I
103D CONGRESS
1ST SESSION
H. R. 3400
To provide a more effective, efficient, and responsive government.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 28, 1993
Mr. GEPHARDT introduced the following bill; which was referred jointly to the
following committees for a period ending not later than November 15,
1993: Agriculture, Armed Services, Banking, Finance and Urban Affairs,
Education and Labor, Energy and Commerce, Foreign Affairs, Govern-
ment Operations, House Administration, the Judiciary, Merchant Marine
and Fisheries, Natural Resources, Permanent Select Committee on Intel-
ligence, Post Office and Civil Service, Public Works and Transportation,
Science, Space, and Technology, Veterans’ Affairs, and Ways and Means
A BILL
To provide a more effective, efficient, and responsive
government.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Government Reform
and Savings Act of 1993’’.
SEC. 2. TABLE OF CONTENTS.
The table of contents is as follows:
TITLE I—DEPARTMENT OF AGRICULTURE
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Subtitle A—Department of Agriculture Reorganization
Subtitle B—Eliminate Federal Support for Wool and Mohair
Subtitle C—Eliminate Federal Support for Honey
TITLE II—DEPARTMENT OF COMMERCE
Polar Satellite Convergence
TITLE III—DEPARTMENT OF DEFENSE
Subtitle A—Create Incentives for the Department of Defense to Generate
Revenues
Subtitle B—Closure of the Uniform Services University of the Health
Sciences
Subtitle C—Streamline and Reorganize the United States Army Corps of
Engineers
TITLE IV—DEPARTMENT OF ENERGY
Subtitle A—Alaska Power Administration Sale Authorization Act
Subtitle B—Federal-Private Cogeneration of Electricity
Subtitle C—Power Marketing Administration Debt Buyout
TITLE V—DEPARTMENT OF HEALTH AND HUMAN SERVICES
Subtitle A—Increased Flexibility in Contracting for Medicare Claims
Processing
Subtitle B—Workers’ Compensation Data Exchange Pilot Projects
Subtitle C—Federal Clearinghouse on Death Information
Subtitle D—Continuing Disability Reviews
TITLE VI—DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT
Subtitle A—Multifamily Property Disposition
Subtitle B—Merger of the Certificate and Voucher Programs
Subtitle C—Streamline HUD
Subtitle D—Refinance Section 235 Mortgages
Subtitle E—Section 8 Rents for New Construction and Rehabilitation
Projects
TITLE VII—DEPARTMENT OF THE INTERIOR
Subtitle A—Improve the Federal Helium Program
Subtitle B—Improve Minerals Management Service Royalty Collection
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Subtitle C—Phase Out the Mineral Institute Program
TITLE VIII—DEPARTMENT OF JUSTICE
Bureau of Prisons Health Services User Fee
TITLE IX—DEPARTMENT OF LABOR
Subtitle A—Deterrence of Fraud and Abuse in the FECA Program
Subtitle B—Enhancement of Reemployment Programs for Federal Employees
Disabled in the Performance of Duty
Subtitle C—Wage Determinations—McNamara-O’Hara Service Contract Act
and Davis-Bacon Act
Subtitle D—Elimination of Filing Requirement for Plan Descriptions, Sum-
mary Plan Descriptions, and Descriptions of Material Modifications to a
Plan
TITLE X—DEPARTMENT OF STATE/UNITED STATES
INFORMATION AGENCY
Reduction of Mission Operating Costs
TITLE XI—DEPARTMENT OF TRANSPORTATION
Subtitle A—Authority to Charge Tuition for Attendance at the United States
Merchant Marine Academy
Subtitle B—Reform of the Essential Air Service Program
Subtitle C—Repeal of Authorization for the Airway Science Program, Colle-
giate Training Initiative, and Air Carrier Maintenance Technical Training
Facility Grant Program
TITLE XII—DEPARTMENT OF VETERANS AFFAIRS
Subtitle A—Remove Certain Limitations and Restrictions Contained in
Veterans Law
Subtitle B—Closure of Supply Depots and Transfer of Revolving Supply
Fund Money
Subtitle C—Provision of Information from the Medicare and Medicaid
Coverage Data Bank to the Department of Veterans Affairs
Subtitle D—Veterans’ Appeals Improvement Act of 1993
TITLE XIII—HUMAN RESOURCE MANAGEMENT
Subtitle A—Federal Workforce Restructuring Act of 1993
Subtitle B—SES Annual Leave Accumulation
TITLE XIV—REINVENTING SUPPORT SERVICES
Government Information Dissemination and Printing Improvement Act of
1993
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TITLE XV—STREAMLINING MANAGEMENT CONTROL
Authority to Increase Efficiency in Reporting to Congress
TITLE XVI—IMPROVING FINANCIAL MANAGEMENT
Subtitle A—Electronic Payments
Subtitle B—Franchise Funds and Innovation Funds
Subtitle C—Simplifying the Management Reporting Process
Subtitle D—Annual Financial Reports
Subtitle E—Strengthening Debt Collection Programs
Subtitle F—Improving Department of Justice Debt Collection
Subtitle G—Adjusting Civil Monetary penalties for Inflation
TITLE XVII—YEAR-END SPENDING
TITLE I—DEPARTMENT OF
AGRICULTURE
Subtitle A—Department of
Agriculture Reorganization
SEC. 1001. DEPARTMENT OF AGRICULTURE REORGANIZA-
TION.
Pursuant to authorities proposed in the Department
of Agriculture Reorganization Act of 1993 (H.R. 3171)
and current legal authorities, the Secretary of Agriculture
shall take action to restructure and reinvent the Depart-
ment of Agriculture by reducing the number of agencies
in the Department, reducing headquarters and adminis-
trative staffing and overhead, closing or consolidating un-
necessary field locations, and taking such other actions as
may be necessary to reduce the staffing of the department
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by not less than 7,500 staff years and save a total of not
less than $1.64 billion in fiscal years 1995 through 1999.
Subtitle B—Eliminate Federal
Support for Wool and Mohair
SEC. 1101. AMENDMENTS TO SECTION 703 OF NATIONAL
WOOL ACT OF 1954.
Section 703 of the National Wool Act of 1954 (7
U.S.C. 1782) is amended—
(1) by striking subsection (a) and inserting the
following new subsection:
‘‘(a) Subject to subsection (b)(3), the Secretary of
Agriculture shall, through the Commodity Credit Corpora-
tion, make loans and payments to producers of wool and
mohair through December 31, 1995.’’;
(2) in subsection (b)—
(A) in paragraph (2), by striking ‘‘1997’’
and inserting ‘‘1995’’; and
(B) by striking paragraph (3) and insert-
ing the following new paragraph:
‘‘(3) No loans, purchases, or payments shall be made
for the 1996 and subsequent marketing years, except that
loans and payments for the 1995 marketing year shall be
paid in 1996.’’; and
(3) by adding at the end the following new
paragraph:
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‘‘(4)(A) Through December 31, 1995, the Secretary
shall offer to wool and mohair producers recourse loans
under terms and conditions that are prescribed by the Sec-
retary, except that the loans shall be administered at no
net cost to the Federal Government.
‘‘(B) A producer who fails to repay a loan made
under subparagraph (A) by the end of the following mar-
keting year shall be ineligible for a loan under this Act
for that marketing year and subsequent marketing
years.’’.
SEC. 1102. AMENDMENT TO SECTION 704 OF NATIONAL
WOOL ACT OF 1954.
Section 704(a) of the National Wool Act of 1954 (7
U.S.C. 1783(a)) is amended by inserting after the first
sentence the following new sentence: ‘‘In the case of each
of the 1994 and 1995 marketing years, the payments shall
be 75 and 50 percent, respectively, of the amount other-
wise determined under the preceding sentence.’’.
SEC. 1103. REPEAL OF NATIONAL WOOL ACT OF 1954.
(a) IN GENERAL.—Effective December 31, 1995, the
National Wool Act of 1954 (7 U.S.C. 1781 et seq.) is
repealed.
(b) APPLICATION.—The repeal made by subsection
(a) shall apply to both the wool and mohair programs.
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(c) PROHIBITION.—Effective beginning December
31, 1995, the Secretary of Agriculture may not provide
loans or payments for wool or mohair by using the funds
of the Commodity Credit Corporation or under the author-
ity of any law.
SEC. 1104. REPEAL OF SECTION 702 OF NATIONAL WOOL
ACT OF 1954, ETC.
(a) Section 702 of the National Wool Act of 1954
(7 U.S.C. 1781) is repealed.
(b) Section 703 of such Act (7 U.S.C. 1782) is
amended—
(1) by striking the section heading and insert-
ing the following new section heading: ‘‘SUPPORT
PRICE FOR WOOL AND MOHAIR’’;
(2) in subsection (b)(1)(i), by striking ‘‘such
price support’’ and inserting ‘‘the support price’’;
and
(3) in subsection (d), by striking ‘‘price sup-
port’’ and inserting ‘‘support under this section’’.
(c) Section 704 of such Act (7 U.S.C. 1783) is
amended—
(1) by striking the section heading and insert-
ing the following new section heading:
‘‘SEC. 704. PAYMENTS.’’;
and
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(2) in subsection (a), by striking ‘‘If payments
are utilized as a means of price support, the’’ and
inserting ‘‘The’’.
(d) The first sentence of section 706 of such Act (7
U.S.C. 1785) is amended by striking ‘‘price support oper-
ations’’ and inserting ‘‘operations under this Act’’.
SEC. 1105. SAVINGS PROVISION.
A provision of this subtitle may not affect the liability
of any person under any provision of law as in effect be-
fore the effective date of the provision.
Subtitle C—Eliminate Federal
Support for Honey
SEC. 1201. AMENDMENTS TO SECTION 207 OF AGRICUL-
TURAL ACT OF 1949.
Section 207 of the Agricultural Act of 1949 (7 U.S.C.
1446h) is amended—
(1) by striking ‘‘1998’’ each place it appears, in
subsections (a), (c), and (j), and inserting ‘‘1995’’;
(2) by striking ‘‘loan’’ each place it appears ex-
cept for subsection (d), and inserting ‘‘nonrecourse
loan’’; and
(3) in subsection (a), by striking paragraphs
(3), (4), and (5) and inserting the following new
paragraph:
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‘‘(4)(i) No loans, purchases, or payments shall
be made for the 1996 and subsequent crop years.
‘‘(ii) Through December 31, 1995, the Sec-
retary shall offer to honey producers recourse loans
under terms and conditions that are prescribed by
the Secretary, except that the loans shall be admin-
istered at no net cost to the Federal Government.
‘‘(iii) A producer who fails to repay a loan made
under clause (ii) by the end of the following market-
ing year shall be ineligible for a loan under this Act
for that marketing year and subsequent marketing
years.’’.
SEC. 1202. FURTHER AMENDMENTS TO SECTION 207 OF AG-
RICULTURAL ACT OF 1949.
Section 207 of the Agricultural Act of 1949 (7 U.S.C.
1446h) is amended—
(1) After subsection (b)(2), by inserting the
following:
‘‘(3) In the case of the 1994 and 1995 market-
ing years, the quantity of honey for which a pro-
ducer may receive a nonrecourse loan shall be re-
duced by 25 and 50 percent, respectively, of the
lesser of—
‘‘(i) 
the 
amount 
requested 
for 
a
nonrecourse loan, or
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‘‘(ii) the most recent five year average of
previous loan placements.
‘‘(4) The honey not eligible for the nonrecourse
loan shall be eligible for a recourse loan but shall
not be eligible for a loan deficiency payment.’’;
(2) In paragraphs (3) and (4), by striking
‘‘(3)’’ and ‘‘(4)’’ and inserting ‘‘(4)’’ and ‘‘(5)’’; and
(3) After subsection (c)(2), by inserting the fol-
lowing new paragraph:
‘‘(3) In the case of the 1994 and 1995 market-
ing years, the quantity of honey for which a pro-
ducer can receive loan deficiency payments shall be
75 and 50 percent, respectively, of the lesser of—
‘‘(i) the amount requested for honey eligi-
ble for nonrecourse loans, or
‘‘(ii) the average amount received in loan
deficiency payments for the previous five
years.’’.
SEC. 1203. AMENDMENTS TO SECTION 405A OF AGRICUL-
TURAL ACT OF 1949.
Section 405A of the Agricultural Act of 1949 (7
U.S.C. 1425a) is amended—
(1) in subsection (a), by striking ‘‘$125,000’’
and inserting ‘‘$75,000’’; and
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(2) in subsection (a), by striking all that follows
‘‘Provided, however,’’ and inserting ‘‘In the case of
the 1994 and 1995 marketing years, the amount
that a producer can forfeit shall be limited by the
amount that can be put under loan as determined
under section 207(b) and (c) of this Act.’’.
SEC. 1204. REPEAL OF SECTION 207 OF AGRICULTURAL ACT
OF 1949.
(a) IN GENERAL.—Effective December 31, 1995,
Section 207 of the Agricultural Act of 1949 (7 U.S.C.
1446h) is repealed.
(b) PROHIBITION.—Effective beginning December
31, 1995, the Secretary of Agriculture may not provide
loans or payments for honey by using the funds of the
Commodity Credit Corporation or under the authority of
any law, except that the Commodity Credit Corporation
may settle any outstanding loans made on or before
December 31, 1995.
SEC. 1205. SAVINGS PROVISION.
A provision of this subtitle may not affect the liability
of any person under any provision of law as in effect be-
fore the effect date of the provision.
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TITLE II—DEPARTMENT OF
COMMERCE
SEC. 2001. POLAR SATELLITE CONVERGENCE.
The Departments of Commerce and Defense and the
National Aeronautics and Space Administration shall pro-
pose a single operational polar environmental and weather
satellite system, which meets national needs. A detailed
implementation plan shall be submitted to Congress by the
Director of the Office of Science and Technology Policy,
in consultation with the Departments of Commerce and
Defense and the National Aeronautics and Space Adminis-
tration, by April 30, 1994. The plan shall be designed to
result in savings of up to $300 million in budget authority
and up to $251 million in outlays between fiscal years
1994 and 1999.
TITLE III—DEPARTMENT OF
DEFENSE
Subtitle A—Create Incentives for
the Department of Defense to
Generate Revenues
SEC. 3001. INCENTIVES FOR DEPARTMENT OF DEFENSE TO
GENERATE REVENUES.
Section 2577 of title 10, United States Code, is
amended by striking subsections (b) and (c), and inserting
the following new subsection:
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‘‘(b) Proceeds from the sale of recyclable materials
at an installation shall be credited to funds available for
operations and maintenance at that installation, and, at
the discretion of the installation commander, to the
nonappropriated morale and welfare account of the instal-
lation to be used for any morale and welfare activity.’’.
Subtitle B—Closure of the Uniform
Services 
University 
of 
the
Health Sciences
SEC. 3101. CLOSURE OF UNIFORM SERVICES UNIVERSITY
OF THE HEALTH SCIENCES.
(a) REPEAL OF AUTHORITY.—Chapter 104 of title
10, United States Code, is hereby repealed.
(b) PHASE-OUT PROCESS.—(1) Notwithstanding any
other provision of law, the Secretary of Defense shall
phase out the Uniformed Services University of the Health
Sciences, beginning in fiscal year 1995, and ending with
the closure of such University not later than September
30, 1998. No provision of section 2687 of title 10, United
States Code, or of any other law establishing preconditions
to the closure of any activity of the Department of Defense
shall operate to establish any precondition to the phase-
out and closure of the Uniformed Services University of
the Health Sciences pursuant to this subtitle.
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(2) Under the phase-out process required by para-
graph (1), the Secretary of Defense is authorized to exer-
cise all of the authorities pertaining to the operation of
the Uniformed Services University of the Health Sciences
that were granted to the Secretary of Defense, the Board
of Regents, or the Dean of the Uniformed Services Univer-
sity of the Health Sciences by chapter 104 of title 10,
United States Code, prior to enactment of the repeal of
that chapter by subsection (a). Such authorities may be
exercised by the Secretary of Defense so as to achieve an
orderly phase-out of operations of the Uniformed Services
University of the Health Sciences.
(3) No new class of students may be admitted to
begin studies in the Uniformed Services University of the
Health Sciences after September 30, 1994. No students
may be awarded degrees by such University after Septem-
ber 30, 1998, except that the Secretary of Defense may
grant exceptions on a case-by-case basis for any students
who by that date have completed substantially all degree
requirements.
(c) AUTHORITIES UNAFFECTED.—(1) Commissioned
service obligations incurred by students of the Uniformed
Services University of the Health Sciences shall be unaf-
fected by enactment of the repeal of chapter 104 of title
10, United States Code, by subsection (a).
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(2) Nothing in this subtitle shall be construed as lim-
iting the exercise by the Secretary of Defense of other au-
thorities under law pertaining to health sciences edu-
cation, training and professional development, graduate
medical education, medical and scientific research, and
similar activities. To the extent any such activities had
been assigned by the Secretary of Defense to the Uni-
formed Services University of the Health Sciences, the
Secretary of Defense’s authority to assign such activities
to any other component or entity of the Department of
Defense shall be unaffected by the phase-out and closure
of the Uniformed Services University of the Health
Sciences pursuant to this subtitle.
(d) CONFORMING AMENDMENTS.—(1) Section 178 of
title 10, United States Code, pertaining to the Henry M.
Jackson Foundation for the Advancement of Military
Medicine, is amended—
(A) in subsection (b), by striking ‘‘Uniformed
Services University of the Health Sciences’’ and in-
serting ‘‘Department of Defense’’;
(B) in subsection (c)(1)(B), by striking ‘‘the
Dean of the Uniformed Services University of the
Health Sciences’’ and inserting ‘‘a person designated
by the Secretary of Defense’’; and
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(C) in subsection (g)(1), by striking ‘‘Uni-
formed Services University of the Health Sciences’’
and inserting ‘‘Secretary of Defense’’.
(2) Section 466 of the Public Health Service Act (42
U.S.C. section 286a), pertaining to the Board of Regents
of the National Library of Medicine, is amended in sub-
section (a)(1)(B) by striking ‘‘the Dean of the Uniformed
Services University of the Health Sciences’’.
(3) The table of chapters and the table of sections
at the beginning of title 10, United States Code, is amend-
ed by striking references to chapter 104 and sections 2112
through 2115.
(e) EFFECTIVE DATE.—This section shall be effective
upon the date of enactment.
Subtitle C—Streamline and Reor-
ganize the U.S. Army Corps of
Engineers
SEC. 3201. STREAMLINING AND REORGANIZATION OF
CORPS OF ENGINEERS.
Notwithstanding any other provision of law, the Sec-
retary of the Army shall reorganize the United States
Army Corps of Engineers by reorganizing the head-
quarters offices, reducing the number of division offices,
and restructuring the district functions so as to increase
the efficiency of the United States Army Corps of Engi-
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neers and reduce staff and costs, with the goal of achiev-
ing approximately $50 million in net annual savings by
fiscal year 1998.
TITLE IV—DEPARTMENT OF
ENERGY
Subtitle A—Alaska Power Adminis-
tration Sale Authorization Act
SEC. 4001. SHORT TITLE.
This subtitle may be cited as the ‘‘Alaska Power Ad-
ministration Sale Authorization Act’’.
SEC. 4002. SALE OF SNETTISHAM AND EKLUTNA HYDRO-
ELECTRIC PROJECTS.
(a) The Secretary of Energy may sell the Snettisham
Hydroelectric Project (referred to in this subtitle as
‘‘Snettisham’’) to the State of Alaska Power Authority
(now known as the Alaska Industrial Development and
Export Authority, and referred to in this subtitle as the
‘‘Authority’’), or its successor, in accordance with the Feb-
ruary 10, 1989, Snettisham Purchase Agreement between
the Alaska Power Administration of the United States De-
partment of Energy and the Authority.
(b) The Secretary of Energy may sell the Eklutna
Hydroelectric Project (referred to in this subtitle as
‘‘Eklutna’’) to the Municipality of Anchorage doing busi-
ness as Municipal Light and Power, the Chugach Electric
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Association, Inc., and the Matanuska Electric Association,
Inc. (referred to in this subtitle as ‘‘Eklutna Purchasers’’)
in accordance with the August 2, 1989, Eklutna Purchase
Agreement between the United States Department of En-
ergy and the Eklutna Purchasers.
(c) The heads of other affected Federal departments
and agencies, including the Secretary of the Interior, shall
assist the Secretary of Energy in implementing the sales
authorized by this Act.
(d) The Secretary of Energy shall deposit sale pro-
ceeds in the Treasury of the United States to the credit
of miscellaneous receipts.
(e) There are authorized to be appropriated such
sums as are necessary to prepare or acquire Eklutna and
Snettisham assets for sale and conveyance, such prepara-
tions to provide sufficient title to ensure the beneficial use,
enjoyment, and occupancy to the purchasers of the assets
to be sold.
(f) No later than one year after both of the sales au-
thorized in section 4002 have occurred, as measured by
the Transaction Dates stipulated in the Purchase Agree-
ments, the Secretary of Energy shall—
(1) complete the business of, and close out, the
Alaska Power Administration; and
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(2) prepare and submit to Congress a report
documenting the sales.
SEC. 4003. ASSESSMENT OF ALTERNATIVE OPTIONS.
Before taking any action authorized in section 4002,
the Secretary shall assess the feasibility of alternative op-
tions for maximizing the return to the Treasury from the
sale of the Alaska Power Marketing Administration.
Subtitle B—Federal-Private
Cogeneration of Electricity
SEC. 4101. FEDERAL-PRIVATE COGENERATION OF ELEC-
TRICITY.
Section 804(2)(B) of the National Energy Conserva-
tion Policy Act (42 U.S.C. 8287c(2)(B)) is amended by
striking ‘‘, excluding any cogeneration process for other
than a federally owned building or buildings or other fed-
erally owned facilities.’’.
Subtitle C—Power Marketing
Administration Debt Buyout
PART 1—BONNEVILLE POWER ADMINISTRATION
DEBT BUYOUT
SEC. 4201. SHORT TITLE.
This part may be cited as the ‘‘Bonneville Power Ad-
ministration Repayment Bonds Act’’.
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SEC. 4202. SALE OF BONDS.
Notwithstanding any other law and without fiscal
year limitation—
(1) in addition to the authority in section 13 of
the Federal Columbia River Transmission System
Act (16 U.S.C. 838k), the Administrator may issue
and sell bonds, notes, and other evidences of indebt-
edness (referred to in this part as ‘‘Bonds’’) in the
manner and amounts the Administrator, considers
appropriate in the name of and for and on behalf of
the Bonneville Power Administration, to—
(A) satisfy the unpaid repayment obliga-
tion associated with the appropriated capital in-
vestment made in the Federal Columbia River
Power System before the issuance of the Bonds
authorized under this part takes place, but not
including Federal irrigation investments as-
signed to be repaid from power revenues; and
(B) refund Bonds;
(2) the Administrator shall transfer, and the
Secretary of the Treasury shall accept for the ac-
count of the General Fund, the net proceeds of the
Bonds referred to in paragraph (1)(A), and when
the Secretary of the Treasury receives the net pro-
ceeds, the repayment obligation associated with the
part of the appropriated capital investment in the
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Federal Columbia River Power System covered by
the Bonds is considered to be satisfied forever;
(3) the Secretary of the Treasury, in consulta-
tion with the Administrator, shall establish the
amount of proceeds needed to satisfy the unpaid re-
payment obligation associated with the part of the
capital investment referred to in paragraph (1)(A)
as the amount necessary to increase the sum of the
net proceeds and the discounted present value of the
remaining Federal debt service of the Federal Co-
lumbia River Power System by $100 million relative
to the discounted present value of the total Federal
debt service of the Federal Columbia River Power
System as provided by the Administrator based upon
the repayment schedule that would have been paid
under repayment policy and practices in effect on
September 1, 1993;
(4) to determine the discounted present values
in paragraph (3), the Secretary of the Treasury
shall use discount rates based on the secondary mar-
ket’s average yield for the most recently issued 30-
year Treasury bonds when the Bonds authorized in
paragraph (1) are issued;
(5) these Bonds shall be in the forms and de-
nominations, bear the maturities (without respect to
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the remaining average service life of the capital in-
vestment associated with the repayment obligation
satisfied by the Bonds issued under this part), be is-
sued and sold at the times, prices, discounts, and
yields, and be subject to other terms and conditions
(including variable rates) as the Administrator con-
siders appropriate;
(6) under section 2(f) of the Bonneville Project
Act of 1937 (16 U.S.C. 832a(f)) and this part, the
Administrator may enter into any contract that the
Administrator considers necessary for the purposes
of carrying out this part including, but not limited
to, contracts for—
(A) the payment of the principal, interest,
and premium, if any, on Bonds issued under
this part;
(B) the purchase or redemption of those
Bonds;
(C) the payment of costs and expenses in-
cidental to this payment, purchase, and re-
demption; or
(D) the creation of reserve and other funds
to be held by a trustee, which funds the Admin-
istrator may pledge exclusively to pay those
costs for which the funds were created and es-
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tablish a lien on the funds in favor of the bene-
ficiaries of the funds under any indenture, reso-
lution, or other agreement entered into in con-
nection with the issuance of Bonds under this
part;
(7) Bonds issued under this part—
(A) shall be issuable and payable through
the Federal wire system;
(B) are negotiable instruments that may
be accepted as security for all fiduciary, trust,
and public funds, the investment or deposit of
which is under the authority or control of any
officer or agency of the United States;
(C) may be held without limitation by na-
tional banks;
(D) qualify as legal investments for banks,
savings and loan institutions, and credit unions;
and
(E) are eligible collateral for Federal ad-
vances and discounts, for deposits of the United
States, and for the Treasury tax and loan
accounts;
(8) Bonds issued under this part are not in-
tended to be and are not secured by the full faith
and credit of the United States;
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(9) Bonds issued under this part are exempt
both as to principal and interest from all taxation by
any State or local taxing authority, except estate, in-
heritance, and gift taxes;
(10) Bonds issued under this part shall contain
a recital that they are issued under this part and
this recital is conclusive evidence of the regularity of
the issuance and sale of the Bonds and their
validity;
(11) the Bonds issued under this part, all re-
ceipts of the Secretary of the Treasury under this
part, any portion of the fund established under the
Federal Columbia River Transmission System Act
(16 U.S.C. 838 et seq.) related to these Bonds, all
receipts and disbursements of that fund related to
these Bonds, and all expenditures by the Adminis-
trator related to these Bonds—
(A) are exempt from any general budget
limitation imposed by statute on expenditures
and net lending (budget outlays) of the United
States Government, sequestration order, or dis-
cretionary spending limit;
(B) are exempt from any order issued pur-
suant to sections 251, 252, or 253 of the Bal-
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anced Budget and Emergency Deficit Control
Act of 1985 (2 U.S.C. 900 et seq.); and
(C) are not subject to apportionment under
subchapter II of chapter 15 of title 31, United
States Code;
(12) in all future contracts for the sale of elec-
tric power, transmission, or other services, the Ad-
ministrator shall include provisions specifying that
after the repayment obligation is fully and forever
satisfied, the Administrator’s rates for electric
power, transmission, or other services shall not in-
clude any form of economic rent to be returned to
the United States Government, including, without
limitation, a falling water charge or any other fee for
use of Federal facilities for power generation or
transmission, that relates to a project, facility, or
separable unit of a project or facility associated with
the satisfied repayment obligation, other than a
charge necessary to repay the new indebtedness in-
curred under this part. Amounts provided under sec-
tion 1304 of title 31, United States Code, shall be
the sole source for payment of a judgment against
the Administrator or the United States on a claim
for a violation of the contract provision required by
this paragraph;
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(13) the Administrator shall offer to amend the
Administrator’s existing contracts for the sale of
electric power, transmission, or other services to in-
clude the provisions described in paragraph (12);
and
(14) the Administrator shall consult with the
Secretary of the Treasury regarding the timing and
structure of the bonds issued under this part.
SEC. 4203. PAYMENT OF BOND COSTS.
Section 11(b)(6) of the Federal Columbia River
Transmission System Act (16 U.S.C. 838i(b)(6)), is
amended by striking ‘‘or’’ before ‘‘(iv)’’ and by inserting
before the semicolon ‘‘, or (v) to pay the cost of financing
and debt service, including premiums, if any, on Bond is-
sued by the Bonneville Power Administration’’.
SEC. 4204. COMBINED REPAYMENT STUDY.
Section 7(a) of the Pacific Northwest Electric Power
Planning and Conservation Act (16 U.S.C. 893e(a)), is
amended by adding after paragraph (2) the following:
‘‘(3) In establishing power and transmission
rates, the Administrator may base them on a single,
combined generation and transmission repayment
study which demonstrates that all indebtedness is
repaid by its due date. The use of such a study is
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sufficient for the commission to approve the rates as
meeting repayment requirements.’’.
SEC. 4205. DEFINITIONS.
For the purposes of this part—
(1) ‘‘Administrator’’ means the Administrator
of the Bonneville Power Administration; and
(2) ‘‘appropriated capital investment made in
the Federal Columbia River Power System’’ means
an investment made by the United States that—
(A) is made using Federal appropriations;
(B) is for a project or separable feature of
a project that is placed in service;
(C) is allocated to power and required by
law to be repaid from the power revenues by
the Administrator;
(D) is not allocated or suballocated to irri-
gation; and
(E) excludes an investment made using
funds borrowed under section 13 of the Federal
Columbia River Transmission System Act.
PART 2—OTHER POWER MARKETING
ADMINISTRATIONS DEBT BUYOUT
SEC. 4206. SHORT TITLE.
This part may be cited as the ‘‘Power Marketing Ad-
ministrations Financing Act’’.
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SEC. 4207. DEFINITIONS.
For the purposes of this part—
(1) ‘‘Administrator’’ means the Administrator
of the Southeastern Power Administration, the Ad-
ministrator of the Southwestern Power Administra-
tion, and the Administrator of the Western Area
Power Administration;
(2) ‘‘Fund’’ means the Power Marketing Ad-
ministration Sinking Fund established under section
4209; and
(3) ‘‘Power marketing administration’’ means
the Southeastern Power Administration, the South-
western Power Administration, and the Western
Area Power Administration.
SEC. 4208. REPAYMENT OF EXISTING INDEBTEDNESS.
(a) Notwithstanding any other law, within 12 months
after the enactment of this Act, each Administrator shall
develop, in consultation with the Secretary of the Treas-
ury, and shall implement a plan for paying the United
States Treasury the discounted present value of principal
and interest payments on power investments scheduled to
be paid to the United States Treasury as provided by the
Administrator under existing law and repayment practices
by that power marketing administration, as well as a one-
time additional payment of $12,500,000 by the Southeast-
ern Power Administration, $12,500,000 by the Southwest-
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ern Power Administration, and $50,000,000 by the West-
ern Area Power Administration. Each Administrator shall
issue revenue bonds as provided in section 4210 to pay
the obligation to the United States Treasury addressed in
this section, except that the issuance of these bonds shall
occur only if each Administrator determines by means of
financial studies that the refinancing will not cause an in-
crease in power rates over existing repayment practices.
When the Treasury receives full payment from an Admin-
istrator, it shall consider the repayment obligation of the
Administration associated with the payment fully and for-
ever discharged.
(b) In all future contracts for the sale of electric
power, transmission, or other services, each Administrator
shall include provisions agreeing that when the repayment
obligation is fully and forever discharged under subsection
(a), the Administrator’s rates for electric power, trans-
mission, or other services shall not, other than is necessary
to repay the new indebtedness incurred under this Act,
include any charge in place of the satisfied obligation or
include any other similar form of economic rent by or re-
turned to the United States (including, without limitation,
a falling water charge or any other type of user fee for
use of Federal facilities for the purpose of power genera-
tion and transmission) on account of any project, facility,
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or separable unit of a project or facility associated with
the repayment obligation satisfied.
(c) Each Administrator shall offer to amend existing
contracts for the sale of electric power, transmission, or
other services to include the provision described in sub-
section (b).
SEC. 4209. POWER MARKETING ADMINISTRATION SINKING
FUND.
(a) There is established in the Treasury of the United
States a Power Marketing Administration Sinking Fund.
The Secretary of the Treasury, acting as trustee for the
power marketing administrations, shall establish and
maintain a separate account in the Fund for each power
marketing administration, and monies of one power mar-
keting administration shall not be commingled with mon-
ies of another power marketing administration. Within the
separate account for each power marketing administra-
tion, separate projects or systems shall be accounted for
separately. An Administrator may deposit into the Fund
the monies derived from revenues that the Administrator
considers appropriate to ensure that the bonds issued
under section 4210 are refunded in a timely manner.
(b) Balances in the Fund shall earn interest at a rate
determined by the Secretary of the Treasury.
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(c) An Administrator may make expenditures from
the Administrator’s account in the Fund without further
appropriation and without fiscal year limitation to pay in-
debtedness incurred from bonds issued under section
4210.
(d) Each power marketing administration shall main-
tain its books of account in substantial conformance with
the Uniform System of Accounts of the Federal Energy
Regulatory Commission.
(e) The financial transactions of an Administrator
shall be audited by independent financial auditors, and re-
ports of the results of each audit shall be made to the
Congress within 61⁄2 months following the end of the fiscal
year covered by the audit.
SEC. 4210. REVENUE BONDS.
(a) Each Administrator, in consultation with the Sec-
retary of the Treasury, may issue and sell from time to
time in the name of, and for and on behalf of, the respec-
tive power marketing administration bonds, notes, and
other evidences of indebtedness (in this section collectively
referred to as ‘‘bonds’’) to refinance existing indebtedness
as provided in section 4208 and to issue and sell bonds
to refund those bonds. The bonds shall be in the forms
and denominations, bear maturities (without respect to
the remaining average service life of facilities), and be sub-
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ject to terms and conditions as prescribed by the Adminis-
trator taking into account terms and conditions prevailing
in the market for similar bonds and financing practices
of the utility industry. Provisions for early retirement of
bonds may be prescribed by each Administrator. The
bonds shall bear interest at a rate determined by the
Administrator.
(b) Each Administrator may enter into any contract
that the Administrator considers necessary for the pur-
poses of carrying out this part including, but not limited
to, contracts for—
(1) the payment of the principal, interest, and
premium, if any, on bonds issued under this part;
(2) their purchase or redemption;
(3) the payment of costs and expenses inciden-
tal to their payment, purchase, and redemption; or
(4) the creation of reserve and other funds to
be held by the Secretary of the Treasury as trustee,
which funds the Administrator may pledge exclu-
sively to pay those costs for which the funds were
created and may establish a lien on the funds in
favor of the beneficiaries of the funds under any in-
denture, resolution, or other agreement entered into
in connection with the issuance of bonds under this
part.
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(c) Bonds issued under this part—
(1) shall be issuable and negotiable through the
Federal wire system;
(2) are negotiable instruments that may be ac-
cepted as security for all fiduciary, trust, and public
funds, the investment or deposit of which is under
the authority or control of any officer or agency of
the United States;
(3) may be held, without limitation, by national
banks;
(4) qualify as legal instruments for banks, sav-
ings and loan institutions, and credit unions; and
(5) are eligible collateral for Federal advances
and discounts, for deposits of the United States, and
for Treasury tax and loan accounts.
(d) Bonds issued under this part are exempt both as
to principal and interest from all taxation by any State
or local taxing authority, except estate, inheritance, and
gift taxes.
(e) Bonds issued under this part shall contain a re-
cital that they are issued under this part and such a recital
is conclusive evidence of the regularity of the issuance and
sale of the bonds and their validity.
(f) These bonds are not intended to be and are not
secured by the full faith and credit of the United States.
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(g) The bonds issued under this part, all receipts of
the Secretary of the Treasury under this part, any portion
of the Fund established under section 4210 related to
these bonds, all receipts and disbursements of the Fund
related to these bonds, and all expenditures by an Admin-
istrator related to these bonds—
(1) are exempt from any general budget limita-
tion imposed by statute on expenditures and net
lending (budget outlays) of the United States Gov-
ernment, 
sequestration 
order, 
or 
discretionary
spending limit;
(2) are exempt from any order issued pursuant
to sections 251, 252, or 253 of the Balanced Budget
and Emergency Deficit Control Act of 1985 (2
U.S.C. 900 et seq.); and
(3) are not subject to apportionment under sub-
chapter II of chapter 15 of title 31, United States
Code.
(h) With respect to the Western Area Power Adminis-
tration, except as otherwise provided, this Act is consid-
ered to be a supplement to the Federal reclamation laws.
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TITLE V—DEPARTMENT OF
HEALTH AND HUMAN SERVICES
Subtitle A—Increased Flexibility in
Contracting 
for 
Medicare
Claims Processing
SEC. 5001. INCREASED FLEXIBILITY IN CONTRACTING FOR
MEDICARE CLAIMS PROCESSING.
(a) CARRIERS TO INCLUDE ENTITIES THAT ARE NOT
INSURANCE COMPANIES.—
(1) The matter in section 1842(a) of the Social
Security Act preceding paragraph (1) is amended by
striking ‘‘with carriers’’ and inserting ‘‘with agencies
and organizations (referred to as carriers’’).
(2) Section 1842(f) of the Act is repealed.
(b) ELIMINATION OF INTERMEDIARY NOMINATION
BY PROVIDERS OF SERVICES; SECRETARIAL FLEXIBILITY
IN ASSIGNING FUNCTIONS
TO INTERMEDIARIES
AND
CARRIERS.—
(1) Section 1816 of that Act is amended by
striking everything after the heading but before sub-
section (b) and inserting the following:
‘‘SEC. 1816. (a)(1) The Secretary may enter into
agreements with agencies or organizations to perform
some or all of the following functions (or parts of those
functions):
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‘‘(A) determine (subject to the provisions of sec-
tion 1878 and to such review by the Secretary as
may be provided for by the agreements) the amount
of the payments required pursuant to this part to be
made to providers of services,
‘‘(B) make payments described in subparagraph
(A),
‘‘(C) provide consultative services to institutions
or agencies to enable them to establish and maintain
fiscal records necessary for purposes of this part and
otherwise to qualify as hospitals, extended care fa-
cilities, and home health agencies,
‘‘(D) serve as a center for, and communicate to
providers, any information or instructions furnished
to the agency or organization by the Secretary, and
serve as a channel of communication from providers
to the Secretary,
‘‘(E) make such audits of the records of provid-
ers as may be necessary to ensure that proper pay-
ments are made under this part, and
‘‘(F) perform such other functions as are nec-
essary to carry out the purposes of this part.
‘‘(2) As used in this title and part B of title XI, the
term ‘fiscal intermediary’ means an agency or organiza-
tion with a contract under this section.’’.
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(2) Subsections (d) and (e) of section 1816 of
that Act are repealed.
(3) Section 1816(f)(1) of that Act is amended
by striking the second sentence.
(4) The matter in section 1842(a) of that Act
preceding paragraph (1) is amended by inserting ‘‘,
or parts of those functions’’ after ‘‘following func-
tions’’.
(5) Section 1842(b)(3)(G) of that Act is
amended by inserting ‘‘(unless provided by another
carrier)’’ after ‘‘will provide’’.
(6) The matter in section 1842(b)(3)(H) of that
Act preceding clause (i) is amended by striking ‘‘im-
plement—’’ and inserting ‘‘implement (as appro-
priate)—’’.
(7) Section 1842(b)(3)(L) of that Act is amend-
ed by inserting ‘‘(as appropriate)’’ after ‘‘will’’.
(8) The first sentence of section 1842(h)(2) of
that Act is amended by inserting ‘‘(unless main-
tained by another carrier)’’ after ‘‘shall maintain’’.
(c) ELIMINATION OF SPECIAL PROVISIONS FOR TER-
MINATION OF CONTRACTS.—
(1) Section 1816(f)(1) of that Act is amended
by striking ‘‘, renew, or terminate’’ and ‘‘or reas-
sign’’.
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(2) Section 1816(g) of that Act is repealed.
(3) Section 1842(b) of that Act is amended by
striking paragraph (5).
(d) REPEAL
OF
PROHIBITION
AGAINST
DATA
MATCHING.—Sections 1816(c)(1) and 1842(b)(2)(A) of
that Act are each amended by striking the last sentence.
(e) REPEAL OF COST REIMBURSEMENT REQUIRE-
MENTS.—
(1) The first sentence of section 1816(c)(1) of
that Act is amended—
(A) by striking the comma after ‘‘appro-
priate’’ and inserting ‘‘and’’; and
(B) by striking everything after ‘‘sub-
section (a)’’ up to the period.
(2) Section 1816(c)(1) of that Act is further
amended by striking the remaining sentences.
(3) The first sentence of section 1842(c)(1)(A)
of that Act is amended—
(A) by striking ‘‘shall provide’’ the first
place it occurs and inserting ‘‘may provide’’;
and
(B) by striking everything after ‘‘this
part’’ up to the period.
(4) Section 1842(c)(1)(A) of that Act is further
amended by striking the remaining sentences.
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(5) Section 2326(a) of the Deficit Reduction
Act of 1984 is repealed.
(f) ELIMINATION OF SEPARATE CARRIER FOR RAIL-
ROAD RETIREES.—Section 1842(g) of the Social Security
Act is repealed.
(g) EFFECTIVE DATE.—The amendments made by
the preceding subsections apply to contracts (including re-
newals) entered into after the third calendar month that
begins after the date of enactment of this Act.
Subtitle 
B—Workers’ 
Compensa-
tion 
Data 
Exchange 
Pilot
Projects
SEC. 5101. WORKERS’ COMPENSATION DATA EXCHANGE
PILOT PROJECTS.
(a) IN GENERAL.—The Secretary is authorized to
conduct pilot projects with not more than three States for
the purpose of studying various means of obtaining on a
timely and accurate basis such information relating to
benefits paid on account of total or partial disability under
the States’ workers’ compensation plan as the Secretary
may require for the purpose of carrying out section 224
of the Social Security Act.
(b) REIMBURSEMENT OF STATE COSTS.—A State
that participates in a project conducted pursuant to sub-
section (a) may be paid by the Secretary, from amounts
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available pursuant to subsection (e), the reasonable costs
of such participation.
(c) EVALUATION.—The Secretary shall evaluate each
project conducted pursuant to subsection (a) and shall
apply the findings, as appropriate, to agreements nego-
tiated pursuant to subsection (h)(2) of such section 224.
(d) 
DEADLINE
FOR
COMMENCEMENT
OF
PROJECTS.—No pilot project authorized by subsection (a)
may be commenced after the expiration of the 5-year pe-
riod beginning on the date of enactment of this section.
(e) FUNDING.—Expenditures for pilot projects con-
ducted pursuant to subsection (a) may be made from the
Federal Disability Insurance Trust Fund and the Old-Age
and Survivors Insurance Trust Fund, as determined ap-
propriate by the Secretary.
(f) EFFECTIVE DATE.—This section shall be effective
upon enactment.
Subtitle C—Federal Clearinghouse
on Death Information
SEC. 5201. FEDERAL CLEARINGHOUSE ON DEATH INFOR-
MATION.
(a) CLEARINGHOUSE DESIGNATION.—The heading
for section 205(r) of the Social Security Act is amended
to read as follows: ‘‘Clearinghouse on Death Information’’.
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(b) ACQUISITION OF DISCLOSABLE DEATH INFORMA-
TION FROM STATES.—
(1) Section 205(r)(1)(A) of the Social Security
Act is amended by striking ‘‘to furnish the Secretary
periodically with’’ and inserting ‘‘to furnish periodi-
cally to the Secretary, for use in carrying out sub-
paragraph (B) and paragraphs (3) and (4),’’.
(2)(A) Notwithstanding clause (ii) of section
6103(d)(4)(B) of the Internal Revenue Code of 1986
(as added by section 13444(a) of the Omnibus
Budget Reconciliation Act of 1993 (Public Law
103–66)), in order for a contract requiring a State
to furnish the Secretary of Health and Human Serv-
ices information concerning individuals with respect
to whom death certificates (or equivalent documents
maintained by the State or any subdivision thereof)
have been officially filed with it to meet the require-
ments of such section 6103(d)(4)(B), such contract
shall authorize the Secretary to use such information
and to redisclose such information to any Federal
agency or any agency of a State or political subdivi-
sion in accordance with section 205(r) of the Social
Security Act.
(B) The provisions of subparagraph (A) of this
paragraph and, notwithstanding subparagraph (C)
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of section 6103(d)(4) of the Internal Revenue Code
of 1986 (as added by section 13444(a) of the Omni-
bus Budget Reconciliation Act of 1993 (Public Law
103–66)), the provisions of subparagraphs (A) and
(B) of such section 6103(d)(4) shall apply to all
States, regardless of whether they were, on July 1,
1993, pursuant to a contract, furnishing the Sec-
retary of Health and Human Services information
concerning individuals with respect to whom death
certificates (or equivalent documents maintained by
the State or any subdivision thereof) have been offi-
cially filed with it.
(C) Subparagraphs (A) and (B) of this para-
graph shall take effect at the same time as the
amendment made by section 13444(a) of the Omni-
bus Budget Reconciliation Act of 1993 takes effect.
(D) For the purpose of applying the special rule
contained in section 13444(b)(2) of the Omnibus
Budget Reconciliation Act of 1993, the reference in
such section to section 6103(d)(4)(B) of the Internal
Revenue Code of 1986 shall be deemed to include a
reference to subparagraph (A) of this paragraph.
(c) PAYMENT
TO STATES
FOR DEATH INFORMA-
TION.—Section 205(r)(2) of the Social Security Act is
amended—
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(1) by striking ‘‘the reasonable costs’’ and in-
serting ‘‘a reasonable amount’’; and
(2) by striking ‘‘transcribing and transmitting’’
and inserting ‘‘furnishing’’.
(d) FEE FOR CLEARINGHOUSE INFORMATION.—
(1) Section 205(r)(3) of the Social Security Act
is amended by striking out ‘‘if’’ and all that follows,
and inserting ‘‘, provided that such agency agrees to
pay the fees set by the Secretary pursuant to para-
graph (8).’’.
(2) Section 205(r)(4) of the Social Security Act
is amended—
(A) by inserting ‘‘and political subdivi-
sions’’ after ‘‘States’’ the first place such term
appears;
(B) by striking ‘‘the States’’ and inserting
‘‘any State, political subdivision, or combination
thereof’’; and
(C) by striking ‘‘if’’ and all that follows
and inserting ‘‘provided such States and politi-
cal sudivisions agree to pay the fees set by the
Secretary pursuant to paragraph (8).’’.
(3) Section 205(r) of the Social Security Act is
amended by adding at the end a new paragraph as
follows: ‘‘(8) The Secretary shall establish fees for
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the disclosure of information pursuant to this sub-
section. Such fees shall be in amounts sufficient to
cover all costs (including indirect costs) associated
with the Secretary’s responsibilities under this sub-
section. Fees collected pursuant to this paragraph
shall remain available, without fiscal year limitation,
to the Secretary to cover the administrative costs of
carrying out this subsection.’’.
(e) TECHNICAL ASSISTANCE.—Section 205(r) of the
Social Security Act is amended by adding at the end (after
the paragraph added by subsection (d)(3)) the following
new paragraph:
‘‘(9) The Secretary may provide to any Federal or
State agency that provides Federally funded benefits,
upon the request of such agency, technical assistance on
the effective collection, dissemination, and use of death in-
formation available under this subsection for the purpose
of ensuring that such benefits are not erroneously paid
to deceased individuals.’’.
(f) TECHNICAL AMENDMENT.—Section 205(r) of the
Social Security Act is amended by adding at the end (after
the paragraph added by subsection (e)) the following new
paragraph:
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‘‘(10) For purposes of this subsection, the term ‘Fed-
erally funded benefit’ means any payment funded in whole
or in part by the Federal Government.’’.
(g) EFFECTIVE DATE.—Except as otherwise pro-
vided, the amendments made by this section shall take ef-
fect upon their enactment.
Subtitle D—Continuing Disability
Reviews
SEC. 5301. CONTINUING DISABILITY REVIEWS.
Section 201(g)(1)(A) of the Social Security Act is
amended by adding at the end of the paragraph the follow-
ing sentence: ‘‘From funds provided pursuant to this sub-
paragraph for the following fiscal years, not less than the
following amounts shall be available only for conducting
continuing disability reviews and related workloads: for
fiscal year 1994, $46 million; for fiscal year 1995,
$47,200,000; for fiscal year 1996, $48,500,000; for fiscal
year 
1997, 
$49,800,000; 
for 
fiscal 
year 
1998,
$51,100,000; and for fiscal year 1999, $52,500,000.’’.
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TITLE 
VI—DEPARTMENT 
OF
HOUSING AND URBAN DEVEL-
OPMENT
Subtitle A—Multifamily Property
Disposition
SEC. 6001. MULTIFAMILY PROPERTY DISPOSITION.
(a) FINDINGS.—The Congress finds that—
(1) the portfolio of multifamily housing project
mortgages insured by the FHA is severely troubled
and at risk of default, requiring the Secretary to in-
crease loss reserves from $5,500,000,000 in 1991 to
$11,900,000,000 in 1992 to cover estimated future
losses;
(2) the inventory of multifamily housing
projects owned by the Secretary has more than tri-
pled since 1989, and, by the end of 1993, may ex-
ceed 75,000 units;
(3) the cost to the Federal Government of own-
ing and maintaining multifamily housing projects es-
calated to approximately $250,000,000 in fiscal year
1992;
(4) the inventory of multifamily housing
projects subject to mortgages held by the Secretary
has increased dramatically, to more than 2,400
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mortgages, and approximately half of these mort-
gages, with over 230,000 units, are delinquent;
(5) the inventory of insured and formerly in-
sured multifamily housing projects is rapidly deterio-
rating, endangering tenants and neighborhoods;
(6) over 5 million families today have a critical
need for housing that is affordable and habitable;
and
(7) the current statutory framework governing
the disposition of multifamily housing projects effec-
tively impedes the Government’s ability to dispose of
properties, protect tenants, and ensure that projects
are maintained over time.
(b) MANAGEMENT AND DISPOSITION OF MULTIFAM-
ILY HOUSING PROJECTS.—Section 203 of the Housing
and Community Development Amendments of 1978 (12
U.S.C. 1701z-11) is amended to read as follows:
‘‘SEC. 203. MANAGEMENT AND DISPOSITION OF MULTIFAM-
ILY HOUSING PROJECTS.
‘‘(a) GOALS.—The Secretary of Housing and Urban
Development (hereafter in this section referred to as the
‘Secretary’) shall manage or dispose of multifamily hous-
ing projects that are owned by the Secretary or that are
subject to a mortgage held by the Secretary in a manner
that—
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‘‘(1) is consistent with the National Housing
Act and this section;
‘‘(2) will protect the financial interests of the
Federal Government; and
‘‘(3) will, in the least costly fashion among rea-
sonable available alternatives, further the goals of—
‘‘(A) preserving housing so that it can re-
main available to and affordable by low-income
persons;
‘‘(B) preserving and revitalizing residential
neighborhoods;
‘‘(C) maintaining existing housing stock in
a decent, safe, and sanitary condition;
‘‘(D) minimizing the involuntary displace-
ment of tenants;
‘‘(E) maintaining housing for the purpose
of providing rental housing, cooperative hous-
ing, and homeownership opportunities for low-
income persons; and
‘‘(F) minimizing the need to demolish mul-
tifamily housing projects.
The Secretary, in determining the manner in which a
project is to be managed or disposed of, may balance com-
peting goals relating to individual projects in a manner
that will further the purposes of this section.
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‘‘(b) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
‘‘(1) MULTIFAMILY
HOUSING
PROJECT.—The
term ‘multifamily housing project’ means any multi-
family rental housing project which is, or prior to
acquisition by the Secretary was, assisted or insured
under the National Housing Act, or was subject to
a loan under section 202 of the Housing Act of
1959.
‘‘(2) SUBSIDIZED
PROJECT.—The term ‘sub-
sidized project’ means a multifamily housing project
receiving any of the following types of assistance im-
mediately prior to the assignment of the mortgage
on such project to, or the acquisition of such mort-
gage by, the Secretary:
‘‘(A) Below market interest rate mortgage
insurance 
under 
the 
proviso 
of 
section
221(d)(5) of the National Housing Act.
‘‘(B) Interest reduction payments made in
connection with mortgages insured under sec-
tion 236 of the National Housing Act.
‘‘(C) Direct loans made under section 202
of the Housing Act of 1959.
‘‘(D) Assistance in the form of—
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‘‘(i) rent supplement payments under
section 101 of the Housing and Urban De-
velopment Act of 1965;
‘‘(ii) housing assistance payments
made under section 23 of the United
States Housing Act of 1937 (as in effect
before January 1, 1975); or
‘‘(iii) housing assistance payments
made under section 8 of the United States
Housing Act of 1937 (excluding payments
made for tenant-based assistance under
section 8),
if (except for purposes of section 183(c) of the
Housing and Community Development Act of
1987) such assistance payments are made to
more than 50 percent of the units in the
project.
‘‘(3) FORMERLY
SUBSIDIZED
PROJECT.—The
term ‘formerly subsidized project’ means a multi-
family housing project owned by the Secretary that
was a subsidized project immediately prior to its ac-
quisition by the Secretary.
‘‘(4) 
UNSUBSIDIZED
PROJECT.—The 
term
‘unsubsidized project’ means a multifamily housing
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project owned by the Secretary that is not a sub-
sidized project or a formerly subsidized project.
‘‘(c) MANAGEMENT
OR
DISPOSITION
OF
PROP-
ERTY.—
‘‘(1) DISPOSITION TO PURCHASERS.—The Sec-
retary is authorized, in carrying out this section, to
dispose of a multifamily housing project owned by
the Secretary on a negotiated, competitive bid, or
other basis, on such terms as the Secretary deems
appropriate considering the low-income character of
the project and the requirements of subsection (a),
to a purchaser determined by the Secretary to be ca-
pable of—
‘‘(A) satisfying the conditions of the dis-
position;
‘‘(B) implementing a sound financial and
physical management program that is designed
to enable the project to meet anticipated oper-
ating and repair expenses to ensure that the
project will remain in decent, safe, and sanitary
condition;
‘‘(C) responding to the needs of the ten-
ants and working cooperatively with tenant or-
ganizations;
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‘‘(D) providing adequate organizational
staff and financial resources to the project; and
‘‘(E) meeting such other requirements as
the Secretary may determine.
‘‘(2) CONTRACTING
FOR
MANAGEMENT
SERV-
ICES.—The Secretary is authorized, in carrying out
this section—
‘‘(A) to contract for management services
for a multifamily housing project that is owned
by the Secretary (or for which the Secretary is
mortgagee in possession), on a negotiated, com-
petitive bid, or other basis at a price deter-
mined by the Secretary to be reasonable, with
a manager the Secretary has determined is ca-
pable of—
‘‘(i) implementing a sound financial
and physical management program that is
designed to enable the project to meet an-
ticipated operating and maintenance ex-
penses to ensure that the project will re-
main in decent, safe, and sanitary condi-
tion;
‘‘(ii) responding to the needs of the
tenants and working cooperatively with
tenant organizations;
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‘‘(iii) providing adequate organiza-
tional, staff, and other resources to imple-
ment a management program determined
by the Secretary; and
‘‘(iv) meeting such other requirements
as the Secretary may determine; and
‘‘(B) to require the owner of a multifamily
housing project that is subject to a mortgage
held by the Secretary to contract for manage-
ment services for the project in the manner de-
scribed in subparagraph (A).
‘‘(d) MAINTENANCE OF HOUSING PROJECTS.—
‘‘(1) HOUSING PROJECTS OWNED BY THE SEC-
RETARY.—In the case of multifamily housing
projects that are owned by the Secretary (or for
which the Secretary is mortgagee in possession), the
Secretary shall—
‘‘(A) to the greatest extent possible, main-
tain all such occupied projects in a decent, safe,
and sanitary condition;
‘‘(B) to the greatest extent possible, main-
tain full occupancy in all such projects; and
‘‘(C) maintain all such projects for pur-
poses of providing rental or cooperative hous-
ing.
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‘‘(2) HOUSING PROJECTS SUBJECT TO A MORT-
GAGE HELD BY THE SECRETARY.—In the case of
any multifamily housing project that is subject to a
mortgage held by the Secretary, the Secretary shall
require the owner of the project to carry out the re-
quirements of paragraph (1).
‘‘(e) REQUIRED ASSISTANCE.—In carrying out the
goal specified in subsection (a)(3)(A), the Secretary shall
take not less than one of the following actions:
‘‘(1) CONTRACT WITH OWNER.—Enter into con-
tracts under section 8 of the United States Housing
Act of 1937, to the extent budget authority is avail-
able, with owners of multifamily housing projects
that are acquired by a purchaser other than the Sec-
retary at foreclosure or after sale by the Secretary.
‘‘(A) SUBSIDIZED
OR
FORMERLY
SUB-
SIDIZED PROJECTS RECEIVING CERTAIN ASSIST-
ANCE.—In the case of a subsidized or formerly
subsidized project referred to in subparagraphs
(A) through (C) of subsection (b)(2)—
‘‘(i) the contract shall be sufficient to
assist at least all units covered by an as-
sistance contract under any of the authori-
ties referred to in subsection (b)(2)(D) be-
fore acquisition, unless the Secretary acts
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pursuant to the provisions of subparagraph
(C);
‘‘(ii) in the case of units requiring
project-based rental assistance pursuant to
this paragraph that are occupied by fami-
lies who are not eligible for assistance
under section 8, a contract under this sub-
paragraph shall also provide that when a
vacancy occurs, the owner shall lease the
available unit to a family eligible for assist-
ance under section 8; and
‘‘(iii) the Secretary shall take actions
to ensure the availability and affordability,
as defined in paragraph (3)(B), for the re-
maining useful life of the project, as de-
fined by the Secretary, of any unit located
in any project referred to in subparagraphs
(A) through (C) of subsection (b)(2) that
does not otherwise receive project-based as-
sistance under this subparagraph. To carry
out this clause, the Secretary may require
purchasers to establish use or rent restric-
tions maintaining affordability, as defined
in paragraph (3)(B).
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‘‘(B) SUBSIDIZED
OR
FORMERLY
SUB-
SIDIZED PROJECTS RECEIVING OTHER ASSIST-
ANCE.—In the case of a subsidized or formerly
subsidized project referred to in subsection
(b)(2)(D)—
‘‘(i) the contract shall be sufficient to
assist at least all units in the project that
are covered, or were covered immediately
before foreclosure on or acquisition of the
project by the Secretary, by an assistance
contract under any of the authorities re-
ferred to in such subsection, unless the
Secretary acts pursuant to provisions of
subparagraph (C); and
‘‘(ii) in the case of units requiring
project-based rental assistance pursuant to
this paragraph that are occupied by fami-
lies who are not eligible for assistance
under section 8, a contract under this
paragraph shall also provide that when a
vacancy occurs, the owner shall lease the
available unit to a family eligible for assist-
ance under section 8.
‘‘(C) EXCEPTIONS TO SUBPARAGRAPHS (A)
AND (B).—In lieu of providing project-based as-
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sistance under subparagraph (A) or (B), the
Secretary 
may 
require 
certain 
units 
in
unsubsidized projects to contain use restrictions
providing that such units will be available to
and affordable by very low-income families for
the remaining useful life of the project, as de-
fined by the Secretary, if—
‘‘(i) the Secretary matches any reduc-
tion in units otherwise required to be as-
sisted with project-based assistance under
subparagraph (A) or (B) with at least an
equivalent increase in units made afford-
able to very low-income persons within
unsubsidized projects;
‘‘(ii) low-income tenants residing in
units otherwise requiring project-based as-
sistance under subparagrph (A) or (B)
upon disposition receive section 8 tenant-
based assistance; and
‘‘(iii) the units described in clause (i)
are located within the same market area.
‘‘(D) 
CONTRACT
REQUIREMENTS
FOR
UNSUBSIDIZED
PROJECTS.—Notwithstanding
actions taken pursuant to subparagraph (C), in
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unsubsidized projects, the contract shall at least
be sufficient to provide—
‘‘(i) project-based rental assistance for
all units that are covered or were covered
immediately before foreclosure or acquisi-
tion by an assistance contract under—
‘‘(I) section 8(b)(2) of the United
States Housing Act of 1937 (as such
section existed before October 1,
1983) (new construction and substan-
tial rehabilitation); section 8(b) of
such Act (property disposition); sec-
tion 8(d)(2) of such Act (project-
based certificates); section 8(e)(2) of
such Act (moderate rehabilitation);
section 23 of such Act (as in effect
before January 1, 1975); or section
101 of the Housing and Urban Devel-
opment Act of 1965 (rent supple-
ments); or
‘‘(II) section 8 of the United
States Housing Act of 1937, following
conversion from section 101 of the
Housing and Urban Development Act
of 1965; and
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‘‘(ii) tenant-based assistance under
section 8 of the United States Housing Act
of 1937 for tenants currently residing in
units that were covered by an assistance
contract under the Loan Management Set-
Aside program under section 8(b) of the
United States Housing Act of 1937 imme-
diately before foreclosure or acquisition of
the project by the Secretary.
‘‘(2) ANNUAL CONTRIBUTION CONTRACTS.—In
the case of multifamily housing projects that are ac-
quired by a purchaser other than the Secretary at
foreclosure or after sale by the Secretary, enter into
annual contribution contracts with public housing
agencies to provide tenant-based assistance under
section 8 of the United States Housing Act of 1937
to all low-income families who are eligible for such
assistance on the date that the project is acquired
by the purchaser. The Secretary shall take action
under this paragraph only after making a deter-
mination that there is available in the area an ade-
quate supply of habitable affordable housing for low-
income families. Actions taken pursuant to this
paragraph may be taken in connection with not
more than 10 percent of the aggregate number of
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units in subsidized or formerly subsidized projects
disposed of by the Secretary annually.
‘‘(3) OTHER ASSISTANCE.—
‘‘(A) IN
GENERAL.—In accordance with
the authority provided under the National
Housing Act, reduce the selling price, apply use
or rent restrictions on certain units, or provide
other financial assistance to the owners of mul-
tifamily housing projects that are acquired by a
purchaser other than the Secretary at fore-
closure, or after sale by the Secretary, on terms
which will ensure that—
‘‘(i) at least those units otherwise re-
quired to receive project-based section 8
assistance pursuant to subparagraphs (A),
(B), or (D) of paragraph (1) are available
to and affordable by low-income persons;
and
‘‘(ii) for the remaining useful life of
the project, as defined by the Secretary,
there shall be in force such use or rent re-
strictions as the Secretary may prescribe.
‘‘(B) DEFINITION.—A unit shall be consid-
ered affordable under this paragraph if—
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‘‘(i) for very low-income tenants, the
rent for such unit does not exceed 30 per-
cent of 50 percent of the area median in-
come, as determined by the Secretary, with
adjustments for family size; and
‘‘(ii) for low-income tenants other
than very low-income tenants, the rent for
such unit does not exceed 30 percent of 80
percent of the area median income, as de-
termined by the Secretary, with adjust-
ments for family size.
‘‘(C) VERY
LOW-INCOME
TENANTS.—The
Secretary shall provide assistance under section
8 of the United States Housing Act of 1937 to
any very low-income tenant currently residing
in a unit otherwise required to receive project-
based assistance under section 8, pursuant to
subparagraph (A), (B), or (D) of paragraph
(1), if the rents charged such tenants as a re-
sult of actions taken pursuant to this para-
graph exceed the amount payable as rent under
section 3(a) of the United States Housing Act
of 1937.
‘‘(4) TRANSFER FOR USE UNDER OTHER PRO-
GRAMS OF THE SECRETARY.—
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‘‘(A) IN GENERAL.—Enter into an agree-
ment providing for the transfer of a multifamily
housing project—
‘‘(i) to a public housing agency for use
of the project as public housing; or
‘‘(ii) to an owner or another appro-
priate entity for use of the project under
section 202 of the Housing Act of 1959 or
under section 811 of the Cranston-Gon-
zalez National Affordable Housing Act.
‘‘(B) REQUIREMENTS FOR AGREEMENT.—
The agreement described in subparagraph (A)
shall—
‘‘(i) contain such terms, conditions,
and limitations as the Secretary deter-
mines appropriate, including requirements
to assure use of the project under the pub-
lic housing, section 202, and section 811
programs; and
‘‘(ii) ensure that no current tenant
will be displaced as a result of actions
taken under this paragraph.
‘‘(f) OTHER ASSISTANCE.—In addition to the actions
authorized by subsection (e), the Secretary may take any
of the following actions: