(g) In section 3716 of this title—
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‘‘(1) ‘creditor agency’ means any agency owed
a claim that seeks to collect that claim through ad-
ministrative offset; and
‘‘(2) ‘payment certifying agency’ means any
agency that has transmitted a voucher to a disburs-
ing official for disbursement.’’.
SEC. 5292. MONITORING AND REPORTING.
(a) GUIDELINES.—The Secretary of the Treasury, in
consultation with concerned Federal agencies, may estab-
lish guidelines, including information on outstanding debt,
to assist agencies in the performance and monitoring of
debt collection activities.
(b) REPORT.—Not later than 3 years after the date
of enactment of this subtitle, the Secretary of the Treas-
ury shall report to the Congress on collection services pro-
vided by Federal agencies or entities collecting debt on be-
half of other Federal agencies under the authorities con-
tained in section 3711(g) of title 31, United States Code,
as added by section 5243 of this subtitle.
(c) AGENCY REPORTS.—Section 3719 of title 31,
United States Code, is amended—
(1) in subsection (a)—
(A) by amending the first sentence to read
as follows: ‘‘In consultation with the Comptrol-
ler General of the United States, the Secretary
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of the Treasury shall prescribe regulations re-
quiring the head of each agency with outstand-
ing nontax claims to prepare and submit to the
Secretary at least once each year a report sum-
marizing the status of loans and accounts re-
ceivable that are managed by the head of the
agency.’’; and
(B) in paragraph (3), by striking ‘‘Direc-
tor’’ and inserting ‘‘Secretary’’; and
(2) in subsection (b), by striking ‘‘Director’’
and inserting ‘‘Secretary’’.
(d) CONSOLIDATION OF REPORTS.—Notwithstanding
any other provision of law, the Secretary of the Treasury
may consolidate reports concerning debt collection other-
wise required to be submitted by the Secretary into one
annual report.
SEC. 5293. REVIEW OF STANDARDS AND POLICIES FOR
COMPROMISE OR WRITE-DOWN OF DELIN-
QUENT DEBTS.
The Director of the Office of Management and Budg-
et shall—
(1) review the standards and policies of each
Federal agency for compromising, writing-down, for-
giving, or discharging indebtedness arising from pro-
grams of the agency;
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(2) determine whether those standards and poli-
cies are consistent and protect the interests of the
United States;
(3) in the case of any Federal agency standard
or policy that the Secretary determines is not con-
sistent or does not protect the interests of the Unit-
ed States, direct the head of the agency to make ap-
propriate modifications to the standard or policy;
and
(4) report annually to the Congress on—
(A) deficiencies in the standards and poli-
cies of Federal agencies for compromising, writ-
ing-down, forgiving, or discharging indebted-
ness; and
(B) progress made in improving those
standards and policies.
PART II—JUSTICE DEBT MANAGEMENT
SEC. 5301. EXPANDED USE OF PRIVATE ATTORNEYS.
(a) ELIMINATION OF LIMITATION ON FEES.—Section
3718(b)(1)(A) of title 31, United States Code, is amended
by striking the fourth sentence.
(b) REPEAL.—Sections 3 and 5 of the Act of October
28, 1986 (popularly known as the Federal Debt Recovery
Act; Public Law 99–578, 100 Stat. 3305) are hereby re-
pealed.
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SEC. 5302. NONJUDICIAL FORECLOSURE OF MORTGAGES.
Chapter 176 of title 28, United States Code, is
amended—
(1) in the table of subchapters at the beginning
of the chapter by adding at the end the following
new item:
‘‘E. Nonjudicial foreclosure ...................................................................... 3401’’;
and
(2) by adding at the end of the chapter the fol-
lowing new subchapter:
‘‘SUBCHAPTER E—NONJUDICIAL
FORECLOSURE
‘‘Sec.
‘‘3401. Definitions.
‘‘3402. Rules of construction.
‘‘3403. Election of procedure.
‘‘3404. Designation of foreclosure trustee.
‘‘3405. Notice of foreclosure sale; statute of limitations.
‘‘3406. Service of notice of foreclosure sale.
‘‘3407. Cancellation of foreclosure sale.
‘‘3408. Stay.
‘‘3409. Conduct of sale; postponement.
‘‘3410. Transfer of title and possession.
‘‘3411. Record of foreclosure and sale.
‘‘3412. Effect of sale.
‘‘3413. Disposition of sale proceeds.
‘‘3414. Deficiency judgment.
‘‘§ 3401. Definitions
‘‘As used in this subchapter—
‘‘(1) ‘agency’ means—
‘‘(A) an Executive department, as set forth
in section 101 of title 5, United States Code;
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‘‘(B) an independent establishment, as de-
fined in section 104 of title 5, United States
Code (except that it shall not include the Gen-
eral Accounting Office);
‘‘(C) a military department, as set forth in
section 102 of title 5, United States Code; and
‘‘(D) a wholly owned government corpora-
tion, as defined in section 9101(3) of title 31,
United States Code;
‘‘(2) ‘agency head’ means the head and any as-
sistant head of an agency, and may upon the des-
ignation by the head of an agency include the chief
official of any principal division of an agency or any
other employee of an agency;
‘‘(3) ‘bona fide purchaser’ means a purchaser
for value in good faith and without notice of any ad-
verse claim who acquires the seller’s interest free of
any adverse claim;
‘‘(4) ‘debt instrument’ means a note, mortgage
bond, guaranty, or other instrument creating a debt
or other obligation, including any instrument incor-
porated by reference therein and any instrument or
agreement amending or modifying a debt instru-
ment;
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‘‘(5) ‘file’ or ‘filing’ means docketing, indexing,
recording, or registering, or any other requirement
for perfecting a mortgage or a judgment;
‘‘(6) ‘foreclosure trustee’ means an individual,
partnership, association, or corporation, or any em-
ployee thereof, including a successor, appointed by
the agency head to conduct a foreclosure sale pursu-
ant to this subchapter;
‘‘(7) ‘mortgage’ means a deed of trust, deed to
secure debt, security agreement, or any other form
of instrument under which any interest in real prop-
erty, including leaseholds, life estates, reversionary
interests, and any other estates under applicable law
is conveyed in trust, mortgaged, encumbered,
pledged, or otherwise rendered subject to a lien, for
the purpose of securing the payment of money or the
performance of any other obligation;
‘‘(8) ‘of record’ means an interest recorded pur-
suant to Federal or State statutes that provide for
official recording of deeds, mortgages, and judg-
ments, and that establish the effect of such records
as notice to creditors, purchasers, and other inter-
ested persons;
‘‘(9) ‘owner’ means any person who has an
ownership interest in property and includes heirs,
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devisees, executors, administrators, and other per-
sonal representatives, and trustees of testamentary
trusts if the owner of record is deceased;
‘‘(10) ‘sale’ means a sale conducted pursuant to
this subchapter, unless the context requires other-
wise; and
‘‘(11) ‘security property’ means real property,
or any interest in real property including leaseholds,
life estates, reversionary interests, and any other es-
tates under applicable State law that secure a mort-
gage.
‘‘§ 3402. Rules of construction
‘‘(a) IN GENERAL.—If an agency head elects to pro-
ceed under this subchapter, this subchapter shall apply
and the provisions of this subchapter shall govern in the
event of a conflict with any other provision of Federal law
or State law.
‘‘(b) LIMITATION.—This subchapter shall not be con-
strued to supersede or modify the operation of—
‘‘(1) the lease-back/buy-back provisions under
section 335 of the Consolidated Farm and Rural De-
velopment Act, or regulations promulgated there-
under; or
‘‘(2) The Multifamily Mortgage Foreclosure Act
of 1981.
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‘‘(c) EFFECT ON OTHER LAWS.—This subchapter
shall not be construed to curtail or limit the rights of the
United States or any of its agencies—
‘‘(1) to foreclose a mortgage under any other
provision of Federal law or State law; or
‘‘(2) to enforce any right under Federal law or
State law in lieu of or in addition to foreclosure, in-
cluding any right to obtain a monetary judgment.
‘‘(d) APPLICATION TO MORTGAGES.—The provisions
of this subchapter may be used to foreclose any mortgage,
whether executed prior or subsequent to the effective date
of this subchapter.
‘‘§ 3403. Election of procedure
‘‘(a) SECURITY
PROPERTY
SUBJECT
TO
FORE-
CLOSURE.—An agency head may foreclose a mortgage
upon the breach of a covenant or condition in a debt in-
strument or mortgage for which acceleration or foreclosure
is authorized. An agency head may not institute fore-
closure proceedings on the mortgage under any other pro-
vision of law, or refer such mortgage for litigation, during
the pendency of foreclosure proceedings pursuant to this
subchapter.
‘‘(b) EFFECT OF CANCELLATION OF SALE.—If a
foreclosure sale is canceled pursuant to section 3407, the
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agency head may thereafter foreclose on the security prop-
erty in any manner authorized by law.
‘‘§ 3404. Designation of foreclosure trustee
‘‘(a) IN GENERAL.—An agency head shall designate
a foreclosure trustee who shall supersede any trustee des-
ignated in the mortgage. A foreclosure trustee designated
under this section shall have a nonjudicial power of sale
pursuant to this subchapter.
‘‘(b) DESIGNATION OF FORECLOSURE TRUSTEE.—
‘‘(1) An agency head may designate as fore-
closure trustee—
‘‘(A) an officer or employee of the agency;
‘‘(B) an individual who is a resident of the
State in which the security property is located;
or
‘‘(C) a partnership, association, or corpora-
tion, if such entity is authorized to transact
business under the laws of the State in which
the security property is located.
‘‘(2) The agency head is authorized to enter
into personal services and other contracts not incon-
sistent with this subchapter.
‘‘(c) METHOD OF DESIGNATION.—An agency head
shall designate the foreclosure trustee in writing. The fore-
closure trustee may be designated by name, title, or posi-
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tion. An agency head may designate one or more fore-
closure trustees for the purpose of proceedings with mul-
tiple foreclosures or a class of foreclosures.
‘‘(d) AVAILABILITY OF DESIGNATION.—An agency
head may designate such foreclosure trustees as the agen-
cy head deems necessary to carry out the purposes of this
subchapter.
‘‘(e) MULTIPLE FORECLOSURE TRUSTEES AUTHOR-
IZED.—An agency head may designate multiple fore-
closure trustees for different tracts of a secured property.
‘‘(f) REMOVAL OF FORECLOSURE TRUSTEES; SUC-
CESSOR
FORECLOSURE
TRUSTEES.—An agency head
may, with or without cause or notice, remove a foreclosure
trustee and designate a successor trustee as provided in
this section. The foreclosure sale shall continue without
prejudice notwithstanding the removal of the foreclosure
trustee and designation of a successor foreclosure trustee.
Nothing in this section shall be construed to prohibit a
successor foreclosure trustee from postponing the fore-
closure sale in accordance with this subchapter.
‘‘§ 3405. Notice of foreclosure sale; statute of limita-
tions
‘‘(a) IN GENERAL.—
‘‘(1) Not earlier than 21 days nor later than
ten years after acceleration of a debt instrument or
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demand on a guaranty, the foreclosure trustee shall
serve a notice of foreclosure sale in accordance with
this subchapter.
‘‘(2) For purposes of computing the time period
under paragraph (1), there shall be excluded all pe-
riods during which there is in effect—
‘‘(A) a judicially imposed stay of fore-
closure; or
‘‘(B) a stay imposed by section 362 of title
11, United States Code.
‘‘(3) In the event of partial payment or written
acknowledgement of the debt after acceleration of
the debt instrument, the right to foreclose shall be
deemed to accrue again at the time of each such
payment or acknowledgement.
‘‘(b) NOTICE OF FORECLOSURE SALE.—The notice
of foreclosure sale shall include—
‘‘(1) the name, title, and business address of
the foreclosure trustee as of the date of the notice;
‘‘(2) the names of the original parties to the
debt instrument and the mortgage, and any assign-
ees of the mortgagor of record;
‘‘(3) the street address or location of the secu-
rity property, and a generally accepted designation
used to describe the security property, or so much
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thereof as is to be offered for sale, sufficient to iden-
tify the property to be sold;
‘‘(4) the date of the mortgage, the office in
which the mortgage is filed, and the location of the
filing of the mortgage;
‘‘(5) the default or defaults upon which fore-
closure is based, and the date of the acceleration of
the debt instrument;
‘‘(6) the date, time, and place of the foreclosure
sale;
‘‘(7) a statement that the foreclosure is being
conducted in accordance with this subchapter;
‘‘(8) the types of costs, if any, to be paid by the
purchaser upon transfer of title; and
‘‘(9) the terms and conditions of sale, including
the method and time of payment of the foreclosure
purchase price.
‘‘§ 3406. Service of notice of foreclosure sale
‘‘(a) RECORD NOTICE.—At least 21 days prior to the
date of the foreclosure sale, the notice of foreclosure sale
required by section 3405 shall be filed in the manner au-
thorized for filing a notice of an action concerning real
property according to the law of the State where the secu-
rity property is located or, if none, in the manner author-
ized by section 3201 of this chapter.
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‘‘(b) NOTICE BY MAIL.—
‘‘(1) At least 21 days prior to the date of the
foreclosure sale, the notice set forth in section 3405
shall be sent by registered or certified mail, return
receipt requested—
‘‘(A) to the current owner of record of the
security property as the record appears on the
date that the notice of foreclosure sale is re-
corded pursuant to subsection (a);
‘‘(B) to all debtors, including the mortga-
gor, assignees of the mortgagor and guarantors
of the debt instrument;
‘‘(C) to all persons having liens, interests
or encumbrances of record upon the security
property, as the record appears on the date that
the notice of foreclosure sale is recorded pursu-
ant to subsection (a); and
‘‘(D) to any occupants of the security
property.
If the names of the occupants of the security prop-
erty are not known to the agency, or the security
property has more than one dwelling unit, the notice
shall be posted at the security property.
‘‘(2) The notice shall be sent to the debtor at
the address, if any, set forth in the debt instrument
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or mortgage as the place to which notice is to be
sent, and if different, to the debtor’s last known ad-
dress as shown in the mortgage record of the agen-
cy. The notice shall be sent to any person other than
the debtor to that person’s address of record or, if
there is no address of record, to any address at
which the agency in good faith believes the notice is
likely to come to that person’s attention.
‘‘(3) Notice by mail pursuant to this subsection
shall be effective upon mailing.
‘‘(c) NOTICE BY PUBLICATION.—The notice of the
foreclosure sale shall be published at least once a week
for each of three successive weeks prior to the sale in at
least one newspaper of general circulation in any county
or counties in which the security property is located. If
there is no newspaper published at least weekly that has
a general circulation in at least one county in which the
security property is located, copies of the notice of fore-
closure sale shall instead be posted at least 21 days prior
to the sale at the courthouse of any county or counties
in which the property is located and the place where the
sale is to be held.
‘‘§ 3407. Cancellation of foreclosure sale
‘‘(a) IN GENERAL.—At any time prior to the fore-
closure sale, the foreclosure trustee shall cancel the sale—
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‘‘(1) if the debtor or the holder of any subordi-
nate interest in the security property tenders the
performance due under the debt instrument and
mortgage, including any amounts due because of the
exercise of the right to accelerate, and the expenses
of proceeding to foreclosure incurred to the time of
tender; or
‘‘(2) if the security property is a dwelling of
four units or fewer, and the debtor—
‘‘(A) pays or tenders all sums which would
have been due at the time of tender in the ab-
sence of any acceleration;
‘‘(B) performs any other obligation which
would have been required in the absence of any
acceleration; and
‘‘(C) pays or tenders all costs of fore-
closure incurred for which payment from the
proceeds of the sale would be allowed; or
‘‘(3) for any reason approved by the agency
head.
‘‘(b) LIMITATION.—The debtor may not, without the
approval of the agency head, cure the default under sub-
section (a)(2) if, within the preceding 12 months, the debt-
or has cured a default after being served with a notice
of foreclosure sale pursuant to this subchapter.
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‘‘(c) NOTICE OF CANCELLATION.—The foreclosure
trustee shall file a notice of the cancellation in the same
place and manner provided for the filing of the notice of
foreclosure sale under section 3406(a).
‘‘§ 3408. Stay
‘‘If, prior to the time of sale, foreclosure proceedings
under this subchapter are stayed in any manner, including
the filing of bankruptcy, no person may thereafter cure
the default under the provisions of section 3407(a)(2). If
the default is not cured at the time a stay is terminated,
the foreclosure trustee shall proceed to sell the security
property as provided in this subchapter.
‘‘§ 3409. Conduct of sale; postponement
‘‘(a) SALE PROCEDURES.—Foreclosure sale pursuant
to this subchapter shall be at public auction and shall be
scheduled to begin at a time between the hours of 9:00
a.m. and 4:00 p.m. local time. The foreclosure sale shall
be held at the location specified in the notice of foreclosure
sale, which shall be a location where real estate foreclosure
auctions are customarily held in the county or one of the
counties in which the property to be sold is located or at
a courthouse therein, or upon the property to be sold. Sale
of security property situated in two or more counties may
be held in any one of the counties in which any part of
the security property is situated. The foreclosure trustee
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may designate the order in which multiple tracts of secu-
rity property are sold.
‘‘(b) BIDDING REQUIREMENTS.—Written one-price
sealed bids shall be accepted by the foreclosure trustee,
if submitted by the agency head or other persons for entry
by announcement by the foreclosure trustee at the sale.
The sealed bids shall be submitted in accordance with the
terms set forth in the notice of foreclosure sale. The agen-
cy head or any other person may bid at the foreclosure
sale, even if the agency head or other person previously
submitted a written one-price bid. The agency head may
bid a credit against the debt due without the tender or
payment of cash. The foreclosure trustee may serve as
auctioneer, or may employ an auctioneer who may be paid
from the sale proceeds. If an auctioneer is employed, the
foreclosure trustee is not required to attend the sale. The
foreclosure trustee or an auctioneer may bid as directed
by the agency head.
‘‘(c) POSTPONEMENT
OF SALE.—The foreclosure
trustee shall have discretion, prior to or at the time of
sale, to postpone the foreclosure sale. The foreclosure
trustee may postpone a sale to a later hour the same day
by announcing or posting the new time and place of the
foreclosure sale at the time and place originally scheduled
for the foreclosure sale. The foreclosure trustee may in-
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stead postpone the foreclosure sale for not fewer than 9
nor more than 31 days, by serving notice that the fore-
closure sale has been postponed to a specified date, and
the notice may include any revisions the foreclosure trust-
ee deems appropriate. The notice shall be served by publi-
cation, mailing, and posting in accordance with section
3406(b) and (c), except that publication may be made on
any of three separate days prior to the new date of the
foreclosure sale, and mailing may be made at any time
at least 7 days prior to the new date of the foreclosure
sale.
‘‘(d) LIABILITY OF SUCCESSFUL BIDDER WHO FAILS
TO COMPLY.—The foreclosure trustee may require a bid-
der to make a cash deposit before the bid is accepted. The
amount or percentage of the cash deposit shall be stated
by the foreclosure trustee in the notice of foreclosure sale.
A successful bidder at the foreclosure sale who fails to
comply with the terms of the sale shall forfeit the cash
deposit or, at the election of the foreclosure trustee, shall
be liable to the agency on a subsequent sale of the prop-
erty for all net losses incurred by the agency as a result
of such failure.
‘‘(e) EFFECT OF SALE.—Any foreclosure sale held in
accordance with this subchapter shall be conclusively pre-
sumed to have been conducted in a legal, fair, and com-
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mercially reasonable manner. The sale price shall be con-
clusively presumed to constitute the reasonably equivalent
value of the security property.
‘‘§ 3410. Transfer of title and possession
‘‘(a) DEED.—After receipt of the purchase price in
accordance with the terms of the sale as provided in the
notice of foreclosure sale, the foreclosure trustee shall exe-
cute and deliver to the purchaser a deed conveying the
security property to the purchaser that grants and conveys
title to the security property without warranty or cov-
enants to the purchaser. The execution of the foreclosure
trustee’s deed shall have the effect of conveying all of the
right, title, and interest in the security property covered
by the mortgage. Notwithstanding any other law to the
contrary, the foreclosure trustee’s deed shall be a convey-
ance of the security property and not a quitclaim. No judi-
cial proceeding shall be required ancillary or supple-
mentary to the procedures provided in this subchapter to
establish the validity of the conveyance.
‘‘(b) DEATH OF PURCHASER PRIOR TO CONSUMMA-
TION OF SALE.—If a purchaser dies before execution and
delivery of the deed conveying the security property to the
purchaser, the foreclosure trustee shall execute and deliver
the deed to the representative of the purchaser’s estate
upon payment of the purchase price in accordance with
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the terms of sale. Such delivery to the representative of
the purchaser’s estate shall have the same effect as if ac-
complished during the lifetime of the purchaser.
‘‘(c) PURCHASER CONSIDERED BONA FIDE PUR-
CHASER WITHOUT NOTICE.—The purchaser of property
under this subchapter shall be presumed to be a bona fide
purchaser without notice of defects, if any, in the title con-
veyed to the purchaser.
‘‘(d) POSSESSION BY PURCHASER; CONTINUING IN-
TERESTS.—A purchaser at a foreclosure sale conducted
pursuant to this subchapter shall be entitled to possession
upon passage of title to the security property, subject to
any interest or interests senior to that of the mortgage.
The right to possession of any person without an interest
senior to the mortgage who is in possession of the property
shall terminate immediately upon the passage of title to
the security property, and the person shall vacate the secu-
rity property immediately. The purchaser shall be entitled
to take any steps available under Federal law or State law
to obtain possession.
‘‘§ 3411. Record of foreclosure and sale
‘‘(a) RECITAL
REQUIREMENTS.—The foreclosure
trustee shall recite in the deed to the purchaser, or in an
addendum to the foreclosure trustee’s deed, or shall pre-
pare an affidavit stating—
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‘‘(1) the date, time, and place of sale;
‘‘(2) the date of the mortgage, the office in
which the mortgage is filed, and the location of the
filing of the mortgage;
‘‘(3) the persons served with the notice of fore-
closure sale;
‘‘(4) the date and place of filing of the notice
of foreclosure sale under section 3406(a);
‘‘(5) that the foreclosure was conducted in ac-
cordance with the provisions of this subchapter; and
‘‘(6) the sale amount.
‘‘(b) EFFECT OF RECITALS.—The recitals set forth
in subsection (a) shall be prima facie evidence of the truth
of such recitals. Compliance with the requirements of sub-
section (a) shall create a conclusive presumption of the
validity of the sale in favor of bona fide purchasers and
encumbrancers for value without notice.
‘‘(c) DEED TO BE ACCEPTED FOR FILING.—The
register of deeds or other appropriate official of the county
or counties where real estate deeds are regularly filed shall
accept for filing and shall file the foreclosure trustee’s
deed and affidavit, if any, and any other instruments sub-
mitted for filing in relation to the foreclosure of the secu-
rity property under this subchapter.
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‘‘§ 3412. Effect of sale
‘‘A sale conducted under this subchapter to a bona
fide purchaser shall bar all claims upon the security prop-
erty by—
‘‘(1) any person to whom the notice of fore-
closure sale was mailed as provided in this sub-
chapter who claims an interest in the property sub-
ordinate to that of the mortgage, and the heir, devi-
see, executor, administrator, successor, or assignee
claiming under any such person;
‘‘(2) any person claiming any interest in the
property subordinate to that of the mortgage, if such
person had actual knowledge of the sale;
‘‘(3) any person so claiming, whose assignment,
mortgage, or other conveyance was not filed in the
proper place for filing, or whose judgment or decree
was not filed in the proper place for filing, prior to
the date of filing of the notice of foreclosure sale as
required by section 3406(a), and the heir, devisee,
executor, administrator, successor, or assignee of
such a person; or
‘‘(4) any other person claiming under a statu-
tory lien or encumbrance not required to be filed
and attaching to the title or interest of any person
designated in any of the foregoing subsections of
this section.
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‘‘§ 3413. Disposition of sale proceeds
‘‘(a) DISTRIBUTION OF SALE PROCEEDS.—The fore-
closure trustee shall distribute the proceeds of the fore-
closure sale in the following order:
‘‘(1)(A) First, to pay the commission of the
foreclosure trustee, other than an agency employee,
the greater of—
‘‘(i) the sum of—
‘‘(I) 3 percent of the first $1,000 col-
lected, plus
‘‘(II) 1.5 percent on the excess of any
sum collected over $1,000; or
‘‘(ii) $250.
‘‘(B) The amounts described in subparagraph
(A)(i) shall be computed on the gross proceeds of all
security property sold at a single sale.
‘‘(2) Thereafter, to pay the expense of any auc-
tioneer employed by the foreclosure trustee, if any,
except that the commission payable to the fore-
closure trustee pursuant to paragraph (1) shall be
reduced by the amount paid to an auctioneer, unless
the agency head determines that such reduction
would adversely affect the ability of the agency head
to retain qualified foreclosure trustees or auc-
tioneers.
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‘‘(3) Thereafter, to pay for the costs of fore-
closure, including—
‘‘(A) reasonable and necessary advertising
costs and postage incurred in giving notice pur-
suant to section 3406;
‘‘(B) mileage for posting notices and for
the foreclosure trustee’s or auctioneer’s attend-
ance at the sale at the rate provided in section
1921 of title 28, United States Code, for mile-
age by the most reasonable road distance;
‘‘(C) reasonable and necessary costs actu-
ally incurred in connection with any search of
title and lien records; and
‘‘(D) necessary costs incurred by the fore-
closure trustee to file documents.
‘‘(4) Thereafter, to pay valid real property tax
liens or assessments, if required by the notice of
foreclosure sale.
‘‘(5) Thereafter, to pay any liens senior to the
mortgage, if required by the notice of foreclosure
sale.
‘‘(6) Thereafter, to pay service charges and ad-
vancements for taxes, assessments, and property in-
surance premiums.
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‘‘(7) Thereafter, to pay late charges and other
administrative costs and the principal and interest
balances secured by the mortgage, including expendi-
tures for the necessary protection, preservation, and
repair of the security property as authorized under
the debt instrument or mortgage and interest there-
on if provided for in the debt instrument or mort-
gage, pursuant to the agency’s procedure.
‘‘(b) INSUFFICIENT PROCEEDS.—In the event there
are no proceeds of sale or the proceeds are insufficient
to pay the costs and expenses set forth in subsection (a),
the agency head shall pay such costs and expenses as au-
thorized by applicable law.
‘‘(c) SURPLUS MONIES.—
‘‘(1) After making the payments required by
subsection (a), the foreclosure trustee shall—
‘‘(A) distribute any surplus to pay liens in
the order of priority under Federal law or the
law of the State where the security property is
located; and
‘‘(B) pay to the person who was the owner
of record on the date the notice of foreclosure
sale was filed the balance, if any, after any pay-
ments made pursuant to paragraph (1).
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‘‘(2) If the person to whom such surplus is to
be paid cannot be located, or if the surplus available
is insufficient to pay all claimants and the claimants
cannot agree on the distribution of the surplus, that
portion of the sale proceeds may be deposited by the
foreclosure trustee with an appropriate official au-
thorized under law to receive funds under such cir-
cumstances. If such a procedure for the deposit of
disputed funds is not available, and the foreclosure
trustee files a bill of interpleader or is sued as a
stakeholder to determine entitlement to such funds,
the foreclosure trustee’s necessary costs in taking or
defending such action shall be deducted first from
the disputed funds.
‘‘§ 3414. Deficiency judgment
‘‘(a) IN GENERAL.—If after deducting the disburse-
ments described in section 3413, the price at which the
security property is sold at a foreclosure sale is insufficient
to pay the unpaid balance of the debt secured by the secu-
rity property, counsel for the United States may com-
mence an action or actions against any or all debtors to
recover the deficiency, unless specifically prohibited by the
mortgage. The United States is also entitled to recover
any amount authorized by section 3011 and costs of the
action.
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‘‘(b) LIMITATION.—Any action commenced to recover
the deficiency shall be brought within 6 years of the last
sale of security property.
‘‘(c) CREDITS.—The amount payable by a private
mortgage guaranty insurer shall be credited to the account
of the debtor prior to the commencement of an action for
any deficiency owed by the debtor. Nothing in this sub-
section shall curtail or limit the subrogation rights of a
private mortgage guaranty insurer.’’.
TITLE VI—COMMITTEE ON
INTERNATIONAL RELATIONS
Subtitle A—Recovery Of Costs Of
Certain Health Care Services
SEC. 6001. RECOVERY OF COSTS OF HEALTH CARE SERV-
ICES FOR PERSONNEL OF THE FOREIGN
SERVICE 
OF 
THE 
UNITED 
STATES 
AND
OTHER ELIGIBLE INDIVIDUALS.
(a) AUTHORITIES.—Section 904 of the Foreign Serv-
ice Act of 1980 (22 U.S.C. 4084) is amended—
(1) in subsection (a) by—
(A) striking ‘‘and’’ before ‘‘members of the
families of such members and employees’’; and
(B) by inserting immediately before the pe-
riod ‘‘, and for care provided abroad) such
other persons as are designated by the Sec-
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retary of State, except that such persons shall
be considered persons other than covered bene-
ficiaries for purposes of subsections (g) and
(h)’’;
(2) in subsection (d) by inserting ‘‘, subject to
the provisions of subsections (g) and (h)’’ after
‘‘treatment’’; and
(3) by adding the following new subsections:
‘‘(g)(1) In the case of a person who is a covered bene-
ficiary, the Secretary of State is authorized to collect from
a third-party payer the reasonable costs incurred by the
Department of State on behalf of such person for health
care services to the same extent that the covered bene-
ficiary would be eligible to receive reimbursement or in-
demnification from the third-party payer for such costs.
‘‘(2) If the insurance policy, plan, contract, or similar
agreement of that third-party payer includes a require-
ment for a deductible or copayment by the beneficiary of
the plan, then the Secretary of State may collect from the
third-party payer only the reasonable costs of the care pro-
vided less the deductible or copayment amount.
‘‘(3) A covered beneficiary shall not be required to
pay any deductible or copayment for health care services
under this subsection.
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‘‘(4) No provision of any insurance, medical service,
or health plan contract or agreement having the effect of
excluding from coverage or limiting payment of charges
for care in the following circumstances shall operate to
prevent collection by the Secretary of State under para-
graph (1)—
‘‘(A) care provided directly or indirectly by a
governmental entity;
‘‘(B) care provided to an individual who has not
paid a required deductible or copayment; or
‘‘(C) care provided by a provider with which the
third-party payer has no participation agreement.
‘‘(5) No law of any State, or of any political subdivi-
sion of a State, and no provision of any contract or agree-
ment shall operate to prevent or hinder recovery or collec-
tion by the United States under this section.
‘‘(6) As to the authority provided in paragraph (1)
of this subsection—
‘‘(A) the United States shall be subrogated to
any right or claim that the covered beneficiary may
have against a third-party payer;
‘‘(B) the United States may institute and pros-
ecute legal proceedings against a third-party payer
to enforce a right of the United States under this
subsection; and
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‘‘(C) the Secretary may compromise, settle, or
waive a claim of the United States under this sub-
section.
‘‘(7) The Secretary shall prescribe regulations for the
administration of this subsection and subsection (h). Such
regulations shall provide for computation of the reasonable
cost of health care services.
‘‘(8) Regulations prescribed under this subsection
shall provide that medical records of a covered beneficiary
receiving health care under this subsection shall be made
available for inspection and review by representatives of
the payer from which collection by the United States is
sought for the sole purpose of permitting the third party
to verify—
‘‘(A) that the care or services for which recov-
ery or collection is sought were furnished to the cov-
ered beneficiary; and
‘‘(B) that the provisions of such care or services
to the covered beneficiary meets criteria generally
applicable under the health plan contract involved,
except that this paragraph shall be subject to the
provisions of paragraphs (2) and (4).
‘‘(9) Amounts collected under this subsection or
under subsection (h) from a third party payer or from any
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other payer shall be deposited in the Treasury as a mis-
cellaneous offsetting receipt.
‘‘(10) For purposes of this section—
‘‘(A) the term ‘covered beneficiary’ means an
individual eligible to receive health care under this
section whose health care costs are to be paid by a
third-party payer under a contractual agreement
with such payer;
‘‘(B) the term ‘services’, as used in ‘health care
services’ includes products; and
‘‘(C) the term ‘third-party payer’ means an en-
tity that provides a fee-for-service insurance policy,
contract, or similar agreement through the Federal
Employees Health Benefit program, under which the
expenses of health care services for individuals are
paid.
‘‘(h) In the case of a person, other than a covered
beneficiary, who receives health care services pursuant to
this section, the Secretary of State is authorized to collect
from such person the reasonable costs of health care serv-
ices incurred by the Department of State on behalf of such
person. The United States shall have the same rights
against persons subject to the provisions of this subsection
as against third-party payers covered by subsection (g).’’.
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(b) EFFECTIVE DATE.—The authorities of this sec-
tion shall be effective beginning on the date of the enact-
ment of this Act.
Subtitle B—Enactment Into Law of
Division A of H.R. 1561
SEC. 6101. ENACTMENT INTO LAW OF DIVISION A OF H.R.
1561.
Division A of H.R. 1561, as passed the House of
Representatives on June 8, 1995 (relating to consolidation
of foreign affairs agencies), is hereby enacted into law.
Subtitle 
C—Cuban 
Liberty 
and
Democratic Solidarity (LIBER-
TAD) Act of 1995
SEC. 6201. SHORT TITLE.
This subtitle may be cited as the ‘‘Cuban Liberty and
Democratic Solidarity (LIBERTAD) Act of 1995’’.
SEC. 6202. FINDINGS.
The Congress makes the following findings:
(1) The economy of Cuba has experienced a de-
cline of at least 60 percent in the last 5 years as a
result of—
(A) the end of its subsidization by the
former Soviet Union of between 5 billion and 6
billion dollars annually;
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(B) 36 years of Communist tyranny and
economic mismanagement by the Castro govern-
ment;
(C) the extreme decline in trade between
Cuba and the countries of the former Soviet
bloc; and
(D) the stated policy of the Russian Gov-
ernment and the countries of the former Soviet
bloc to conduct economic relations with Cuba
on strictly commercial terms.
(2) At the same time, the welfare and health of
the Cuban people have substantially deteriorated as
a result of this economic decline and the refusal of
the Castro regime to permit free and fair democratic
elections in Cuba.
(3) The Castro regime has made it abundantly
clear that it will not engage in any substantive polit-
ical reforms that would lead to democracy, a market
economy, or an economic recovery.
(4) The repression of the Cuban people, includ-
ing a ban on free and fair democratic elections, and
continuing violations of fundamental human rights
have isolated the Cuban regime as the only com-
pletely nondemocratic government in the Western
Hemisphere.
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(5) As long as free elections are not held in
Cuba, the economic condition of the country and the
welfare of the Cuban people will not improve in any
significant way.
(6) The totalitarian nature of the Castro regime
has deprived the Cuban people of any peaceful
means to improve their condition and has led thou-
sands of Cuban citizens to risk or lose their lives in
dangerous attempts to escape from Cuba to freedom.
(7) Radio Marti and Television Marti have both
been effective vehicles for providing the people of
Cuba with news and information and have helped to
bolster the morale of the people of Cuba living under
tyranny.
(8) The consistent policy of the United States
towards Cuba since the beginning of the Castro re-
gime, carried out by both Democratic and Repub-
lican administrations, has sought to keep faith with
the people of Cuba, and has been effective in sanc-
tioning the totalitarian Castro regime.
(9) The United States has shown a deep com-
mitment, and considers it a moral obligation, to pro-
mote and protect human rights and fundamental
freedoms as expressed in the Charter of the United
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Nations and in the Universal Declaration of Human
Rights.
(10) The Congress has historically and consist-
ently manifested its solidarity and the solidarity of
the American people with the democratic aspirations
of the Cuban people.
(11) The Cuban Democracy Act of 1992 calls
upon the President to encourage the governments of
countries that conduct trade with Cuba to restrict
their trade and credit relations with Cuba in a man-
ner consistent with the purposes of that Act.
(12) The 1992 FREEDOM Support Act re-
quires that the President, in providing economic as-
sistance to Russia and the emerging Eurasian de-
mocracies, take into account the extent to which
they are acting to ‘‘terminate support for the com-
munist regime in Cuba, including removal of troops,
closing military facilities, and ceasing trade subsidies
and economic, nuclear, and other assistance’’.
(13) The Cuban Government engages in the il-
legal international narcotics trade and harbors fugi-
tives from justice in the United States.
(14) The Castro government threatens inter-
national peace and security by engaging in acts of
armed subversion and terrorism such as the training
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and supplying of groups dedicated to international
violence.
(15) The Castro government has utilized from
its inception and continues to utilize torture in var-
ious forms (including by psychiatry), as well as exe-
cution, exile, confiscation, political imprisonment,
and other forms of terror and repression, as means
of retaining power.
(16) Fidel Castro has defined democratic plu-
ralism as ‘‘pluralistic garbage’’ and continues to
make clear that he has no intention of tolerating the
democratization of Cuban society.
(17) The Castro government holds innocent Cu-
bans hostage in Cuba by no fault of the hostages
themselves solely because relatives have escaped the
country.
(18) Although a signatory state to the 1928
Inter-American Convention on Asylum and the
International Covenant on Civil and Political Rights
(which protects the right to leave one’s own coun-
try), Cuba nevertheless surrounds embassies in its
capital by armed forces to thwart the right of its
citizens to seek asylum and systematically denies
that right to the Cuban people, punishing them by
imprisonment for seeking to leave the country and
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killing them for attempting to do so (as dem-
onstrated in the case of the confirmed murder of
over 40 men, women, and children who were seeking
to leave Cuba on July 13, 1994).
(19) The Castro government continues to utilize
blackmail, such as the immigration crisis with which
it threatened the United States in the summer of
1994, and other unacceptable and illegal forms of
conduct to influence the actions of sovereign states
in the Western Hemisphere in violation of the Char-
ter of the Organization of American States and
other international agreements and international
law.
(20) The United Nations Commission on
Human Rights has repeatedly reported on the unac-
ceptable human rights situation in Cuba and has
taken the extraordinary step of appointing a Special
Rapporteur.
(21) The Cuban Government has consistently
refused access to the Special Rapporteur and for-
mally expressed its decision not to ‘‘implement so
much as one comma’’ of the United Nations Resolu-
tions appointing the Rapporteur.
(22) The United Nations General Assembly
passed Resolution 1992/70 on December 4, 1992,
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Resolution 1993/48/142 on December 20, 1993, and
Resolution 1994/49/544 on October 19, 1994, ref-
erencing the Special Rapporteur’s reports to the
United Nations and condemning ‘‘violations of
human rights and fundamental freedoms’’ in Cuba.
(23) Article 39 of Chapter VII of the United
Nations Charter provides that the United Nations
Security Council ‘‘shall determine the existence of
any threat to the peace, breach of the peace, or act
of aggression and shall make recommendations, or
decide what measures shall be taken . . ., to main-
tain or restore international peace and security.’’.
(24) The United Nations has determined that
massive and systematic violations of human rights
may constitute a ‘‘threat to peace’’ under Article 39
and has imposed sanctions due to such violations of
human rights in the cases of Rhodesia, South Africa,
Iraq, and the former Yugoslavia.
(25) In the case of Haiti, a neighbor of Cuba
not as close to the United States as Cuba, the
United States led an effort to obtain and did obtain
a United Nations Security Council embargo and
blockade against that country due to the existence of
a military dictatorship in power less than 3 years.
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(26) United Nations Security Council Resolu-
tion 940 of July 31, 1994, subsequently authorized
the use of ‘‘all necessary means’’ to restore the
‘‘democratically elected government of Haiti’’, and
the democratically elected government of Haiti was
restored to power on October 15, 1994.
(27) The Cuban people deserve to be assisted in
a decisive manner to end the tyranny that has op-
pressed them for 36 years and the continued failure
to do so constitutes ethically improper conduct by
the international community.
(28) For the past 36 years, the Cuban Govern-
ment has posed and continues to pose a national se-
curity threat to the United States.
SEC. 6203. PURPOSES.
The purposes of this subtitle are as follows:
(1) To assist the Cuban people in regaining
their freedom and prosperity, as well as in joining
the community of democracies that are flourishing in
the Western Hemisphere.
(2) To seek international sanctions against the
Castro government in Cuba.
(3) To encourage the holding of free and fair
democratic elections in Cuba, conducted under the
supervision of internationally recognized observers.
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(4) To develop a plan for furnishing assistance
to a transition government and, subsequently, to a
democratically elected government when such gov-
ernments meet the eligibility requirements of this
subtitle.
(5) To protect property rights abroad of United
States nationals.
(6) To provide for the continued national secu-
rity of the United States in the face of continuing
threats from the Castro government of terrorism,
theft of property from United States nationals, and
domestic repression from which refugees flee to
United States shores.
SEC. 6204. DEFINITIONS.
As used in this subtitle, the following terms have the
following meanings:
(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional com-
mittees’’ means the Committee on International Re-
lations, the Committee on Ways and Means, and the
Committee on Appropriations of the House of Rep-
resentatives and the Committee on Foreign Rela-
tions, the Committee on Finance, and the Commit-
tee on Appropriations of the Senate.
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(2) COMMERCIAL ACTIVITY.—The term ‘‘com-
mercial activity’’ has the meaning given that term in
section 1603(d) of title 28, United States Code.
(3) CONFISCATED.—As used in parts 1 and 3,
the term ‘‘confiscated’’ refers to—
(A) the nationalization, expropriation, or
other seizure by the Cuban Government of own-
ership or control of property, on or after Janu-
ary 1, 1959—
(i) without the property having been
returned or adequate and effective com-
pensation provided; or
(ii) without the claim to the property
having been settled pursuant to an inter-
national claims settlement agreement or
other mutually accepted settlement proce-
dure; and
(B) the repudiation by the Cuban Govern-
ment of, the default by the Cuban Government
on, or the failure by the Cuban Government to
pay, on or after January 1, 1959—
(i) a debt of any enterprise which has
been nationalized, expropriated, or other-
wise taken by the Cuban Government;
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(ii) a debt which is a charge on prop-
erty nationalized, expropriated, or other-
wise taken by the Cuban Government; or
(iii) a debt which was incurred by the
Cuban Government in satisfaction or set-
tlement of a confiscated property claim.
(4) CUBAN
GOVERNMENT.—(A) The term
‘‘Cuban Government’’ includes the government of
any political subdivision of Cuba, and any agency or
instrumentality of the Government of Cuba.
(B) For purposes of subparagraph (A), the
term ‘‘agency or instrumentality of the Government
of Cuba’’ means an agency or instrumentality of a
foreign state as defined in section 1603(b) of title
28, United States Code, with ‘‘Cuba’’ substituted for
‘‘a foreign state’’ each place it appears in such sec-
tion.
(5) DEMOCRATICALLY ELECTED GOVERNMENT
IN CUBA.—The term ‘‘democratically elected govern-
ment in Cuba’’ means a government determined by
the President to have met the requirements of sec-
tion 206.
(6) ECONOMIC EMBARGO OF CUBA.—The term
‘‘economic embargo of Cuba’’ refers to the economic
embargo imposed against Cuba pursuant to section
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620(a) of the Foreign Assistance Act of 1961 (22
U.S.C. 2370(a)), section 5(b) of the Trading With
the Enemy Act (50 U.S.C. App. 5(b)), the Inter-
national Emergency Economic Powers Act (50
U.S.C. 1701 and following), and the Export Admin-
istration Act of 1979 (50 U.S.C. App. 2401 and fol-
lowing), as modified by the Cuban Democracy Act of
1992 (22 U.S.C. 6001 and following).
(7) FOREIGN
NATIONAL.—The term ‘‘foreign
national’’ means—
(A) an alien; or
(B) any corporation, trust, partnership, or
other juridical entity not organized under the
laws of the United States, or of any State, the
District of Columbia, the Commonwealth of
Puerto Rico, or any other territory or posses-
sion of the United States.
(8) 
KNOWINGLY.—The 
term 
‘‘knowingly’’
means with knowledge or having reason to know.
(9) PROPERTY.—(A) The term ‘‘property’’
means any property (including patents, copyrights,
trademarks, and any other form of intellectual prop-
erty), whether real, personal, or mixed, and any
present, future, or contingent right, security, or
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other interest therein, including any leasehold inter-
est.
(B) For purposes of part 3 of this subtitle, the
term ‘‘property’’ shall not include real property used
for residential purposes unless, as of the date of the
enactment of this Act—
(i) the claim to the property is owned by
a United States national and the claim has
been certified under title V of the International
Claims Settlement Act of 1949; or
(ii) the property is occupied by a member
or official of the Cuban Government or the rul-
ing political party in Cuba.
(10) TRAFFICS.—(A) As used in part 3, a per-
son or entity ‘‘traffics’’ in property if that person or
entity knowingly and intentionally—
(i) sells, transfers, distributes, dispenses,
brokers, manages, or otherwise disposes of con-
fiscated property, or purchases, leases, receives,
possesses, obtains control of, manages, uses, or
otherwise acquires or holds an interest in con-
fiscated property,
(ii) engages in a commercial activity using
or otherwise benefiting from confiscated prop-
erty, or
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(iii) causes, directs, participates in, or
profits from, trafficking (as described in clauses
(i) and (ii)) by another person, or otherwise en-
gages in trafficking (as described in clauses (i)
and (ii)) through another person,
without the authorization of the United States na-
tional who holds a claim to the property.
(B) The term ‘‘traffics’’ does not include—
(i) the delivery of international tele-
communication signals to Cuba that are author-
ized by section 1705(e) of the Cuban Democ-
racy Act of 1992 (22 U.S.C. 6004(e)); or
(ii) the trading or holding of securities
publicly traded or held, unless the trading is
with or by a person determined by the Sec-
retary of the Treasury to be a specially des-
ignated national.
(11) TRANSITION GOVERNMENT IN CUBA.—The
term ‘‘transition government in Cuba’’ means a gov-
ernment determined by the President to have met
the requirements of section 6235.
(12) UNITED
STATES
NATIONAL.—The term
‘‘United States national’’ means—
(A) any United States citizen; or
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(B) any other legal entity which is orga-
nized under the laws of the United States, or
of any State, the District of Columbia, the
Commonwealth of Puerto Rico, or any other
territory or possession of the United States,
and which has its principal place of business in
the United States.
PART 1—SEEKING SANCTIONS AGAINST THE
CASTRO GOVERNMENT
SEC. 6211. STATEMENT OF POLICY.
It is the sense of the Congress that—
(1) the acts of the Castro government, includ-
ing its massive, systematic, and extraordinary viola-
tions of human rights, are a threat to international
peace;
(2) the President should advocate, and should
instruct the United States Permanent Representa-
tive to the United Nations to propose and seek,
within the Security Council, a mandatory inter-
national embargo against the totalitarian Cuban
Government pursuant to chapter VII of the Charter
of the United Nations, which is similar to measures
taken by United States representatives with respect
to Haiti; and
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(3) any resumption or commencement of efforts
by any state to make operational the nuclear facility
at Cienfuegos, Cuba, will have a detrimental impact
on United States assistance to and relations with
that state.
SEC. 6212. ENFORCEMENT OF THE ECONOMIC EMBARGO
OF CUBA.
(a) POLICY.—(1) The Congress hereby reaffirms sec-
tion 1704(a) of the Cuban Democracy Act of 1992 that
states the President should encourage foreign countries to
restrict trade and credit relations with Cuba.
(2) The Congress further urges the President to take
immediate steps to apply the sanctions described in section
1704(b) of that Act against countries assisting Cuba.
(b) DIPLOMATIC EFFORTS.—The Secretary of State
shall ensure that United States diplomatic personnel
abroad understand and, in their contacts with foreign offi-
cials, are communicating the reasons for the United States
economic embargo of Cuba, and are urging foreign govern-
ments to cooperate more effectively with the embargo.
(c) EXISTING REGULATIONS.—The President should
instruct the Secretary of the Treasury and the Attorney
General to enforce fully the Cuban Assets Control Regula-
tions set forth in part 515 of title 31, Code of Federal
Regulations.
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(d) TRADING WITH THE ENEMY ACT.—
(1) CIVIL PENALTIES.—Subsection (b) of sec-
tion 16 of the Trading With the Enemy Act (50
U.S.C. App. 16(b)) is amended to read as follows:
‘‘(b)(1) A civil penalty of not to exceed $50,000 may
be imposed by the Secretary of the Treasury on any per-
son who violates any license, order, rule, or regulation is-
sued in compliance with the provisions of this Act.
‘‘(2) Any property, funds, securities, papers, or other
articles or documents, or any vessel, together with its tack-
le, apparel, furniture, and equipment, that is the subject
of a violation under paragraph (1) shall, at the discretion
of the Secretary of the Treasury, be forfeited to the United
States Government.
‘‘(3) The penalties provided under this subsection
may not be imposed for—
‘‘(A) news gathering, research, or the export or
import of, or transmission of, information or infor-
mational materials; or
‘‘(B) clearly defined educational or religious ac-
tivities, or activities of recognized human rights or-
ganizations, that are reasonably limited in fre-
quency, duration, and number of participants.
‘‘(4) The penalties provided under this subsection
may be imposed only on the record after opportunity for
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an agency hearing in accordance with sections 554
through 557 of title 5, United States Code, with the right
to prehearing discovery.
‘‘(5) Judicial review of any penalty imposed under
this subsection may be had to the extent provided in sec-
tion 702 of title 5, United States Code.’’.
(2) FORFEITURE OF PROPERTY USED IN VIOLA-
TION.—Section 16 of the Trading With the Enemy
Act is further amended by striking subsection (c).
(3) CLERICAL AMENDMENT.—Section 16 of the
Trading With the Enemy Act is further amended by
inserting ‘‘SEC. 16.’’ before ‘‘(a)’’.
(e) COVERAGE
OF DEBT-FOR-EQUITY SWAPS
BY
ECONOMIC EMBARGO OF CUBA.—Section 1704(b)(2) of
the Cuban Democracy Act of 1992 (22 U.S.C. 6003(b)(2))
is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (A);
(2) by redesignating subparagraph (B) as sub-
paragraph (C); and
(3) by inserting after subparagraph (A) the fol-
lowing new subparagraph:
‘‘(B) includes an exchange, reduction, or
forgiveness of Cuban debt owed to a foreign
country in return for a grant of an equity inter-
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est in a property, investment, or operation of
the Government of Cuba (including the govern-
ment of any political subdivision of Cuba, and
any agency or instrumentality of the Govern-
ment of Cuba) or of a Cuban national; and’’;
and
(4) by adding at the end the following flush
sentence:
‘‘As used in this paragraph, the term ‘agency or in-
strumentality of the Government of Cuba’ means an
agency or instrumentality of a foreign state as de-
fined in section 1603(b) of title 28, United States
Code, with ‘Cuba’ substituted for ‘a foreign state’
each place it appears in such section.’’.
SEC. 6213. PROHIBITION AGAINST INDIRECT FINANCING OF
THE CASTRO DICTATORSHIP.
(a) PROHIBITION.—Notwithstanding any other provi-
sion of law, no loan, credit, or other financing may be ex-
tended knowingly by a United States national, permanent
resident alien, or United States agency, to a foreign na-
tional, United States national, or permanent resident
alien, in order to finance transactions involving any con-
fiscated property the claim to which is owned by a United
States national as of the date of the enactment of this
Act.
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(b) TERMINATION OF PROHIBITION.—The prohibi-
tion of subsection (a) shall cease to apply on the date on
which the economic embargo of Cuba terminates under
section 6235.
(c) PENALTIES.—Violations of subsection (a) shall be
punishable by the same penalties as are applicable to viola-
tions of the Cuban Assets Control Regulations set forth
in part 515 of title 31, Code of Federal Regulations.
(d) DEFINITIONS.—As used in this section—
(1) the term ‘‘permanent resident alien’’ means
an alien admitted for permanent residence into the
United States; and
(2) the term ‘‘United States agency’’ has the
meaning given the term ‘‘agency’’ in section 551(1)
of title 5, United States Code.
SEC. 6214. UNITED STATES OPPOSITION TO CUBAN MEM-
BERSHIP IN INTERNATIONAL FINANCIAL IN-
STITUTIONS.
(a) OPPOSITION TO CUBAN MEMBERSHIP IN INTER-
NATIONAL FINANCIAL INSTITUTIONS.—(1) Until such
time as the President determines that a transition govern-
ment in Cuba is in power, the Secretary of the Treasury
should instruct the United States executive director to
each international financial institution to use the voice and
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vote of the United States to oppose the admission of Cuba
as a member of such institution.
(2) Once a transition government in Cuba is in
power, the President is encouraged to take steps to sup-
port the processing of Cuba’s application for membership
in any financial institution subject to the membership tak-
ing effect at such time as the President deems most likely
to facilitate the transition to a democratically elected gov-
ernment in Cuba.
(b) REDUCTION IN UNITED STATES PAYMENTS TO
INTERNATIONAL
FINANCIAL
INSTITUTIONS.—If 
any
international financial institution approves a loan or other
assistance to the Cuban Government over the opposition
of the United States, then the Secretary of the Treasury
shall withhold from payment to that institution an amount
equal to the amount of the loan or other assistance to the
Cuban Government, with respect to each of the following
types of payment:
(1) The paid-in portion of the increase in cap-
ital stock of the institution.
(2) The callable portion of the increase in cap-
ital stock of the institution.
(c) DEFINITION.—For purposes of this section, the
term ‘‘international financial institution’’ means the Inter-
national Monetary Fund, the International Bank for Re-
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construction and Development, the International Develop-
ment Association, the International Finance Corporation,
the Multilateral Investment Guaranty Agency, and the
Inter-American Development Bank.
SEC. 6215. UNITED STATES OPPOSITION TO ENDING THE
SUSPENSION OF THE GOVERNMENT OF CUBA
FROM THE ORGANIZATION OF AMERICAN
STATES.
The President should instruct the United States Per-
manent Representative to the Organization of American
States to use the voice and vote of the United States to
oppose ending the suspension of the Government of Cuba
from the Organization until the President determines
under section 6233(c)(3) that a democratically elected
government in Cuba is in power.
SEC. 6216. ASSISTANCE BY THE INDEPENDENT STATES OF
THE FORMER SOVIET UNION FOR THE CUBAN
GOVERNMENT.
(a) REPORTING REQUIREMENT.—Not later than 90
days after the date of the enactment of this Act, the Presi-
dent shall submit to the appropriate congressional com-
mittees a report detailing progress towards the withdrawal
of personnel of any independent state of the former Soviet
Union (within the meaning of section 3 of the FREEDOM
Support Act (22 U.S.C. 5801)), including advisers, techni-
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cians, and military personnel, from the Cienfuegos nuclear
facility in Cuba.
(b) 
CRITERIA
FOR
ASSISTANCE.—Section
498A(a)(11) of the Foreign Assistance Act of 1961 (22
U.S.C. 2295a(a)(11)) is amended by striking ‘‘of military
facilities’’ and inserting ‘‘military and intelligence facili-
ties, including the military and intelligence facilities at
Lourdes and Cienfuegos’’.
(c) INELIGIBILITY
FOR ASSISTANCE.—(1) Section
498A(b) of that Act (22 U.S.C. 2295a(b)) is amended—
(A) by striking ‘‘or’’ at the end of paragraph
(4);
(B) by redesignating paragraph (5) as para-
graph (6); and
(C) by inserting after paragraph (4) the follow-
ing:
‘‘(5) for the government of any independent
state effective 30 days after the President has deter-
mined and certified to the appropriate congressional
committees (and Congress has not enacted legisla-
tion disapproving the determination within that 30-
day period) that such government is providing as-
sistance for, or engaging in nonmarket based trade
(as defined in section 498B(k)(3)) with, the Cuban
Government; or’’.
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(2) Subsection (k) of section 498B of that Act (22
U.S.C. 2295b(k)), is amended by adding at the end the
following:
‘‘(3) NONMARKET BASED TRADE.—As used in
section
498A(b)(5),
the term
‘nonmarket
based
trade’ includes exports, imports, exchanges, or other
arrangements that are provided for goods and serv-
ices (including oil and other petroleum products) on
terms more favorable than those generally available
in applicable markets or for comparable commod-
ities, including—
‘‘(A) exports to the Cuban Government on
terms that involve a grant, concessional price,
guaranty, insurance, or subsidy;
‘‘(B) imports from the Cuban Government
at preferential tariff rates;
‘‘(C) exchange arrangements that include
advance delivery of commodities, arrangements
in which the Cuban Government is not held ac-
countable for unfulfilled exchange contracts,
and arrangements under which Cuba does not
pay appropriate transportation, insurance, or fi-
nance costs; and
‘‘(D) the exchange, reduction, or forgive-
ness of Cuban debt in return for a grant by the
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Cuban Government of an equity interest in a
property, investment, or operation of the Cuban
Government or of a Cuban national.
‘‘(4) CUBAN
GOVERNMENT.—(A) The term
‘Cuban Government’ includes the government of any
political subdivision of Cuba, and any agency or in-
strumentality of the Government of Cuba.
‘‘(B) For purposes of subparagraph (A), the
term ‘agency or instrumentality of the Government
of Cuba’ means an agency or instrumentality of a
foreign state as defined in section 1603(b) of title
28, United States Code, with ‘Cuba’ substituted for
‘a foreign state’ each place it appears in such sec-
tion.’’.
(d) FACILITIES AT LOURDES, CUBA.—(1) The Con-
gress expresses its strong disapproval of the extension by
Russia 
of 
credits 
equivalent 
to 
approximately
$200,000,000 in support of the intelligence facility at
Lourdes, Cuba, in November 1994.
(2) Section 498A of the Foreign Assistance Act of
1961 (22 U.S.C. 2295a) is amended by adding at the end
the following new subsection:
‘‘(d) REDUCTION IN ASSISTANCE FOR SUPPORT OF
INTELLIGENCE FACILITIES IN CUBA.—(1) Notwithstand-
ing any other provision of law, the President shall with-
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hold from assistance provided, on or after the date of the
enactment of this subsection, for an independent state of
the former Soviet Union under this chapter an amount
equal to the sum of assistance and credits, if any, provided
on or after such date by such state in support of intel-
ligence facilities in Cuba, including the intelligence facility
at Lourdes, Cuba.
‘‘(2)(A) The President may waive the requirement of
paragraph (1) to withhold assistance if the President cer-
tifies to the appropriate congressional committees that the
provision of such assistance is important to the national
security of the United States, and, in the case of such
a certification made with respect to Russia, if the Presi-
dent certifies that the Russian Government has assured
the United States Government that the Russian Govern-
ment is not sharing intelligence data collected at the
Lourdes facility with officials or agents of the Cuban Gov-
ernment.
‘‘(B) At the time of a certification made with respect
to Russia pursuant to subparagraph (A), the President
shall also submit to the appropriate congressional commit-
tees a report describing the intelligence activities of Russia
in Cuba, including the purposes for which the Lourdes fa-
cility is used by the Russian Government and the extent
to which the Russian Government provides payment or
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government credits to the Cuban Government for the con-
tinued use of the Lourdes facility.
‘‘(C) The report required by subparagraph (B) may
be submitted in classified form.
‘‘(D) For purposes of this paragraph, the term ‘ap-
propriate congressional committees’ includes the Perma-
nent Select Committee on Intelligence of the House of
Representatives and the Select Committee on Intelligence
of the Senate.
‘‘(3) The requirement of paragraph (1) to withhold
assistance shall not apply with respect to—
‘‘(A) assistance to meet urgent humanitarian
needs, including disaster and refugee relief;
‘‘(B) democratic political reform and rule of law
activities;
‘‘(C) technical assistance for safety upgrades of
civilian nuclear power plants;
‘‘(D) the creation of private sector and non-
governmental organizations that are independent of
government control;
‘‘(E) the development of a free market eco-
nomic system; and
‘‘(F) assistance for the purposes described in
the Cooperative Threat Reduction Act of 1993 (title
XII of Public Law 103–160).’’.
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SEC. 6217. TELEVISION BROADCASTING TO CUBA.
(a) CONVERSION
TO UHF.—The Director of the
United States Information Agency shall implement a con-
version of television broadcasting to Cuba under the Tele-
vision Marti Service to ultra high frequency (UHF) broad-
casting.
(b) PERIODIC REPORTS.—Not later than 45 days
after the date of the enactment of this Act, and every
three months thereafter until the conversion described in
subsection (a) is fully implemented, the Director of the
United States Information Agency shall submit a report
to the appropriate congressional committees on the
progress made in carrying out subsection (a).
(c) TERMINATION
OF
BROADCASTING
AUTHORI-
TIES.—Upon transmittal of a determination under section
6233(c)(3), the Television Broadcasting to Cuba Act (22
U.S.C. 1465aa and following) and the Radio Broadcasting
to Cuba Act (22 U.S.C. 1465 and following) are repealed.
SEC. 6218. REPORTS ON ASSISTANCE AND COMMERCE RE-
CEIVED BY CUBA FROM OTHER FOREIGN
COUNTRIES.
(a) REPORTS REQUIRED.—Not later than 90 days
after the date of the enactment of this Act, and every year
thereafter, the President shall submit a report to the ap-
propriate congressional committees on assistance and
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commerce received by Cuba from other foreign countries
during the preceding 12-month period.
(b) CONTENTS OF REPORTS.—Each report required
by subsection (a) shall, for the period covered by the re-
port, contain the following, to the extent such information
is known:
(1) A description of all bilateral assistance pro-
vided to Cuba by other foreign countries, including
humanitarian assistance.
(2) A description of Cuba’s commerce with for-
eign countries, including an identification of Cuba’s
trading partners and the extent of such trade.
(3) A description of the joint ventures com-
pleted, or under consideration, by foreign nationals
involving facilities in Cuba, including an identifica-
tion of the location of the facilities involved and a
description of the terms of agreement of the joint
ventures and the names of the parties that are in-
volved.
(4) A determination whether or not any of the
facilities described in paragraph (3) is the subject of
a claim by a United States national.
(5) A determination of the amount of Cuban
debt owed to each foreign country, including—
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(A) the amount of debt exchanged, for-
given, or reduced under the terms of each in-
vestment or operation in Cuba involving foreign
nationals; and
(B) the amount of debt owed to the foreign
country that has been exchanged, reduced, or
forgiven in return for a grant by the Cuban
Government of an equity interest in a property,
investment, or operation of the Cuban Govern-
ment or of a Cuban national.
(6) A description of the steps taken to ensure
that raw materials and semifinished or finished
goods produced by facilities in Cuba involving for-
eign nationals do not enter the United States mar-
ket, either directly or through third countries or par-
ties.
(7) An identification of countries that purchase,
or have purchased, arms or military supplies from
the Cuban Government or that otherwise have en-
tered into agreements with the Cuban Government
that have a military application, including—
(A) a description of the military supplies,
equipment, or other materiel sold, bartered, or
exchanged between the Cuban Government and
such countries;
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(B) a listing of the goods, services, credits,
or other consideration received by the Cuban
Government in exchange for military supplies,
equipment, or materiel; and
(C) the terms or conditions of any such
agreement.
SEC. 6219. AUTHORIZATION OF SUPPORT FOR DEMOCRATIC
AND HUMAN RIGHTS GROUPS AND INTER-
NATIONAL OBSERVERS.
(a) AUTHORIZATION.—Notwithstanding any other
provision of law, except for section 634A of the Foreign
Assistance Act of 1961 (22 U.S.C. 2394–1) and com-
parable notification requirements contained in any Act
making appropriations for foreign operations, export fi-
nancing, and related programs, the President is author-
ized to furnish assistance and provide other support for
individuals and independent nongovernmental organiza-
tions to support democracy-building efforts for Cuba, in-
cluding the following:
(1) Published and informational matter, such as
books, videos, and cassettes, on transitions to de-
mocracy, human rights, and market economies, to be
made available to independent democratic groups in
Cuba.
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(2) Humanitarian assistance to victims of polit-
ical repression, and their families.
(3) Support for democratic and human rights
groups in Cuba.
(4) Support for visits and permanent deploy-
ment of independent international human rights
monitors in Cuba.
(b) OAS EMERGENCY FUND.—(1) The President
shall take the necessary steps to encourage the Organiza-
tion of American States to create a special emergency fund
for the explicit purpose of deploying human rights observ-
ers, election support, and election observation in Cuba.
(2) The President should instruct the United States
Permanent Representative to the Organization of Amer-
ican States to encourage other member states of the Orga-
nization to join in calling for the Cuban Government to
allow the immediate deployment of independent human
rights monitors of the Organization throughout Cuba and
on-site visits to Cuba by the Inter-American Commission
on Human Rights.
(3) Notwithstanding section 307 of the Foreign As-
sistance Act of 1961 (22 U.S.C. 2227) or any other provi-
sion of law limiting the United States proportionate share
of assistance to Cuba by any international organization,
the President should provide not less than $5,000,000 of
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the voluntary contributions of the United States to the
Organization of American States as of the date of the en-
actment of this Act solely for the purposes of the special
fund referred to in paragraph (1).
SEC. 6220. WITHHOLDING OF FOREIGN ASSISTANCE FROM
COUNTRIES SUPPORTING NUCLEAR PLANT
IN CUBA.
(a) FINDINGS.—The Congress makes the following
findings:
(1) President Clinton stated in April 1993 that
‘‘the United States opposes the construction of the
Juragua nuclear power plant because of our con-
cerns about Cuba’s ability to ensure the safe oper-
ation of the facility and because of Cuba’s refusal to
sign the Nuclear Non-Proliferation Treaty or ratify
the Treaty of Tlatelolco.’’.
(2) Cuba has not signed the Treaty on the Non-
Proliferation of Nuclear Weapons or ratified the
Treaty of Tlatelolco, the latter of which establishes
Latin America and the Caribbean as a nuclear weap-
ons-free zone.
(3) The State Department, the Nuclear Regu-
latory Commission, and the Department of Energy
have expressed concerns about the construction and
operation of Cuba’s nuclear reactors.
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(4) In a September 1992 report to Congress,
the General Accounting Office outlined concerns
among nuclear energy experts about deficiencies in
the nuclear plant project in Juragua, near Cienfue-
gos, Cuba, including—
(A) a lack in Cuba of a nuclear regulatory
structure;
(B) the absence in Cuba of an adequate in-
frastructure to ensure the plant’s safe operation
and requisite maintenance;
(C) the inadequacy of training of plant op-
erators;
(D) reports by a former technician from
Cuba who, by examining with x-rays weld sites
believed to be part of the auxiliary plumbing
system for the plant, found that 10 to 15 per-
cent of those sites were defective;
(E) since September 5, 1992, when con-
struction on the plant was halted, the prolonged
exposure to the elements, including corrosive
salt water vapor, of the primary reactor compo-
nents; and
(F) the possible inadequacy of the upper
portion of the reactors’ dome retention capabil-
ity to withstand only 7 pounds of pressure per
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square inch, given that normal atmospheric
pressure is 32 pounds per square inch and
United States reactors are designed to accom-
modate pressures of 50 pounds per square inch.
(5) The United States Geological Survey claims
that it had difficulty determining answers to specific
questions regarding earthquake activity in the area
near Cienfuegos because the Cuban Government was
not forthcoming with information.
(6) The Geological Survey has indicated that
the Caribbean plate, a geological formation near the
south coast of Cuba, may pose seismic risks to Cuba
and the site of the power plant, and may produce
large to moderate earthquakes.
(7) On May 25, 1992, the Caribbean plate pro-
duced an earthquake numbering 7.0 on the Richter
scale.
(8) According to a study by the National Oce-
anic and Atmospheric Administration, summer
winds could carry radioactive pollutants from a nu-
clear accident at the power plant throughout all of
Florida and parts of the States on the gulf coast as
far as Texas, and northern winds could carry the
pollutants as far northeast as Virginia and Washing-
ton, D.C.
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(9) The Cuban Government, under dictator
Fidel Castro, in 1962 advocated the Soviets’ launch-
ing of nuclear missiles to the United States, which
represented a direct and dangerous provocation of
the United States and brought the world to the
brink of a nuclear conflict.
(10) Fidel Castro over the years has consist-
ently issued threats against the United States Gov-
ernment, most recently that he would unleash an-
other perilous mass migration from Cuba upon the
enactment of this Act.
(11) Despite the various concerns about the
plant’s safety and operational problems, a feasibility
study is being conducted that would establish a sup-
port group to include Russia, Cuba, and third coun-
tries with the objective of completing and operating
the plant.
(b) WITHHOLDING OF FOREIGN ASSISTANCE.—
(1) IN GENERAL.—Notwithstanding any other
provision of law, the President shall withhold from
assistance allocated, on or after the date of the en-
actment of this Act, for any country an amount
equal to the sum of assistance and credits, if any,
provided on or after such date of enactment by that
country or any entity in that country in support of
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the completion of the Cuban nuclear facility at
Juragua, near Cienfuegos, Cuba.
(2) EXCEPTIONS.—The requirement of para-
graph (1) to withhold assistance shall not apply with
respect to—
(A) assistance to meet urgent humani-
tarian needs, including disaster and refugee re-
lief;
(B) democratic political reform and rule of
law activities;
(C) the creation of private sector and non-
governmental organizations that are independ-
ent of government control;
(D) the development of a free market eco-
nomic system; and
(E) assistance for the purposes described
in the Cooperative Threat Reduction Act of
1993 (title XII of Public Law 103–160).
(3) DEFINITION.—As used in paragraph (1),
the term ‘‘assistance’’ means assistance under the
Foreign Assistance Act of 1961, credits, sales, and
guarantees of extensions of credit under the Arms
Export Control Act, assistance under titles I and III
of the Agricultural Trade Development and Assist-
ance Act of 1954, assistance under the FREEDOM
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Support Act of 1992, and any other program of as-
sistance or credits provided by the United States to
other countries under other provisions of law, except
that the term ‘‘assistance’’ does not include humani-
tarian assistance, including disaster relief assistance.
SEC. 6221. EXPULSION OF CRIMINALS FROM CUBA.
The President shall instruct all United States Gov-
ernment officials who engage in official conduct with the
Cuban Government to raise on a regular basis the extra-
dition of or rendering to the United States all persons re-
siding in Cuba who are sought by the United States De-
partment of Justice for crimes committed in the United
States.
PART 2—ASSISTANCE TO A FREE AND
INDEPENDENT CUBA
SEC. 6231. POLICY TOWARD A TRANSITION GOVERNMENT
AND A DEMOCRATICALLY ELECTED GOVERN-
MENT IN CUBA.
The policy of the United States is as follows:
(1) To support the self-determination of the
Cuban people.
(2) To recognize that the self-determination of
the Cuban people is a sovereign and national right
of the citizens of Cuba which must be exercised free
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of interference by the government of any other coun-
try.
(3) To encourage the Cuban people to empower
themselves with a government which reflects the self-
determination of the Cuban people.
(4) To recognize the potential for a difficult
transition from the current regime in Cuba that may
result from the initiatives taken by the Cuban people
for self-determination in response to the intran-
sigence of the Castro regime in not allowing any
substantive political or economic reforms, and to be
prepared to provide the Cuban people with humani-
tarian, developmental, and other economic assist-
ance.
(5) In solidarity with the Cuban people, to pro-
vide appropriate forms of assistance—
(A) to a transition government in Cuba;
(B) to facilitate the rapid movement from
such a transition government to a democrat-
ically elected government in Cuba that results
from an expression of the self-determination of
the Cuban people; and
(C) to support such a democratically elect-
ed government.
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(6) Through such assistance, to facilitate a
peaceful transition to representative democracy and
a market economy in Cuba and to consolidate de-
mocracy in Cuba.
(7) To deliver such assistance to the Cuban
people only through a transition government in
Cuba, through a democratically elected government
in Cuba, through United States Government organi-
zations, or through United States, international, or
indigenous nongovernmental organizations.
(8) To encourage other countries and multilat-
eral organizations to provide similar assistance, and
to work cooperatively with such countries and orga-
nizations to coordinate such assistance.
(9) To ensure that appropriate assistance is
rapidly provided and distributed to the people of
Cuba upon the institution of a transition govern-
ment in Cuba.
(10) Not to provide favorable treatment or in-
fluence on behalf of any individual or entity in the
selection by the Cuban people of their future govern-
ment.
(11) To assist a transition government in Cuba
and a democratically elected government in Cuba to
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prepare the Cuban military forces for an appropriate
role in a democracy.
(12) To be prepared to enter into negotiations
with a democratically elected government in Cuba ei-
ther to return the United States Naval Base at
Guantanamo to Cuba or to renegotiate the present
agreement under mutually agreeable terms.
(13) To consider the restoration of diplomatic
recognition and support the reintegration of the
Cuban Government into Inter-American organiza-
tions when the President determines that there ex-
ists a democratically elected government in Cuba.
(14) To take steps to remove the economic em-
bargo of Cuba when the President determines that
a transition to a democratically elected government
in Cuba has begun.
(15) To assist a democratically elected govern-
ment in Cuba to strengthen and stabilize its national
currency.
(16) To pursue trade relations with a free,
democratic, and independent Cuba.
SEC. 6232. ASSISTANCE FOR THE CUBAN PEOPLE.
(a) AUTHORIZATION.—
(1) IN GENERAL.—The President shall develop
a plan for providing economic assistance to Cuba at
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such time as the President determines that a transi-
tion government or a democratically elected govern-
ment in Cuba (as determined under section 6233(c))
is in power.
(2) EFFECT ON OTHER LAWS.—Assistance may
be provided under this section subject to an author-
ization of appropriations and subject to the availabil-
ity of appropriations.
(b) PLAN FOR ASSISTANCE.—
(1) DEVELOPMENT OF PLAN.—The President
shall develop a plan for providing assistance under
this section—
(A) to Cuba when a transition government
in Cuba is in power; and
(B) to Cuba when a democratically elected
government in Cuba is in power.
(2) TYPES OF ASSISTANCE.—Assistance under
the plan developed under paragraph (1) may, subject
to an authorization of appropriations and subject to
the availability of appropriations, include the follow-
ing:
(A) TRANSITION
GOVERNMENT.—(i) Ex-
cept as provided in clause (ii), assistance to
Cuba under a transition government shall, sub-
ject to an authorization of appropriations and
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subject to the availability of appropriations, be
limited to—
(I) such food, medicine, medical sup-
plies and equipment, and assistance to
meet emergency energy needs, as is nec-
essary to meet the basic human needs of
the Cuban people; and
(II) assistance described in subpara-
graph (C).
(ii) Assistance provided only after the
President certifies to the appropriate congres-
sional committees, in accordance with proce-
dures applicable to reprogramming notifications
under section 634A of the Foreign Assistance
Act of 1961, that such assistance is essential to
the successful completion of the transition to
democracy.
(iii) Only after a transition government in
Cuba is in power, remittances by individuals to
their relatives of cash or goods, as well as free-
dom to travel to visit them without any restric-
tions, shall be permitted.
(B) DEMOCRATICALLY ELECTED GOVERN-
MENT.—Assistance to a democratically elected
government in Cuba may, subject to an author-
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ization of appropriations and subject to the
availability of appropriations, consist of addi-
tional economic assistance, together with assist-
ance described in subparagraph (C). Such eco-
nomic assistance may include—
(i) assistance under chapter 1 of part
I (relating to development assistance), and
chapter 4 of part II (relating to the eco-
nomic support fund), of the Foreign As-
sistance Act of 1961;
(ii) assistance under the Agricultural
Trade Development and Assistance Act of
1954;
(iii) financing, guarantees, and other
forms of assistance provided by the Ex-
port-Import Bank of the United States;
(iv) financial support provided by the
Overseas Private Investment Corporation
for investment projects in Cuba;
(v) assistance provided by the Trade
and Development Agency;
(vi) Peace Corps programs; and
(vii) other appropriate assistance to
carry out the policy of section 6231.
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(C) 
MILITARY
ADJUSTMENT
ASSIST-
ANCE.—Assistance to a transition government
in Cuba and to a democratically elected govern-
ment in Cuba shall also include assistance in
preparing the Cuban military forces to adjust
to an appropriate role in a democracy.
(c) STRATEGY FOR DISTRIBUTION.—The plan devel-
oped under subsection (b) shall include a strategy for dis-
tributing assistance under the plan.
(d) DISTRIBUTION.—Assistance under the plan devel-
oped under subsection (b) shall be provided through
United States Government organizations and nongovern-
mental organizations and private and voluntary organiza-
tions, whether within or outside the United States, includ-
ing humanitarian, educational, labor, and private sector
organizations.
(e) INTERNATIONAL EFFORTS.—The President shall
take the necessary steps—
(1) to seek to obtain the agreement of other
countries and of international financial institutions
and multilateral organizations to provide to a transi-
tion government in Cuba, and to a democratically
elected government in Cuba, assistance comparable
to that provided by the United States under this
subtitle; and
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(2) to work with such countries, institutions,
and organizations to coordinate all such assistance
programs.
(f) COMMUNICATION WITH THE CUBAN PEOPLE.—
The President shall take the necessary steps to commu-
nicate to the Cuban people the plan for assistance devel-
oped under this section.
(g) REPORT TO CONGRESS.—Not later than 180 days
after the date of the enactment of this Act, the President
shall transmit to the appropriate congressional committees
a report describing in detail the plan developed under this
section.
(h) TRADE AND INVESTMENT RELATIONS.—
(1) REPORT TO CONGRESS.—The President, fol-
lowing the transmittal to the Congress of a deter-
mination under section 6233(c)(3) that a democrat-
ically elected government in Cuba is in power, shall
submit to the appropriate congressional committees
a report that describes—
(A) acts, policies, and practices that con-
stitute significant barriers to, or distortions of,
United States trade in goods or services or for-
eign direct investment with respect to Cuba;
(B) policy objectives of the United States
regarding trade relations with a democratically
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elected government in Cuba, and the reasons
therefor, including possible—
(i) reciprocal extension of nondiscrim-
inatory trade treatment (most-favored-
nation treatment);
(ii) designation of Cuba as a bene-
ficiary developing country under title V of
the Trade Act of 1974 (relating to the
Generalized System of Preferences) or as a
beneficiary country under the Caribbean
Basin Economic Recovery Act, and the im-
plications of such designation with respect
to trade with any other country that is
such a beneficiary developing country or
beneficiary country or is a party to the
North American Free Trade Agreement;
and
(iii) negotiations regarding free trade,
including the accession of Cuba to the
North American Free Trade Agreement;
(C) specific trade negotiating objectives of
the United States with respect to Cuba, includ-
ing the objectives described in section 108(b)(5)
of the North American Free Trade Agreement
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Implementation Act (19 U.S.C. 3317(b)(5));
and
(D) actions proposed or anticipated to be
undertaken, and any proposed legislation nec-
essary or appropriate, to achieve any of such
policy and negotiating objectives.
(2) CONSULTATIONS.—The President shall con-
sult with the appropriate congressional committees
and shall seek advice from the appropriate advisory
committees established under section 135 of the
Trade Act of 1974 regarding the policy and nego-
tiating objectives and the legislative proposals de-
scribed in paragraph (1).
SEC. 6233. COORDINATION OF ASSISTANCE PROGRAM; IM-
PLEMENTATION 
AND 
REPORTS 
TO 
CON-
GRESS; REPROGRAMMING.
(a) COORDINATING OFFICIAL.—The President shall
designate a coordinating official who shall be responsible
for—
(1) implementing the strategy for distributing
assistance described in section 6232(b);
(2) ensuring the speedy and efficient distribu-
tion of such assistance; and
(3) ensuring coordination among, and appro-
priate oversight by, the agencies of the United
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States that provide assistance described in section
6232(b), including resolving any disputes among
such agencies.
(b) UNITED STATES-CUBA COUNCIL.—Upon making
a determination under subsection (c)(3) that a democrat-
ically elected government in Cuba is in power, the Presi-
dent, after consultation with the coordinating official, is
authorized to designate a United States-Cuba council—
(1) to ensure coordination between the United
States Government and the private sector in re-
sponding to change in Cuba, and in promoting mar-
ket-based development in Cuba; and
(2) to establish periodic meetings between rep-
resentatives of the United States and Cuban private
sectors for the purpose of facilitating bilateral trade.
(c) IMPLEMENTATION OF PLAN; REPORTS TO CON-
GRESS.—
(1) IMPLEMENTATION WITH RESPECT TO TRAN-
SITION GOVERNMENT.—Upon making a determina-
tion that a transition government in Cuba is in
power, the President shall transmit that determina-
tion to the appropriate congressional committees and
shall, subject to an authorization of appropriations
and subject to the availability of appropriations,
commence the delivery and distribution of assistance
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to such transition government under the plan devel-
oped under section 6232(b).
(2) REPORTS TO CONGRESS.—(A) The Presi-
dent shall transmit to the appropriate congressional
committees a report setting forth the strategy for
providing assistance described in section 6232(b)(2)
(A) and (C) to the transition government in Cuba
under the plan of assistance developed under section
6232(b), the types of such assistance, and the extent
to which such assistance has been distributed in ac-
cordance with the plan.
(B) The President shall transmit the report not
later than 90 days after making the determination
referred to in paragraph (1), except that the Presi-
dent shall transmit the report in preliminary form
not later than 15 days after making that determina-
tion.
(3) 
IMPLEMENTATION
WITH
RESPECT
TO
DEMOCRATICALLY
ELECTED
GOVERNMENT.—The
President shall, upon determining that a democrat-
ically elected government in Cuba is in power, sub-
mit that determination to the appropriate congres-
sional committees and shall, subject to an authoriza-
tion of appropriations and subject to the availability
of appropriations, commence the delivery and dis-
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tribution of assistance to such democratically elected
government under the plan developed under section
6232(b).
(4) ANNUAL
REPORTS
TO
CONGRESS.—Not
later than 60 days after the end of each fiscal year,
the President shall transmit to the appropriate con-
gressional committees a report on the assistance
provided under the plan developed under section
6232(b), including a description of each type of as-
sistance, the amounts expended for such assistance,
and a description of the assistance to be provided
under the plan in the current fiscal year.
(d) REPROGRAMMING.—Any changes in the assist-
ance to be provided under the plan developed under sec-
tion 6232(b) may not be made unless the President noti-
fies the appropriate congressional committees at least 15
days in advance in accordance with the procedures appli-
cable to reprogramming notifications under section 634A
of the Foreign Assistance Act of 1961 (22 U.S.C. 2394–
1).
SEC. 6234. TERMINATION OF THE ECONOMIC EMBARGO OF
CUBA.
(a) PRESIDENTIAL ACTIONS.—Upon submitting a de-
termination to the appropriate congressional committees
under section 6233(c)(1) that a transition government in
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Cuba is in power, the President, after consulting with the
Congress, is authorized to take steps to suspend the eco-
nomic embargo of Cuba to the extent that such action con-
tributes to a stable foundation for a democratically elected
government in Cuba.
(b) SUSPENSION
OF
CERTAIN
PROVISIONS
OF
LAW.—In carrying out subsection (a), the President may
suspend the enforcement of—
(1) section 620(a) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2370(a));
(2) section 620(f) of the Foreign Assistance Act
of 1961 (22 U.S.C. 2370(f)) with regard to the ‘‘Re-
public of Cuba’’;
(3) sections 1704, 1705(d), and 1706 of the
Cuban Democracy Act (22 U.S.C. 6003, 6004(d),
6005);
(4) section 902(c) of the Food Security Act of
1985; and
(5) the prohibitions on transactions described in
part 515 of title 31, Code of Federal Regulations.
(c) ADDITIONAL PRESIDENTIAL ACTIONS.—Upon
submitting a determination to the appropriate congres-
sional committees under section 6233(c)(3) that a demo-
cratically elected government in Cuba is in power, the
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President shall take steps to terminate the economic em-
bargo of Cuba.
(d) CONFORMING AMENDMENTS.—On the date on
which the President submits a determination under sec-
tion 6233(c)(3)—
(1) section 620(a) of the Foreign Assistance
Act of 1961 (22 U.S.C. 2370(a)) is repealed;
(2) section 620(f) of the Foreign Assistance Act
of 1961 (22 U.S.C. 2370(f)) is amended by striking
‘‘Republic of Cuba’’;
(3) sections 1704, 1705(d), and 1706 of the
Cuban Democracy Act of 1992 (22 U.S.C. 6003,
6004(d), and 6005) are repealed; and
(4) section 902(c) of the Food Security Act of
1985 is repealed.
(e) REVIEW OF SUSPENSION OF ECONOMIC EMBAR-
GO.—
(1) REVIEW.—If the President takes action
under subsection (a) to suspend the economic em-
bargo of Cuba, the President shall immediately so
notify the Congress. The President shall report to
the Congress no less frequently than every 6 months
thereafter, until he submits a determination under
section 6233(c)(3) that a democratically elected gov-
ernment in Cuba is in power, on the progress being
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made by Cuba toward the establishment of such a
democratically elected government. The action of the
President under subsection (a) shall cease to be ef-
fective upon the enactment of a joint resolution de-
scribed in paragraph (2).
(2) JOINT RESOLUTIONS.—For purposes of this
subsection, the term ‘‘joint resolution’’ means only a
joint resolution of the 2 Houses of Congress, the
matter after the resolving clause of which is as fol-
lows: ‘‘That the Congress disapproves the action of
the President under section 6234(a) of the Cuban
Liberty and Democratic Solidarity (LIBERTAD)
Act of 1995 to suspend the economic embargo of
Cuba, notice of which was submitted to the Congress
on ll.’’, with the blank space being filled with the
appropriate date.
(3) REFERRAL TO COMMITTEES.—Joint resolu-
tions introduced in the House of Representatives
shall be referred to the Committee on International
Relations and joint resolutions introduced in the
Senate shall be referred to the Committee on For-
eign Relations.
(4) PROCEDURES.—(A) Any joint resolution
shall be considered in the Senate in accordance with
the provisions of section 601(b) of the International
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Security Assistance and Arms Export Control Act
of 1976.
(B) For the purpose of expediting the consider-
ation and enactment of joint resolutions, a motion to
proceed to the consideration of any joint resolution
after it has been reported by the appropriate com-
mittee shall be treated as highly privileged in the
House of Representatives.
(C) Not more than 1 joint resolution may be
considered in the House of Representatives and the
Senate in the 6-month period beginning on the date
on which the President notifies the Congress under
paragraph (1) of the action taken under subsection
(a), and in each 6-month period thereafter.
SEC. 6235. REQUIREMENTS FOR A TRANSITION GOVERN-
MENT.
For purposes of this subtitle, a transition government
in Cuba is a government in Cuba which—
(1) is demonstrably in transition from com-
munist totalitarian dictatorship to representative de-
mocracy;
(2) has recognized the right to independent po-
litical activity and association;
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(3) has released all political prisoners and al-
lowed for investigations of Cuban prisons by appro-
priate international human rights organizations;
(4) has ceased any interference with Radio or
Television Marti broadcasts;
(5) makes public commitments to and is mak-
ing demonstrable progress in—
(A) establishing an independent judiciary;
(B) dissolving the present Department of
State Security in the Cuban Ministry of the In-
terior, including the Committees for the De-
fense of the Revolution and the Rapid Response
Brigades;
(C) respecting internationally recognized
human rights and basic freedoms as set forth in
the Universal Declaration of Human Rights, to
which Cuba is a signatory nation;
(D) effectively guaranteeing the rights of
free speech and freedom of the press;
(E) organizing free and fair elections for a
new government—
(i) to be held in a timely manner with-
in a period not to exceed 1 year after the
transition government assumes power;
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(ii) with the participation of multiple
independent political parties that have full
access to the media on an equal basis, in-
cluding (in the case of radio, television, or
other telecommunications media) in terms
of allotments of time for such access and
the times of day such allotments are given;
and
(iii) to be conducted under the super-
vision of internationally recognized observ-
ers, such as the Organization of American
States, the United Nations, and other elec-
tions monitors;
(F) assuring the right to private property;
(G) taking appropriate steps to return to
United States citizens (and entities which are
50 percent or more beneficially owned by Unit-
ed States citizens) property taken by the Cuban
Government from such citizens and entities on
or after January 1, 1959, or to provide equi-
table compensation to such citizens and entities
for such property;
(H) granting permits to privately owned
telecommunications and media companies to op-
erate in Cuba; and
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(I) allowing the establishment of independ-
ent trade unions as set forth in conventions 87
and 98 of the International Labor Organiza-
tion, and allowing the establishment of inde-
pendent social, economic, and political associa-
tions;
(6) does not include Fidel Castro or Raul Cas-
tro;
(7) has given adequate assurances that it will
allow the speedy and efficient distribution of assist-
ance to the Cuban people;
(8) permits the deployment throughout Cuba of
independent and unfettered international human
rights monitors; and
(9) has extradited or otherwise rendered to the
United States all persons sought by the United
States Department of Justice for crimes committed
in the United States.
SEC. 
6236. 
REQUIREMENTS 
FOR 
A 
DEMOCRATICALLY
ELECTED GOVERNMENT.
For purposes of this subtitle, a democratically elected
government in Cuba, in addition to continuing to comply
with the requirements of section 6235, is a government
in Cuba which—
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(1) results from free and fair elections con-
ducted under the supervision of internationally rec-
ognized observers;
(2) has permitted opposition parties ample time
to organize and campaign for such elections, and has
permitted full access to the media to all candidates
in the elections;
(3) is showing respect for the basic civil lib-
erties and human rights of the citizens of Cuba;
(4) has made demonstrable progress in estab-
lishing an independent judiciary;
(5) is substantially moving toward a market-ori-
ented economic system;
(6) is committed to making constitutional
changes that would ensure regular free and fair elec-
tions that meet the requirements of paragraph (2);
and
(7) has made demonstrable progress in return-
ing to United States citizens (and entities which are
50 percent or more beneficially owned by United
States citizens) property taken by the Cuban Gov-
ernment from such citizens and entities on or after
January 1, 1959, or providing full compensation for
such property in accordance with international law
standards and practice.
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PART 3—PROTECTION OF PROPERTY RIGHTS OF
UNITED STATES NATIONALS AGAINST CON-
FISCATORY TAKINGS BY THE CASTRO RE-
GIME
SEC. 6251. STATEMENT OF POLICY.
The Congress makes the following findings:
(1) The right of individuals to hold and enjoy
property is a fundamental right recognized by the
United States Constitution and international human
rights law, including the Universal Declaration of
Human Rights.
(2) The illegal confiscation or taking of prop-
erty by governments, and the acquiescence of gov-
ernments in the confiscation of property by their
citizens, undermines the comity among nations, the
free flow of commerce, and economic development.
(3) It is in the interest of all nations to respect
equally the property rights of their citizens and na-
tionals of other countries.
(4) Nations that provide an effective mecha-
nism for prompt, adequate, and fair compensation
for the confiscation of private property will continue
to have the support of the United States.
(5) The United States Government has an obli-
gation to its citizens to provide protection against il-
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legal confiscation by foreign nations and their citi-
zens, including the provision of private remedies.
(6) Nations that illegally confiscate private
property should not be immune to another nation’s
laws whose purpose is to protect against the
confiscation of lawfully acquired property by its citi-
zens.
(7) Trafficking in illegally acquired property is
a crime under the laws of the United States and
other nations, yet this same activity is allowed under
international law.
(8) International law, by not providing effective
remedies, condones the illegal confiscation of prop-
erty and allows for the unjust enrichment from the
use of confiscated property by governments and pri-
vate entities at the expense of those who hold legal
claim to the property.
(9) The development of an international mecha-
nism sanctioning those governments and private en-
tities that confiscate and unjustly use private prop-
erty so confiscated should be a priority objective of
United States foreign policy.
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SEC. 6252. LIABILITY FOR TRAFFICKING IN PROPERTY
CONFISCATED FROM UNITED STATES NA-
TIONALS.
(a) CIVIL REMEDY.—
(1) LIABILITY FOR TRAFFICKING.—(A) Except
as provided in paragraphs (3) and (4), any person,
including any agency or instrumentality of a foreign
state in the conduct of a commercial activity, that,
after the end of the 6-month period beginning on the
date of the enactment of this Act, traffics in con-
fiscated property shall be liable to any United States
national who owns the claim to such property for
money damages in an amount equal to the sum of—
(i) the amount which is the greater of—
(I) the amount, if any, certified to the
claimant by the Foreign Claims Settlement
Commission 
under 
the 
International
Claims Settlement Act of 1949, plus inter-
est;
(II) the amount determined under sec-
tion 6253(a)(2), plus interest; or
(III) the fair market value of that
property, calculated as being the then cur-
rent value of the property, or the value of
the property when confiscated plus inter-
est, whichever is greater; and
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(ii) reasonable costs and attorneys’ fees.
(B) Interest under subparagraph (A)(i) shall be
at the rate set forth in section 1961 of title 28,
United States Code, computed by the court from the
date of the confiscation of the property involved to
the date on which the action is brought under this
subsection.
(2) PRESUMPTION
IN
FAVOR
OF
CERTIFIED
CLAIMS.—There shall be a presumption that the
amount for which a person, including any agency or
instrumentality of a foreign state in the conduct of
a commercial activity, is liable under clause (i) of
paragraph (1)(A) is the amount that is certified
under subclause (I) of that clause. The presumption
shall be rebuttable by clear and convincing evidence
that the amount described in subclause (II) or (III)
of that clause is the appropriate amount of liability
under that clause.
(3) INCREASED
LIABILITY
FOR
PRIOR
NO-
TICE.—Except as provided in paragraph (4), any
person, including any agency or instrumentality of a
foreign state in the conduct of a commercial activity,
that traffics in confiscated property after having re-
ceived—
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(A) notice of a claim to ownership of the
property by a United States national who owns
a claim to the confiscated property, and
(B) notice of the provisions of this section,
shall be liable to that United States national for
money damages in an amount which is the sum of
the amount equal to the amount determined under
paragraph (1)(A)(ii) plus triple the amount deter-
mined applicable under subclause (I), (II), or (III)
of paragraph (1)(A)(i).
(4) APPLICABILITY.—(A) Except as otherwise
provided in this paragraph, actions may be brought
under paragraph (1) with respect to property con-
fiscated before, on, or after the date of the enact-
ment of this Act.
(B) In the case of property confiscated before
the date of the enactment of this Act, no United
States national may bring an action under this sec-
tion unless such national acquired ownership of the
claim to the confiscated property before such date.
(C) In the case of property confiscated on or
after the date of the enactment of this Act, no Unit-
ed States national who acquired ownership of a
claim to confiscated property by assignment for
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value after such date of enactment may bring an ac-
tion on the claim under this section.
(5) TREATMENT OF CERTAIN ACTIONS.—(A) In
the case of any action brought under this section by
a United States national who was eligible to file the
underlying claim in the action with the Foreign
Claims Settlement Commission under title V of the
International Claims Settlement Act of 1949 but did
not so file the claim, the court may hear the case
only if the court determines that the United States
national had good cause for not filing the claim.
(B) In the case of any action brought under
this section by a United States national whose claim
in the action was timely filed with the Foreign
Claims Settlement Commission under title V of the
International Claims Settlement Act of 1949 but
was denied by the Commission, the court may assess
the basis for the denial and may accept the findings
of the Commission on the claim as conclusive in the
action under this section unless good cause justifies
another result.
(6) INAPPLICABILITY OF ACT OF STATE DOC-
TRINE.—No court of the United States shall decline,
based upon the act of state doctrine, to make a de-
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termination on the merits in an action brought
under paragraph (1).
(b) DEFINITION.—As used in this subsection, the
term ‘‘agency or instrumentality of a foreign state’’ has
the meaning given that term in section 1603(b) of title
28, United States Code.
(c) JURISDICTION.—
(1) IN GENERAL.—Chapter 85 of title 28, Unit-
ed States Code, is amended by inserting after sec-
tion 1331 the following new section:
‘‘§ 1331a. Civil actions involving confiscated property
‘‘The district courts shall have exclusive jurisdiction
of any action brought under section 6252 of the Cuban
Liberty and Democratic Solidarity (LIBERTAD) Act of
1995, regardless of the amount in controversy.’’.
(2) CONFORMING AMENDMENT.—The table of
sections for chapter 85 of title 28, United States
Code, is amended by inserting after the item relating
to section 1331 the following:
‘‘1331a. Civil actions involving confiscated property.’’.
(d) CERTAIN PROPERTY IMMUNE FROM EXECU-
TION.—Section 1611 of title 28, United States Code, is
amended by adding at the end the following:
‘‘(c) Notwithstanding the provisions of section 1610
of this chapter, the property of a foreign state shall be
immune from attachment and from execution in an action
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brought under section 6252 of the Cuban Liberty and
Democratic Solidarity (LIBERTAD) Act of 1995 to the
extent the property is a facility or installation used by an
accredited diplomatic mission for official purposes.’’.
(e) ELECTION OF REMEDIES.—
(1) ELECTION.—Subject to paragraph (2)—
(A) any United States national that brings
an action under this section may not bring any
other civil action or proceeding under the com-
mon law, Federal law, or the law of any of the
several States, the District of Columbia, or any
territory or possession of the United States,
that seeks monetary or nonmonetary compensa-
tion by reason of the same subject matter; and
(B) any person who brings, under the com-
mon law or any provision of law other than this
section, a civil action or proceeding for mone-
tary or nonmonetary compensation arising out
of a claim for which an action would otherwise
be cognizable under this section may not bring
an action under this section on that claim.
(2) TREATMENT OF CERTIFIED CLAIMANTS.—
In the case of any United States national that
brings an action under this section based on a claim
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certified under title V of the International Claims
Settlement Act of 1949—
(A) if the recovery in the action is equal to
or greater than the amount of the certified
claim, the United States national may not re-
ceive payment on the claim under any agree-
ment entered into between the United States
and Cuba settling claims covered by such title,
and such national shall be deemed to have dis-
charged the United States from any further re-
sponsibility to represent the United States na-
tional with respect to that claim;
(B) if the recovery in the action is less
than the amount of the certified claim, the
United States national may receive payment
under a claims agreement described in subpara-
graph (A) but only to the extent of the dif-
ference between the amount of the recovery and
the amount of the certified claim; and
(C) if there is no recovery in the action,
the United States national may receive payment
on the certified claim under a claims agreement
described in subparagraph (A) to the same ex-
tent as any certified claimant who does not
bring an action under this section.
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(f) DEPOSIT OF EXCESS PAYMENTS BY CUBA UNDER
CLAIMS AGREEMENT.—Any amounts paid by Cuba under
any agreement entered into between the United States and
Cuba settling certified claims under title V of the Inter-
national Claims Settlement Act of 1949 that are in excess
of the payments made on such certified claims after the
application of subsection (e) shall be deposited into the
United States Treasury.
(g) TERMINATION OF RIGHTS.—
(1) IN GENERAL.—All rights created under this
section to bring an action for money damages with
respect to property confiscated before the date of the
enactment of this Act shall cease upon the transmit-
tal to the Congress of a determination of the Presi-
dent under section 6233(c)(3).
(2) PENDING SUITS.—The termination of rights
under paragraph (1) shall not affect suits com-
menced before the date of such termination, and in
all such suits, proceedings shall be had, appeals
taken, and judgments rendered in the same manner
and with the same effect as if this subsection had
not been enacted.
SEC. 6253. DETERMINATION OF CLAIMS TO CONFISCATED
PROPERTY.
(a) EVIDENCE OF OWNERSHIP.—
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(1) CONCLUSIVENESS OF CERTIFIED CLAIMS.—
In any action brought under this part, the courts
shall accept as conclusive proof of ownership a cer-
tification of a claim to ownership that has been
made by the Foreign Claims Settlement Commission
pursuant to title V of the International Claims Set-
tlement Act of 1949 (22 U.S.C. 1643 and following).
(2) CLAIMS NOT CERTIFIED.—In the case of a
claim that has not been certified by the Foreign
Claims Settlement Commission before the enactment
of this Act, a court may appoint a special master,
including the Foreign Claims Settlement Commis-
sion, to make determinations regarding the amount
and validity of claims to ownership of confiscated
property. Such determinations are only for evi-
dentiary purposes in civil actions brought under this
part and do not constitute certifications pursuant to
title V of the International Claims Settlement Act of
1949.
(3) EFFECT OF DETERMINATIONS OF FOREIGN
ENTITIES.—In determining ownership, courts shall
not accept as conclusive evidence of ownership any
findings, orders, judgments, or decrees from admin-
istrative agencies or courts of foreign countries or
international organizations that invalidate the claim
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held by a United States national, unless the invali-
dation was found pursuant to binding international
arbitration to which United States national submit-
ted the claim.
(b) AMENDMENT OF THE INTERNATIONAL CLAIMS
SETTLEMENT ACT OF 1949.—Title V of the International
Claims Settlement Act of 1949 (22 U.S.C. 1643 and fol-
lowing) is amended by adding at the end the following new
section:
‘‘EVALUATION OF OWNERSHIP CLAIMS REFERRED BY
DISTRICT COURTS OF THE UNITED STATES
‘‘SEC. 514. Notwithstanding any other provision of
this title and only for purposes of section 6252 the Cuban
Liberty and Solidarity (LIBERTAD) Act, a United States
district court, for fact-finding purposes, may refer to the
Commission, and the Commission may determine, ques-
tions of the amount and ownership of a claim by a United
States national (as defined in section 6204 of the Cuban
Liberty and Solidarity (LIBERTAD) Act) resulting from
the confiscation of property by the Government of Cuba
described in section 503(a), whether or not the United
States national qualified as a national of the United States
(as defined in section 502(1)) at the time of the action
by the Government of Cuba.’’.
(c) RULE OF CONSTRUCTION.—Nothing in this sub-
title or section 514 of the International Claims Settlement
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Act of 1949, as added by subsection (b), shall be con-
strued—
(1) to require or otherwise authorize the claims
of Cuban nationals who became United States citi-
zens after their property was confiscated to be in-
cluded in the claims certified to the Secretary of
State by the Foreign Claims Settlement Commission
for purposes of future negotiation and espousal of
claims with a friendly government in Cuba when dip-
lomatic relations are restored; or
(2) as superseding, amending, or otherwise al-
tering certifications that have been made pursuant
to title V of the International Claims Settlement Act
of 1949 before the enactment of this Act.
SEC. 6254. EXCLUSIVITY OF FOREIGN CLAIMS SETTLEMENT
COMMISSION CERTIFICATION PROCEDURE.
Title V of the International Claims Settlement Act
of 1949 (22 U.S.C. 1643 and following), as amended by
section 6253, is further amended by adding at the end
the following new section:
‘‘EXCLUSIVITY OF FOREIGN CLAIMS SETTLEMENT
COMMISSION CERTIFICATION PROCEDURE
‘‘SEC. 515. (a) Subject to subsection (b), neither any
national of the United States who was eligible to file a
claim under section 503 but did not timely file such claim
under that section, nor any national of the United States
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(on the date of the enactment of this section) who was
not eligible to file a claim under that section, nor any na-
tional of Cuba, including any agency, instrumentality, sub-
division, or enterprise of the Government of Cuba or any
local government of Cuba in place on the date of the enact-
ment of this section, nor any successor thereto, whether
or not recognized by the United States, shall have a claim
to, participate in, or otherwise have an interest in, the
compensation proceeds or other nonmonetary compensa-
tion paid or allocated to a national of the United States
by virtue of a claim certified by the Commission under
section 507, nor shall any court of the United States or
any State court have jurisdiction to adjudicate any such
claim.
‘‘(b) Nothing in subsection (a) shall be construed to
detract from or otherwise affect any rights in the shares
of the capital stock of nationals of the United States own-
ing claims certified by the Commission under section
507.’’.
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PART 4—EXCLUSION OF CERTAIN ALIENS
SEC. 6271. EXCLUSION FROM THE UNITED STATES OF
ALIENS WHO HAVE CONFISCATED PROPERTY
OF UNITED STATES NATIONALS OR WHO
TRAFFIC IN SUCH PROPERTY.
(a) GROUNDS FOR EXCLUSION.—The Secretary of
State, in consultation with the Attorney General, shall ex-
clude from the United States any alien who the Secretary
of State determines is a person who—
(1) has confiscated, or has directed or overseen
the confiscation of, property a claim to which is
owned by a United States national, or converts or
has converted for personal gain confiscated property,
a claim to which is owned by a United States na-
tional;
(2) traffics in confiscated property, a claim to
which is owned by a United States national;
(3) is a corporate officer, principal, or share-
holder with a controlling interest of an entity which
has been involved in the confiscation of property or
trafficking in confiscated property, a claim to which
is owned by a United States national; or
(4) is a spouse, minor child, or agent of a per-
son excludable under paragraph (1), (2), or (3).
(b) DEFINITIONS.—As used in this section, the fol-
lowing terms have the following meanings:
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(1) CONFISCATED; CONFISCATION.—The terms
‘‘confiscated’’ and ‘‘confiscation’’ refer to—
(A) the nationalization, expropriation, or
other seizure by foreign governmental authority
of ownership or control of property on or after
January 1, 1959—
(i) without the property having been
returned or adequate and effective com-
pensation provided; or
(ii) without the claim to the property
having been settled pursuant to an inter-
national claims settlement agreement or
other mutually accepted settlement proce-
dure; and
(B) the repudiation by foreign govern-
mental authority of, the default by foreign gov-
ernmental authority on, or the failure by for-
eign governmental authority to pay, on or after
January 1, 1959—
(i) a debt of any enterprise which has
been nationalized, expropriated, or other-
wise taken by foreign governmental author-
ity;
(ii) a debt which is a charge on prop-
erty nationalized, expropriated, or other-
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wise taken by foreign governmental author-
ity; or
(iii) a debt which was incurred by for-
eign governmental authority in satisfaction
or settlement of a confiscated property
claim.
(2) PROPERTY.—The term ‘‘property’’ does not
include claims arising from a territory in dispute as
a result of war between United Nations member
states in which the ultimate resolution of the dis-
puted territory has not been resolved.
(3) TRAFFICS.—(A) A person or entity ‘‘traf-
fics’’ in property if that person or entity knowingly
and intentionally—
(i) sells, transfers, distributes, dispenses,
brokers, manages, or otherwise disposes of con-
fiscated property, or purchases, leases, receives,
possesses, obtains control of, manages, uses, or
otherwise acquires or holds an interest in con-
fiscated property,
(ii) engages in a commercial activity using
or otherwise benefiting from confiscated prop-
erty, or
(iii) causes, directs, participates in, or
profits from, trafficking (as described in clauses
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(i) and (ii)) by another person, or otherwise en-
gages in trafficking (as described in clauses (i)
and (ii)) through another person,
without the authorization of the United States na-
tional who holds a claim to the property.
(B) The term ‘‘traffics’’ does not include—
(i) the delivery of international tele-
communication signals to Cuba that are author-
ized by section 1705(e) of the Cuban Democ-
racy Act of 1992 (22 U.S.C. 6004(e)); or
(ii) the trading or holding of securities
publicly traded or held, unless the trading is
with or by a person determined by the Sec-
retary of the Treasury to be a specially des-
ignated national.
(c) NATIONAL INTEREST EXEMPTION.—This section
shall not apply where the Secretary of State finds, on a
case-by-case basis, that making a determination under
subsection (a) would be contrary to the national interest
of the United States.
(d) EFFECTIVE DATE.—
(1) IN GENERAL.—This section applies to aliens
seeking to enter the United States on or after the
date of the enactment of this Act.
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(2) TRAFFICKING.—This section applies only
with respect to acts within the meaning of ‘‘traffics’’
that occur on or after the date of the enactment of
this Act.
TITLE VII—COMMITTEE ON THE
JUDICIARY
SEC. 7001. PATENT AND TRADEMARK FEES.
Section 10101 of the Omnibus Budget Reconciliation
Act of 1990 (35 U.S.C. 41 note) is amended—
(1) in subsection (a) by striking ‘‘1998’’ and in-
serting ‘‘2002’’;
(2) in subsection (b)(2) by striking ‘‘1998’’ and
inserting ‘‘2002’’; and
(3) in subsection (c)—
(A) by striking ‘‘through 1998’’ and insert-
ing ‘‘through 2002’’; and
(B) by adding at the end the following:
‘‘(9) $119,000,000 in fiscal year 1999.
‘‘(10) $119,000,000 in fiscal year 2000.
‘‘(11) $119,000,000 in fiscal year 2001.
‘‘(12) $119,000,000 in fiscal year 2002.’’.
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TITLE VIII—COMMITTEE ON
NATIONAL SECURITY
Subtitle A—Military Retired Pay
SEC. 8001. ELIMINATION OF DISPARITY BETWEEN EFFEC-
TIVE DATES FOR MILITARY AND CIVILIAN RE-
TIREE COST-OF-LIVING ADJUSTMENTS FOR
FISCAL YEARS 1996, 1997, AND 1998.
(a) CONFORMANCE WITH SCHEDULE
FOR CIVIL
SERVICE
COLAS.—Subparagraph 
(B) 
of 
section
1401a(b)(2) of title 10, United States Code, is amended—
(1) by striking out ‘‘THROUGH 1998’’ the first
place it appears and all that follows through ‘‘In the
case of’’ the second place it appears and inserting in
lieu thereof ‘‘THROUGH 1996.—In the case of’’;
(2) by striking ‘‘of 1994, 1995, 1996, or 1997’’
and inserting in lieu thereof ‘‘of 1993, 1994, or
1995’’; and
(3) by striking out ‘‘September’’ and inserting
in lieu thereof ‘‘March’’.
(b) REPEAL OF PRIOR CONDITIONAL ENACTMENT.—
Section 8114A(b) of Public Law 103–335 (108 Stat.
2648) is repealed.
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Subtitle B—Naval Petroleum
Reserves
SEC. 8011. SALE OF NAVAL PETROLEUM RESERVES.
(a) SALE OF RESERVES REQUIRED.—Chapter 641 of
title 10, United States Code, is amended by inserting after
section 7421 the following new section:
‘‘§ 7421a. Sale of naval petroleum reserves
‘‘(a) SALE REQUIRED.—(1) Notwithstanding any
other provision of this chapter, the Secretary shall sell all
right, title, and interest of the United States in and to
the lands owned or controlled by the United States inside
the naval petroleum and oil shale reserves established by
this chapter. In the case of Naval Petroleum Reserve
Numbered 1, the lands to be sold shall include sections
16 and 36 of township 30 south, range 23 east, Mount
Diablo Principal Meridian, California.
‘‘(2) Not later than September 30, 1996, the Sec-
retary shall enter into one or more contracts for the sale
of all of the interest of the United States in the naval
petroleum reserves.
‘‘(b) TIMING AND ADMINISTRATION OF SALE.—(1)
Not later than January 1, 1996, the Secretary shall retain
the services of five independent experts in the valuation
of oil and gas fields to conduct separate assessments, in
a manner consistent with commercial practices, of the fair
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market value of the interest of the United States in each
naval petroleum reserve. In making their assessments for
each naval petroleum reserve, the independent experts
shall consider (among other factors) all equipment and fa-
cilities to be included in the sale, the net present value
of the reserve, and the net present value of the anticipated
revenue stream that the Secretary determines the Treas-
ury would receive from the reserve if it were not sold, ad-
justed for any anticipated increases in tax revenues that
would result if it were sold. The independent experts shall
complete their assessments not later than June 1, 1996.
In setting the minimum acceptable price for each naval
petroleum reserve, the Secretary shall consider the average
of the five assessments regarding the reserve or, if more
advantageous to the Government, the average of three as-
sessments after excluding the high and low assessments.
‘‘(2) Not later than March 1, 1996, the Secretary
shall retain the services of an investment banker to inde-
pendently administer, in a manner consistent with com-
mercial practices and in a manner that maximizes sale
proceeds to the Government, the sale of the naval petro-
leum reserves under this section. The Secretary may enter
into the contracts required under this paragraph and
paragraph (1) on a noncompetitive basis.
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‘‘(3) Not later than June 1, 1996, the sales adminis-
trator selected under paragraph (2) shall complete a draft
contract for the sale of each naval petroleum reserve,
which shall accompany the invitation for bids and describe
the terms and provisions of the sale of the interest of the
United States in the reserve. Each draft contract shall
identify all equipment and facilities to be included in the
sales. Each draft contract, including the terms and provi-
sions of the sale of the interest of the United States in
the naval petroleum reserves, shall be subject to review
and approval by the Secretary, the Secretary of the Treas-
ury, and the Director of the Office of Management and
Budget.
‘‘(4) Not later than July 1, 1996, the Secretary shall
publish an invitation for bids for the purchase of the naval
petroleum reserves.
‘‘(5) Not later than September 1, 1996, the Secretary
shall accept the highest responsible offer for purchase of
the interest of the United States in the naval petroleum
reserves, or a particular reserve, that meets or exceeds the
minimum acceptable price determined under paragraph
(1). The Secretary may accept an offer for only a portion
of a reserve so long as the entire reserve is still sold under
this section at a price that meets or exceeds the minimum
acceptable price.
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‘‘(c) FUTURE LIABILITIES.—To effectuate the sale of
the interest of the United States in a naval petroleum re-
serve, the Secretary may extend such indemnities and war-
ranties as the Secretary considers reasonable and nec-
essary to protect the purchaser from claims arising from
the ownership in the reserve by the United States.
‘‘(d) SPECIAL RULES PREPARATORY TO SALE OF
NAVAL PETROLEUM RESERVE NUMBERED 1.—(1) Not
later than June 1, 1996, the Secretary shall finalize equity
interests of the known oil and gas zones in Naval Petro-
leum Reserve Numbered 1 in the manner provided by this
subsection.
‘‘(2) The Secretary shall retain the services of an
independent petroleum engineer, mutually acceptable to
the equity owners, who shall prepare a recommendation
on final equity figures. The Secretary may accept the rec-
ommendation of the independent petroleum engineer for
final equity in each known oil and gas zone and establish
final equity interest in the Naval Petroleum Reserve Num-
bered 1 in accordance with such recommendation, or the
Secretary may use such other method to establish final
equity interest in that reserve as the Secretary considers
appropriate. The Secretary may enter into the contract re-
quired under this paragraph on a noncompetitive basis.
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‘‘(3) If, on the effective date of this section, there
is an ongoing equity redetermination dispute between the
equity owners under section 9(b) of the unit plan contract,
such dispute shall be resolved in the manner provided in
the unit plan contract not later than June 1, 1996. Such
resolution shall be considered final for all purposes under
this section.
‘‘(4) In this section, the term ‘unit plan contract’
means the unit plan contract between equity owners of the
lands within the boundaries of Naval Petroleum Reserve
Numbered 1 (Elk Hills) entered into on June 19, 1944.
‘‘(e) PRODUCTION ALLOCATION REGARDING NAVAL
PETROLEUM RESERVE NUMBERED 1.—(1) As part of the
contract for purchase of Naval Petroleum Reserve Num-
bered 1, the purchaser of the interest of the United States
in that reserve shall agree to make up to 25 percent of
the purchaser’s share of annual petroleum production
from the purchased lands available for sale to small refin-
ers, which do not have their own adequate sources of sup-
ply of petroleum, for processing or use only in their own
refineries. None of the reserved production sold to small
refiners may be resold in kind. The purchaser of that re-
serve may reduce the quantity of petroleum reserved under
this subsection in the event of an insufficient number of
qualified bids. The seller of this petroleum production has
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the right to refuse bids that are less than the prevailing
market price of comparable oil.
‘‘(2) The purchaser of Naval Petroleum Reserve
Numbered 1 shall also agree to ensure that the terms of
every sale of the purchaser’s share of annual petroleum
production from the purchased lands shall be so struc-
tured as to give full and equal opportunity for the acquisi-
tion of petroleum by all interested persons, including
major and independent oil producers and refiners alike.
‘‘(f) MAINTAINING PRODUCTION PENDING SALE OF
NAVAL PETROLEUM RESERVE NUMBERED 1.—Until the
sale of Naval Petroleum Reserve Numbered 1 is completed
under this section, the Secretary shall continue to produce
that reserve at the maximum daily oil or gas rate from
a reservoir, which will permit maximum economic develop-
ment of the reservoir consistent with sound oil field engi-
neering practices in accordance with section 3 of the unit
plan contract. The definition of maximum efficient rate
in section 7420(6) of this title shall not apply to Naval
Petroleum Reserve Numbered 1.
‘‘(g) EFFECT ON EXISTING CONTRACTS.—(1) In the
case of any contract, in effect on the effective date of this
section, for the purchase of production from any part of
the United States’ share of the naval petroleum reserves,
the sale of the interest of the United States in the reserves
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shall be subject to the contract for a period of three
months after the closing date of the sale or until termi-
nation of the contract, whichever occurs first. The term
of any contract entered into after the effective date of this
section for the purchase of such production shall not ex-
ceed the anticipated closing date for the sale of the re-
serve.
‘‘(2) In the case of Naval Petroleum Reserve Num-
bered 1, the Secretary shall exercise the termination pro-
cedures provided in the contract between the United
States and Bechtel Petroleum Operation, Inc., Contract
Number DE–ACO1–85FE60520 so that the contract ter-
minates not later than the date of closing of the sale of
that reserve.
‘‘(3) In the case of Naval Petroleum Reserve Num-
bered 1, the Secretary shall exercise the termination pro-
cedures provided in the unit plan contract so that the unit
plan contract terminates not later than the date of closing
of the sale of that reserve.
‘‘(h) OFFER OF SETTLEMENT OF STATE OF CALI-
FORNIA CLAIMS REGARDING NAVAL PETROLEUM RE-
SERVE NUMBERED 1.—(1) In connection with the sale of
Naval Petroleum Reserve Numbered 1, the Secretary shall
offer to settle all claims against the United States by the
State of California and the Teachers’ Retirement Fund
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of the State of California with respect to lands within that
reserve, including sections 16 and 36 of township 30
south, range 23 east, Mount Diablo Principal Meridian,
California, or production or proceeds of sale from that re-
serve. Subject to paragraph (2), the Secretary shall offer
in settlement of such claims—
‘‘(A) a payment from funds provided for this
purpose in advance in appropriation Acts;
‘‘(B) a grant of land pursuant to sections 2275
and 2276 of the Revised Statutes of the United
States (43 U.S.C. 851 and 852) so long as such
land is not generating revenue for the United States;
‘‘(C) any other option that would not be incon-
sistent with the Congressional Budget Act of 1974
(2 U.S.C. 621 et seq.); or
‘‘(D) any combination of subparagraphs (A),
(B), and (C).
‘‘(2) The value of any payment, grant, or option (or
combination thereof) offered as settlement under para-
graph (1) may not exceed an amount equal to seven per-
cent of the proceeds from the sale of Naval Petroleum Re-
serve Numbered 1, after deducting the costs incurred to
conduct the sale of that reserve.
‘‘(3) Acceptance of the settlement offered under para-
graph (1) shall be subject to the condition that all claims
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against the United States by the State of California or
the Teachers’ Retirement Fund of the State of California
are released with respect to lands within the Naval Petro-
leum Reserve Numbered 1, including sections 16 and 36
of township 30 south, range 23 east, Mount Diablo Prin-
cipal Meridian, California, or production or proceeds of
sale from that reserve. The Secretary may specify the
manner in which the release of such claims shall be evi-
denced.
‘‘(i) EFFECT ON ANTITRUST LAWS.—Nothing in this
section shall be construed to alter the application of the
antitrust laws of the United States to the purchaser of
a naval petroleum reserve or to the lands in the naval pe-
troleum reserves subject to sale under this section upon
the completion of the sale.
‘‘(j) PRESERVATION OF PRIVATE RIGHT, TITLE, AND
INTEREST.—Nothing in this section shall be construed to
adversely affect the ownership interest of any other entity
having any right, title, and interest in and to lands within
the boundaries of the naval petroleum reserves.
‘‘(k) CONGRESSIONAL NOTIFICATION.—Section 7431
of this title shall not apply to the sale of the naval petro-
leum reserves under this section. However, the Secretary
may not enter into a contract for the sale of a naval petro-
leum reserve until the end of the 15-day period beginning
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on the date on which the Secretary notifies the Committee
on Armed Services of the Senate and the Committee on
National Security and the Committee on Commerce of the
House of Representatives that the Secretary has accepted
an offer under subsection (b)(5) for the sale of that re-
serve.’’.
(b) CLERICAL AMENDMENT.—The table of sections
at the beginning of such chapter is amended by inserting
after the item relating to section 7421 the following new
item:
‘‘7421a. Sale of naval petroleum reserves.’’.
Subtitle C—National Defense
Stockpile
SEC. 8021. DISPOSAL OF CERTAIN MATERIALS IN NATIONAL
DEFENSE STOCKPILE FOR DEFICIT REDUC-
TION.
(a) DISPOSALS REQUIRED.—(1) During fiscal year
1996, the President shall dispose of all cobalt contained
in the National Defense Stockpile that, as of the date of
the enactment of this Act, is authorized for disposal under
any law (other than this Act).
(2) In addition to the disposal of cobalt under para-
graph (1), the President shall dispose of additional quan-
tities of cobalt and quantities of aluminum, ferro colum-
bium, germanium, palladium, platinum, and rubber con-
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tained in the National Defense Stockpile so as to result
in receipts to the United States in amounts equal to—
(A) $21,000,000 during the fiscal year ending
September 30, 1996;
(B) $338,000,000 during the five-fiscal year pe-
riod ending on September 30, 2000; and
(C) $649,000,000 during the seven-fiscal year
period ending on September 30, 2002.
(3) The President is not required to include the dis-
posal of the materials identified in paragraph (2) in an
annual materials plan for the National Defense Stockpile.
Disposals made under this section may be made without
consideration of the requirements of an annual materials
plan.
(b) LIMITATION ON DISPOSAL QUANTITY.—The total
quantities of materials authorized for disposal by the
President under subsection (a)(2) may not exceed the
amounts set forth in the following table:
Authorized Stockpile Disposals
Material for disposal
Quantity
Aluminum .............................................................................
62,881 short tons
Cobalt ....................................................................................
42,482,323 pounds con-
tained
Ferro Columbium ..................................................................
930,911 pounds contained
Germanium ...........................................................................
68,207 kilograms
Palladium ..............................................................................
1,264,601 troy ounces
Platinum ...............................................................................
452,641 troy ounces
Rubber ..................................................................................
125,138 long tons
(c) DEPOSIT OF RECEIPTS.—Notwithstanding sec-
tion 9 of the Strategic and Critical Materials Stock Piling
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Act (50 U.S.C. 98h), funds received as a result of the dis-
posal of materials under subsection (a)(2) shall be depos-
ited into the general fund of the Treasury for the purpose
of deficit reduction.
(d) RELATIONSHIP TO OTHER DISPOSAL AUTHOR-
ITY.—The disposal authority provided in subsection (a)(2)
is new disposal authority and is in addition to, and shall
not affect, any other disposal authority provided by law
regarding the materials specified in such subsection.
(e) TERMINATION OF DISPOSAL AUTHORITY.—The
President may not use the disposal authority provided in
subsection (a)(2) after the date on which the total amount
of receipts specified in subparagraph (C) of such sub-
section is achieved.
(f) DEFINITION.—The term ‘‘National Defense
Stockpile’’ means the National Defense Stockpile provided
for in section 4 of the Strategic and Critical Materials
Stock Piling Act (50 U.S.C. 98c).
TITLE IX—COMMITTEE ON
RESOURCES
SEC. 9000. TABLE OF CONTENTS.
The table of contents for this title is as follows:
TITLE IX—COMMITTEE ON RESOURCES
Sec. 9000. Table of contents.
Subtitle A—Alaska and Helium Privatization
PART 1—ALASKA
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Sec. 9001. Exports of Alaskan North Slope oil.
Sec. 9002. Arctic Coastal Plain leasing and revenue.
Sec. 9003. Alaska Power Administration sale.
PART 2—HELIUM PRIVATIZATION
Sec. 9011. Short title.
Sec. 9012. Amendment of Helium Act.
Sec. 9013. Authority of Secretary.
Sec. 9014. Sale of crude helium.
Sec. 9015. Elimination of stockpile.
Sec. 9016. Repeal of authority to borrow.
Sec. 9017. Reports.
Sec. 9018. Land conveyance in Potter County, Texas.
Subtitle B—Water and Power
PART 1—POWER MARKETING ADMINISTRATIONS
Sec. 9201. Short title.
Sec. 9202. Evaluation of sales of Southeastern, Southwestern, and Western
Area Power Administration facilities.
Sec. 9203. Bonneville Power Administration appropriations refinancing.
PART 2—RECLAMATION
Sec. 9211. Prepayment of certain repayment contracts between the United
States and the Central Utah Water Conservancy District.
Sec. 9212. Treatment of city of Folsom as a Central Valley Project contractor.
Sec. 9213. Sly Park.
Sec. 9214. Hetch Hetchy Dam.
Subtitle C—National Parks, Forests, and Public Lands
PART 1—CONCESSION REFORM
Sec. 9301. Short title.
Sec. 9302. Purpose.
Sec. 9303. Definitions.
Sec. 9304. Nature and types of concession authorizations.
Sec. 9305. Competitive selection process for concession service agreements.
Sec. 9306. Concessioner evaluations.
Sec. 9307. Capital improvements.
Sec. 9308. Duration of concession authorization.
Sec. 9309. Rates and charges to the public.
Sec. 9310. Transferability of concession authorizations.
Sec. 9311. Fees charged by the United States for concession authorizations.
Sec. 9312. Disposition of fees.
Sec. 9313. Dispute resolution.
Sec. 9314. Recordkeeping.
Sec. 9315. Application of general governmental acquisition requirements.
Sec. 9316. Rules of construction.
Sec. 9317. Regulations.
Sec. 9318. Relationship to other existing laws.
PART 2—NATIONAL FOREST SKI AREAS
Sec. 9321. Privatization of Forest Service ski areas.
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Sec. 9322. Ski area permit fees and withdrawal of ski areas from operation of
mining laws.
PART 3—DOMESTIC LIVESTOCK GRAZING
Sec. 9331. Applicable regulations.
Sec. 9332. Fees and charges.
Sec. 9333. Animal unit month.
Sec. 9334. Term of grazing permits or grazing leases.
Sec. 9335. Conformance with land use plan.
Sec. 9336. Effective date.
PART 4—REGIONAL DISPOSAL FACILITY OF SOUTHWESTERN LOW LEVEL
RADIOACTIVE WASTE DISPOSAL COMPACT
Sec. 9341. Conveyance of property.
Sec. 9342. Conveyance of easements.
Subtitle D—Territories
PART 1—COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS
Sec. 9401. Termination of annual direct grant assistance.
PART 2—TERRITORIAL ADMINISTRATIVE CESSATION ACT
Sec. 9421. Short title.
Sec. 9422. Congressional findings.
Sec. 9423. Elimination of Office of Territorial and International Affairs.
Sec. 9424. Certain activities not funded.
Subtitle E—Minerals
PART 1—HARDROCK MINING
Sec. 9501. Findings and purpose.
Sec. 9502. Patents under the general mining law.
Sec. 9503. Royalty under the general mining law.
Sec. 9504. Mineral materials.
Sec. 9505. Claim maintenance requirements.
PART 2—FEDERAL OIL AND GAS ROYALTIES
Sec. 9511. Short title.
Sec. 9512. Definitions.
Sec. 9513. Limitation periods.
Sec. 9514. Adjustment and refunds.
Sec. 9515. Required recordkeeping.
Sec. 9516. Royalty interest, penalties, and payments.
Sec. 9517. Limitation on assessments.
Sec. 9518. Alternatives for marginal properties.
Sec. 9519. Royalty in kind.
Sec. 9520. Royalty simplification and cost-effective audit and collection require-
ments.
Sec. 9521. Repeals.
Sec. 9522. Delegation to States.
Sec. 9523. Performance standard.
Sec. 9524. Indian lands.
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‘‘(b) STORAGE, TRANSPORTATION, AND SALE.—The
Secretary is authorized to store, transport, and sell helium
only in accordance with this Act.
‘‘(c) MONITORING AND REPORTING.—The Secretary
is authorized to monitor helium production and helium re-
serves in the United States and to periodically prepare re-
ports regarding the amounts of helium produced and the
quantity of crude helium in storage in the United States.
‘‘SEC. 4. STORAGE, TRANSPORTATION, AND WITHDRAWAL
OF CRUDE HELIUM.
‘‘(a) STORAGE, TRANSPORTATION, 
AND
WITH-
DRAWAL.—The Secretary is authorized to store and trans-
port crude helium and to maintain and operate existing
crude helium storage at the Bureau of Mines Cliffside
Field, together with related helium transportation and
withdrawal facilities.
‘‘(b) CESSATION OF PRODUCTION, REFINING, AND
MARKETING.—Effective 18 months after the date of en-
actment of the Helium Privatization Act of 1995, the Sec-
retary shall cease producing, refining and marketing re-
fined helium and shall cease carrying out all other activi-
ties relating to helium which the Secretary was authorized
to carry out under this Act before the date of enactment
of the Helium Privatization Act of 1995, except those ac-
tivities described in subsection (a). The amount of helium