H. R. 2491—139
proceeding or claim for royalty due on locatable minerals pro-
duced and sold, or relating to such production, may be brought
by the United States, including but not limited to any claim
for additional royalties or claim of the right to offset the amount
of such additional royalties against amounts owed to any person
by the United States, unless judicial suit or administrative
proceedings are commenced to recover specific amounts claimed
to be due prior to the expiration of 3 years from the date
such royalty is alleged to have been due.
(j) TRANSITIONAL RULES.—Any mining claim for which a patent
is issued pursuant to section 5374(c) shall not be subject to the
obligation to pay the royalty pursuant to this section. Royalty
payments for any claim processed under section 5374(c) shall be
suspended pending final determination of the right to patent. For
any such claim that is determined not to qualify for the issuance
of a patent under section 5374(c), royalties shall be payable under
this section on production after the date of enactment of this Act,
plus interest computed at the rate published by the Department
of the Treasury as the ‘‘Treasury Current Value of Funds Rate’’
on production after such date of enactment and before the date
of such determination.
(k) PENALTIES.—Any person who withholds payment or royal-
ties under this section after a final, nonappealable determination
of liability may be liable for civil penalties of up to $5,000 per
day that payment is withheld after becoming due.
(l) DISBURSEMENT OF REVENUES.—The receipts from royalties
collected under this section shall be disbursed as follows:
(1) Fifty percent of such receipts shall be paid into the
Treasury of the United States and deposited as miscellaneous
receipts.
(2) Forty percent of such receipts shall be paid into a
State Fund or Federal Fund in accordance with section 5376;
until termination as provided in section 5379.
(3) Ten percent of such receipts shall be paid by the Sec-
retary of the Treasury to the State in which the mining claim
from which production occurred is located.
SEC. 5376. ABANDONED LOCATABLE MINERALS MINE RECLAMATION
FUND.
(a) STATE FUND.—Any State within which royalties are collected
pursuant to section 5375 from a mining claim and which wishes
to become eligible to receive such proceeds allocated by paragraph
5375(l)(2) shall establish and maintain an interest-bearing aban-
doned locatable mineral mine reclamation fund (hereinafter referred
to in this chapter as ‘‘State Fund’’) to accomplish the purposes
of this chapter. States with existing abandoned locatable mineral
reclamation programs shall qualify to receive proceeds allocated
by section 5375(l)(2).
(b) FEDERAL FUND.—There is established on the books of the
Treasury of the United States an interest-bearing fund to be known
as the Abandoned Locatable Minerals Mine Reclamation Fund
(hereinafter referred to in this chapter as ‘‘Federal Fund’’) which
shall consist of royalty proceeds allocated by paragraph 5375(l)(2)
from mining claims in a State where a State Fund has not been
established or maintained under subsection (a).
H. R. 2491—140
SEC. 5377. ALLOCATION AND PAYMENTS.
(a) STATE FUND.—Royalties collected pursuant to section 5375
and allocated by section 5375(l)(2) shall be paid by the Secretary
of the Treasury to the State Fund established pursuant to sub-
section 5376(a) for the State where the mining claim from which
the production occurred is located. Payments to States under this
subsection with respect to any royalties received by the United
States, shall be made not later than the last business day of
the month in which such royalties are warranted by the United
States Treasury to the Secretary of the Interior as having been
received, except for any portion of such royalties which is under
challenge, which shall be placed in a suspense account pending
resolution of such challenge. Such warrants shall be issued by
the United States Treasury not later than 10 days after receipt
of such royalties by the Treasury. Royalties placed in a suspense
account which are determined to be due the United States shall
be payable to a State Fund not later than fifteen days after such
challenge is resolved. Any such amount placed in a suspense account
pending resolution shall bear interest until the challenge is resolved.
In determining the amount of payments to State Funds under
this section, the amount of such payments shall not be reduced
by any administrative or other costs incurred by the United States.
(b) FEDERAL FUND.—Royalties collected pursuant to section
5375, and allocated by paragraph 5375(l)(2), from mining claims
located in a State which has not established or maintained a State
Fund, and such royalties from mining claims located in a State
for which the Secretary’s authority has expired under subsection
5379(a), shall be credited to the Federal Fund and distributed
in accordance with subsection (c).
(c) TRANSITION.—Prior to the time a State establishes a State
Fund pursuant to subsection 5376(a), any royalties collected from
a mining claim within such State shall be deposited into the Federal
Fund and allocated to such State. Once a State establishes a State
Fund under subsection 5376(a), the State allocation in the Federal
Fund with accrued interest shall be paid by the Secretary of the
Treasury to the State Fund in accordance with subsection (a).
Commencing three years after the date of enactment of this chapter,
the Secretary of the Treasury shall distribute royalty proceeds
then accrued or which are thereafter credited to the Federal Fund
equally among all States which maintain a State Fund established
under subsection 5376(a), and for which the Secretary of the Treas-
ury’s authority has not expired under subsection 5379(a).
SEC. 5378. ELIGIBLE AREA.
(a) IN GENERAL.—Subject to subsection (b), lands and water
eligible for reclamation under this chapter shall be Federal lands
that —
(1) have been adversely affected by past mineral activities
on lands abandoned and left inadequately reclaimed prior to
the date of enactment of this chapter; and
(2) for which the State determines there is no identifiable
party with a continuing reclamation responsibility under State
or Federal laws.
(b) SPECIFIC SITES AND AREAS NOT ELIGIBLE.—The following
areas shall not be eligible for expenditures from a State Fund—
(1) any area subject to a plan of operations submitted
or approved prior to, on or after the date of enactment of
H. R. 2491—141
this chapter which includes remining or reclamation of the
area adversely affected by past locatable mineral activities;
(2) any area affected by coal mining eligible for reclamation
expenditures pursuant to section 404 of the Surface Mining
Control and Reclamation Act (30 U.S.C. 1234);
(3) any area designated for remedial action pursuant to
the Uranium Mill Tailings Radiation Control Act of 1978 (42
U.S.C. 7912); and
(4) any area that was listed on the National Priorities
List pursuant to the Comprehensive Environmental Response,
Compensation and Liability Act of 1980 (42 U.S.C. 9605) prior
to the date of enactment of this chapter, or where the Environ-
mental Protection Agency has initiated or caused to be initiated
a response action pursuant to that Act.
SEC. 5379. SUNSET PROVISIONS.
(a) TERMINATION OF AUTHORITY.—The Secretary of the Treas-
ury’s authority to allocate funds to a State Fund under section
5377 shall expire on the date that the State submits a report
to the Congress which states that there are no areas in the State
eligible under subsection 5378(a) which remain to be reclaimed.
(b) TERMINATION OF FUND.—Upon the termination of authority
as provided in subsection (a) with respect to all State Funds, the
Federal Fund shall also be terminated, and all royalty proceeds
thereafter remaining in the Federal Fund shall be distributed to
the States as provided for in section 5375(l)(3).
SEC. 5380. EFFECT ON THE GENERAL MINING LAWS.
The provisions of this chapter shall supersede the general min-
ing laws only to the extent such laws conflict with the requirements
of this chapter. Where no such conflict exists, the general mining
laws, including all judicial and administrative decisions interpreting
them, shall remain in full force and effect.
SEC. 5381. SEVERABILITY.
If any provision of this chapter or the applicability thereof
to any person or circumstances is held invalid, the remainder of
this chapter and the application of such provision to other persons
or circumstances shall not be affected thereby.
SEC. 5382. MINERAL MATERIALS.
(a) DETERMINATIONS.—Section 3 of the Act of July 23, 1955
(30 U.S.C. 611), is amended as follows:
(1) Insert ‘‘(a)’’ before the first sentence.
(2) Add the following new subsection at the end thereof:
‘‘(b)(1) Subject to valid existing rights, after the date of enact-
ment of this subsection, notwithstanding the reference to common
varieties in subsection (a) and to the exception to such term relating
to a deposit of materials with some property giving it distinct
and special value, all deposits of mineral materials referred to
in such subsection, including the block pumice referred to in such
subsection, shall be subject to disposal only under the terms and
conditions of the Materials Act of 1947.
‘‘(2) For purposes of paragraph (1), the term ‘valid existing
rights’ means that a mining claim located for any such mineral
material had some property giving it the distinct and special value
referred to in subsection (a), or as the case may be, met the
definition of block pumice referred to in such subsection, was prop-
H. R. 2491—142
erly located and maintained under the general mining laws prior
to the date of the enactment of this subsection, and was supported
by a discovery of a valuable mineral deposit within the meaning
of the general mining laws as in effect immediately prior to such
date of enactment and that such claim continues to be valid under
this Act.’’.
(b) IDENTIFIED DEPOSITS.—The Act entitled ‘‘An Act to provide
for the disposal of materials on the public lands of the United
States’’, approved July 31, 1947 (30 U.S.C. 602), is amended by
adding at the end the following:
‘‘(b) IDENTIFIED DEPOSITS.—
‘‘(1) Lands known to contain valuable deposits of mineral
materials subject to this Act and subsequent amendments and
not covered by any contract, permit, or lease, for uncommon
varieties of mineral materials under this section or by a valid
mining claim for an uncommon variety of a mineral material
under the general mining laws shall be subject to disposition
by lease under this Act by the Secretary through advertisement,
competitive bidding, or such other methods as he may by gen-
eral regulations adopt, and in such reasonably compact areas
as he shall fix.
‘‘(2) All leases will be conditioned upon—
‘‘(A) the payment by the lessee of such royalty as
may be fixed in the lease, not less than two percent of
the quantity or gross value of the output of mineral mate-
rials, and
‘‘(B) the payment in advance of a rental of 25 cents
per acre for the first calendar year or fraction thereof;
50 cents per acre for the second, third, fourth, and fifth
years, respectively; and $1 per acre per annum thereafter
during the continuance of the lease, such rental for that
year being credited against royalties accruing for that year.
‘‘(3)(A) Any lease issued under this subsection shall be
for a term of 20 years and so long thereafter as the lessee
complies with the terms and conditions of the lease and upon
the further condition that at the end of each 20-year period
succeeding the date of the lease such reasonable adjustment
of the terms and conditions thereof may be made therein as
may be prescribed by the Secretary unless otherwise provided
by law at the expiration of such periods.
‘‘(B) Leases shall be conditioned upon a minimum annual
production or the payment of a minimum royalty in lieu thereof,
except when production is interrupted by strikes, the elements,
or casualties not attributable to the lessee.
‘‘(C) The Secretary may permit suspension of operations
under any such leases when marketing conditions are such
that the leases cannot be operated except at a loss.
‘‘(D) The Secretary upon application by the lessee prior
to the expiration of any existing lease in good standing shall
amend such lease to provide for the same tenure and to contain
the same conditions, including adjustment at the end of each
20-year period succeeding the date of said lease, as provided
for in this subsection.
‘‘(c) OTHER LANDS.—
‘‘(1) The Secretary is hereby authorized, under such rules
and regulations as he may prescribe, to grant to any qualified
applicant a prospecting permit which shall give the exclusive
H. R. 2491—143
right to prospect for mineral materials in lands belonging to
the United States which are not subject to subsection (b),
and are not covered by a contract, permit, or lease under
this Act, except that a prospecting permit shall not exceed
a period of 2 years and the area to be included in such a
permit shall not exceed 2,560 acres of land in reasonably com-
pact form.
‘‘(2) The Secretary shall reserve and may exercise the
authority to cancel any prospecting permit upon failure by
the permittee to exercise due diligence in the prosecution of
the prospecting work in accordance with the terms and condi-
tions stated in the permit, and shall insert in every such
permit issued under the provisions of this Act appropriate
provisions for its cancellation by him.
‘‘(3)(A) Upon showing to the satisfaction of the Secretary
that valuable deposits of one of the mineral materials subject
to the Materials Act of 1947 have been discovered by the
permittee within the area covered by his permit, and that
such land is valuable therefor, the permittee shall be entitled
to a lease for any or all of the land embraced in the prospecting
permit, at a royalty of not less than two percent of the quantity
or gross value of the output of the mineral materials at the
point of shipment to market, such lease to be taken in compact
form by legal subdivisions of the public land surveys, or if
the land be not surveyed, by survey executed at the cost of
the permittee in accordance with regulations prescribed by
the Secretary.
‘‘(B) Persons holding valid mining claims for uncommon
varieties of mineral materials shall be entitled to receive a
lease under this subsection.’’.
(d) MINERAL MATERIALS DISPOSAL CLARIFICATION.—Section 4
July 23, 1955 (30 U.S.C. 612), is amended as follows:
(1) In subsection (b) insert ‘‘and mineral material’’ after
‘‘vegetative’’.
(2) In subsection (c) insert ‘‘and mineral material’’ after
‘‘vegetative’’.
(e) AUTHORIZATION FOR DISPOSAL OF MINERAL MATERIALS BY
CONTRACT.—Section 2(a) of the Act entitled ‘‘An Act to provide
for the disposal of materials on the public lands of the United
States’’, approved July 31, 1947 (30 U.S.C. 602(a)), is amended—
(1) by striking the period at the end of paragraph (3)
and inserting ‘‘or, if’’; and
(2) by adding after paragraph (3) the following:
‘‘(4) the material is a mineral material.’’.
CHAPTER 6—DEPARTMENT OF THE INTERIOR
SEC. 5391. AIRCRAFT SERVICES.
(a) USE OF PRIVATE CONTRACTORS.—By not later than October
1, 1996, the Secretary of the Interior shall contract with private
entities for the provision of all aircraft services required by the
Department of the Interior, other than those available from existing
DOI aircraft whose primary purpose is fire suppression.
(b) SALE OF FEDERAL AIRCRAFT.—By September 30, 1998, the
Secretary of the Interior is authorized and directed to sell all
aircraft owned by the Department of the Interior and all associated
H. R. 2491—144
equipment and facilities, other than those whose primary purpose
is fire suppression.
(c) EXEMPTIONS.—The disposition of assets under this section
is not subject to section 202 and 203 of the Federal Property
and Administrative Services Act of 1949 (40 U.S.C. 483 and 484)
or section 13 of the Surplus Property Act of 1944 (50 U.S.C. App.
1622).
(d) DISPOSITION OF PROCEEDS.—The proceeds from dispositions
under this section shall be returned to the Treasury as miscellane-
ous receipts and all savings from reduced overhead and other costs
related to the management of the assets sold shall be returned
to the Treasury.
CHAPTER 7—POWER MARKETING ADMINISTRATIONS
Subchapter A—Bonneville Power Administration
Refinancing
SEC. 5401. DEFINITIONS.
For the purposes of this subchapter—
(1) ‘‘Administrator’’ means the Administrator of the Bonne-
ville Power Administration;
(2) ‘‘capital investment’’ means a capitalized cost funded
by Federal appropriations that—
(A) is for a project, facility, or separable unit or feature
of a project or facility;
(B) is a cost for which the Administrator is required
by law to establish rates to repay to the United States
Treasury through the sale of electric power, transmission,
or other services;
(C) excludes a Federal irrigation investment; and
(D) excludes an investment financed by the current
revenues of the Administrator or by bonds issued and sold,
or authorized to be issued and sold, by the Administrator
under section 13 of the Federal Columbia River Trans-
mission System Act (16 U.S.C. 838k);
(3) ‘‘new capital investment’’ means a capital investment
for a project, facility, or separable unit or feature of a project,
facility, or separable unit or feature of a project or facility,
placed in service after September 30, 1995;
(4) ‘‘old capital investment’’ means a capital investment
the capitalized cost of which—
(A) was incurred, but not repaid, before October 1,
1995, and
(B) was for a project, facility, or separable unit or
feature of a project or facility, placed in service before
October 1, 1995;
(5) ‘‘repayment date’’ means the end of the period within
which the Administrator’s rates are to assure the repayment
of the principal amount of a capital investment; and
(6) ‘‘Treasury rate’’ means—
(A) for an old capital investment, a rate determined
by the Secretary of the Treasury, taking into consideration
prevailing market yields, during the month preceding Octo-
ber 1, 1995, on outstanding interest-bearing obligations
of the United States with periods to maturity comparable
H. R. 2491—145
to the period between October 1, 1995, and the repayment
date for the old capital investment; and
(B) for a new capital investment, a rate determined
by the Secretary of the Treasury, taking into consideration
prevailing market yields, during the month preceding the
beginning of the fiscal year in which the related project,
facility, or separable unit or feature is placed in service,
on outstanding interest-bearing obligations of the United
States with periods to maturity comparable to the period
between the beginning of the fiscal year and the repayment
date for the new capital investment.
SEC. 5402. NEW PRINCIPAL AMOUNTS.
(a) PRINCIPAL AMOUNT.—Effective October 1, 1995, an old cap-
ital investment has a new principal amount that is the sum of—
(1) the present value of the old payment amounts for the
old capital investment, calculated using a discount rate equal
to the Treasury rate for the old capital investment; and
(2) an amount equal to $100,000,000 multiplied by a frac-
tion the numerator of which is the principal amount of the
old payment amounts for the old capital investment and the
denominator of which is the sum of the principal amounts
of the old payment amounts for all old capital investments.
(b) DETERMINATION.—With the approval of the Secretary of
the Treasury, based solely on consistency with this subchapter,
the Administrator shall determine the new principal amounts under
this section and the assignment of interest rates to the new prin-
cipal amounts under section 5403.
(c) OLD PAYMENT AMOUNT.—For the purposes of this section,
‘‘old payment amounts’’ means, for an old capital investment, the
annual interest and principal that the Administrator would have
paid to the United States Treasury from October 1, 1995, if this
subchapter had not been enacted, assuming that—
(1) the principal were repaid—
(A) on the repayment date the Administrator assigned
before October 1, 1993, to the old capital investment, or
(B) with respect to an old capital investment for which
the Administrator has not assigned a repayment date
before October 1, 1993, on a repayment date the Adminis-
trator shall assign to the old capital investment in accord-
ance with paragraph 10(d)(1) of the version of Department
of Energy Order RA 6120.2 in effect on October 1, 1993;
and
(2) interest were paid—
(A) at the interest rate the Administrator assigned
before October 1, 1993, to the old capital investment, or
(B) with respect to an old capital investment for which
the Administrator has not assigned an interest rate before
October 1, 1993, at a rate determined by the Secretary
of the Treasury, taking into consideration prevailing mar-
ket yields, during the month preceding the beginning of
the fiscal year in which the related project, facility, or
separable unit or feature is placed in service, on outstand-
ing interest-bearing obligations of the United States with
periods to maturity comparable to the period between the
beginning of the fiscal year and the repayment date for
the old capital investment.
H. R. 2491—146
SEC. 5403. INTEREST RATE FOR NEW PRINCIPAL AMOUNTS.
As of October 1, 1995, the unpaid balance on the new principal
amount established for an old capital investment under section
5402 bears interest annually at the Treasury rate for the old capital
investment until the earlier of the date that the new principal
amount is repaid or the repayment date for the new principal
amount.
SEC. 5404. REPAYMENT DATES.
As of October 1, 1995, the repayment date for the new principal
amount established for an old capital investment under section
5402 is no earlier than the repayment date for the old capital
investment assumed in section 5402(c)(1).
SEC. 5405. PREPAYMENT LIMITATIONS.
During the period October 1, 1995, through September 30,
2000, the total new principal amounts of old capital investments,
as established under section 5402, that the Administrator may
pay before their respective repayment dates shall not exceed
$100,000,000.
SEC. 5406. INTEREST RATES FOR NEW CAPITAL INVESTMENTS DURING
CONSTRUCTION.
(a) NEW CAPITAL INVESTMENT.—The principal amount of a new
capital investment includes interest in each fiscal year of construc-
tion of the related project, facility, or separable unit or feature
at a rate equal to the one-year rate for the fiscal year on the
sum of—
(1) construction expenditures that were made from the
date construction commenced through the end of the fiscal
year, and
(2) accrued interest during construction.
(b) PAYMENT.—The Administrator is not required to pay, during
construction of the project, facility, or separable unit or feature,
the interest calculated, accrued, and capitalized under subsection
(a).
(c) ONE-YEAR RATE.—For the purposes of this section, ‘‘one-
year rate’’ for a fiscal year means a rate determined by the Secretary
of the Treasury, taking into consideration prevailing market yields,
during the month preceding the beginning of the fiscal year, on
outstanding interest-bearing obligations of the United States with
periods to maturity of approximately one year.
SEC. 5407. INTEREST RATES FOR NEW CAPITAL INVESTMENTS.
The unpaid balance on the principal amount of a new capital
investment bears interest at the Treasury rate for the new capital
investment from the date the related project, facility, or separable
unit or feature is placed in service until the earlier of the date
the new capital investment is repaid or the repayment date for
the new capital investment.
SEC. 5408. CREDITS TO ADMINISTRATOR’S PAYMENTS TO THE UNITED
STATES TREASURY.
The Confederated Tribe of the Colville Reservation Grand Cou-
lee Dam Settlement Act (Public Law 103–436; 108 Stat. 4577)
is amended by striking section 6 and inserting the following:
H. R. 2491—147
‘‘SEC. 6. CREDITS TO ADMINISTRATOR’S PAYMENTS TO THE UNITED
STATES TREASURY.
‘‘So long as the Administrator makes annual payments to the
tribes under the settlement agreement, the Administrator shall
apply against amounts otherwise payable by the Administrator
to the United States Treasury a credit that reduces the Administra-
tor’s payment in the amount and for each fiscal year as follows:
$15,250,000 in fiscal year 1996; $15,860,000 in fiscal year 1997;
$16,490,000 in fiscal year 1998; $17,150,000 in fiscal year 1999;
$17,840,000 in fiscal year 2000; and $4,100,000 in each succeeding
fiscal year.’’.
SEC. 5409. CONTRACT PROVISIONS.
In each contract of the Administrator that provides for the
Administrator to sell electric power, transmission, or related serv-
ices, and that is in effect after September 30, 1995, the Adminis-
trator shall offer to include, or as the case may be, shall offer
to amend to include, provisions specifying that after September
30, 1995—
(1) the Administrator shall establish rates and charges
on the basis that—
(A) the principal amount of an old capital investment
shall be no greater than the new principal amount estab-
lished under section 5402;
(B) the interest rate applicable to the unpaid balance
of the new principal amount of an old capital investment
shall be no greater than the interest rate established under
section 5403;
(C) any payment of principal of an old capital invest-
ment shall reduce the outstanding principal balance of
the old capital investment in the amount of the payment
at the time the payment is tendered; and
(D) any payment of interest on the unpaid balance
of the new principal amount of an old capital investment
shall be a credit against the appropriate interest account
in the amount of the payment at the time the payment
is tendered;
(2) apart from charges necessary to repay the new principal
amount of an old capital investment as established under sec-
tion 5402 and to pay the interest on the principal amount
under section 5403, no amount may be charged for return
to the United States Treasury as repayment for or return
on an old capital investment, whether by way of rate, rent,
lease payment, assessment, user charge, or any other fee;
(3) amounts provided under section 1304 of title 31, United
States Code, shall be available to pay, and shall be the sole
source for payment of, a judgment against or settlement by
the Administrator or the United States on a claim for a breach
of the contract provisions required by this subchapter; and
(4) the contract provisions specified in this subchapter do
not—
(A) preclude the Administrator from recovering,
through rates or other means, any tax that is generally
imposed on electric utilities in the United States, or
(B) 
affect 
the 
Administrator’s 
authority 
under
applicable law, including section 7(g) of the Pacific North-
H. R. 2491—148
west Electric Power Planning and Conservation Act (16
U.S.C. 839e(g)), to—
(i) allocate costs and benefits, including but not
limited to fish and wildlife costs, to rates or resources,
or
(ii) design rates.
SEC. 5410. SAVINGS PROVISIONS.
(a) REPAYMENT.—This subchapter does not affect the obligation
of the Administrator to repay the principal associated with each
capital investment, and to pay interest on the principal, only from
the ‘‘Administrator’s net proceeds,’’ as defined in section 13(b) of
the Federal Columbia River Transmission System Act (16 U.S.C.
838k(b)).
(b) PAYMENT OF CAPITAL INVESTMENT.—Except as provided in
section 5405, this subchapter does not affect the authority of the
Administrator to pay all or a portion of the principal amount
associated with a capital investment before the repayment date
for the principal amount.
Subchapter B—Alaska Power Marketing Administration
Sale
SEC. 5411. SHORT TITLE.
This subchapter may be cited as the ‘‘Alaska Power Administra-
tion Asset Sale and Termination Act’’.
SEC. 5412. DEFINITIONS.
For purposes of this subchapter:
(1) The term ‘‘Eklutna’’ means Eklutna Hydroelectric
Project and related assets as described in section 4 and Exhibit
A of the Eklutna Purchase Agreement.
(2) The term ‘‘Eklutna Purchase Agreement’’ means the
August 2, 1989, Eklutna Purchase Agreement between the
Alaska Power Administration of the Department of Energy
and the Eklutna Purchasers, together with any amendments
thereto adopted before the date of enactment of this Act.
(3) The term ‘‘Eklutna Purchasers’’ means the Municipality
of Anchorage doing business as Municipal Light and Power,
the Chugach Electric Association, Inc. and the Matanuska Elec-
tric Association, Inc.
(4) The term ‘‘Snettisham’’ means the Snettisham Hydro-
electric Project and related assets as described in section 4
and Exhibit A of the Snettisham Purchase Agreement.
(5) The term ‘‘Snettisham Purchase Agreement’’ means the
February 10, 1989, Snettisham Purchase Agreement between
the Alaska Power Administration of the Department of Energy
and the Alaska Power Authority and its successors in interest,
together with any amendments thereto adopted before the date
of enactment of this Act.
(6) The term ‘‘Snettisham Purchaser’’ means the Alaska
Industrial Development and Export Authority or a successor
State agency or authority.
SEC. 5413. SALE OF EKLUTNA AND SNETTISHAM HYDROELECTRIC
PROJECTS.
(a) SALE OF EKLUTNA.—The Secretary of Energy is authorized
and directed to sell Eklutna to the Eklutna Purchasers in accord-
H. R. 2491—149
ance with the terms of this subchapter and the Eklutna Purchase
Agreement.
(b) SALE OF SNETTISHAM.—The Secretary of Energy is author-
ized and directed to sell Snettisham to the Snettisham Purchaser
in accordance with the terms of this subchapter and the Snettisham
Purchase Agreement.
(c) COOPERATION
OF OTHER AGENCIES.—The heads of other
Federal departments, agencies, and instrumentalities of the United
States shall assist the Secretary of Energy in implementing the
sales and conveyances authorized and directed by this subchapter.
(d) PROCEEDS.—Proceeds from the sales required by this sub-
chapter shall be deposited in the Treasury of the United States
to the credit of miscellaneous receipts.
(e) PREPARATION OF EKLUTNA AND SNETTISHAM FOR SALE.—
The Secretary of Energy is authorized and directed to use such
funds from the sale of electric power by the Alaska Power Adminis-
tration as may be necessary to prepare, survey, and acquire Eklutna
and Snettisham assets for sale and conveyance. Such preparations
and acquisitions shall provide sufficient title to ensure the beneficial
use, enjoyment, and occupancy by the purchaser.
(f) CONTRIBUTED FUNDS.—Notwithstanding any other provision
of law, the Alaska Power Administration is authorized to receive,
administer, and expend such contributed funds as may be provided
by the Eklutna Purchasers or customers or the Snettisham Pur-
chaser or customers for the purposes of upgrading, improving,
maintaining, or administering Eklutna or Snettisham. Upon the
termination of the Alaska Power Administration under section
5414(f), the Secretary of Energy shall administer and expend any
remaining balances of such contributed funds for the purposes
intended by the contributors.
SEC. 5414. EXEMPTION AND OTHER PROVISIONS.
(a) FEDERAL POWER ACT.—
(1) After the sales authorized by this subchapter occur,
Eklutna and Snettisham, including future modifications, shall
continue to be exempt from the requirements of part I of
the Federal Power Act (16 U.S.C. 791a et seq.), except as
provided in subsection (b).
(2) The exemption provided by paragraph (1) shall not
affect the Memorandum of Agreement entered into among the
State of Alaska, the Eklutna Purchasers, the Alaska Energy
Authority, and Federal fish and wildlife agencies regarding
the protection, mitigation of, damages to, and enhancement
of fish and wildlife, dated August 7, 1991, which remains in
full force and effect.
(3) Nothing in this subchapter or the Federal Power Act
(16 U.S.C. 791 et seq.) preempts the State of Alaska from
carrying out the responsibilities and authorities of the Memo-
randum of Agreement.
(b) SUBSEQUENT TRANSFERS.—Except for subsequent assign-
ment of interest in Eklutna by the Eklutna Purchasers to the
Alaska Electric Generation and Transmission Cooperative Inc.
pursuant to section 19 of the Eklutna Purchase Agreement, upon
any subsequent sale or transfer of any portion of Eklutna or
Snettisham from the Eklutna Purchasers or the Snettisham Pur-
chaser to any other person, the exemption set forth in paragraph
H. R. 2491—150
(1) of subsection (a) of this section shall cease to apply to such
portion.
(c) REVIEW.—
(1) The United States District Court for the District of
Alaska shall have jurisdiction to review decisions made under
the Memorandum of Agreement and to enforce the provisions
of the Memorandum of Agreement, including the remedy of
specific performance.
(2) An action seeking review of a Fish and Wildlife Program
(‘‘Program’’) of the Governor of Alaska under the Memorandum
of Agreement or challenging actions of any of the parties to
the Memorandum of Agreement prior to the adoption of the
Program shall be brought not later than 90 days after the
date on which the Program is adopted by the Governor of
Alaska, or be barred.
(3) An action seeking review of implementation of the Pro-
gram shall be brought not later than 90 days after the chal-
lenged Act implementing the Program, or be barred.
(d) EKLUTNA LANDS.—With respect to Eklutna lands described
in Exhibit A of the Eklutna Purchase Agreement:
(1) The Secretary of the Interior shall issue rights-of-way
to the Alaska Power Administration for subsequent reassign-
ment to the Eklutna Purchasers—
(A) at no cost to the Eklutna Purchasers;
(B) to remain effective for a period equal to the life
of Eklutna as extended by improvements, repairs, renewals,
or replacements; and
(C) sufficient for the operation of, maintenance of,
repair to, and replacement of, and access to, Eklutna facili-
ties located on military lands and lands managed by the
Bureau of Land Management, including lands selected by
the State of Alaska.
(2) Fee title to lands at Anchorage Substation shall be
transferred to Eklutna Purchasers at no additional cost if the
Secretary of the Interior determines that pending claims to,
and selections of, those lands are invalid or relinquished.
(3) With respect to the Eklutna lands identified in para-
graph 1 of Exhibit A of the Eklutna Purchase Agreement,
the State of Alaska may select, and the Secretary of the Interior
shall convey to the State, improved lands under the selection
entitlements in section 6 of the Act of July 7, 1958 (commonly
known as the Alaska Statehood Act, Public Law 85–508; 72
Stat. 339), and the North Anchorage Land Agreement dated
January 31, 1983. This conveyance shall be subject to the
rights-of-way provided to the Eklutna Purchasers under para-
graph (1).
(e) SNETTISHAM LANDS.—With respect to the Snettisham lands
identified in paragraph 1 of Exhibit A of the Snettisham Purchase
Agreement and Public Land Order No. 5108, the State of Alaska
may select, and the Secretary of the Interior shall convey to the
State of Alaska, improved lands under the selection entitlements
in section 6 of the Act of July 7, 1958 (commonly known as the
Alaska Statehood Act, Public Law 85–508; 72 Stat. 339).
(f) TERMINATION OF ALASKA POWER ADMINISTRATION.—Not later
than one year after both of the sales authorized in section 5413
have occurred, as measured by the Transaction Dates stipulated
in the Purchase Agreements, the Secretary of Energy shall—
H. R. 2491—151
(1) complete the business of, and close out, the Alaska
Power Administration;
(2) submit to Congress a report documenting the sales;
and
(3) return unobligated balances of funds appropriated for
the Alaska Power Administration to the Treasury of the United
States.
(g) REPEALS.—
(1) The Act of July 31, 1950 (64 Stat. 382) is repealed
effective on the date that Eklutna is conveyed to the Eklutna
Purchasers.
(2) Section 204 of the Flood Control Act of 1962 (76 Stat.
1193) is repealed effective on the date that Snettisham is con-
veyed to the Snettisham Purchaser.
(3) The Act of August 9, 1955, concerning water resources
investigation in Alaska (69 Stat. 618), is repealed.
(h) DOE ORGANIZATION ACT.—As of the later of the two dates
determined in paragraphs (1) and (2) of subsection (g), section
302(a) of the Department of Energy Organization Act (42 U.S.C.
7152(a)) is amended—
(1) in paragraph (1)—
(A) by striking subparagraph (C); and
(B) by redesignating subparagraphs (D), (E), and (F)
as subparagraphs (C), (D), and (E) respectively; and
(2) in paragraph (2) by striking out ‘‘and the Alaska Power
Administration’’ and by inserting ‘‘and’’ after ‘‘Southwestern
Power Administration,’’.
(i) DISPOSAL.—The sales of Eklutna and Snettisham under this
subchapter are not considered disposal of Federal surplus property
under the Federal Property and Administrative Services Act of
1949 (40 U.S.C. 484) or the Act of October 3, 1944, popularly
known as the ‘‘Surplus Property Act of 1944’’ (50 U.S.C. App.
1622).
SEC. 5415. OTHER FEDERAL HYDROELECTRIC PROJECTS.
The provisions of this subchapter regarding the sale of the
Alaska Power Administration’s hydroelectric projects under section
5413 and the exemption of these projects from part I of the Federal
Power Act under section 5414 do not apply to other Federal hydro-
electric projects.
CHAPTER 8—OUTER CONTINENTAL SHELF DEEP WATER
ROYALTY RELIEF
SEC. 5421. SHORT TITLE.
This chapter may be referred to as the ‘‘Outer Continental
Shelf Deep Water Royalty Relief Act’’.
SEC. 5422. AMENDMENTS TO THE OUTER CONTINENTAL SHELF LANDS
ACT.
Section 8(a)(3) of the Outer Continental Shelf Lands Act (43
U.S.C. 1337(a)(3)), is amended—
(1) by designating the provisions of paragraph (3) as
subparagraph (A) of such paragraph (3); and
(2) by inserting after subparagraph (A), as so designated,
the following:
‘‘(B) In the Western and Central Planning Areas of
the Gulf of Mexico and the portion of the Eastern Planning
H. R. 2491—152
Area of the Gulf of Mexico encompassing whole lease blocks
lying west of 87 degrees, 30 minutes West longitude, the
Secretary may, in order to—
‘‘(i) promote development or increased production
on producing or non-producing leases; or
‘‘(ii) encourage production of marginal resources
on producing or non-producing leases;
through primary, secondary, or tertiary recovery means,
reduce or eliminate any royalty or net profit share set
forth in the lease(s). With the lessee’s consent, the Sec-
retary may make other modifications to the royalty or
net profit share terms of the lease in order to achieve
these purposes.
‘‘(C)(i) Notwithstanding the provisions of this Act other
than this subparagraph, with respect to any lease or unit
in existence on the date of enactment of the Outer Con-
tinental Shelf Deep Water Royalty Relief Act meeting the
requirements of this subparagraph, no royalty payments
shall be due on new production, as defined in clause (iv)
of this subparagraph, from any lease or unit located in
water depths of 200 meters or greater in the Western
and Central Planning Areas of the Gulf of Mexico, including
that portion of the Eastern Planning Area of the Gulf
of Mexico encompassing whole lease blocks lying west of
87 degrees, 30 minutes West longitude, until such volume
of production as determined pursuant to clause (ii) has
been produced by the lessee.
‘‘(ii) Upon submission of a complete application by the
lessee, the Secretary shall determine within 180 days of
such application whether new production from such lease
or unit would be economic in the absence of the relief
from the requirement to pay royalties provided for by clause
(i) of this subparagraph. In making such determination,
the Secretary shall consider the increased technological
and financial risk of deep water development and all costs
associated with exploring, developing, and producing from
the lease. The lessee shall provide information required
for a complete application to the Secretary prior to such
determination. The Secretary shall clearly define the
information required for a complete application under this
section. Such application may be made on the basis of
an individual lease or unit. If the Secretary determines
that such new production would be economic in the absence
of the relief from the requirement to pay royalties provided
for by clause (i) of this subparagraph, the provisions of
clause (i) shall not apply to such production. If the Sec-
retary determines that such new production would not
be economic in the absence of the relief from the require-
ment to pay royalties provided for by clause (i), the Sec-
retary must determine the volume of production from the
lease or unit on which no royalties would be due in order
to make such new production economically viable; except
that for new production as defined in clause (iv)(I), in
no case will that volume be less than 17.5 million barrels
of oil equivalent in water depths of 200 to 400 meters,
52.5 million barrels of oil equivalent in 400 to 800 meters
of water, and 87.5 million barrels of oil equivalent in water
H. R. 2491—153
depths greater than 800 meters. Redetermination of the
applicability of clause (i) shall be undertaken by the Sec-
retary when requested by the lessee prior to the commence-
ment of the new production and upon significant change
in the factors upon which the original determination was
made. The Secretary shall make such redetermination
within 120 days of submission of a complete application.
The Secretary may extend the time period for making
any determination or redetermination under this clause
for 30 days, or longer if agreed to by the applicant, if
circumstances so warrant. The lessee shall be notified in
writing of any determination or redetermination and the
reasons for and assumptions used for such determination.
Any determination or redetermination under this clause
shall be a final agency action. The Secretary’s determina-
tion or redetermination shall be judicially reviewable under
section 10(a) of the Administrative Procedure Act (5 U.S.C.
702), only for actions filed within 30 days of the Secretary’s
determination or redetermination.
‘‘(iii) In the event that the Secretary fails to make
the determination or redetermination called for in clause
(ii) upon application by the lessee within the time period,
together with any extension thereof, provided for by clause
(ii), no royalty payments shall be due on new production
as follows:
‘‘(I) For new production, as defined in clause (iv)
(I) of this subparagraph, no royalty shall be due on
such production according to the schedule of minimum
volumes specified in clause (ii) of this subparagraph.
‘‘(II) For new production, as defined in clause (iv)
(II) of this subparagraph, no royalty shall be due on
such production for one year following the start of
such production.
‘‘(iv) For purposes of this subparagraph, the term ‘new
production’ is—
‘‘(I) any production from a lease from which no
royalties are due on production, other than test produc-
tion, prior to the date of enactment of the Outer Con-
tinental Shelf Deep Water Royalty Relief Act; or
‘‘(II) any production resulting from lease develop-
ment activities pursuant to a Development Operations
Coordination Document, or supplement thereto that
would expand production significantly beyond the level
anticipated in the Development Operations Coordina-
tion Document, approved by the Secretary after the
date of enactment of the Outer Continental Shelf Deep
Water Royalty Relief Act.
‘‘(v) During the production of volumes determined
pursuant to clauses (ii) or (iii) of this subparagraph, in
any year during which the arithmetic average of the closing
prices on the New York Mercantile Exchange for light
sweet crude oil exceeds $28.00 per barrel, any production
of oil will be subject to royalties at the lease stipulated
royalty rate. Any production subject to this clause shall
be counted toward the production volume determined
pursuant to clause (ii) or (iii). Estimated royalty payments
will be made if such average of the closing prices for
H. R. 2491—154
the previous year exceeds $28.00. After the end of the
calendar year, when the new average price can be cal-
culated, lessees will pay any royalties due, with interest
but without penalty, or can apply for a refund, with
interest, of any overpayment.
‘‘(vi) During the production of volumes determined
pursuant to clause (ii) or (iii) of this subparagraph, in
any year during which the arithmetic average of the closing
prices on the New York Mercantile Exchange for natural
gas exceeds $3.50 per million British thermal units, any
production of natural gas will be subject to royalties at
the lease stipulated royalty rate. Any production subject
to this clause shall be counted toward the production vol-
ume determined pursuant to clauses (ii) or (iii). Estimated
royalty payments will be made if such average of the closing
prices for the previous year exceeds $3.50. After the end
of the calendar year, when the new average price can
be calculated, lessees will pay any royalties due, with
interest but without penalty, or can apply for a refund,
with interest, of any overpayment.
‘‘(vii) The prices referred to in clauses (v) and (vi)
of this subparagraph shall be changed during any calendar
year after 1994 by the percentage, if any, by which the
implicit price deflator for the gross domestic product
changed during the preceding calendar year.’’.
SEC. 5423. NEW LEASES.
Section 8(a)(1) of the Outer Continental Shelf Lands Act, as
amended (43 U.S.C. 1337(a)(1)), is amended—
(1) by redesignating subparagraph (H) as subparagraph
(I);
(2) by striking ‘‘or’’ at the end of subparagraph (G); and
(3) by inserting after subparagraph (G) the following new
subparagraph:
‘‘(H) cash bonus bid with royalty at no less than 12
and 1⁄2 percentum fixed by the Secretary in amount or
value of production saved, removed, or sold, and with
suspension of royalties for a period, volume, or value of
production determined by the Secretary, which suspensions
may vary based on the price of production from the lease;
or’’.
SEC. 5424. LEASE SALES.
For all tracts located in water depths of 200 meters or greater
in the Western and Central Planning Area of the Gulf of Mexico,
including that portion of the Eastern Planning Area of the Gulf
of Mexico encompassing whole lease blocks lying west of 87 degrees,
30 minutes West longitude, any lease sale within seven years of
the date of enactment of this chapter, shall use the bidding system
authorized in section 8(a)(1)(H) of the Outer Continental Shelf
Lands Act, as amended by this chapter, except that the suspension
of royalties shall be set at a volume of not less than the following:
(1) 17.5 million barrels of oil equivalent for leases in water
depths of 200 to 400 meters;
(2) 52.5 million barrels of oil equivalent for leases in 400
to 800 meters of water; and
(3) 87.5 million barrels of oil equivalent for leases in water
depths greater than 800 meters.
H. R. 2491—155
SEC. 5425. REGULATIONS.
The Secretary shall promulgate such rules and regulations
as are necessary to implement the provisions of this chapter within
180 days after the enactment of this Act.
SEC. 5426. SAVINGS CLAUSE.
Nothing in this chapter shall be construed to affect any offshore
pre-leasing, leasing, or development moratorium, including any
moratorium applicable to the Eastern Planning Area of the Gulf
of Mexico located off the Gulf Coast of Florida.
CHAPTER 9—EXPORTS OF ALASKAN NORTH SLOPE OIL
SEC. 5431. EXPORTS OF ALASKAN NORTH SLOPE OIL.
Section 28 of the Mineral Leasing Act (30 U.S.C. 185) is amend-
ed by amending subsection (s) to read as follows:
‘‘EXPORTS OF ALASKAN NORTH SLOPE OIL
‘‘(s)(1) Subject to paragraphs (2) through (6) of this subsection
and notwithstanding any other provision of this Act or any other
provision of law (including any regulation) applicable to the export
of oil transported by pipeline over right-of-way granted pursuant
to section 203 of the Trans-Alaska Pipeline Authorization Act (43
U.S.C. 1652), such oil may be exported unless the President finds
that exportation of this oil is not in the national interest. The
President shall make his national interest determination within
five months of the date of enactment of this subsection. In evaluat-
ing whether exports of this oil are in the national interest, the
President shall at a minimum consider—
‘‘(A) whether exports of this oil would diminish the total
quantity or quality of petroleum available to the United States;
‘‘(B) the results of an appropriate environmental review,
including consideration of appropriate measures to mitigate
any potential adverse effects of exports of this oil on the
environment, which shall be completed within four months
of the date of the enactment of this subsection; and
‘‘(C) whether exports of this oil are likely to cause sustained
material oil supply shortages or sustained oil prices signifi-
cantly above world market levels that would cause sustained
material adverse employment effects in the United States or
that would cause substantial harm to consumers, including
noncontiguous States and Pacific territories. If the President
determines that exports of this oil are in the national interest,
he may impose such terms and conditions (other than a volume
limitation) as are necessary or appropriate to ensure that such
exports are consistent with the national interest.
‘‘(2) Except in the case of oil exported to a country with which
the United States entered into a bilateral international oil supply
agreement before November 26, 1979, or to a country pursuant
to the International Emergency Oil Sharing Plan of the Inter-
national Energy Agency, any oil transported by pipeline over right-
of-way granted pursuant to section 203 of the Trans-Alaska Pipeline
Authorization Act (43 U.S.C. 1652) shall, when exported, be trans-
ported by a vessel documented under the laws of the United States
and owned by a citizen of the United States (as determined in
accordance with section 2 of the Shipping Act, 1916 (46 U.S.C.
App. 802)).
H. R. 2491—156
‘‘(3) Nothing in this subsection shall restrict the authority of
the President under the Constitution, the International Emergency
Economic Powers Act (50 U.S.C. 1701 et seq.), the National Emer-
gencies Act (50 U.S.C. 1601 et seq.), or part B of title II of the
Energy Policy and Conservation Act (42 U.S.C. 6271–76) to prohibit
exports.
‘‘(4) The Secretary of Commerce shall issue any rules necessary
for implementation of the President’s national interest determina-
tion, including any licensing requirements and conditions, within
30 days of the date of such determination by the President. The
Secretary of Commerce shall consult with the Secretary of Energy
in administering the provisions of this subsection.
‘‘(5) If the Secretary of Commerce finds that exporting oil under
authority of this subsection has caused sustained material oil supply
shortages or sustained oil prices significantly above world market
levels and further finds that these supply shortages or price
increases have caused or are likely to cause sustained material
adverse employment effects in the United States, the Secretary
of Commerce, in consultation with the Secretary of Energy, shall
recommend, and the President may take, appropriate action
concerning exports of this oil, which may include modifying or
revoking authority to export such oil.
‘‘(6) Administrative action under this subsection is not subject
to sections 551 and 553 through 559 of title 5, United States
Code.’’.
CHAPTER 10—SKI AREA PERMIT RENTAL CHARGES ON
NATIONAL FOREST SYSTEM LANDS
SEC. 5441. SKI AREA PERMIT RENTAL CHARGE.
(a) The Secretary of Agriculture shall charge a rental charge
for all ski area permits issued pursuant to section 3 of the National
Forest Ski Area Permit Act of 1986 (16 U.S.C. 497b), the Act
of March 4, 1915 (38 Stat. 1101, chapter 144; 16 U.S.C. 497),
or the 9th through 20th paragraphs under the heading ‘‘SURVEYING
THE PUBLIC LANDS’’ under the heading ‘‘UNDER THE DEPARTMENT
OF THE INTERIOR’’ in the Act of June 4, 1897 (30 Stat. 34, chapter
2), on National Forest System lands. Permit rental charges for
permits issued pursuant to the National Forest Ski Area Permit
Act of 1986 shall be calculated as set forth in subsection (b).
Permit rental charges for existing ski area permits issued pursuant
to the Act of March 4, 1915, and the Act of June 4, 1897, shall
be calculated in accordance with those existing permits: Provided,
That a permittee may, at the permittee’s option, use the calculation
method set forth in subsection (b).
(b)(1) The ski area permit rental charge (SAPRC) shall be
calculated by adding the permittee’s gross revenues from lift ticket/
year-round ski area use pass sales plus revenue from ski school
operations (LT+SS) and multiplying such total by the slope trans-
port feet percentage (STFP) on National Forest System land. That
amount shall be increased by the gross year-round revenue from
ancillary facilities (GRAF) physically located on national forest land,
including all permittee or subpermittee lodging, food service, rental
shops, parking and other ancillary operations, to determine the
adjusted gross revenue (AGR) subject to the permit rental charge.
The final rental charge shall be calculated by multiplying the AGR
H. R. 2491—157
by the following percentages for each revenue bracket and adding
the total for each revenue bracket—
(A) 1.5 percent of all adjusted gross revenue below
$3,000,000;
(B) 2.5 percent for adjusted gross revenue between
$3,000,000 and $15,000,000;
(C) 2.75 percent for adjusted gross revenue between
$15,000,000 and $50,000,000; and
(D) 4.0 percent for the amount of adjusted gross revenue
that exceeds $50,000,000.
(2) In cases where ski areas are only partially located on
national forest lands, the slope transport feet percentage on national
forest land referred to in subsection (b) shall be calculated as
generally described in the Forest Service Manual in effect as of
January 1, 1992. Revenues from Nordic ski operations shall be
included or excluded from the rental charge calculation according
to the percentage of trails physically located on national forest
land.
(3) In order to ensure that the rental charge remains fair
and equitable to both the United States and ski area permittees,
the adjusted gross revenue figures for each revenue bracket in
paragraph (1) shall be adjusted annually by the percent increase
or decrease in the national Consumer Price Index for the preceding
calendar year.
(c) The rental charge set forth in subsection (b) shall be due
on June 1 of each year and shall be paid or pre-paid by the
permittee on a monthly, quarterly, annual or other schedule as
determined appropriate by the Secretary in consultation with the
permittee. Unless mutually agreed otherwise by the Secretary of
Agriculture and the permittee, the payment or prepayment schedule
shall conform to the permittee’s schedule in effect prior to the
date of enactment of this Act. To reduce costs to the permittee
and the Forest Service, the Secretary shall each year provide the
permittee with a standardized form and worksheets (including
annual rental charge calculation brackets and rates) to be used
for rental charge calculation and submitted with the rental charge
payment.
(d) The ski area permit rental charge set forth in this section
shall become effective on June 1, 1996 and cover receipts retroactive
to June 1, 1995: Provided, however, That if a permittee has paid
rental charges for the period June 1, 1995, to June 1, 1996, under
the graduated rate rental charge system formula in effect prior
to the date of enactment of this Act, such rental charges shall
be credited toward the new rental charge due on June 1, 1996.
In order to ensure increasing rental charge receipt levels to the
United States during transition from the graduated rate rental
charge system formula to the formula of this Act, the rental charge
paid by any individual permittee shall be—
(1) for the 1995–1996 permit year, shall be either the
rental charge paid for the preceding 1994–1995 base year or
the rental charge calculated pursuant to this Act, whichever
is higher;
(2) for the 1996–1997 permit year, the rental charge paid
shall be either the rental charge paid for the 1994–1995 base
year or the rental charge calculated pursuant to this Act, which-
ever is higher; and
H. R. 2491—158
(3) for the 1997–1998 permit year, the rental charge for
the 1994–1995 base year or the rental charge calculated pursu-
ant to this Act, whichever is higher.
If an individual permittee’s adjusted gross revenue for the 1995–
1996, 1996–1997, or 1997–1998 permit years falls more than 10
percent below the 1994–1995 base year, the rental charge paid
shall be the rental charge calculated pursuant to this Act.
(e) Under no circumstances shall revenue, or subpermittee reve-
nue (other than lift ticket, area use pass, or ski school sales)
obtained from operations physically located on non-national forest
land be included in the ski area permit rental charge calculation.
(f) To reduce administrative costs on ski area permittees and
the Forest Service the terms ‘‘revenue’’ and ‘‘sales’’, as used in
this section, shall mean actual income from sales and shall not
include sales of operating equipment, refunds, rent paid to the
permittee by sublessees, sponsor contributions to special events
or any amounts attributable to employee gratuities or employee
lift tickets, discounts, or other goods or services (except for bartered
goods and complimentary lift tickets) for which the permittee does
not receive money.
(g) In cases where an area of national forest land is under
a ski area permit but the permittee does not have revenue or
sales qualifying for rental charge payment pursuant to subsection
(a), the permittee shall pay an annual minimum rental charge
of $2 for each national forest acre under permit or a percentage
of appraised land value, as determined to be appropriate by the
Secretary.
(h) Where the new rental charge provided for in subsection
(b)(1) results in an increase in permit rental charge greater than
one half of one percent of the permittee’s adjusted gross revenue
(as determined under subsection (b)(1)), the new rental charge
shall be phased in over a 5-year period in a manner providing
for increases of approximately equal increments.
CHAPTER 11—PARK ENTRANCE FEES
SEC. 5451. FEES.
(a) ADMISSION FEES.—Section 4(a) of the Land and Water Con-
servation Fund Act of 1965 (16 U.S.C. 460l–6a(a)) is amended—
(1) in the first sentence of the subsection by striking ‘‘no
more than 21’’;
(2) in the first sentence of paragraph (1)(A)(i) by striking
‘‘$25’’ and inserting ‘‘$50’’;
(3) in the second sentence of paragraph (1)(B) by striking
‘‘$15’’ and inserting ‘‘$25’’;
(4) in paragraph (2) by striking the fourth, fifth, and sixth
sentences and inserting ‘‘The fee for a single-visit permit at
any designated area shall be collected on a per person basis,
not to exceed $6 per person, including for persons entering
by private, noncommercial vehicle.’’;
(5) in paragraph (3)—
(A) in the third sentence by inserting ‘‘Great’’ before
‘‘Smoky’’; and
(B) by striking the last sentence;
(6) in paragraph (4)—
(A) by striking the second sentence and inserting ‘‘Such
permit shall be nontransferable, shall be issued for a one-
H. R. 2491—159
time charge, which shall be set at the same rate as the
fee for a Golden Eagle Passport, and shall entitle the
permittee to free admission into any area designated pursu-
ant to this subsection.’’; and
(B) by striking the third sentence and inserting ‘‘No
fees of any kind shall be collected from any persons who
have a right of access for hunting or fishing privileges
under a specific provision of law or treaty or who are
engaged in the conduct of official Federal, State, or local
government business.’’;
(7) by striking paragraph (5) and inserting the following:
‘‘(5) The Secretary of the Interior and the Secretary of
Agriculture shall establish procedures providing for the issu-
ance of a lifetime admission permit to any citizen of, or person
legally domiciled in, the United States, if such citizen or person
applies for such permit and is permanently disabled. Such
procedures shall ensure that a lifetime admission permit shall
be issued only to persons who have been medically determined
to be permanently disabled. A lifetime admission permit shall
be nontransferable, shall be issued without charge, and shall
entitle the permittee and one accompanying individual to gen-
eral admission into any area designated pursuant to this sub-
section, notwithstanding the method of travel.’’;
(8) by striking paragraph (9) and by redesignating para-
graph (10) as paragraph (9);
(9) by striking all but the last sentence of paragraph (11)
and redesignating paragraph (11) as paragraph (10); and
(10) by redesignating paragraph (12) as paragraph (11).
(b) RECREATION FEES.—Section 4 of the Land and Water Con-
servation Fund Act of 1965 (16 U.S.C. 460l–6a) is amended by
striking subsection (b) and inserting the following:
‘‘(b) RECREATION USE FEES.—Each agency developing, admin-
istering, providing, or furnishing at Federal expense services for
such activities as camping, including, but not limited to, back coun-
try camping under permit, guarded swimming sites, boat launch
facilities, managed parking lots, motorized recreation use and other
recreation uses, is authorized, in accordance with this section to
provide for the collection of recreation use fees at the place of
use or any reasonably convenient location. The administering Sec-
retary may establish both daily and annual recreation use fees.’’.
(c) CRITERIA, POSTING AND UNIFORMITY OF FEES.—Section 4(d)
of the Land and Water Conservation Fund Act of 1965 (16 U.S.C.
460l–6a(d)) is amended in the first sentence by striking ‘‘recreation
fees charged by non-Federal public agencies,’’ and inserting ‘‘fees
charged by other public and private entities,’’.
(d) PENALTY.—Section 4(e) of the Land and Water Conservation
Fund Act of 1965 (16 U.S.C. 460l–6a(e)) is amended by striking
‘‘of not more than $100.’’ and inserting ‘‘as provided by law.’’.
(e) TECHNICAL AMENDMENTS.—Section 4(h) of the Land and
Water Conservation Fund Act of 1965 (16 U.S.C. 460l–6a(h)) is
amended—
(1) by striking ‘‘Bureau of Outdoor Recreation’’ and insert-
ing ‘‘National Park Service’’;
(2) 
by 
striking 
‘‘Natural 
Resources’’ 
and 
inserting
‘‘Resources’’; and
(3) by striking ‘‘Bureau’’ and inserting ‘‘National Park Serv-
ice’’.
H. R. 2491—160
(f) USE OF FEES.—Section 4(i) of the Land and Water Conserva-
tion Fund Act of 1965 (16 U.S.C. 460l–6a(i)) is amended—
(1) in the first sentence of paragraph (1)(B) by striking
‘‘fee collection costs for that fiscal year’’ and inserting ‘‘fee
collection costs for the immediately preceding fiscal year’’ and
by striking ‘‘section in that fiscal year’’ and inserting ‘‘section
in such immediately preceding fiscal year’’;
(2) in the second sentence of subparagraph (B) by striking
‘‘in that fiscal year’’; and
(3) by striking paragraph (4) and inserting the following:
‘‘(4) Amounts covered into the special account for the National
Park Service shall be allocated among park system units in accord-
ance with subsection (j) for obligation or expenditure by the Director
of the National Park Service for park operations.’’.
(g) TIME OF REIMBURSEMENT.—Section 4(k) of the Land and
Water Conservation Fund Act of 1965 (16 U.S.C. 460l–6a(k)) is
amended by striking the last sentence.
(h) COMMERCIAL TOUR USE FEES.—Section 4(n) of the Land
and Water Conservation Fund Act of 1965 (16 U.S.C. 460l–6a(n))
is amended—
(1) by striking the first sentence of paragraph (1) and
inserting ‘‘In the case of each unit of the National Park System
for which an admission fee is charged under this section, the
Secretary of the Interior shall establish, by October 1, 1996,
a commercial tour use fee in lieu of a per person admission
fee to be imposed on each vehicle entering the unit for the
purpose of providing commercial tour services within the unit.’’;
and
(2) by striking the period at the end of paragraph (3)
and inserting ‘‘, with written notification of such adjustments
provided to commercial tour operators 12 months in advance
of implementation.’’.
(i) CONFORMING AMENDMENTS.—
(1) Title I of the Department of the Interior and Related
Agencies Appropriations Act, 1994, is amended by striking the
second proviso under the heading ‘‘ADMINISTRATIVE PROVI-
SIONS’’ under the heading ‘‘NATIONAL PARK SERVICE’’ (related
to recovery of costs associated with special use permits).
(2) Section 3 of the Act entitled ‘‘An Act creating the
Mount Rushmore National Memorial Commission and defining
its purposes and powers’’, approved February 25, 1929 (45
Stat. 1300, chapter 315), is amended by striking the last sen-
tence.
(3) Section 5 of Public Law 87–657 (16 U.S.C. 459c–5),
is amended by striking subsection (e).
(4) Section 3 of Public Law 87–750 (16 U.S.C. 398e) is
amended by striking subsection (b).
(5) Section 4(e) of Public Law 92–589 (16 U.S.C. 460bb–
3) is amended by striking the first sentence.
(6) Section 6 of Public Law 95–348 (16 U.S.C. 410dd) is
amended by striking subsection (j).
(7) Section 207 of Public Law 96–199 (16 U.S.C. 410ff–
6) is repealed.
(8) Section 106 of Public Law 96–287 (16 U.S.C. 410gg–
5) is amended by striking the last sentence.
(9) Section 204 of Public Law 96–287 (94 Stat. 601) is
amended by striking the last sentence.
H. R. 2491—161
(10) Section 5 of Public Law 96–428 (94 Stat. 1842; 16
U.S.C. 461 note) is repealed.
(11) Public Law 100–55 (101 Stat. 371; U.S.C. 460l–6a
note) is repealed.
SEC. 5452. COVERING OF INCREASED FEE REVENUES INTO SPECIAL
ACCOUNTS.
Of the funds deposited in special accounts in the Treasury
for the National Park Service, Bureau of Land Management, and
Forest Service as set forth in section 4(i) of the Land and Water
Conservation Fund Act of 1965 (16 U.S.C. 460l–6a(i)), beginning
in fiscal year 1997, 80 percent of all receipts earned in the previous
year in excess of the following amounts for each covered agency
shall be made available to that agency without further appropria-
tion:
(1) National Park System:
(A) $82,000,000 for fiscal year 1997.
(B) $85,000,000 for fiscal year 1998.
(C) $88,000,000 for fiscal year 1999.
(D) $91,000,000 for fiscal year 2000.
(E) $94,000,000 for fiscal year 2001.
(F) $97,000,000 for fiscal year 2002.
(G) $100,000,000 for fiscal year 2003.
(H) $112,000,000 for fiscal year 2004.
(I) $106,000,000 for fiscal year 2005.
(2) Bureau of Land Management:
(A) $4,500,000 for fiscal year 1997.
(B) $5,000,000 for fiscal year 1998.
(C) $5,000,000 for fiscal year 1999.
(D) $5,000,000 for fiscal year 2000.
(E) $5,000,000 for fiscal year 2001.
(F) $5,000,000 for fiscal year 2002.
(G) $5,000,000 for fiscal year 2003.
(H) $5,000,000 for fiscal year 2004.
(I) $5,000,000 for fiscal year 2005.
(3) Forest Service:
(A) $20,000,000 for fiscal year 1997.
(B) $20,600,000 for fiscal year 1998.
(C) $21,200,000 for fiscal year 1999.
(D) $21,900,000 for fiscal year 2000.
(E) $22,500,000 for fiscal year 2001.
(F) $23,600,000 for fiscal year 2002.
(G) $24,300,000 for fiscal year 2003.
(H) $25,000,000 for fiscal year 2004.
(I) $25,800,000 for fiscal year 2005.
Beginning in fiscal year 2006, and in each fiscal year thereafter,
the amounts set forth in this section for each covered agency in
fiscal year 2005 shall be increased by 4 percent per year, and
80 percent of all receipts earned in excess of such amounts for
each covered agency shall be made available to that agency without
further appropriation.
SEC. 5453. ALLOCATION AND USE OF FEES.
(a) ALLOCATION.—Beginning in fiscal year 1997, receipts above
the amounts stated in section 5452 in each covered agency’s special
account from the previous fiscal year shall be allocated as follows:
(1) Seventy-five percent shall be allocated among the units
or areas of each affected agency in the same proportion as
H. R. 2491—162
fees collected pursuant to section 4 of the Land and Water
Conservation Fund Act of 1965 (16 U.S.C. 460l–6a) from a
specific unit or area bear to the total amount of such fees
collected from all units or areas of the same covered agency
for each fiscal year.
(2) Twenty-five percent shall be allocated among each cov-
ered agency’s units or areas on the basis of need, as determined
by the Secretary.
(b) USE.—Expenditures from the special accounts shall be used
solely for infrastructure related to visitor use and annual operating
expenses related to visitor services at units or areas of the covered
agencies.
CHAPTER 12—CONCESSION REFORM
SEC. 5461. SHORT TITLE.
This chapter may be cited as the ‘‘Visitor Facilities and Services
Enhancement Act of 1995’’.
SEC. 5462. DEFINITIONS.
In this chapter:
(1) ‘‘adjusted gross receipts’’ means gross receipts less reve-
nue derived from goods and services provided on other than
Federal lands or conveyed to units of Government for hunting
or fishing licenses or for entrance or recreation fees, or from
such other exclusions as the Secretary concerned might apply.
(2) ‘‘agency head’’ means the head of an agency or his
or her designated representative.
(3) ‘‘bidder’’ means a person who has submitted, or may
submit, a proposal respecting the facilities or services, whether
or not such bidder is the current concessioner.
(4) ‘‘concessioner’’ means a person or other entity acting
under a concession authorization which provides public services,
facilities, or activities on Federal lands pursuant to a concession
service agreement or concession license.
(5) ‘‘concession authorization’’ means a concession service
agreement or concession license as applicable.
(6) ‘‘concession license’’ means a written contract between
the agency head and the concessioner which sets forth the
terms and conditions under which the concessioner is author-
ized to provide recreation services or activities on a limited
basis as well as the rights and obligations of the Federal
Government.
(7) ‘‘concession service agreement’’ means a written contract
between the agency head and the concessioner which sets forth
the terms and conditions under which the concessioner is
authorized to provide visitor services, facilities, or activities
as well as the rights and obligations of the Federal Government.
(8) ‘‘Consumer Price Index’’ means the Consumer Price
Index-All Urban Consumers published by the Bureau of Labor
Statistics of the Department of Labor, and from and after
such time as such index is no longer published, the Consumer
Price Index or other regularly-published cost-of-living index
chosen by the Secretary concerned which reasonably approxi-
mates the Consumer Price Index specified above.
H. R. 2491—163
(9) ‘‘gross receipts’’ means revenue from goods or services
provided by concession services, facilities, or activities on Fed-
eral lands and waters.
(10) ‘‘performance incentive’’ means a credit based on past
performance toward the score awarded by the Secretary con-
cerned to an incumbent concessioner’s proposal submitted in
response to a solicitation for the reissuance of such incumbent
concessioner’s contract.
(11) ‘‘proposal’’ means the complete submission for a conces-
sion service agreement offered in response to the solicitation
for such concession service agreement.
(12) ‘‘prospectus’’ means a document or documents issued
by the Secretary concerned and included with a solicitation
which sets forth the minimum requirements for the award
of a concession service agreement.
(13) ‘‘Secretary concerned’’ means —
(A) the Secretary of the Interior with respect to all
concession authorizations issued by the National Park Serv-
ice, and all concession authorizations for river runner, out-
fitter, or guide concessions issued by the United States
Fish and Wildlife Service and the Bureau of Land Manage-
ment; and
(B) the Secretary of Agriculture with respect to all
river runner, outfitter, or guide concessions issued by the
Forest Service.
(14) ‘‘selected bidder’’ means the bidder selected by the
Secretary concerned for the award of a concession service agree-
ment until such bidder becomes the concessioner.
(15) ‘‘solicitation’’ means a request by the Secretary con-
cerned for proposals in response to a prospectus.
SEC. 5463. NATURE AND TYPES OF CONCESSION AUTHORIZATIONS.
(a) IN GENERAL.—The Secretary concerned may enter into
concession authorizations as follows:
(1) CONCESSION SERVICE AGREEMENT.—A concession service
agreement shall be entered into for all concessions where the
Secretary concerned determines that the provision of concession
services is in the interest of the Federal Government and
issues either a competitive offering for concession services,
facilities or activities or a noncompetitive offering for such
services, facilities, or activities based on a finding that due
to special circumstances it is not in the public interest of
the United States to award a concession service agreement
on a competitive basis.
(2) CONCESSION
LICENSE.—Whenever the Secretary con-
cerned makes a determination that public enjoyment of Federal
lands would be enhanced through the provision of concession
services for one-time, intermittent, or infrequently scheduled
activities and that there exists no need to limit the number
of concessionaires providing such services, the Secretary shall
enter into a concession license with a qualified concessioner.
The Secretary concerned may not limit the number of conces-
sion licenses issued for the same types of activities in a particu-
lar geographic area.
(3) LANDS UNDER MULTIPLE JURISDICTIONS.—In order to
reduce administrative costs the Secretaries of the Departments
concerned shall designate an agency to be the lead agency
H. R. 2491—164
concerning concessions which conduct a single operation on
lands or waters under the jurisdiction of more than one agency.
Unless otherwise agreed to by each such Secretary concerned,
the lead agency shall be that agency under whose jurisdiction
the concessioner generates the greatest amount of gross
receipts. The agency so designated shall issue a single conces-
sion authorization and collect a single fee under paragraphs
(1) and (2) for such operation.
SEC. 5464. COMPETITIVE SELECTION PROCESS FOR CONCESSION
SERVICE AGREEMENTS.
(a) AWARD TO BEST PROPOSAL.—The Secretary concerned shall
enter into, and reissue, a concession service agreement with the
person whom the Secretary determines in accordance with this
section submits the best proposal through a competitive process
as defined in this section.
(b) SOLICITATION AND PROSPECTUS.—Prior to making a solicita-
tion for a concession service agreement, the Secretary concerned
shall prepare a prospectus for such solicitation, shall publish notice
of its availability at least once in such local or national newspapers
or trade publications as the Secretary determines appropriate, and
shall make such prospectus available upon request to all interested
parties. The prospectus shall specify the minimum requirements
for such concession service agreement, including but not limited
to:
(1) a description of the services and facilities to be provided
by the concessioner.
(2) the level of capital investment required by the conces-
sioner (if any).
(3) terms and conditions of the concession service agree-
ment.
(4) minimum facilities and services to be provided by the
Secretary concerned to the concessioner, if any, including but
not limited to public access, utilities, buildings, and minimum
public services.
(5) such other information related to the concession oper-
ation available to the Secretary concerned as is not privileged
or otherwise exempt from disclosure under Federal law, as
the Secretary determines is necessary to allow for the submis-
sion of competitive proposals;
(6) local hiring preferences provisions, if applicable, and
notwithstanding any other provision of law, to increase revenue
to the United States by avoiding additional transportation and
related costs associated with nonresident labor, each contract
awarded by the Department of the Interior for concessioner
or commercial use contractor-provided visitor services per-
formed in whole or in part of a State which is not contiguous
with another State and has an unemployment rate in excess
of the national average rate of unemployment, as determined
by the Secretary of Labor shall include a provision requiring
the concessioner or commercial use contractor to employ individ-
uals who are residents of such State, and who, in the case
of any craft or trade, possess or would be able to acquire
promptly the necessary skills for the purpose of performing
that portion of the contract in such State; and
(7) minimum fees to the United States.
H. R. 2491—165
(c) FACTORS AND MINIMUM STANDARDS IN DETERMINING BEST
PROPOSAL.—The prospectus shall assign a weight to each factor
identified therein related to the importance of such factor in the
selection process. Points shall be awarded for each such factor,
based on the relative strength of the proposal concerning that
factor. In selecting the best proposal, the Secretary concerned shall
take into consideration (but shall not be limited to) the following,
including whether the proposal meets the minimum requirements
(if any) of the Secretary for each of the following:
(1) Responsiveness to the prospectus.
(2) Quality of visitor services to be provided taking into
account the nature of equipment and facilities to be provided.
(3) Experience and performance in providing the same or
similar accommodations, facilities, or services. This factor shall
account for not less than 20 percent of the maximum points
available under any prospectus. Where the Secretary concerned
determines it to be warranted to provide for a high quality
visitor experience, the prospectus for a concession service agree-
ment shall provide greater weight to this factor based on such
aspects of the concession service agreement as scope or size,
complexity, nature of technical skills required, and site-specific
knowledge of the area. The similarity of the qualifying experi-
ence outlined in the proposal to the nature of the services
required under the concession service agreement and the length
of such qualifying experience shall be the basis for awarding
points for this factor.
(4) Record of resource protection (as appropriate for services
and activities with potential to impact natural or cultural
resources).
(5) Financial capability.
(6) Fees to the United States.
(d) SELECTION PROCESS.—The process for selecting the best
proposal shall consist of the following:
(1) First, the Secretary concerned shall identify those
proposals which meet the minimum standards (if any) for the
factors identified under subsection (c).
(2) Second, the Secretary concerned shall evaluate all
proposals identified under paragraph (1), considering all factors
identified under subsection (c), as well as performance incen-
tives earned under subsection (e) and renewal penalties
incurred under subsection (f).
(3) Third, the Secretary concerned shall offer the concession
service agreement to the best qualified applicant as determined
by the evaluation under paragraph (2). Prior to any such offer,
the Secretary shall certify that such applicant has adequate
funds to purchase any investment interest.
(e) PERFORMANCE INCENTIVES.—
(1) In evaluating the proposal of an incumbent concessioner
when the Secretary concerned issues a prospectus for the
renewal of the concession service agreement, such concessioner
is entitled to a performance incentive of—
(A) one percent of the maximum points available under
such prospectus for each year in which the concessioner’s
annual performance is rated as exceeding the requirements
outlined in the prospectus or ‘‘good’’, and
(B) a one-time 3-year merit term extension upon a
finding that a concessioner has been rated as ‘‘good’’ in
H. R. 2491—166
each annual performance evaluation through the term of
the concession service agreement.
(2) A performance incentive awarded under paragraph
(1)(A) may not exceed 10 percent of the maximum points avail-
able under such prospectus.
(3) The performance incentive specified under paragraph
(1)(A) may only be awarded to a concessioner which meets
the monetary definition of a small business under section 3
of the Small Business Act (15 U.S.C. 632). The Board of Con-
tract Appeals within each Department shall adjudicate disputes
between the Federal Government and concessionaires regarding
performance evaluations.
(f) RENEWAL PENALTY.—In evaluating the proposal of an incum-
bent concessioner when the Secretary concerned issues a prospectus
for the renewal of the concession service agreement, the incumbent
concessioner shall be penalized 1 percent of the maximum points
available under such prospectus for each year in which the conces-
sioner’s annual performance is found to be unsatisfactory.
(g) INAPPLICABILITY OF NEPA TO TEMPORARY EXTENSIONS AND
SIMILAR REISSUANCE
OF CONCESSIONS AGREEMENTS.—The tem-
porary extension of a concession authorization, or reissuance of
a concession authorization to provide concession services similar
in nature and amount to concession services provided under the
previous authorization, is hereby determined not to be a major
Federal action for the purposes of the National Environmental
Policy Act of 1969 (42 U.S.C. 4331 et. seq.).
(h) PROVISION FOR ADDITIONAL RELATED SERVICES.—The Sec-
retary concerned may modify the concession service agreement to
allow concessionaires to provide services closely related to such
agreement only if the Secretary concerned determines that such
changes would enhance the safety or enjoyment of visitors and
would not unduly restrict the award of future concession service
agreements.
SEC. 5465. CAPITAL IMPROVEMENTS.
(a) IN GENERAL.—Concessionaires may construct or finance
construction under terms of section 5470 only such public facilities
on Federal lands as are to be used by the concessioner under
the terms of its concession service agreement or facilities which
are necessary for the concessioner to administer such public facili-
ties on Federal lands.
(b) INVESTMENT INTEREST.—
(1) IN GENERAL.—A concessioner that is required or author-
ized under a concession service agreement pursuant to this
subchapter to acquire or construct any structure, improvement,
or fixture pursuant to such agreement on Federal lands shall
have an investment interest therein, as defined in this sub-
chapter. Any such investment interest shall consist of all
incidents of ownership, except legal title which shall be vested
in the Federal Government. Such investment interest shall
not be extinguished by the expiration of such agreement. Such
investment interest may be assigned, transferred, encumbered
or relinquished.
(2) LIMITATION.—Such investment interest shall not be con-
strued to include or imply any authority, privilege, or right
to operate or engage in any business or other activity, and
the use of any improvement in which the concessioner has
H. R. 2491—167
an investment interest shall be wholly subject to the applicable
provisions of the concession service agreement and of laws
and regulations relating to the area.
(3) FEDERAL PROPERTY.—Notwithstanding paragraph (1),
a concession service agreement may specify that certain new
structures, improvements, or fixtures required to be constructed
under terms of the concession service agreement shall be prop-
erty of the Federal Government subject only to the right of
the concessioner to use such improvements during the term
of such agreement and that the concessioner shall not be
accorded an investment interest therein. Concession service
agreements shall not, to the extent practicable, provide for
a concessioner to obtain an investment interest in any building
or facilities wholly owned by the Federal Government.
(c) SALE OF ASSETS.—If the existing concessioner is not the
selected bidder at the time of reissuance of a concession service
agreement, the Secretary concerned shall require the new conces-
sioner to buy the investment interest of the existing concession.
In the event that the successor concessioner is unable to fully
pay such investment interest, any deficiency shall be paid by the
Federal Government.
(d) CLOSURE OF CONCESSIONER FACILITIES.—If the Secretary
concerned determines that the public interest, by reason of public
and safety considerations or for other reasons beyond the control
of the concessioner, requires the discontinuation or closure of facili-
ties in which the concessioner has an investment interest, the
Federal Government shall compensate the concessioner in the
amount equal to the value of the investment interest.
(e) DETERMINATION OF VALUE OF INVESTMENT INTEREST.—For
purposes of this subchapter, the investment interest of any capital
improvement at the end of the concession service agreement period
shall be an amount equal to the actual cost of construction or
purchase of such investment interest or such capital improvement
adjusted from the time of completion of such construction by
changes in the Consumer Price Index less depreciation evidenced
by the condition and prospective serviceability in comparison with
a new unit of like kind. The Secretary concerned shall include
the value to be paid by the selected bidder for any existing invest-
ment interest in the prospectus for the related concession service
agreement.
SEC. 5466. DURATION OF CONCESSION AUTHORIZATION.
(a) CONCESSION SERVICE AGREEMENT.—The standard term of
a concession service agreement shall be 10 years. The Secretary
concerned may issue a concession service agreement for less than
10 years if the Secretary determines that the average annual gross
receipts over the life of the concession service agreement would
be less than $100,000. The Secretary concerned may not issue
a concession service agreement for less than 5 years. The Secretary
concerned shall issue a concession service agreement for longer
than 10 years if the Secretary determines that such longer term
is in the public interest or necessary due to the extent of investment
and associated financing requirements and to meet the obligations
assumed. The term for a concession service agreement may not
exceed 30 years.
(b) CONCESSION LICENSE.—The term for a concession license
may not exceed 2 years.
H. R. 2491—168
(c) TEMPORARY EXTENSION.—The Secretary concerned may
agree to temporary extensions of concession service agreements
for up to 2 years on a noncompetitive basis to avoid interruption
of services to the public.
SEC. 5467. RATES AND CHARGES TO THE PUBLIC.
In general, rates and charges to the public shall be set by
the concessioner. For concession service agreements only, a conces-
sioner’s rates and charges to the public shall be subject to the
approval of the Secretary concerned in those instances where the
Secretary determines that sufficient competition for such facilities
and services does not exist within or in close proximity to the
area in which the concessioner operates. In those instances, the
concession service agreement shall state that the reasonableness
of the concessioner’s rates and charges to the public shall be
reviewed and approved by the Secretary concerned primarily by
comparison with those rates and charges for facilities and services
of comparable character under similar conditions, with due consider-
ation for length of season, seasonal variations, average percentage
of occupancy, accessibility, availability and costs of labor and mate-
rials, type of patronage, and other factors deemed significant by
the Secretary concerned. Such review shall be completed within
90 days of receipt of all necessary information, or the requirement
for the Secretary’s approval shall be waived and such rates and
charges as proposed by the concessioner considered to be approved
for immediate use.
SEC. 5468. TRANSFERABILITY OF CONCESSION AUTHORIZATIONS.
(a) CONCESSION SERVICE AGREEMENTS.—
(1) APPROVAL REQUIRED.—A concession service agreement
is transferable or assignable only with the approval of the
Secretary concerned, which approval may not be unreasonably
withheld or delayed. The Secretary may not approve any such
transfer or assignment if the Secretary determines that the
prospective concessioner is or is likely to be unable to completely
satisfy all of the material requirements, term, and conditions
of the agreement or that the terms of the transfer or assignment
would preclude providing appropriate facilities or services to
the public at reasonable rates.
(2) CONSIDERATION
PERIOD.—If the Secretary concerned
fails to approve or disapprove a transfer or assignment under
paragraph (1) within 90 days after the date on which the
Secretary receives all necessary information requested by the
Secretary with respect to such transfer, the transfer or assign-
ment shall be deemed to have been approved.
(3) NO
MODIFICATION
OF
TERMS
AND
CONDITIONS.—The
terms and conditions of the concessions service agreement shall
not be subject to modification by reason of any transfer or
assignment under this section.
(b) CONCESSION LICENSE.—A concession license may not be
transferred.
SEC. 5469. FEES CHARGED BY THE UNITED STATES FOR CONCESSION
AUTHORIZATIONS.
(a) IN GENERAL.—The Secretary concerned shall charge a fee
for the privilege of providing concession services pursuant to this
subchapter. The fee for any concession service agreement may
include any of the following:
H. R. 2491—169
(1) An annual cash payment for the privilege of providing
concession services.
(2) The amount required for capital improvements required
pursuant to section 5465(a).
(3) Fees for rental or lease of Government-owned facilities
or lands occupied by the concessioner.
(4) Expenditures for maintenance of or improvements to
Government-owned facilities occupied by the concessioner.
(b) ESTABLISHMENT OF AMOUNT.—
(1) MINIMUM ACCEPTABLE FEE.—The Secretary concerned
shall establish a minimum fee for each applicable category
specified in paragraphs (1) through (4) of subsection (a) which
is acceptable to the Secretary under this section and shall
include the minimum fee in the prospectus under section 5464.
This fee shall be based on historical data, where available,
as well as industry-specific and other market data available
to the Secretary concerned.
(2) FINAL FEE.—Except as provided in paragraph (3), the
final fee shall be the amount bid by the selected applicant
under section 5464.
(3) SUBSTANTIALLY
SIMILAR
SERVICES
IN
A
SPECIFIC
GEOGRAPHIC
AREA.—When the Secretary concerned simulta-
neously offers authorizations for more than one river runner,
outfitter, or guide concession operation to provide substantially
similar services in a defined geographic area, the concession
fee for all such concessionaires shall be specified by the Sec-
retary concerned in the prospectus. The Secretary concerned
shall base the fee on historical data, where available, as well
as on industry-specific and other market data available to the
Secretary concerned or may establish a charge per user day.
(c) ADJUSTMENT OF FEES.—The amount of any fee for the term
of the concession service agreement shall be set at the beginning
of the concession authorization and may only be modified if stated
in the contract on the basis of inflation, when the annual payment
is not determined by a percentage of adjusted gross receipts (as
measured by changes in the Consumer Price Index), to reflect
substantial changes from the conditions specified in the prospectus,
or in the event of an unforseen disaster.
(d) CONCESSION LICENSE FEE.—The fee for a concession license
shall at least cover the program administrative costs and may
not be changed over the term of the license.
SEC. 5470. DISPOSITION OF FEES.
(a) CONCESSION IMPROVEMENT ACCOUNT.—
(1) IN GENERAL.—The Secretary concerned shall, whenever
the concession service agreement requires or authorizes the
concessioner to perform maintenance or make improvements
to Government-owned facilities occupied by the concessioner,
require the concessioner to establish a concession improvement
account. The concessioner shall deposit into this account all
funds for maintenance of or improvements to Government-
owned facilities occupied by the concessioner;
(2) TERMS AND CONDITIONS.—The account shall be main-
tained by the concessioner in an interest bearing account in
a federally insured financial institution. The concessioner shall
maintain the account separately from any other funds or
H. R. 2491—170
accounts and shall not commingle the money in the account
with any other money.
(3) 
DISBURSEMENTS.—The 
concessioner 
shall 
make
disbursements from the account for improvements and other
activities, only for capital improvements or maintenance of
improvements to Government-owned facilities occupied by the
concessioner as specified in the concession service agreement.
(4) TRANSFER OF REMAINING BALANCE.—On the termination
of a concession authorization, or on the transfer of a concession
service agreement, any remaining balance in the account shall
be transferred by the concessioner to the successor concessioner,
to be used solely as set forth in this subsection. In the event
there is no successor concessioner, the account balance shall
be deposited in the Treasury as miscellaneous receipts.
(b) When the concessioner is required to make capital improve-
ments to other than Government-owned facilities occupied by the
concessioner in accordance with a concession service agreement,
the concessioner shall have the option to control and expend such
funds directly.
(c) AMOUNTS RECEIVED RELATING TO PRIVILEGE OF PROVIDING
CONCESSION SERVICES AND RENTAL OF GOVERNMENT-OWNED FACILI-
TIES.—
(1) DEPOSIT
INTO
TREASURY.—The Secretary concerned
shall deposit in the Treasury of the United States as miscellane-
ous receipts all funds not deposited in concession improvement
accounts or funds for capital improvements specified in (b)
above, including specifically amounts received for a fiscal year
for the privilege of providing concession services and the rental
of Government-owned facilities, except that of the amount of
fees paid by vessel operators for the privilege of entering into
Glacier Bay, Alaska, 50 percent of such fees for the 5-year
period beginning on the first full fiscal year following the date
of enactment of this subchapter shall be deposited into a special
account and that such funds shall be available without further
appropriation and may only be used to conduct research to
quantify any effect of such vessel activity on wildlife and other
natural resource values of Glacier Bay National Park. For
the National Park Service such deposits into the Treasury
shall total not less than the amounts specified in the table
in paragraph (2). For the other agencies covered under this
subchapter, the Secretary concerned shall develop a schedule
of anticipated receipts to be deposited to the Treasury and
submit such schedule to the appropriate Congressional commit-
tees not later than 18 months after the date of enactment
of this Act. Nothing in this chapter shall be construed to modify
any provision of law relating to sharing of Federal receipts
with any other level of Government.
(2) DEPOSIT INTO CONCESSION IMPROVEMENT ACCOUNTS.—
The table referred to in paragraph (1), expressed by fiscal
year, is as follows:
National Park Service
Fiscal year:
Amount:
1997 ...................................................................................................
$15,800,000
1998 ...................................................................................................
$21,100,000
1999 ...................................................................................................
$26,700,000
2000 ...................................................................................................
$32,300,000
H. R. 2491—171
Fiscal year:
Amount:
2001 ...................................................................................................
$38,200,000
2002 ...................................................................................................
$44,400,000.
(d) Beginning in fiscal year 1998, the Inspector General of
the Department concerned shall conduct a biennial audit of conces-
sion fees generated pursuant to this chapter. The Inspector General
shall make a determination as to whether concession fees are being
collected and expended in accordance with this chapter and shall
submit copies of each audit to the Committee on Resources of
the House of Representatives and the Committee on Energy and
Natural Resources of the Senate.
SEC. 5471. REGULATIONS.
The Secretary concerned shall promulgate regulations to imple-
ment this chapter no later than 2 years after the date of enactment
of this Act. Subsequent to the date of enactment of this chapter,
no new concession authorization may be issued, nor may any exist-
ing concession authorization be amended or extended, unless such
authorization, amendment, or extension is fully consistent with
sections 5465, 5469(c), and 5470.
SEC. 5472. RELATIONSHIP TO OTHER LAWS.
(a) REPEALS.—
(1) The Act entitled ‘‘An Act relating to the establishment
of concession policies in the areas administered by the National
Park Service and for other purposes’’ (16 U.S.C. 20–20g)
approved October 9, 1965, is repealed.
(b) SAVINGS.—
(1) IN GENERAL.—The repeal of any provision, the supersed-
ing of any provision, and the amendment of any provision,
of an Act referred to in subsection (a) shall not affect the
validity of any authorizations entered into under any such
Act. The provisions of this chapter shall apply to any such
authorizations, except to the extent such provisions are
inconsistent with the express terms and conditions of such
authorizations.
(2) RIGHT OF RENEWAL.—The right of renewal explicitly
provided for by any concession contract under any such provi-
sion shall be preserved for a single renewal of a contract follow-
ing the enactment of, or concession authorization under, this
chapter.
(3) VALUE
OF
CAPITAL
IMPROVEMENTS
OR
POSSESSORY
INTEREST.—Nothing in this chapter shall be construed to change
the value as of the date of enactment of this chapter for existing
capital improvements or possessory interest as identified in
concession contracts entered into before the date of enactment
of this Act. Subsequent to enactment of this chapter, the
increase in value for any possessory interest established under
any concession contract in effect on the date of enactment
of this chapter shall be as provided for in this chapter unless
otherwise specifically provided in the contract.
(4) ANILCA.—Nothing in this chapter shall be construed
to amend, supersede or otherwise affect any provision of the
Alaska National Interest Lands Conservation Act (16 U.S.C.
3101 et seq.) relating to revenue-producing visitor services.
(5) PROCEDURES
FOR
CONSIDERING
EXISTING
CONCES-
SIONAIRES
IN
REISSUANCE
OF
CONTRACTS.—In the case of a
H. R. 2491—172
concession contract which has expired prior to the date of
the enactment of this Act, or within 5 years after the date
of the enactment of this Act, an incumbent concessioner shall
be entitled to a one-time bonus of 5 percent of the maximum
points available in the reissuance of a previous concession
authorization. For any concession contract entered into prior
to the date of enactment of this Act, which is projected to
terminate 5 years or later after the date of enactment of this
Act, any concessioner shall be entitled to a performance incen-
tive in accordance with this chapter. The concessioner shall
be entitled to an evaluation of ‘‘good’’ for each year in which
the Secretary concerned does not complete an evaluation as
provided for in this chapter.
TITLE VI—FEDERAL RETIREMENT AND
RELATED PROVISIONS
Subtitle A—Civil Service and Postal
Service Provisions
SEC. 6001. EXTENSION OF DELAY IN COST-OF-LIVING ADJUSTMENTS
IN 
FEDERAL 
EMPLOYEE 
RETIREMENT 
BENEFITS
THROUGH FISCAL YEAR 2002.
Section 11001(a) of the Omnibus Budget Reconciliation Act
of 1993 (Public Law 103–66; 107 Stat. 408) is amended in the
matter preceding paragraph (1) by striking out ‘‘or 1996,’’ and
inserting in lieu thereof ‘‘1996, 1997, 1998, 1999, 2000, 2001, or
2002,’’.
SEC. 6002. INCREASED CONTRIBUTIONS TO FEDERAL CIVILIAN
RETIREMENT SYSTEMS.
(a) CIVIL SERVICE RETIREMENT SYSTEM.—
(1) DEDUCTIONS.—The first sentence of section 8334(a)(1)
of title 5, United States Code, is amended to read as follows:
‘‘The employing agency shall deduct and withhold from the
basic pay of an employee, Member, Congressional employee,
law enforcement officer, firefighter, bankruptcy judge, judge
of the United States Court of Appeals for the Armed Forces,
United States magistrate, or Claims Court judge, as the case
may be, the percentage of basic pay applicable under subsection
(c).’’.
(2) AGENCY CONTRIBUTIONS.—
(A) INCREASE IN AGENCY CONTRIBUTIONS DURING CAL-
ENDAR
YEARS
1996
THROUGH
2002.—Section 8334(a)(1) of
title 5, United States Code (as amended by this section)
is further amended—
(i) by inserting ‘‘(A)’’ after ‘‘(1)’’; and
(ii) by adding at the end thereof the following
new subparagraph:
‘‘(B)(i) Notwithstanding subparagraph (A), the agency
contribution under the second sentence of such subpara-
graph, during the period beginning on January 1, 1996,
through December 31, 2002—
‘‘(I) for each employing agency (other than the
United States Postal Service or the Washington Metro-
H. R. 2491—173
politan Airport Authority) shall be 8.51 percent of the
basic pay of an employee, Congressional employee, and
a Member of Congress, 9.01 percent of the basic pay
of a law enforcement officer, a member of the Capitol
Police, and a firefighter, and 8.51 percent of the basic
pay of a Claims Court judge, a United States mag-
istrate, a judge of the United States Court of Appeals
for the Armed Services, and a bankruptcy judge, as
the case may be; and
‘‘(II) for the United States Postal Service and the
Washington Metropolitan Airport Authority shall be
7 percent of the basic pay of an employee and 7.5
percent of the basic pay of a law enforcement officer
or firefighter.’’.
(B) NO REDUCTION IN AGENCY CONTRIBUTIONS BY THE
POSTAL
SERVICE.—Agency contributions by the United
States Postal Service under section 8348(h) of title 5,
United States Code—
(i) shall not be reduced as a result of the amend-
ments made under paragraph (3) of this subsection;
and
(ii) shall be computed as though such amendments
had not been enacted.
(3) 
INDIVIDUAL
DEDUCTIONS, 
WITHHOLDINGS, 
AND
DEPOSITS.—The table under section 8334(c) of title 5, United
States Code, is amended—
(A) in the matter relating to an employee by striking
out
‘‘7 ...........
After December 31, 1969.’’
and inserting in lieu thereof the following:
‘‘7 ...........
January 1, 1970, to De-
cember 31, 1995.
7.25 .....
January 1, 1996, to De-
cember 31, 1996.
7.4 .......
January 1, 1997, to De-
cember 31, 1997.
7.5 .......
January 1, 1998, to De-
cember 31, 2002.
7 ..........
After December 31, 2002.’’;
(B) in the matter relating to a Member or employee
for Congressional employee service by striking out
‘‘71⁄2 .......
After December 31, 1969.’’
and inserting in lieu thereof the following:
‘‘7.5 ........
January 1, 1970, to De-
cember 31, 1995.
7.25 .....
January 1, 1996, to De-
cember 31, 1996.
7.4 .......
January 1, 1997, to De-
cember 31, 1997.
7.5 .......
January 1, 1998, to De-
cember 31, 2002.
7 ..........
After December 31, 2002.’’;
(C) in the matter relating to a Member for Member
service by striking out
H. R. 2491—174
‘‘8 ...........
After December 31, 1969.’’
and inserting in lieu thereof the following:
‘‘8 ...........
January 1, 1970, to De-
cember 31, 1995.
7.25 .....
January 1, 1996, to De-
cember 31, 1996.
7.4 .......
January 1, 1997, to De-
cember 31, 1997.
7.5 .......
January 1, 1998, to De-
cember 31, 2002.
7 ..........
After December 31, 2002.’’;
(D) in the matter relating to a law enforcement officer
for law enforcement service and firefighter for firefighter
service by striking out
‘‘71⁄2 .......
After December 31, 1974.’’
and inserting in lieu thereof the following:
‘‘7.5 ........
January 1, 1975, to De-
cember 31, 1995.
7.75 .....
January 1, 1996, to De-
cember 31, 1996.
7.9 .......
January 1, 1997, to De-
cember 31, 1997.
8 ..........
January 1, 1998, to De-
cember 31, 2002.
7.5 .......
After December 31, 2002.’’;
(E) in the matter relating to a bankruptcy judge by
striking out
‘‘8 ...........
After December 31, 1983.’’
and inserting in lieu thereof the following:
‘‘8 ...........
January 1, 1984, to De-
cember 31, 1995.
7.25 .....
January 1, 1996, to De-
cember 31, 1996.
7.4 .......
January 1, 1997, to De-
cember 31, 1997.
7.5 .......
January 1, 1998, to De-
cember 31, 2002.
7 ..........
After December 31, 2002.’’;
(F) in the matter relating to a judge of the United
States Court of Appeals for the Armed Forces for service
as a judge of that court by striking out
‘‘8 ...........
On and after the date of
the enactment of the De-
partment of Defense Au-
thorization Act, 1984.’’
and inserting in lieu thereof the following:
‘‘8 ...........
The date of the enactment
of the Department of
Defense Authorization
Act, 1984, to December
31, 1995.
7.25 .....
January 1, 1996, to De-
cember 31, 1996.
7.4 .......
January 1, 1997, to De-
cember 31, 1997.
H. R. 2491—175
7.5 .......
January 1, 1998, to De-
cember 31, 2002.
7 ..........
After December 31, 2002.’’;
(G) in the matter relating to a United States magistrate
by striking out
‘‘8 ...........
After September 30, 1987.’’
and inserting in lieu thereof the following:
‘‘8 ...........
October 1, 1987, to Decem-
ber 31, 1995.
7.25 .....
January 1, 1996, to De-
cember 31, 1996.
7.4 .......
January 1, 1997, to De-
cember 31, 1997.
7.5 .......
January 1, 1998, to De-
cember 31, 2002.
7 ..........
After December 31, 2002.’’;
(H) in the matter relating to a Claims Court judge
by striking out
‘‘8 ...........
After September 30, 1988.’’
and inserting in lieu thereof the following:
‘‘8 ...........
October 1, 1988, to Decem-
ber 31, 1995.
7.25 .....
January 1, 1996, to De-
cember 31, 1996.
7.4 .......
January 1, 1997, to De-
cember 31, 1997.
7.5 .......
January 1, 1998, to De-
cember 31, 2002.
7 ..........
After December 31, 2002.’’;
and
(I) by inserting after the matter relating to a Claims
Court judge the following:
‘‘Member of the Capitol Police .....................
2.5 .........
August 1, 1920, to June
30, 1926.
3.5 .........
July 1, 1926, to June 30,
1942.
5 ............
July 1, 1942, to June 30,
1948.
6 ............
July 1, 1948, to October
31, 1956.
6.5 .........
November 1, 1956, to De-
cember 31, 1969.
7.5 .........
January 1, 1970, to De-
cember 31, 1995.
7.75 .......
January 1, 1996, to De-
cember 31, 1996.
7.9 .........
January 1, 1997, to De-
cember 31, 1997.
8 ............
January 1, 1998, to De-
cember 31, 2002.
7.5 .........
After December 31, 2002.’’.
(4) OTHER SERVICE.—
(A) MILITARY
SERVICE.—Section 8334(j) of title 5,
United States Code, is amended—
(i) in paragraph (1)(A) by inserting ‘‘and subject
to paragraph (5),’’ after ‘‘Except as provided in subpara-
graph (B),’’; and
H. R. 2491—176
(ii) by adding at the end thereof the following
new paragraph:
‘‘(5) Effective with respect to any period of military service
after December 31, 1995, the percentage of basic pay under section
204 of title 37 payable under paragraph (1) shall be equal to
the same percentage as would be applicable under section 8334(c)
for that same period for service as an employee, subject to paragraph
(1)(B).’’.
(B) VOLUNTEER
SERVICE.—Section 8334(l) of title 5,
United States Code, is amended—
(i) in paragraph (1) by adding at the end thereof
the following: ‘‘This paragraph shall be subject to para-
graph (4).’’; and
(ii) by adding at the end thereof the following
new paragraph:
‘‘(4) Effective with respect to any period of service after Decem-
ber 31, 1995, the percentage of the readjustment allowance or
stipend (as the case may be) payable under paragraph (1) shall
be equal to the same percentage as would be applicable under
section 8334(c) for that same period for service as an employee.’’.
(b) FEDERAL EMPLOYEES RETIREMENT SYSTEM.—
(1) INDIVIDUAL DEDUCTIONS AND WITHHOLDINGS.—
(A) IN GENERAL.—Section 8422(a) of title 5, United
States Code, is amended by striking out paragraph (2)
and inserting in lieu thereof the following:
‘‘(2) The percentage to be deducted and withheld from basic
pay for any pay period shall be equal to—
‘‘(A) the applicable percentage under paragraph (3), minus
‘‘(B) the percentage then in effect under section 3101(a)
of the Internal Revenue Code of 1986 (relating to rate of tax
for old-age, survivors, and disability insurance).
‘‘(3) The applicable percentage under this paragraph, for civilian
service shall be as follows:
Employee .......................................................
7 ............
Before January 1, 1996.
7.25 .......
January 1, 1996, to De-
cember 31, 1996.
7.4 .........
January 1, 1997, to De-
cember 31, 1997.
7.5 .........
January 1, 1998, to De-
cember 31, 2002.
7 ............
After December 31, 2002.
Congressional employee ...............................
7.5 .........
Before January 1, 1996.
7.25 .......
January 1, 1996, to De-
cember 31, 1996.
7.4 .........
January 1, 1997, to De-
cember 31, 1997.
7.5 .........
January 1, 1998, to De-
cember 31, 2002.
7 ............
After December 31, 2002.
Member ..........................................................
7.5 .........
Before January 1, 1996.
7.25 .......
January 1, 1996, to De-
cember 31, 1996.
7.4 .........
January 1, 1997, to De-
cember 31, 1997.
7.5 .........
January 1, 1998, to De-
cember 31, 2002.
7 ............
After December 31, 2002.
Law enforcement officer, firefighter, mem-
ber of the Capitol Police, or air traffic
controller.
7.5 .........
Before January 1, 1996.
7.75 .......
January 1, 1996, to De-
cember 31, 1996.
H. R. 2491—177
7.9 .........
January 1, 1997, to De-
cember 31, 1997.
8 ............
January 1, 1998, to De-
cember 31, 2002.
7.5 .........
After December 31, 2002.
(B) MILITARY
SERVICE.—Section 8422(e) of title 5,
United States Code, is amended—
(i) in paragraph (1)(A) by inserting ‘‘and subject
to paragraph (6),’’ after ‘‘Except as provided in subpara-
graph (B),’’; and
(ii) by adding at the end thereof the following:
‘‘(6) The percentage of basic pay under section 204 of title
37 payable under paragraph (1), with respect to any period
of military service performed during—
‘‘(A) January 1, 1996, through December 31, 1996,
shall be 3.25 percent;
‘‘(B) January 1, 1997, through December 31, 1997,
shall be 3.4 percent; and
‘‘(C) January 1, 1998, through December 31, 2002,
shall be 3.5 percent.’’.
(C) VOLUNTEER
SERVICE.—Section 8422(f) of title 5,
United States Code, is amended—
(i) in paragraph (1) by adding at the end thereof
the following: ‘‘This paragraph shall be subject to para-
graph (4).’’; and
(ii) by adding at the end the following:
‘‘(4) The percentage of the readjustment allowance or sti-
pend (as the case may be) payable under paragraph (1), with
respect to any period of volunteer service performed during—
‘‘(A) January 1, 1996, through December 31, 1996,
shall be 3.25 percent;
‘‘(B) January 1, 1997, through December 31, 1997,
shall be 3.4 percent; and
‘‘(C) January 1, 1998, through December 31, 2002,
shall be 3.5 percent.’’.
(2) NO REDUCTION IN AGENCY CONTRIBUTIONS.—Agency con-
tributions under section 8423 (a) and (b) of title 5, United
States Code , shall not be reduced as a result of the amend-
ments made under paragraph (1) of this subsection.
(c) EFFECTIVE DATE.—The amendments made by this section
shall take effect on the first day of the first applicable pay period
beginning on or after January 1, 1996.
SEC. 6003. FEDERAL RETIREMENT PROVISIONS RELATING TO MEM-
BERS OF CONGRESS AND CONGRESSIONAL EMPLOYEES.
(a) RELATING
TO
THE YEARS
OF SERVICE
AS
A MEMBER
OF
CONGRESS
AND CONGRESSIONAL EMPLOYEES
FOR PURPOSES
OF
COMPUTING AN ANNUITY.—
(1) CSRS.—Section 8339 of title 5, United States Code,
is amended—
(A) in subsection (a) by inserting ‘‘or Member’’ after
‘‘employee’’; and
(B) by striking out subsections (b) and (c).
(2) FERS.—Section 8415 of title 5, United States Code,
is amended—
(A) by striking out subsections (b) and (c);
(B) in subsections (a) and (g) by inserting ‘‘or Member’’
after ‘‘employee’’ each place it appears; and
H. R. 2491—178
(C) in subsection (g)(2) by striking out ‘‘Congressional
employee’’.
(b) ACCRUAL RATE FOR MEMBER AND CONGRESSIONAL EMPLOYEE
SERVICE PERFORMED BUT NOT VESTED BEFORE EFFECTIVE DATE.—
(1) APPLICATION.—This subsection shall apply to an individ-
ual who—
(A) is a Member of Congress or Congressional employee
on December 31, 1995;
(B) has performed less than 5 years of service as a
Member of Congress or Congressional employee on Decem-
ber 31, 1995; and
(C) after December 31, 1995, completes 5 years of
service as a Member of Congress or Congressional
employee, that includes a period of service performed as
a Member of Congress or Congressional employee before
January 1, 1996.
(2) COMPUTATION OF ANNUITY.— In computing the annuity
of an individual described under paragraph (1)—
(A) any period of service as a Member of Congress
or Congressional employee performed before January 1,
1996, shall be computed under sections 8339 or 8415 of
title 5, United States Code (as though the amendments
under subsection (a) of this section were not enacted);
and
(B) the 5 year service requirement under subsections
(b) and (c) of sections 8339 or 8415 of such title (as in
effect before the date of enactment of this Act) shall be
deemed fulfilled.
(c) CAPITOL POLICE.—Section 8339(q) of title 5, United States
Code, is amended by striking out ‘‘with subsection (b), except that,
in the case of a member who retires under section 8335(d) or
8336(m), and who meets the requirements of subsection (b)(2),’’
and inserting in lieu thereof ‘‘with subsection (a), except that in
the case of a member who retires under section 8335(d) or 8336(m),
and who has deductions withheld from his pay or has made deposit
covering his last 5 years of civilian service,’’.
(d) ADMINISTRATIVE REGULATIONS.—The Office of Personnel
Management, in consultation with the Secretary of the Senate
and the Clerk of the House of Representatives, may prescribe regu-
lations to carry out the provisions of this section and the amend-
ments made by this section for applicable employees and Members
of Congress.
(e) EFFECTIVE DATES.—
(1) YEARS OF SERVICE; ANNUITY COMPUTATION.—
(A) SERVICE AFTER EFFECTIVE DATE.—The amendments
made by subsection (a) shall take effect on January 1,
1996, and shall apply only with respect to the computation
of an annuity relating to—
(i) the service of a Member of Congress as a Mem-
ber or as a Congressional employee performed on or
after January 1, 1996; and
(ii) the service of a Congressional employee as
a Congressional employee performed on or after Janu-
ary 1, 1996.
(B) SERVICE
BEFORE
EFFECTIVE
DATE.—An annuity
shall be computed as though the amendments made under
subsection (a) had not been enacted with respect to—
H. R. 2491—179
(i) the service of a Member of Congress as a Mem-
ber or a Congressional employee or military service
performed before January 1, 1996; and
(ii) the service of a Congressional employee as
a Congressional employee or military service performed
before January 1, 1996.
(C) ALTERNATIVE EFFECTIVE DATE RELATING TO MEM-
BERS OF CONGRESS.—If a court of competent jurisdiction
makes a final determination that a provision of this para-
graph violates the 27th amendment of the United States
Constitution, the effective date and application dates relat-
ing to Members of Congress shall be January 1, 1997.
(2) ADMINISTRATIVE
PROVISIONS.—The provisions of sub-
sections (b), (c), and (d) shall take effect on the date of the
enactment of this Act.
SEC. 6004. ACCRUAL RATES RELATING TO CERTAIN JUDGES WITH SIMI-
LAR TREATMENT AS CONGRESSIONAL SERVICE.
(a) JUDGE
OF
THE
UNITED
STATES
COURT
OF
MILITARY
APPEALS.—Section 8339(d)(7) of title 5, United States Code, is
amended by striking out ‘‘service.’’ and inserting in lieu thereof
‘‘service performed before January 1, 1996.’’.
(b) CLAIMS COURT JUDGE, BANKRUPTCY JUDGE, UNITED STATES
MAGISTRATE.—Section 8339(n) of title 5, United States Code, is
amended by striking out ‘‘service.’’ and inserting in lieu thereof
‘‘service performed before January 1, 1996. The annuity of any
such employee is, with respect to any service referred to in the
preceding sentence that is performed on or after January 1, 1996,
computed under subsection (a).’’.
SEC. 6005. REPEAL OF AUTHORIZATION OF TRANSITIONAL APPRO-
PRIATIONS FOR THE UNITED STATES POSTAL SERVICE.
(a) REPEAL.—
(1) IN GENERAL.—Section 2004 of title 39, United States
Code, is repealed.
(2) TECHNICAL AND CONFORMING AMENDMENTS.—
(A) The table of sections for chapter 20 of such title
is amended by repealing the item relating to section 2004.
(B) Section 2003(e)(2) of such title is amended by strik-
ing ‘‘sections 2401 and 2004’’ each place it appears and
inserting ‘‘section 2401’’.
(b) CLARIFICATION THAT LIABILITIES FORMERLY PAID PURSUANT
TO SECTION 2004 REMAIN LIABILITIES PAYABLE
BY
THE POSTAL
SERVICE.—Section 2003 of title 39, United States Code, is amended
by adding at the end the following:
‘‘(h) Liabilities of the former Post Office Department to the
Employees’ Compensation Fund (appropriations for which were
authorized by former section 2004, as in effect before the effective
date of this subsection) shall be liabilities of the Postal Service
payable out of the Fund.’’.
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—This section and the amendments made
by this section shall be effective as of October 1, 1995.
(2) PROVISIONS RELATING TO PAYMENTS FOR FISCAL YEAR
1996.—
(A) AMOUNTS NOT YET PAID.—No payment may be made
to the Postal Service Fund, on or after the date of the
enactment of this Act, pursuant to any appropriation for
H. R. 2491—180
fiscal year 1996 authorized by section 2004 of title 39,
United States Code (as in effect before the effective date
of this section).
(B) AMOUNTS PAID.—If any payment to the Postal Serv-
ice Fund is or has been made pursuant to an appropriation
for fiscal year 1996 authorized by such section 2004, then
an amount equal to the amount of such payment shall
be paid from such Fund into the Treasury as miscellaneous
receipts.
Subtitle B—Patent and Trademark Fees
SEC. 6011. 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 inserting ‘‘2002’’;
(2) in subsection (b)(2) by striking ‘‘1998’’ and inserting
‘‘2002’’; and
(3) in subsection (c)—
(A) by striking ‘‘through 1998’’ and inserting ‘‘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.’’.
Subtitle C—GSA Property Sales
SEC. 6021. SALE OF GOVERNORS ISLAND, NEW YORK.
(a) IN GENERAL.—Notwithstanding any other provision of law,
the Administrator of General Services shall dispose of by sale
at fair market value all rights, title, and interests of the United
States in and to the land of, and improvements to, Governors
Island, New York.
(b) RIGHT OF FIRST REFUSAL.—Before a sale is made under
subsection (a) to any other parties, the State of New York and
the city of New York shall be given the right of first refusal
to purchase all or part of Governors Island. Such right may be
exercised by either the State of New York or the city of New
York or by both parties acting jointly.
(c) PROCEEDS.—Proceeds from the disposal of Governors Island
under subsection (a) shall be deposited in the general fund of
the Treasury and credited as miscellaneous receipts.
SEC. 6022. SALE OF AIR RIGHTS.
(a) IN GENERAL.—Notwithstanding any other provision of law,
the Administrator of General Services shall sell, at fair market
value and in a manner to be determined by the Administrator,
the air rights adjacent to Washington Union Station described
in subsection (b), including air rights conveyed to the Administrator
under subsection (d). The Administrator shall complete the sale
by such date as is necessary to ensure that the proceeds from
the sale will be deposited in accordance with subsection (c).
H. R. 2491—181
(b) DESCRIPTION.—The air rights referred to in subsection (a)
total approximately 16.5 acres and are depicted on the plat map
of the District of Columbia as follows:
(1) Part of lot 172, square 720.
(2) Part of lots 172 and 823, square 720.
(3) Part of lot 811, square 717.
(c) PROCEEDS.—Before September 30, 1996, proceeds from the
sale of air rights under subsection (a) shall be deposited in the
general fund of the Treasury and credited as miscellaneous receipts.
(d) CONVEYANCE OF AMTRAK AIR RIGHTS.—
(1) GENERAL RULE.—As a condition of future Federal finan-
cial assistance, Amtrak shall convey to the Administrator of
General Services on or before December 31, 1995, at no charge,
all of the air rights of Amtrak described in subsection (b).
(2) FAILURE
TO
COMPLY.—If Amtrak does not meet the
condition established by paragraph (1), Amtrak shall be prohib-
ited from obligating Federal funds after March 1, 1996.
SEC. 6023. AVAILABILITY OF SURPLUS PROPERTY FOR HOMELESS
ASSISTANCE.
(a) REPEAL.—(1) Title V of the Stewart B. McKinney Homeless
Assistance Act (42 U.S.C. 11411 et seq.) is repealed.
(2) The table of contents in section 101(b) of that Act is amended
by striking the items relating to title V.
(3) This subsection shall be effective October 1, 1995.
(b) AUTHORITY TO TRANSFER SURPLUS REAL PROPERTY
FOR
HOUSING USE.—Section 203 of the Federal Property and Adminis-
trative Services Act of 1949 (40 U.S.C. 484) is amended by adding
at the end the following:
‘‘(r) Under such regulations as the Administrator may prescribe,
and in consultation with appropriate local governmental authorities,
the Administrator may transfer to any nonprofit organization which
exists for the primary purpose of providing housing or housing
assistance for homeless individuals or families, such surplus real
property, including buildings, fixtures, and equipment situated
thereon, as is needed for housing use.
‘‘(s)(1) Under such regulations as the Administrator may pre-
scribe, and in consultation with appropriate local governmental
authorities, the Administrator may transfer to any non-profit
organization which exists for the primary purpose of providing
housing or housing assistance for low-income individuals or families
such surplus real property, including buildings, fixtures, and equip-
ment situated thereon, as is needed for housing use.
‘‘(2) In making transfers under this subsection, the Adminis-
trator shall take such actions, which may include grant agreements
with an organization receiving a grant, as may be necessary to
ensure that—
‘‘(A) assistance provided under this subsection is used to
facilitate and encourage homeownership opportunities through
the construction of self-help housing, under terms which require
that the person receiving the assistance contribute a significant
amount of labor toward the construction; and
‘‘(B) the dwellings constructed with property transferred
under this subsection shall be quality dwellings that comply
with local building and safety codes and standards and shall
be available at prices below the prevailing market prices.’’.
H. R. 2491—182
TITLE VII—TRANSFORMATION OF THE
MEDICAID PROGRAM
SEC. 7000. SHORT TITLE OF TITLE; TABLE OF CONTENTS OF TITLE.
(a) SHORT TITLE OF TITLE.—This title may be cited as the
‘‘Medicaid Transformation Act of 1995’’.
(b) TABLE OF CONTENTS OF TITLE.—The table of contents of
this title is as follows:
Sec. 7000. Short title of title; table of contents of title.
Sec. 7001. Transformation of medicaid program.
Sec. 7002. Termination of current program and transition.
Sec. 7003. Medicare/MediGrant integration demonstration project.
SEC. 7001. TRANSFORMATION OF MEDICAID PROGRAM.
The Social Security Act is amended by adding at the end
the following new title:
‘‘TITLE XXI—MEDIGRANT PROGRAM FOR LOW-INCOME INDIVIDUALS AND
FAMILIES
‘‘TABLE OF CONTENTS OF TITLE
‘‘Sec. 2100. Purpose; State MediGrant plans.
‘‘PART A—OBJECTIVES, GOALS, AND PERFORMANCE UNDER STATE PLANS
‘‘Sec. 2101. Description of strategic objectives and performance goals.
‘‘Sec. 2102. Annual reports.
‘‘Sec. 2103. Periodic, independent evaluations.
‘‘Sec. 2104. Description of process for MediGrant plan development.
‘‘Sec. 2105. Consultation in MediGrant plan development.
‘‘PART B—ELIGIBILITY, BENEFITS, AND SET-ASIDES
‘‘Sec. 2111. Eligibility and benefits.
‘‘Sec. 2112. Set-asides of funds.
‘‘Sec. 2113. Premiums and cost-sharing.
‘‘Sec. 2114. Description of process for developing capitation payment rates.
‘‘Sec. 2115. Preventing spousal impoverishment.
‘‘Sec. 2116. State flexibility.
‘‘PART C—PAYMENTS TO STATES
‘‘Sec. 2121. Allotment of funds among States.
‘‘Sec. 2122. Payments to States.
‘‘Sec. 2123. Limitation on use of funds; disallowance.
‘‘PART D—PROGRAM INTEGRITY AND QUALITY
‘‘Sec. 2131. Use of audits to achieve fiscal integrity.
‘‘Sec. 2132. Fraud prevention program.
‘‘Sec. 2133. Information concerning sanctions taken by State licensing authorities
against health care practitioners and providers.
‘‘Sec. 2134. State MediGrant fraud control units.
‘‘Sec. 2135. Recoveries from third parties and others.
‘‘Sec. 2136. Assignment of rights of payment.
‘‘Sec. 2137. Quality assurance requirements for nursing facilities.
‘‘Sec. 2138. Other provisions promoting program integrity.
‘‘PART E—ESTABLISHMENT AND AMENDMENT OF MEDIGRANT PLANS
‘‘Sec. 2151. Submittal and approval of MediGrant plans.
‘‘Sec. 2152. Submittal and approval of plan amendments.
‘‘Sec. 2153. Process for State withdrawal from program.
‘‘Sec. 2154. Sanctions for noncompliance.
‘‘Sec. 2155. Secretarial authority.
‘‘PART F—GENERAL PROVISIONS
‘‘Sec. 2171. Definitions.
‘‘Sec. 2172. Treatment of territories.
‘‘Sec. 2173. Description of treatment of Indian Health Service facilities.
H. R. 2491—183
‘‘Sec. 2174. Application of certain general provisions.
‘‘Sec. 2175. MediGrant master drug rebate agreements.
‘‘SEC. 2100. PURPOSE; STATE MEDIGRANT PLANS.
‘‘(a) PURPOSE.—The purpose of this title is to provide block
grants to States to enable them to provide medical assistance to
low-income individuals and families in a more effective, efficient,
and responsive manner.
‘‘(b) STATE PLAN REQUIRED.—A State is not eligible for payment
under section 2122 of this title unless the State has submitted
to the Secretary under part E a plan (in this title referred to
as a ‘MediGrant plan’) that—
‘‘(1) sets forth how the State intends to use the funds
provided under this title to provide medical assistance to needy
individuals and families consistent with the provisions of this
title, and
‘‘(2) is approved under such part.
‘‘(c) CONTINUED APPROVAL.—An approved MediGrant plan shall
continue in effect unless and until—
‘‘(1) the State amends the plan under section 2152,
‘‘(2) the State terminates participation under this title
under section 2153, or
‘‘(3) the Secretary finds substantial noncompliance of the
plan with the requirements of this title under section 2154.
‘‘(d) STATE ENTITLEMENT.—This title constitutes budget author-
ity in advance of appropriations Acts, and represents the obligation
of the Federal Government to provide for the payment to States
of amounts provided under part C.
‘‘PART A—OBJECTIVES, GOALS, AND PERFORMANCE UNDER STATE
PLANS
‘‘SEC. 2101. DESCRIPTION OF STRATEGIC OBJECTIVES AND PERFORM-
ANCE GOALS.
‘‘(a) DESCRIPTION.—A MediGrant plan shall include a descrip-
tion of the strategic objectives and performance goals the State
has established for providing health care services to low-income
populations under this title, including a general description of the
manner in which the plan is designed to meet these objectives
and goals.
‘‘(b) CERTAIN OBJECTIVES AND GOALS REQUIRED.—A MediGrant
plan shall include strategic objectives and performance goals relat-
ing to rates of childhood immunizations and reductions in infant
mortality and morbidity.
‘‘(c) CONSIDERATIONS.—In specifying these objectives and goals
the State may consider factors such as the following:
‘‘(1) The State’s priorities with respect to providing assist-
ance to low-income populations.
‘‘(2) The State’s priorities with respect to the general public
health and the health status of individuals eligible for assist-
ance under the MediGrant plan.
‘‘(3) The State’s financial resources, the particular economic
conditions in the State, and relative adequacy of the health
care infrastructure in different regions of the State.
‘‘(d) PERFORMANCE MEASURES.—To the extent practicable—
‘‘(1) one or more performance goals shall be established
by the State for each strategic objective identified in the
MediGrant plan; and
H. R. 2491—184
‘‘(2) the MediGrant plan shall describe, how program
performance will be—
‘‘(A) measured through objective, independently verifi-
able means, and
‘‘(B) compared against performance goals, in order to
determine the State’s performance under this title.
‘‘(e) PERIOD COVERED.—
‘‘(1) STRATEGIC OBJECTIVES.—The strategic objectives shall
cover a period of not less than 5 years and shall be updated
and revised at least every 3 years.
‘‘(2) PERFORMANCE
GOALS.—The performance goals shall
be established for dates that are not more than 3 years apart.
‘‘SEC. 2102. ANNUAL REPORTS.
‘‘(a) IN GENERAL.—In the case of a State with a MediGrant
plan that is in effect for part or all of a fiscal year, no later
than March 31 following such fiscal year (or March 31, 1998,
in the case of fiscal year 1996) the State shall prepare and submit
to the Secretary and the Congress a report on program activities
and performance under this title for such fiscal year.
‘‘(b) CONTENTS.—Each annual report under this section for a
fiscal year shall include the following:
‘‘(1) EXPENDITURE AND BENEFICIARY SUMMARY.—
‘‘(A) INITIAL SUMMARY.—For the report for fiscal year
1997 (and, if applicable, fiscal year 1996), a summary of
all expenditures under the MediGrant plan during the
fiscal year (and during any portions of fiscal year 1996
during which the MediGrant plan was in effect under this
title) as follows:
‘‘(i) Aggregate medical assistance expenditures,
disaggregated to the extent required to determine
compliance with the set-aside requirements of sub-
sections (a) through (d) of section 2112 and to compute
the case mix index under section 2121(d)(3).
‘‘(ii) For each general category of eligible individ-
uals (specified in subsection (c)(1), aggregate medical
assistance expenditures and the total and average
number of eligible individuals under the MediGrant
plan.
‘‘(iii) By each general category of eligible individ-
uals, total expenditures for each of the categories of
health care items and services (specified in subsection
(c)(2)) which are covered under the MediGrant plan
and provided on a fee-for-service basis.
‘‘(iv) By each general category of eligible individ-
uals, total expenditures for payments to capitated
health care organizations (as defined in section
2114(c)(1)).
‘‘(v) Total administrative expenditures.
‘‘(B) SUBSEQUENT
SUMMARIES.—For reports for each
succeeding fiscal year, a summary of—
‘‘(i) all expenditures under the MediGrant plan,
and
‘‘(ii) the total and average number of eligible
individuals under the MediGrant plan for each general
category of eligible individuals.
‘‘(2) UTILIZATION SUMMARY.—
H. R. 2491—185
‘‘(A) INITIAL SUMMARY.—For the report for fiscal year
1997 (and, if applicable, fiscal year 1996), summary statis-
tics on the utilization of health care services under the
MediGrant plan during the year (and during any portions
of fiscal year 1996 during which the MediGrant plan was
in effect under this title) as follows:
‘‘(i) For each general category of eligible individuals
and for each of the categories of health care items
and services which are covered under the MediGrant
plan and provided on a fee-for-service basis, the num-
ber and percentage of persons who received such a
type of service or item during the period covered by
the report.
‘‘(ii) Summary of health care utilization data
reported to the State by capitated health care organiza-
tions.
‘‘(B) SUBSEQUENT
SUMMARIES.—For reports for each
succeeding fiscal year, summary statistics on the utilization
of health care services under the MediGrant plan.
‘‘(3) ACHIEVEMENT OF PERFORMANCE GOALS.—With respect
to each performance goal established under section 2101 and
applicable to the year involved—
‘‘(A) a brief description of the goal;
‘‘(B) a description of the methods to be used to measure
the attainment of such goal;
‘‘(C) data on the actual performance with respect to
the goal;
‘‘(D) a review of the extent to which the goal was
achieved, based on such data; and
‘‘(E) if a performance goal has not been met—
‘‘(i) why the goal was not met, and
‘‘(ii) actions to be taken in response to such
performance, including adjustments in performance
goals or program activities for subsequent years.
‘‘(4) PROGRAM EVALUATIONS.—A summary of the findings
of evaluations under section 2103 completed during the fiscal
year covered by the report.
‘‘(5) FRAUD AND ABUSE AND QUALITY CONTROL ACTIVITIES.—
A general description of the State’s activities under part D
to detect and deter fraud and abuse and to assure quality
of services provided under the program.
‘‘(6) PLAN ADMINISTRATION.—
‘‘(A) A description of the administrative roles and
responsibilities of entities in the State responsible for
administration of this title.
‘‘(B) Organizational charts for each entity in the State
primarily responsible for activities under this title.
‘‘(C) A brief description of each interstate compact (if
any) the State has entered into with other States with
respect to activities under this title.
‘‘(D) General citations to the State statutes and
administrative rules governing the State’s activities under
this title.
‘‘(c) DESCRIPTION OF CATEGORIES.—In this section:
‘‘(1) GENERAL CATEGORIES OF ELIGIBLE INDIVIDUALS.—Each
of the following is a general category of eligible individuals:
‘‘(A) Pregnant women.
H. R. 2491—186
‘‘(B) Children.
‘‘(C) Blind or disabled adults who are not elderly
individuals.
‘‘(D) Elderly individuals.
‘‘(E) Other adults.
‘‘(2) CATEGORIES OF HEALTH CARE ITEMS AND SERVICES.—
The health care items and services described in each paragraph
of section 2171(a) shall be considered a separate category of
health care items and services.
‘‘SEC. 2103. PERIODIC, INDEPENDENT EVALUATIONS.
‘‘(a) IN GENERAL.—During fiscal year 1998 and every third
fiscal year thereafter, each State shall provide for an evaluation
of the operation of its MediGrant plan under this title.
‘‘(b) INDEPENDENT.—Each such evaluation with respect to an
activity under the MediGrant plan shall be conducted by an entity
that is neither responsible under State law for the submission
of the State MediGrant plan (or part thereof) nor responsible for
administering (or supervising the administration of) the activity.
If consistent with the previous sentence, such an entity may be
a college or university, a State agency, a legislative branch agency
in a State, or an independent contractor.
‘‘(c) RESEARCH DESIGN.—Each such evaluation shall be con-
ducted in accordance with a research design that is based on gen-
erally accepted models of survey design and sampling and statistical
analysis.
‘‘SEC. 2104. DESCRIPTION OF PROCESS FOR MEDIGRANT PLAN DEVEL-
OPMENT.
‘‘Each MediGrant plan shall include a description of the process
under which the plan shall be developed and implemented in the
State (consistent with section 2105).
‘‘SEC. 2105. CONSULTATION IN MEDIGRANT PLAN DEVELOPMENT.
‘‘(a) PUBLIC NOTICE PROCESS.—Before submitting a MediGrant
plan or a plan amendment described in subsection (c) to the Sec-
retary under part E, a State shall provide—
‘‘(1) public notice respecting the submittal of the proposed
plan or amendment, including a general description of the
plan or amendment,
‘‘(2) a means for the public to inspect or obtain a copy
(at reasonable charge) of the proposed plan or amendment,
‘‘(3) an opportunity for submittal and consideration of public
comments on the proposed plan or amendment, and
‘‘(4) for consultation with one or more advisory committees
established and maintained by the State.
The previous sentence shall not apply to a revision of a MediGrant
plan (or revision of an amendment to a plan) made by a State
under section 2154(c)(1) or to a plan amendment withdrawal
described in section 2154(c)(4).
‘‘(b) CONTENTS OF NOTICE.—A notice under subsection (a)(1)
for a proposed plan or amendment shall include a description of—
‘‘(1) the general purpose of the proposed plan or amendment
(including applicable effective dates),
‘‘(2) where the public may inspect the proposed plan or
amendment,
H. R. 2491—187
‘‘(3) how the public may obtain a copy of the proposed
plan or amendment and the applicable charge (if any) for the
copy, and
‘‘(4) how the public may submit comments on the proposed
plan or amendment, including any deadlines applicable to
consideration of such comments.
‘‘(c) AMENDMENTS DESCRIBED.—An amendment to a MediGrant
plan described in this subsection is an amendment which makes
a material and substantial change in eligibility under the
MediGrant plan or the benefits provided under the plan.
‘‘(d) PUBLICATION.—Notices under this section may be published
(as selected by the State) in one or more daily newspapers of
general circulation in the State or in any publication used by
the State to publish State statutes or rules.
‘‘(e) COMPARABLE PROCESS.—A separate notice, or notices, shall
not be required under this section for a State if notice of the
MediGrant plan or an amendment to the plan will be provided
under a process specified in State law that is substantially equiva-
lent to the notice process specified in this section.
‘‘PART B—ELIGIBILITY, BENEFITS, AND SET-ASIDES
‘‘SEC. 2111. ELIGIBILITY AND BENEFITS.
‘‘(a) DESCRIPTION
OF GENERAL ELIGIBILITY
AND BENEFITS.—
Each MediGrant plan shall include a description (consistent with
this title) of the following:
‘‘(1) GENERAL ELIGIBILITY STANDARDS.—The general eligi-
bility standards of the plan for eligible low-income individuals
(including individuals described in subsection (b)), including—
‘‘(A) any limitations as to the duration of eligibility,
‘‘(B) any eligibility standards relating to age, income
and resources (including any standards relating to
spenddowns and disposition of resources), residency,
disability status, immigration status, or employment status
of individuals,
‘‘(C) methods of establishing and continuing eligibility
and enrollment, including the methodology for computing
family income,
‘‘(D) the eligibility standards in the plan that protect
the income and resources of a married individual who
is living in the community and whose spouse is residing
in an institution in order to prevent the impoverishment
of the community spouse, and
‘‘(E) any other standards relating to eligibility for medi-
cal assistance under the plan.
‘‘(2) SCOPE
OF
ASSISTANCE.—The amount, duration, and
scope of health care services and items covered under the
plan, including differences among different eligible population
groups.
‘‘(3) DELIVERY METHOD.—The State’s approach to delivery
of medical assistance, including a general description of—
‘‘(A) the use (or intended use) of vouchers, fee-for-
service, or managed care arrangements (such as capitated
health care plans, case management, and case coordina-
tion); and
‘‘(B) utilization control systems.
H. R. 2491—188
‘‘(4) FEE-FOR-SERVICE BENEFITS.—To the extent that medi-
cal assistance is furnished on a fee-for-service basis—
‘‘(A) how the State determines the qualifications of
health care providers eligible to provide such assistance;
and
‘‘(B) how the State determines rates of reimbursement
for providing such assistance.
‘‘(5) COST-SHARING.—Beneficiary cost-sharing (if any),
including variations in such cost-sharing by population group
or type of service and financial responsibilities of parents of
recipients who are children and the spouses of recipients.
‘‘(6) UTILIZATION INCENTIVES.—Incentives or requirements
(if any) to encourage the appropriate utilization of services.
‘‘(7) SUPPORT FOR CERTAIN HOSPITALS.—
‘‘(A) IN GENERAL.—With respect to hospitals described
in subparagraph (B) located in the State, a description
of the extent to which provisions are made for expenditures
for items and services furnished by such hospitals and
covered under the MediGrant plan.
‘‘(B) HOSPITALS DESCRIBED.—A hospital described in
this subparagraph is a short-term acute care general hos-
pital or a children’s hospital, the low-income utilization
rate of which exceeds the lesser of—
‘‘(i) 1 standard deviation above the mean low-
income utilization rate for hospitals receiving payments
under a MediGrant plan in the State in which such
hospital is located, or
‘‘(ii) 11⁄4 standard deviations above the mean low-
income utilization rate for hospitals receiving such pay-
ments in the 50 States and the District of Columbia.
‘‘(C) LOW-INCOME UTILIZATION RATE.—For purposes of
subparagraph (B), the term ‘low-income utilization rate’
means, for a hospital, a fraction (expressed as a percent-
age), the numerator of which is the hospital’s number of
patient days attributable to patients who (for such days)
were eligible for medical assistance under a MediGrant
plan or were uninsured in a period, and the denominator
of which is the total number of the hospital’s patient days
in that period.
‘‘(D) PATIENT DAYS.—For purposes of subparagraph (C),
the term ‘patient day’ includes each day in which—
‘‘(i) an individual, including a newborn, is an
inpatient in the hospital, whether or not the individual
is in a specialized ward and whether or not the individ-
ual remains in the hospital for lack of suitable place-
ment elsewhere; or
‘‘(ii) an individual makes one or more outpatient
visits to the hospital.
‘‘(b) MANDATORY COVERAGE.—Each MediGrant plan shall pro-
vide for making medical assistance available (subject to the eligi-
bility standards described under the plan pursuant to subsection
(a)(1) and State flexibility of benefits under section 2116) to—
‘‘(1) any pregnant woman or child under the age of 13
whose family income does not exceed the poverty line applicable
to a family of the size involved, and
‘‘(2) any individual who is disabled, as defined by the
State.
H. R. 2491—189
‘‘(c) IMMUNIZATIONS FOR CHILDREN.—The MediGrant plan shall
provide medical assistance for immunizations for children eligible
for any medical assistance under the MediGrant plan, in accordance
with a schedule for immunizations established by the Health
Department of the State in consultation with the individuals and
entities in the State responsible for the administration of the plan.
‘‘(d) FAMILY PLANNING SERVICES.—The MediGrant plan shall
provide prepregnancy planning services and supplies as specified
by the State.
‘‘(e) PREEXISTING
CONDITION
EXCLUSIONS.—Notwithstanding
any other provision of this title—
‘‘(1) a MediGrant plan may not deny or exclude coverage
of any item or service for an eligible individual for benefits
under the MediGrant plan for such item or service on the
basis of a preexisting condition; and
‘‘(2) if a State contracts or makes other arrangements
(through the eligible individual or through another entity) with
a capitated health care organization, insurer, or other entity,
for the provision of items or services to eligible individuals
under the MediGrant plan and the State permits such organiza-
tion, insurer, or other entity to exclude coverage of a covered
item or service on the basis of a preexisting condition, the
State shall provide, through its MediGrant plan, for such cov-
erage (through direct payment or otherwise) for any such cov-
ered item or service denied or excluded on the basis of a
preexisting condition.
‘‘(f) FAMILY
RESPONSIBILITY.—A MediGrant plan may not
require an adult child with a family income below the State median
income (as determined by the State) applicable to a family of
the size involved to contribute to the cost of covered nursing facility
services and other long-term care services for the child’s parent
under the plan.
‘‘(g) SOLVENCY
STANDARDS
FOR
CAPITATED
HEALTH
CARE
ORGANIZATIONS.—
‘‘(1) IN
GENERAL.—A State may not contract with a
capitated health care organization, as defined in section
2114(c)(1), for the provision of medical assistance under a
MediGrant plan under which the organization is—
‘‘(A) at full financial risk, as defined by the State,
unless the organization meets solvency standards estab-
lished by the State for private health maintenance
organizations, or
‘‘(B) is not at such risk, unless the organization meets
solvency standards that are established under the
MediGrant plan.
‘‘(2) TREATMENT OF PUBLIC ENTITIES.—Paragraph (1) shall
not apply to an organization that is a public entity or if the
solvency of such organization is guaranteed by the State.
‘‘(3) TRANSITION.—In the case of a capitated health care
organization that as of the date of the enactment of this title
has entered into a contract with a State for the provision
of medical assistance under title XIX under which the organiza-
tion assumes full financial risk and is receiving capitation
payments, paragraph (1) shall not apply to such organization
until 3 years after the date of the enactment of this title.
H. R. 2491—190
‘‘SEC. 2112. SET-ASIDES OF FUNDS.
‘‘(a) FOR TARGETED LOW-INCOME FAMILIES.—
‘‘(1) IN GENERAL.—Subject to subsection (f), a MediGrant
plan shall provide that the amount of funds expended under
the plan for medical assistance for targeted low-income families
(as defined in paragraph (3)) for a fiscal year shall be not
less than the minimum low-income-family percentage specified
in paragraph (2) of the total funds expended under the plan
for all medical assistance for the fiscal year.
‘‘(2) 
MINIMUM
LOW-INCOME-FAMILY
PERCENTAGE.—The
minimum low-income-family percentage specified in this para-
graph for a State is equal to 85 percent of the average percent-
age of the expenditures under title XIX for medical assistance
in the State during Federal fiscal years 1992 through 1994
which were attributable to expenditures for medical assistance
for mandated benefits (as defined in subsection (h)) furnished
to individuals—
‘‘(A) who (at the time of furnishing the assistance)
were under 65 years of age;
‘‘(B) whose coverage (at such time) under a State plan
under title XIX was required under Federal law; and
‘‘(C) whose eligibility for such coverage (at such time)
was not on a basis directly related to disability status,
including being blind.
‘‘(3) TARGETED LOW-INCOME FAMILY DEFINED.—In this sub-
section, the term ‘targeted low-income family’ means a family
(which may be an individual)—
‘‘(A) which includes a child or a pregnant woman;
and
‘‘(B) the income of which does not exceed 185 percent
of the poverty line applicable to a family of the size
involved.
‘‘(b) FOR LOW-INCOME ELDERLY.—
‘‘(1) SET-ASIDES.—Subject to subsection (f)—
‘‘(A) GENERAL SET-ASIDE.—A MediGrant plan shall pro-
vide that the amount of funds expended under the plan
for medical assistance for eligible low-income elderly
individuals for a fiscal year shall be not less than the
minimum low-income-elderly percentage specified in para-
graph (2)(A) of the total funds expended under the plan
for all medical assistance for the fiscal year.
‘‘(B) SET-ASIDE FOR MEDICARE PREMIUM ASSISTANCE.—
A MediGrant plan shall provide that the amount of funds
expended under the plan for medical assistance for medi-
care cost-sharing described in section 2171(c)(1) for a fiscal
year shall be not less than the minimum medicare premium
assistance percentage specified in paragraph (2)(B) of the
total funds expended under the plan for all medical assist-
ance for the fiscal year. The MediGrant plan shall provide
priority for making such assistance available for targeted
low-income elderly individuals (as defined in paragraph
(3)).
‘‘(2) MINIMUM PERCENTAGES.—
‘‘(A) FOR
GENERAL
SET-ASIDE.—The minimum low-
income-elderly percentage specified in this subparagraph
for a State is equal to 85 percent of the average percentage
of the expenditures under title XIX for medical assistance
H. R. 2491—191
in the State during Federal fiscal years 1992 through 1994
which was attributable to expenditures for medical assist-
ance for mandated benefits furnished to individuals—
‘‘(i) whose eligibility for such assistance was based
on their being 65 years of age or older; and
‘‘(ii)(I) whose coverage (at such time) under a State
plan under title XIX was required under Federal law,
or (II) who (at such time) were residents of a nursing
facility.
‘‘(B) FOR
SET-ASIDE
FOR
MEDICARE
PREMIUM
ASSIST-
ANCE.—The 
minimum 
medicare 
premium 
assistance
percentage specified in this subparagraph for a State is
equal to 90 percent of the average percentage of the
expenditures under title XIX for medical assistance in the
State during Federal fiscal years 1993 through 1995 which
was attributable to expenditures for medical assistance
for medicare premiums described in section 1905(p)(3)(A)
for individuals whose coverage (at such time) for such
assistance for such premiums under a State plan under
title XIX was required under Federal law.
‘‘(3) 
TARGETED
LOW-INCOME
ELDERLY
INDIVIDUAL
DEFINED.—In this subsection, the term ‘targeted low-income
elderly individual’ means an elderly individual whose family
income does not exceed 100 percent of the poverty line
applicable to a family of the size involved.
‘‘(c) FOR LOW-INCOME DISABLED PERSONS.—
‘‘(1) IN GENERAL.—Subject to subsection (f), a MediGrant
plan shall provide that the percentage of funds expended under
the plan for medical assistance for eligible low-income individ-
uals who are not elderly individuals and who are eligible for
such assistance on the basis of a disability, including being
blind, for a fiscal year is not less than the minimum low-
income-disabled percentage specified in paragraph (2) of the
total funds expended under the plan for medical assistance
for the fiscal year.
‘‘(2) MINIMUM
LOW-INCOME-DISABLED
PERCENTAGE.—The
minimum low-income-disabled percentage specified in this para-
graph for a State is equal to 85 percent of the average percent-
age of the expenditures under title XIX for medical assistance
in the State during Federal fiscal years 1992 through 1994
which was attributable to expenditures for medical assistance
for mandated benefits furnished to individuals—
‘‘(A) whose coverage (at such time) under a State plan
under title XIX was required under Federal law; and
‘‘(B) whose coverage (at such time) was on a basis
directly related to disability status, including being blind.
‘‘(d) FOR SERVICES PROVIDED AT FEDERALLY-QUALIFIED HEALTH
CENTERS AND RURAL HEALTH CLINICS.—Subject to subsection (f),
a MediGrant plan shall provide that the amount of funds expended
under the plan for medical assistance for services provided at rural
health clinics (as defined in section 1861(aa)(2)) and Federally-
qualified health centers (as defined in section 1861(aa)(4)), for
eligible low-income individuals for a fiscal year is not less than
85 percent of the average annual expenditures under title XIX
for medical assistance in the State during Federal fiscal years
1992 through 1994 which were attributable to expenditures for
H. R. 2491—192
medical assistance for rural health clinic services and Federally-
qualified health center services (as defined in section 1905(l)).
‘‘(e) USE OF RESIDUAL FUNDS.—
‘‘(1) IN GENERAL.—Subject to limitations on payment under
section 2123, any funds not required to be expended under
the set-asides under the previous subsections may be expended
under the MediGrant plan for any of the following:
‘‘(A) ADDITIONAL MEDICAL ASSISTANCE.—Medical assist-
ance for eligible low-income individuals (as defined in sec-
tion 2171(b)), in addition to any medical assistance made
available under a previous subsection.
‘‘(B) 
MEDICALLY-RELATED
SERVICES.—Payment 
for
medically-related services (as defined in paragraph (2)).
‘‘(C) ADMINISTRATION.—Payment for the administration
of the MediGrant plan.
‘‘(2) MEDICALLY-RELATED SERVICES DEFINED.—In this title,
the term ‘medically-related services’ means services reasonably
related to, or in direct support of, the State’s attainment of
one or more of the strategic objectives and performance goals
established under section 2101, but does not include items
and services included on the list under section 2171(a) (relating
to the definition of medical assistance).
‘‘(f) EXCEPTIONS TO MINIMUM SET-ASIDES.—
‘‘(1) ALTERNATIVE MINIMUM SET-ASIDES.—
‘‘(A) IN
GENERAL.—A State may provide in its
MediGrant plan (through an amendment to the plan) for
a lower percentage of expenditures than the minimum
percentages specified in any (or all) of paragraphs (2) of
subsections (a), (b), (c), and (d) if the State determines
(and certifies to the Secretary) that—
‘‘(i) the health care needs of the low-income popu-
lations described in paragraph (1) of the subsections
(a), (b), (c), or (d) who are eligible for medical assistance
under the plan during the previous fiscal year (or
medicare premium assistance needs described in sub-
section (b)(1)(B)) can be reasonably met without the
expenditure of the percentages otherwise required to
be expended,
‘‘(ii) the performance goals established under sec-
tion 2101 relating to the respective population can
reasonably be met with the expenditure of such lower
percentage of funds, and
‘‘(iii) in the case of subsection (d) with respect
to rural health clinic services and Federally-qualified
health center services, the health care needs of eligible
low-income individuals residing in medically under-
served rural areas can reasonably be met without the
level of expenditure for such services otherwise
required and the performance goals established under
section 2101 relating to such individuals can reason-
ably be met with such lower level of expenditures.
‘‘(B) PERIOD OF APPLICATION.—The determination and
certification under subparagraph (A) shall be made for
such period as a State may request, but may not be made
for a period of more than 3 consecutive Federal fiscal
years (beginning with the first fiscal year for which the
lower percentage is sought). A new determination and cer-
H. R. 2491—193
tification must be made under such clause for any subse-
quent period.
‘‘(C) NO
EXCEPTION
PERMITTED
BEFORE
FISCAL
YEAR
1998.—This paragraph may not apply with respect to the
percentages described in paragraphs (2) of subsections (a),
(b), and (c) for a fiscal year before fiscal year 1998.
‘‘(2) INDEPENDENT
CERTIFICATION
OF
COMPLIANCE
WITH
GOALS.—
‘‘(A) IN GENERAL.—For purposes of section 2151(c), a
MediGrant plan shall not be considered to be in substantial
violation of the requirements of this section if the amount
of actual State expenditures specified in any (or all) of
paragraphs (1) of subsections (a), (b), (c), and (d) is lower
than the minimum percentages specified in any (or all)
of paragraphs (2) of such subsections if an independent
actuary determines and certifies to the State that the
MediGrant plan is reasonably designed to result in a level
of expenditures which is consistent with the requirements
of such subsections.
‘‘(B) LIMIT ON VARIATION.—Subparagraph (A) shall not
apply in the case of a MediGrant plan for which the actual
State expenditures described in any (or all) of paragraphs
(1) of subsections (a), (b), (c), and (d) are less than 95
percent of the expenditures which would be made if the
amount of State expenditures specified in any (or all) of
such paragraphs was equal to the applicable minimum
percentage specified in any (or all) of paragraphs (2) of
such subsections.
‘‘(g) COMPUTATIONS.—States shall calculate the minimum
percentages under paragraphs (2) of subsections (a), (b), (c), and
(d) in a reasonable manner consistent with reports submitted to
the Secretary for the fiscal years involved and medical assistance
attributable to the exception provided under section 1903(v)(2) shall
not be considered to be expenditures for medical assistance.
‘‘(h) BENEFITS INCLUDED FOR PURPOSES OF COMPUTING SET-
ASIDES.—In this section, the term ‘mandated benefits’—
‘‘(1) means medical assistance for items and services
described in section 1905(a) to the extent such assistance with
respect to such items and services was required to be provided
under title XIX,
‘‘(2) includes medical assistance for medicare cost-sharing
only to the extent such assistance was required to be provided
under section 1902(a)(10)(E), and
‘‘(3) does not include medical assistance attributable to
disproportionate share payment adjustments described in sec-
tion 1923.
‘‘SEC. 2113. PREMIUMS AND COST-SHARING.
‘‘(a) IN GENERAL.—Subject to subsection (b), if any charges
are imposed under the MediGrant plan for cost-sharing (as defined
in subsection (d)), such cost-sharing shall be pursuant to a public
cost-sharing schedule.
‘‘(b) LIMITATION ON PREMIUM AND CERTAIN COST-SHARING FOR
LOW-INCOME
FAMILIES
INCLUDING
CHILDREN
OR
PREGNANT
WOMEN.—
H. R. 2491—194
‘‘(1) IN GENERAL.—In the case of a pregnant woman or
a child who is a member of a family described in paragraph
(2)—
‘‘(A) the plan shall not impose any premium, and
‘‘(B) the plan shall not (except as provided in subsection
(c)(1)) impose any cost-sharing with respect to primary
and preventive care services (as defined by the State) cov-
ered under the MediGrant plan for children or pregnant
women unless such cost-sharing is nominal in nature.
‘‘(2) FAMILY DESCRIBED.—A family described in this para-
graph is a family (which may be an individual) which—
‘‘(A) includes a child or a pregnant woman,
‘‘(B) is made eligible for medical assistance under the
MediGrant plan, and
‘‘(C) the income of which does not exceed 100 percent
of the poverty line applicable to a family of the size
involved.
‘‘(c) CERTAIN COST-SHARING PERMITTED.—Nothing in this sec-
tion shall be construed as preventing a MediGrant plan (consistent
with subsection (b))—
‘‘(1) from imposing cost-sharing to discourage the inappro-
priate use of emergency medical services delivered through
a hospital emergency room, a medical transportation provider,
or otherwise,
‘‘(2) from imposing premiums and cost-sharing differentially
in order to encourage the use of primary and preventive care
and discourage unnecessary or less economical care,
‘‘(3) from scaling cost-sharing in a manner that reflects
economic factors, employment status, and family size,
‘‘(4) from scaling cost-sharing based on the availability
to the individual or family of other health insurance coverage,
or
‘‘(5) from scaling cost-sharing based on participation in
employment training programs, drug or alcohol abuse treat-
ment, counseling programs, or other programs promoting per-
sonal responsibility.
‘‘(d) COST-SHARING DEFINED.—In this section, the term ‘cost-
sharing’ includes copayments, deductibles, coinsurance, and other
charges for the provision of health care services.
‘‘SEC. 2114. DESCRIPTION OF PROCESS FOR DEVELOPING CAPITATION
PAYMENT RATES.
‘‘(a) IN GENERAL.—If a State contracts (or intends to contract)
with a capitated health care organization (as defined in subsection
(c)(1)) under which the State makes a capitation payment (as
defined in subsection (c)(2)) to the organization for providing or
arranging for the provision of medical assistance under the
MediGrant plan for a group of services, including at least inpatient
hospital services and physicians’ services, the plan shall include
a description of the following:
‘‘(1) USE OF ACTUARIAL SCIENCE.—The extent and manner
in which the State uses actuarial science—
‘‘(A) to analyze and project health care expenditures
and utilization for individuals enrolled (or to be enrolled)
in such an organization under the MediGrant plan, and
H. R. 2491—195
‘‘(B) to develop capitation payment rates, including
a brief description of the general methodologies used by
actuaries.
‘‘(2) QUALIFICATIONS
OF
ORGANIZATIONS.—The general
qualifications, including any accreditation, State licensure or
certification, or provider network standards, required by the
State for participation of capitated health care organizations
under the MediGrant plan.
‘‘(3) DISSEMINATION
PROCESS.—The process used by the
State under subsection (b) and otherwise to disseminate, before
entering into contracts with capitated health care organizations,
actuarial information to such organizations on the historical
fee-for-service costs (or, if not available, other recent financial
data associated with providing covered services) and utilization
associated with individuals described in paragraph (1)(A).
‘‘(b) PUBLIC NOTICE AND COMMENT.—Under the MediGrant plan
the State shall provide a process for providing, before the beginning
of each contract year—
‘‘(1) public notice of—
‘‘(A) the amounts of the capitation payments (if any)
made under the plan for the contract year preceding the
public notice, and
‘‘(B)(i) the information described under subsection (a)(1)
with respect to capitation payments for the contract year
involved, or (ii) amounts of the capitation payments the
State expects to make for the contract year involved,
unless such information is designated as proprietary and not
subject to public disclosure under State law, and
‘‘(2) an opportunity for receiving public comment on the
amounts and information for which notice is provided under
paragraph (1).
‘‘(c) DEFINITIONS.—In this title:
‘‘(1) CAPITATED
HEALTH
CARE
ORGANIZATION.—The term
‘capitated health care organization’ means a health mainte-
nance organization or any other entity (including a health
insuring organization, managed care organization, prepaid
health plan, integrated service network, or similar entity) which
under State law is permitted to accept capitation payments
for providing (or arranging for the provision of) a group of
items and services including at least inpatient hospital services
and physicians’ services.
‘‘(2) CAPITATION PAYMENT.—The term ‘capitation payment’
means, with respect to payment, payment on a prepaid capita-
tion basis or any other risk basis to an entity for the entity’s
provision (or arranging for the provision) of a group of items
and services, including at least inpatient hospital services and
physicians’ services.
‘‘SEC. 2115. PREVENTING SPOUSAL IMPOVERISHMENT.
‘‘(a) SPECIAL TREATMENT FOR INSTITUTIONALIZED SPOUSES.—
‘‘(1) SUPERSEDES OTHER PROVISIONS.—In determining the
eligibility for medical assistance of an institutionalized spouse
(as defined in subsection (h)(1)), the provisions of this section
supersede any other provision of this title which is inconsistent
with them.
H. R. 2491—196
‘‘(2) DOES NOT AFFECT CERTAIN DETERMINATIONS.—Except
as this section specifically provides, this section does not apply
to—
‘‘(A) the determination of what constitutes income or
resources, or
‘‘(B) the methodology and standards for determining
and evaluating income and resources.
‘‘(3) NO
APPLICATION
IN
COMMONWEALTHS
AND
TERRI-
TORIES.—This section shall only apply to a State that is one
of the 50 States or the District of Columbia.
‘‘(b) RULES FOR TREATMENT OF INCOME.—
‘‘(1) SEPARATE TREATMENT OF INCOME.—During any month
in which an institutionalized spouse is in the institution, except
as provided in paragraph (2), no income of the community
spouse shall be deemed available to the institutionalized spouse.
‘‘(2) ATTRIBUTION OF INCOME.—In determining the income
of an institutionalized spouse or community spouse for purposes
of the post-eligibility income determination described in sub-
section (d), except as otherwise provided in this section and
regardless of any State laws relating to community property
or the division of marital property, the following rules apply:
‘‘(A) NON-TRUST PROPERTY.—Subject to subparagraphs
(C) and (D), in the case of income not from a trust, unless
the instrument providing the income otherwise specifically
provides—
‘‘(i) if payment of income is made solely in the
name of the institutionalized spouse or the community
spouse, the income shall be considered available only
to that respective spouse,
‘‘(ii) if payment of income is made in the names
of the institutionalized spouse and the community
spouse, 1⁄2 of the income shall be considered available
to each of them, and
‘‘(iii) if payment of income is made in the names
of the institutionalized spouse or the community
spouse, or both, and to another person or persons,
the income shall be considered available to each spouse
in proportion to the spouse’s interest (or, if payment
is made with respect to both spouses and no such
interest is specified, 1⁄2 of the joint interest shall be
considered available to each spouse).
‘‘(B) TRUST PROPERTY.—In the case of a trust—
‘‘(i) except as provided in clause (ii), income shall
be attributed in accordance with the provisions of this
title; and
‘‘(ii) income shall be considered available to each
spouse as provided in the trust, or, in the absence
of a specific provision in the trust—
‘‘(I) if payment of income is made solely to
the institutionalized spouse or the community
spouse, the income shall be considered available
only to that respective spouse,
‘‘(II) if payment of income is made to both
the institutionalized spouse and the community
spouse, 1⁄2 of the income shall be considered avail-
able to each of them, and
H. R. 2491—197
‘‘(III) if payment of income is made to the
institutionalized spouse or the community spouse,
or both, and to another person or persons, the
income shall be considered available to each spouse
in proportion to the spouse’s interest (or, if pay-
ment is made with respect to both spouses and
no such interest is specified, 1⁄2 of the joint interest
shall be considered available to each spouse).
‘‘(C) PROPERTY WITH NO INSTRUMENT.—In the case of
income not from a trust in which there is no instrument
establishing ownership, subject to subparagraph (D), 1⁄2
of the income shall be considered to be available to the
institutionalized spouse and 1⁄2 to the community spouse.
‘‘(D) REBUTTING
OWNERSHIP.—The rules of subpara-
graphs (A) and (C) are superseded to the extent that an
institutionalized spouse can establish, by a preponderance
of the evidence, that the ownership interests in income
are other than as provided under such subparagraphs.
‘‘(c) RULES FOR TREATMENT OF RESOURCES.—
‘‘(1) COMPUTATION OF SPOUSAL SHARE AT TIME OF INSTITU-
TIONALIZATION.—
‘‘(A) TOTAL
JOINT
RESOURCES.—There shall be com-
puted (as of the beginning of the first continuous period
of institutionalization of the institutionalized spouse)—
‘‘(i) the total value of the resources to the extent
either the institutionalized spouse or the community
spouse has an ownership interest, and
‘‘(ii) a spousal share which is equal to 1⁄2 of such
total value.
‘‘(B) ASSESSMENT.—At the request of an institutional-
ized spouse or community spouse, at the beginning of the
first continuous period of institutionalization of the institu-
tionalized spouse and upon the receipt of relevant docu-
mentation of resources, the State shall promptly assess
and document the total value described in subparagraph
(A)(i) and shall provide a copy of such assessment and
documentation to each spouse and shall retain a copy of
the assessment for use under this section. If the request
is not part of an application for medical assistance under
this title, the State may, at its option as a condition of
providing the assessment, require payment of a fee not
exceeding the reasonable expenses of providing and docu-
menting the assessment. At the time of providing the copy
of the assessment, the State shall include a notice indicat-
ing that the spouse will have a right to a fair hearing
under subsection (e)(2).
‘‘(2) ATTRIBUTION OF RESOURCES AT TIME OF INITIAL ELIGI-
BILITY
DETERMINATION.—In determining the resources of an
institutionalized spouse at the time of application for medical
assistance under this title, regardless of any State laws relating
to community property or the division of marital property—
‘‘(A) except as provided in subparagraph (B), all the
resources held by either the institutionalized spouse,
community spouse, or both, shall be considered to be avail-
able to the institutionalized spouse, and
‘‘(B) resources shall be considered to be available to
an institutionalized spouse, but only to the extent that
H. R. 2491—198
the amount of such resources exceeds the amount computed
under subsection (f)(2)(A) (as of the time of application
for medical assistance).
‘‘(3) ASSIGNMENT OF SUPPORT RIGHTS.—The institutional-
ized spouse shall not be ineligible by reason of resources deter-
mined under paragraph (2) to be available for the cost of
care where—
‘‘(A) the institutionalized spouse has assigned to the
State any rights to support from the community spouse,
‘‘(B) the institutionalized spouse lacks the ability to
execute an assignment due to physical or mental impair-
ment but the State has the right to bring a support proceed-
ing against a community spouse without such assignment,
or
‘‘(C) the State determines that denial of eligibility
would work an undue hardship.
‘‘(4) SEPARATE TREATMENT OF RESOURCES AFTER ELIGIBILITY
FOR MEDICAL ASSISTANCE ESTABLISHED.—During the continuous
period in which an institutionalized spouse is in an institution
and after the month in which an institutionalized spouse is
determined to be eligible for medical assistance under this
title, no resources of the community spouse shall be deemed
available to the institutionalized spouse.
‘‘(5) RESOURCES
DEFINED.—In this section, the term
‘resources’ does not include—
‘‘(A) resources excluded under subsection (a) or (d)
of section 1613, and
‘‘(B) resources that would be excluded under section
1613(a)(2)(A) but for the limitation on total value described
in such section.
‘‘(d) PROTECTING INCOME FOR COMMUNITY SPOUSE.—
‘‘(1) ALLOWANCES TO BE OFFSET FROM INCOME OF INSTITU-
TIONALIZED SPOUSE.—After an institutionalized spouse is deter-
mined or redetermined to be eligible for medical assistance,
in determining the amount of the spouse’s income that is to
be applied monthly to payment for the costs of care in the
institution, there shall be deducted from the spouse’s monthly
income the following amounts in the following order:
‘‘(A) A personal needs allowance (described in para-
graph (2)(A)), in an amount not less than the amount
specified in paragraph (2)(C).
‘‘(B) A community spouse monthly income allowance
(as defined in paragraph (3)), but only to the extent income
of the institutionalized spouse is made available to (or
for the benefit of) the community spouse.
‘‘(C) A family allowance, for each family member, equal
to at least 1⁄3 of the amount by which the amount described
in paragraph (4)(A)(i) exceeds the amount of the monthly
income of that family member.
‘‘(D) Amounts for incurred expenses for medical or
remedial care for the institutionalized spouse as provided
under paragraph (6).
In subparagraph (C), the term ‘family member’ only includes
minor or dependent children, dependent parents, or dependent
siblings of the institutionalized or community spouse who are
residing with the community spouse.
‘‘(2) PERSONAL NEEDS ALLOWANCE.—
H. R. 2491—199
‘‘(A) IN GENERAL.—The MediGrant plan must provide
that, in the case of an institutionalized individual or couple
described in subparagraph (B), in determining the amount
of the individual’s or couple’s income to be applied monthly
to payment for the cost of care in an institution, there
shall be deducted from the monthly income (in addition
to other allowances otherwise provided under the plan)
a monthly personal needs allowance—
‘‘(i) which is reasonable in amount for clothing
and other personal needs of the individual (or couple)
while in an institution, and
‘‘(ii) which is not less (and may be greater) than
the minimum monthly personal needs allowance
described in subparagraph (C).
‘‘(B) 
INSTITUTIONALIZED
INDIVIDUAL
OR
COUPLE
DEFINED.—In this paragraph, the term ‘institutionalized
individual or couple’ means an individual or married cou-
ple—
‘‘(i) who is an inpatient (or who are inpatients)
in a medical institution or nursing facility for which
payments are made under this title throughout a
month, and
‘‘(ii) who is or are determined to be eligible for
medical assistance under the State MediGrant plan.
‘‘(C) MINIMUM
ALLOWANCE.—The minimum monthly
personal needs allowance described in this subparagraph
is $40 for an institutionalized individual and $80 for an
institutionalized couple (if both are aged, blind, or disabled,
and their incomes are considered available to each other
in determining eligibility).
‘‘(3) COMMUNITY
SPOUSE
MONTHLY
INCOME
ALLOWANCE
DEFINED.—
‘‘(A) IN GENERAL.—In this section (except as provided
in subparagraph (B)), the community spouse monthly
income allowance for a community spouse is an amount
by which—
‘‘(i) except as provided in subsection (e), the mini-
mum monthly maintenance needs allowance (estab-
lished under and in accordance with paragraph (4))
for the spouse, exceeds
‘‘(ii) the amount of monthly income otherwise avail-
able to the community spouse (determined without
regard to such an allowance).
‘‘(B) COURT ORDERED SUPPORT.—If a court has entered
an order against an institutionalized spouse for monthly
income for the support of the community spouse, the
community spouse monthly income allowance for the spouse
shall be not less than the amount of the monthly income
so ordered.
‘‘(4) ESTABLISHMENT OF MINIMUM MONTHLY MAINTENANCE
NEEDS ALLOWANCE.—
‘‘(A) IN GENERAL.—Each State shall establish a mini-
mum monthly maintenance needs allowance for each
community spouse which, subject to subparagraph (B), is
equal to or exceeds—
‘‘(i) 150 percent of 1⁄12 of the poverty line applicable
to a family unit of 2 members, plus
H. R. 2491—200
‘‘(ii) an excess shelter allowance (as defined in
paragraph (4)).
A revision of the poverty line referred to in clause (i)
shall apply to medical assistance furnished during and
after the second calendar quarter that begins after the
date of publication of the revision.
‘‘(B) CAP ON MINIMUM MONTHLY MAINTENANCE NEEDS
ALLOWANCE.—The minimum monthly maintenance needs
allowance established under subparagraph (A) may not
exceed $1,500 (subject to adjustment under subsections
(e) and (g)).
‘‘(5) EXCESS SHELTER ALLOWANCE DEFINED.—In paragraph
(4)(A)(ii), the term ‘excess shelter allowance’ means, for a
community spouse, the amount by which the sum of—
‘‘(A) the spouse’s expenses for rent or mortgage pay-
ment (including principal and interest), taxes and insur-
ance and, in the case of a condominium or cooperative,
required maintenance charge, for the community spouse’s
principal residence, and
‘‘(B) the standard utility allowance (used by the State
under section 5(e) of the Food Stamp Act of 1977) or,
if the State does not use such an allowance, the spouse’s
actual utility expenses,
exceeds 30 percent of the amount described in paragraph
(4)(A)(i), except that, in the case of a condominium or coopera-
tive, for which a maintenance charge is included under subpara-
graph (A), any allowance under subparagraph (B) shall be
reduced to the extent the maintenance charge includes utility
expenses.
‘‘(6) TREATMENT OF INCURRED EXPENSES.—With respect to
the post-eligibility treatment of income under this section, there
shall be disregarded reparation payments made by the Federal
Republic of Germany and, there shall be taken into account
amounts for incurred expenses for medical or remedial care
that are not subject to payment by a third party, including—
‘‘(A) medicare and other health insurance premiums,
deductibles, or coinsurance, and
‘‘(B) necessary medical or remedial care recognized
under State law but not covered under the State MediGrant
plan under this title, subject to reasonable limits the State
may establish on the amount of these expenses.
‘‘(e) NOTICE AND HEARING.—
‘‘(1) NOTICE.—Upon—
‘‘(A) a determination of eligibility for medical assistance
of an institutionalized spouse, or
‘‘(B) a request by either the institutionalized spouse,
or the community spouse, or a representative acting on
behalf of either spouse,
each State shall notify both spouses (in the case described
in subparagraph (A)) or the spouse making the request (in
the case described in subparagraph (B)) of the amount of the
community spouse monthly income allowance (described in sub-
section (d)(1)(B)), of the amount of any family allowances
(described in subsection (d)(1)(C)), of the method for computing
the amount of the community spouse resources allowance per-
mitted under subsection (f), and of the spouse’s right to a
hearing under the MediGrant plan respecting ownership or
H. R. 2491—201
availability of income or resources, and the determination of
the community spouse monthly income or resource allowance.
‘‘(2) RESULTS OF HEARING.—
‘‘(A) REVISION
OF
MINIMUM
MONTHLY
MAINTENANCE
NEEDS ALLOWANCE.—If either such spouse establishes in
a hearing under this subsection that the community spouse
needs income, above the level otherwise provided by the
minimum monthly maintenance needs allowance, due to
exceptional circumstances resulting in significant financial
duress, there shall be substituted, for the minimum
monthly maintenance needs allowance in subsection
(d)(2)(A), an amount adequate to provide such additional
income as is necessary.
‘‘(B) REVISION OF COMMUNITY SPOUSE RESOURCE ALLOW-
ANCE.—If either such spouse establishes in such a hearing
that the community spouse resource allowance (in relation
to the amount of income generated by such an allowance)
is inadequate to raise the community spouse’s income to
the minimum monthly maintenance needs allowance, there
shall be substituted, for the community spouse resource
allowance under subsection (f)(2), an amount adequate to
provide such a minimum monthly maintenance needs
allowance.
‘‘(f) PERMITTING
TRANSFER
OF
RESOURCES
TO
COMMUNITY
SPOUSE.—
‘‘(1) IN GENERAL.—An institutionalized spouse may, without
regard to any other provision of the MediGrant plan to the
contrary, transfer an amount equal to the community spouse
resource allowance (as defined in paragraph (2)), but only to
the extent the resources of the institutionalized spouse are
transferred to, or for the sole benefit of, the community spouse.
The transfer under the preceding sentence shall be made as
soon as practicable after the date of the initial determination
of eligibility, taking into account such time as may be necessary
to obtain a court order under paragraph (3).
‘‘(2) COMMUNITY SPOUSE RESOURCE ALLOWANCE DEFINED.—
In paragraph (1), the ‘community spouse resource allowance’
for a community spouse is an amount (if any) by which—
‘‘(A) the greatest of—
‘‘(i) $12,000 (subject to adjustment under sub-
section (g)), or, if greater (but not to exceed the amount
specified in clause (ii)(II)) an amount specified under
the State MediGrant plan,
‘‘(ii) the lesser of (I) the spousal share computed
under subsection (c)(1), or (II) $60,000 (subject to
adjustment under subsection (g)), or
‘‘(iii) the amount established under subsection
(e)(2);
exceeds
‘‘(B) the amount of the resources otherwise available
to the community spouse (determined without regard to
such an allowance).
‘‘(g) INDEXING DOLLAR AMOUNTS.—For services furnished dur-
ing a calendar year after 1989, the dollar amounts specified in
subsections (d)(3)(C), (f)(2)(A)(i), and (f)(2)(A)(ii)(II) shall be
increased by the same percentage as the percentage increase in
the consumer price index for all urban consumers (all items; U.S.
H. R. 2491—202
city average) between September 1988 and the September before
the calendar year involved.
‘‘(h) DEFINITIONS.—In this section:
‘‘(1) INSTITUTIONALIZED SPOUSE.—The term ‘institutional-
ized spouse’ means an individual—
‘‘(A)(i) who is in a medical institution or nursing facil-
ity, or
‘‘(ii) at the option of the State (I) who would be eligible
under the MediGrant plan under this title if such individual
was in a medical institution, (II) with respect to whom
there has been a determination that but for the provision
of home or community-based services such individual would
require the level of care provided in a hospital, nursing
facility or intermediate care facility for the mentally
retarded the cost of which could be reimbursed under the
plan, and (III) who will receive home or community-based
services pursuant the plan; and
‘‘(B) is married to a spouse who is not in a medical
institution or nursing facility;
but does not include any such individual who is not likely
to meet the requirements of subparagraph (A) for at least
30 consecutive days.
‘‘(2) COMMUNITY
SPOUSE.—The term ‘community spouse’
means the spouse of an institutionalized spouse.
‘‘SEC. 2116. STATE FLEXIBILITY.
‘‘(a) STATE FLEXIBILITY IN BENEFITS, PROVIDER PAYMENTS, GEO-
GRAPHICAL COVERAGE AREA, AND SELECTION OF PROVIDERS.—Noth-
ing in this title (other than subsections (c) and (d) of section 2111)
shall be construed as requiring a State—
‘‘(1) to provide medical assistance for any particular items
or services,
‘‘(2) to provide for any payments with respect to any specific
health care providers or any level of payments for any services,
‘‘(3) to provide for the same medical assistance in all geo-
graphical areas or political subdivisions of the State, so long
as medical assistance is made available in all such areas or
subdivisions,
‘‘(4) to provide that the medical assistance made available
to any individual eligible for medical assistance must not be
less in amount, duration, or scope than the medical assistance
made available to any other such individual, or
‘‘(5) to provide that any individual eligible for medical
assistance with respect to an item or service may choose to
obtain such assistance from any institution, agency, or person
qualified to provide the item or service.
‘‘(b) STATE FLEXIBILITY WITH RESPECT TO MANAGED CARE.—
Nothing in this title shall be construed—
‘‘(1) to limit a State’s ability to contract with, on a capitated
basis or otherwise, health care plans or individual health care
providers for the provision or arrangement of medical assist-
ance,
‘‘(2) to limit a State’s ability to contract with health care
plans or other entities for case management services or for
coordination of medical assistance, or
H. R. 2491—203
‘‘(3) to restrict a State from establishing capitation rates
on the basis of competition among health care plans or negotia-
tions between the State and one or more health care plans.
‘‘PART C—PAYMENTS TO STATES
‘‘SEC. 2121. ALLOTMENT OF FUNDS AMONG STATES.
‘‘(a) ALLOTMENTS.—
‘‘(1) COMPUTATION.—The Secretary shall provide for the
computation of State obligation and outlay allotments in accord-
ance with this section for each fiscal year beginning with fiscal
year 1996.
‘‘(2) LIMITATION ON OBLIGATIONS.—
‘‘(A) IN GENERAL.—Subject to subparagraph (B), the
Secretary shall not enter into obligations with any State
under this title for a fiscal year in excess of the obligation
allotment for that State for the fiscal year under paragraph
(4). The sum of such obligation allotments for all States
in any fiscal year (excluding amounts carried over under
subparagraph (B) and excluding changes in allotments
effected under paragraph (4)(D)) shall not exceed the aggre-
gate limit on new obligation authority specified in para-
graph (3) for that fiscal year.
‘‘(B) ADJUSTMENTS.—
‘‘(i) CARRYOVER OF ALLOTMENT PERMITTED.—If the
amount of obligations entered into under this part
with a State for quarters in a fiscal year is less than
the amount of the obligation allotment under this sec-
tion to the State for the fiscal year, the amount of
the difference shall be added to the amount of the
State obligation allotment otherwise provided under
this section for the succeeding fiscal year. This clause
shall be applied separately with respect to the portion
of the obligation allotment that is attributable to the
supplemental outlay allotment under subsection (f).
‘‘(ii) REDUCTION FOR POST-ENACTMENT NEW OBLIGA-
TIONS
UNDER
TITLE
XIX
IN
FISCAL
YEAR
1996.—The
amount of the obligation allotment otherwise provided
under this section for fiscal year 1996 for a State
shall be reduced by the amount of the obligations
entered into with respect to the State under section
1903(a) after the date of the enactment of this title.
‘‘(C) NO
EFFECT
ON
PRIOR
YEAR
OBLIGATIONS.—
Subparagraph (A) shall not apply to or affect obligations
for a fiscal year prior to fiscal year 1996.
‘‘(D) OBLIGATION.—For purposes of this section, the
Secretary’s establishment of an estimate under section
2123(b) of the amount a State is entitled to receive for
a quarter (taking into account any adjustments described
in such subsection) shall be treated as the obligation of
such amount for the State as of the first day of the quarter.
‘‘(3) AGGREGATE LIMIT ON NEW OBLIGATION AUTHORITY.—
‘‘(A) IN GENERAL.—For purposes of this subsection, sub-
ject to subparagraph (C), the ‘aggregate limit on new obliga-
tion authority’, for a fiscal year, is the pool amount under
subsection (b) for the fiscal year, divided by the payout
H. R. 2491—204
adjustment factor (described in subparagraph (B)) for the
fiscal year.
‘‘(B) PAYOUT
ADJUSTMENT
FACTOR.—For purposes of
this subsection, the ‘payout adjustment factor’—
‘‘(i) for fiscal year 1996 is 0.950,
‘‘(ii) for fiscal year 1997 is 0.986, and
‘‘(iii) for a subsequent fiscal year is 0.998.
‘‘(C) TRANSITIONAL ADJUSTMENT FOR PRE-ENACTMENT-
OBLIGATION OUTLAYS.—In order to account for pre-enact-
ment-obligation outlays described in paragraph (4)(C)(iv),
in determining the aggregate limit on new obligation
authority under subparagraph (A) for fiscal year 1996,
the pool amount for such fiscal year is equal to—
‘‘(i) the pool amount for such year, reduced by
‘‘(ii) $24,624,000,000.
‘‘(4) OBLIGATION ALLOTMENTS.—
‘‘(A) GENERAL RULE FOR 50 STATES AND THE DISTRICT
OF COLUMBIA.—Except as provided in this paragraph, the
‘obligation allotment’ for any of the 50 States or the District
of Columbia for a fiscal year (beginning with fiscal year
1997) is an amount that bears the same ratio to the outlay
allotment under subsection (c)(2) for such State or District
(not taking into account any adjustment due to an election
under paragraph (4)) for the fiscal year as the ratio of—
‘‘(i) the aggregate limit on new obligation authority
(less the total of the obligation allotments under
subparagraph (B)) for the fiscal year, to
‘‘(ii) the pool amount (less the sum of the outlay
allotments for the territories) for such fiscal year.
‘‘(B) TERRITORIES.—The obligation allotment for each
of the Commonwealths and territories for a fiscal year
is the outlay allotment for such Commonwealth or Territory
(as determined under subsection (c)(5)) for the fiscal year
divided by the payout adjustment factor for the fiscal year
(as defined in paragraph (3)(B)).
‘‘(C) TRANSITIONAL RULE FOR FISCAL YEAR 1996.—
‘‘(i) IN GENERAL.—The obligation amount for fiscal
year 1996 for any State (including the District of
Columbia, a Commonwealth, or Territory) is deter-
mined according to the formula: A=(B¥C)/D, where—
‘‘(I) ‘A’ is the obligation amount for such State,
‘‘(II) ‘B’ is the outlay allotment of such State
for fiscal year 1996, as determined under sub-
section (c),
‘‘(III) ‘C’ is the amount of the pre-enactment-
obligation outlays (as established for such State
under clause (ii)), and
‘‘(IV) ‘D’ is the payout adjustment factor for
such fiscal year (as defined in paragraph (3)(B)).
‘‘(ii) 
PRE-ENACTMENT-OBLIGATION
OUTLAY
AMOUNTS.—Within 30 days after the date of the enact-
ment of this title, the Secretary shall estimate (based
on the best data available) and publish in the Federal
Register the amount of the pre-enactment-obligation
outlays (as defined in clause (iv)) for each State (includ-
ing the District of Columbia, Commonwealths, and
H. R. 2491—205
Territories). The total of such amounts shall equal
the dollar amount specified in paragraph (3)(C)(ii).
‘‘(iii) AGREEMENT.—The submission of a MediGrant
plan by a State under this title is deemed to constitute
the State’s acceptance of the obligation allotment
limitations under this subsection, including the for-
mula for computing the amount of such obligation allot-
ment.
‘‘(iv) 
PRE-ENACTMENT-OBLIGATION
OUTLAYS
DEFINED.—In this subsection, the term ‘pre-enactment-
obligation outlays’ means, for a State, the outlays of
the Federal Government that result from obligations
that have been incurred under title XIX with respect
to the State before the date of the enactment of this
title, but for which payments to States have not been
made as of such date of enactment.
‘‘(D) ADJUSTMENT
TO
REFLECT
ADOPTION
OF
ALTER-
NATIVE GROWTH FORMULA.—Any State that has elected an
alternative growth formula under subsection (c)(4) which
increases or decreases the dollar amount of an outlay allot-
ment for a fiscal year is deemed to have increased or
decreased, respectively, its obligation amount for such fiscal
year by the amount of such increase or decrease.
‘‘(E) TRANSITIONAL CORRECTION FOR FISCAL YEAR 1997.—
‘‘(i) IN GENERAL.—The obligation amount for fiscal
year 1997 for any State described in clause (ii) shall
be increased by 90 percent of the amount by which
90 percent of the amount described in clause (ii)(I)
exceeds the amount described in clause (ii)(II), divided
by the payout adjustment factor specified in paragraph
(3)(B) for fiscal year 1996. The increase under this
clause shall be paid to a State in the first quarter
of fiscal year 1997.
‘‘(ii) STATES DESCRIBED.—A State described in this
clause is a State for which—
‘‘(I) the amount of the pre-enactment-obliga-
tion outlays (as established for such State under
subparagraph (C)(ii)), exceeded
‘‘(II) the outlays of the Federal Government
during fiscal year 1996 that are attributable to
obligations that were incurred under title XIX with
respect to the State before the date of the enact-
ment of this title, but for which payments to States
had not been made as of such date of enactment,
by at least 10 percent of the amount described in
subclause (I).
‘‘(b) POOL OF AVAILABLE FUNDS.—
‘‘(1) IN GENERAL.—For purposes of this section, the ‘pool
amount’ under this subsection for—
‘‘(A) fiscal year 1996 is $96,386,037,894,
‘‘(B) fiscal year 1997 is $103,233,603,164,
‘‘(C) fiscal year 1998 is $107,907,625,827,
‘‘(D) fiscal year 1999 is $112,644,040,408,
‘‘(E) fiscal year 2000 is $117,359,685,046,
‘‘(F) fiscal year 2001 is $122,284,072,525,
‘‘(G) fiscal year 2002 is $127,418,239,580, and
H. R. 2491—206
‘‘(H) each subsequent fiscal year is the pool amount
under this paragraph for the previous fiscal year increased
by the lesser of 4.2 percent or the annual percentage
increase in the gross domestic product for the 12-month
period ending in June before the beginning of that subse-
quent fiscal year.
‘‘(2) NATIONAL MEDIGRANT GROWTH PERCENTAGE.—For pur-
poses of this section for a fiscal year (beginning with fiscal
year 1997), the ‘national MediGrant growth percentage’ is the
percentage by which—
‘‘(A) the pool amount under paragraph (1) for the fiscal
year, exceeds
‘‘(B) such pool amount for the previous fiscal year.
‘‘(c) STATE OUTLAY ALLOTMENTS.—
‘‘(1) FISCAL YEAR 1996.—
‘‘(A) IN GENERAL.—For each of the 50 States and the
District of Columbia, the amount of the State outlay allot-
ment under this subsection for fiscal year 1996 is, subject
to paragraph (4), determined in accordance with the follow-
ing table:
‘‘State or District:
Outlay allotment (in dollars):
Alabama ..............................................
1,517,652,207
Alaska .................................................
204,933,213
Arizona ................................................
1,370,781,297
Arkansas .............................................
1,011,457,933
California ............................................
8,946,838,461
Colorado ..............................................
757,492,679
Connecticut .........................................
1,463,011,635
Delaware .............................................
212,327,763
District of Columbia ...........................
501,412,091
Florida .................................................
3,715,624,180
Georgia ................................................
2,426,320,602
Hawaii .................................................
323,124,375
Idaho ...................................................
278,329,686
Illinois .................................................
3,467,274,342
Indiana ................................................
1,952,467,267
Iowa .....................................................
835,235,895
Kansas ................................................
713,700,869
Kentucky .............................................
1,577,828,832
Louisiana ............................................
2,622,000,000
Maine ..................................................
694,220,790
Maryland ............................................
1,369,699,847
Massachusetts ....................................
2,870,346,862
Michigan .............................................
3,465,182,886
Minnesota ...........................................
1,793,776,356
Mississippi ..........................................
1,261,781,330
Missouri ..............................................
1,849,248,945
Montana ..............................................
312,212,472
Nebraska .............................................
463,900,417
Nevada ................................................
257,896,453
New Hampshire .................................
360,000,000
New Jersey .........................................
2,854,621,241
New Mexico ........................................
634,756,945
New York ............................................
12,901,793,038
North Carolina ...................................
2,587,883,809
North Dakota ......................................
241,168,563
Ohio .....................................................
4,034,049,690
Oklahoma ............................................
911,198,775
Oregon .................................................
1,088,670,440
Pennsylvania ......................................
4,454,423,400
Rhode Island .......................................
545,686,262
South Carolina ...................................
1,621,021,815
South Dakota ......................................
262,804,959
Tennessee ...........................................
2,519,934,251
Texas ...................................................
6,351,909,343
Utah ....................................................
484,274,254
H. R. 2491—207
‘‘State or District:
Outlay allotment (in dollars):
Vermont ..............................................
248,158,729
Virginia ...............................................
1,144,962,509
Washington .........................................
1,763,460,996
West Virginia .....................................
1,156,813,157
Wisconsin ............................................
1,709,500,642
Wyoming .............................................
132,925,390.
‘‘(2) COMPUTATION OF STATE OUTLAY ALLOTMENTS.—
‘‘(A) IN GENERAL.—Subject to the succeeding provisions
of this subsection, the amount of the State outlay allotment
under this subsection for one of the 50 States and the
District of Columbia for a fiscal year (beginning with fiscal
year 1997) is equal to the product of—
‘‘(i) the needs-based amount determined under
subparagraph (B) for such State or District for the
fiscal year, and
‘‘(ii) the scalar factor described in subparagraph
(C) for the fiscal year.
‘‘(B) NEEDS-BASED AMOUNT.—The needs-based amount
under this subparagraph for a State or the District of
Columbia for a fiscal year is equal to the product of—
‘‘(i) the State’s or District’s aggregate expenditure
need for the fiscal year (as determined under sub-
section (d)), and
‘‘(ii) the State’s or District’s old Federal medical
assistance percentage (as defined in section 2122(d))
for the fiscal year (or, in the case of fiscal year 1997,
the Federal medical assistance percentage determined
under section 1905(b) for fiscal year 1996).
‘‘(C) SCALAR
FACTOR.—The scalar factor under this
subparagraph for a fiscal year is such proportion so that,
when it is applied under subparagraph (A)(ii) for the fiscal
year (taking into account the floors and ceilings under
paragraph (3)), the total of the outlay allotments under
this subsection for all the 50 States and the District of
Columbia for the fiscal year (not taking into account any
increase in an outlay allotment for a fiscal year attributable
to the election of an alternative growth formula under
paragraph (4)) is equal to the amount by which (i) the
pool amount for the fiscal year (as determined under sub-
section (b)), exceeds (ii) the sum of the outlay allotments
provided under paragraph (5) for the Commonwealths and
Territories for the fiscal year.
‘‘(3) FLOORS AND CEILINGS.—
‘‘(A) FLOORS.—Subject to the ceiling established under
subparagraph (B), in no case shall the amount of the State
outlay allotment under paragraph (2) for a fiscal year be
less than the greatest of the following:
‘‘(i) IN GENERAL.—Beginning with fiscal year 1998,
0.24 percent of the pool amount for the fiscal year.
‘‘(ii) FLOOR
BASED
ON
PREVIOUS
YEAR’S
OUTLAY
ALLOTMENT.—Subject to clause (iii)—
‘‘(I) FISCAL YEAR 1997.—For fiscal year 1997,
103.5 percent of the amount of the State outlay
allotment under this subsection for fiscal year
1996.
‘‘(II) FISCAL YEAR 1998.—For fiscal year 1998,
103 percent of the amount of the State outlay