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from time under their control on the passage of a
resolution, allot additional time to any Senator dur-
ing the consideration of any debatable motion or ap-
peal.
(D) A motion in the Senate to further limit de-
bate on a resolution, debatable motion, or appeal is
not debatable. No amendment to, or motion to re-
commit, a resolution is in order in the Senate.
(4) In the case of a resolution, if prior to the
passage by one House of a resolution of that House,
that House receives a resolution with respect to the
same matter from the other House, then—
(A) the procedure in that House shall be
the same as if no resolution had been received
from the other House; but
(B) the vote on final passage shall be on
the resolution of the other House.
(5) For purposes of this subsection, the term
‘‘joint resolution’’ means only a joint resolution of
the 2 Houses of Congress, the matter after the re-
solving clause of which is as follows: ‘‘That the Con-
gress disapproves the action of the President under
section 628(c) of the Treasury, Postal Service, and
General Government Appropriations Act, 1997, no-
tice of which was submitted to the Congress on
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lllllll.’’, with the blank space being filled
with the appropriate date.
(d) APPLICABILITY.—This section—
(1) shall not apply to any action taken as part
of the program of assistance to Mexico announced
by the President on January 31, 1995; and
(2) shall remain in effect through fiscal year
1997.
SEC. 629. (a) TECHNICAL AMENDMENT.—Section
640 of Public Law 104–52 (109 Stat. 513) is amended
by striking ‘‘Service performed’’ and inserting ‘‘Hereafter,
service performed’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect as if included in Public
Law 104–52 on the date of its enactment.
SEC. 630. Notwithstanding any other provision of
law, no part of any appropriation contained in this Act
for any fiscal year shall be available for paying Sunday
premium or differential pay to any employee unless such
employee actually performed work during the time cor-
responding to such premium or differential pay.
SEC. 631. No part of any funds appropriated in this
or any other Act shall be used by an agency of the execu-
tive branch, other than for normal and recognized execu-
tive-legislative relationships, for publicity or propaganda
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purposes, and for the preparation, distribution or use of
any kit, pamphlet, booklet, publication, radio, television or
film presentation designed to support or defeat legislation
pending before the Congress, except in presentation to the
Congress itself.
SEC. 632. (a) The United States Courthouse under
construction at 1030 Southwest 3d Avenue in Portland,
Oregon, shall be known and designated as the ‘‘Mark O.
Hatfield United States Courthouse’’.
(b) Any reference in a law, map, regulation, docu-
ment, paper, or other record of the United States to the
courthouse referred to in section 901 shall be deemed to
be a reference to the ‘‘Mark O. Hatfield United States
Courthouse’’.
(c) This section shall take effect on January 2, 1997.
SEC. 633. SURVIVOR ANNUITY RESUMPTION UPON
TERMINATION OF MARRIAGE.—(a) AMENDMENTS.—
(1) CIVIL SERVICE RETIREMENT SYSTEM.—Sec-
tion 8341(e) of title 5, United States Code, is
amended by adding at the end the following:
‘‘(4) If the annuity of a child under this subchapter
terminates under paragraph (3)(E) because of marriage,
then, if such marriage ends, such annuity shall resume
on the first day of the month in which it ends, but only
if—
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‘‘(A) any lump sum paid is returned to the
Fund; and
‘‘(B) that individual is not otherwise ineligible
for such annuity.’’.
(2) FEDERAL EMPLOYEES’ RETIREMENT SYS-
TEM.—Section 8443(b) of such title is amended by
adding at the end the following: ‘‘If the annuity of
a child under this subchapter terminates under sub-
paragraph (E) because of marriage, then, if such
marriage ends, such annuity shall resume on the
first day of the month in which it ends, but only if
any lump sum paid is returned to the Fund, and
that individual is not otherwise ineligible for such
annuity.’’.
(3) FEDERAL
EMPLOYEES
HEALTH
BENE-
FITS.—Section 8908 of title 5, United States Code,
is amended by adding at the end of the following
new subsection:
‘‘(d) A surviving child whose survivor annuity under
section 8341(e) or 8443(b) was terminated and is later
restored under paragraph (4) of section 8341(e) or the
last sentence of section 8443(b) may, under regulations
prescribed by the Office, enroll in a health benefits plan
described by section 8903 or 8903a if such surviving child
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was covered by any such plan immediately before such an-
nuity was terminated.’’.
(b) APPLICABILITY.—The amendments made by sub-
section (a) shall apply with respect to any termination of
marriage taking effect before, on, or after the date of en-
actment of this Act, except that benefits shall be payable
only with respect to amounts accruing for periods begin-
ning on the first day of the month beginning after the
later of such termination of marriage or such date of en-
actment.
SEC. 634. AVAILABILITY OF ANNUAL LEAVE FOR
EMPLOYEES AFFECTED BY REDUCTION IN FORCE.—Sec-
tion 6302 of title 5, United States Code, is amended by
adding at the end of the following new subsection:
‘‘(g) An employee who is being involuntarily sepa-
rated from an agency due to a reduction in force or trans-
fer of function under subchapter I of chapter 35 may elect
to use annual leave to the employee’s credit to remain on
the agency’s rolls after the date the employee would other-
wise have been separated if, and only to the extent that,
such additional time in a pay status will enable the em-
ployee to qualify for an immediate annuity under section
8336, 8412, 8414, or to qualify to carry health benefits
coverage into retirement under section 8905(b).’’.
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SEC. 635. Section 207(e)(6)(B) of title 18, United
States Code, is amended by striking ‘‘level V of the Execu-
tive Schedule’’ and inserting ‘‘level 5 of the Senior Execu-
tive Service’’.
SEC. 636. REIMBURSEMENTS RELATING TO PROFES-
SIONAL LIABILITY INSURANCE.—(a) AUTHORITY.—Not-
withstanding any other provision of law, amounts appro-
priated by this Act (or any other Act for fiscal year 1997
or any fiscal year thereafter) for salaries and expenses
may be used to reimburse any qualified employee for not
to exceed one-half the costs incurred by such employee for
professional liability insurance. A payment under this sec-
tion shall be contingent upon the submission of such infor-
mation or documentation as the employing agency may re-
quire.
(b) QUALIFIED EMPLOYEE.—For purposes of this
section, the term ‘‘qualified employee’’ means an agency
employee whose position is that of—
(1) a law enforcement officer; or
(2) a supervisor or management official.
(c) DEFINITIONS.—For purposes of this section—
(1) the term ‘‘agency’’ means an Executive
agency, as defined by section 105 of title 5, United
States Code, and any agency of the Legislative
Branch of Government including any office or com-
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mittee of the Senate or the House of Representa-
tives;
(2) the term ‘‘law enforcement officer’’ means
an employee, the duties of whose position are pri-
marily the investigation, apprehension, prosecution,
or detention of individuals suspected or convicted of
offenses against the criminal laws of the United
States, including any law enforcement officer under
section 8331(20) or 8401(17) of such title 5, or
under section 4823 of title 22, United States Code;
(3) the terms ‘‘supervisor’’ and ‘‘management
official’’ have the respective meanings given them by
section 7103(a) of such title 5, and
(4) the term ‘‘professional liability insurance’’
means insurance which provides coverage for—
(A) legal liability for damages due to inju-
ries to other persons, damage to their property,
or other damage or loss to such other persons
(including the expenses of litigation and settle-
ment) resulting from or arising out of any
tortious act, error, or omission of the covered
individual (whether common law, statutory, or
constitutional) while in the performance of such
individual’s official duties as a qualified em-
ployee; and
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(B) the cost of legal representation for the
covered individual in connection with any ad-
ministrative or judicial proceeding (including
any investigation or disciplinary proceeding) re-
lating to any act, error, or omission of the cov-
ered individual while in the performance of such
individual’s official duties as a qualified em-
ployee, and other legal costs and fees relating
to any such administrative or judicial proceed-
ing.
(d) APPLICABILITY.—The amendments made by this
section shall take effect on the date of the enactment of
this Act and shall apply thereafter.
SEC. 637. For purposes of each provision of law
amended by section 704(a)(2) of the Ethics Reform Act
of 1989 (5 U.S.C. 5318 note), no adjustment under sec-
tion 5303 of title 5, United States Code, shall be consid-
ered to have taken effect in fiscal year 1997 in the rates
of basic pay for the statutory pay systems.
SEC. 638. For FY 1997, the Secretary of the
Treasury is authorized to use funds made available to the
FSLIC Resolution Fund under P.L. 103–327, not to ex-
ceed $26,100,000, to reimburse the Department of Jus-
tice for the reasonable expenses of litigation that are in-
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curred in the defense of claims against the U.S. arising
from FIRREA and its implementation.
SEC. 639. Section 608 of Public Law 104–52 is
amended in the first sentence by inserting before the pe-
riod, ‘‘, including Federal records disposed of pursuant to
a records schedule’’.
SEC. 640. In reviewing and analyzing the contracting
out, outsourcing or privatization of business and adminis-
trative functions, and in implementing 40 U.S.C. sections
1413 and 1423, and other provisions, in title LI of the
National Defense Authorization Act for fiscal year 1996
(the Information Technology Management Reform Act)—
(1) the Director of the Office of Management
and Budget and the heads of the executive agencies
may have studies, analyses, reviews and other man-
agement assistance performed by the private sector;
(2) the reviews, analyses, and studies called for
by 40 U.S.C. section 1413(b)(2) (B) and (C) shall
be completed and reported to the Agency Head with-
in 180 days, or less measured from when a study
analysis or review is initiated unless the Agency
Head determines additional time is needed;
(3) in accordance with principles and rules gov-
erning organizational conflicts of interest, persons
involved in a particular study may not compete for
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any work that is to be or is outsourced as a result
of that study; and
(4) this section will apply with respect to stud-
ies occurring on or after the date of enactment of
this subsection and completed before September 1,
1999 and the Comptroller General of the United
States shall review and provide an assessment of
this program by January 1, 1999.
SEC. 641. (a) SECTION 1—AUTHORIZATION OF AP-
PROPRIATIONS.—Section 8(a)(1) of the Whistleblower
Protection Act of 1989 (5 U.S.C. 5509 note, Public Law
101–12, April 10, 1989, 103 Stat. 34, as amended Public
Law 103–424, Section 1, October 29, 1994, 108 Stat.
4361), is amended by striking the words: ‘‘1993, 1994,
1995, 1996, and 1997,’’ and inserting in lieu thereof
‘‘1998, 1999, 2000, 2001, and 2002’’.
(b) SECTION 2—EFFECTIVE DATE.—This Act shall
take effect on October 1, 1998.
SEC. 642. (a) SECTION 1.—AUTHORIZATION OF AP-
PROPRIATIONS.—Section 8(a)(1) of the Whistleblower
Protection Act of 1989 (5 U.S.C. 5509 note; Public Law
103–424; 103 Stat. 34) is amended by striking out:
‘‘1993, 1994, 1995, 1996, and 1997,’’ and inserting in
lieu thereof ‘‘1998, 1999, 2000, 2001, and 2002’’.
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(b) SECTION 2—EFFECTIVE DATE.—This Act shall
take effect on October 1, 1998.
SEC. 643. MODIFICATIONS OF NATIONAL COMMIS-
SION
ON RESTRUCTURING
THE INTERNAL REVENUE
SERVICE.—(a) QUORUM.—Paragraph (4) of section
637(b) of the Treasury, Postal Service, and General Gov-
ernment Appropriations Act, 1996 (Public Law 104–52,
109 Stat. 510) is amended by striking ‘‘Seven’’ and insert-
ing ‘‘Nine’’.
(b) CO-CHAIRS.—
(1) IN
GENERAL.—Paragraph (3) of section
637(b) of such Act is amended—
(A) by striking ‘‘a Chairman’’ and insert-
ing ‘‘Co-Chairs’’, and
(B) by striking ‘‘Chairman’’ in the heading
and inserting ‘‘Co-Chairs’’.
(2) CONFORMING
AMENDMENTS.—(A) Para-
graph (5)(B) of section 637(b) of such Act is
amended by striking ‘‘a Chairman’’ and inserting
‘‘Co-Chairs’’.
(B) Subsections (b)(4), (d)(1)(B), (d)(3), and
(e)(1) of section 637 of such Act are each amended
by striking ‘‘Chairman’’ each place it appears and
inserting ‘‘Co-Chairs’’.
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(c) GIFTS.—Section 637(d) of such Act is amended
by adding at the end the following new paragraph:
‘‘(6) GIFTS.—The Commission may accept, use,
and dispose of gifts or donations of services or prop-
erty in carrying out its duties under this section.’’
(d) TRAVEL EXPENSES.—Section 637(f)(2) of such
Act is amended by striking ‘‘shall’’ and inserting ‘‘may’’.
(e) TIME FOR FILING REPORT.—
(1) IN GENERAL.—Paragraph (1) of section 637(g)
of such Act is amended by striking ‘‘one year’’ and insert-
ing ‘‘15 months’’.
(2) CONFORMING AMENDMENT.—Subparagraph (A)
of section 637(c)(1) of such Act is amended by striking
‘‘one year’’ and inserting ‘‘15 months’’.
(f) EFFECTIVE DATE.—The amendments made by
this section shall take effect as if included in the provisions
of the Treasury, Postal Service, and General Government
Appropriations Act, 1996.
SEC. 644. (a) IN GENERAL.—Section 202(a) of title
39, United States Code, is amended by striking ‘‘$10,000
a year’’ and inserting ‘‘$30,000 a year’’.
(b) EFFECTIVE DATE.—Subsection (a) shall take ef-
fect at the beginning of the next applicable pay period be-
ginning after the date of the enactment of this Act.
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SEC. 645. (a) IN GENERAL.—No later than Septem-
ber 30, 1997, the Director of the Office of Management
and Budget shall submit to the Congress a report that
provides—
(1) estimates of the total annual costs and ben-
efits of Federal regulatory programs, including
quantitative and nonquantitative measures of regu-
latory costs and benefits;
(2) estimates of the costs and benefits (includ-
ing quantitative and nonquantitative measures) of
each rule that is likely to have a gross annual effect
on the economy of $100,000,000 or more in in-
creased costs;
(3) an assessment of the direct and indirect im-
pacts of Federal rules on the private sector, State
and local government, and the Federal Government;
and
(4) recommendations from the Director and a
description of significant public comments to reform
or eliminate any Federal regulatory program or pro-
gram element that is inefficient, ineffective, or is not
a sound use of the Nation’s resources.
(b) NOTICE.—The Director shall provide public no-
tice and an opportunity to comment on the report under
subsection (a) before the report is issued in final form.
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SEC. 646. Subsection (b) of section 404 of Public
Law 103–356 is amended by deleting ‘‘September 30,
1997’’ and inserting ‘‘December 31, 1999’’.
SEC. 647. (a) Notwithstanding any other provision
of law, the Secretary shall, on behalf of the United States,
transfer to the University of Miami, without charge, title
to the real property and improvements that as of the date
of the enactment of this Act constitute the Federal facility
known as the Perrine Primate Center, subject to the con-
dition that, during the 10-year period beginning on the
date of the transfer—
(1) the University will provide for the continued
use of the real property and improvements as an
animal research facility, including primates, and
such use will be the exclusive use of the property
(with such incidental exceptions as the Secretary
may approve); or
(2) the real property and improvements will be
used for research-related purposes other than the
purpose specified in paragraph (1) (or for both of
such purposes), if the Secretary and the University
enter into an agreement accordingly.
(b) The conveyance under subsection (a) shall not be-
come effective unless the conveyance specifies that, if the
University of Miami engages in a material breach of the
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conditions specified in such subsection, title to the real
property and improvements involved reverts to the United
States at the election of the Secretary.
(c) The real property referred to in subsections (a)
and (b) is located in the county of Dade in the State of
Florida, and is a parcel consisting of the northernmost
30 acre-parcel of the area. The exact acreage and legal
description used for purposes of the transfer under sub-
section (a) shall be in accordance with a survey that is
satisfactory to the Secretary.
(d) For the purposes of this section—
(1) the term ‘‘Secretary’’ means the Secretary
of Health and Human Services; and
(2) the term ‘‘University of Miami’’ means the
University of Miami located in the State of Florida.
SEC. 648. (a) INCREASED PENALTIES FOR COUN-
TERFEITING VIOLATIONS.—Sections 474 and 474A of
title 18, United States Code, are amended by striking
‘‘class C felony’’ each place that term appears and insert-
ing ‘‘class B felony’’.
(b) CRIMINAL PENALTY FOR PRODUCTION, SALE,
TRANSPORTATION, POSSESSION OF FICTITIOUS FINAN-
CIAL INSTRUMENTS PURPORTING TO BE THOSE OF THE
STATES, OF POLITICAL SUBDIVISIONS, AND OF PRIVATE
ORGANIZATIONS.—
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(1) IN GENERAL.—Chapter 25 of title 18, Unit-
ed States Code, is amended by inserting after sec-
tion 513, the following new section:
‘‘§ 514. Fictitious obligations
‘‘(a) Whoever, with the intent to defraud—
‘‘(1) draws, prints, processes, produces, pub-
lishes, or otherwise makes, or attempts or causes the
same, within the United States;
‘‘(2) passes, utters, presents, offers, brokers, is-
sues, sells, or attempts or causes the same, or with
like intent possesses, within the United States; or
‘‘(3) utilizes interstate or foreign commerce, in-
cluding the use of the mails or wire, radio, or other
electronic communication, to transmit, transport,
ship, move, transfer, or attempts or causes the same,
to, from, or through the United States,
any false or fictitious instrument, document, or other item
appearing, representing, purporting, or contriving through
scheme or artifice, to be an actual security or other finan-
cial instrument issued under the authority of the United
States, a foreign government, a State or other political
subdivision of the United States, or an organization, shall
be guilty of a class B felony.
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‘‘(b) For purposes of this section, any term used in
this section that is defined in section 513(c) has the same
meaning given such term in section 513(c).
‘‘(c) The United States Secret Service, in addition to
any other agency having such authority, shall have author-
ity to investigate offenses under this section.’’.
(2) TECHNICAL AMENDMENT.—The analysis for
chapter 25 of title 18, United States Code, is
amended by inserting after the item relating to sec-
tion 513 the following:
‘‘514. Fictitious obligations.’’.
(c) PERIOD
OF EFFECT.—This section and the
amendments made by this section shall become effective
on the date of enactment of this Act and shall remain in
effect during each fiscal year following that date of enact-
ment.
SEC. 649. None of the funds appropriated by this Act
may be used by an agency to provide a Federal employee’s
home address to any labor organization except when it is
made known to the Federal official having authority to
obligate or expend such funds that the employee has au-
thorized such disclosure or that such disclosure has been
ordered by a court of competent jurisdiction.
SEC. 650. (a) No later than 45 days after the date
of the enactment of this Act, the Inspector General of each
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Federal department or agency that uses administratively
uncontrollable overtime in the pay of any employee shall—
(1) conduct an audit on the use of administra-
tively uncontrollable overtime by employees of such
department or agency, which shall include—
(A) an examination of the policies, extent,
costs, and other relevant aspects of the use of
administratively uncontrollable overtime at the
department or agency; and
(B) a determination of whether the eligi-
bility criteria of the department or agency and
payment of administratively uncontrollable over-
time comply with Federal statutory and regu-
latory requirements; and
(2) submit a report of the findings and conclu-
sions of such audit to—
(A) the Office of Personnel Management;
(B) the Governmental Affairs Committee
of the Senate; and
(C) the Government Reform and Oversight
Committee of the House of Representatives.
(b) No later than 30 days after the submission of the
report under subsection (a), the Office of Personnel Man-
agement shall issue revised guidelines to all Federal de-
partments and agencies that—
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(1) limit the use of administratively uncontrol-
lable overtime to employees meeting the statutory in-
tent of section 5545(c)(2) of title 5, United States
Code; and
(2) expressly prohibit the use of administra-
tively uncontrollable overtime for—
(A) customary or routine work duties; and
(B) work duties that are primarily admin-
istrative in nature, or occur in noncompelling
circumstances.
SEC. 651. Notwithstanding section 8116 of title 5,
United States Code, and in addition to any payment made
under 5 U.S.C. 8101 et seq., beginning in fiscal year 1997
and thereafter, the head of any department or agency is
authorized to pay from appropriations made available to
the department or agency a death gratuity to the personal
representative (as that term is defined by applicable law)
of a civilian employee of that department or agency whose
death resulted from an injury sustained in the line of duty
on or after August 2, 1990: Provided, That payments
made pursuant to this section, in combination with the
payments made pursuant to sections 8133(f) and 8134(a)
of such title 5 and section 312 of Public Law 103–332
(108 Stat. 2537), may not exceed a total of $10,000 per
employee.
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SEC. 653. (a) AUTHORIZATION.—The Secretary of
the Treasury is authorized to establish scientific certifi-
cation standards for explosives detection canines, and shall
provide, on a reimbursable basis, for the certification of
explosives detection canines employed by Federal agencies,
or other agencies providing explosives detection services at
airports in the United States.
(b) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated such sums as may be
necessary to carry out the purposes of this section.
SEC. 654. NATIONAL REPOSITORY FOR INFORMA-
TION ON EXPLOSIVES INCIDENTS AND ARSON.
(a) Section 846 of title 18, United States Code,
is amended by—
(1) designating the existing section as sub-
section (a); and
(2) by adding the following new subsection
(b) to read as follows:
‘‘(b) The Secretary is authorized to establish a
national repository of information on incidents in-
volving arson and the suspected criminal misuse of
explosives. All Federal agencies having information
concerning such incidents shall report the informa-
tion to the Secretary pursuant to such regulations as
deemed necessary to carry out the provisions of this
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subsection. The repository shall also contain infor-
mation on incidents voluntarily reported to the Sec-
retary by State and local authorities.’’.
(b) There is authorized to be appropriated such
sums as may be necessary to carry out the provi-
sions of this subsection.
SEC. 655. Section 5(c)(1) of Public Law 102–259 (20
U.S.C. 5603(c)(1)) is amended—
(1) in subparagraph (A)(iii), by striking ‘‘and’’
after the semicolon;
(2) in subparagraph (B), by striking the period
and inserting ‘‘; and’’; and
(3) by adding after subparagraph (B) the fol-
lowing:
‘‘(C) a Trustee may serve after the expiration
of the Trustee’s term until a successor has been cho-
sen.’’.
SEC. 656. Notwithstanding any other provision of
law, the Secretary of the Interior, through the Bureau of
Indian Affairs, may directly transfer to Indian tribes in
North and South Dakota portable housing units at the
Grand Forks Air Force base in North Dakota which have
been declared excess by the Department of Defense and
requested for transfer by the Department of the Interior.
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SEC. 657. Section 922(q) of title 18, United States
Code, is amended to read as follows:
‘‘(q)(1) The Congress finds and declares that—
‘‘(A) crime, particularly crime involving drugs
and guns, is a pervasive, nationwide problem;
‘‘(B) crime at the local level is exacerbated by
the interstate movement of drugs, guns, and crimi-
nal gangs;
‘‘(C) firearms and ammunition move easily in
interstate commerce and have been found in increas-
ing numbers in and around schools, as documented
in numerous hearings in both the Committee on the
Judiciary of the House of Representatives and the
Committee on the Judiciary of the Senate;
‘‘(D) in fact, even before the sale of a firearm,
the gun, its component parts, ammunition, and the
raw materials from which they are made have con-
siderably moved in interstate commerce;
‘‘(E) while criminals freely move from State to
State, ordinary citizens and foreign visitors may fear
to travel to or through certain parts of the country
due to concern about violent crime and gun violence,
and parents may decline to send their children to
school for the same reason;
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‘‘(F) the occurrence of violent crime in school
zones has resulted in a decline in the quality of edu-
cation in our country;
‘‘(G) this decline in the quality of education has
an adverse impact on interstate commerce and the
foreign commerce of the United States;
‘‘(H) States, localities, and school systems find
it almost impossible to handle gun-related crime by
themselves—even States, localities, and school sys-
tems that have made strong efforts to prevent, de-
tect, and punish gun-related crime find their efforts
unavailing due in part to the failure or inability of
other States or localities to take strong measures;
and
‘‘(I) the Congress has the power, under the
interstate commerce clause and other provisions of
the Constitution, to enact measures to ensure the in-
tegrity and safety of the Nation’s schools by enact-
ment of this subsection.
‘‘(2)(A) It shall be unlawful for any individual know-
ingly to possess a firearm that has moved in or that other-
wise affects interstate or foreign commerce at a place that
the individual knows, or has reasonable cause to believe,
is a school zone.
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‘‘(B) Subparagraph (A) does not apply to the posses-
sion of a firearm—
‘‘(i) on private property not part of school
grounds;
‘‘(ii) if the individual possessing the firearm is
licensed to do so by the State in which the school
zone is located or a political subdivision of the State,
and the law of the State or political subdivision re-
quires that, before an individual obtains such a li-
cense, the law enforcement authorities of the State
or political subdivision verify that the individual is
qualified under law to receive the license;
‘‘(iii) that is—
‘‘(I) not loaded; and
‘‘(II) in a locked container, or a locked
firearms rack that is on a motor vehicle;
‘‘(iv) by an individual for use in a program ap-
proved by a school in the school zone;
‘‘(v) by an individual in accordance with a con-
tract entered into between a school in the school
zone and the individual or an employer of the indi-
vidual;
‘‘(vi) by a law enforcement officer acting in his
or her official capacity; or
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‘‘(vii) that is unloaded and is possessed by an
individual while traversing school premises for the
purpose of gaining access to public or private lands
open to hunting, if the entry on school premises is
authorized by school authorities.
‘‘(3)(A) Except as provided in subparagraph (B), it
shall be unlawful for any person, knowingly or with reck-
less disregard for the safety of another, to discharge or
attempt to discharge a firearm that has moved in or that
otherwise affects interstate or foreign commerce at a place
that the person knows is a school zone.
‘‘(B) Subparagraph (A) does not apply to the dis-
charge of a firearm—
‘‘(i) on private property not part of school
grounds;
‘‘(ii) as part of a program approved by a school
in the school zone, by an individual who is partici-
pating in the program;
‘‘(iii) by an individual in accordance with a con-
tract entered into between a school in a school zone
and the individual or an employer of the individual;
or
‘‘(iv) by a law enforcement officer acting in his
or her official capacity.
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‘‘(4) Nothing in this subsection shall be construed as
preempting or preventing a State or local government
from enacting a statute establishing gun free school zones
as provided in this subsection.’’.
SEC. 658. GUN BAN FOR INDIVIDUALS CONVICTED OF A
MISDEMEANOR CRIME OF DOMESTIC VIO-
LENCE.
(a) DEFINITION.—Section 921(a) of title 18,
United States Code, is amended by adding at the end the
following:
‘‘(33)(A) Except as provided in subparagraph
(C), the term ‘misdemeanor crime of domestic vio-
lence’ means an offense that—
‘‘(i) is a misdemeanor under Federal or
State law; and
‘‘(ii) has, as an element, the use or at-
tempted use of physical force, or the threatened
use of a deadly weapon, committed by a current
or former spouse, parent, or guardian of the
victim, by a person with whom the victim
shares a child in common, by a person who is
cohabiting with or has cohabited with the victim
as a spouse, parent, or guardian, or by a person
similarly situated to a spouse, parent, or guard-
ian of the victim.
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‘‘(B)(i) A person shall not be considered to have
been convicted of such an offense for purposes of
this chapter, unless—
‘‘(I) the person was represented by counsel
in the case, or knowingly and intelligently
waived the right to counsel in the case; and
(II) in the case of a prosecution for an of-
fense described in this paragraph for which a
person was entitled to a jury trial in the juris-
diction in which the case was tried, either
(aa) the case was tried by a jury, or
(bb) the person knowingly and intel-
ligently waived the right to have the case
tried by a jury, by guilty plea or otherwise.
‘‘(ii) A person shall not be considered to have
been convicted of such an offense for purposes of
this chapter if the conviction has been expunged or
set aside, or is an offense for which the person has
been pardoned or has had civil rights restored (if the
law of the applicable jurisdiction provides for the
loss of civil rights under such an offense) unless the
pardon, expungement, or restoration of civil rights
expressly provides that the person may not ship,
transport, possess, or receive firearms.’’.
(b)PROHIBITIONS.—
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(1) Section 922(d) of such title is amended—
(A) by striking ‘‘or’’ at the end of para-
graph (7);
(B) by striking the period at the end of
paragraph (8) and inserting ‘‘; or’’; and
(C) by inserting after paragraph (8) the
following:
‘‘(9) has been convicted in any court of a mis-
demeanor crime of domestic violence.’’.
(2) Section 922(g) of such title is amended—
(A) by striking ‘‘or’’ at the end of
paragrph (7);
(B) by striking the comma at the end of
paragraph (8) and inserting ‘‘; or’’; and
(C) by inserting after paragraph (8) the
following:
‘‘(9) who has been convicted in any court of a
misdemeanor crime of domestic violence,’’.
(3) Section 922(s)(3)(B)(i) of such title is
amended by inserting ‘‘, and has not been convicted
in any court of a misdemeanor crime of domestic vi-
olence’’ before this semicolon.
(c) GOVERNMENT ENTITIES NOT EXCEPTED.—
Section 925(a)(1) of such title is amended by inserting
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‘‘sections 922(d)(9) and 922(g)(9) and’’ after ‘‘except
for’’.
SEC. 659. THRIFT SAVINGS PLAN.
TITLE I—ADDITIONAL INVESTMENT FUNDS FOR THE
THRIFT SAVINGS PLAN
SEC. 101. SHORT TITLE.
This title may be cited as the ‘‘Thrift Savings Invest-
ment Funds Act of 1996’’.
SEC. 102. ADDITIONAL INVESTMENT FUNDS FOR THE
THRIFT SAVINGS PLAN.
Section 8438 of title 5, United States Code, is
amended—
(1) in subsection (a)—
(A) 
by 
redesignating 
paragraphs 
(5)
through (8) as paragraphs (6) through (9), re-
spectively;
(B) by inserting after paragraph (4) the
following new paragraph:
‘‘(5) the term ‘International Stock Index Invest-
ment Fund’ means the International Stock Index In-
vestment 
Fund 
established 
under 
subsection
(b)(1)(E);’’;
(C) in paragraph (8) (as redesignated by
subparagraph (A) of this paragraph) by strik-
ing out ‘‘and’’ at the end thereof;
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(D) in paragraph (9) (as redesignated by
subparagraph (A) of this paragraph)—
(i) 
by 
striking 
out 
‘‘paragraph
(7)(D)’’ in each place it appears and in-
serting in each such place ‘‘paragraph
(8)(D)’’; and
(ii) by striking out the period and in-
serting in lieu thereof a semicolon and
‘‘and’’; and
(E) by adding at the end thereof the fol-
lowing new paragraph:
‘‘(10) the term ‘Small Capitalization Stock
Index Investment Fund’ means the Small Capitaliza-
tion Stock Index Investment Fund established under
subsection (b)(1)(D).’’; and
(2) in subsection (b)—
(A) in paragraph (1)—
(i) in subparagraph (B) by striking
out ‘‘and’’ at the end thereof;
(ii) in subparagraph (C) by striking
out the period and inserting in lieu thereof
a semicolon; and
(iii) by adding at the end thereof the
following new subparagraphs:
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‘‘(D) a Small Capitalization Stock Index
Investment Fund as provided in paragraph (3);
and
‘‘(E) an International Stock Index Invest-
ment Fund as provided in paragraph (4).’’; and
(B) by adding at the end thereof the fol-
lowing new paragraphs:
‘‘(3)(A) The Board shall select an index which
is a commonly recognized index comprised of com-
mon stock the aggregate market value of which rep-
resents the United States equity markets excluding
the common stocks included in the Common Stock
Index Investment Fund.
‘‘(B) The Small Capitalization Stock Index In-
vestment Fund shall be invested in a portfolio de-
signed to replicate the performance of the index in
subparagraph (A). The portfolio shall be designed
such that, to the extent practicable, the percentage
of the Small Capitalization Stock Index Investment
Fund that is invested in each stock is the same as
the percentage determined by dividing the aggregate
market value of all shares of that stock by the ag-
gregate market value of all shares of all stocks in-
cluded in such index.
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‘‘(4)(A) The Board shall select an index which
is a commonly recognized index comprised of stock
the aggregate market value of which is a reasonably
complete representation of the international equity
markets excluding the United States equity markets.
‘‘(B) The International Stock Index Investment
Fund shall be invested in a portfolio designed to rep-
licate the performance of the index in subparagraph
(A). The portfolio shall be designed such that, to the
extent practicable, the percentage of the Inter-
national Stock Index Investment Fund that is in-
vested in each stock is the same as the percentage
determined by dividing the aggregate market value
of all shares of that stock by the aggregate market
value of all shares of all stocks included in such
index.’’.
SEC. 103. ACKNOWLEDGEMENT OF INVESTMENT RISK.
Section 8439(d) of title 5, United States Code, is
amended by striking out ‘‘Each employee, Member, former
employee, or former Member who elects to invest in the
Common Stock Index Investment Fund or the Fixed In-
come Investment Fund described in paragraphs (1) and
(3),’’ and inserting in lieu thereof ‘‘Each employee, Mem-
ber, former employee, or former Member who elects to in-
vest in the Common Stock Index Investment Fund, the
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Fixed Income Investment Fund, the International Stock
Index Investment Fund, or the Small Capitalization Stock
Index Investment Fund, defined in paragraphs (1), (3),
(5), and (10),’’.
SEC. 104. EFFECTIVE DATE.
This title shall take effect on the date of enactment
of this Act, and the Funds established under this title
shall be offered for investment at the earliest practicable
election period (described in section 8432(b) of title 5,
United States Code) as determined by the Executive Di-
rector in regulations.
TITLE II—THRIFT SAVINGS ACCOUNTS LIQUIDITY
SEC. 201. SHORT TITLE.
This title may be cited as the ‘‘Thrift Savings Plan
Act of 1996’’.
SEC. 202. NOTICE TO SPOUSES FOR IN-SERVICE WITHDRAW-
ALS; DE MINIMUS ACCOUNTS; CIVIL SERVICE
RETIREMENT SYSTEM PARTICIPANTS.
Section 8351(b) of title 5, United States Code, is
amended—
(1) in paragraph (5)—
(A) in subparagraph (B)—
(i) by striking out ‘‘An election,
change of election, or modification (relat-
ing to the commencement date of a de-
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ferred annuity)’’ and inserting in lieu
thereof ‘‘An election or change of election’’;
(ii) by inserting ‘‘or withdrawal’’ after
‘‘and a loan’’;
(iii) by inserting ‘‘and (h)’’ after
‘‘8433(g)’’;
(iv) by striking out ‘‘the election,
change of election, or modification’’ and in-
serting in lieu thereof ‘‘the election or
change of election’’; and
(v) by inserting ‘‘or withdrawal’’ after
‘‘for such loan’’; and
(B) in subparagraph (D)—
(i) by inserting ‘‘or withdrawals’’ after
‘‘of loans’’; and
(ii) by inserting ‘‘or (h)’’ after
‘‘8433(g)’’; and
(2) in paragraph (6)—
(A) by striking out ‘‘$3,500 or less’’ and
inserting in lieu thereof ‘‘less than an amount
that the Executive Director prescribes by regu-
lation’’; and
(B) by striking out ‘‘unless the employee
or Member elects, at such time and otherwise in
such manner as the Executive Director pre-
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scribes, one of the options available under sub-
section (b)’’.
SEC. 203. IN-SERVICE WITHDRAWALS; WITHDRAWAL ELEC-
TIONS, FEDERAL EMPLOYEES RETIREMENT
SYSTEM PARTICIPANTS.
(a) IN GENERAL.—Section 8433 of title 5, United
States Code, is amended—
(1) by striking out subsections (b) and (c) and
inserting in lieu thereof the following:
‘‘(b) Subject to section 8435 of this title, any em-
ployee or Member who separates from Government em-
ployment is entitled and may elect to withdraw from the
Thrift Savings Fund the balance of the employee’s or
Member’s account as—
‘‘(1) an annuity;
‘‘(2) a single payment;
‘‘(3) 2 or more substantially equal payments to
be made not less frequently than annually; or
‘‘(4) any combination of payments as provided
under paragraphs (1) through (3) as the Executive
Director may prescribe by regulation.
‘‘(c)(1) In addition to the right provided under sub-
section (b) to withdraw the balance of the account, an em-
ployee or Member who separates from Government service
and who has not made a withdrawal under subsection
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HR 4278 RDS
(h)(1)(A) may make one withdrawal of any amount as a
single payment in accordance with subsection (b)(2) from
the employee’s or Member’s account.
‘‘(2) An employee or Member may request that the
amount withdrawn from the Thrift Savings Fund in ac-
cordance with subsection (b)(2) be transferred to an eligi-
ble retirement plan.
‘‘(3) The Executive Director shall make each transfer
elected under paragraph (2) directly to an eligible retire-
ment plan or plans (as defined in section 402(c)(8) of the
Internal Revenue Code of 1986) identified by the em-
ployee, Member, former employee, or former Member for
whom the transfer is made.
‘‘(4) A transfer may not be made for an employee,
Member, former employee, or former Member under para-
graph (2) until the Executive Director receives from that
individual the information required by the Executive Di-
rector specifically to identify the eligible retirement plan
or plans to which the transfer is to be made.’’;
(2) in subsection (d)—
(A) in paragraph (1) by striking out ‘‘Sub-
ject to paragraph (3)(A)’’ and inserting in lieu
thereof ‘‘Subject to paragraph (3)’’;
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(B) by striking out paragraph (2) and re-
designating paragraph (3) as paragraph (2);
and
(C) in paragraph (2) (as redesignated
under subparagraph (B) of this paragraph)—
(i) in subparagraph (A) by striking
out ‘‘(A) by striking out ‘‘(A)’’; and
(ii) by striking out subparagraph (B);
(3) in subsection (f)(1)—
(A) by striking out ‘‘$3,500 or less’’ and
inserting in lieu thereof ‘‘less than an amount
that the Executive Director prescribes by regu-
lation; and
(B) by striking out ‘‘unless the employee
or Member elects, at such time and otherwise in
such manner as the Executive Director pre-
scribes, one of the options available under sub-
section (b), or’’ and inserting a comma;
(4) in subsection (f)(2)—
(A) by striking out ‘‘February 1’’ and in-
serting in lieu thereof ‘‘April 1’’;
(B) in subparagraph (A)—
(i) by striking out ‘‘65’’ and inserting
in lieu thereof ‘‘701⁄2’’; and
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(ii) by inserting ‘‘or’’ after the semi-
colon;
(C) by striking out subparagraph (B); and
(D) by redesignating subparagraph (C) as
subparagraph (B);
(5) in subsection (g)—
(A) in paragraph (1) by striking out ‘‘after
December 31, 1987, and’’, and by adding at the
end of the paragraph the following sentence:
‘‘Before a loan is issued, the Executive Director
shall provide in writing the employee or Mem-
ber with appropriate information concerning the
cost of the loan relative to other sources of fi-
nancing, as well as the lifetime cost of the loan,
including the difference in interest rates be-
tween the funds offered by the Thrift Savings
Fund, and any other effect of such loan on the
employee’s or Member’s final account balance.’’;
and
(B) by striking out paragraph (2) and re-
designating paragraphs (3) through (5) as
paragraphs (2) through (4), respectively; and
(6) by adding after subsection (g) the following
new subsection:
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‘‘(h)(1) An employee or Member may apply, be-
fore separation, to the Board for permission to withdraw
an amount from the employee’s or Member’s account
based upon—
‘‘(A) the employee or Member having attained
age 591⁄2; or
‘‘(B) financial hardship.
‘‘(2) A withdrawal under paragraph (1)(A) shall
be available to each eligible participant one time only.
‘‘(3) A withdrawal under paragraph (1)(B) shall
be available only for an amount not exceeding the value
of that portion of such account which is attributable to
contributions made by the employee or Member under
section 8432(a) of this title.
‘‘(4) Withdrawals under paragraph (1) shall be
subject to such other conditions as the Executive Director
may prescribe by regulation.
‘‘(5) A withdrawal may not be made under this
subsection unless the requirements of section 8435(e) of
this title are satisfied.’’.
(b) INVALIDITY
OF
CERTAIN
PRIOR
ELEC-
TIONS.—Any election made under section 8433(b)(2) of
title 5, United States Code (as in effect before the effec-
tive date of this title), with respect to an annuity which
has not commenced before the implementation date of
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this title as provided by regulation by the Executive Di-
rector in accordance with section 207 of this title, shall
be invalid.
SEC. 204. SURVIVOR ANNUITIES FOR FORMER SPOUSES;
NOTICE TO FEDERAL EMPLOYEES RETIRE-
MENT SYSTEM SPOUSES FOR IN-SERVICE
WITHDRAWALS.
Section 8435 of title 5, United States Code, is
amended—
(1) in subsection (a)(1)(A)—
(A) by striking out ‘‘may make an election
under subsection (b)(3) or (b)(4) or section
8433 of this title or change an election pre-
viously made under subsection (b)(1) or (b)(2)
of such section’’ and inserting in lieu thereof
‘‘may withdraw all or part of a Thrift Savings
Fund account under subsection (b) (2), (3), or
(4) of section 8433 of this title or change a
withdrawal election’’; and
(B) by adding at the end thereof ‘‘A mar-
ried employee or Member (or former employee
or Member) may make a withdrawal from a
Thrift Savings Fund account under subsection
(c)(1) of section 8433 of this title only if the
employee or Member (or former employee or
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Member) satisfies the requirements of subpara-
graph (B).’’;
(2) in subsection (c)—
(A) in paragraph (1)—
(i) by striking out ‘‘An election,
change of election, or modification of the
commencement date of a deferred annuity’’
and inserting in lieu thereof ‘‘An election
or change of election’’; and
(ii) by striking out ‘‘modification, or transfer’’
and inserting in lieu thereof ‘‘or transfer’’; and
(B) in paragraph (2) in the matter follow-
ing subparagraph (B)(ii) by striking out ‘‘modi-
fication,’’;
(3) in subsection (e)—
(A) in paragraph (1)—
(i) in subparagraph (A)—
(I) by inserting ‘‘or withdrawal’’
after ‘‘A loan;’’;
(II) by inserting ‘‘and (h)’’ after
‘‘8433(g)’’; and
(III) by inserting ‘‘or with-
drawal’’ after ‘‘such loan’’;
(ii) in subparagraph (B) by inserting
‘‘or withdrawal’’ after ‘‘loan’’; and
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(iii) in subparagraph (C)—
(I) by inserting ‘‘or withdrawal’’
after ‘‘to a loan’’; and
(II) by inserting ‘‘or withdrawal’’
after ‘‘for such loan’’; and
(B) in paragraph (2)—
(i) by inserting ‘‘or withdrawal’’ after
‘‘loan’’; and
(ii) by inserting ‘‘and (h)’’ after
‘‘8344(g)’’; and
(4) in subsection (g)—
(A) by inserting ‘‘or withdrawals’’ after
‘‘loans’’; and
(B) 
by 
inserting 
‘‘and 
(h)’’ 
after
‘‘8344(g)’’.
SEC. 205. DE MINIMUS ACCOUNTS RELATING TO THE JUDI-
CIARY.
(a) JUSTICES AND JUDGES.—Section 8440a(b)(7)
of title 5, United States Code, is amended—
(1) by striking out ‘‘$3,500 or less’’ and insert-
ing in lieu thereof ‘‘less than an amount that the
Executive Director prescribes by regulation’’; and
(2) by striking out ‘‘unless the justice or judge
elects, at such time and otherwise in such manner
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as the Executive Director prescribes, one of the op-
tions available under section 8433(b)’’.
(b) BANKRUPTCY JUDGES AND MAGISTRATES.—
Section 8440b(b) of title 5, United States Code, is
amended—
(1) in paragraph (7) in the first sentence by in-
serting ‘‘of the distribution’’ after ‘‘equal to the
amount’’; and
(2) in paragraph (8)—
(A) by striking out ‘‘$3,500 or less’’ and
inserting in lieu thereof ‘‘less than an amount
that the Executive Director prescribes by regu-
lation’’; and
(B) by striking out ‘‘unless the bankruptcy
judge or magistrate elects, at such time and
otherwise in such manner as the Executive Di-
rector prescribes, one of the options available
under subsection (b)’’.
(c) FEDERAL CLAIMS JUDGES.—Section 8440c(b)
of title 5, United States Code, is amended—
(1) in paragraph (7) in the first sentence by in-
serting ‘‘of the distribution’’ after ‘‘equal to the
amount’’; and
(2) in paragraph (8)—
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(A) by striking out ‘‘$3,500 or less’’ and
inserting in lieu thereof ‘‘less than an amount
that the Executive Director prescribes by regu-
lation’’; and
(B) by striking out ‘‘unless the judge
elects, at such time and otherwise in such man-
ner as the Executive Director prescribes, one of
the options available under section 8433(b)’’.
SEC. 206. DEFINITION OF BASIC PAY.
(a) IN GENERAL.—(1) Section 8401(4) of title 5,
United States Code, is amended by striking out ‘‘except
as provided in subchapter III of this chapter,’’.
(2) Section 8431 of title 5, United States Code,
is repealed.
(b) 
TECHNICAL
AND
CONFORMING
AMEND-
MENTS.—(1) The table of sections for chapter 84 of title
5, United States Code, is amended by striking out the
item relating to section 8431.
(2) Section 5545a(h)(2)(A) of title 5, United
States Code, is amended by striking out ‘‘8431,’’.
(3) Section 615(f) of the Treasury, Postal Service,
and General Government Appropriations Act, 1996 (Pub-
lic Law 104–52; 109 Stat. 500; 5 U.S.C. 5343 note) is
amended by striking out ‘‘section 8431 of title 5, United
States Code,’’.
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SEC. 207. EFFECTIVE DATE.
This title shall take effect on the date of the en-
actment of this Act and withdrawals and elections as pro-
vided under the amendments made by this title shall be
made at the earliest practicable date as determined by
the Executive Director in regulations.
SEC. 660. Notwithstanding Section 613, inter-
agency financing is authorized to carry out the purposes
of the National Bioethics Advisory Commission.
SEC. 661. (a) DESIGNATION.—The United States
courthouse to be constructed at 111 South 18th Plaza,
Omaha, Nebraska, shall be known and designated as the
‘‘Roman L. Hruska United States Courthouse’’.
(b) REFERENCES.—Any reference in a law, map,
regulation, document, paper, or other record of the Unit-
ed States to the United States courthouse referred to in
section 1 shall be deemed to be a reference to the
‘‘Roman L. Hruska United States Courthouse’’.
SEC. 662. (a) PROVISIONS RELATING TO TITLE
39, UNITED STATES CODE.—
‘‘(1) APPOINTMENT AND REMOVAL OF INSPEC-
TOR
GENERAL.—Section 202 of title 39, United
States Code, is amended by adding at the end the
following:
‘‘(e)(1) The Governors shall appoint and shall
have the power to remove the Inspector General.
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‘‘(2) The Inspector General shall be appointed—
‘‘(A) for a term of 7 years;
‘‘(B) without regard to political affiliation; and
‘‘(C) solely on the basis of integrity and dem-
onstrated ability in accounting, auditing, financial
analysis, law, management analysis, public adminis-
tration, or investigations.
‘‘(3) The Inspector General may at any time be
removed upon the written concurrence of at least 7 Gov-
ernors, but only for cause. Nothing in this subsection
shall be considered to exempt the Governors from the re-
quirements of section 8G(e) of the Inspector General Act
of 1978.’’.
(2) DEFINITION.—Section 102 of title 39, Unit-
ed States Code, is amended—
(A) by striking ‘‘and’’ at the end of para-
graph (2);
(B) by striking the period at the end of
paragraph (3) and inserting ‘‘; and’’; and
(C) by adding at the end the following:
‘‘(4) ‘Inspector General’ means the Inspector
General appointed under section 202(e) of this
title.’’.
(3) SEPARATE ITEM IN ANNUAL BUDGET.—For
purposes of the fifth sentence of section 2009 of title
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39, United States Code, the operations of the Office
of Inspector General of the United States Postal
Service shall be considered a major type of activity.
(b) AMENDMENTS TO THE INSPECTOR GENERAL
ACT OF 1978.—
(1) GOVERNORS
AS
HEAD
OF
THE
POSTAL
SERVICE.—Section 8G(a)(4) of the Inspector Gen-
eral Act of 1978 (5 U.S.C. App.) is amended by
striking ‘‘except that’’ and all that follows through
the semicolon and inserting ‘‘except that—
‘‘(A) with respect to the National Science
Foundation, such term means the National
Science Board; and
‘‘(B) with respect to the United States
Postal Service, such term means the Governors
(within the meaning of section 102(3) of title
39, United States Code);’’.
(2) SPECIAL RULES RELATING TO THE UNITED
STATES POSTAL SERVICE.—Subsection (f) of section
8G of such Act is amended to read as follows:
‘‘(f)(1) For purposes of carrying out subsection
(c) with respect to the United States Postal Service, the
appointment provisions of section 202(e) of title 39,
United States Code, shall be applied.
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‘‘(2) In carrying out the duties and responsibilities
specified in this Act, the Inspector General of the United
States Postal Service (hereinafter in this subsection re-
ferred to as the ‘Inspector General’) shall have oversight
responsibility for all activities of the Postal Inspection
Service, including any internal investigation performed by
the Postal Inspection Service. The Chief Postal Inspector
shall promptly report the significant activities being car-
ried out by the Postal Inspection Service to such Inspec-
tor General.
‘‘(3)(A)(i) Notwithstanding subsection (d), the In-
spector General shall be under the authority, direction,
and control of the Governors with respect to audits or in-
vestigations, or the issuance of subpoenas, which require
access to sensitive information concerning—
‘‘(I) ongoing civil or criminal investigations or
proceedings;
‘‘(II) undercover operations;
‘‘(III) the identity of confidential sources, in-
cluding protected witnesses;
‘‘(IV) intelligence or counterintelligence mat-
ters; or
‘‘(V) other matters the disclosure of which
would constitute a serious threat to national secu-
rity.
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‘‘(ii) With respect to the information described
under clause (i), the Governors may prohibit the Inspec-
tor General from carrying out or completing any audit or
investigation, or from issuing any subpoena, after such
Inspector General has decided to initiate, carry out, or
complete such audit or investigation or to issue such sub-
poena, if the Governors determine that such prohibition
is necessary to prevent the disclosure of any information
described under clause (i) or to prevent the significant
impairment to the national interests of the United States.
‘‘(iii) If the Governors exercise any power under
clause (i) or (ii), the Governors shall notify the Inspector
General in writing stating the reasons for such exercise.
Within 30 days after receipt of any such notice, the In-
spector General shall transmit a copy of such notice to
the Committee on Governmental Affairs of the Senate
and the Committee on Government Reform and Oversight
of the House of Representatives, and to other appropriate
committees or subcommittees of the Congress.
‘‘(B) In carrying out the duties and responsibil-
ities specified in this Act, the Inspector General—
‘‘(i) may initiate, conduct and supervise such
audits and investigations in the United States Postal
Service as the Inspector General considers appro-
priate; and
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‘‘(ii) shall give particular regard to the activities
of the Postal Inspection Service with a view toward
avoiding duplication and insuring effective coordina-
tion and cooperation.
‘‘(C) Any report required to be transmitted by the
Governors to the appropriate committees or subcommit-
tees of the Congress under section 5(d) shall also be
transmitted, within the seven-day period specified under
such section, to the Committee on Governmental Affairs
of the Senate and the Committee on Government Reform
and Oversight of the House of Representatives.
‘‘(3) Nothing in this Act shall restrict, eliminate,
or otherwise adversely affect any of the rights, privileges,
or benefits of either employees of the United States Post-
al Service, or labor organizations representing employees
of the United States Postal Service, under chapter 12
of title 39, United States Code, the National Labor Rela-
tions Act, any handbook or manual affecting employee
labor relations with the United States Postal Service, or
any collective bargaining agreement.
‘‘(4) As used in this subsection, the term ‘Gov-
ernors’ has the meaning given such term by section
102(3) of title 39, United States Code.’’.
(3) TECHNICAL
CORRECTION.—The Inspector
General Act of 1978 is amended by redesignating
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the second section which is designated as section 8G
as section 8H.
(c) PROVISIONS RELATING TO COMPENSATION.—
(1) INSPECTOR
GENERAL.—Section 5315 of
title 5, United States Code, is amended by adding
at the end the following:
‘‘Inspector General, United States Postal Serv-
ice.’’.
The amendment made by the preceding sentence shall
apply notwithstanding section 410 or any other provision
of title 39, United States Code.
(2) OFFICERS AND EMPLOYEES OF THE OFFICE
OF INSPECTOR GENERAL OF THE UNITED STATES
POSTAL SERVICE; POSTAL INSPECTORS.—
(A) IN GENERAL.—Sectin 1003 of title 39,
United States Code, is amended—
(i) by redesignating subsection (b) as
subsection (d); and
(ii) by inserting after subsection (a)
the following:
‘‘(b) Compensation and benefits for all officers
and employees serving in or under the Office of Inspector
General of the United States Postal Service shall be
maintained on a standard of comparability to the com-
pensation and benefits paid for comparable levels of work
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in the respective Offices of Inspector General of the var-
ious establishments named in section 11(2) of the Inspec-
tor General Act of 1978.
‘‘(c) Compensation and benefits for all Postal In-
spectors shall be maintained on a standard of com-
parability to the compensation and benefits paid for com-
parable levels of work in the executive branch of the Gov-
ernment outside of the Postal Service. As used in this
subsection, the term ‘Postal Inspector’ included any
agent to whom any investigative powers are granted
under section 3061 of title 18.’’.
(B) CONFORMING AMENDMENT.—The first
sentence of section 1003(a) of title 39, United
States Code, is amended by striking ‘‘chapters
2 and 12 of this title’’ and inserting ‘‘chapters
2 and 12 of this title, section 8G of the Inspec-
tor General Act of 1978,’’.
(d) STRATEGIC PLANS.—
(1) OFFICE OF INSPECTOR GENERAL OF THE
UNITED STATES POSTAL SERVICE.—
(A) IN GENERAL.—Strategic plans shall be
prepared under this paragraph addressing staff-
ing requirements, general goals and objectives
for major functions and operations of the Office
of Inspector General of the United States Post-
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al Service, and how goals and objectives of the
Office are to be achieved, including a descrip-
tion of operational processes, skills and tech-
nology, and the human, capital, information,
and other resources required to meet those
goals and objectives.
(B) 
SPECIFIC
REQUIREMENTS.—Plans
under this paragraph—
(i) shall be prepared by the Inspector
General of the United States Postal Serv-
ice;
(ii) shall each cover a 5-year period
(the beginning and ending dates of which
shall be specified in each such plan); and
(iii) shall be included, as part of the
annual budget required under section 2009
of title 39, United States Code, at least
every 3 years.
(C) FIRST
SUBMISSION.—The first plan
under this paragraph shall be prepared in time
to be included with the annual budget under
section 2009 of title 39, United States Code,
next due to be submitted after the end of the
6-month period beginning on the date of the ap-
pointment of the first Inspector General to be
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appointed pursuant to the amendments made
by this section.
(2) POSTAL INSPECTION SERVICE.—The Chief
Postal Inspector shall, with respect to the Postal In-
spection Service, prepare a strategic plan similar in
content to that required under paragraph (1)(A)
with respect to the Office of Inspector General of the
United States Postal Service. Such plan shall be pre-
pared in time to be included with the annual budget
under section 2009 of such title 39 next due to be
submitted after the end of the 30-day period begin-
ning on the date of the enactment of this Act.
(e) FIRST APPOINTMENT; TRANSFERS; TRANSI-
TION PROVISION.—
(1) FIRST APPOINTMENT.—The first Inspector
General of the United States Postal Service ap-
pointed pursuant to the amendments made by this
section shall be appointed before the end of the 90-
day period beginning on the date of the enactment
of this Act.
(2) TRANSFERS.—
(A) IN GENERAL.—All measures described
in section 8G(b) of the Inspector General Act of
1978 necessary to establish an Office of Inspec-
tor General within the United States Postal
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Service pursuant to this section, including all
appropriate transfers, shall occur—
(i) no earlier than the date the appointment under
paragraph (1) is made; and
(ii) no later than 60 days after the date the ap-
pointment under paragraph (1) is made.
(B) PROVISIONS
RELATING
TO
PERSON-
NEL.—
(i) CONSULTATION.—Decisions concerning which
personnel are to be transferred pursuant to subparagraph
(A) shall be made by the Governors (within the meaning
of section 102(3) of title 39, United States Code) in con-
sultation with the Inspector General appointed under
paragraph (1).
(ii) 
TRANSFERRED
PERSONNEL.—Personnel
transferred pursuant to subparagraph (A) shall, to the
extent not inconsistent with other provisions of this sub-
section, be transferred in accordance with applicable laws
and regulations relating to the transfer of functions with-
in the United States Postal Service, except that, notwith-
standing any provision of section 1003(b) of title 39,
United States Code, as amended by this section, the clas-
sification and compensation of such personnel shall not
be reduced, by reason of having been transferred, for 1
year after being so transferred.
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(3) TRANSITION PROVISION.—The Chief Postal
Inspector may continue to serve as Inspector Gen-
eral of the United States Postal Service until the
date on which an Inspector General is appointed
under paragraph (1) or, if earlier, the end of the pe-
riod referred to in such paragraph. Compensation
for any service under this paragraph shall be deter-
mined as if this section had not been enacted.
(f) 
TECHNICAL
AND
CONFORMING
AMEND-
MENTS.—
(1) Section 410(b) of title 39, United States
Code, is amended—
(A) by striking ‘‘and’’ at the end of para-
graph (9); and
(B) by amending paragraph (10) to read
as follows:
‘‘(10) the Inspector General Act of 1978; and’’
(2)(A) Section 204 of such title 39 is amend-
ed—
(i) by amending the section heading to read as fol-
lows:
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‘‘§ 204. General Counsel; Judicial Officer; Chief Postal
Inspector’’;
(ii) in the first sentence by striking ‘‘and a Judi-
cial Officer.’’ and inserting ‘‘a Judicial Officer, and a
Chief Postal Inspector.’’;
(iii) in the second sentence by striking ‘‘and the
Judicial Officer’’ and inserting ‘‘the Judicial Officer, and
the Chief Postal Inspector’’; and
(iv) by adding at the end the following: ‘‘The
Chief Postal Inspector shall report to, and be under the
general supervision of, the Postmaster General. The
Postmaster General shall promptly notify the Governors
and both Houses of Congress in writing if he or she re-
moves the Chief Postal Inspector or transfers the Chief
Postal Inspector to another position or location within
the Postal Service, and shall include in any such notifica-
tion the reasons for the removal or transfer.’’.
(B) The table of sections for chapter 2 of such
title 39 is amended by striking the item relating to
section 204 and inserting the following:
‘‘204. General Counsel; Judicial Officer; Chief Postal Inspector.’’.
SEC. 663. VOLUNTARY SEPARATION INCENTIVES
FOR EMPLOYEES OF CERTAIN FEDERAL AGENCIES.—(a)
DEFINITIONS.—For the purposes of this section—
(1) the term ‘‘agency’’ means any Executive
agency (as defined in section 105 of title 5, United
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States Code), other than an Executive agency (ex-
cept an agency receiving such authority in the De-
partment of Transportation Appropriations Act,
1997) that is authorized by any other provision of
this Act or any other Act to provide voluntary sepa-
ration incentive payments during all, or any part of,
fiscal year 1997; and
(2) the term ‘‘employee’’ means an employee
(as defined by section 2105 of title 5, United States
Code) who is employed by an agency, is serving
under an appointment without time limitation, and
has been currently employed for a continuous period
of at least 3 years, but does not include—
(A) a reemployed annuitant under sub-
chapter III of chapter 83 or chapter 84 of title
5, United States Code, or another retirement
system for employees of the agency;
(B) an employee having a disability on the
basis of which such employee is or would be eli-
gible for disability retirement under subchapter
III of chapter 83 or chapter 84 of title 5, Unit-
ed States Code, or another retirement system
for employees of the agency;
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(C) an employee who is in receipt of a spe-
cific notice of involuntary separation for mis-
conduct or unacceptable performance;
(D) an employee who, upon completing an
additional period of service as referred to in
section 3(b)(2)(B)(ii) of the Federal Workforce
Restructuring Act of 1994 (5 U.S.C. 5597
note), would qualify for a voluntary separation
incentive payment under section 3 of such Act;
(E) an employee who has previously re-
ceived any voluntary separation incentive pay-
ment by the Federal Government under this
section or any other authority and has not re-
paid such payment;
(F) an employee covered by statutory re-
employment rights who is on transfer to an-
other organization; or
(G) any employee who, during the twenty
four month period preceding the date of separa-
tion, has received a recruitment or relocation
bonus under section 5753 of title 5, United
States Code, or who, within the twelve month
period preceding the date of separation, re-
ceived a retention allowance under section 5754
of title 5, United States Code.
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(b) AGENCY STRATEGIC PLAN.—
(1) IN GENERAL.—The head of each agency,
prior to obligating any resources for voluntary sepa-
ration incentive payments, shall submit to the House
and Senate Committees on Appropriations and the
Committee on Governmental Affairs of the Senate
and the Committee on Government Reform and
Oversight of the House of Representatives a strate-
gic plan outlining the intended use of such incentive
payments and a proposed organizational chart for
the agency once such incentive payments have been
completed.
(2) CONTENTS.—The agency’s plan shall in-
clude—
(A) the positions and functions to be re-
duced or eliminated, identified by organizational
unit, geographic location, occupational category
and grade level;
(B) the number and amounts of voluntary
separation incentive payments to be offered;
and
(C) a description of how the agency will
operate without the eliminated positions and
functions.
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(c) AUTHORITY TO PROVIDE VOLUNTARY SEPA-
RATION INCENTIVE PAYMENTS.—
(1) IN GENERAL.—A voluntary separation in-
centive payment under this section may be paid by
an agency to any employee only to the extent nec-
essary to eliminate the positions and functions iden-
tified by the strategic plan.
(2) AMOUNT AND TREATMENT OF PAYMENTS.—
A voluntary separation incentive payment—
(A) shall be paid in a lump sum after the
employee’s separation;
(B) shall be paid from appropriations or
funds available for the payment of the basic pay
of the employees;
(C) shall be equal to the lesser of—
(i) an amount equal to the amount
the employee would be entitled to receive
under section 5595(c) of title 5, United
States Code; or
(ii) an amount determined by the
agency head not to exceed $25,000;
(D) may not be made except in the case of
any qualifying employee who voluntarily sepa-
rates (whether by retirement or resignation) be-
fore December 31, 1997;
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(E) shall not be a basis for payment, and
shall not be included in the computation, of any
other type of Government benefit; and
(F) shall not be taken into account in de-
termining the amount of any severance pay to
which the employee may be entitled under sec-
tion 5595 of title 5, United States Code, based
on any other separation.
(d) ADDITIONAL
AGENCY
CONTRIBUTIONS
TO
THE RETIREMENT FUND.—
(1) IN
GENERAL.—In addition to any other
payments which it is required to make under sub-
chapter III of chapter 83 of title 5, United States
Code, an agency shall remit to the Office of Person-
nel Management for deposit in the Treasury of the
United States to the credit of the Civil Service Re-
tirement and Disability Fund an amount equal to 15
percent of the final basic pay of each employee of
the agency who is covered under subchapter III of
chapter 83 or chapter 84 of title 5, United States
Code, to whom a voluntary separation incentive has
been paid under this section.
(2) DEFINITION.—For the purpose of para-
graph (1), the term ‘‘final basic pay’’, with respect
to an employee, means the total amount of basic pay
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which would be payable for a year of service by such
employee, computed using the employee’s final rate
of basic pay, and, if last serving on other than a
full-time basis, with appropriate adjustment there-
for.
(e) EFFECT
OF
SUBSEQUENT
EMPLOYMENT
WITH THE GOVERNMENT.—An individual who has re-
ceived a voluntary separation incentive payment under
this section and accepts any employment for compensa-
tion with the Government of the United States, or who
works for any agency of the United States Government
through a personal services contract, within 5 years after
the date of the separation on which the payment is based
shall be required to pay, prior to the individual’s first day
of employment, the entire amount of the incentive pay-
ment to the agency that paid the incentive payment.
(f) REDUCTION OF AGENCY EMPLOYMENT LEV-
ELS.—
(1) IN GENERAL.—The total number of funded
employee positions in the agency shall be reduced by
one position for each vacancy created by the separa-
tion of any employee who has received, or is due to
receive, a voluntary separation incentive payment
under this section. For the purposes of this sub-
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section, positions shall be counted on a full-time
equivalent basis.
(2) ENFORCEMENT.—The President, through
the Office of Management and Budget, shall monitor
the agency and take any action necessary to ensure
that the requirements of this subsection are met.
(g) EFFECTIVE DATE.—This section shall take ef-
fect October 1, 1996.
SEC. 664. ELECTRONIC BENEFIT TRANSFER PILOT.
Title 31, United States Code, is amended by in-
serting after section 3335 the following new section:
‘‘§ 3336. Electronic benefit transfer pilot
‘‘(a) The Congress finds that:
‘‘(1) Electronic benefit transfer (EBT) is a
safe, reliable, and economical way to provide benefit
payments to individuals who do not have an account
at a financial institution.
‘‘(2) The designation of financial institutions as
financial agents of the Federal Government for EBT
is an appropriate and reasonable use of the Sec-
retary’s authority to designate financial agents.
‘‘(3) A joint federal-state EBT system offers
convenience and economies of scale for those states
(and their citizens) that wish to deliver state-admin-
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istered benefits on a single card by entering into a
partnership with the federal government.
‘‘(4) The Secretary’s designation of a financial
agent to deliver EBT is a specialized service not
available through ordinary business channels and
may be offered to the states pursuant to section
6501 et seq. of this title.
‘‘(b) The Secretary shall continue to carry out the
existing EBT pilot to disburse benefit payments elec-
tronically to recipients who do not have an account at a
financial institution, which shall include the designation
of one or more financial institutions as a financial agent
of the Government, and the offering to the participating
states of the opportunity to contract with the financial
agent selected by the Secretary, as described in the Invi-
tation for Expressions of Interest to Acquire EBT Serv-
ices for the Southern Alliance of States dated March 9,
1995, as amended as of June 30, 1995, July 7, 1995,
and August 1, 1995.
‘‘(c) The selection and designation of financial
agents, the design of the pilot program, and any other
matter associated with or related to the EBT pilot de-
scribed in subsection (b) shall not be subject to judicial
review.’’
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SEC. 665. DESIGNATION OF FINANCIAL AGENTS.
1. 12 U.S.C. 90 is amended by adding at the end
thereof the following:
‘‘Notwithstanding the Federal Property and Administra-
tive Services Act of 1949, as amended, the Secretary may
select associations as financial agents in accordance with
any process the Secretary deems appropriate and their
reasonable duties may include the provision of electronic
benefit transfer services (including State-administered
benefits with the consent of the States), as defined by the
Secretary.’’.
2. Make conforming amendments to 12 U.S.C.
265, 266, 391, 1452(d), 1767, 1789a, 2013, 2122 and
to 31 U.S.C. 3122 and 3303.
TITLE VII—COUNTER-TERRORISM AND DRUG
LAW ENFORCEMENT
DEPARTMENT OF THE TREASURY
DEPARTMENTAL OFFICES
SALARIES AND EXPENSES
For an additional amount for the necessary ex-
penses of the Office of Foreign Assets Control, $288,000:
Provided, That of the amount provided, $288,000 is des-
ignated by Congress as an emergency requirement pursu-
ant to section 251(b)(2)(D)(i) of the Balanced Budget
and Emergency Deficit Control Act of 1985, as amended.
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OFFICE OF INSPECTOR GENERAL
SALARIES AND EXPENSES
For an additional amount for the necessary ex-
penses of the Office of Inspector General, $34,000, to re-
main available until expended: Provided, That of the
amount provided, $34,000 is designated by Congress as
an 
emergency 
requirement 
pursuant 
to 
section
251(b)(2)(D)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended.
COUNTER-TERRORISM FUND
For necessary expenses, as determined by the Sec-
retary, $15,000,000, to remain available until expended,
to reimburse any Department of the Treasury organiza-
tion for the costs of providing support to counter, inves-
tigate, or prosecute terrorism, including payment of re-
wards in connection with these activities: Provided, That
the entire amount of this appropriation shall be available
only to the extent that an official budget request for a
specific dollar amount, that includes designation of the
entire amount of the request as an emergency require-
ment as defined in the Balanced Budget and Emergency
Deficit Control Act of 1985, is transmitted by the Presi-
dent to Congress: Provided further, That the entire
amount is designated by Congress as an emergency ap-
propriation pursuant to section 251(b)(2)(D)(i) of such
Act.
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FEDERAL LAW ENFORCEMENT TRAINING CENTER
SALARIES AND EXPENSES
For an additional amount for the necessary ex-
penses of the Federal Law Enforcement Training Center,
$1,354,000, to remain available until expended: Provided,
That of the amount provided, $1,354,000 is designated
by Congress as an emergency requirement pursuant to
section 251(b)(2)(D)(i) of the Balanced Budget and
Emergency Deficit Control Act of 1985, as amended.
ACQUISITION, CONSTRUCTION, IMPROVEMENT, AND
RELATED EXPENSES
For an additional amount for the necessary ex-
penses for the acquisition, construction, improvement,
and related expenses, $2,700,000, to remain available
until expended: Provided, That of the amount provided,
$2,700,00 is designated by Congress as an emergency re-
quirement pursuant to section 251(b)(2)(D)(i) of the
Balanced Budget and Emergency Deficit Control Act of
1985, as amended.
FINANCIAL MANAGEMENT SERVICE
SALARIES AND EXPENSES
For an additional amount for the necessary ex-
penses of the Financial Management Service, $449,000,
to remain available until expended: Provided, That of the
amount provided, $449,000 is designated by Congress as
an 
emergency 
requirement 
pursuant 
to 
section
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251(b)(2)(D)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended.
BUREAU OF ALCOHOL, TOBACCO AND FIREARMS
SALARIES AND EXPENSES
For an additional amount for the necessary ex-
penses of the Bureau of Alcohol, Tobacco and Firearms,
$66,423,000; of which $3,500,000 shall be available for
the construction and expansion of a canine training facil-
ity, to remain available until expended, of which
$3,000,000 shall be available for conducting a study of
car bomb explosives, to remain available until expended;
and of which $6,700,000, to remain available until ex-
pended, for relocation of the Bureau’s headquarters
building and laboratory facilities: Provided, That of the
amount provided, $66,423,000 is designated by Congress
as an emergency requirement pursuant to section
251(b)(2)(D)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended.
UNITED STATES CUSTOMS SERVICE
SALARIES AND EXPENSES
For an additional amount for the necessary ex-
pense 
of 
the 
United 
States 
Customs 
Service,
$62,335,000; of which not to exceed $26,400,000 shall be
available until expended for funding non-competitive co-
operative agreements with air carriers, airports, or other
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cargo authorities, which provide for the Customs Service
to purchase and assist in installing advanced air cargo in-
spection equipment for the joint use of such entities and
the United States Customs Service: Provided, That of the
amount provided, $62,335,000 is designated by Congress
as an emergency requirement pursuant to section
251(b)(2)(D)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended.
INTERNAL REVENUE SERVICE
PROCESSING, ASSISTANCE AND MANAGEMENT
For an additional amount for the necessary ex-
penses for the processing, assistance and management,
$10,488,000, to remain available until expended: Pro-
vided, That of the amount provided, $10,488,000 is des-
ignated by Congress as an emergency requirement pursu-
ant to section 251(b)(2)(D)(i) of the Balanced Budget
and Emergency Deficit Control Act of 1985, as amended.
UNITED STATES SECRET SERVICE,
SALARIES AND EXPENSES
For an additional amount for the necessary ex-
penses of the United States Secret Service $3,026,000, to
remain available until expended: Provided, That of the
amount provided, $3,026,000 is designated by Congress
as an emergency requirement pursuant to section
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251(b)(2)(D)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended.
INDEPENDENT AGENCIES
OFFICE OF PERSONNEL MANAGEMENT
SALARIES AND EXPENSES
For an additional amount for the necessary ex-
penses of the Office of Personnel Management $210,000,
to remain available until expended: Provided, That of the
amount provided, $210,000 is designated by Congress as
an 
emergency 
requirement 
pursuant 
to 
section
251(b)(2)(D)(i) of the Balanced Budget and Emergency
Deficit Control Act of 1985, as amended.
FUNDS APPROPRIATED TO THE PRESIDENT
FEDERAL DRUG CONTROL PROGRAMS
SPECIAL FORFEITURE FUND
(INCLUDING TRANSFER OF FUNDS)
For activities authorized by Public Law 100–690,
as amended, $112,900,000, of which $42,000,000 shall
be transferred to the United States Customs Service for
the conversion of one P–3AEW aircraft for the air inter-
diction program; of which $10,000,000 shall be available
for transfer to other Federal agencies for methamphet-
amine reduction efforts; and of which $60,900,000 shall
be available to the Director of the Office of National
Drug Control Policy for enhancing other drug control ac-
tivities, including transfer to other Federal agencies: Pro-
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vided, That of the amount provided, $112,900,000 is des-
ignated by Congress as an emergency requirement pursu-
ant to section 251(b)(2)(D)(i) of the Balanced Budget
and Emergency Deficit Control Act of 1985, as amended
to become available only upon receipt by the Congress of
a supplemental request from the President requesting
such designation.
TITLE VIII—FEDERAL FINANCIAL
MANAGEMENT IMPROVEMENT
SEC. 801. SHORT TITLE.
This title may be cited as the ‘‘Federal Financial
Management Improvement Act of 1996.’’
SEC. 802. FINDINGS AND PURPOSES.
(a) FINDINGS.—The Congress finds the following:
(1) Much effort has been devoted to strengthen-
ing Federal internal accounting controls in the past.
Although progress has been made in recent years,
Federal accounting standards have not been uni-
formly implemented in financial management sys-
tems for agencies.
(2) Federal financial management continues to
be seriously deficient, and Federal financial manage-
ment and fiscal practices have failed to—
(A) identify costs fully;
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(B) reflect the total liabilities of congres-
sional actions; and
(C) accurately report the financial condi-
tion of the Federal Government.
(3) Current Federal accounting practices do not
accurately report financial results of the Federal
Government or the full costs of programs and activi-
ties. The continued use of these practices under-
mines the Government’s ability to provide credible
and reliable financial data and encourages already
widespread Government waste, and will not assist in
achieving a balanced budget.
(4) Waste and inefficiency in the Federal Gov-
ernment undermine the confidence of the American
people in the government and reduce the federal
Government’s ability to address vital public needs
adequately.
(5) To rebuild the accountability and credibility
of the Federal Government, and restore public con-
fidence in the Federal Government, agencies must
incorporate accounting standards and reporting ob-
jectives established for the Federal Government into
their financial management systems so that all the
assets and liabilities, revenues, and expenditures or
expenses, and the full costs of programs and activi-
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ties of the Federal Government can be consistently
and accurately recorded, monitored, and uniformly
reported throughout the Federal Government.
(6) Since its establishment in October 1990, the
Federal Accounting Standards Advisory Board
(hereinafter referred to as the ‘‘FASAB’’) has made
substantial progress toward developing and rec-
ommending a comprehensive set of accounting con-
cepts and standards for the Federal Government.
When the accounting concepts and standards devel-
oped by FASB are incorporated into Federal finan-
cial management systems, agencies will be able to
provide cost and financial information that will as-
sist the Congress and financial managers to evaluate
the cost and performance of Federal programs and
activities, and will therefore provide important infor-
mation that has been lacking, but is needed for im-
proved decision making by financial managers and
the Congress.
(7) The development of financial management
systems with the capacity to support these standards
and concepts will, over the long term, improve Fed-
eral financial management.
(b) PURPOSE.—The purposes of this Act are to—
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(1) provide for consistency of accounting by an
agency from one fiscal year to the next, and uniform
accounting standards throughout the Federal Gov-
ernment;
(2) require Federal financial management sys-
tems to support full disclosure of Federal financial
data, including the full costs of Federal programs
and activities, to the citizens, the Congress, the
President, and agency management, so that pro-
grams and activities can be considered based on
their full costs and merits;
(3) increase the accountability and credibility of
federal financial management;
(4) improve performance, productivity and effi-
ciency of Federal Government financial manage-
ment;
(5) establish financial management systems to
support controlling the cost of Federal Government;
(6) build upon and complement the Chief Fi-
nancial Officers Act of 1990 (Public Law 101–576;
104 Stat. 2838), the Government Performance and
Results Act of 1993 (Public Law 103–62; 107 Stat.
285) and the Government Management Reform Act
of 1994 (Public Law 103–356; 108 Stat. 3410); and
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(7) increase the capability of agencies to mon-
itor execution of the budget by more readily permit-
ting reports that compare spending of resources to
results of activities.
SEC. 803 IMPLEMENTATION OF FEDERAL FINANCIAL MAN-
AGEMENT IMPROVEMENTS.
(a) IN GENERAL.—Each agency shall implement
and maintain financial management systems that comply
substantially with Federal financial management systems
requirements, applicable Federal accounting standards,
and the United States Government Standard General
Ledger at the transaction level.
(b) AUDIT COMPLIANCE FINDING.—
(1) IN GENERAL.—Each audit required by sec-
tion 3521(e) of title 31, United States Code, shall
report whether the agency financial management
systems comply with the requirements of subsection
(a).
(2) CONTENT OF REPORTS.—When the person
performing the audit required by section 3521(e) of
title 31, United States Code, reports that the agency
financial management systems do not comply with
the requirements of subsection (a), the person per-
forming the audit shall include in the report on the
audit—
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(A) the entity or organization responsible
for the financial management systems that have
been found not to comply with the requirements
of subsection (a);
(B) all facts pertaining to the failure to
comply with the requirements of subsection (a),
including—
(i) the nature and extent of the non-
compliance including areas in which there
is substantial but not full compliance;
(ii) the primary reason or cause of the
noncompliance;
(iii) the entity or organization respon-
sible for the non-compliance; and
(iv) any relevant comments from any
responsible officer or employee; and
(C) a statement with respect to the rec-
ommended remedial actions and the time
frames to implement such actions.
(c) COMPLIANCE IMPLEMENTATION.—
(1) DETERMINATION.—No later than the date
described under paragraph (2), the Head of an
agency shall determine whether the financial man-
agement systems of the agency comply with the re-
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quirements of subsection (a). Such determination
shall be based on—
(A) a review of the report on the applicable
agency-wide audited financial statement;
(B) any other information the Head of the
agency considers relevant and appropriate.
(2) DATE
OF
DETERMINATION.—The deter-
mination under paragraph (1) shall be made no later
than 120 days after the earlier of—
(A) the date of the receipt of an agency-
wide audited financial statement; or
(B) the last day of the fiscal year following
the year covered by such statement.
(3) REMEDIATION PLAN.—
(A) If the Head of an agency determines
that the agency’s financial management systems
do not comply with the requirements of sub-
section (a), the head of the agency, in consulta-
tion with the Director, shall establish a remedi-
ation plan that shall include resources, rem-
edies, and intermediate target dates necessary
to bring the agency’s financial management sys-
tems into substantial compliance.
(B) If the determination of the head of the
agency differs from the audit compliance find-
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ings required in subsection (b), the Director
shall review such determinations and provide a
report on the findings to the appropriate com-
mittees of the Congress.
(4) TIME PERIOD FOR COMPLIANCE.—A reme-
diation plan shall bring the agency’s financial man-
agement systems into substantial compliance no
later than 3 years after the date a determination is
made under paragraph (1), unless the agency, with
concurrence of the Director—
(A) determines that the agency’s financial
management systems cannot comply with the
requirements of subsection (a) within 3 years;
(B) specifies the most feasible date for
bringing the agency’s financial management
systems into compliance with the requirements
of subsection (a); and
(C) designates an official of the agency
who shall be responsible for bringing the agen-
cy’s financial management systems into compli-
ance with the requirements of subsection (a) by
the date specified under subparagraph (B).
SEC. 804. REPORTING REQUIREMENTS.
(a) REPORTS BY THE DIRECTOR.—No later than
March 31 of each year, the Director shall submit a report
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to the Congress regarding implementation of this Act.
The Director may include the report in the financial
management status report and the 5-year financial man-
agement plan submitted under section 3512(a)(1) of title
31, United States Code.
(b) REPORTS
BY
THE INSPECTOR GENERAL.—
Each Inspector General who prepares a report under sec-
tion 5(a) of the Inspector General Act of 1978 (5 U.S.C.
App.) shall report to Congress instances and reasons
when an agency has not met the intermediate target
dates established in the remediation plan required under
section 3(c). Specifically the report shall include—
(1) the entity or organization responsible for
the non-compliance;
(2) the facts pertaining to the failure to comply
with the requirements of subsection (a), including
the nature and extent of the non-compliance, the
primary reason or cause for the failure to comply,
and any extenuating circumstances; and
(3) a statement of the remedial actions needed
to comply.
(c) REPORTS BY THE COMPTROLLER GENERAL.—
No later than October 1, 1997, and October 1, of each
year thereafter, the Comptroller General of the United
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States shall report to the appropriate committees of the
Congress concerning—
(1) compliance with the requirements of section
3(a) of this Act, including whether the financial
statements of the Federal Government have been
prepared in accordance with applicable accounting
standards; and
(2) the adequacy of applicable accounting
standards for the Federal Government.
SEC. 805. CONFORMING AMENDMENTS.
(a) AUDITS BY AGENCIES.—Section 3521(f)(1) of
title 31, United States Code, is amended in the first sen-
tence by inserting ‘‘and the Controller of the Office of
Federal Financial Management’’ before the period.
(b) FINANCIAL MANAGEMENT STATUS REPORT.—
Section 3512(a)(2) of title 31, United States Code, is
amended by—
(1) in subparagraph (D) by striking ‘‘and’ after
the semicolon;
(2) by redesignating subparagraph (E) as sub-
paragraph (F); and
(3) by inserting after subparagraph (D) the fol-
lowing:
‘‘(E) a listing of agencies whose financial
management systems do not comply substan-
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tially with the requirements of Section 3(a) the
Federal Financial Management Improvement
Act of 1996, and a summary statement of the
efforts underway to remedy the noncompliance;
and’’
(c) INSPECTOR GENERAL ACT OF 1978.—Section
5(a) of the Inspector General Act of 1978 is amended—
(1) in paragraph (11) by striking ‘‘and’’ after
the semicolon;
(2) in paragraph (12) by striking the period
and inserting ‘‘; and’’; and
(3) by adding at the end the following new
paragraph:
‘‘(13) the information described under section
05(b) of the Federal Financial Management Im-
provement Act of 1996.’’
SEC. 806. DEFINITIONS.
For purposes of this title:
(1) AGENCY.—The term ‘‘agency’’ means a de-
partment or agency of the United States Govern-
ment as defined in section 901(b) of title 31, United
States Code.
(2) DIRECTOR.—The term ‘‘Director’’ means
the Director of the Office of Management and Budg-
et.
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(3) FEDERAL ACCOUNTING STANDARDS.—The
term ‘‘Federal accounting standards’’ means appli-
cable accounting principles, standards, and require-
ments consistent with section 902(a)(3)(A) of title
31, United States Code.
(4) FINANCIAL
MANAGEMENT
SYSTEMS.—The
term ‘‘financial management systems’’ includes the
financial systems and the financial portions of mixed
systems necessary to support financial management,
including automated and manual processes, proce-
dures, controls, data, hardware, software, and sup-
port personnel dedicated to the operation and main-
tenance of system functions.
(5) FINANCIAL SYSTEM.—The term ‘‘financial
system’’ includes an information system, comprised
of one or more applications, that is used for—
(A) collecting, processing, maintaining,
transmitting, or reporting data about financial
events;
(B) supporting financial planning or budg-
eting activities;
(C) accumulating and reporting costs in-
formation; or
(D) supporting the preparation of financial
statements.
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(6) MIXED
SYSTEM.—The term ‘‘mixed
system’’ means an information system that sup-
ports both financial and nonfinancial functions
of the Federal Government or components
thereof.
SEC. 807. EFFECTIVE DATE.
This title shall take effect for the fiscal year end-
ing September 30, 1997.
SEC. 808. REVISION OF SHORT TITLES.
(a) Section 4001 of Public Law 104–106 (110
Stat. 642; 41 U.S.C. 251 note) is amended to read as fol-
lows:
‘‘SEC. 4001. SHORT TITLE.
‘‘This division and division E may be cited as the
‘Clinger-Cohen Act of 1996’.’’.
(b) Section 5001 of Public Law 104–106 (110
Stat. 679; 40 U.S.C. 1401 note) is amended to read as
follows:
‘‘SEC. 5001. SHORT TITLE.
‘‘This division and division D may be cited as the
‘Clinger-Cohen Act of 1996’.’’
(c) Any reference in any law, regulation, docu-
ment, record, or other paper of the United States to the
Federal Acquisition Reform Act of 1996 or to the Infor-
mation Technology Management Reform Act of 1996
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shall be considered to be a reference to the Clinger-Cohen
Act of 1996.
This Act may be cited as the ‘‘Treasury, Postal
Service, and General Government Appropriations Act,
1997’’.
TITLE II—ECONOMIC GROWTH
AND 
REGULATORY 
PAPER-
WORK REDUCTION
SEC. 2001. SHORT TITLE; TABLE OF CONTENTS; DEFINI-
TIONS.
(a) SHORT TITLE.—This title may be cited as the
‘‘Economic Growth and Regulatory Paperwork Reduction
Act of 1996’’.
(b) TABLE OF CONTENTS.—The table of contents for
this title is as follows:
TITLE II—ECONOMIC GROWTH AND REGULATORY PAPERWORK
REDUCTION
Sec. 2001. Short title; table of contents; definitions
Subtitle A—Streamlining the Home Mortgage Lending Process
Sec. 2101. Simplification and unification of disclosures required under RESPA
and TILA for mortgage transactions.
Sec. 2102. General exemption authority for loans.
Sec. 2103. Reductions in Real Estate Settlement Procedures Act of 1974 regu-
latory burdens.
Sec. 2104. Waiver for certain borrowers.
Sec. 2105. Alternative disclosures for adjustable rate mortgages.
Sec. 2106. Restitution for violations of the Truth in Lending Act.
Sec. 2107. Limitation on liability under the Truth in Lending Act.
Subtitle B—Streamlining Government Regulation
CHAPTER 1—ELIMINATING UNNECESSARY REGULATORY REQUIREMENTS
AND PROCEDURES
Sec. 2201. Elimination of redundant approval requirement for Oakar trans-
actions.
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Sec. 2202. Elimination of duplicative requirements imposed upon bank holding
companies.
Sec. 2203. Elimination of the per branch capital requirement for national
banks and State member banks.
Sec. 2204. Elimination of branch application requirements for automatic teller
machines.
Sec. 2205. Elimination of requirement for approval of investments in bank
premises for well capitalized and well managed banks.
Sec. 2206. Elimination of approval requirement for divestitures.
Sec. 2207. Streamlined nonbanking acquisitions by well capitalized and well
managed banking organizations.
Sec. 2208. Elimination of unnecessary filing for officer and director appoint-
ments.
Sec. 2209. Amendments to the Depository Institution Management Interlocks
Act.
Sec. 2210. Elimination of recordkeeping and reporting requirements for offi-
cers.
Sec. 2211. Repayment of Treasury loan.
Sec. 2212. Branch closures.
Sec. 2213. Foreign banks.
Sec. 2214. Disposition of foreclosed assets.
Sec. 2215. Exemption authority for antitying provision.
Sec. 2216. FDIC approval of new State bank powers.
CHAPTER 2—ELIMINATING UNNECESSARY REGULATORY BURDENS
Sec. 2221. Small bank examination cycle.
Sec. 2222. Required review of regulations.
Sec. 2223. Repeal of identification of nonbank financial institution customers.
Sec. 2224. Repeal of certain reporting requirements.
Sec. 2225. Increase in home mortgage disclosure exemption threshold.
Sec. 2226. Elimination of stock loan reporting requirement.
Sec. 2227. Credit availability assessment.
CHAPTER 3—REGULATORY MICROMANAGEMENT
Sec. 2241. National bank directors.
Sec. 2242. Paperwork reduction review.
Sec. 2243. State bank representation on Board of Directors of the FDIC.
Sec. 2244. Consultation among examiners.
Subtitle C—Regulatory Impact on Cost of Credit and Credit Availability
Sec. 2301. Audit costs.
Sec. 2302. Incentives for self-testing.
Sec. 2303. Qualified thrift investment amendments.
Sec. 2304. Limited purpose banks.
Sec. 2305. Amendment to Fair Debt Collection Practices Act.
Sec. 2306. Increase in certain credit union loan ceilings.
Sec. 2307. Bank investments in Edge Act and agreement corporations.
Subtitle D—Consumer Credit
CHAPTER 1—CREDIT REPORTING REFORM
Sec. 2401. Short title.
Sec. 2402. Definitions.
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Sec. 2403. Furnishing consumer reports; use for employment purposes.
Sec. 2404. Use of consumer reports for prescreening and direct marketing; pro-
hibition on unauthorized or uncertified use of information.
Sec. 2405. Consumer consent required to furnish consumer report containing
medical information.
Sec. 2406. Obsolete information and information contained in consumer re-
ports.
Sec. 2407. Compliance procedures.
Sec. 2408. Consumer disclosures.
Sec. 2409. Procedures in case of the disputed accuracy of any information in
a consumer’s file.
Sec. 2410. Charges for certain disclosures.
Sec. 2411. Duties of users of consumer reports.
Sec. 2412. Civil liability.
Sec. 2413. Responsibilities of persons who furnish information to consumer re-
porting agencies.
Sec. 2414. Investigative consumer reports.
Sec. 2415. Increased criminal penalties for obtaining information under false
pretenses.
Sec. 2416. Administrative enforcement.
Sec. 2417. State enforcement of Fair Credit Reporting Act.
Sec. 2418. Federal Reserve Board authority.
Sec. 2419. Preemption of State law.
Sec. 2420. Effective date.
Sec. 2421. Relationship to other law.
Sec. 2422. Federal Reserve Board study.
CHAPTER 2—CREDIT REPAIR ORGANIZATIONS
Sec. 2451. Regulation of credit repair organizations.
Sec. 2452. Credit worthiness.
Subtitle E—Asset Conservation, Lender Liability, and Deposit Insurance
Protection
Sec. 2501. Short title.
Sec. 2502. CERCLA lender and fiduciary liability limitations amendments.
Sec. 2503. Conforming amendment.
Sec. 2504. Lender liability rule.
Sec. 2505. Effective date.
Subtitle F—Miscellaneous
Sec. 2601. Federal Reserve Board study.
Sec. 2602. Treatment of claims arising from breach of contracts executed by
the receiver or conservator.
Sec. 2603. Criminal sanctions for fictitious financial instruments and counter-
feiting.
Sec. 2604. Amendments to the Truth in Savings Act.
Sec. 2605. Consumer Leasing Act amendments.
Sec. 2606. Study of corporate credit unions.
Sec. 2607. Report on the reconciliation of differences between regulatory ac-
counting principles and generally accepted accounting prin-
ciples.
Sec. 2608. State-by-State and metropolitan area-by-metropolitan area study of
bank fees.
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Sec. 2609. Prospective application of gold clauses in contracts.
Sec. 2610. Qualified family partnerships.
Sec. 2611. Cooperative efforts between depository institutions and farmers and
ranchers in drought-stricken areas.
Sec. 2612. Streamlining process for determining new nonbanking activities.
Sec. 2613. Authorizing bank service companies to organize as limited liability
partnerships.
Sec. 2614. Retirement certificates of deposits.
Sec. 2615. Prohibitions on certain depository institution associations with Gov-
ernment-sponsored enterprises.
Subtitle G—Deposit Insurance Funds
Sec. 2701. Short title.
Sec. 2702. Special assessment to capitalize SAIF.
Sec. 2703. Financing corporation funding.
Sec. 2704. Merger of BIF and SAIF.
Sec. 2705. Creation of SAIF special reserve.
Sec. 2706. Refund of amounts in deposit insurance fund in excess of designated
reserve amount.
Sec. 2707. Assessment rates for SAIF members may not be less than assess-
ment rates for BIF members.
Sec. 2708. Assessments authorized only if needed to maintain the reserve ratio
of a deposit insurance fund.
Sec. 2709. Treasury study of common depository institution charter.
Sec. 2710. Definitions.
Sec. 2711. Deductions for special assessments.
(c) DEFINITIONS.—Except as otherwise specified in
this title, the following definitions shall apply for purposes
of this title:
(1) APPRAISAL
SUBCOMMITTEE.—The term
‘‘Appraisal Subcommittee’’ means the Appraisal
Subcommittee established under section 1011 of the
Federal Financial Institutions Examination Council
Act of 1978 (as in existence on the day before the
date of enactment of this Act).
(2) APPROPRIATE FEDERAL
BANKING
AGEN-
CY.—The term ‘‘appropriate Federal banking agen-
cy’’ has the same meaning as in section 3 of the
Federal Deposit Insurance Act.
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(3) BOARD.—The term ‘‘Board’’ means the
Board of Governors of the Federal Reserve System.
(4) CORPORATION.—The term ‘‘Corporation’’
means the Federal Deposit Insurance Corporation.
(5) COUNCIL.—The term ‘‘Council’’ means the
Financial Institutions Examination Council estab-
lished under section 1004 of the Federal Financial
Institutions Examination Council Act of 1978.
(6) INSURED CREDIT UNION.—The term ‘‘in-
sured credit union’’ has the same meaning as in sec-
tion 101 of the Federal Credit Union Act.
(7) INSURED DEPOSITORY INSTITUTION.—The
term ‘‘insured depository institution’’ has the same
meaning as in section 3 of the Federal Deposit In-
surance Act.
Subtitle A—Streamlining the Home
Mortgage Lending Process
SEC. 2101. SIMPLIFICATION AND UNIFICATION OF DISCLO-
SURES REQUIRED UNDER RESPA AND TILA
FOR MORTGAGE TRANSACTIONS.
(a) IN GENERAL.—With respect to credit trans-
actions which are subject to the Real Estate Settlement
Procedures Act of 1974 and the Truth in Lending Act,
the Board of Governors of the Federal Reserve System
(hereafter in this section referred to as the ‘‘Board’’) and
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the Secretary of Housing and Urban Development (here-
after in this section referred to as the ‘‘Secretary’’) shall
take such action as may be necessary before the end of
the 6-month period beginning on the date of enactment
of this Act—
(1) to simplify and improve the disclosures ap-
plicable to such transactions under such Acts, in-
cluding the timing of the disclosures; and
(2) to provide a single format for such disclo-
sures which will satisfy the requirements of each
such Act with respect to such transactions.
(b) REGULATIONS.—To the extent that it is nec-
essary to prescribe any regulation in order to effect any
changes required to be made under subsection (a), the pro-
posed regulation shall be published in the Federal Register
before the end of the 6-month period referred to in sub-
section (a).
(c) RECOMMENDATIONS FOR LEGISLATION.—If the
Board and the Secretary find that legislative action may
be necessary or appropriate in order to simplify and unify
the disclosure requirements under the Real Estate Settle-
ment Procedures Act of 1974 and the Truth in Lending
Act, the Board and the Secretary shall submit a report
containing recommendations to the Congress concerning
such action.
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SEC. 2102. GENERAL EXEMPTION AUTHORITY FOR LOANS.
(a) REGULATORY FLEXIBILITY.—Section 104 of the
Truth in Lending Act (15 U.S.C. 1603) is amended—
(1) by redesignating paragraphs (5) and (6) as
paragraphs (6) and (7), respectively; and
(2) by inserting after paragraph (4) the follow-
ing new paragraph:
‘‘(5) Transactions for which the Board, by rule,
determines that coverage under this title is not nec-
essary to carry out the purposes of this title.’’.
(b) EXEMPTION AUTHORITY.—Section 105 of the
Truth in Lending Act (15 U.S.C. 1604) is amended by
adding at the end the following new subsection:
‘‘(f) EXEMPTION AUTHORITY.—
‘‘(1) IN GENERAL.—The Board may exempt, by
regulation, from all or part of this title any class of
transactions, other than transactions involving any
mortgage described in section 103(aa), for which, in
the determination of the Board, coverage under all
or part of this title does not provide a meaningful
benefit to consumers in the form of useful informa-
tion or protection.
‘‘(2) FACTORS FOR CONSIDERATION.—In deter-
mining which classes of transactions to exempt in
whole or in part under paragraph (1), the Board
shall consider the following factors and publish its
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rationale at the time a proposed exemption is pub-
lished for comment:
‘‘(A) The amount of the loan and whether
the disclosures, right of rescission, and other
provisions provide a benefit to the consumers
who are parties to such transactions, as deter-
mined by the Board.
‘‘(B) The extent to which the requirements
of this title complicate, hinder, or make more
expensive the credit process for the class of
transactions.
‘‘(C) The status of the borrower, includ-
ing—
‘‘(i) any related financial arrange-
ments of the borrower, as determined by
the Board;
‘‘(ii) the financial sophistication of the
borrower relative to the type of trans-
action; and
‘‘(iii) the importance to the borrower
of the credit, related supporting property,
and coverage under this title, as deter-
mined by the Board;
‘‘(D) whether the loan is secured by the
principal residence of the consumer; and
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‘‘(E) whether the goal of consumer protec-
tion would be undermined by such an exemp-
tion.’’.
SEC. 2103. REDUCTIONS IN REAL ESTATE SETTLEMENT
PROCEDURES ACT OF 1974 REGULATORY
BURDENS.
(a) UNNECESSARY DISCLOSURE.—Section 6(a) of the
Real Estate Settlement Procedures Act of 1974 (12
U.S.C. 2605(a)) is amended to read as follows:
‘‘(a) DISCLOSURE TO APPLICANT RELATING TO AS-
SIGNMENT, SALE, OR TRANSFER OF LOAN SERVICING.—
Each person who makes a federally related mortgage loan
shall disclose to each person who applies for the loan, at
the time of application for the loan, whether the servicing
of the loan may be assigned, sold, or transferred to any
other person at any time while the loan is outstanding.’’.
(b) CONSISTENCY OF REAL ESTATE SETTLEMENT
PROCEDURES ACT AND TRUTH IN LENDING ACT EXEMP-
TION OF BUSINESS LOANS.—Section 7 of the Real Estate
Settlement Procedures Act of 1974 (12 U.S.C. 2606) is
amended—
(1) by striking ‘‘This Act’’ and inserting the
following:
‘‘(a) IN GENERAL.—This Act’’; and
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(2) by adding at the end the following new sub-
section:
‘‘(b) INTERPRETATION.—In prescribing regulations
under section 19(a), the Secretary shall ensure that, with
respect to subsection (a) of this section, the exemption for
credit transactions involving extensions of credit primarily
for business, commercial, or agricultural purposes, as pro-
vided in section 7(1) of the Real Estate Settlement Proce-
dures Act of 1974 shall be the same as the exemption for
such credit transactions under section 104(1) of the Truth
in Lending Act.’’.
(c) REDESIGNATION OF CONTROLLED BUSINESS AR-
RANGEMENTS
AS
AFFILIATED
BUSINESS
ARRANGE-
MENTS.—The Real Estate Settlement Procedures Act of
1974 (12 U.S.C. 2601 et seq.) is amended—
(1) in section 3(7), by striking ‘‘controlled busi-
ness arrangement’’ and inserting ‘‘affiliated business
arrangement’’; and
(2) in subsections (c)(4) and (d)(6) of section
8, by striking ‘‘controlled business arrangements’’
and inserting ‘‘affiliated business arrangements’’.
(d) DISCLOSURES BY TELEPHONE OR ELECTRONIC
MEDIA.—Section 8(c)(4) of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2607(c)(4)(A)) is
amended by striking subparagraph (A) and inserting the
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following ‘‘(A) a disclosure is made of the existence of such
an arrangement to the person being referred and, in con-
nection with such referral, such person is provided a writ-
ten estimate of the charge or range of charges generally
made by the provider to which the person is referred (i)
in the case of a face-to-face referral or a referral made
in writing or by electronic media, at or before the time
of the referral (and compliance with this requirement in
such case may be evidenced by a notation in a written,
electronic, or similar system of records maintained in the
regular course of business); (ii) in the case of a referral
made by telephone, within 3 business days after the refer-
ral by telephone, (and in such case an abbreviated verbal
disclosure of the existence of the arrangement and the fact
that a written disclosure will be provided within 3 business
days shall be made to the person being referred during
the telephone referral); or (iii) in the case of a referral
by a lender (including a referral by a lender to an affili-
ated lender), at the time the estimates required under sec-
tion 5(c) are provided (notwithstanding clause (i) or (ii));
and any required written receipt of such disclosure (with-
out regard to the manner of the disclosure under clause
(i), (ii), or (iii)) may be obtained at the closing or settle-
ment (except that a person making a face-to-face referral
who provides the written disclosure at or before the time
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of the referral shall attempt to obtain any required written
receipt of such disclosure at such time and if the person
being referred chooses not to acknowledge the receipt of
the disclosure at that time, that fact shall be noted in the
written, electronic, or similar system of records main-
tained in the regular course of business by the person
making the referral),’’.
(e) LIMITATION ON CLAIMS ARISING FROM VIOLA-
TIONS OF REQUIREMENTS FOR SERVICING MORTGAGES
AND ADMINISTERING ESCROW ACCOUNTS.—Section 16 of
the Real Estate Settlement Procedures Act of 1974 (12
U.S.C. 2614) is amended—
(1) by striking ‘‘section 8 or 9’’ and inserting
‘‘section 6, 8, or 9’’; and
(2) by striking ‘‘within one year’’ and inserting
‘‘within 3 years in the case of a violation of section
6 and 1 year in the case of a violation of section 8
or 9’’.
(f) DELAY OF EFFECTIVENESS OF RECENT FINAL
REGULATION RELATING
TO PAYMENTS
TO EMPLOY-
EES.—Section 19 of the Real Estate Settlement Proce-
dures Act of 1974 (12 U.S.C. 2617) is amended by adding
at the end the following new subsection:
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‘‘(d) DELAY OF EFFECTIVENESS OF RECENT FINAL
REGULATION RELATING
TO PAYMENTS
TO EMPLOY-
EES.—
‘‘(1) IN
GENERAL.—The amendment to part
3500 of title 24 of the Code of Federal Regulations
contained in the final regulation prescribed by the
Secretary and published in the Federal Register on
June 7, 1996, which will, as of the effective date of
such amendment—
‘‘(A) eliminate the exemption for payments
by an employer to employees of such employer
for referral activities which is currently codified
as section 3500.14(g)(1)(vii) of such title 24;
and
‘‘(B) replace such exemption with a more
limited exemption in new clauses (vii), (viii),
and (ix) of section 3500.14 of such title 24,
shall not take effect before July 31, 1997.
‘‘(2) CONTINUATION
OF
PRIOR
RULE.—The
regulation codified as section 3500.14(g)(1)(vii) of
title 24 of the Code of Federal Regulations, relating
to employer-employee payments, as in effect on May
1, 1996, shall remain in effect until the date the
amendment referred to in paragraph (1) takes effect
in accordance with such paragraph.
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‘‘(3) PUBLIC NOTICE OF EFFECTIVE DATE.—
The Secretary shall provide public notice of the date
on which the amendment referred to in paragraph
(1) will take effect in accordance with such para-
graph not less than 90 days and not more than 180
days before such effective date.’’.
(g) TECHNICAL AND CONFORMING AMENDMENTS.—
(1) Section 4(a) of the Real Estate Settlement
Procedures Act of 1974 (12 U.S.C. 2603(a)) is
amended by striking ‘‘Federal Home Loan Bank
Board’’ and inserting ‘‘Director of the Office of
Thrift Supervision’’.
(2) Section 10(c)(1)(C) of the Real Estate Set-
tlement Procedures Act of 1974 (12 U.S.C.
2609(c)(1)(C)) is amended by striking ‘‘Not later
than the expiration of the 90-day period beginning
on the date of the enactment of the Cranston-Gon-
zalez National Affordable Housing Act, the’’ and in-
serting ‘‘The’’.
(h) REPEAL OF OBSOLETE PROVISIONS.—The Real
Estate Settlement Procedures Act of 1974 (12 U.S.C.
2601 et seq.) is amended by striking sections 13, 14 and
15.
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SEC. 2104. WAIVER FOR CERTAIN BORROWERS.
Section 105 of the Truth in Lending Act (15 U.S.C.
1604) is amended by adding at the end the following new
subsection:
‘‘(g) WAIVER FOR CERTAIN BORROWERS.—
‘‘(1) IN GENERAL.—The Board, by regulation,
may exempt from the requirements of this title cer-
tain credit transactions if—
‘‘(A) the transaction involves a consumer—
‘‘(i) with an annual earned income of
more than $200,000; or
‘‘(ii) having net assets in excess of
$1,000,000 at the time of the transaction;
and
‘‘(B) a waiver that is handwritten, signed,
and dated by the consumer is first obtained
from the consumer.
‘‘(2) ADJUSTMENTS
BY
THE
BOARD.—The
Board, at its discretion, may adjust the annual
earned income and net asset requirements of para-
graph (1) for inflation.’’.
SEC. 2105. ALTERNATIVE DISCLOSURES FOR ADJUSTABLE
RATE MORTGAGES.
Section 128(a) of the Truth in Lending Act (15
U.S.C. 1638(a)) is amended by adding at the end the fol-
lowing new paragraph:
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‘‘(14) In the case of any variable interest rate
residential mortgage transaction, in disclosures pro-
vided at application as prescribed by the Board for
a variable rate transaction secured by the consum-
er’s principal dwelling, at the option of the creditor,
a statement that the periodic payments may increase
or decrease substantially, and the maximum interest
rate and payment for a $10,000 loan originated at
a recent interest rate, as determined by the Board,
assuming the maximum periodic increases in rates
and payments under the program, or a historical ex-
ample illustrating the effects of interest rate changes
implemented according to the loan program.’’.
SEC. 2106. RESTITUTION FOR VIOLATIONS OF THE TRUTH
IN LENDING ACT.
Section 108(e)(3) of the Truth in Lending Act (15
U.S.C. 2602(3)) is amended—
(1) by striking ‘‘ordered (A) if’’ and inserting
the following: ‘‘ordered—
‘‘(A) if’’;
(2) by striking ‘‘may require a partial’’ and in-
serting ‘‘may—
‘‘(i) require a partial’’;
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(3) by striking ‘‘, except that with respect’’ and
all that follows through ‘‘Act, the agency shall re-
quire’’ and inserting ‘‘; or
‘‘(ii) require’’;
(4) by striking ‘‘reasonable, (B) the’’ and in-
serting the following: ‘‘reasonable, if (in the case of
an agency referred to in paragraph (1), (2), or (3)
of subsection (a)), the agency determines that a par-
tial adjustment or making partial payments over an
extended period is necessary to avoid causing the
creditor to become undercapitalized pursuant to sec-
tion 38 of the Federal Deposit Insurance Act;
‘‘(B) the’’; and
(5) by striking ‘‘(C) except’’ and inserting the
following:
‘‘(C) except’’.
SEC. 2107. LIMITATION ON LIABILITY UNDER THE TRUTH
IN LENDING ACT.
(a) IN GENERAL.—Section 139(a) of the Truth in
Lending Act (15 U.S.C. 1649(a)) is amended by striking
‘‘For any consumer credit transaction subject to this title’’
and inserting ‘‘For any closed end consumer credit trans-
action that is secured by real property or a dwelling, that
is subject to this title, and’’.
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(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall be effective as of September 30,
1995.
Subtitle B—Streamlining
Government Regulation
CHAPTER 1—ELIMINATING UNNECESSARY
REGULATORY 
REQUIREMENTS 
AND
PROCEDURES
SEC. 2201. ELIMINATION OF REDUNDANT APPROVAL RE-
QUIREMENT FOR OAKAR TRANSACTIONS.
(a) IN GENERAL.—Section 5(d)(3) of the Federal
Deposit Insurance Act (12 U.S.C. 1815(d)(3)) is amend-
ed—
(1) in subparagraph (A), by striking ‘‘with the
prior written approval of’’ and inserting ‘‘if the
transaction is approved by’’;
(2) in subparagraph (E)—
(A) by striking clauses (i) and (iv);
(B) by redesignating clauses (ii) and (iii)
as clauses (i) and (ii), respectively; and
(C) by adding at the end the following new
clause:
‘‘(iii) CAPITAL
REQUIREMENTS.—A
transaction described in this paragraph
shall not be approved under section
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18(c)(2) unless the acquiring, assuming, or
resulting depository institution will meet
all applicable capital requirements upon
consummation of the transaction.’’;
(3) by striking subparagraph (G); and
(4) 
by 
redesignating 
subparagraphs 
(H)
through (J) as subparagraphs (G) through (I), re-
spectively.
(b) CONFORMING AMENDMENTS.—
(1) REVISED STATUTES.—Section 5156A(b)(1)
of the Revised Statutes of the United States (12
U.S.C. 215c(b)(1)) is amended by striking ‘‘by sec-
tion 5(d)(3) of the Federal Deposit Insurance Act or
any other’’ and inserting ‘‘under any’’.
(2) 
HOME
OWNERS’ 
LOAN
ACT.—Section
10(s)(2)(A) of the Home Owners’ Loan Act (12
U.S.C. 1467a(s)(2)(A)) is amended by striking
‘‘under section 5(d)(3) of the Federal Deposit Insur-
ance Act or any other’’ and inserting ‘‘under any’’.
SEC. 2203. ELIMINATION OF DUPLICATIVE REQUIREMENTS
IMPOSED UPON BANK HOLDING COMPANIES.
(a) EXEMPTION FOR BANK HOLDING COMPANIES.—
Section 10 of the Home Owners’ Loan Act (12 U.S.C.
1467a) is amended by adding at the end the following new
subsection:
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‘‘(t) EXEMPTION
FOR
BANK
HOLDING
COMPA-
NIES.—This section shall not apply to a bank holding com-
pany that is subject to the Bank Holding Company Act
of 1956, or any company controlled by such bank holding
company.’’.
(b) DEFINITION.—Section 10(a)(1)(D) of the Home
Owners’ Loan Act (12 U.S.C. 1467a(a)(1)(D)) is amend-
ed to read as follows:
‘‘(D) SAVINGS AND LOAN HOLDING COM-
PANY.—
‘‘(i) IN
GENERAL.—Except as pro-
vided in clause (ii), the term ‘savings and
loan holding company’ means any company
that directly or indirectly controls a sav-
ings association or that controls any other
company that is a savings and loan holding
company.
‘‘(ii) EXCLUSION.—The term ‘savings
and loan holding company’ does not in-
clude a bank holding company that is reg-
istered under, and subject to, the Bank
Holding Company Act of 1956, or to any
company directly or indirectly controlled by
such company (other than a savings asso-
ciation).’’.
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(c) ACQUISITIONS.—Section 10(e)(1) of the Home
Owners’ Loan Act (12 U.S.C. 1467a(e)(1)) is amended—
(1) in subparagraph (A)(iii)(VII), by inserting
‘‘or’’ at the end;
(2) in subparagraph (A)(iv), by inserting ‘‘and’’
at the end; and
(3) in subparagraph (B)—
(A) by striking ‘‘or (ii)’’ and inserting
‘‘(ii)’’; and
(B) by inserting before the first period ‘‘,
or (iii) acquired by a bank holding company
that is registered under, and subject to, the
Bank Holding Company Act of 1956, or any
company controlled by such bank holding com-
pany’’.
(d) AMENDMENTS TO THE BANK HOLDING COMPANY
ACT OF 1956.—Section 4(i) of the Bank Holding Com-
pany Act of 1956 (12 U.S.C. 1843(i)) is amended by add-
ing at the end the following new paragraphs:
‘‘(4) SOLICITATION OF VIEWS.—
‘‘(A) NOTICE TO DIRECTOR.—Upon receiv-
ing any application or notice by a bank holding
company to acquire, directly or indirectly, a
savings association under subsection (c)(8), the
Board shall solicit comments and recommenda-
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tions from the Director with respect to such ac-
quisition.
‘‘(B) COMMENT PERIOD.—The comments
and recommendations of the Director under
subparagraph (A) with respect to any acquisi-
tion subject to such subparagraph shall be
transmitted to the Board not later than 30 days
after the receipt by the Director of the notice
relating to such acquisition (or such shorter pe-
riod as the Board may specify if the Board ad-
vises the Director that an emergency exists that
requires expeditious action).
‘‘(5) EXAMINATION.—
‘‘(A) SCOPE.—The Board shall consult
with the Director, as appropriate, in establish-
ing the scope of an examination by the Board
of a bank holding company that directly or indi-
rectly controls a savings association.
‘‘(B) ACCESS TO INSPECTION REPORTS.—
Upon the request of the Director, the Board
shall furnish the Director with a copy of any in-
spection report, additional examination mate-
rials, or supervisory information relating to any
bank holding company that directly or indirectly
controls a savings association.
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‘‘(6) COORDINATION
OF
ENFORCEMENT
EF-
FORTS.—The Board and the Director shall cooper-
ate in any enforcement action against any bank
holding company that controls a savings association,
if the relevant conduct involves such association.
‘‘(7) DIRECTOR
DEFINED.—For purposes of
this section, the term ‘Director’ means the Director
of the Office of Thrift Supervision.’’.
SEC. 2204. ELIMINATION OF THE PER BRANCH CAPITAL RE-
QUIREMENT 
FOR 
NATIONAL 
BANKS 
AND
STATE MEMBER BANKS.
Section 5155(h) of the Revised Statutes of the United
States (12 U.S.C. 36(h)) is amended to read as follows:
‘‘(h) [Repealed]’’.
SEC. 2205. ELIMINATION OF BRANCH APPLICATION RE-
QUIREMENTS FOR AUTOMATIC TELLER MA-
CHINES.
(a) ‘‘BRANCH’’ UNDER NATIONAL BANK ACT.—Sec-
tion 5155(j) of the Revised Statutes of the United States
(12 U.S.C. 36(j)) is amended by adding at the end the
following: ‘‘The term ‘branch’, as used in this section, does
not include an automated teller machine or a remote serv-
ice unit.’’.
(b) ‘‘DOMESTIC BRANCH’’ UNDER
THE FEDERAL
DEPOSIT INSURANCE ACT.—Section 3(o) of the Federal
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Deposit Insurance Act (12 U.S.C. 1813(o)) is amended
by striking ‘‘lent; and the’’ and inserting ‘‘lent. The term
‘domestic branch’ does not include an automated teller
machine or a remote service unit. The’’.
SEC. 2206. ELIMINATION OF REQUIREMENT FOR APPROVAL
OF INVESTMENTS IN BANK PREMISES FOR
WELL CAPITALIZED AND WELL MANAGED
BANKS.
Section 24A of the Federal Reserve Act (12 U.S.C.
371d) is amended to read as follows:
‘‘SEC. 24A. INVESTMENT IN BANK PREMISES OR STOCK OF
CORPORATION HOLDING PREMISES.
‘‘(a) CONDITIONS
OF INVESTMENT.—No national
bank or State member bank shall invest in bank premises,
or in the stock, bonds, debentures, or other such obliga-
tions of any corporation holding the premises of such
bank, or make loans to or upon the security of any such
corporation—
‘‘(1) unless the bank receives the prior approval
of the Comptroller of the Currency (with respect to
a national bank) or the Board (with respect to a
State member bank);
‘‘(2) unless the aggregate of all such invest-
ments and loans, together with the amount of any
indebtedness incurred by any such corporation that
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is an affiliate of the bank, is less than or equal to
the amount of the capital stock of such bank; or
‘‘(3) unless—
‘‘(A) the aggregate of all such investments
and loans, together with the amount of any in-
debtedness incurred by any such corporation
that is an affiliate of the bank, is less than or
equal to 150 percent of the capital and surplus
of the bank; and
‘‘(B) the bank—
‘‘(i) has a CAMEL composite rating
of 1 or 2 under the Uniform Financial In-
stitutions Rating System (or an equivalent
rating under a comparable rating system)
as of the most recent examination of such
bank;
‘‘(ii) is well capitalized and will con-
tinue to be well capitalized after the invest-
ment or loan; and
‘‘(iii) provides notification to the
Comptroller of the Currency (with respect
to a national bank) or to the Board (with
respect to a State member bank) not later
than 30 days after making the investment
or loan.
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‘‘(b) DEFINITIONS.—For purposes of this section—
‘‘(1) the term ‘affiliate’ has the same meaning
as in section 2 of the Banking Act of 1933; and
‘‘(2) the term ‘well capitalized’ has the same
meaning as in section 38(b) of the Federal Deposit
Insurance Act.’’.
SEC. 2207. ELIMINATION OF APPROVAL REQUIREMENT FOR
DIVESTITURES.
Section 2(g) of the Bank Holding Company Act of
1956 (12 U.S.C. 1841(g)) is amended—
(1) in paragraph (1), by adding ‘‘and’’ at the
end;
(2) in paragraph (2), by striking ‘‘; and’’ and
inserting a period; and
(3) by striking paragraph (3).
SEC. 2208. STREAMLINED NONBANKING ACQUISITIONS BY
WELL CAPITALIZED AND WELL MANAGED
BANKING ORGANIZATIONS.
(a) NOTICE REQUIREMENTS.—Section 4(j) of the
Bank Holding Company Act of 1956 (12 U.S.C. 1843(j))
is amended—
(1) in paragraph (1)(A), by striking ‘‘No’’ and
inserting ‘‘Except as provided in paragraph (3), no’’;
and
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(2) by adding at the end the following new
paragraphs:
‘‘(3) NO
NOTICE
REQUIRED
FOR
CERTAIN
TRANSACTIONS.—No notice under paragraph (1) of
this subsection or under subsection (c)(8) or
(a)(2)(B) is required for a proposal by a bank hold-
ing company to engage in any activity or acquire the
shares or assets of any company, other than an in-
sured depository institution, if the proposal qualifies
under paragraph (4).
‘‘(4) CRITERIA FOR STATUTORY APPROVAL.—A
proposal qualifies under this paragraph if all of the
following criteria are met:
‘‘(A) FINANCIAL
CRITERIA.—Both before
and immediately after the proposed trans-
action—
‘‘(i) the acquiring bank holding com-
pany is well capitalized;
‘‘(ii) the lead insured depository insti-
tution of such holding company is well cap-
italized;
‘‘(iii) well capitalized insured deposi-
tory institutions control at least 80 percent
of the aggregate total risk-weighted assets
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of insured depository institutions controlled
by such holding company; and
‘‘(iv) no insured depository institution
controlled by such holding company is
undercapitalized.
‘‘(B) MANAGERIAL CRITERIA.—
‘‘(i) WELL MANAGED.—At the time of
the transaction, the acquiring bank holding
company, its lead insured depository insti-
tution, and insured depository institutions
that control at least 90 percent of the ag-
gregate total risk-weighted assets of in-
sured depository institutions controlled by
such holding company are well managed.
‘‘(ii) LIMITATION
ON
POORLY
MAN-
AGED INSTITUTIONS.—Except as provided
in paragraph (6), no insured depository in-
stitution controlled by the acquiring bank
holding company has received 1 of the 2
lowest composite ratings at the later of the
institution’s most recent examination or
subsequent review.
‘‘(C) ACTIVITIES PERMISSIBLE.—Following
consummation of the proposal, the bank holding
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company engages directly or through a subsidi-
ary solely in—
‘‘(i) activities that are permissible
under subsection (c)(8), as determined by
the Board by regulation or order there-
under, subject to all of the restrictions,
terms, and conditions of such subsection
and such regulation or order; and
‘‘(ii) such other activities as are other-
wise permissible under this section, subject
to the restrictions, terms and conditions,
including any prior notice or approval re-
quirements, provided in this section.
‘‘(D) SIZE OF ACQUISITION.—
‘‘(i) ASSET SIZE.—The book value of
the total assets to be acquired does not ex-
ceed 10 percent of the consolidated total
risk-weighted assets of the acquiring bank
holding company.
‘‘(ii) 
CONSIDERATION.—The 
gross
consideration to be paid for the securities
or assets does not exceed 15 percent of the
consolidated Tier 1 capital of the acquiring
bank holding company.
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‘‘(E) NOTICE
NOT
OTHERWISE
WAR-
RANTED.—For proposals described in para-
graph (5)(B), the Board has not, before the
conclusion of the period provided in paragraph
(5)(B), advised the bank holding company that
a notice under paragraph (1) is required.
‘‘(F) COMPLIANCE
CRITERION.—During
the 12-month period ending on the date on
which the bank holding company proposes to
commence an activity or acquisition, no admin-
istrative enforcement action has been com-
menced, and no cease and desist order has been
issued pursuant to section 8 of the Federal De-
posit Insurance Act, against the bank holding
company or any depository institution subsidi-
ary of the holding company, and no such en-
forcement action, order, or other administrative
enforcement proceeding is pending as of such
date.
‘‘(5) NOTIFICATION.—
‘‘(A) COMMENCEMENT OF ACTIVITIES AP-
PROVED BY RULE.—A bank holding company
that qualifies under paragraph (4) and that
proposes to engage de novo, directly or through
a subsidiary, in any activity that is permissible
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under subsection (c)(8), as determined by the
Board by regulation, may commence that activ-
ity without prior notice to the Board and must
provide written notification to the Board not
later than 10 business days after commencing
the activity.
‘‘(B) ACTIVITIES
PERMITTED
BY
ORDER
AND ACQUISITIONS.—
‘‘(i) IN GENERAL.—At least 12 busi-
ness days before commencing any activity
pursuant to paragraph (3) (other than an
activity described in subparagraph (A) of
this paragraph) or acquiring shares or as-
sets of any company pursuant to para-
graph (3), the bank holding company shall
provide written notice of the proposal to
the Board, unless the Board determines
that no notice or a shorter notice period is
appropriate.
‘‘(ii) DESCRIPTION
OF
ACTIVITIES
AND
TERMS.—A notification under this
subparagraph shall include a description of
the proposed activities and the terms of
any proposed acquisition.
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‘‘(6) RECENTLY
ACQUIRED
INSTITUTIONS.—
Any insured depository institution which has been
acquired by a bank holding company during the 12-
month period preceding the date on which the com-
pany proposes to commence an activity or acquisi-
tion pursuant to paragraph (3) may be excluded for
purposes of paragraph (4)(B)(ii) if—
‘‘(A) the bank holding company has devel-
oped a plan for the institution to restore the
capital and management of the institution
which is acceptable to the appropriate Federal
banking agency; and
‘‘(B) all such insured depository institu-
tions represent, in the aggregate, less than 10
percent of the aggregate total risk-weighted as-
sets of all insured depository institutions con-
trolled by the bank holding company.
‘‘(7) ADJUSTMENT
OF
PERCENTAGES.—The
Board may, by regulation, adjust the percentages
and the manner in which the percentages of insured
depository institutions are calculated under para-
graph (4)(B)(i), (4)(D), or (6)(B) if the Board de-
termines that any such adjustment is consistent with
safety and soundness and the purposes of this Act.’’.
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(b) DEFINITIONS.—Section 2(o) of the Bank Holding
Company Act of 1956 (12 U.S.C. 1841(o)) is amended—
(1) by striking paragraph (1) and inserting the
following new paragraph:
‘‘(1) CAPITAL TERMS.—
‘‘(A) 
INSURED
DEPOSITORY
INSTITU-
TIONS.—With respect to insured depository in-
stitutions, the terms ‘well capitalized’, ‘ade-
quately capitalized’, and ‘undercapitalized’ have
the same meanings as in section 38(b) of the
Federal Deposit Insurance Act.
‘‘(B) BANK HOLDING COMPANY.—
‘‘(i) 
ADEQUATELY
CAPITALIZED.—
With respect to a bank holding company,
the term ‘adequately capitalized’ means a
level of capitalization which meets or ex-
ceeds all applicable Federal regulatory cap-
ital standards.
‘‘(ii) WELL
CAPITALIZED.—A bank
holding company is ‘well capitalized’ if it
meets the required capital levels for well
capitalized bank holding companies estab-
lished by the Board.
‘‘(C) OTHER CAPITAL TERMS.—The terms
‘Tier 1’ and ‘risk-weighted assets’ have the
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meanings given those terms in the capital
guidelines or regulations established by the
Board for bank holding companies.’’; and
(2) by adding at the end the following new
paragraphs:
‘‘(8) LEAD
INSURED
DEPOSITORY
INSTITU-
TIONS.—
‘‘(A) IN
GENERAL.—The term ‘lead in-
sured depository institution’ means the largest
insured depository institution controlled by the
subject bank holding company at any time,
based on a comparison of the average total risk-
weighted assets controlled by each insured de-
pository institution during the previous 12-
month period.
‘‘(B) BRANCH OR AGENCY.—For purposes
of this paragraph and section 4(j)(4), the term
‘insured depository institution’ includes any
branch or agency operated in the United States
by a foreign bank.
‘‘(9) WELL MANAGED.—The term ‘well man-
aged’ means—
‘‘(A) in the case of any company or deposi-
tory institution which receives examinations, the
achievement of—
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‘‘(i) a CAMEL composite rating of 1
or 2 (or an equivalent rating under an
equivalent rating system) in connection
with the most recent examination or subse-
quent review of such company or institu-
tion; and
‘‘(ii) at least a satisfactory rating for
management, if such rating is given; or
‘‘(B) in the case of a company or deposi-
tory institution that has not received an exam-
ination rating, the existence and use of manage-
rial resources which the Board determines are
satisfactory.’’.
SEC. 2209. ELIMINATION OF UNNECESSARY FILING FOR OF-
FICER AND DIRECTOR APPOINTMENTS.
Section 32 of the Federal Deposit Insurance Act (12
U.S.C. 1831i) is amended—
(1) in subsection (a)—
(A) by inserting ‘‘(or such other period, as
determined by the appropriate Federal banking
agency)’’ after ‘‘30 days’’;
(B) by striking ‘‘if the insured depository
institution or depository institution holding
company’’ and inserting ‘‘if ’’;
(C) by striking paragraphs (1) and (2);
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(D) by redesignating paragraph (3) as
paragraph (1);
(E) in paragraph (1), as redesignated—
(i) by inserting ‘‘the insured deposi-
tory institution or depository institution
holding company’’ before ‘‘is not in compli-
ance’’; and
(ii) by striking the period at the end
and inserting ‘‘; or’’; and
(F) by adding at the end the following new
paragraph:
‘‘(2) the agency determines, in connection with
the review by the agency of the plan required under
section 38 or otherwise, that such prior notice is ap-
propriate.’’; and
(2) in subsection (b), by striking ‘‘30-day pe-
riod’’ and inserting ‘‘notice period, not to exceed 90
days,’’.
SEC. 2210. AMENDMENTS TO THE DEPOSITORY INSTITU-
TION MANAGEMENT INTERLOCKS ACT.
(a) DUAL SERVICE AMONG LARGER ORGANIZA-
TIONS.—Section 204 of the Depository Institution Man-
agement Interlocks Act (12 U.S.C. 3203) is amended—
(1) by striking ‘‘$1,000,000,000’’ and inserting
‘‘$2,500,000,000’’;
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(2) by striking ‘‘$500,000,000’’ and inserting
‘‘$1,500,000,000’’; and
(3) by adding at the end the following: ‘‘In
order to allow for inflation or market changes, the
appropriate Federal depository institutions regu-
latory agencies may, by regulation, adjust, as nec-
essary, the amount of total assets required for de-
pository institutions or depository holding companies
under this section.’’.
(b) EXTENSION OF GRANDFATHER EXEMPTION.—
Section 206 of the Depository Institution Management
Interlocks Act (12 U.S.C. 3205) is amended—
(1) in subsection (a), by striking ‘‘for a period
of, subject to the requirements of subsection (c), 20
years after the date of enactment of this title’’;
(2) in subsection (b), by striking the second
sentence; and
(3) by striking subsection (c).
(c) REGULATIONS.—Section 209 of the Depository
Institution Management Interlocks Act (12 U.S.C. 3207)
is amended—
(1) in subsection (a)—
(A) by striking ‘‘(a) IN GENERAL.—Rules
and regulations’’ and inserting ‘‘Regulations’’;
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(B) by inserting ‘‘, including regulations
that permit service by a management official
that would otherwise be prohibited by section
203 or section 204, if such service would not re-
sult in a monopoly or substantial lessening of
competition,’’ after ‘‘title’’;
(C) in paragraph (4)—
(i) by striking ‘‘Federal Home Loan
Bank Board’’ and inserting ‘‘Director of
the Office of Thrift Supervision’’; and
(ii) by striking ‘‘Savings and Loan’’
and inserting ‘‘Deposit’’; and
(2) by striking subsections (b) and (c).
SEC. 2211. ELIMINATION OF RECORDKEEPING AND RE-
PORTING REQUIREMENTS FOR OFFICERS.
(a) EMPLOYEE BENEFIT PLANS.—Section 22(h)(2)
of the Federal Reserve Act (12 U.S.C. 375b(2)) is amend-
ed—
(1) by redesignating subparagraphs (A) through
(C) as clauses (i) through (iii), respectively, and in-
denting appropriately;
(2) by striking ‘‘(2) PREFERENTIAL
TERMS
PROHIBITED.—’’ and inserting the following:
‘‘(2) PREFERENTIAL TERMS PROHIBITED.—
‘‘(A) IN GENERAL.—’’; and
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(3) by adding at the end the following new sub-
paragraph:
‘‘(B) EXCEPTION.—Nothing in this para-
graph shall prohibit any extension of credit
made pursuant to a benefit or compensation
program—
‘‘(i) that is widely available to employ-
ees of the member bank; and
‘‘(ii) that does not give preference to
any officer, director, or principal share-
holder of the member bank, or to any re-
lated interest of such person, over other
employees of the member bank.’’.
(b) EXCEPTION FOR EXTENSIONS OF CREDIT TO EX-
ECUTIVE OFFICERS AND DIRECTORS OF AFFILIATES.—
Section 22(h)(8)(B) of the Federal Reserve Act (12
U.S.C. 375b(8)(B)) is amended to read as follows:
‘‘(B) EXCEPTION.—The Board may, by
regulation, make exceptions to subparagraph
(A) for any executive officer or director of a
subsidiary of a company that controls the mem-
ber bank if—
‘‘(i) the executive officer or director
does not have authority to participate, and
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does not participate, in major policymaking
functions of the member bank; and
‘‘(ii) the assets of such subsidiary do
not exceed 10 percent of the consolidated
assets of a company that controls the
member bank and such subsidiary (and is
not controlled by any other company).’’.
SEC. 2212. REPAYMENT OF TREASURY LOAN.
Section 1108 of the Federal Financial Institutions
Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 3337) is amended by adding at the end the follow-
ing new subsection.—
‘‘(c) REPAYMENT OF TREASURY LOAN.—Not later
than September 30, 1998, the Appraisal Subcommittee
shall repay to the Secretary of the Treasury the unpaid
portion of the $5,000,000 paid to the Appraisal Sub-
committee pursuant to this section.’’.
SEC. 2213. BRANCH CLOSURES.
Section 42 of the Federal Deposit Insurance Act (12
U.S.C. 1831r–1) is amended by adding at the end the fol-
lowing new subsection:
‘‘(e) SCOPE OF APPLICATION.—This section shall not
apply with respect to—
‘‘(1) an automated teller machine;
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‘‘(2) the relocation of a branch or consolidation
of one or more branches into another branch, if the
relocation or consolidation—
‘‘(A) occurs within the immediate neigh-
borhood; and
‘‘(B) does not substantially affect the na-
ture of the business or customers served; or
‘‘(3) a branch that is closed in connection
with—
‘‘(A) an emergency acquisition under—
‘‘(i) section 11(n); or
‘‘(ii) subsection (f) or (k) of section
13; or
‘‘(B) any assistance provided by the Cor-
poration under section 13(c).’’.
SEC. 2214. FOREIGN BANKS.
(a) EXAMINATION OF BRANCHES AND AGENCIES BY
BOARD.—Section 7(c) of the International Banking Act
of 1978 (12 U.S.C. 3105(c)) is amended—
(1) by striking ‘‘(c)’’ and inserting the follow-
ing:
‘‘(c) FOREIGN BANK EXAMINATIONS AND REPORT-
ING.—’’;
(2) in paragraph (1)(B), by adding at the end
the following new clause:
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‘‘(iii) AVOIDANCE OF DUPLICATION.—
In exercising its authority under this para-
graph, the Board shall take all reasonable
measures to reduce burden and avoid un-
necessary duplication of examinations.’’;
(3) by striking subparagraph (C) of paragraph
(1) and inserting the following:
‘‘(C) ON-SITE EXAMINATION.—Each Fed-
eral branch or agency, and each State branch
or agency, of a foreign bank shall be subject to
on-site examination by an appropriate Federal
banking agency or State bank supervisor as fre-
quently as would a national bank or a State
bank, respectively, by the appropriate Federal
banking agency.’’; and
(4) in paragraph (1)(D), by inserting before the
period at the end the following: ‘‘, only to the same
extent that fees are collected by the Board for exam-
ination of any State member bank’’.
(b) ESTABLISHMENT OF FOREIGN BANK OFFICES IN
THE UNITED STATES.—Section 7(d) of the International
Banking Act of 1978 (12 U.S.C. 3105(d)) is amended—
(1) in paragraph (2), by striking ‘‘The Board’’
and inserting ‘‘Except as provided in paragraph (6),
the Board’’;
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(2) in paragraph (5), by striking ‘‘Consistent
with the standards for approval in paragraph (2),
the’’; and inserting ‘‘The’’; and
(3) by adding at the end the following new
paragraphs:
‘‘(6) EXCEPTION.—
‘‘(A) IN GENERAL.—If the Board is unable
to find, under paragraph (2), that a foreign
bank is subject to comprehensive supervision or
regulation on a consolidated basis by the appro-
priate authorities in its home country, the
Board may nevertheless approve an application
by such foreign bank under paragraph (1) if—
‘‘(i) the appropriate authorities in the
home country of the foreign bank are ac-
tively working to establish arrangements
for the consolidated supervision of such
bank; and
‘‘(ii) all other factors are consistent
with approval.
‘‘(B) OTHER CONSIDERATIONS.—In decid-
ing whether to use its discretion under subpara-
graph (A), the Board shall also consider wheth-
er the foreign bank has adopted and imple-
ments procedures to combat money laundering.
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The Board may also take into account whether
the home country of the foreign bank is devel-
oping a legal regime to address money launder-
ing or is participating in multilateral efforts to
combat money laundering.
‘‘(C) ADDITIONAL
CONDITIONS.—In ap-
proving an application under this paragraph,
the Board, after requesting and taking into
consideration the views of the appropriate State
bank supervisor or the Comptroller of the Cur-
rency, as the case may be, may impose such
conditions or restrictions relating to the activi-
ties or business operations of the proposed
branch, agency, or commercial lending company
subsidiary, including restrictions on sources of
funding, as are considered appropriate. The
Board shall coordinate with the appropriate
State bank supervisor or the Comptroller of the
Currency, as appropriate, in the implementation
of such conditions or restrictions.
‘‘(D) MODIFICATION
OF
CONDITIONS.—
Any condition or restriction imposed by the
Board in connection with the approval of an ap-
plication under authority of this paragraph may
be modified or withdrawn.
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‘‘(7) TIME PERIOD FOR BOARD ACTION.—
‘‘(A) FINAL
ACTION.—The Board shall
take final action on any application under para-
graph (1) not later than 180 days after receipt
of the application, except that the Board may
extend for an additional 180 days the period
within which to take final action on such appli-
cation after providing notice of, and the reasons
for, the extension to the applicant foreign bank
and any appropriate State bank supervisor or
the Comptroller of the Currency, as appro-
priate.
‘‘(B) FAILURE
TO
SUBMIT
INFORMA-
TION.—The Board may deny any application if
it does not receive information requested from
the applicant foreign bank or appropriate au-
thorities in the home country of the foreign
bank in sufficient time to permit the Board to
evaluate such information adequately within the
time periods for final action set forth in sub-
paragraph (A).
‘‘(C) WAIVER.—A foreign bank may waive
the applicability of this paragraph with respect
to any application under paragraph (1).’’.
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(c) TERMINATION OF FOREIGN BANK OFFICES IN
THE UNITED STATES.—Section 7(e)(1)(A) of the Inter-
national Banking Act of 1978 (12 U.S.C. 3105(e)(1)(A))
is amended—
(1) by inserting ‘‘(i)’’ after ‘‘(A)’’;
(2) by striking ‘‘or’’ at the end and inserting
‘‘and’’; and
(3) by adding at the end the following new
clause:
‘‘(ii) the appropriate authorities in the
home country of the foreign bank are not mak-
ing demonstrable progress in establishing ar-
rangements for the comprehensive supervision
or regulation of such foreign bank on a consoli-
dated basis; or’’.
SEC. 2215. DISPOSITION OF FORECLOSED ASSETS.
Section 4(c)(2) of the Bank Holding Company Act
of 1956 (12 U.S.C. 1843(c)(2)) is amended—
(1) by striking ‘‘for not more than one year at
a time’’; and
(2) by striking ‘‘but no such extensions shall ex-
tend beyond a date five years’’ and inserting ‘‘and,
in the case of a bank holding company which has
not disposed of such shares within 5 years after the
date on which such shares were acquired, the Board
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may, upon the application of such company, grant
additional exemptions if, in the judgment of the
Board, such extension would not be detrimental to
the public interest and, either the bank holding com-
pany has made a good faith attempt to dispose of
such shares during such 5-year period, or the dis-
posal of such shares during such 5-year period
would have been detrimental to the company, except
that the aggregate duration of such extensions shall
not extend beyond 10 years’’.
SEC. 2216. EXEMPTION AUTHORITY FOR ANTITYING PROVI-
SION.
(a) FEDERAL RESERVE BOARD AUTHORITY.—Sec-
tion 106(b)(1) of the Bank Holding Company Act Amend-
ments of 1970 (12 U.S.C. 1972(1)) is amended in the last
sentence, by inserting ‘‘and the prohibitions of section
4(f)(9) and 4(h)(2) of the Bank Holding Company Act
of 1956’’ after ‘‘prohibition’’.
(b) OTS AUTHORITY.—Section 5(q) of the Home
Owners’ Loan Act (12 U.S.C. 1464(q)) is amended by
adding at the end the following new paragraph:
‘‘(6) EXCEPTIONS.—The Director may, by reg-
ulation or order, permit such exceptions to the pro-
hibitions of this subsection as the Director considers
will not be contrary to the purposes of this sub-
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section and which conform to exceptions granted by
the Board of Governors of the Federal Reserve Sys-
tem pursuant to section 106(b) of the Bank Holding
Company Act Amendments of 1970.’’.
SEC. 2217. FDIC APPROVAL OF NEW STATE BANK POWERS.
Section 24 of the Federal Deposit Insurance Act (12
U.S.C. 1831a) is amended—
(1) in subsection (a)—
(A) by redesignating paragraphs (1) and
(2) as subparagraphs (A) and (B), respectively,
and indenting appropriately;
(B) by striking ‘‘IN GENERAL.—’’ and in-
serting the following: ‘‘PERMISSIBLE
ACTIVI-
TIES.—
‘‘(1) IN GENERAL.—’’; and
(C) by adding at the end the following new
paragraph:
‘‘(2) PROCESSING PERIOD.—
‘‘(A) IN GENERAL.—The Corporation shall
make a determination under paragraph (1)(A)
not later than 60 days after receipt of a com-
pleted application that may be required under
this subsection.
‘‘(B) EXTENSION OF TIME PERIOD.—The
Corporation may extend the 60-day period re-
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ferred to in subparagraph (A) for not more
than 30 additional days, and shall notify the
applicant of any such extension.’’; and
(2) in subsection (d), by adding at the end the
following new paragraph:
‘‘(3) PROCESSING PERIOD.—
‘‘(A) IN GENERAL.—The Corporation shall
make a determination under paragraph (1)(A)
not later than 60 days after receipt of a com-
pleted application that may be required under
this subsection.
‘‘(B) EXTENSION OF TIME PERIOD.—The
Corporation may extend the 60-day period re-
ferred to in subparagraph (A) for not more
than 30 additional days, and shall notify the
applicant of any such extension.’’.
CHAPTER 2—ELIMINATING UNNECESSARY
REGULATORY BURDENS
SEC. 2221. SMALL BANK EXAMINATION CYCLE.
Section 10(d) of the Federal Deposit Insurance Act
(12 U.S.C. 1820(d)) is amended—
(1) by redesignating the second paragraph des-
ignated as paragraph (8) as paragraph (10), and by
inserting that paragraph, as redesignated, imme-
diately after paragraph (9); and
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(2) in paragraph (10), as redesignated, by
striking 
‘‘$175,000,000’’ 
and 
inserting
‘‘$250,000,000’’.
SEC. 2222. REQUIRED REVIEW OF REGULATIONS.
(a) IN GENERAL.—Not less frequently than once
every 10 years, the Council and each appropriate Federal
banking agency represented on the Council shall conduct
a review of all regulations prescribed by the Council or
by any such appropriate Federal banking agency, respec-
tively, in order to identify outdated or otherwise unneces-
sary regulatory requirements imposed on insured deposi-
tory institutions.
(b) PROCESS.—In conducting the review under sub-
section (a), the Council or the appropriate Federal bank-
ing agency shall—
(1) categorize the regulations described in sub-
section (a) by type (such as consumer regulations,
safety and soundness regulations, or such other des-
ignations as determined by the Council, or the ap-
propriate Federal banking agency); and
(2) at regular intervals, provide notice and so-
licit public comment on a particular category or cat-
egories of regulations, requesting commentators to
identify areas of the regulations that are outdated,
unnecessary, or unduly burdensome.
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(c) COMPLETE REVIEW.—The Council or the appro-
priate Federal banking agency shall ensure that the notice
and comment period described in subsection (b)(2) is con-
ducted with respect to all regulations described in sub-
section (a) not less frequently than once every 10 years.
(d) REGULATORY RESPONSE.—The Council or the
appropriate Federal banking agency shall—
(1) publish in the Federal Register a summary
of the comments received under this section, identi-
fying significant issues raised and providing com-
ment on such issues; and
(2) eliminate unnecessary regulations to the ex-
tent that such action is appropriate.
(e) REPORT TO CONGRESS.—Not later than 30 days
after carrying out subsection (d)(1), the Council shall sub-
mit to the Congress a report, which shall include—
(1) a summary of any significant issues raised
by public comments received by the Council and the
appropriate Federal banking agencies under this sec-
tion and the relative merits of such issues; and
(2) an analysis of whether the appropriate Fed-
eral banking agency involved is able to address the
regulatory burdens associated with such issues by
regulation, or whether such burdens must be ad-
dressed by legislative action.
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SEC. 2223. REPEAL OF IDENTIFICATION OF NONBANK FI-
NANCIAL INSTITUTION CUSTOMERS.
Subchapter II of chapter 53 of title 31, United States
Code, is amended—
(1) by striking section 5327;
(2) in the chapter analysis, by striking the item
relating to section 5327; and
(3) in section 5321(a), by striking paragraph
(7).
SEC. 2224. REPEAL OF CERTAIN REPORTING REQUIRE-
MENTS.
(a) FDIA.—Section 477 of the Federal Deposit In-
surance Corporation Improvement Act of 1991 (12 U.S.C.
251) is repealed.
(b) FIRREA.—Section 918 of the Financial Institu-
tions Reform, Recovery, and Enforcement Act of 1989 (12
U.S.C. 1833 note) is repealed.
(c) ILS.—Section 913 of the International Lending
Supervision Act of 1983 (12 U.S.C. 3912) is repealed.
SEC. 2225. INCREASE IN HOME MORTGAGE DISCLOSURE EX-
EMPTION THRESHOLD.
(a) IN GENERAL.—Section 309 of the Home Mort-
gage Disclosure Act of 1975 (12 U.S.C. 2808) is amend-
ed—
(1) by striking ‘‘This title’’ and inserting ‘‘(a)
IN GENERAL.—This title’’;
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‘‘(A) the person has made the disclosures
to the consumer required by paragraph (1); and
‘‘(B) the person will comply with sub-
section (b).’’;
(3) in subsection (b), by striking ‘‘shall’’ the
second place such term appears; and
(4) by adding at the end the following new sub-
section:
‘‘(d) PROHIBITIONS.—
‘‘(1) CERTIFICATION.—A consumer reporting
agency shall not prepare or furnish an investigative
consumer report unless the agency has received a
certification under subsection (a)(2) from the person
who requested the report.
‘‘(2) INQUIRIES.—A consumer reporting agency
shall not make an inquiry for the purpose of prepar-
ing an investigative consumer report on a consumer
for employment purposes if the making of the in-
quiry by an employer or prospective employer of the
consumer would violate any applicable Federal or
State equal employment opportunity law or regula-
tion.
‘‘(3) CERTAIN
PUBLIC
RECORD
INFORMA-
TION.—Except as otherwise provided in section 613,
a consumer reporting agency shall not furnish an in-
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vestigative consumer report that includes informa-
tion that is a matter of public record and that re-
lates to an arrest, indictment, conviction, civil judi-
cial action, tax lien, or outstanding judgment, unless
the agency has verified the accuracy of the informa-
tion during the 30-day period ending on the date on
which the report is furnished.
‘‘(4) CERTAIN
ADVERSE
INFORMATION.—A
consumer reporting agency shall not prepare or fur-
nish an investigative consumer report on a consumer
that contains information that is adverse to the in-
terest of the consumer and that is obtained through
a personal interview with a neighbor, friend, or asso-
ciate of the consumer or with another person with
whom the consumer is acquainted or who has knowl-
edge of such item of information, unless—
‘‘(A) the agency has followed reasonable
procedures to obtain confirmation of the infor-
mation, from an additional source that has
independent and direct knowledge of the infor-
mation; or
‘‘(B) the person interviewed is the best
possible source of the information.’’.
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SEC. 2415. INCREASED CRIMINAL PENALTIES FOR OBTAIN-
ING 
INFORMATION 
UNDER 
FALSE 
PRE-
TENSES.
(a) OBTAINING INFORMATION UNDER FALSE PRE-
TENSES.—Section 619 of the Fair Credit Reporting Act
(15 U.S.C. 1681q) is amended by striking ‘‘fined not more
than $5,000 or imprisoned not more than one year, or
both’’ and inserting ‘‘fined under title 18, United States
Code, imprisoned for not more than 2 years, or both’’.
(b) UNAUTHORIZED DISCLOSURES BY OFFICERS OR
EMPLOYEES.—Section 620 of the Fair Credit Reporting
Act (15 U.S.C. 1681r) is amended by striking ‘‘fined not
more than $5,000 or imprisoned not more than one year,
or both’’ and inserting ‘‘fined under title 18, United States
Code, imprisoned for not more than 2 years, or both’’.
SEC. 2416. ADMINISTRATIVE ENFORCEMENT.
(a) AVAILABLE ENFORCEMENT POWERS.—Section
621(a) of the Fair Credit Reporting Act (15 U.S.C.
1681s(a)) is amended—
(1) by inserting ‘‘(1)’’ after ‘‘(a)’’;
(2) by adding at the end the following new
paragraph:
‘‘(2)(A) In the event of a knowing violation, which
constitutes a pattern or practice of violations of this title,
the Commission may commence a civil action to recover
a civil penalty in a district court of the United States