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process, intermediate or final, in law or equity, may
be issued against property of the Office.
‘‘(5) SUBSTITUTION
OF
OFFICE
AS
PARTY.—
The Office shall be substituted as defendant in any
civil action or proceeding against an officer or em-
ployee of the Office, if the Office determines that the
officer or employee was acting within the scope of
his or her employment with the Office. If the Office
refuses to certify scope of employment, the officer or
employee may at any time before trial petition the
court to find and certify that the officer or employee
was acting within the scope of his or her employ-
ment. Upon certification by the court, the Office
shall be substituted as the party defendant. A copy
of the petition shall be served upon the Office. In
any such civil action or proceeding to which para-
graph (3)(A) applies, the provisions of section
1346(b) and chapter 171 of title 28 shall apply in
lieu of this paragraph.
‘‘(b) RELATIONSHIP WITH JUSTICE DEPARTMENT.—
‘‘(1) EXERCISE BY OFFICE OF ATTORNEY GEN-
ERAL’S AUTHORITIES.—Except as provided in this
section, with respect to any action or proceeding in
which the Office is a party or an officer or employee
thereof is a party in his or her official capacity, the
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Office, officer, or employee may exercise, without
prior authorization from the Attorney General, the
authorities and duties that otherwise would be exer-
cised by the Attorney General on behalf of the Of-
fice, officer, or employee under title 28 and other
laws.
‘‘(2) APPEARANCES BY ATTORNEY GENERAL.—
Notwithstanding paragraph (1), at any time the At-
torney General may, in any action or proceeding de-
scribed in paragraph (1), file an appearance on be-
half of the Office or the officer or employee involved,
without the consent of the Office or the officer or
employee. Upon such filing, the Attorney General
shall represent the Office or such officer or employee
with exclusive authority in the conduct, settlement,
or compromise of that action or proceeding.
‘‘(3) CONSULTATIONS
WITH
AND
ASSISTANCE
BY ATTORNEY GENERAL.—The Office may consult
with the Attorney General concerning any legal mat-
ter, and the Attorney General shall provide advice
and assistance to the Office, including representing
the Office in litigation, if requested by the Office.
‘‘(4) 
REPRESENTATION
BEFORE
SUPREME
COURT.—The Attorney General shall represent the
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Office in all cases before the United States Supreme
Court.
‘‘(5) QUALIFICATIONS OF ATTORNEYS.—An at-
torney admitted to practice to the bar of the highest
court of at least one State in the United States or
the District of Columbia and employed by the Office
may represent the Office in any legal proceeding in
which the Office or an officer or employee of the Of-
fice is a party or interested, regardless of whether
the attorney is a resident of the jurisdiction in which
the proceeding is held and notwithstanding any
other prerequisites of qualification or appearance re-
quired by the court or administrative body before
which the proceeding is conducted.’’.
SEC. 17419. ANNUAL REPORT OF COMMISSIONER.
Section 15 of title 35, United States Code, as redesig-
nated by section 17418 of this Act, is amended to read
as follows:
‘‘§ 15. Annual report to Congress
‘‘The Commissioner shall report to the Congress, not
later than 180 days after the end of each fiscal year, the
moneys received and expended by the Office, the purposes
for which the moneys were spent, the quality and quantity
of the work of the Office, and other information relating
to the Office. The report under this section shall also meet
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the requirements of section 9106 of title 31, to the extent
that such requirements are not inconsistent with the pre-
ceding sentence. The report required under this section
shall be deemed to be the report of the Patent and Trade-
mark Office under section 9106 of title 31, and the Com-
missioner shall not file a separate report under such sec-
tion.’’.
SEC. 17420. SUSPENSION OR EXCLUSION FROM PRACTICE.
Section 32 of title 35, United States Code, is amend-
ed by inserting before the last sentence the following: ‘‘The
Commissioner shall have the discretion to designate any
attorney who is an officer or employee of the Patent and
Trademark Office to conduct the hearing required by this
section.’’.
SEC. 17421. FUNDING.
Section 42 of title 35, United States Code, is amend-
ed to read as follows:
‘‘§ 42. Patent and Trademark Office funding
‘‘(a) FEES PAYABLE TO THE OFFICE.—All fees for
services performed by or materials furnished by the Patent
and Trademark Office shall be payable to the Office.
‘‘(b) USE OF MONEYS.—Moneys of the Patent and
Trademark Office not otherwise used to carry out the
functions of the Office shall be kept in cash on hand or
on deposit, or invested in obligations of the United States
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or guaranteed by the United States, or in obligations or
other instruments which are lawful investments for fidu-
ciary, trust, or public funds. Fees available to the Commis-
sioner under this title shall be used exclusively for the
processing of patent applications and for other services
and materials relating to patents. Fees available to the
Commissioner under section 31 of the Act of July 5, 1946
(commonly referred to as the ‘Trademark Act of 1946’;
15 U.S.C. 1113), shall be used exclusively for the process-
ing of trademark registrations and for other services and
materials relating to trademarks.
‘‘(c) BORROWING
AUTHORITY.—The Patent and
Trademark Office is authorized to issue from time to time
for purchase by the Secretary of the Treasury its deben-
tures, bonds, notes, and other evidences of indebtedness
(hereafter in this subsection referred to as ‘obligations’)
to assist in financing its activities. Borrowing under this
subsection shall be subject to prior approval in appropria-
tion Acts. Such borrowing shall not exceed amounts ap-
proved in appropriation Acts. Any such borrowing shall
be repaid only from fees paid to the Office and surcharges
appropriated by the Congress. Such obligations shall be
redeemable at the option of the Office before maturity in
the manner stipulated in such obligations and shall have
such maturity as is determined by the Office with the ap-
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proval of the Secretary of the Treasury. Each such obliga-
tion issued to the Treasury shall bear interest at a rate
not less than the current yield on outstanding marketable
obligations of the United States of comparable maturity
during the month preceding the issuance of the obligation
as determined by the Secretary of the Treasury. The Sec-
retary of the Treasury shall purchase any obligations of
the Office issued under this subsection and for such pur-
pose the Secretary of the Treasury is authorized to use
as a public-debt transaction the proceeds of any securities
issued under chapter 31 of title 31, and the purposes for
which securities may be issued under that chapter are ex-
tended to include such purpose. Payment under this sub-
section of the purchase price of such obligations of the
Patent and Trademark Office shall be treated as public
debt transactions of the United States.’’.
SEC. 17422. AUDITS.
Chapter 4 of part I of title 35, United States Code,
is amended by adding at the end the following new section:
‘‘§ 43. Audits
‘‘(a) IN GENERAL.—Financial statements of the Pat-
ent and Trademark Office shall be prepared on an annual
basis in accordance with generally accepted accounting
principles. Such statements shall be audited by an inde-
pendent certified public accountant chosen by the Com-
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missioner. The audit shall be conducted in accordance with
standards that are consistent with generally accepted Gov-
ernment auditing standards and other standards estab-
lished by the Comptroller General, and with the generally
accepted auditing standards of the private sector, to the
extent feasible. The Commissioner shall transmit to the
Committees on the Judiciary of the House of Representa-
tives and the Senate the results of each audit under this
subsection.
‘‘(b) REVIEW
BY COMPTROLLER GENERAL.—The
Comptroller General may review any audit of the financial
statement of the Patent and Trademark Office that is con-
ducted under subsection (a). The Comptroller General
shall report to the Congress and the Office the results of
any such review and shall include in such report appro-
priate recommendations.
‘‘(c) AUDIT
BY
COMPTROLLER
GENERAL.—The
Comptroller General may audit the financial statements
of the Office and such audit shall be in lieu of the audit
required by subsection (a). The Office shall reimburse the
Comptroller General for the cost of any audit conducted
under this subsection.
‘‘(d) ACCESS TO OFFICE RECORDS.—All books, fi-
nancial records, report files, memoranda, and other prop-
erty that the Comptroller General deems necessary for the
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performance of any audit shall be made available to the
Comptroller General.
‘‘(e) APPLICABILITY IN LIEU OF TITLE 31 PROVI-
SIONS.—This section applies to the Office in lieu of the
provisions of section 9105 of title 31.’’.
SEC. 17423. TRANSFERS.
(a) TRANSFER OF FUNCTIONS.—Except as otherwise
provided in this Act, there are transferred to, and vested
in, the Patent and Trademark Office all functions, powers,
and duties vested by law in the Secretary of Commerce
or the Department of Commerce or in the officers or com-
ponents in the Department of Commerce with respect to
the authority to grant patents and register trademarks,
and in the Patent and Trademark Office, as in effect on
the day before the effective date of this subtitle, and in
the officers and components of such Office.
(b) TRANSFER
OF FUNDS
AND PROPERTY.—The
Secretary of Commerce shall transfer to the Patent and
Trademark Office, on the effective date of this subtitle,
so much of the assets, liabilities, contracts, property,
records, and unexpended and unobligated balances of ap-
propriations, authorizations, allocations, and other funds
employed, held, used, arising from, available to, or to be
made available to the Department of Commerce, including
funds set aside for accounts receivable which are related
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to functions, powers, and duties which are vested in the
Patent and Trademark Office by this subtitle.
CHAPTER 2—EFFECTIVE DATE;
TECHNICAL AMENDMENTS
SEC. 17431. EFFECTIVE DATE.
This subtitle shall take effect 6 months after the date
of the enactment of this Act.
SEC. 17432. TECHNICAL AND CONFORMING AMENDMENTS.
(a) AMENDMENTS TO TITLE 35.—
(1) The table of contents for part I of title 35,
United States Code, is amended by amending the
item relating to chapter 1 to read as follows:
‘‘1. Establishment, Officers and Employees, Functions ...........................
1.’’
(2) The table of sections for chapter 1 of title
35, United States Code, is amended to read as fol-
lows:
‘‘CHAPTER 1—ESTABLISHMENT, OFFICERS
AND EMPLOYEES, FUNCTIONS
‘‘Sec.
‘‘1. Establishment.
‘‘2. Powers and duties.
‘‘3. Officers and employees.
‘‘4. Restrictions on officers and employees as to interest in patents.
‘‘5. Patent and Trademark Office Management Advisory Board.
‘‘6. Duties of Commissioner.
‘‘7. Board of Patent Appeals and Interferences.
‘‘8. Suits by and against the Corporation.
‘‘9. Library.
‘‘10. Classification of patents.
‘‘11. Certified copies of records.
‘‘12. Publications.
‘‘13. Exchange of copies of patents with foreign countries.
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‘‘14. Copies of patents for public libraries.
‘‘15. Annual report to Congress.’’.
(3) The table of contents for chapter 4 of part I of
title 35, United States Code, is amended by adding at the
end the following new item:
‘‘43. Audits.’’.
(b) OTHER PROVISIONS OF LAW.—
(1) Section 9101(3) of title 31, United States
Code, is amended by adding at the end the follow-
ing:
‘‘(O) the Patent and Trademark Office.’’.
(2) Section 500(e) of title 5, United States
Code, is amended by striking ‘‘Patent Office’’ and
inserting ‘‘Patent and Trademark Office’’.
(3) Section 5102(c)(23) of title 5, United
States Code, is amended by striking ‘‘Department of
Commerce’’.
(4) Section 5316 of title 5, United States Code
(5 U.S.C. 5316) is amended by striking ‘‘Commis-
sioner of Patents, Department of Commerce.’’,
‘‘Deputy Commissioner of Patents and Trade-
marks.’’, ‘‘Assistant Commissioner for Patents.’’,
and ‘‘Assistant Commissioner for Trademarks.’’.
(5) Section 12 of the Act of February 14, 1903
(15 U.S.C. 1511) is amended by striking ‘‘(d) Pat-
ent and Trademark Office;’’ and redesignating sub-
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sections (a) through (g) as paragraphs (1) through
(6), respectively.
(6) The Act of April 12, 1892 (27 Stat. 395;
20 U.S.C. 91) is amended by striking ‘‘Patent Of-
fice’’ and inserting ‘‘Patent and Trademark Office’’.
(7) Sections 505(m) and 512(o) of the Federal
Food, Drug, and Cosmetic Act (21 U.S.C. 355(m)
and 360b(o)) are each amended by striking ‘‘of the
Department of Commerce’’.
(8) Section 105(e) of the Federal Alcohol Ad-
ministration Act (27 U.S.C. 205(e)) is amended by
striking ‘‘Patent Office’’ and inserting ‘‘Patent and
Trademark Office’’.
(9) Section 1744 of title 28, United States
Code is amended—
(A) by striking ‘‘Patent Office’’ each place
it appears and inserting ‘‘Patent and Trade-
mark Office’’; and
(B) by striking ‘‘Commissioner of Patents’’
and inserting ‘‘Commissioner of Patents and
Trademarks’’.
(10) Section 1745 of title 28, United States
Code, is amended by striking ‘‘United States Patent
Office’’ and inserting ‘‘Patent and Trademark Of-
fice’’.
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(11) Section 1928 of title 28, United States
Code, is amended by striking ‘‘Patent Office’’ and
inserting ‘‘Patent and Trademark Office’’.
(12) Section 160 of the Atomic Energy Act of
1954 (42 U.S.C. 2190) is amended—
(A) by striking ‘‘United States Patent Of-
fice’’ and inserting ‘‘Patent and Trademark Of-
fice’’; and
(B) by striking ‘‘Commissioner of Patents’’
and inserting ‘‘Commissioner of Patents and
Trademarks’’.
(13) Section 305(c) of the National Aeronautics
and Space Act of 1958 (42 U.S.C. 2457(c)) is
amended by striking ‘‘Commissioner of Patents’’ and
inserting ‘‘Commissioner of Patents and Trade-
marks’’.
(14) Section 12(a) of the Solar Heating and
Cooling Demonstration Act of 1974 (42 U.S.C.
5510(a)) is amended by striking ‘‘Commissioner of
the Patent Office’’ and inserting ‘‘Commissioner of
Patents and Trademarks’’.
(15) Section 1111 of title 44, United States
Code, is amended by striking ‘‘the Commissioner of
Patents,’’.
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(1) to the head of such department or office is
deemed to refer to the head of the department or of-
fice to which such function is transferred; or
(2) to such department or office is deemed to
refer to the department or office to which such func-
tion is transferred.
SEC. 17502. EXERCISE OF AUTHORITIES.
Except as otherwise provided by law, a Federal offi-
cial to whom a function is transferred by this title may,
for purposes of performing the function, exercise all au-
thorities under any other provision of law that were avail-
able with respect to the performance of that function to
the official responsible for the performance of the function
immediately before the effective date of the transfer of the
function under this title.
SEC. 17503. SAVINGS PROVISIONS.
(a) LEGAL DOCUMENTS.—All orders, determinations,
rules, regulations, permits, grants, loans, contracts, agree-
ments, certificates, licenses, and privileges—
(1) that have been issued, made, granted, or al-
lowed to become effective by the President, the Sec-
retary of Commerce, the United States Trade Rep-
resentative, any officer or employee of any office
transferred by this title, or any other Government
official, or by a court of competent jurisdiction, in
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the performance of any function that is transferred
by this title, and
(2) that are in effect on the effective date of
such transfer (or become effective after such date
pursuant to their terms as in effect on such effective
date),
shall continue in effect according to their terms until
modified, terminated, superseded, set aside, or revoked in
accordance with law by the President, any other author-
ized official, a court of competent jurisdiction, or operation
of law.
(b) PROCEEDINGS.—This title shall not affect any
proceedings or any application for any benefits, service,
license, permit, certificate, or financial assistance pending
on the date of the enactment of this Act before an office
transferred by this title, but such proceedings and applica-
tions shall be continued. Orders shall be issued in such
proceedings, appeals shall be taken therefrom, and pay-
ments shall be made pursuant to such orders, as if this
Act had not been enacted, and orders issued in any such
proceeding shall continue in effect until modified, termi-
nated, superseded, or revoked by a duly authorized official,
by a court of competent jurisdiction, or by operation of
law. Nothing in this subsection shall be considered to pro-
hibit the discontinuance or modification of any such pro-
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ceeding under the same terms and conditions and to the
same extent that such proceeding could have been discon-
tinued or modified if this title had not been enacted.
(c) SUITS.—This title shall not affect suits com-
menced before the date of the enactment of this Act, and
in all such suits, proceeding shall be had, appeals taken,
and judgments rendered in the same manner and with the
same effect as if this title had not been enacted.
(d) NONABATEMENT OF ACTIONS.—No suit, action,
or other proceeding commenced by or against the Depart-
ment of Commerce or the Secretary of Commerce, or by
or against any individual in the official capacity of such
individual as an officer or employee of an office trans-
ferred by this title, shall abate by reason of the enactment
of this title.
(e) CONTINUANCE OF SUITS.—If any Government of-
ficer in the official capacity of such officer is party to a
suit with respect to a function of the officer, and under
this title such function is transferred to any other officer
or office, then such suit shall be continued with the other
officer or the head of such other office, as applicable, sub-
stituted or added as a party.
(f) ADMINISTRATIVE PROCEDURE AND JUDICIAL RE-
VIEW.—Except as otherwise provided by this title, any
statutory requirements relating to notice, hearings, action
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upon the record, or administrative or judicial review that
apply to any function transferred by this title shall apply
to the exercise of such function by the head of the Federal
agency, and other officers of the agency, to which such
function is transferred by this title.
SEC. 17504. TRANSFER OF ASSETS.
Except as otherwise provided in this title, so much
of the personnel, property, records, and unexpended bal-
ances of appropriations, allocations, and other funds em-
ployed, used, held, available, or to be made available in
connection with a function transferred to an official or
agency by this title shall be available to the official or the
head of that agency, respectively, at such time or times
as the Director of the Office of Management and Budget
directs for use in connection with the functions trans-
ferred.
SEC. 17505. DELEGATION AND ASSIGNMENT.
Except as otherwise expressly prohibited by law or
otherwise provided in this title, an official to whom func-
tions are transferred under this title (including the head
of any office to which functions are transferred under this
title) may delegate any of the functions so transferred to
such officers and employees of the office of the official as
the official may designate, and may authorize successive
redelegations of such functions as may be necessary or ap-
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propriate. No delegation of functions under this section
or under any other provision of this title shall relieve the
official to whom a function is transferred under this title
of responsibility for the administration of the function.
SEC. 17506. AUTHORITY OF DIRECTOR OF THE OFFICE OF
MANAGEMENT AND BUDGET WITH RESPECT
TO FUNCTIONS TRANSFERRED.
(a) DETERMINATIONS.—If necessary, the Director
shall make any determination of the functions that are
transferred under this title.
(b) INCIDENTAL TRANSFERS.—The Director, at such
time or times as the Director shall provide, may make
such determinations as may be necessary with regard to
the functions transferred by this title, and to make such
additional incidental dispositions of personnel, assets, li-
abilities, grants, contracts, property, records, and unex-
pended balances of appropriations, authorizations, alloca-
tions, and other funds held, used, arising from, available
to, or to be made available in connection with such func-
tions, as may be necessary to carry out the provisions of
this title. The Director shall provide for the termination
of the affairs of all entities terminated by this title and
for such further measures and dispositions as may be nec-
essary to effectuate the purposes of this title.
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SEC. 17507. CERTAIN VESTING OF FUNCTIONS CONSIDERED
TRANSFERS.
For purposes of this title, the vesting of a function
in a department or office pursuant to reestablishment of
an office shall be considered to be the transfer of the
function.
SEC. 17508. AVAILABILITY OF EXISTING FUNDS.
Existing appropriations and funds available for the
performance of functions, programs, and activities termi-
nated pursuant to this title shall remain available, for the
duration of their period of availability, for necessary ex-
penses in connection with the termination and resolution
of such functions, programs, and activities.
SEC. 17509. DEFINITIONS.
For purposes of this title—
(1) the term ‘‘function’’ includes any duty, obli-
gation, power, authority, responsibility, right, privi-
lege, activity, or program; and
(2) the term ‘office’ includes any office, admin-
istration, agency, bureau, institute, council, unit, or-
ganizational entity, or component thereof.
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TITLE XVIII—WELFARE REFORM
SEC. 18001. ENACTMENT OF THE PERSONAL RESPONSIBIL-
ITY ACT OF 1995.
H.R. 4, as passed by the House of Representatives
on March 24, 1995, is hereby enacted with the following
amendments:
(1) In section 101, insert
‘‘(a) IN GENERAL.—’’ before ‘‘Title IV of the Social
Security Act’’.
(2) At the end of section 101, add the follow-
ing:
(b) SUBMISSION OF STATE PLAN FOR FISCAL YEAR
1996 DEEMED ACCEPTANCE
OF GRANT LIMITATIONS
AND FORMULA.—The submission of a plan by a State
under section 402(a) of the Social Security Act (as in ef-
fect pursuant to the amendment made by subsection (a)
of this section) for fiscal year 1996 is deemed to constitute
the State’s acceptance of the grant limitations under sec-
tion 403(a)(1)(A)(i) of such Act (as so in effect) for fiscal
year 1996 (including the formula for computing the
amount of the grant).
(3) Strike section 403(a)(1)(A) of the Social
Security Act, as proposed to be added by section
101, and insert the following:
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‘‘(A) IN
GENERAL.—Each eligible State
shall be entitled to receive from the Secretary—
‘‘(i) for fiscal year 1996, a grant in
an amount equal to—
‘‘(I) the State family assistance
grant for fiscal year 1996; minus
‘‘(II) the total amount of obliga-
tions to the State under part A of this
title (as in effect before the effective
date of this part) for fiscal year 1996,
other than with respect to amounts
expended for child care pursuant to
subsection (g) or (i) of section 402 of
this title (as so in effect); and
‘‘(ii) for each of fiscal years 1997,
1998, 1999, and 2000, a grant in an
amount equal to the State family assist-
ance grant for the fiscal year.
(4) In section 201, insert
‘‘(a) IN GENERAL.—’’ before ‘‘Part B of title IV of
the Social Security Act’’.
(5) At the end of section 201, add the follow-
ing:
(b) SUBMISSION OF STATE PLAN FOR FISCAL YEAR
1996 DEEMED ACCEPTANCE
OF GRANT LIMITATIONS
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AND FORMULA.—The submission of a plan by a State
under section 422(a) of the Social Security Act (as in ef-
fect pursuant to the amendment made by subsection (a)
of this section) for fiscal year 1996 is deemed to constitute
the State’s acceptance of the grant limitations under sec-
tion 423(a)(1)(A) of such Act (as so in effect) for fiscal
year 1996 (including the formula for computing the
amount of the grant).
(6) Strike section 423(a)(1) of the Social Secu-
rity Act, as proposed to be added by section 201,
and insert the following:
‘‘(1) IN GENERAL.—Each eligible State shall be
entitled to receive from the Secretary—
‘‘(A) for fiscal year 1996, a grant in an
amount equal to—
‘‘(i) the State share of the child pro-
tection amount for fiscal year 1996; minus
‘‘(ii) the total amount of obligations to
the State under parts B and E of this title
(as in effect before the effective date of
this part) for fiscal year 1996; and
‘‘(B) for each subsequent fiscal year speci-
fied in subsection (b)(1), a grant in an amount
equal to the State share of the child protection
amount for the fiscal year.
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(7) Strike section 301(b) and insert the follow-
ing:
(b) AUTHORIZATION OF APPROPRIATIONS.—Section
658B of the Child Care and Development Block Grant Act
of 1990 (42 U.S.C. 9858B) is amended to read as follows:
‘‘SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this subchapter $1,804,000,000 for fiscal year 1996 and
$2,093,000,000 for each of the fiscal years 1997, 1998,
1999, 2000, 2001, and 2002.’’.
(8) In the matter preceding paragraph (1) of
section 3 of the Child Nutrition Act of 1966, as pro-
posed to be amended by section 321, strike ‘‘The
Secretary’’ and insert ‘‘(a) IN GENERAL.—The Sec-
retary’’.
(9) At the end of section 3 of the Child Nutri-
tion Act of 1966, as proposed to be amended by sec-
tion 321, add the following:
‘‘(b) ADDITIONAL REQUIREMENTS.—
‘‘(1) RESTRICTION ON ALLOTMENTS.—
‘‘(A) COMPUTATION.—The Secretary shall
provide for the computation of State obligation
allotments in accordance with this section for
each of the fiscal years 1996 through 2000.
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‘‘(B) LIMITATION ON OBLIGATIONS.—The
Secretary shall not enter into obligations with
any State under this Act for a fiscal year in ex-
cess of the obligation allotment for that State
for the fiscal year, as determined under sub-
section (a). The sum of such obligation allot-
ments for all States in any fiscal year shall not
exceed the amount appropriated to carry out
this Act for that fiscal year.
‘‘(2) AGREEMENT.—The submission of an ap-
plication by a State under section 4 is deemed to
constitute the State’s acceptance of the obligation al-
lotment limitations under this section (including the
formula for computing the amount of such obligation
allotment).
(10) In the matter preceding paragraph (1) of
section 3 of the National School Lunch Act, as pro-
posed to be amended by section 341, strike ‘‘The
Secretary’’ and insert ‘‘(a) IN GENERAL.—The Sec-
retary’’.
(11) At the end of section 3 of the National
School Lunch Act, as proposed to be amended by
section 341, add the following:
‘‘(b) ADDITIONAL REQUIREMENTS.—
‘‘(1) RESTRICTION ON ALLOTMENTS.—
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‘‘(A) COMPUTATION.—The Secretary shall
provide for the computation of State obligation
allotments in accordance with this section for
each of the fiscal years 1996 through 2000.
‘‘(B) LIMITATION ON OBLIGATIONS.—
‘‘(i) IN GENERAL.—Subject to clause
(ii), the Secretary shall not enter into obli-
gations with any State under this Act for
a fiscal year in excess of the obligation al-
lotment for that State for the fiscal year,
as determined under subsection (a). The
sum of such obligation allotments for all
States in any fiscal year shall not exceed
the school-based nutrition amount for that
fiscal year.
‘‘(ii) REDUCTION
FOR
POST-ENACT-
MENT NEW OBLIGATIONS IN FISCAL YEAR
1996.—
‘‘(I) IN GENERAL.—The amount
of the obligation allotment otherwise
provided under this section for fiscal
year 1996 for a State under this Act
(as in effect on and after the date of
the enactment of the Personal Re-
sponsibility Act of 1995) shall be re-
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duced by the amount of the obliga-
tions described in subclause (II) that
are entered into under this Act or
under the Child Nutrition Act of 1966
on or after October 1, 1995, but prior
to the date of the enactment of the
Personal Responsibility Act of 1995.
‘‘(II) AMOUNT OF OBLIGATIONS
DESCRIBED.—(aa) Except as provided
in division (bb), the amount of the ob-
ligations described in this subclause
are 100 percent of the amount of the
obligations entered into under this Act
and under the Child Nutrition Act of
1966 (except obligations entered into
under section 17 of such Act).
‘‘(bb) For purposes of obligations
entered into under the summer food
service program for children under
section 13 of this Act, the child and
adult care food program under section
17 of this Act, and the special milk
program under section 3 of the Child
Nutrition Act of 1966, the amount of
the obligations described in this