In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Disability Insurance Reform Act of 
1994''.

SEC. 2. REFORM OF MONTHLY INSURANCE BENEFITS BASED ON DISABILITY 
              INVOLVING SUBSTANCE ABUSE.

    (a) In General.--Section 225 of the Social Security Act (42 U.S.C. 
425) is amended--
            (1) by striking the heading and inserting the following:

      ``additional rules relating to benefits based on disability

                      ``Suspension of Benefits'';

            (2) by inserting before subsection (b) the following new 
        heading:

       ``Continued Payments During Rehabilitation Program''; and

            (3) by adding at the end the following new subsection:

         ``Nonpayment of Benefits by Reason of Substance Abuse

    ``(c)(1)(A) Notwithstanding any other provision of this title, no 
benefit based on disability under this title shall be paid to any 
individual for any month during any period of consecutive months 
beginning with a month in which such individual is medically determined 
to be a drug addict or an alcoholic and ending with a month as of the 
end of which--
            ``(i) the person, through an outpatient rehabilitation 
        program, has subsequently undergone treatment appropriate for 
        such condition for 3 months at an institution or facility 
        approved by the Secretary for purposes of this subsection, and 
        has complied with the terms, conditions, and requirements of 
        such treatment and with the requirements imposed under 
        paragraph (4); and
            ``(ii) the Secretary determines that--
                    ``(I) the person has made progress towards 
                recovery, or has recovered; or
                    ``(II) if the person has not made progress towards 
                recovery, the person meets such requirements 
                established in regulations as the Secretary deems 
                appropriate to effectuate the purposes of this title.
    ``(B) In any case in which an individual's disability is based in 
whole or in part on a medical determination that the individual is a 
drug addict or alcoholic, such individual's benefits based on 
disability under this title which are otherwise payable for any month 
preceding the month in which application for such benefits is made 
(pursuant to section 202(j)(1) or the last sentence of section 223(b)) 
shall be payable only pursuant to a certification of such payment to a 
representative payee of such individual pursuant to section 205(j).
    ``(2) If, after the 3-month treatment period referred to in 
paragraph (1)(A), the Secretary determines that the person has not 
recovered from the condition treated, then, as a condition of receiving 
benefits based on disability under this title for any month after such 
period, the person must continue to comply with the terms, conditions, 
and requirements of such treatment and with the requirements imposed 
under paragraph (4), until the month in which the Secretary determines 
that the person has recovered from such condition.
    ``(3)(A) Notwithstanding any other provision of this title, in the 
case of a person who fails to continue treatment as required by 
paragraph (2), no benefit based on disability shall be paid under this 
title for any month ending after such failure and before the person has 
completed 2 weeks of such treatment.
    ``(B) In the case of a person to whom a benefit based on disability 
under this title becomes payable for any month after a month for which 
such benefit was not payable under subparagraph (A), and who thereafter 
fails to continue treatment as required by paragraph (2), no benefit 
based on disability shall be paid under this title for any month ending 
after such failure and before the person has completed 2 months of such 
treatment.
    ``(C) In the case of a person to whom a benefit based on disability 
under this title becomes payable for any month after a month for which 
such benefit was not payable under subparagraph (B), and who thereafter 
fails to continue treatment as required by paragraph (2), no benefit 
based on disability shall be paid under this title for any month ending 
after such failure.
    ``(4) For purposes of this subsection, the term `benefit based on 
disability' of an individual means a disability insurance benefit of 
such individual under section 223 or a child's, widow's, or widower's 
insurance benefit of such individual under section 202 based on the 
disability of such individual.
    ``(5) Monthly insurance benefits under this title which would be 
payable to any individual (other than the disabled individual to whom 
benefits are not payable by reason of this subsection) on the basis of 
the wages and self-employment income of such a disabled individual but 
for the provisions of paragraph (1), shall be payable as though such 
disabled individual were receiving such benefits which are not payable 
under this subsection.
    ``(6) The Secretary shall provide for the monitoring and testing of 
all individuals who are receiving benefits under this title and who as 
a condition of such benefits are required to be undergoing treatment 
and complying with the terms, conditions, and requirements thereof as 
described in the preceding provisions of this subsection, in order to 
assure such compliance and to determine the extent to which the 
imposition of such requirements is contributing to the achievement of 
the purposes of this title. The Secretary may retain jurisdiction in 
the case of a hearing before the Secretary under this title to the 
extent the Secretary determines necessary to carry out the preceding 
sentence. The Secretary shall annually submit to the Congress a full 
and complete report on the Secretary's activities under this paragraph.
    ``(7) The Secretary, in consultation with drug and alcohol 
treatment professionals, shall develop standards for drug and alcohol 
treatment programs, and in consultation with States, shall develop 
guidelines to be used to review and evaluate the progress of 
participants in such programs.''.
    (b) Preservation of Medicare Benefits.--Section 226 of such title 
(42 U.S.C. 426) is amended by adding at the end the following:
    ``(i) For purposes of this section, each person to whom a benefit 
for any month is not payable by reason of section 225(c) shall be 
treated as entitled to such benefit for such month if such person would 
be entitled to such benefit for such month in the absence of such 
section.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to benefits payable for months beginning 90 or more days after 
the date of the enactment of this Act.

SEC. 3. RESTRICTION OF FUTURE REPRESENTATIVE PAYEES TO GOVERNMENT 
              AGENCIES, STATE-LICENCED OR CERTIFIED FACILITIES, OR 
              STATE-BONDED OR LICENSED COMMUNITY-BASED NONPROFIT SOCIAL 
              SERVICE AGENCIES.

    (a) Restriction to Qualified Organizations.--Section 205(j) of the 
Social Security Act (42 U.S.C. 405(j)) is amended--
            (1) in paragraph (1), by striking ``another individual, or 
        an organization,'' and inserting ``a qualified organization'';
            (2) in paragraph (2)(A)(i), by striking ``the person'' and 
        inserting ``the qualified organization'', and by striking 
        ``such person'' and inserting ``representatives of such 
        qualified organization'';
            (3) in paragraph (2)(B)(i), by striking ``person'' each 
        place it appears in subclause (I) and inserting ``qualified 
        organization'', by striking ``person's social security account 
        number (or employer identification number)'' in subclause (II) 
        and inserting ``qualified organization's employer 
        identification number'', by striking ``such person'' in 
        subclause (III) and inserting ``such qualified organization'', 
        and by striking ``such person'' each place it appears in 
        subclause (IV) and inserting ``such qualified organization''; 
        and
            (4) by striking paragraph (2)(B)(ii), by redesignating 
        paragraph (2)(B)(i) (as amended by paragraph (3)) as paragraph 
        (2)(B), and by redesignating subclauses (I), (II), (III), and 
        (IV) of paragraph (2)(B) (as redesignated) as clauses (i), 
        (ii), (iii), and (iv), respectively.
    (b) Qualified Organization Defined.--
            (1) In general.--Section 205(j)(2)(C)(i) of such Act (42 
        U.S.C. 405(j)(2)(C)(i)) is amended by striking ``Benefits of an 
        individual may not be certified for payment to any other person 
        pursuant to this subsection if--'' and inserting ``For purposes 
        of this subsection, the term `qualified organization' means an 
        agency or instrumentality of a State or a political subdivision 
        of a State, a nonprofit facility that is licensed or certified 
        as a care facility under the law of a State or a political 
        subdivision of a State, and, in connection with services 
        provided as a representative payee under this subsection in any 
        State, a community-based nonprofit social service agency which 
        is bonded or licensed in such State. Except as otherwise 
        provided in this subsection, such term does not include any 
        person if--''.
            (2) Conforming amendments.--Section 205(j)(2)(C) of such 
        Act is further amended--
                    (A) by striking ``subparagraph (B)(i)(III)'' in 
                clause (i)(I) and inserting ``subparagraph (B)(iii)'', 
                and by striking ``subparagraph (B)(i)(IV)'' in clause 
                (i)(II) and inserting ``subparagraph (B)(iv)'';
                    (B) in clause (iii), by striking subclauses (I) and 
                (IV), by redesignating subclauses (II), (III), and (V) 
                as subclauses (I), (II), and (III), respectively, and 
                by striking ``an individual'' in subclause (III) (as 
                redesignated) and inserting ``a person''; and
                    (C) in clause (iv), by striking ``individual'' each 
                place it appears and inserting ``person''.
    (c) Authorization for Fees.--Section 205(j)(4) of such Act (42 
U.S.C. 405(j)(4)) is amended--
            (1) by striking subparagraph (A) and inserting the 
        following:
    ``(4)(A) A qualified organization may collect from an individual a 
monthly fee for expenses (including overhead) incurred by such 
organization in providing services performed as such individual's 
representative payee pursuant to this subsection if such fee does not 
exceed 10 percent of the monthly benefit involved. Any agreement 
providing for a fee in excess of the amount permitted under this 
subparagraph shall be void and shall be treated as misuse by such 
organization of such individual's benefits.'';
            (2) by striking subparagraph (B);
            (3) by redesignating subparagraph (C) as subparagraph (B) 
        and, in subparagraph (B) (as so redesignated), by striking 
        ``qualified organization'' and inserting ``person''; and
            (4) by striking subparagraph (D).
    (d) Effective Date.--The amendments made by this section shall 
apply with respect to certifications of payments to representative 
payees made on or after the date of the enactment of this Act. Section 
205(j) of the Social Security Act (42 U.S.C. 405(j)) as in effect 
immediately before the date of the enactment of this Act shall continue 
to apply, in the case of any person who is then a representative payee 
under such section with respect to benefits for which certification of 
payment to such person under such section is then in effect, until such 
certification ceases to be effective under such section as then in 
effect.
Disability Insurance Reform Act of 1994 - Amends title II (Old Age, Survivors and Disability Insurance) of the Social Security Act to prohibit the payment of benefits based on disability to any individual who is a drug addict or alcoholic until such individual:  (1) undergoes appropriate substance abuse treatment at an approved facility; (2) has complied with the terms of such treatment; and (3) either recovers or makes progress towards recovery, with benefits terminated if the individual fails to continue treatment. 
Requires lump sum disability payments to be made only through a qualified governmental or nonprofit care facility or community-based social service agency representative payees.  Makes other changes with regard to representative payees, including allowing them to collect monthly fees for expenses in providing service. 
Requires the Secretary of Health and Human Services to provide for a monitoring and testing program to ensure individual compliance with treatment requirements.

67, and approved by 
Congress, allow for such further authorizations.

                      TITLE II--GENERAL PROVISIONS

SEC. 201. ANNUAL REPORT.

    Section 3(f) of the National Science Foundation Act of 1950 (42 
U.S.C. 1862(f)) is amended to read as follows:
    ``(f) The Foundation shall provide an annual report to the 
President which shall be submitted by the Director to the Congress at 
the time of the President's annual budget submission. The report 
shall--
            ``(1) contain a strategic plan, or an update to a previous 
        strategic plan, which--
                    ``(A) defines for a three-year period the overall 
                goals for the Foundation and specific goals for each 
                major activity of the Foundation, including each 
                scientific directorate, the education directorate, and 
                the polar programs office; and
                    ``(B) describe how the identified goals relate to 
                national needs and will exploit new opportunities in 
                science and technology;
            ``(2) identify the criteria and describe the procedures 
        which the Foundation will use to assess progress toward 
        achieving the goals identified in accordance with paragraph 
        (1);
            ``(3) review the activities of the Foundation during the 
        preceding year which have contributed toward achievement of 
        goals identified in accordance with paragraph (1) and summarize 
        planned activities for the coming three years in the context of 
        the identified goals, with particular emphasis on the 
        Foundation's planned contributions to major multi-agency 
        research and education initiatives;
            ``(4) contain such recommendations as the Foundation 
        considers appropriate; and
            ``(5) include information on the acquisition and 
        disposition by the Foundation of any patents and patent 
        rights.''.

SEC. 202. NATIONAL RESEARCH FACILITIES.

    (a) Facilities Plan.--The Director shall provide to Congress 
annually, as a part of the report required under section 3(f) of the 
National Science Foundation Act of 1950, a plan for the proposed 
construction of, and repair and upgrades to, national research 
facilities. The plan shall include estimates of the cost for such 
construction, repairs, and upgrades, and estimates of the cost for the 
operation and maintenance of existing and proposed new facilities. For 
proposed new construction and for major upgrades to existing 
facilities, the plan shall include funding profiles by fiscal year and 
milestones for major phases of the construction. The plan shall include 
cost estimates in the categories of construction, repair, and upgrades 
for the year in which the plan is submitted to Congress and for not 
fewer than the succeeding 4 years.
    (b) Limitation on Obligation of Unauthorized Appropriations.--No 
funds appropriated for any project which involves construction of new 
national research facilities or construction necessary for upgrading 
the capabilities of existing national research facilities shall be 
obligated unless the funds are specifically authorized for such purpose 
by this Act or any other Act which is not an appropriations Act, or 
unless the total estimated cost to the Foundation of the construction 
project is less than $50,000,000. This subsection shall not apply to 
construction projects approved by the National Science Board prior to 
June 30, 1994.

SEC. 203. ELIGIBILITY FOR RESEARCH FACILITY AWARDS.

    Section 203(b) of the Academic Research Facilities Modernization 
Act of 1988 is amended by striking the final sentence of paragraph (3) 
and inserting in lieu thereof the following: ``The Director shall give 
priority to institutions or consortia that have not received such funds 
in the preceding 5 years, except that this sentence shall not apply to 
previous funding received for the same multiyear project.''.

SEC. 204. ADMINISTRATIVE AMENDMENTS.

    (a) National Science Foundation Act of 1950 Amendments.--The 
National Science Foundation Act of 1950 (42 U.S.C. 1861 et seq.) is 
amended--
            (1) by redesignating the subsection (k) of section 4 (42 
        U.S.C. 1863(k)) that was added by section 108 of the National 
        Science Foundation Authorization Act of 1988 as subsection (l);
            (2) in section 5(e) (42 U.S.C. 1864(e)) by amending 
        paragraph (2) to read as follows:
    ``(2) Any delegation of authority or imposition of conditions under 
paragraph (1) shall be promptly published in the Federal Register and 
reported to the Committees on Labor and Human Resources and Commerce, 
Science, and Transportation of the Senate and the Committee on Science 
of the House of Representatives.'';
            (3) by inserting ``be entitled to'' between ``shall'' and 
        ``receive'', and by inserting ``, including traveltime,'' after 
        ``Foundation'' in section 14(c) (42 U.S.C. 1873(c));
            (4) by striking section 14(j) (42 U.S.C. 1873(j)); and
            (5) by striking ``Atomic Energy Commission'' in section 
        15(a) (42 U.S.C. 1874(a)) and inserting in lieu thereof 
        ``Secretary of Energy''.
    (b) National Science Foundation Authorization Act, 1976 
Amendments.--Section 6(a) of the National Science Foundation 
Authorization Act, 1976 (42 U.S.C. 1881a(a)) is amended by striking 
``social,'' the first place it appears.
    (c) National Science Foundation Authorization Act of 1988 
Amendments.--(1) Section 117(a)(1)(B)(v) of the National Science 
Foundation Authorization Act of 1988 (42 U.S.C. 1881b(1)(B)(v)) is 
amended to read as follows:
            ``(v) from schools established outside the several States 
        and the District of Columbia by any agency of the Federal 
        Government for dependents of its employees.''.
    (2) Section 117(a)(3)(A) of such Act (42 U.S.C. 1881b(3)(A)) is 
amended by striking ``Science and Engineering Education'' and inserting 
in lieu thereof ``Education and Human Resources''.
    (d) Education for Economic Security Act Amendments.--Section 107 of 
Education for Economic Security Act (20 U.S.C. 3917) is repealed.
    (e) Technical Amendment.--The second subsection (g) of section 3 of 
the National Science Foundation Act of 1950 is repealed.

SEC. 205. INDIRECT COSTS.

    (a) Matching Funds.--Matching funds required pursuant to section 
204(a)(2)(C) of the Academic Research Facilities Modernization Act of 
1988 (42 U.S.C. 1862c(a)(2)(C)) shall not be considered facilities 
costs for purposes of determining indirect cost rates.
    (b) Report.--The Director of the Office of Science and Technology 
Policy, in consultation with other relevant agencies, shall prepare a 
report analyzing what steps would be needed to--
            (1) reduce by 10 percent the proportion of Federal 
        assistance to institutions of higher education that are 
        allocated for indirect costs; and
            (2) reduce the variance among indirect cost rates of 
        different institutions of higher education,
including an evaluation of the relative benefits and burdens of each 
option on institutions of higher education. Such report shall be 
transmitted to the Congress no later than December 31, 1995.
SEC. 206. RESEARCH INSTRUMENTATION AND FACILITIES.

    The Foundation shall incorporate the guidelines set forth in 
Important Notice No. 91, dated March 11, 1983 (48 Fed. Reg. 15754, 
April 12, 1983), relating to the use and operation of Foundation-
supported research instrumentation and facilities, in its notice of 
Grant General Conditions, and shall examine more closely the adherence 
of grantee organizations to such guidelines.

SEC. 207. FINANCIAL DISCLOSURE.

    Persons temporarily employed by or at the Foundation shall be 
subject to the same financial disclosure requirements and related 
sanctions under the Ethics in Government Act of 1978 as are permanent 
employees of the Foundation in equivalent positions.

SEC. 208. EDUCATIONAL LEAVE OF ABSENCE FOR ACTIVE DUTY.

    In order to be eligible to receive funds from the Foundation after 
September 30, 1995, an institution of higher education must provide 
that whenever any student of the institution who is a member of the 
National Guard, or other reserve component of the Armed Forces of the 
United States, is called or ordered to active duty, other than active 
duty for training, the institution shall grant the member a military 
leave of absence from their education. Persons on military leave of 
absence from their institution shall be entitled, upon release from 
military duty, to be restored to the educational status they had 
attained prior to their being ordered to military duty without loss of 
academic credits earned, scholarships or grants awarded, or tuition and 
other fees paid prior to the commencement of the military duty. It 
shall be the duty of the institution to refund tuition or fees paid or 
to credit the tuition and fees to the next semester or term after the 
termination of the educational military leave of absence at the option 
of the student.
SEC. 209. PROHIBITION OF LOBBYING ACTIVITIES.

    None of the funds authorized by this Act shall be available for any 
activity whose purpose is to influence legislation pending before the 
Congress, provided that this shall not prevent officers or employees of 
the United States or of its departments or agencies from communicating 
to Members of Congress on the request of any Member or to Congress, 
through the proper channels, requests for legislation or appropriations 
which they deem necessary for the efficient conduct of the public 
business.
SEC. 210. SCIENCE STUDIES INSTITUTE.

    (a) Amendment.--Section 822 of the National Defense Authorization 
Act for Fiscal 1991 (42 U.S.C. 6686) is amended--
            (1) by striking ``Critical Technologies Institute'' in the 
        section heading and in subsection (a), and inserting in lieu 
        thereof ``Science Studies Institute'';
            (2) in subsection (b) by striking ``As determined by the 
        chairman of the committee referred to in subsection (c), the'' 
        and inserting in lieu thereof ``The'';
            (3) by striking subsection (c), and redesignating 
        subsections (d), (e), (f), and (g) as subsections (c), (d), 
        (e), and (f), respectively;
            (4) in subsection (c), as so redesignated by paragraph (3) 
        of this subsection--
                    (A) by inserting ``science and'' after 
                ``developments and trends in'' in paragraph (1);
                    (B) by striking ``with particular emphasis'' in 
                paragraph (1) and all that follows through the end of 
                such paragraph and inserting in lieu thereof ``and 
                developing and maintaining relevant informational and 
                analytical tools.'';
                    (C) by striking ``to determine'' and all that 
                follows through ``technology policies'' in paragraph 
                (2) and inserting in lieu thereof ``with particular 
                attention to the scope and content of the Federal 
                science and technology research and develop portfolio 
                as it affects interagency and national issues'';
                    (D) by amending paragraph (3) to read as follows:
            ``(3) Initiation of studies and analysis of alternatives 
        available for ensuring the long-term strength of the United 
        States in the development and application of science and 
        technology, including appropriate roles for the Federal 
        Government, State governments, private industry, and 
        institutions of higher education in the development and 
        application of science and technology.'';
                    (E) by inserting ``science and'' after ``Executive 
                branch on'' in paragraph (4)(A); and
                    (F) by amending paragraph (4)(B) to read as 
                follows:
                    ``(B) to the interagency committees and panels of 
                the Federal Government concerned with science and 
                technology.'';
            (5) in subsection (d), as so redesignated by paragraph (3) 
        of this subsection, by striking ``subsection (d)'' and 
        inserting in lieu thereof ``subsection (c)''; and
            (6) by amending subsection (f), as so redesignated by 
        paragraph (3) of this subsection, to read as follows:
    ``(f) Sponsorship.--The Director of the Office of Science and 
Technology Policy shall be the sponsor of the Institute.''.
    (b) Conforming Usage.--All references in Federal law or regulations 
to the Critical Technologies Institute shall be considered to be 
references to the Science Studies Institute.
SEC. 211. EDUCATIONAL IMPACT.

    (a) Findings.--The Congress finds that--
            (1) Federal research funds made available to institutions 
        of higher education often create incentives for such 
        institutions to emphasize research over undergraduate teaching 
        and to narrow the focus of their graduate programs; and
            (2) National Science Foundation funds for Research and 
        Related Activities should be spent in the manner most likely to 
        improve the quality of undergraduate and graduate education in 
        institutions of higher education.
    (b) Educational Impact.--(1) The impact that a grant or cooperative 
agreement by the National Science Foundation would have on 
undergraduate and graduate education at an institution of higher 
education shall be a factor in any decision whether to award such grant 
or agreement to that institution.
    (2) Paragraph (1) shall be effective with respect to any grant or 
cooperative agreement awarded after September 30, 1996.
    (c) Report.--The Director shall provide a plan for the 
implementation of subsection (b) of this section, no later than 
December 31, 1995, to the Committee on Science of the House of 
Representatives and the Committee on Commerce, Science, and 
Transportation and the Committee on Labor and Human Resources of the 
Senate.
SEC. 212. DIVISIONS OF THE FOUNDATION.

    (a) Amendment.--Section 8 of the National Science Foundation Act of 
1950 (42 U.S.C. 1866) is amended by inserting ``The Director may 
appoint, in consultation with the Board, not more than 6 Assistant 
Directors to assist in managing the Divisions.'' after ``time to time 
determine.''.
    (b) Report.--By November 15, 1995, the Director shall transmit to 
the Congress a report on the reorganization of the National Science 
Foundation required as a result of the amendment made by subsection 
(a).
SEC. 213. LIMITATION ON APPROPRIATIONS.

    (a) Exclusive Authorization for Fiscal Year 1996.--Notwithstanding 
any other provision of law, no sums are authorized to be appropriated 
for fiscal year 1996 for the activities of the National Science 
Foundation unless such sums are specifically authorized to be 
appropriated by this Act.
    (b) Subsequent Fiscal Years.--No sums are authorized to be 
appropriated for any fiscal year after fiscal year 1996 for the 
activities of the National Science Foundation unless such sums are 
specifically authorized to be appropriated by Act of Congress with 
respect to such fiscal year.

SEC. 214. ELIGIBILITY FOR AWARDS.

    (a) In General.--The Director shall exclude from consideration for 
awards of financial assistance made by the National Science Foundation 
after fiscal year 1995 any person who received funds, other than those 
described in subsection (b), appropriated for a fiscal year after 
fiscal year 1995, from any Federal funding source for a project that 
was not subjected to a competitive, merit-based award process. Any 
exclusion from consideration pursuant to this section shall be 
effective for a period of 5 years after the person receives such 
Federal funds.
    (b) Exception.--Subsection (a) shall not apply to awards to persons 
who are members of a class specified by law for which assistance is 
awarded to members of the class according to a formula provided by law.
HR 1852 RH----2
TABLE OF CONTENTS: 
     Title I:  National Science Foundation Authorization 
     Title II:  General Provisions 
National Science Foundation Authorization Act of 1995 - 
Title I: National Science Foundation Authorization
 - Authorizes appropriations to the National Science Foundation (NSF) for FY 1996 and 1997. 
(Sec. 104) Provides for reprogramming of appropriations. 
(Sec. 105) States that nothing in this Act shall preclude additional FY 1996 authorization of appropriations for NSF. 
Title II:  General Provisions
 - Amends the National Science Foundation Act of 1950 to direct NSF to include in its annual report to the President a strategic plan defining its goals, criteria, and procedures. 
(Sec. 202) Requires NSF to submit to the Congress an annual upgrade and maintenance plan for national research facilities. 
(Sec. 203) Amends the Academic Research Facilities Modernization Act of 1988 to give research facility grant priority to institutions or consortia that have not received such funds in the preceding five years. 
(Sec. 204) Makes administrative amendments to the National Science Foundation Act of 1950, the National Science Foundation Authorization Act, 1976, the National Science Foundation Authorization Act of 1988, and the Education for Economic Security Act. 
(Sec. 206) Requires certain research instrumentation and facilities guidelines to be incorporated in NSF grant notices. 
(Sec. 207) Subjects NSF temporary employees to the same financial disclosure requirements as apply to permanent employees. 
(Sec. 208) Requires an institution of higher education receiving NSF funds to grant a military-educational leave of absence to a student on active military duty (other than training). 
(Sec. 209) Prohibits the use of any funds authorized under this Act from being used for any lobbying activity. 
(Sec. 210) Renames the Critical Technologies Institute as the Science Studies Institute. 
(Sec. 211) Requires NSF to consider the impact of a grant on undergraduate and graduate education before its award. 
(Sec. 212) Authorizes the Director of NSF to appoint up to six Assistant Directors. 
(Sec. 214) Excludes from NSF awards for five years any person who received project funds not subject to competitive merit-based awards. (Exempts persons who are members of a law-specified class.)

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Promise Zone Job Creation Act of 
2016''.

SEC. 2. PROMISE ZONES.

    (a) In General.--Subchapter Y of chapter 1 of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new part:

                        ``PART IV--PROMISE ZONES

``Sec. 1400V-1. Designation of Promise Zones.
``Sec. 1400V-2. Promise Zone employment credit.
``Sec. 1400V-3. Expensing of Promise Zone property.

``SEC. 1400V-1. DESIGNATION OF PROMISE ZONES.

    ``(a) In General.--For purposes of this part, the term `Promise 
Zone' means any area--
            ``(1) which is nominated by 1 or more local governments or 
        Indian Tribes (as defined in section 4(13) of the Native 
        American Housing Assistance and Self-Determination Act of 1996 
        (25 U.S.C. 4103(13))) for designation as a Promise Zone 
        (hereafter in this section referred to as a `nominated area'),
            ``(2) which has a continuous boundary,
            ``(3) the population of which does not exceed 200,000, and
            ``(4) which the Secretary of Housing and Urban Development 
        and the Secretary of Agriculture, acting jointly, designate as 
        a Promise Zone, after consultation with the Secretary of 
        Commerce, the Secretary of Education, the Attorney General, the 
        Secretary of Health and Human Services, the Secretary of Labor, 
        the Secretary of the Treasury, the Secretary of Transportation, 
        and other agencies as appropriate.
    ``(b) Number of Designations.--
            ``(1) In general.--Not more than 20 nominated areas may be 
        designated as Promise Zones.
            ``(2) Number of designations in rural areas.--Of the areas 
        designated under paragraph (1), six of such areas shall be 
        areas--
                    ``(A) which are outside of a metropolitan 
                statistical area (within the meaning of section 
                143(k)(2)(B)), or
                    ``(B) which are determined by the Secretary of 
                Agriculture to be rural areas.
    ``(c) Period of Designations.--
            ``(1) In general.--The Secretary of Housing and Urban 
        Development and the Secretary of Agriculture shall, acting 
        jointly, designate 20 areas as Promise Zones before January 1, 
        2017.
            ``(2) Effective dates of designations.--The designation of 
        any Promise Zone shall take effect--
                    ``(A) for purposes of priority consideration in 
                Federal grant programs and initiatives (other than this 
                part), upon execution of the Promise Zone agreement, 
                and
                    ``(B) for purposes of this part, on January 1 of 
                the first calendar year beginning after the date of the 
                execution of the Promise Zone agreement.
            ``(3) Termination of designations.--The designation of any 
        Promise Zone shall end on the earlier of--
                    ``(A) the end of the 10-year period beginning on 
                the date that such designation takes effect, or
                    ``(B) the date of the revocation of such 
                designation.
            ``(4) Application to certain zones already designated.--In 
        the case of any area designated as a Promise Zone by the 
        Secretary of Housing and Urban Development and the Secretary of 
        Agriculture before the date of the enactment of this section, 
        such area shall be taken into account as a Promise Zone 
        designated under this section and shall reduce the number of 
        Promise Zones remaining to be designated under paragraph (1).
    ``(d) Limitations on Designations.--No area may be designated under 
this section unless--
            ``(1) the entities nominating the area have the authority 
        to nominate the area of designation under this section,
            ``(2) such entities provide written assurances satisfactory 
        to the Secretary of Housing and Urban Development and the 
        Secretary of Agriculture that the competitiveness plan 
        described in the application under subsection (e) for such area 
        will be implemented and that such entities will provide the 
        Secretary of Housing and Urban Development and the Secretary of 
        Agriculture with such data regarding the economic conditions of 
        the area (before, during, and after the area's period of 
        designation as a Promise Zone) as such Secretary may require, 
        and
            ``(3) the Secretary of Housing and Urban Development and 
        the Secretary of Agriculture determine that any information 
        furnished is reasonably accurate.
    ``(e) Application.--No area may be designated under this section 
unless the application for such designation--
            ``(1) demonstrates that the nominated area satisfies the 
        eligibility criteria described in subsection (a), and
            ``(2) includes a competitiveness plan which--
                    ``(A) addresses the need of the nominated area to 
                attract investment and jobs and improve educational 
                opportunities,
                    ``(B) leverages the nominated area's economic 
                strengths and outlines targeted investments to develop 
                competitive advantages,
                    ``(C) demonstrates collaboration across a wide 
                range of stakeholders,
                    ``(D) outlines a strategy which connects the 
                nominated area to drivers of regional economic growth, 
                and
                    ``(E) proposes a strategy for focusing on increased 
                access to high-quality affordable housing and improved 
                public safety.
    ``(f) Selection Criteria.--From among the nominated areas eligible 
for designation under this section, the Secretary of Housing and Urban 
Development and the Secretary of Agriculture shall designate Promise 
Zones on the basis of--
            ``(1) the effectiveness of the competitiveness plan 
        submitted under subsection (e) and the assurances made under 
        subsection (d),
            ``(2) unemployment rates, poverty rates, household income, 
        home ownership, labor force participation, educational 
        attainment, and such other factors as the Secretary of Housing 
        and Urban Development and the Secretary of Agriculture may 
        identify, and
            ``(3) other criteria as determined by the Secretary of 
        Housing and Urban Development and the Secretary of Agriculture.
The Secretary of Housing and Urban Development and the Secretary of 
Agriculture may set minimal standards for the levels of unemployment 
and poverty that must be satisfied for designation as a Promise Zone.

``SEC. 1400V-2. PROMISE ZONE EMPLOYMENT CREDIT.

    ``(a) Amount of Credit.--For purposes of section 38, the amount of 
the Promise Zone employment credit determined under this section with 
respect to any employer for any taxable year is the applicable 
percentage of the qualified wages paid or incurred during the calendar 
year which ends with or within such taxable year.
    ``(b) Applicable Percentage.--For purposes of this section, the 
term `applicable percentage' means--
            ``(1) in the case of qualified wages described in 
        subsection (c)(1)(A), 20 percent, and
            ``(2) in the case of qualified wages described in 
        subsection (c)(1)(B), 10 percent.
    ``(c) Qualified Wages.--For purposes of this section--
            ``(1) In general.--The term `qualified wages' means any 
        wages paid or incurred by an employer for services performed by 
        an employee while such employee is--
                    ``(A) a qualified zone employee, or
                    ``(B) a qualified resident employee.
            ``(2) Only first $15,000 of wages per year taken into 
        account.--With respect to each qualified employee, the amount 
        of qualified wages taken into account for a calendar year shall 
        not exceed $15,000.
            ``(3) Coordination with work opportunity credit.--
                    ``(A) In general.--The term `qualified wages' shall 
                not include wages taken into account in determining the 
                credit under section 51.
                    ``(B) Coordination with dollar limitation.--The 
                $15,000 amount in paragraph (2) shall be reduced for 
                any calendar year by the amount of wages paid or 
                incurred during such year which are taken into account 
                in determining the credit under section 51.
            ``(4) Wages.--The term `wages' has the meaning given such 
        term by section 1397(a).
    ``(d) Qualified Employee.--For purposes of this section--
            ``(1) Qualified employee.--The term `qualified employee' 
        means any employee who is a qualified zone employee or a 
        qualified resident employee.
            ``(2) Qualified zone employee.--Except as otherwise 
        provided in this subsection, the term `qualified zone employee' 
        means, with respect to any period, any employee of an employer 
        if--
                    ``(A) substantially all of the services performed 
                during such period by such employee for such employer 
                are performed within a Promise Zone in a trade or 
                business of the employer, and
                    ``(B) the principal place of abode of such employee 
                while performing such services is within a Promise 
                Zone.
            ``(3) Qualified resident employee.--Except as otherwise 
        provided in this subsection, the term `qualified resident 
        employee' means, with respect to any period, an employee of an 
        employer if the principal place of abode of such employee 
        during such period is within a Promise Zone, but substantially 
        all of the services performed during such period by such 
        employee for such employer are not performed within a Promise 
        Zone in a trade or business of the employer.
            ``(4) Certain individuals not eligible.--The terms 
        `qualified zone employee' and `qualified resident employee' 
        shall not include any individual described in paragraph (2) of 
        section 1396(d)(2) (determined after application of paragraph 
        (3) thereof).
    ``(e) Special Rules.--Rules similar to the rules of section 1397 
shall apply for purposes of this section.
    ``(f) Taxpayer Reporting.--No credit shall be determined under this 
section with respect to any taxpayer for any taxable year unless such 
taxpayer provides the Secretary with such information as the Secretary 
may require to allow the Secretary to evaluate the effectiveness of the 
program established under this part.

``SEC. 1400V-3. EXPENSING OF PROMISE ZONE PROPERTY.

    ``(a) In General.--A taxpayer may elect to treat the cost of any 
Promise Zone property as an expense which is not chargeable to capital 
account. Any cost so treated shall be allowed as a deduction for the 
taxable year in which the Promise Zone property is placed in service.
    ``(b) Promise Zone Property.--For purposes of this section--
            ``(1) In general.--Except as otherwise provided in this 
        subsection, the term `Promise Zone property' means property--
                    ``(A) which is--
                            ``(i) tangible property (to which section 
                        168 applies) with an applicable recovery period 
                        (within the meaning of section 168) of 20 years 
                        or less,
                            ``(ii) water utility property described in 
                        section 168(e)(5),
                            ``(iii) computer software described in 
                        section 179(d)(1)(A)(ii), or
                            ``(iv) qualified leasehold improvement 
                        property (as defined in section 168(e)),
                    ``(B) which is acquired by purchase (as defined in 
                section 179(d)(2)) for use in the active conduct of a 
                trade or business, and
                    ``(C) which is originally placed in service by the 
                taxpayer in a Promise Zone.
            ``(2) Exception for certain property.--Such term shall not 
        include any property to which section 168(g) applies.
    ``(c) Election.--An election under this section shall be made under 
rules similar to the rules of section 179(c).
    ``(d) Coordination With Section 179.--For purposes of section 179, 
Promise Zone property shall not be treated as section 179 property.
    ``(e) Application of Other Rules.--Rules similar to the rules of 
paragraphs (3), (4), (5), (7), (9), and (10) of section 179(d) shall 
apply for purposes of this section.
    ``(f) Taxpayer Reporting.--This section shall not apply with 
respect to any taxpayer for any taxable year unless such taxpayer 
provides the Secretary with such information as the Secretary may 
require to allow the Secretary to evaluate the effectiveness of the 
program established under this part.''.
    (b) Conforming Amendments.--
            (1) Section 38(b) of such Code is amended by striking 
        ``plus'' at the end of paragraph (35), by striking the period 
        at the end of paragraph (36) and inserting ``, plus'', and by 
        adding at the end the following new paragraph:
            ``(37) the Promise Zone employment credit determined under 
        section 1400V-2.''.
            (2) The table of parts for subchapter Y of chapter 1 of 
        such Code is amended by adding at the end the following new 
        item:

                      ``Part IV. Promise Zones''.

    (c) Effective Date.--
            (1) In general.--Except as otherwise provided in this 
        subsection, the amendments made by this section shall take 
        effect on the date of the enactment of this Act.
            (2) Promise zone employment credit.--Section 1400V-2 of the 
        Internal Revenue Code of 1986, as added by this section, shall 
        apply to wages paid after the date of the enactment of this 
        Act, in taxable years ending after such date.
            (3) Expensing of promise zone property.--Section 1400V-3 of 
        such Code, as so added, shall apply to property placed in 
        service after the date of the enactment of this Act, in taxable 
        years ending after such date.

Promise Zone Job Creation Act of 2016 This bill amends the Internal Revenue Code to direct the Departments of Housing and Urban Development and Agriculture, acting jointly, to designate, before January 1, 2017, not more than 20 areas as Promise Zones for purposes of priority consideration in federal grant programs and initiatives. Six of such areas shall be outside of a metropolitan statistical area or shall be determined to be rural areas.  A "Promise Zone" is any area with a&nbsp;continuous boundary and a&nbsp;population of not more than&nbsp;200,000 that is nominated by one or more local governments or Indian tribes and designated on the basis of unemployment rates, poverty rates, household income, home ownership, labor force participation, and educational attainment. An application for designation as a Promise Zone shall include a competitiveness plan that addresses the need of the area to attract investment and jobs and improve educational opportunities. The bill allows: (1) a Promise Zone employment tax credit for wages paid to a qualified zone or resident employee, and (2) expensing of Promise Zone property.  A "Promise Zone property" is a property that is: (1) tangible property with a&nbsp;recovery period of 20 years or less for depreciation purposes,&nbsp;water utility property, computer software, or qualified leasehold improvement property; (2) acquired by purchase for use&nbsp;in the active conduct of a trade or business; and (3) originally placed in service in a Promise Zone.