PL-104-134 Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1996. US

This title may be cited as the ``Prison Litigation Reform Act of 1995''.

(a) In General.--Section 3626 of title 18, United States Code, is amended to read as follows:

``Sec. 3626. Appropriate remedies with respect to prison conditions

``(a) Requirements for Relief.-- ``(1) Prospective relief.--(A) Prospective relief in any civil action with respect to prison conditions shall extend no further than necessary to correct the violation of the Federal right of a particular plaintiff or plaintiffs. The court shall not grant or approve any prospective relief unless the court finds that such relief is narrowly drawn, extends no further than necessary to correct the violation of the Federal right, and is the least intrusive means necessary to correct the violation of the Federal right. The court shall give substantial weight to any adverse impact on public safety or the operation of a criminal justice system caused by the relief. ``(B) The court shall not order any prospective relief that requires or permits a government official to exceed his or her authority under State or local law or otherwise violates State or local law, unless-- ``(i) Federal law permits such relief to be ordered in violation of State or local law; ``(ii) the relief is necessary to correct the violation of a Federal right; and ``(iii) no other relief will correct the violation of the Federal right. ``(C) Nothing in this section shall be construed to authorize the courts, in exercising their remedial powers, to order the construction of prisons or the raising of taxes, or to repeal or detract from otherwise applicable limitations on the remedial powers of the courts. ``(2) Preliminary injunctive relief.--In any civil action with respect to prison conditions, to the extent otherwise authorized by law, the court may enter a temporary restraining order or an order for preliminary injunctive relief. Preliminary injunctive relief must be narrowly drawn, extend no further than necessary to correct the harm the court finds requires preliminary relief, and be the least intrusive means necessary to correct that harm. The court shall give substantial weight

to any adverse impact on public safety or the operation of a criminal justice system caused by the preliminary relief and shall respect the principles of comity set out in paragraph (1)(B) in tailoring any preliminary relief. Preliminary injunctive relief shall automatically expire on the date that is 90 days after its entry, unless the court makes the findings required under subsection (a)(1) for the entry of prospective relief and makes the order final before the expiration of the 90-day period. ``(3) Prisoner release order.--(A) In any civil action with respect to prison conditions, no prisoner release order shall be entered unless-- ``(i) a court has previously entered an order for less intrusive relief that has failed to remedy the deprivation of the Federal right sought to be remedied through the prisoner release order; and ``(ii) the defendant has had a reasonable amount of time to comply with the previous court orders. ``(B) In any civil action in Federal court with respect to prison conditions, a prisoner release order shall be entered only by a three-judge court in accordance with section 2284 of title 28, if the requirements of subparagraph (E) have been met. ``(C) A party seeking a prisoner release order in Federal court shall file with any request for such relief, a request for a three-judge court and materials sufficient to demonstrate that the requirements of subparagraph (A) have been met. ``(D) If the requirements under subparagraph (A) have been met, a Federal judge before whom a civil action with respect to prison conditions is pending who believes that a prison release order should be considered may sua sponte request the convening of a three-judge court to determine whether a prisoner release order should be entered. ``(E) The three-judge court shall enter a prisoner release order only if the court finds by clear and convincing evidence that-- ``(i) crowding is the primary cause of the violation of a Federal right; and ``(ii) no other relief will remedy the violation of the Federal right. ``(F) Any State or local official or unit of government whose jurisdiction or function includes the appropriation of funds for the construction, operation, or maintenance of program facilities, or the prosecution or custody of persons who may be released from, or not admitted to, a prison as a result of a prisoner release order shall have standing to oppose the imposition or continuation in effect of such relief and to seek termination of such relief, and shall have the right to intervene in any proceeding relating to such relief.

``(b) Termination of Relief.-- ``(1) Termination of prospective relief.--(A) In any civil action with respect to prison conditions in which prospective relief is ordered, such relief shall be terminable upon the motion of any party or intervener-- ``(i) 2 years after the date the court granted or approved the prospective relief;

``(ii) 1 year after the date the court has entered an order denying termination of prospective relief under this paragraph; or ``(iii) in the case of an order issued on or before the date of enactment of the Prison Litigation Reform Act, 2 years after such date of enactment. ``(B) Nothing in this section shall prevent the parties from agreeing to terminate or modify relief before the relief is terminated under subparagraph (A). ``(2) Immediate termination of prospective relief.--In any civil action with respect to prison conditions, a defendant or intervener shall be entitled to the immediate termination of any prospective relief if the relief was approved or granted in the absence of a finding by the court that the relief is narrowly drawn, extends no further than necessary to correct the violation of the Federal right, and is the least intrusive means necessary to correct the violation of the Federal right. ``(3) Limitation.--Prospective relief shall not terminate if the court makes written findings based on the record that prospective relief remains necessary to correct a current or ongoing violation of the Federal right, extends no further than necessary to correct the violation of the Federal right, and that the prospective relief is narrowly drawn and the least intrusive means to correct the violation. ``(4) Termination or modification of relief.--Nothing in this section shall prevent any party or intervener from seeking modification or termination before the relief is terminable under paragraph (1) or (2), to the extent that modification or termination would otherwise be legally permissible.

``(c) Settlements.-- ``(1) Consent decrees.--In any civil action with respect to prison conditions, the court shall not enter or approve a consent decree unless it complies with the limitations on relief set forth in subsection (a). ``(2) Private settlement agreements.--(A) Nothing in this section shall preclude parties from entering into a private settlement agreement that does not comply with the limitations on relief set forth in subsection (a), if the terms of that agreement are not subject to court enforcement other than the reinstatement of the civil proceeding that the agreement settled. ``(B) Nothing in this section shall preclude any party claiming that a private settlement agreement has been breached from seeking in State court any remedy available under State law.

``(d) State Law Remedies.--The limitations on remedies in this section shall not apply to relief entered by a State court based solely upon claims arising under State law. ``(e) Procedure for Motions Affecting Prospective Relief.-- ``(1) Generally.--The court shall promptly rule on any motion to modify or terminate prospective relief in a civil action with respect to prison conditions. ``(2) Automatic stay.--Any prospective relief subject to a pending motion shall be automatically stayed during the period--

``(A)(i) beginning on the 30th day after such motion is filed, in the case of a motion made under paragraph (1) or (2) of subsection (b); or ``(ii) beginning on the 180th day after such motion is filed, in the case of a motion made under any other law; and ``(B) ending on the date the court enters a final order ruling on the motion.

``(f) Special Masters.-- ``(1) In general.--(A) In any civil action in a Federal court with respect to prison conditions, the court may appoint a special master who shall be disinterested and objective and who will give due regard to the public safety, to conduct hearings on the record and prepare proposed findings of fact. ``(B) The court shall appoint a special master under this subsection during the remedial phase of the action only upon a finding that the remedial phase will be sufficiently complex to warrant the appointment. ``(2) Appointment.--(A) If the court determines that the appointment of a special master is necessary, the court shall request that the defendant institution and the plaintiff each submit a list of not more than 5 persons to serve as a special master. ``(B) Each party shall have the opportunity to remove up to 3 persons from the opposing party's list. ``(C) The court shall select the master from the persons remaining on the list after the operation of subparagraph (B). ``(3) Interlocutory appeal.--Any party shall have the right to an interlocutory appeal of the judge's selection of the special master under this subsection, on the ground of partiality. ``(4) Compensation.--The compensation to be allowed to a special master under this section shall be based on an hourly rate not greater than the hourly rate established under section 3006A for payment of court-appointed counsel, plus costs reasonably incurred by the special master. Such compensation and costs shall be paid with funds appropriated to the Judiciary. ``(5) Regular review of appointment.--In any civil action with respect to prison conditions in which a special master is appointed under this subsection, the court shall review the appointment of the special master every 6 months to determine whether the services of the special master continue to be required under paragraph (1). In no event shall the appointment of a special master extend beyond the termination of the relief. ``(6) Limitations on powers and duties.--A special master appointed under this subsection-- ``(A) may be authorized by a court to conduct hearings and prepare proposed findings of fact, which shall be made on the record; ``(B) shall not make any findings or communications ex parte; ``(C) may be authorized by a court to assist in the development of remedial plans; and ``(D) may be removed at any time, but shall be relieved of the appointment upon the termination of relief.

``(g) Definitions.--As used in this section--

``(1) the term `consent decree' means any relief entered by the court that is based in whole or in part upon the consent or acquiescence of the parties but does not include private settlements; ``(2) the term `civil action with respect to prison conditions' means any civil proceeding arising under Federal law with respect to the conditions of confinement or the effects of actions by government officials on the lives of persons confined in prison, but does not include habeas corpus proceedings challenging the fact or duration of confinement in prison; ``(3) the term `prisoner' means any person subject to incarceration, detention, or admission to any facility who is accused of, convicted of, sentenced for, or adjudicated delinquent for, violations of criminal law or the terms and conditions of parole, probation, pretrial release, or diversionary program; ``(4) the term `prisoner release order' includes any order, including a temporary restraining order or preliminary injunctive relief, that has the purpose or effect of reducing or limiting the prison population, or that directs the release from or nonadmission of prisoners to a prison; ``(5) the term `prison' means any Federal, State, or local facility that incarcerates or detains juveniles or adults accused of, convicted of, sentenced for, or adjudicated delinquent for, violations of criminal law; ``(6) the term `private settlement agreement' means an agreement entered into among the parties that is not subject to judicial enforcement other than the reinstatement of the civil proceeding that the agreement settled; ``(7) the term `prospective relief' means all relief other than compensatory monetary damages; ``(8) the term `special master' means any person appointed by a Federal court pursuant to Rule 53 of the Federal Rules of Civil Procedure or pursuant to any inherent power of the court to exercise the powers of a master, regardless of the title or description given by the court; and ``(9) the term `relief' means all relief in any form that may be granted or approved by the court, and includes consent decrees but does not include private settlement agreements.''.

(b) Application of Amendment.-- (1) In general.--Section 3626 of title 18, United States Code, as amended by this section, shall apply with respect to all prospective relief whether such relief was originally granted or approved before, on, or after the date of the enactment of this title. (2) Technical amendment.--Subsections (b) and (d) of section 20409 of the Violent Crime Control and Law <<NOTE: 18 USC 3626 note.>> Enforcement Act of 1994 are repealed.

(c) Clerical Amendment.--The table of sections at the beginning of subchapter C of chapter 229 of title 18, United States Code, is amended to read as follows:

``3626. Appropriate remedies with respect to prison conditions.''.

(a) Initiation of Civil Actions.--Section 3(c) of the Civil Rights of Institutionalized Persons Act (42 U.S.C. 1997a(c)) (referred to in this section as the ``Act'') is amended to read as follows:

``(c) The Attorney General shall personally sign any complaint filed pursuant to this section.''. (b) Certification Requirements.--Section 4 of the Act (42 U.S.C. 1997b) is amended-- (1) in subsection (a)-- (A) by striking ``he'' each place it appears and inserting ``the Attorney General''; and (B) by striking ``his'' and inserting ``the Attorney General's''; and (2) by amending subsection (b) to read as follows:

``(b) The Attorney General shall personally sign any certification made pursuant to this section.''. (c) Intervention in Actions.--Section 5 of the Act (42 U.S.C. 1997c) is amended-- (1) in subsection (b)-- (A) in paragraph (1), by striking ``he'' each place it appears and inserting ``the Attorney General''; and (B) by amending paragraph (2) to read as follows:

``(2) The Attorney General shall personally sign any certification made pursuant to this section.''; and (2) by amending subsection (c) to read as follows:

``(c) The Attorney General shall personally sign any motion to intervene made pursuant to this section.''. (d) Suits by Prisoners.--Section 7 of the Act (42 U.S.C. 1997e) is amended to read as follows:

``SEC. 7. SUITS BY PRISONERS.

``(a) Applicability of Administrative Remedies.--No action shall be brought with respect to prison conditions under section 1979 of the Revised Statutes of the United States (42 U.S.C. 1983), or any other Federal law, by a prisoner confined in any jail, prison, or other correctional facility until such administrative remedies as are available are exhausted. ``(b) Failure of State To Adopt or Adhere to Administrative Grievance Procedure.--The failure of a State to adopt or adhere to an administrative grievance procedure shall not constitute the basis for an action under section 3 or 5 of this Act. ``(c) Dismissal.--(1) The court shall on its own motion or on the motion of a party dismiss any action brought with respect to prison conditions under section 1979 of the Revised Statutes of the United States (42 U.S.C. 1983), or any other Federal law, by a prisoner confined in any jail, prison, or other correctional facility if the court is satisfied that the action is frivolous, malicious, fails to state a claim upon which relief can be granted, or seeks monetary relief from a defendant who is immune from such relief. ``(2) In the event that a claim is, on its face, frivolous, malicious, fails to state a claim upon which relief can be granted, or seeks monetary relief from a defendant who is immune from such relief, the court may dismiss the underlying claim without first requiring the exhaustion of administrative remedies. ``(d) Attorney's Fees.--(1) In any action brought by a prisoner who is confined to any jail, prison, or other correctional facility, in which attorney's fees are authorized under section 2 of the Revised Statutes of the United States (42 U.S.C. 1988), such fees shall not be awarded, except to the extent that-- ``(A) the fee was directly and reasonably incurred in proving an actual violation of the plaintiff's rights protected by a statute

pursuant to which a fee may be awarded under section 2 of the Revised Statutes; and ``(B)(i) the amount of the fee is proportionately related to the court ordered relief for the violation; or ``(ii) the fee was directly and reasonably incurred in enforcing the relief ordered for the violation.

``(2) Whenever a monetary judgment is awarded in an action described in paragraph (1), a portion of the judgment (not to exceed 25 percent) shall be applied to satisfy the amount of attorney's fees awarded against the defendant. If the award of attorney's fees is not greater than 150 percent of the judgment, the excess shall be paid by the defendant. ``(3) No award of attorney's fees in an action described in paragraph (1) shall be based on an hourly rate greater than 150 percent of the hourly rate established under section 3006A of title 18, United States Code, for payment of court-appointed counsel. ``(4) Nothing in this subsection shall prohibit a prisoner from entering into an agreement to pay an attorney's fee in an amount greater than the amount authorized under this subsection, if the fee is paid by the individual rather than by the defendant pursuant to section 2 of the Revised Statutes of the United States (42 U.S.C. 1988). ``(e) Limitation on Recovery.--No Federal civil action may be brought by a prisoner confined in a jail, prison, or other correctional facility, for mental or emotional injury suffered while in custody without a prior showing of physical injury. ``(f) Hearings.--(1) To the extent practicable, in any action brought with respect to prison conditions in Federal court pursuant to section 1979 of the Revised Statutes of the United States (42 U.S.C. 1983), or any other Federal law, by a prisoner confined in any jail, prison, or other correctional facility, pretrial proceedings in which the prisoner's participation is required or permitted shall be conducted by telephone, video conference, or other telecommunications technology without removing the prisoner from the facility in which the prisoner is confined. ``(2) Subject to the agreement of the official of the Federal, State, or local unit of government with custody over the prisoner, hearings may be conducted at the facility in which the prisoner is confined. To the extent practicable, the court shall allow counsel to participate by telephone, video conference, or other communications technology in any hearing held at the facility. ``(g) Waiver of Reply.--(1) Any defendant may waive the right to reply to any action brought by a prisoner confined in any jail, prison, or other correctional facility under section 1979 of the Revised Statutes of the United States (42 U.S.C. 1983) or any other Federal law. Notwithstanding any other law or rule of procedure, such waiver shall not constitute an admission of the allegations contained in the complaint. No relief shall be granted to the plaintiff unless a reply has been filed. ``(2) The court may require any defendant to reply to a complaint brought under this section if it finds that the plaintiff has a reasonable opportunity to prevail on the merits. ``(h) Definition.--As used in this section, the term `prisoner' means any person incarcerated or detained in any facility who is accused of, convicted of, sentenced for, or adjudicated delinquent for, violations of criminal law or the terms and conditions of parole, probation, pretrial release, or diversionary program.''.

(e) Report to Congress.--Section 8 of the Act (42 U.S.C. 1997f) is amended by striking ``his report'' and inserting ``the report''. (f) Notice to Federal Departments.--Section 10 of the Act (42 U.S.C. 1997h) is amended-- (1) by striking ``his action'' and inserting ``the action''; and (2) by striking ``he is satisfied'' and inserting ``the Attorney General is satisfied''.

(a) Filing Fees.--Section 1915 of title 28, United States Code, is amended-- (1) in subsection (a)-- (A) by striking ``(a) Any'' and inserting ``(a)(1) Subject to subsection (b), any''; (B) by striking ``and costs''; (C) by striking ``makes affidavit'' and inserting ``submits an affidavit that includes a statement of all assets such prisoner possesses''; (D) by striking ``such costs'' and inserting ``such fees''; (E) by striking ``he'' each place it appears and inserting ``the person''; (F) by adding immediately after paragraph (1), the following new paragraph:

``(2) A prisoner seeking to bring a civil action or appeal a judgment in a civil action or proceeding without prepayment of fees or security therefor, in addition to filing the affidavit filed under paragraph (1), shall submit a certified copy of the trust fund account statement (or institutional equivalent) for the prisoner for the 6-month period immediately preceding the filing of the complaint or notice of appeal, obtained from the appropriate official of each prison at which the prisoner is or was confined.''; and (G) by striking ``An appeal'' and inserting ``(3) An appeal''; (2) by redesignating subsections (b), (c), (d), and (e) as subsections (c), (d), (e), and (f), respectively; (3) by inserting after subsection (a) the following new subsection:

``(b)(1) Notwithstanding subsection (a), if a prisoner brings a civil action or files an appeal in forma pauperis, the prisoner shall be required to pay the full amount of a filing fee. The court shall assess and, when funds exist, collect, as a partial payment of any court fees required by law, an initial partial filing fee of 20 percent of the greater of-- ``(A) the average monthly deposits to the prisoner's account; or ``(B) the average monthly balance in the prisoner's account for the 6-month period immediately preceding the filing of the complaint or notice of appeal.

``(2) After payment of the initial partial filing fee, the prisoner shall be required to make monthly payments of 20 percent of the preceding month's income credited to the prisoner's account. The agency having custody of the prisoner shall forward payments from the prisoner's account to the clerk of the court each time the amount in the account exceeds $10 until the filing fees are paid.

``(3) In no event shall the filing fee collected exceed the amount of fees permitted by statute for the commencement of a civil action or an appeal of a civil action or criminal judgment. ``(4) In no event shall a prisoner be prohibited from bringing a civil action or appealing a civil or criminal judgment for the reason that the prisoner has no assets and no means by which to pay the initial partial filing fee.''; (4) in subsection (c), as redesignated by paragraph (2), by striking ``subsection (a) of this section'' and inserting ``subsections (a) and (b) and the prepayment of any partial filing fee as may be required under subsection (b)''; and (5) by amending subsection (e), as redesignated by paragraph (2), to read as follows:

``(e)(1) The court may request an attorney to represent any person unable to afford counsel. ``(2) Notwithstanding any filing fee, or any portion thereof, that may have been paid, the court shall dismiss the case at any time if the court determines that-- ``(A) the allegation of poverty is untrue; or ``(B) the action or appeal-- ``(i) is frivolous or malicious; ``(ii) fails to state a claim on which relief may be granted; or ``(iii) seeks monetary relief against a defendant who is immune from such relief.''.

(b) Exception to Discharge of Debt in Bankruptcy Proceeding.-- Section 523(a) of title 11, United States Code, is amended-- (1) in paragraph (16), by striking the period at the end and inserting ``; or''; and (2) by adding at the end the following new paragraph: ``(17) for a fee imposed by a court for the filing of a case, motion, complaint, or appeal, or for other costs and expenses assessed with respect to such filing, regardless of an assertion of poverty by the debtor under section 1915 (b) or (f) of title 28, or the debtor's status as a prisoner, as defined in section 1915(h) of title 28.''.

(c) Costs.--Section 1915(f) of title 28, United States Code (as redesignated by subsection (a)(2)), is amended-- (1) by striking ``(f) Judgment'' and inserting ``(f)(1) Judgment''; (2) by striking ``cases'' and inserting ``proceedings''; and (3) by adding at the end the following new paragraph:

``(2)(A) If the judgment against a prisoner includes the payment of costs under this subsection, the prisoner shall be required to pay the full amount of the costs ordered. ``(B) The prisoner shall be required to make payments for costs under this subsection in the same manner as is provided for filing fees under subsection (a)(2). ``(C) In no event shall the costs collected exceed the amount of the costs ordered by the court.''. (d) Successive Claims.--Section 1915 of title 28, United States Code, is amended by adding at the end the following new subsection: ``(g) In no event shall a prisoner bring a civil action or appeal a judgment in a civil action or proceeding under this section if the prisoner has, on 3 or more prior occasions, while incarcerated or detained in any facility, brought an action or appeal in a court

of the United States that was dismissed on the grounds that it is frivolous, malicious, or fails to state a claim upon which relief may be granted, unless the prisoner is under imminent danger of serious physical injury.''. (e) Definition.--Section 1915 of title 28, United States Code, is amended by adding at the end the following new subsection: ``(h) As used in this section, the term `prisoner' means any person incarcerated or detained in any facility who is accused of, convicted of, sentenced for, or adjudicated delinquent for, violations of criminal law or the terms and conditions of parole, probation, pretrial release, or diversionary program.''.

(a) In General.--Chapter 123 of title 28, United States Code, is amended by inserting after section 1915 the following new section:

``Sec. 1915A. Screening

``(a) Screening.--The court shall review, before docketing, if feasible or, in any event, as soon as practicable after docketing, a complaint in a civil action in which a prisoner seeks redress from a governmental entity or officer or employee of a governmental entity. ``(b) Grounds for Dismissal.--On review, the court shall identify cognizable claims or dismiss the complaint, or any portion of the complaint, if the complaint-- ``(1) is frivolous, malicious, or fails to state a claim upon which relief may be granted; or ``(2) seeks monetary relief from a defendant who is immune from such relief.

``(c) Definition.--As used in this section, the term `prisoner' means any person incarcerated or detained in any facility who is accused of, convicted of, sentenced for, or adjudicated delinquent for, violations of criminal law or the terms and conditions of parole, probation, pretrial release, or diversionary program.''. (b) Technical Amendment.--The analysis for chapter 123 of title 28, United States Code, is amended by inserting after the item relating to section 1915 the following new item:

``1915A. Screening.''.

Section 1346(b) of title 28, United States Code, is amended-- (1) by striking ``(b)'' and inserting ``(b)(1)''; and (2) by adding at the end the following:

``(2) No person convicted of a felony who is incarcerated while awaiting sentencing or while serving a sentence may bring a civil action against the United States or an agency, officer, or employee of the Government, for mental or emotional injury suffered while in custody without a prior showing of physical injury.''.

SATISFACTION OF PENDING RESTITUTION ORDERS.

Any compensatory damages awarded to a prisoner in connection with a civil action brought against any Federal, State, or local jail, prison, or correctional facility or against any official or agent of such jail, prison, or correctional facility, shall be paid directly to satisfy any outstanding restitution orders pending against the

prisoner. The remainder of any such award after full payment of all pending restitution orders shall be forwarded to the prisoner.

DAMAGE AWARD.

Prior to payment of any compensatory damages awarded to a prisoner in connection with a civil action brought against any Federal, State, or local jail, prison, or correctional facility or against any official or agent of such jail, prison, or correctional facility, reasonable efforts shall be made to notify the victims of the crime for which the prisoner was convicted and incarcerated concerning the pending payment of any such compensatory damages.

(a) In General.--Chapter 123 of title 28, United States Code, is amended by adding at the end the following new section:

``Sec. 1932. Revocation of earned release credit

``In any civil action brought by an adult convicted of a crime and confined in a Federal correctional facility, the court may order the revocation of such earned good time credit under section 3624(b) of title 18, United States Code, that has not yet vested, if, on its own motion or the motion of any party, the court finds that-- ``(1) the claim was filed for a malicious purpose; ``(2) the claim was filed solely to harass the party against which it was filed; or ``(3) the claimant testifies falsely or otherwise knowingly presents false evidence or information to the court.''.

(b) Technical Amendment.--The analysis for chapter 123 of title 28, United States Code, is amended by inserting after the item relating to section 1931 the following:

``1932. Revocation of earned release credit.''.

(c) Amendment of Section 3624 of Title 18.--Section 3624(b) of title 18, United States Code, is amended-- (1) in paragraph (1)-- (A) by striking the first sentence; (B) in the second sentence-- (i) by striking ``A prisoner'' and inserting ``Subject to paragraph (2), a prisoner''; (ii) by striking ``for a crime of violence,''; and (iii) by striking ``such''; (C) in the third sentence, by striking ``If the Bureau'' and inserting ``Subject to paragraph (2), if the Bureau''; (D) by striking the fourth sentence and inserting the following: ``In awarding credit under this section, the Bureau shall consider whether the prisoner, during the relevant period, has earned, or is making satisfactory progress toward earning, a high school diploma or an equivalent degree.''; and (E) in the sixth sentence, by striking ``Credit for the last'' and inserting ``Subject to paragraph (2), credit for the last''; and (2) by amending paragraph (2) to read as follows: ``(2) Notwithstanding any other law, credit awarded under this subsection after the date of enactment of the Prison Litigation Reform Act shall vest on the date the prisoner is released from custody.''.

If any provision of this title, an amendment made by this title, or the application of such provision or amendment to any person or circumstance is held to be unconstitutional, the remainder of this title, the amendments made by this title, and the application of the provisions of such to any person or circumstance shall not be affected thereby. This Act may be cited as the ``Departments of Commerce, Justice, and State, the Judiciary, and Related Agencies Appropriations Act, 1996.''.

(b) For programs, projects or activities in the District of Columbia Appropriations Act, 1996, provided as follows, to be effective as if it had been enacted into law as the regular appropriations Act:

AN ACT

Making appropriations for the government of the District of Columbia and other activities chargeable in whole or in part against the revenues of said District for the fiscal year ending September 30, 1996, and for other purposes.

This title may be cited as the ``District of Columbia School Reform Act of 1995''.

Except as otherwise provided, for purposes of this title: (1) Appropriate congressional committees.--The term ``appropriate congressional committees'' means-- (A) the Committee on Appropriations of the House of Representatives and the Committee on Appropriations of the Senate; (B) the Committee on Economic and Educational Opportunities of the House of Representatives and the Committee on Labor and Human Resources of the Senate; and (C) the Committee on Government Reform and Oversight of the House of Representatives and the Committee on Governmental Affairs of the Senate. (2) Authority.--The term ``Authority'' means the District of Columbia Financial Responsibility and Management Assist

ance Authority established under section 101(a) of the District of Columbia Financial Responsibility and Management Assistance Act of 1995 (Public Law 104-8). (3) Average daily attendance.--The term ``average daily attendance'' means the aggregate attendance of students of the school during the period divided by the number of days during the period in which-- (A) the school is in session; and (B) the students of the school are under the guidance and direction of teachers. (4) Average daily membership.--The term ``average daily membership'' means the aggregate enrollment of students of the school during the period divided by the number of days during the period in which-- (A) the school is in session; and (B) the students of the school are under the guidance and direction of teachers. (5) Board of education.--The term ``Board of Education'' means the Board of Education of the District of Columbia. (6) Board of trustees.--The term ``Board of Trustees'' means the governing board of a public charter school, the members of which are selected pursuant to the charter granted to the school and in a manner consistent with this title. (7) Consensus commission.--The term ``Consensus Commission'' means the Commission on Consensus Reform in the District of Columbia public schools established under subtitle H. (8) Core curriculum.--The term ``core curriculum'' means the concepts, factual knowledge, and skills that students in the District of Columbia should learn in kindergarten through grade 12 in academic content areas, including, at a minimum, English, mathematics, science, and history. (9) District of columbia council.--The term ``District of Columbia Council'' means the Council of the District of Columbia established pursuant to section 401 of the District of Columbia Self-Government and Governmental Reorganization Act (D.C. Code, sec. 1-221). (10) District of columbia government.-- (A) In general.--The term ``District of Columbia Government'' means the government of the District of Columbia, including-- (i) any department, agency, or instrumentality of the government of the District of Columbia; (ii) any independent agency of the District of Columbia established under part F of title IV of the District of Columbia Self-Government and Governmental Reorganization Act; (iii) any other agency, board, or commission established by the Mayor or the District of Columbia Council; (iv) the courts of the District of Columbia; (v) the District of Columbia Council; and (vi) any other agency, public authority, or public nonprofit corporation that has the authority to receive moneys directly or indirectly from the District of Columbia (other than moneys received from the sale

of goods, the provision of services, or the loaning of funds to the District of Columbia). (B) Exception.--The term ``District of Columbia Government'' neither includes the Authority nor a public charter school. (11) District of columbia government retirement system.--The term ``District of Columbia Government retirement system'' means the retirement programs authorized by the District of Columbia Council or the Congress for employees of the District of Columbia Government. (12) District of columbia public school.-- (A) In general.--The term ``District of Columbia public school'' means a public school in the District of Columbia that offers classes-- (i) at any of the grade levels from prekindergarten through grade 12; or (ii) leading to a secondary school diploma, or its recognized equivalent. (B) Exception.--The term ``District of Columbia public school'' does not include a public charter school. (13) Districtwide assessments.--The term ``districtwide assessments'' means a variety of assessment tools and strategies (including individual student assessments under subparagraph (E)(ii)) administered by the Superintendent to students enrolled in District of Columbia public schools and public charter schools that-- (A) are aligned with the District of Columbia's content standards and core curriculum; (B) provide coherent information about student attainment of such standards; (C) are used for purposes for which such assessments are valid, reliable, and unbiased, and are consistent with relevant nationally recognized professional and technical standards for such assessments; (D) involve multiple up-to-date measures of student performance, including measures that assess higher order thinking skills and understanding; and (E) provide for-- (i) the participation in such assessments of all students; (ii) individual student assessments for students that fail to reach minimum acceptable levels of performance; (iii) the reasonable adaptations and accommodations for students with special needs (as defined in paragraph (32)) necessary to measure the achievement of such students relative to the District of Columbia's content standards; and (iv) the inclusion of limited-English proficient students, who shall be assessed, to the extent practicable, in the language and form most likely to yield accurate and reliable information regarding such students' knowledge and abilities. (14) Electronic data transfer system.--The term ``electronic data transfer system'' means a computer-based process for the maintenance and transfer of student records designed

to permit the transfer of individual student records among District of Columbia public schools and public charter schools. (15) Elementary school.--The term ``elementary school'' means an institutional day or residential school that provides elementary education, as determined under District of Columbia law. (16) Eligible applicant.--The term ``eligible applicant'' means a person, including a private, public, or quasi-public entity, or an institution of higher education (as defined in section 1201(a) of the Higher Education Act of 1965 (20 U.S.C. 1141(a))), that seeks to establish a public charter school in the District of Columbia. (17) Eligible chartering authority.--The term ``eligible chartering authority'' means any of the following: (A) The Board of Education. (B) The Public Charter School Board. (C) Any one entity designated as an eligible chartering authority by enactment of a bill by the District of Columbia Council after the date of the enactment of this Act. (18) Family resource center.--The term ``family resource center'' means an information desk-- (A) located in a District of Columbia public school or a public charter school serving a majority of students whose family income is not greater than 185 percent of the income official poverty line (as defined by the Office of Management and Budget, and revised annually in accordance with section 673(2) of the Community Services Block Grant Act applicable to a family of the size involved (42 U.S.C. 9902(3))); and (B) which links students and families to local resources and public and private entities involved in child care, adult education, health and social services, tutoring, mentoring, and job training. (19) Individual career path.--The term ``individual career path'' means a program of study that provides a secondary school student the skills necessary to compete in the 21st century workforce. (20) Literacy.--The term ``literacy'' means-- (A) in the case of a minor student, such student's ability to read, write, and speak in English, and compute and solve problems at levels of proficiency necessary to function in society, to achieve such student's goals, and develop such student's knowledge and potential; and (B) in the case of an adult, such adult's ability to read, write, and speak in English, and compute and solve problems at levels of proficiency necessary to function on the job and in society, to achieve such adult's goals, and develop such adult's knowledge and potential. (21) Long-term reform plan.--The term ``long-term reform plan'' means the plan submitted by the Superintendent under section 2101. (22) Mayor.--The term ``Mayor'' means the Mayor of the District of Columbia. (23) Metrobus and metrorail transit system.--The term ``Metrobus and Metrorail Transit System'' means the bus and rail systems administered by the Washington Metropolitan Area Transit Authority.

(24) Minor student.--The term ``minor student'' means an individual who-- (A) is enrolled in a District of Columbia public school or a public charter school; and (B) is not beyond the age of compulsory school attendance, as prescribed in section 1 of article I, and section 1 of article II, of the Act of February 4, 1925 (sections 31-401 and 31-402, D.C. Code). (25) Nonresident student.--The term ``nonresident student'' means-- (A) an individual under the age of 18 who is enrolled in a District of Columbia public school or a public charter school, and does not have a parent residing in the District of Columbia; or (B) an individual who is age 18 or older and is enrolled in a District of Columbia public school or public charter school, and does not reside in the District of Columbia. (26) Parent.--The term ``parent'' means a person who has custody of a child, and who-- (A) is a natural parent of the child; (B) is a stepparent of the child; (C) has adopted the child; or (D) is appointed as a guardian for the child by a court of competent jurisdiction. (27) Petition.--The term ``petition'' means a written application. (28) Promotion gate.--The term ``promotion gate'' means the criteria, developed by the Superintendent and approved by the Board of Education, that are used to determine student promotion at different grade levels. Such criteria shall include student achievement on districtwide assessments established under subtitle C. (29) Public charter school.--The term ``public charter school'' means a publicly funded school in the District of Columbia that-- (A) is established pursuant to subtitle B; and (B) except as provided under sections 2212(d)(5) and 2213(c)(5) is not a part of the District of Columbia public schools. (30) Public charter school board.--The term ``Public Charter School Board'' means the Public Charter School Board established under section 2214. (31) Secondary school.--The term ``secondary school'' means an institutional day or residential school that provides secondary education, as determined by District of Columbia law, except that such term does not include any education beyond grade 12. (32) Student with special needs.--The term ``student with special needs'' means a student who is a child with a disability as provided in section 602(a)(1) of the Individuals with Disabilities Education Act (20 U.S.C. 1401(a)(1)) or a student who is an individual with a disability as provided in section 7(8) of the Rehabilitation Act of 1973 (29 U.S.C. 706(8)). (33) Superintendent.--The term ``Superintendent'' means the Superintendent of the District of Columbia public schools.

(34) Teacher.--The term ``teacher'' means any person employed as a teacher by the Board of Education or by a public charter school.

Except as otherwise provided in this title, this title shall be effective during the period beginning on the date of enactment of this Act and ending 5 years after such date.

Subtitle A--District of Columbia Reform Plan

(a) In General.-- (1) Plan.--The Superintendent, with the approval of the Board of Education, shall submit to the Mayor, the District of Columbia Council, the Authority, the Consensus Commission, and the appropriate congressional committees, a long-term reform plan, not later than 90 days after the date of enactment of this Act, and each February 15 thereafter. The long-term reform plan shall be consistent with the financial plan and budget for the District of Columbia for fiscal year 1996, and each financial plan and budget for a subsequent fiscal year, as the case may be, required under section 201 of the District of Columbia Financial Responsibility and Management Assistance Act of 1995. (2) Consultation.-- (A) In general.--In developing the long-term reform plan, the Superintendent-- (i) shall consult with the Board of Education, the Mayor, the District of Columbia Council, the Authority, and the Consensus Commission; and (ii) shall afford the public, interested organizations, and groups an opportunity to present their views and make recommendations regarding the long-term reform plan. (B) Summary of recommendations.--The Superintendent shall include in the long-term plan a summary of the recommendations made under subparagraph (A)(ii) and the response of the Superintendent to the recommendations.

(b) Contents.-- (1) Areas to be addressed.--The long-term reform plan shall describe how the District of Columbia public schools will become a world-class education system that prepares students for lifetime learning in the 21st century and which is on a par with the best education systems of other cities, States, and nations. The long-term reform plan shall include a description of how the District of Columbia public schools will accomplish the following: (A) Achievement at nationally and internationally competitive levels by students attending District of Columbia public schools. (B) The preparation of students for the workforce, including-- (i) providing special emphasis for students planning to obtain a postsecondary education; and (ii) the development of individual career paths.

(C) The improvement of the health and safety of students in District of Columbia public schools. (D) Local school governance, decentralization, autonomy, and parental choice among District of Columbia public schools. (E) The implementation of a comprehensive and effective adult education and literacy program. (F) The identification, beginning in grade 3, of each student who does not meet minimum standards of academic achievement in reading, writing, and mathematics in order to ensure that such student meets such standards prior to grade promotion. (G) The achievement of literacy, and the possession of the knowledge and skills necessary to think critically, communicate effectively, and perform competently on districtwide assessments, by students attending District of Columbia public schools prior to such student's completion of grade 8. (H) The establishment of after-school programs that promote self-confidence, self-discipline, self-respect, good citizenship, and respect for leaders, through such activities as arts classes, physical fitness programs, and community service. (I) Steps necessary to establish an electronic data transfer system. (J) Encourage parental involvement in all school activities, particularly parent teacher conferences. (K) Development and implementation, through the Board of Education and the Superintendent, of a uniform dress code for the District of Columbia public schools, that-- (i) shall include a prohibition of gang membership symbols; (ii) shall take into account the relative costs of any such code for each student; and (iii) may include a requirement that students wear uniforms. (L) The establishment of classes, beginning not later than grade 3, to teach students how to use computers effectively. (M) The development of community schools that enable District of Columbia public schools to collaborate with other public and nonprofit agencies and organizations, local businesses, recreational, cultural, and other community and human service entities, for the purpose of meeting the needs and expanding the opportunities available to residents of the communities served by such schools. (N) The establishment of programs which provide counseling, mentoring (especially peer mentoring), academic support, outreach, and supportive services to elementary, middle, and secondary school students who are at risk of dropping out of school. (O) The establishment of a comprehensive remedial education program to assist students who do not meet basic literacy standards, or the criteria of promotion gates established in section 2321.

(P) The establishment of leadership development projects for middle school principals, which projects shall increase student learning and achievement and strengthen such principals as instructional school leaders. (Q) The implementation of a policy for performance- based evaluation of principals and teachers, after consultation with the Superintendent and unions (including unions that represent teachers and unions that represent principals). (R) The implementation of policies that require competitive appointments for all District of Columbia public school positions. (S) The implementation of policies regarding alternative teacher certification requirements. (T) The implementation of testing requirements for teacher licensing renewal. (U) A review of the District of Columbia public school central office budget and staffing reductions for each fiscal year compared to the level of such budget and reductions at the end of fiscal year 1995. (V) The implementation of the discipline policy for the District of Columbia public schools in order to ensure a safe, disciplined environment conducive to learning. (2) Other information.--For each of the items described in subparagraphs (A) through (V) of paragraph (1), the long-term reform plan shall include-- (A) a statement of measurable, objective performance goals; (B) a description of the measures of performance to be used in determining whether the Superintendent and Board of Education have met the goals; (C) dates by which the goals shall be met; (D) plans for monitoring and reporting progress to District of Columbia residents, the Mayor, the District of Columbia Council, the Authority, the Consensus Commission, and the appropriate congressional committees regarding the carrying out of the long-term reform plan; and (E) the title of the management employee of the District of Columbia public schools most directly responsible for the achievement of each goal and, with respect to each such employee, the title of the employee's immediate supervisor or superior.

(c) Amendments.--The Superintendent, with the approval of the Board of Education, shall submit any amendment to the long-term reform plan to the Mayor, the District of Columbia Council, the Authority, the Consensus Commission, and the appropriate congressional committees. Any amendment to the long-term reform plan shall be consistent with the financial plan and budget for fiscal year 1996, and each financial plan and budget for a subsequent fiscal year, as the case may be, for the District of Columbia required under section 201 of the District of Columbia Financial Responsibility and Management Assistance Act of 1995.

Not later than December 1, 1996, the Superintendent shall submit to the appropriate congressional committees, the Board of Education, the Mayor, the Consensus Commission, and the District

of Columbia Council a report regarding the progress of the District of Columbia public schools toward achieving the goals of the long-term reform plan.

Not later than April 1, 1997, the Chairperson of the District of Columbia Council shall submit to the appropriate congressional committees a report describing legislative and other actions the District of Columbia Council has taken or will take to facilitate the implementation of the goals of the long-term reform plan.

Subtitle B--Public Charter Schools

(a) Existing Public School.--An eligible applicant seeking to convert a District of Columbia public school into a public charter school-- (1) shall prepare a petition to establish a public charter school that meets the requirements of section 2202; (2) shall provide a copy of the petition to-- (A) the parents of minor students attending the existing school; (B) adult students attending the existing school; and (C) employees of the existing school; and (3) shall file the petition with an eligible chartering authority for approval after the petition-- (A) is signed by two-thirds of the sum of-- (i) the total number of parents of minor students attending the school; and (ii) the total number of adult students attending the school; and (B) is endorsed by at least two-thirds of full-time teachers employed in the school.

(b) Private or Independent School.--An eligible applicant seeking to convert an existing private or independent school in the District of Columbia into a public charter school-- (1) shall prepare a petition to establish a public charter school that is approved by the Board of Trustees or authority responsible for the school and that meets the requirements of section 2202; (2) shall provide a copy of the petition to-- (A) the parents of minor students attending the existing school; (B) adult students attending the existing school; and (C) employees of the existing school; and (3) shall file the petition with an eligible chartering authority for approval after the petition-- (A) is signed by two-thirds of the sum of-- (i) the total number of parents of minor students attending the school; and (ii) the total number of adult students attending the school; and (B) is endorsed by at least two-thirds of full-time teachers employed in the school.

(c) New School.--An eligible applicant seeking to establish in the District of Columbia a public charter school, but not seeking to convert a District of Columbia public school or a private or

independent school into a public charter school, shall file with an eligible chartering authority for approval a petition to establish a public charter school that meets the requirements of section 2202.

A petition under section 2201 to establish a public charter school shall include the following: (1) A statement defining the mission and goals of the proposed school and the manner in which the school will conduct any districtwide assessments. (2) A statement of the need for the proposed school in the geographic area of the school site. (3) A description of the proposed instructional goals and methods for the proposed school, which shall include, at a minimum-- (A) the area of focus of the proposed school, such as mathematics, science, or the arts, if the school will have such a focus; (B) the methods that will be used, including classroom technology, to provide students with the knowledge, proficiency, and skills needed-- (i) to become nationally and internationally competitive students and educated individuals in the 21st century; and (ii) to perform competitively on any districtwide assessments; and (C) the methods that will be used to improve student self-motivation, classroom instruction, and learning for all students. (4) A description of the scope and size of the proposed school's program that will enable students to successfully achieve the goals established by the school, including the grade levels to be served by the school and the projected and maximum enrollment of each grade level. (5) A description of the plan for evaluating student academic achievement at the proposed school and the procedures for remedial action that will be used by the school when the academic achievement of a student falls below the expectations of the school. (6) An operating budget for the first 2 years of the proposed school that is based on anticipated enrollment and contains-- (A) a description of the method for conducting annual audits of the financial, administrative, and programmatic operations of the school; (B) either-- (i) an identification of the site where the school will be located, including a description of any buildings on the site and any buildings proposed to be constructed on the site; or (ii) a timetable by which such an identification will be made; (C) a description of any major contracts planned, with a value equal to or exceeding $10,000, for equipment and services, leases, improvements, purchases of real property, or insurance; and

(D) a timetable for commencing operations as a public charter school. (7) A description of the proposed rules and policies for governance and operation of the proposed school. (8) Copies of the proposed articles of incorporation and bylaws of the proposed school. (9) The names and addresses of the members of the proposed Board of Trustees and the procedures for selecting trustees. (10) A description of the student enrollment, admission, suspension, expulsion, and other disciplinary policies and procedures of the proposed school, and the criteria for making decisions in such areas. (11) A description of the procedures the proposed school plans to follow to ensure the health and safety of students, employees, and guests of the school and to comply with applicable health and safety laws, and all applicable civil rights statutes and regulations of the Federal Government and the District of Columbia. (12) An explanation of the qualifications that will be required of employees of the proposed school. (13) An identification, and a description, of the individuals and entities submitting the petition, including their names and addresses, and the names of the organizations or corporations of which such individuals are directors or officers. (14) A description of how parents, teachers, and other members of the community have been involved in the design and will continue to be involved in the implementation of the proposed school. (15) A description of how parents and teachers will be provided an orientation and other training to ensure their effective participation in the operation of the public charter school. (16) An assurance the proposed school will seek, obtain, and maintain accreditation from at least one of the following: (A) The Middle States Association of Colleges and Schools. (B) The Association of Independent Maryland Schools. (C) The Southern Association of Colleges and Schools. (D) The Virginia Association of Independent Schools. (E) American Montessori Internationale. (F) The American Montessori Society. (G) The National Academy of Early Childhood Programs. (H) Any other accrediting body deemed appropriate by the eligible chartering authority that granted the charter to the school. (17) In the case that the proposed school's educational program includes preschool or prekindergarten, an assurance the proposed school will be licensed as a child development center by the District of Columbia Government not later than the first date on which such program commences. (18) An explanation of the relationship that will exist between the public charter school and the school's employees. (19) A statement of whether the proposed school elects to be treated as a local educational agency or a District of Columbia public school for purposes of part B of the Individuals

With Disabilities Education Act (20 U.S.C. 1411 et seq.) and section 504 of the Rehabilitation Act of 1973 (20 U.S.C. 794), and notwithstanding any other provision of law the eligible chartering authority shall not have the authority to approve or disapprove such election.

PETITIONS.

(a) Schedule.--An eligible chartering authority shall establish a schedule for receiving petitions to establish a public charter school and shall publish any such schedule in the District of Columbia Register and newspapers of general circulation. (b) Public Hearing.--Not later than 45 days after a petition to establish a public charter school is filed with an eligible chartering authority, the eligible chartering authority shall hold a public hearing on the petition to gather the information that is necessary for the eligible chartering authority to make the decision to approve or deny the petition. (c) Notice.--Not later than 10 days prior to the scheduled date of a public hearing on a petition to establish a public charter school, an eligible chartering authority-- (1) shall publish a notice of the hearing in the District of Columbia Register and newspapers of general circulation; and (2) shall send a written notification of the hearing date to the eligible applicant who filed the petition.

(d) Approval.--Subject to subsection (i), an eligible chartering authority may approve a petition to establish a public charter school, if-- (1) the eligible chartering authority determines that the petition satisfies the requirements of this subtitle; (2) the eligible applicant who filed the petition agrees to satisfy any condition or requirement, consistent with this subtitle and other applicable law, that is set forth in writing by the eligible chartering authority as an amendment to the petition; and (3) the eligible chartering authority determines that the public charter school has the ability to meet the educational objectives outlined in the petition.

(e) Timetable.--An eligible chartering authority shall approve or deny a petition to establish a public charter school not later than 45 days after the conclusion of the public hearing on the petition. (f) Extension.--An eligible chartering authority and an eligible applicant may agree to extend the 45-day time period referred to in subsection (e) by a period that shall not exceed 30 days. (g) Denial Explanation.--If an eligible chartering authority denies a petition or finds the petition to be incomplete, the eligible chartering authority shall specify in writing the reasons for its decision and indicate, when the eligible chartering authority determines appropriate, how the eligible applicant who filed the petition may revise the petition to satisfy the requirements for approval. (h) Approved Petition.-- (1) Notice.--Not later than 10 days after an eligible chartering authority approves a petition to establish a public charter school, the eligible chartering authority shall provide a written notice of the approval, including a copy of the

approved petition and any conditions or requirements agreed to under subsection (d)(2), to the eligible applicant and to the Chief Financial Officer of the District of Columbia. The eligible chartering authority shall publish a notice of the approval of the petition in the District of Columbia Register and newspapers of general circulation. (2) Charter.--The provisions described in paragraphs (1), (7), (8), (11), (16), (17), and (18) of section 2202 of a petition to establish a public charter school that are approved by an eligible chartering authority, together with any amendments to such provisions in the petition containing conditions or requirements agreed to by the eligible applicant under subsection (d)(2), shall be considered a charter granted to the school by the eligible chartering authority.

(i) Number of Petitions.-- (1) First year.--For academic year 1996-1997, not more than 10 petitions to establish public charter schools may be approved under this subtitle. (2) Subsequent years.--For academic year 1997-1998 and each academic year thereafter each eligible chartering authority shall not approve more than 5 petitions to establish a public charter school under this subtitle.

(j) Exclusive Authority of the Eligible Chartering Authority.--No governmental entity, elected official, or employee of the District of Columbia shall make, participate in making, or intervene in the making of, the decision to approve or deny a petition to establish a public charter school, except for officers or employees of the eligible chartering authority with which the petition is filed.

CHARTER SCHOOLS.

(a) Duties.--A public charter school shall comply with all of the terms and provisions of its charter. (b) Powers.--A public charter school shall have the following powers: (1) To adopt a name and corporate seal, but only if the name selected includes the words ``public charter school''. (2) To acquire real property for use as the public charter school's facilities, from public or private sources. (3) To receive and disburse funds for public charter school purposes. (4) Subject to subsection (c)(1), to secure appropriate insurance and to make contracts and leases, including agreements to procure or purchase services, equipment, and supplies. (5) To incur debt in reasonable anticipation of the receipt of funds from the general fund of the District of Columbia or the receipt of Federal or private funds. (6) To solicit and accept any grants or gifts for public charter school purposes, if the public charter school-- (A) does not accept any grants or gifts subject to any condition contrary to law or contrary to its charter; and (B) maintains for financial reporting purposes separate accounts for grants or gifts. (7) To be responsible for the public charter school's operation, including preparation of a budget and personnel matters.

(8) To sue and be sued in the public charter school's own name.

(c) Prohibitions and Other Requirements.-- (1) Contracting authority.-- (A) Notice requirement.--Except in the case of an emergency (as determined by the eligible chartering authority of a public charter school), with respect to any contract proposed to be awarded by the public charter school and having a value equal to or exceeding $10,000, the school shall publish a notice of a request for proposals in the District of Columbia Register and newspapers of general circulation not less than 30 days prior to the award of the contract. (B) Submission to the authority.-- (i) Deadline for submission.--With respect to any contract described in subparagraph (A) that is awarded by a public charter school, the school shall submit to the Authority, not later than 3 days after the date on which the award is made, all bids for the contract received by the school, the name of the contractor who is awarded the contract, and the rationale for the award of the contract. (ii) Effective date of contract.-- (I) In general.--Subject to subclause (II), a contract described in subparagraph (A) shall become effective on the date that is 15 days after the date the school makes the submission under clause (i) with respect to the contract, or the effective date specified in the contract, whichever is later. (II) Exception.--A contract described in subparagraph (A) shall be considered null and void if the Authority determines, within 12 days of the date the school makes the submission under clause (i) with respect to the contract, that the contract endangers the economic viability of the public charter school. (2) Tuition.--A public charter school may not charge tuition, fees, or other mandatory payments, except to nonresident students, or for field trips or similar activities. (3) Control.--A public charter school-- (A) shall exercise exclusive control over its expenditures, administration, personnel, and instructional methods, within the limitations imposed in this subtitle; and (B) shall be exempt from District of Columbia statutes, policies, rules, and regulations established for the District of Columbia public schools by the Superintendent, Board of Education, Mayor, District of Columbia Council, or Authority, except as otherwise provided in the school's charter or this subtitle. (4) Health and safety.--A public charter school shall maintain the health and safety of all students attending such school. (5) Civil rights and idea.--The Age Discrimination Act of 1975 (42 U.S.C. 6101 et seq.), title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.), title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq.), section 504

of the Rehabilitation Act of 1973 (29 U.S.C. 794), part B of the Individuals with Disabilities Education Act (20 U.S.C. 1411 et seq.), and the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.), shall apply to a public charter school. (6) Governance.--A public charter school shall be governed by a Board of Trustees in a manner consistent with the charter granted to the school and the provisions of this subtitle. (7) Other staff.--No employee of the District of Columbia public schools may be required to accept employment with, or be assigned to, a public charter school. (8) Other students.--No student enrolled in a District of Columbia public school may be required to attend a public charter school. (9) Taxes or bonds.--A public charter school shall not levy taxes or issue bonds. (10) Charter revision.--A public charter school seeking to revise its charter shall prepare a petition for approval of the revision and file the petition with the eligible chartering authority that granted the charter. The provisions of section 2203 shall apply to such a petition in the same manner as such provisions apply to a petition to establish a public charter school. (11) Annual report.-- (A) In general.--A public charter school shall submit an annual report to the eligible chartering authority that approved its charter. The school shall permit a member of the public to review any such report upon request. (B) Contents.--A report submitted under subparagraph (A) shall include the following data: (i) A report on the extent to which the school is meeting its mission and goals as stated in the petition for the charter school. (ii) Student performance on any districtwide assessments. (iii) Grade advancement for students enrolled in the public charter school. (iv) Graduation rates, college admission test scores, and college admission rates, if applicable. (v) Types and amounts of parental involvement. (vi) Official student enrollment. (vii) Average daily attendance. (viii) Average daily membership. (ix) A financial statement audited by an independent certified public accountant in accordance with Government auditing standards for financial audits issued by the Comptroller General of the United States. (x) A report on school staff indicating the qualifications and responsibilities of such staff. (xi) A list of all donors and grantors that have contributed monetary or in-kind donations having a value equal to or exceeding $500 during the year that is the subject of the report. (C) Nonidentifying data.--Data described in clauses (i) through (ix) of subparagraph (B) that are included in an annual report shall not identify the individuals to whom the data pertain.

(12) Census.--A public charter school shall provide to the Board of Education student enrollment data necessary for the Board of Education to comply with section 3 of article II of the Act of February 4, 1925 (D.C. Code, sec. 31-404) (relating to census of minors). (13) Complaint resolution process.--A public charter school shall establish an informal complaint resolution process. (14) Program of education.--A public charter school shall provide a program of education which shall include one or more of the following: (A) Preschool. (B) Prekindergarten. (C) Any grade or grades from kindergarten through grade 12. (D) Residential education. (E) Adult, community, continuing, and vocational education programs. (15) Nonsectarian nature of schools.--A public charter school shall be nonsectarian and shall not be affiliated with a sectarian school or religious institution. (16) Nonprofit status of school.--A public charter school shall be organized under the District of Columbia Nonprofit Corporation Act (D.C. Code, sec. 29-501 et seq.). (17) Immunity from civil liability.-- (A) In general.--A public charter school, and its incorporators, Board of Trustees, officers, employees, and volunteers, shall be immune from civil liability, both personally and professionally, for any act or omission within the scope of their official duties unless the act or omission-- (i) constitutes gross negligence; (ii) constitutes an intentional tort; or (iii) is criminal in nature. (B) Common law immunity preserved.--Subparagraph (A) shall not be construed to abrogate any immunity under common law of a person described in such subparagraph.

(a) Board of Trustees.--The members of a Board of Trustees of a public charter school shall be elected or selected pursuant to the charter granted to the school. Such Board of Trustees shall have an odd number of members that does not exceed 7, of which-- (1) a majority shall be residents of the District of Columbia; and (2) at least 2 shall be parents of a student attending the school.

(b) Eligibility.--An individual is eligible for election or selection to the Board of Trustees of a public charter school if the person-- (1) is a teacher or staff member who is employed at the school; (2) is a parent of a student attending the school; or (3) meets the election or selection criteria set forth in the charter granted to the school.

(c) Election or Selection of Parents.--In the case of the first Board of Trustees of a public charter school to be elected

or selected after the date on which the school is granted a charter, the election or selection of the members under subsection (a)(2) shall occur on the earliest practicable date after classes at the school have commenced. Until such date, any other members who have been elected or selected shall serve as an interim Board of Trustees. Such an interim Board of Trustees may exercise all of the powers, and shall be subject to all of the duties, of a Board of Trustees. (d) Fiduciaries.--The Board of Trustees of a public charter school shall be fiduciaries of the school and shall set overall policy for the school. The Board of Trustees may make final decisions on matters related to the operation of the school, consistent with the charter granted to the school, this subtitle, and other applicable law.

(a) Open Enrollment.--Enrollment in a public charter school shall be open to all students who are residents of the District of Columbia and, if space is available, to nonresident students who meet the tuition requirement in subsection (e). (b) Criteria for Admission.--A public charter school may not limit enrollment on the basis of a student's race, color, religion, national origin, language spoken, intellectual or athletic ability, measures of achievement or aptitude, or status as a student with special needs. A public charter school may limit enrollment to specific grade levels. (c) Random Selection.--If there are more applications to enroll in a public charter school from students who are residents of the District of Columbia than there are spaces available, students shall be admitted using a random selection process. (d) Admission to an Existing School.--During the 5-year period beginning on the date that a petition, filed by an eligible applicant seeking to convert a District of Columbia public school or a private or independent school into a public charter school, is approved, the school may give priority in enrollment to-- (1) students enrolled in the school at the time the petition is granted; (2) the siblings of students described in paragraph (1); and (3) in the case of the conversion of a District of Columbia public school, students who reside within the attendance boundaries, if any, in which the school is located.

(e) Nonresident Students.--Nonresident students shall pay tuition to attend a public charter school at the applicable rate established for District of Columbia public schools administered by the Board of Education for the type of program in which the student is enrolled.

(f) Student Withdrawal.--A student may withdraw from a public charter school at any time and, if otherwise eligible, enroll in a District of Columbia public school administered by the Board of Education. (g) Expulsion and Suspension.--The principal of a public charter school may expel or suspend a student from the school based on criteria set forth in the charter granted to the school.

(a) Extended Leave of Absence Without Pay.--

(1) Leave of absence from district of columbia public schools.--The Superintendent shall grant, upon request, an extended leave of absence, without pay, to an employee of the District of Columbia public schools for the purpose of permitting the employee to accept a position at a public charter school for a 2-year term. (2) Request for extension.--At the end of a 2-year term referred to in paragraph (1), an employee granted an extended leave of absence without pay under such paragraph may submit a request to the Superintendent for an extension of the leave of absence for an unlimited number of 2-year terms. The Superintendent may not unreasonably (as determined by the eligible chartering authority) withhold approval of the request. (3) Rights upon termination of leave.--An employee granted an extended leave of absence without pay for the purpose described in paragraph (1) or (2) shall have the same rights and benefits under law upon termination of such leave of absence as an employee of the District of Columbia public schools who is granted an extended leave of absence without pay for any other purpose.

(b) Retirement System.-- (1) Creditable service.--An employee of a public charter school who has received a leave of absence under subsection (a) shall receive creditable service, as defined in section 2604 of D.C. Law 2-139, effective March 3, 1979 (D.C. Code, sec. 1- 627.4) and the rules established under such section, for the period of the employee's employment at the public charter school. (2) Authority to establish separate system.--A public charter school may establish a retirement system for employees under its authority. (3) Election of retirement system.--A former employee of the District of Columbia public schools who becomes an employee of a public charter school within 60 days after the date the employee's employment with the District of Columbia public schools is terminated may, at the time the employee commences employment with the public charter school, elect-- (A) to remain in a District of Columbia Government retirement system and continue to receive creditable service for the period of their employment at a public charter school; or (B) to transfer into a retirement system established by the public charter school pursuant to paragraph (2). (4) Prohibited employment conditions.--No public charter school may require a former employee of the District of Columbia public schools to transfer to the public charter school's retirement system as a condition of employment. (5) Contributions.-- (A) Employees electing not to transfer.--In the case of a former employee of the District of Columbia public schools who elects to remain in a District of Columbia Government retirement system pursuant to paragraph (3)(A), the public charter school that employs the person shall make the same contribution to such system on behalf of the person as the District of Columbia would have been required to make if the person had continued to be an employee of the District of Columbia public schools.

(B) Employees electing to transfer.--In the case of a former employee of the District of Columbia public schools who elects to transfer into a retirement system of a public charter school pursuant to paragraph (3)(B), the applicable District of Columbia Government retirement system from which the former employee is transferring shall compute the employee's contribution to that system and transfer this amount, to the retirement system of the public charter school.

(c) Employment Status.--Notwithstanding any other provision of law and except as provided in this section, an employee of a public charter school shall not be considered to be an employee of the District of Columbia Government for any purpose.

A student attending a public charter school shall be eligible for reduced fares on the Metrobus and Metrorail Transit System on the same terms and conditions as are applicable under section 2 of D.C. Law 2- 152, effective March 9, 1979 (D.C. Code, sec. 44-216 et seq.), to a student attending a District of Columbia public school.

CHARTER SCHOOLS.

The Superintendent may provide services, such as facilities maintenance, to public charter schools. All compensation for costs of such services shall be subject to negotiation and mutual agreement between a public charter school and the Superintendent.

(a) Elementary and Secondary Education Act of 1965.-- (1) Treatment as local educational agency.-- (A) In general.--For any fiscal year, a public charter school shall be considered to be a local educational agency for purposes of part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et seq.), and shall be eligible for assistance under such part, if the fraction the numerator of which is the number of low-income students enrolled in the public charter school during the fiscal year preceding the fiscal year for which the determination is made and the denominator of which is the total number of students enrolled in such public charter school for such preceding year, is equal to or greater than the lowest fraction determined for any District of Columbia public school receiving assistance under such part A where the numerator is the number of low-income students enrolled in such public school for such preceding year and the denominator is the total number of students enrolled in such public school for such preceding year. (B) Definition.--For the purposes of this subsection, the term ``low-income student'' means a student from a low-income family determined according to the measure adopted by the District of Columbia to carry out the provisions of part A of title I of the Elementary and Secondary Education Act of 1965 that is consistent with the measures described in section 1113(a)(5) of such Act (20 U.S.C. 6313(a)(5)) for the fiscal year for which the determination is made.

(2) Allocation for fiscal years 1996 through 1998.-- (A) Public charter schools.--For fiscal years 1996 through 1998, each public charter school that is eligible to receive assistance under part A of title I of the Elementary and Secondary Education Act of 1965 shall receive a portion of the District of Columbia's total allocation under such part which bears the same ratio to such total allocation as the number described in subparagraph (C) bears to the number described in subparagraph (D). (B) District of columbia public schools.--For fiscal years 1996 through 1998, the District of Columbia public schools shall receive a portion of the District of Columbia's total allocation under part A of title I of the Elementary and Secondary Education Act of 1965 which bears the same ratio to such total allocation as the total of the numbers described in clauses (ii) and (iii) of subparagraph (D) bears to the aggregate total described in subparagraph (D). (C) Number of eligible students enrolled in the public charter school.--The number described in this subparagraph is the number of low-income students enrolled in the public charter school during the fiscal year preceding the fiscal year for which the determination is made. (D) Aggregate number of eligible students.--The number described in this subparagraph is the aggregate total of the following numbers: (i) The number of low-income students who, during the fiscal year preceding the fiscal year for which the determination is made, were enrolled in a public charter school. (ii) The number of low-income students who, during the fiscal year preceding the fiscal year for which the determination is made, were enrolled in a District of Columbia public school selected to provide services under part A of title I of the Elementary and Secondary Education Act of 1965. (iii) The number of low-income students who, during the fiscal year preceding the fiscal year for which the determination is made-- (I) were enrolled in a private or independent school; and (II) resided in an attendance area of a District of Columbia public school selected to provide services under part A of title I of the Elementary and Secondary Education Act of 1965. (3) Allocation for fiscal year 1999 and thereafter.-- (A) Calculation by secretary.--Notwithstanding sections 1124(a)(2), 1124A(a)(4), and 1125(d) of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6333(a)(2), 6334(a)(4), and 6335(d)), for fiscal year 1999 and each fiscal year thereafter, the total allocation under part A of title I of such Act for all local educational agencies in the District of Columbia, including public charter schools that are eligible to receive assistance under such part, shall be calculated by the Secretary of Education. In making such calculation, such Secretary shall treat all

such local educational agencies as if such agencies were a single local educational agency for the District of Columbia. (B) Allocation.-- (i) Public charter schools.--For fiscal year 1999 and each fiscal year thereafter, each public charter school that is eligible to receive assistance under part A of title I of the Elementary and Secondary Education Act of 1965 shall receive a portion of the total allocation calculated under subparagraph (A) which bears the same ratio to such total allocation as the number described in paragraph (2)(C) bears to the aggregate total described in paragraph (2)(D). (ii) District of columbia public school.--For fiscal year 1999 and each fiscal year thereafter, the District of Columbia public schools shall receive a portion of the total allocation calculated under subparagraph (A) which bears the same ratio to such total allocation as the total of the numbers described in clauses (ii) and (iii) of paragraph (2)(D) bears to the aggregate total described in paragraph (2)(D). (4) Use of esea funds.--The Board of Education may not direct a public charter school in the school's use of funds under part A of title I of the Elementary and Secondary Education Act of 1965. (5) ESEA requirements.--Except as provided in paragraph (6), a public charter school receiving funds under part A of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) shall comply with all requirements applicable to schools receiving such funds. (6) Inapplicability of certain esea provisions.--The following provisions of the Elementary and Secondary Education Act of 1965 shall not apply to a public charter school: (A) Paragraphs (5) and (8) of section 1112(b) (20 U.S.C. 6312(b)). (B) Paragraphs (1)(A), (1)(B), (1)(C), (1)(D), (1)(F), (1)(H), and (3) of section 1112(c) (20 U.S.C. 6312(c)). (C) Section 1113 (20 U.S.C. 6313). (D) Section 1115A (20 U.S.C. 6316). (E) Subsections (a), (b), and (c) of section 1116 (20 U.S.C. 6317). (F) Subsections (d) and (e) of section 1118 (20 U.S.C. 6319). (G) Section 1120 (20 U.S.C. 6321). (H) Subsections (a) and (c) of section 1120A (20 U.S.C. 6322). (I) Section 1126 (20 U.S.C. 6337).

(b) Property and Sales Taxes.--A public charter school shall be exempt from District of Columbia property and sales taxes. (c) Education of Children With Disabilities.--Notwithstanding any other provision of this title, each public charter school shall elect to be treated as a local educational agency or a District of Columbia public school for the purpose of part B of the Individuals With Disabilities Education Act (20 U.S.C. 1411 et seq.) and section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794).

(a) Oversight.-- (1) In general.--An eligible chartering authority-- (A) shall monitor the operations of each public charter school to which the eligible chartering authority has granted a charter; (B) shall ensure that each such school complies with applicable laws and the provisions of the charter granted to such school; and (C) shall monitor the progress of each such school in meeting student academic achievement expectations specified in the charter granted to such school. (2) Production of books and records.--An eligible chartering authority may require a public charter school to which the eligible chartering authority has granted a charter to produce any book, record, paper, or document, if the eligible chartering authority determines that such production is necessary for the eligible chartering authority to carry out its functions under this subtitle.

(b) Fees.-- (1) Application fee.--An eligible chartering authority may charge an eligible applicant a fee, not to exceed $150, for processing a petition to establish a public charter school. (2) Administration fee.--In the case of an eligible chartering authority that has granted a charter to a public charter school, the eligible chartering authority may charge the school a fee, not to exceed one-half of one percent of the annual budget of the school, to cover the cost of undertaking the ongoing administrative responsibilities of the eligible chartering authority with respect to the school that are described in this subtitle. The school shall pay the fee to the eligible chartering authority not later than November 15 of each year.

(c) Immunity From Civil Liability.-- (1) In general.--An eligible chartering authority, the Board of Trustees of such an eligible chartering authority, and a director, officer, employee, or volunteer of such an eligible chartering authority, shall be immune from civil liability, both personally and professionally, for any act or omission within the scope of their official duties unless the act or omission-- (A) constitutes gross negligence; (B) constitutes an intentional tort; or (C) is criminal in nature. (2) Common law immunity preserved.--Paragraph (1) shall not be construed to abrogate any immunity under common law of a person described in such paragraph.

(d) Annual Report.--On or before July 30 of each year, each eligible chartering authority that issues a charter under this subtitle shall submit a report to the Mayor, the District of Columbia Council, the Board of Education, the Secretary of Education, the appropriate congressional committees, and the Consensus Commission that includes the following information: (1) A list of the members of the eligible chartering authority and the addresses of such members. (2) A list of the dates and places of each meeting of the eligible chartering authority during the year preceding the report.

(3) The number of petitions received by the eligible chartering authority for the conversion of a District of Columbia public school or a private or independent school to a public charter school, and for the creation of a new school as a public charter school. (4) The number of petitions described in paragraph (3) that were approved and the number that were denied, as well as a summary of the reasons for which such petitions were denied. (5) A description of any new charters issued by the eligible chartering authority during the year preceding the report. (6) A description of any charters renewed by the eligible chartering authority during the year preceding the report. (7) A description of any charters revoked by the eligible chartering authority during the year preceding the report. (8) A description of any charters refused renewal by the eligible chartering authority during the year preceding the report. (9) Any recommendations the eligible chartering authority has concerning ways to improve the administration of public charter schools.

(a) Term.--A charter granted to a public charter school shall remain in force for a 5-year period, but may be renewed for an unlimited number of times, each time for a 5-year period. (b) Application for Charter Renewal.--In the case of a public charter school that desires to renew its charter, the Board of Trustees of the school shall file an application to renew the charter with the eligible chartering authority that granted the charter not later than 120 days nor earlier than 365 days before the expiration of the charter. The application shall contain the following: (1) A report on the progress of the public charter school in achieving the goals, student academic achievement expectations, and other terms of the approved charter. (2) All audited financial statements for the public charter school for the preceding 4 years.

(c) Approval of Charter Renewal Application.--The eligible chartering authority that granted a charter shall approve an application to renew the charter that is filed in accordance with subsection (b), except that the eligible chartering authority shall not approve such application if the eligible chartering authority determines that-- (1) the school committed a material violation of applicable laws or a material violation of the conditions, terms, standards, or procedures set forth in its charter, including violations relating to the education of children with disabilities; or (2) the school failed to meet the goals and student academic achievement expectations set forth in its charter.

(d) Procedures for Consideration of Charter Renewal.-- (1) Notice of right to hearing.--An eligible chartering authority that has received an application to renew a charter that is filed by a Board of Trustees in accordance with subsection (b) shall provide to the Board of Trustees written notice of the right to an informal hearing on the application. The eligible chartering authority shall provide the notice not later

than 15 days after the date on which the eligible chartering authority received the application. (2) Request for hearing.--Not later than 15 days after the date on which a Board of Trustees receives a notice under paragraph (1), the Board of Trustees may request, in writing, an informal hearing on the application before the eligible chartering authority. (3) Date and time of hearing.-- (A) Notice.--Upon receiving a timely written request for a hearing under paragraph (2), an eligible chartering authority shall set a date and time for the hearing and shall provide reasonable notice of the date and time, as well as the procedures to be followed at the hearing, to the Board of Trustees. (B) Deadline.--An informal hearing under this subsection shall take place not later than 30 days after an eligible chartering authority receives a timely written request for the hearing under paragraph (2). (4) Final decision.-- (A) Deadline.--An eligible chartering authority shall render a final decision, in writing, on an application to renew a charter-- (i) not later than 30 days after the date on which the eligible chartering authority provided the written notice of the right to a hearing, in the case of an application with respect to which such a hearing is not held; and (ii) not later than 30 days after the date on which the hearing is concluded, in the case of an application with respect to which a hearing is held. (B) Reasons for nonrenewal.--An eligible chartering authority that denies an application to renew a charter shall state in its decision the reasons for denial. (5) Alternatives upon nonrenewal.--If an eligible chartering authority denies an application to renew a charter granted to a public charter school, the Board of Education may-- (A) manage the school directly until alternative arrangements can be made for students at the school; or (B) place the school in a probationary status that requires the school to take remedial actions, to be determined by the Board of Education, that directly relate to the grounds for the denial. (6) Judicial review.-- (A) Availability of review.--A decision by an eligible chartering authority to deny an application to renew a charter shall be subject to judicial review by an appropriate court of the District of Columbia. (B) Standard of review.--A decision by an eligible chartering authority to deny an application to renew a charter shall be upheld unless the decision is arbitrary and capricious or clearly erroneous.

(a) Charter or Law Violations.--An eligible chartering authority that has granted a charter to a public charter school may revoke the charter if the eligible chartering authority deter

mines that the school has committed a violation of applicable laws or a material violation of the conditions, terms, standards, or procedures set forth in the charter, including violations relating to the education of children with disabilities.

(b) Fiscal Mismanagement.--An eligible chartering authority that has granted a charter to a public charter school shall revoke the charter if the eligible chartering authority determines that the school-- (1) has engaged in a pattern of nonadherence to generally accepted accounting principles; (2) has engaged in a pattern of fiscal mismanagement; or (3) is no longer economically viable.

(c) Procedures for Consideration of Revocation.-- (1) Notice of right to hearing.--An eligible chartering authority that is proposing to revoke a charter granted to a public charter school shall provide to the Board of Trustees of the school a written notice stating the reasons for the proposed revocation. The notice shall inform the Board of Trustees of the right of the Board of Trustees to an informal hearing on the proposed revocation. (2) Request for hearing.--Not later than 15 days after the date on which a Board of Trustees receives a notice under paragraph (1), the Board of Trustees may request, in writing, an informal hearing on the proposed revocation before the eligible chartering authority. (3) Date and time of hearing.-- (A) Notice.--Upon receiving a timely written request for a hearing under paragraph (2), an eligible chartering authority shall set a date and time for the hearing and shall provide reasonable notice of the date and time, as well as the procedures to be followed at the hearing, to the Board of Trustees. (B) Deadline.--An informal hearing under this subsection shall take place not later than 30 days after an eligible chartering authority receives a timely written request for the hearing under paragraph (2). (4) Final decision.-- (A) Deadline.--An eligible chartering authority shall render a final decision, in writing, on the revocation of a charter-- (i) not later than 30 days after the date on which the eligible chartering authority provided the written notice of the right to a hearing, in the case of a proposed revocation with respect to which such a hearing is not held; and (ii) not later than 30 days after the date on which the hearing is concluded, in the case of a proposed revocation with respect to which a hearing is held. (B) Reasons for revocation.--An eligible chartering authority that revokes a charter shall state in its decision the reasons for the revocation. (5) Alternatives upon revocation.--If an eligible chartering authority revokes a charter granted to a public charter school, the Board of Education may manage the school directly until alternative arrangements can be made for students at the school.

(6) Judicial review.-- (A) Availability of review.--A decision by an eligible chartering authority to revoke a charter shall be subject to judicial review by an appropriate court of the District of Columbia. (B) Standard of review.--A decision by an eligible chartering authority to revoke a charter shall be upheld unless the decision is arbitrary and capricious or clearly erroneous.

(a) Establishment.-- (1) In general.--There is established within the District of Columbia Government a Public Charter School Board (in this section referred to as the ``Board''). (2) Membership.--The Secretary of Education shall present the Mayor a list of 15 individuals the Secretary determines are qualified to serve on the Board. The Mayor, in consultation with the District of Columbia Council, shall appoint 7 individuals from the list to serve on the Board. The Secretary of Education shall recommend, and the Mayor shall appoint, members to serve on the Board so that a knowledge of each of the following areas is represented on the Board: (A) Research about and experience in student learning, quality teaching, and evaluation of and accountability in successful schools. (B) The operation of a financially sound enterprise, including leadership and management techniques, as well as the budgeting and accounting skills critical to the startup of a successful enterprise. (C) The educational, social, and economic development needs of the District of Columbia. (D) The needs and interests of students and parents in the District of Columbia, as well as methods of involving parents and other members of the community in individual schools. (3) Vacancies.--Any time there is a vacancy in the membership of the Board, the Secretary of Education shall present the Mayor a list of 3 individuals the Secretary determines are qualified to serve on the Board. The Mayor, in consultation with the District of Columbia Council, shall appoint 1 individual from the list to serve on the Board. The Secretary shall recommend and the Mayor shall appoint, such member of the Board taking into consideration the criteria described in paragraph (2). Any member appointed to fill a vacancy occurring prior to the expiration of the term of a predecessor shall be appointed only for the remainder of the term. (4) Time limit for appointments.--If, at any time, the Mayor does not appoint members to the Board sufficient to bring the Board's membership to 7 within 30 days of receiving a recommendation from the Secretary of Education under paragraph (2) or (3), the Secretary shall make such appointments as are necessary to bring the membership of the Board to 7. (5) Terms of members.--

(A) In general.--Members of the Board shall serve for terms of 4 years, except that, of the initial appointments made under paragraph (2), the Mayor shall designate-- (i) 2 members to serve terms of 3 years; (ii) 2 members to serve terms of 2 years; and (iii) 1 member to serve a term of 1 year. (B) Reappointment.--Members of the Board shall be eligible to be reappointed for one 4-year term beyond their initial term of appointment. (6) Independence.--No person employed by the District of Columbia public schools or a public charter school shall be eligible to be a member of the Board or to be employed by the Board.

(b) Operations of the Board.-- (1) Chair.--The members of the Board shall elect from among their membership 1 individual to serve as Chair. Such election shall be held each year after members of the Board have been appointed to fill any vacancies caused by the regular expiration of previous members' terms, or when requested by a majority vote of the members of the Board. (2) Quorum.--A majority of the members of the Board, not including any positions that may be vacant, shall constitute a quorum sufficient for conducting the business of the Board. (3) Meetings.--The Board shall meet at the call of the Chair, subject to the hearing requirements of sections 2203, 2212(d)(3), and 2213(c)(3).

(c) No Compensation for Service.--Members of the Board shall serve without pay, but may receive reimbursement for any reasonable and necessary expenses incurred by reason of service on the Board.

(d) Personnel and Resources.-- (1) In general.--Subject to such rules as may be made by the Board, the Chair shall have the power to appoint, terminate, and fix the pay of an Executive Director and such other personnel of the Board as the Chair considers necessary, but no individual so appointed shall be paid in excess of the rate payable for level EG-16 of the Educational Service of the District of Columbia. (2) Special rule.--The Board is authorized to use the services, personnel, and facilities of the District of Columbia.

(e) Expenses of Board.--Any expenses of the Board shall be paid from such funds as may be available to the Mayor: Provided, That within 45 days of the enactment of this Act the Mayor shall make available not less than $130,000 to the Board. (f) Audit.--The Board shall provide for an audit of the financial statements of the Board by an independent certified public accountant in accordance with Government auditing standards for financial audits issued by the Comptroller General of the United States. (g) Authorization of Appropriations.--For the purpose of carrying out the provisions of this section and conducting the Board's functions required by this subtitle, there are authorized to be appropriated $300,000 for fiscal year 1997 and such sums as may be necessary for each of the 3 succeeding fiscal years.

(a) In General.--The following Federal agencies and federally established entities are encouraged to explore whether it is feasible

for the agency or entity to establish one or more public charter schools: (1) The Library of Congress. (2) The National Aeronautics and Space Administration. (3) The Drug Enforcement Administration. (4) The National Science Foundation. (5) The Department of Justice. (6) The Department of Defense. (7) The Department of Education. (8) The Smithsonian Institution, including the National Zoological Park, the National Museum of American History, the John F. Kennedy Center for the Performing Arts, and the National Gallery of Art.

(b) Report.--Not later than 120 days after date of enactment of this Act, any agency or institution described in subsection (a) that has explored the feasibility of establishing a public charter school shall report its determination on the feasibility to the appropriate congressional committees.

Subtitle C--World Class Schools Task Force, Core Curriculum, Content Standards, Assessments, and Promotion Gates

PART 1--WORLD CLASS SCHOOLS TASK FORCE, CORE CURRICULUM, CONTENT STANDARDS, AND ASSESSMENTS

(a) Grant Authorized.-- (1) In general.--The Superintendent is authorized to award a grant to a World Class Schools Task Force to enable such task force to make the recommendation described in subsection (b). (2) Definition.--For the purpose of this subtitle, the term ``World Class Schools Task Force'' means 1 nonprofit organization located in the District of Columbia that-- (A) has a national reputation for advocating content standards; (B) has a national reputation for advocating a strong liberal arts curriculum; (C) has experience with at least 4 urban school districts for the purpose of establishing content standards; (D) has developed and managed professional development programs in science, mathematics, the humanities and the arts; and (E) is governed by an independent board of directors composed of citizens with a variety of experiences in education and public policy.

(b) Recommendation Required.-- (1) In general.--The World Class Schools Task Force shall recommend to the Superintendent, the Board of Education, and the District of Columbia Goals Panel the following: (A) Content standards in the core academic subjects that are developed by working with the District of Columbia community, which standards shall be developed not later than 12 months after the date of enactment of this Act.

(B) A core curriculum developed by working with the District of Columbia community, which curriculum shall include the teaching of computer skills. (C) Districtwide assessments for measuring student achievement in accordance with content standards developed under subparagraph (A). Such assessments shall be developed at several grade levels, including at a minimum, the grade levels with respect to which the Superintendent establishes promotion gates under section 2321. To the extent feasible, such assessments shall, at a minimum, be designed to provide information that permits comparisons between-- (i) individual District of Columbia public schools and public charter schools; and (ii) individual students attending such schools. (D) Model professional development programs for teachers using the standards and curriculum developed under subparagraphs (A) and (B). (2) Special rule.--The World Class Schools Task Force is encouraged, to the extent practicable, to develop districtwide assessments described in paragraph (1)(C) that permit comparisons among-- (A) individual District of Columbia public schools and public charter schools, and individual students attending such schools; and (B) students of other nations.

(c) Content.--The content standards and assessments recommended under subsection (b) shall be judged by the World Class Schools Task Force to be world class, including having a level of quality and rigor, or being analogous to content standards and assessments of other States or nations (including nations whose students historically score high on international studies of student achievement). (d) Submission to Board of Education for Adoption.--If the content standards, curriculum, assessments, and programs recommended under subsection (b) are approved by the Superintendent, the Superintendent may submit such content standards, curriculum, assessments, and programs to the Board of Education for adoption.

The World Class Schools Task Force shall conduct its duties under this part in consultation with-- (1) the District of Columbia Goals Panel; (2) officials of the District of Columbia public schools who have been identified by the Superintendent as having responsibilities relevant to this part, including the Deputy Superintendent for Curriculum; (3) the District of Columbia community, with particular attention given to educators, and parent and business organizations; and (4) any other persons or groups that the task force deems appropriate.

The World Class Schools Task Force shall ensure public access to its proceedings (other than proceedings, or portions of proceedings, relating to internal personnel and management matters) that

are relevant to its duties under this part and shall make available to the public, at reasonable cost, transcripts of such proceedings.

Upon the request of the World Class Schools Task Force, the head of any department or agency of the Federal Government may detail any of the personnel of such agency to such task force to assist such task force in carrying out such task force's duties under this part.

There are authorized to be appropriated $2,000,000 for fiscal year 1997 to carry out this part. Such funds shall remain available until expended.

PART 2--PROMOTION GATES

(a) Kindergarten Through 4th Grade.--Not later than one year after the date of adoption in accordance with section 2311(d) of the assessments described in section 2311(b)(1)(C), the Superintendent shall establish and implement promotion gates for mathematics, reading, and writing, for not less than one grade level from kindergarten through grade 4, including at least grade 4, and shall establish dates for establishing such other promotion gates for other subject areas. (b) 5th Through 8th Grades.--Not later than one year after the adoption in accordance with section 2311(d) of the assessments described in section 2311(b)(1)(C), the Superintendent shall establish and implement promotion gates with respect to not less than one grade level from grade 5 through grade 8, including at least grade 8. (c) 9th Through 12th Grades.--Not later than one year after the adoption in accordance with section 2311(d) of the assessments described in section 2311(b)(1)(C), the Superintendent shall establish and implement promotion gates with respect to not less than one grade level from grade 9 through grade 12, including at least grade 12.

Subtitle D--Per Capita District of Columbia Public School and Public Charter School Funding

(a) In General.--For fiscal year 1997 and for each subsequent fiscal year, the Mayor shall make annual payments from the general fund of the District of Columbia in accordance with the formula established under subsection (b). (b) Formula.-- (1) In general.--The Mayor and the District of Columbia Council, in consultation with the Board of Education and the Superintendent, shall establish not later than 90 days after enactment of this Act, a formula to determine the amount of-- (A) the annual payment to the Board of Education for the operating expenses of the District of Columbia public schools, which for purposes of this paragraph includes the

operating expenses of the Board of Education and the Office of the Superintendent; and (B) the annual payment to each public charter school for the operating expenses of each public charter school. (2) Formula calculation.--Except as provided in paragraph (3), the amount of the annual payment under paragraph (1) shall be calculated by multiplying a uniform dollar amount used in the formula established under such paragraph by-- (A) the number of students calculated under section 2402 that are enrolled at District of Columbia public schools, in the case of the payment under paragraph (1)(A); or (B) the number of students calculated under section 2402 that are enrolled at each public charter school, in the case of a payment under paragraph (1)(B). (3) Exceptions.-- (A) Formula.--Notwithstanding paragraph (2), the Mayor and the District of Columbia Council, in consultation with the Board of Education and the Superintendent, may adjust the formula to increase or decrease the amount of the annual payment to the District of Columbia public schools or each public charter school based on a calculation of-- (i) the number of students served by such schools in certain grade levels; and (ii) the cost of educating students at such certain grade levels. (B) Payment.--Notwithstanding paragraph (2), the Mayor and the District of Columbia Council, in consultation with the Board of Education and the Superintendent, may adjust the amount of the annual payment under paragraph (1) to increase the amount of such payment if a District of Columbia public school or a public charter school serves a high number of students-- (i) with special needs; or (ii) who do not meet minimum literacy standards.

(a) School Reporting Requirement.-- (1) In general.--Not later than September 15, 1996, and not later than September 15 of each year thereafter, each District of Columbia public school and public charter school shall submit a report to the Mayor and the Board of Education containing the information described in subsection (b) that is applicable to such school. (2) Special rule.--Not later than April 1, 1997, and not later than April 1 of each year thereafter, each public charter school shall submit a report in the same form and manner as described in paragraph (1) to ensure accurate payment under section 2403(a)(2)(B)(ii).

(b) Calculation of Number of Students.--Not later than 30 days after the date of the enactment of this Act, and not later than October 15 of each year thereafter, the Board of Education shall calculate the following: (1) The number of students, including nonresident students and students with special needs, enrolled in each grade from kindergarten through grade 12 of the District of Columbia

public schools and in public charter schools, and the number of students whose tuition for enrollment in other schools is paid for with funds available to the District of Columbia public schools. (2) The amount of fees and tuition assessed and collected from the nonresident students described in paragraph (1). (3) The number of students, including nonresident students, enrolled in preschool and prekindergarten in the District of Columbia public schools and in public charter schools. (4) The amount of fees and tuition assessed and collected from the nonresident students described in paragraph (3). (5) The number of full time equivalent adult students enrolled in adult, community, continuing, and vocational education programs in the District of Columbia public schools and in public charter schools. (6) The amount of fees and tuition assessed and collected from resident and nonresident adult students described in paragraph (5). (7) The number of students, including nonresident students, enrolled in nongrade level programs in District of Columbia public schools and in public charter schools. (8) The amount of fees and tuition assessed and collected from nonresident students described in paragraph (7).

(c) Annual Reports.--Not later than 30 days after the date of the enactment of this Act, and not later than October 15 of each year thereafter, the Board of Education shall prepare and submit to the Authority, the Mayor, the District of Columbia Council, the Consensus Commission, the Comptroller General of the United States, and the appropriate congressional committees a report containing a summary of the most recent calculations made under subsection (b). (d) Audit of Initial Calculations.-- (1) In general.--The Board of Education shall arrange with the Authority to provide for the conduct of an independent audit of the initial calculations described in subsection (b). (2) Conduct of audit.--In conducting the audit, the independent auditor-- (A) shall provide an opinion as to the accuracy of the information contained in the report described in subsection (c); and (B) shall identify any material weaknesses in the systems, procedures, or methodology used by the Board of Education-- (i) in determining the number of students, including nonresident students, enrolled in the District of Columbia public schools and in public charter schools, and the number of students whose tuition for enrollment in other school systems is paid for by funds available to the District of Columbia public schools; and (ii) in assessing and collecting fees and tuition from nonresident students. (3) Submission of audit.--Not later than 45 days, or as soon thereafter as is practicable, after the date on which the Authority receives the initial annual report from the Board of Education under subsection (c), the Authority shall submit to the Board of Education, the Mayor, the District of Columbia

Council, and the appropriate congressional committees, the audit conducted under this subsection. (4) Cost of the audit.--The Board of Education shall reimburse the Authority for the cost of the independent audit, solely from amounts appropriated to the Board of Education for staff, stipends, and other-than-personal-services of the Board of Education by an Act making appropriations for the District of Columbia.

(a) In General.-- (1) Escrow for public charter schools.--Except as provided in subsection (b), for any fiscal year, not later than 10 days after the date of enactment of an Act making appropriations for the District of Columbia for such fiscal year, the Mayor shall place in escrow an amount equal to the aggregate of the amounts determined under section 2401(b)(1)(B) for use only by District of Columbia public charter schools. (2) Transfer of escrow funds.-- (A) Initial payment.--Not later than October 15, 1996, and not later than October 15 of each year thereafter, the Mayor shall transfer, by electronic funds transfer, an amount equal to 75 percent of the amount of the annual payment for each public charter school determined by using the formula established pursuant to section 2401(b) to a bank designated by such school. (B) Final payment.-- (i) Except as provided in clause (ii), not later than May 1, 1997, and not later than May 1 of each year thereafter, the Mayor shall transfer the remainder of the annual payment for a public charter school in the same manner as the initial payment was made under subparagraph (A). (ii) Not later than March 15, 1997, and not later than March 15 of each year thereafter, if the enrollment number of a public charter school has changed from the number reported to the Mayor and the Board of Education, as required under section 2402(a), the Mayor shall increase the payment in an amount equal to 50 percent of the amount provided for each student who has enrolled in such school in excess of such enrollment number, or shall reduce the payment in an amount equal to 50 percent of the amount provided for each student who has withdrawn or dropped out of such school below such enrollment number. (C) Pro rata reduction or increase in payments.-- (i) Pro rata reduction.--If the funds made available to the District of Columbia Government for the District of Columbia public school system and each public charter school for any fiscal year are insufficient to pay the full amount that such system and each public charter school is eligible to receive under this subtitle for such year, the Mayor shall ratably reduce such amounts for such year on the basis of the formula described in section 2401(b). (ii) Increase.--If additional funds become available for making payments under this subtitle for such

fiscal year, amounts that were reduced under subparagraph (A) shall be increased on the same basis as such amounts were reduced. (D) Unexpended funds.--Any funds that remain in the escrow account for public charter schools on September 30 of a fiscal year shall revert to the general fund of the District of Columbia.

(b) Exception for New Schools.-- (1) Authorization.--There are authorized to be appropriated $200,000 for each fiscal year to carry out this subsection. (2) Disbursement to mayor.--The Secretary of the Treasury shall make available and disburse to the Mayor, not later than August 1 of each of the fiscal years 1996 through 2000, such funds as have been appropriated under paragraph (1). (3) Escrow.--The Mayor shall place in escrow, for use by public charter schools, any sum disbursed under paragraph (2) and not paid under paragraph (4). (4) Payments to schools.--The Mayor shall pay to public charter schools described in paragraph (5), in accordance with this subsection, any sum disbursed under paragraph (2). (5) Schools described.--The schools referred to in paragraph (4) are public charter schools that-- (A) did not operate as public charter schools during any portion of the fiscal year preceding the fiscal year for which funds are authorized to be appropriated under paragraph (1); and (B) operated as public charter schools during the fiscal year for which funds are authorized to be appropriated under paragraph (1). (6) Formula.-- (A) 1996.--The amount of the payment to a public charter school described in paragraph (5) that begins operation in fiscal year 1996 shall be calculated by multiplying $6,300 by \1/12\ of the total anticipated enrollment as set forth in the petition to establish the public charter school; and (B) 1997 through 2000.--The amount of the payment to a public charter school described in paragraph (5) that begins operation in any of fiscal years 1997 through 2000 shall be calculated by multiplying the uniform dollar amount used in the formula established under section 2401(b) by \1/12\ of the total anticipated enrollment as set forth in the petition to establish the public charter school. (7) Payment to schools.-- (A) Transfer.--On September 1 of each of the years 1996 through 2000, the Mayor shall transfer, by electronic funds transfer, the amount determined under paragraph (6) for each public charter school from the escrow account established under subsection (a) to a bank designated by each such school. (B) Pro rata and remaining funds.--Subparagraphs (C) and (D) of subsection (a)(2) shall apply to payments made under this subsection, except that for purposes of this subparagraph references to District of Columbia public schools in such subparagraphs (C) and (D) shall be read to refer to public charter schools.

Subtitle E--School Facilities Repair and Improvement

For purposes of this subtitle-- (1) the term ``facilities'' means buildings, structures, and real property of the District of Columbia public schools, except that such term does not include any administrative office building that is not located in a building containing classrooms; and (2) the term ``repair and improvement'' includes administration, construction, and renovation.

PART 1--SCHOOL FACILITIES

(a) In General.--Not later than 90 days after the date of enactment of this Act the Administrator of the General Services Administration shall enter into a Memorandum of Agreement or Understanding (referred to in this subtitle as the ``Agreement'') with the Superintendent regarding the terms under which the Administrator will provide technical assistance and related services with respect to District of Columbia public schools facilities management in accordance with this section. (b) Technical Assistance and Related Services.--The technical assistance and related services described in subsection (a) shall include-- (1) the Administrator consulting with and advising District of Columbia public school personnel responsible for public schools facilities management, including repair and improvement with respect to facilities management of such schools; (2) the Administrator assisting the Superintendent in developing a systemic and comprehensive facilities revitalization program, for the repair and improvement of District of Columbia public school facilities, which program shall-- (A) include a list of facilities to be repaired and improved in a recommended order of priority; (B) provide the repair and improvement required to support modern technology; and (C) take into account the Preliminary Facilities Master Plan 2005 (prepared by the Superintendent's Task Force on Education Infrastructure for the 21st Century); (3) the method by which the Superintendent will accept donations of private goods and services for use by the District of Columbia public schools without regard to any law or regulation of the District of Columbia; (4) the Administrator recommending specific repair and improvement projects in District of Columbia public school facilities to the Superintendent that are appropriate for completion by members and units of the National Guard and the Reserves in accordance with the program developed under paragraph (2); (5) upon the request of the Superintendent, the Administrator assisting the appropriate District of Columbia public school officials in the preparation of an action plan for the performance of any repair and improvement recommended in

the program developed under paragraph (2), which action plan shall detail the technical assistance and related services the Administrator proposes to provide in the accomplishment of the repair and improvement; (6) upon the request of the Superintendent, and if consistent with the efficient use of resources as determined by the Administrator, the coordination of the accomplishment of any repair and improvement in accordance with the action plan prepared under paragraph (5), except that in carrying out this paragraph, the Administrator shall not be subject to the requirements of title III of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 471 et seq., and 41 U.S.C. 251 et seq.), the Office of Federal Procurement Policy Act (41 U.S.C. 401 et seq.), nor shall such action plan be subject to review under the bid protest procedures described in sections 3551 through 3556 of title 31, United States Code, or the Contract Disputes Act of 1978 (41 U.S.C. 601 et seq.); (7) providing access for the Administrator to all District of Columbia public school facilities as well as permitting the Administrator to request and obtain any record or document regarding such facilities as the Administrator determines necessary, except that any such record or document shall not become a record (as defined in section 552a of title 5, United States Code) of the General Services Administration; and (8) the Administrator making recommendations regarding how District of Columbia public school facilities may be used by the District of Columbia community for multiple purposes.

(c) Agreement Provisions.--The Agreement shall include-- (1) the procedures by which the Superintendent and Administrator will consult with respect to carrying out this section, including reasonable time frames for such consultation; (2) the scope of the technical assistance and related services to be provided by the General Services Administration in accordance with this section; (3) assurances by the Administrator and the Superintendent to cooperate with each other in any way necessary to ensure implementation of the Agreement, including assurances that funds available to the District of Columbia shall be used to pay the obligations of the District of Columbia public school system that are incurred as a result of actions taken under, or in furtherance of, the Agreement, in addition to funds available to the Administrator for purposes of this section; and (4) the duration of the Agreement, except that in no event shall the Agreement remain in effect later than the day that is 24 months after the date that the Agreement is signed, or the day that the agency designated pursuant to section 2552(a)(2) assumes responsibility for the District of Columbia public school facilities, whichever day is earlier.

(d) Limitation on Administrator's Liability.--No claim, suit, or action may be brought against the Administrator in connection with the discharge of the Administrator's responsibilities under this subtitle. (e) Special Rule.--Notwithstanding any other provision of law, the Administrator is authorized to accept and use a conditioned gift made for the express purpose of repairing or improving a District of Columbia public school, except that the Administrator shall not be required to carry out any repair or improvement

under this section unless the Administrator accepts a donation of private goods or services sufficient to cover the costs of such repair or improvement. (f) Effective Date.--This subtitle shall cease to be effective on the earlier day specified in subsection (c)(4).

(a) Program.--Not later than 12 months after the date of enactment of this Act, the Mayor and the District of Columbia Council in consultation with the Administrator, the Authority, the Board of Education, and the Superintendent, shall-- (1) design and implement a comprehensive long-term program for the repair and improvement, and maintenance and management, of the District of Columbia public school facilities, which program shall incorporate the work completed in accordance with the program described in section 2551(b)(2); and (2) designate a new or existing agency or authority within the District of Columbia Government to administer such program.

(b) Proceeds.--Such program shall include-- (1) identifying short-term funding for capital and maintenance of facilities, which may include retaining proceeds from the sale or lease of a District of Columbia public school facility; and (2) identifying and designating long-term funding for capital and maintenance of facilities.

(c) Implementation.--Upon implementation of such program, the agency or authority created or designated pursuant to subsection (a)(2) shall assume authority and responsibility for the repair and improvement, and maintenance and management, of District of Columbia public schools.

PART 2--WAIVERS

(a) In General.-- (1) Requirements waived.--Subject to subsection (b), all District of Columbia fees and all requirements contained in the document entitled ``District of Columbia Public Schools Standard Contract Provisions'' (as such document was in effect on November 2, 1995 and including any revisions or modifications to such document) published by the District of Columbia public schools for use with construction or maintenance projects, are waived, for purposes of repair and improvement of District of Columbia public schools facilities for a period beginning on the date of enactment of this Act and ending 24 months after such date. (2) Donations.--Any individual may volunteer his or her services or may donate materials to a District of Columbia public school facility for the repair and improvement of such facility provided that the provision of voluntary services meets the requirements of 29 U.S.C. 203(e)(4).

(b) Limitation.--A waiver under subsection (a) shall not apply to requirements under 40 U.S.C. 276a-276a-7.

PART 3--GIFTS, DONATIONS, BEQUESTS, AND DEVISES

(a) In General.--A District of Columbia public school or a public charter school may accept directly from any person a gift, donation, bequest, or devise of any property, real or personal, without regard to any law or regulation of the District of Columbia. (b) Tax Laws.--For the purposes of the income tax, gift tax, and estate tax laws of the Federal Government, any money or other property given, donated, bequeathed, or devised to a District of Columbia public school or a public charter school, shall be deemed to have been given, donated, bequeathed, or devised to or for the use of the District of Columbia.

Subtitle F--Partnerships With Business

The purpose of this subtitle is-- (1) to leverage private sector funds utilizing initial Federal investments in order to provide students and teachers within the District of Columbia public schools and public charter schools with access to state-of-the-art educational technology; (2) to establish a regional job training and employment center; (3) to strengthen workforce preparation initiatives for students within the District of Columbia public schools and public charter schools; (4) to coordinate private sector investments in carrying out this title; and (5) to assist the Superintendent with the development of individual career paths in accordance with the long-term reform plan.

COLUMBIA PUBLIC SCHOOLS.

The Superintendent is authorized to provide a grant to a private, nonprofit corporation that meets the eligibility criteria under section 2603 for the purposes of carrying out the duties under sections 2604 and 2607.

CORPORATION.

A private, nonprofit corporation shall be eligible to receive a grant under section 2602 if the corporation is a national business organization incorporated in the District of Columbia, that-- (1) has a board of directors which includes members who are also chief executive officers of technology-related corporations involved in education and workforce development issues; (2) has extensive practical experience with initiatives that link business resources and expertise with education and training systems; (3) has experience in working with State and local educational agencies throughout the United States with respect to the integration of academic studies with workforce preparation programs; and

(4) has a nationwide structure through which additional resources can be leveraged and innovative practices disseminated.

(a) District Education and Learning Technologies Advancement Council.-- (1) Establishment--The private, nonprofit corporation shall establish a council to be known as the ``District Education and Learning Technologies Advancement Council'' (in this subtitle referred to as the ``council''). (2) Membership.-- (A) In general.--The private, nonprofit corporation shall appoint members to the council. An individual shall be appointed as a member to the council on the basis of the commitment of the individual, or the entity which the individual is representing, to providing time, energy, and resources to the council. (B) Compensation.--Members of the council shall serve without compensation. (3) Duties.--The council-- (A) shall advise the private, nonprofit corporation with respect to the duties of the corporation under subsections (b) through (d) of this section; and (B) shall assist the corporation in leveraging private sector resources for the purpose of carrying out such duties.

(b) Access to State-of-the-Art Educational Technology.-- (1) In general--The private, nonprofit corporation, in conjunction with the Superintendent, students, parents, and teachers, shall establish and implement strategies to ensure access to state-of-the-art educational technology within the District of Columbia public schools and public charter schools. (2) Electronic data transfer system.--The private, nonprofit corporation shall assist the Superintendent in acquiring the necessary equipment, including computer hardware and software, to establish an electronic data transfer system. The private, nonprofit corporation shall also assist in arranging for training of District of Columbia public school employees in using such equipment. (3) Technology assessment.-- (A) In general.--In establishing and implementing the strategies under paragraph (1), the private, nonprofit corporation, not later than September 1, 1996, shall provide for an assessment of the availability, on the date of enactment of this Act, of state-of-the-art educational technology within the District of Columbia public schools and public charter schools. (B) Conduct of assessment.--In providing for the assessment under subparagraph (A), the private, nonprofit corporation-- (i) shall provide for onsite inspections of the state-of-the-art educational technology within a minimum sampling of District of Columbia public schools and public charter schools; and (ii) shall ensure proper input from students, parents, teachers, and other school officials through the use of focus groups and other appropriate mechanisms.

(C) Results of assessment.--The private, nonprofit corporation shall ensure that the assessment carried out under this paragraph provides, at a minimum, necessary information on state-of-the-art educational technology within the District of Columbia public schools and public charter schools, including-- (i) the extent to which typical District of Columbia public schools have access to such state- of-the-art educational technology and training for such technology; (ii) how such schools are using such technology; (iii) the need for additional technology and the need for infrastructure for the implementation of such additional technology; (iv) the need for computer hardware, software, training, and funding for such additional technology or infrastructure; and (v) the potential for computer linkages among District of Columbia public schools and public charter schools. (4) Short-term technology plan.-- (A) In general.--Based upon the results of the technology assessment under paragraph (3), the private, nonprofit corporation shall develop a 3-year plan that includes goals, priorities, and strategies for obtaining the resources necessary to implement strategies to ensure access to state-of-the-art educational technology within the District of Columbia public schools and public charter schools. (B) Implementation.--The private, nonprofit corporation, in conjunction with schools, students, parents, and teachers, shall implement the plan developed under subparagraph (A). (5) Long-term technology plan.--Prior to the completion of the implementation of the short-term technology plan under paragraph (4), the private, nonprofit corporation shall develop a plan under which the corporation will continue to coordinate the donation of private sector resources for maintaining the continuous improvement and upgrading of state-of-the-art educational technology within the District of Columbia public schools and public charter schools.

(c) District Employment and Learning Center.-- (1) Establishment.--The private, nonprofit corporation shall establish a center to be known as the ``District Employment and Learning Center'' (in this subtitle referred to as the ``center''), which shall serve as a regional institute providing job training and employment assistance. (2) Duties.-- (A) Job training and employment assistance program.--The center shall establish a program to provide job training and employment assistance in the District of Columbia and shall coordinate with career preparation programs in existence on the date of enactment of this Act, such as vocational education, school-to-work, and career academies in the District of Columbia public schools. (B) Conduct of program.--In carrying out the program established under subparagraph (A), the center-- (i) shall provide job training and employment assistance to youths who have attained the age of

18 but have not attained the age of 26, who are residents of the District of Columbia, and who are in need of such job training and employment assistance for an appropriate period not to exceed 2 years; (ii) shall work to establish partnerships and enter into agreements with appropriate agencies of the District of Columbia Government to serve individuals participating in appropriate Federal programs, including programs under the Job Training Partnership Act (29 U.S.C. 1501 et seq.), the Job Opportunities and Basic Skills Training Program under part F of title IV of the Social Security Act (42 U.S.C. 681 et seq.), the Carl D. Perkins Vocational and Applied Technology Education Act (20 U.S.C. 2301 et seq.), and the School-to-Work Opportunities Act of 1994 (20 U.S.C. 6101 et seq.); (iii) shall conduct such job training, as appropriate, through a consortium of colleges, universities, community colleges, businesses, and other appropriate providers, in the District of Columbia metropolitan area; (iv) shall design modular training programs that allow students to enter and leave the training curricula depending on their opportunities for job assignments with employers; and (v) shall utilize resources from businesses to enhance work-based learning opportunities and facilitate access by students to work-based learning and work experience through temporary work assignments with employers in the District of Columbia metropolitan area. (C) Compensation.--The center may provide compensation to youths participating in the program under this paragraph for part-time work assigned in conjunction with training. Such compensation may include need-based payments and reimbursement of expenses.

(d) Workforce Preparation Initiatives.-- (1) In general.--The private, nonprofit corporation shall establish initiatives with the District of Columbia public schools, and public charter schools, appropriate governmental agencies, and businesses and other private entities, to facilitate the integration of rigorous academic studies with workforce preparation programs in District of Columbia public schools and public charter schools. (2) Conduct of initiatives.--In carrying out the initiatives under paragraph (1), the private, nonprofit corporation shall, at a minimum, actively develop, expand, and promote the following programs: (A) Career academy programs in secondary schools, as such programs are established in certain District of Columbia public schools, which provide a school-within- a-school concept, focusing on career preparation and the integration of the academy programs with vocational and technical curriculum. (B) Programs carried out in the District of Columbia that are funded under the School-to-Work Opportunities Act of 1994 (20 U.S.C. 6101 et seq.).

The private, nonprofit corporation, to the extent practicable, shall provide matching funds, or in-kind contributions, or a combination thereof, for the purpose of carrying out the duties of the corporation under section 2604, as follows: (1) For fiscal year 1997, the nonprofit corporation shall provide matching funds or in-kind contributions of $1 for every $1 of Federal funds provided under this subtitle for such year for activities under section 2604. (2) For fiscal year 1998, the nonprofit corporation shall provide matching funds or in-kind contributions of $3 for every $1 of Federal funds provided under this subtitle for such year for activities under section 2604. (3) For fiscal year 1999, the nonprofit corporation shall provide matching funds or in-kind contributions of $5 for every $1 of Federal funds provided under this subtitle for such year for activities under section 2604.

The private, nonprofit corporation shall prepare and submit to the appropriate congressional committees on a quarterly basis, or, with respect to fiscal year 1997, on a semiannual basis, a report which shall contain-- (1) the activities the corporation has carried out, including the duties of the corporation described in section 2604, for the 3-month period ending on the date of the submission of the report, or, with respect to fiscal year 1997, the 6-month period ending on the date of the submission of the report; (2) an assessment of the use of funds or other resources donated to the corporation; (3) the results of the assessment carried out under section 2604(b)(3); and (4) a description of the goals and priorities of the corporation for the 3-month period beginning on the date of the submission of the report, or, with respect to fiscal year 1997, the 6-month period beginning on the date of the submission of the report.

(a) In General.--The nonprofit corporation shall establish a program, to be known as the ``Jobs for D.C. Graduates Program'', to assist District of Columbia public schools and public charter schools in organizing and implementing a school-to-work transition system, which system shall give priority to providing assistance to at-risk youths and disadvantaged youths. (b) Conduct of Program.--In carrying out the program established under subsection (a), the nonprofit corporation, consistent with the policies of the nationally recognized Jobs for America's Graduates, Inc., shall-- (1) establish performance standards for such program; (2) provide ongoing enhancement and improvements in such program; (3) provide research and reports on the results of such program; and (4) provide preservice and inservice training.

(a) Authorization.--

(1) Delta council; access to state-of-the-art educational technology; and workforce preparation initiatives.--There are authorized to be appropriated to carry out subsections (a), (b), and (d) of section 2604, $1,000,000 for each of the fiscal years 1997, 1998, and 1999. (2) Deal center.--There are authorized to be appropriated to carry out section 2604(c), $2,000,000 for each of the fiscal years 1997, 1998, and 1999. (3) Jobs for d.c. graduates program.--There are authorized to be appropriated to carry out section 2607-- (A) $2,000,000 for fiscal year 1997; and (B) $3,000,000 for each of the fiscal years 1998 through 2001.

(b) Availability.--Amounts authorized to be appropriated under subsection (a) are authorized to remain available until expended.

TERMINATION OF FEDERAL SUPPORT; SENSE OF THE CONGRESS RELATING TO CONTINUATION OF ACTIVITIES.

(a) Termination of Federal Support.--The authority under this subtitle to provide assistance to the private, nonprofit corporation or any other entity established pursuant to this subtitle shall terminate on October 1, 1999. (b) Sense of the Congress Relating to Continuation of Activities.-- It is the sense of the Congress that-- (1) the activities of the private, nonprofit corporation under section 2604 should continue to be carried out after October 1, 1999, with resources made available from the private sector; and (2) the corporation should provide oversight and coordination for such activities after such date.

Subtitle G--Management and Fiscal Accountability; Preservation of School-Based Resources

(a) Food Services and Security Services.-- Notwithstanding any other law, rule, or regulation, the Board of Education shall enter into a contract for academic year 1995-1996 and each succeeding academic year, for the provision of all food services operations and security services for the District of Columbia public schools, unless the Superintendent determines that it is not feasible and provides the Superintendent's reasons in writing to the Board of Education and the Authority.

(b) Development of New Management and Data Systems.--Notwithstanding any other law, rule, or regulation, the Board of Education shall, in academic year 1995-1996, consult with the Authority on the development of new management and data systems, as well as training of personnel to use and manage the systems in areas of budget, finance, personnel and human resources, management information services, procurement, supply management, and other systems recommended by the Authority. Such plans shall be consistent with, and contemporaneous to, the District of Columbia Government's development and implementation of a replacement for the financial management system for the District of Columbia Government in use on the date of enactment of this Act.

(a) In General.--The budget, financial-accounting, personnel, payroll, procurement, and management information systems of the District of Columbia public schools shall be coordinated and interface with related systems of the District of Columbia Government. (b) Access.--The Board of Education shall provide read-only access to its internal financial management systems and all other data bases to designated staff of the Mayor, the Council, the Authority, and appropriate congressional committees.

(a) In General.--The Board of Education shall develop its fiscal year 1997 gross operating budget and its fiscal year 1997 appropriated funds budget request in accordance with this section.

(b) Fiscal Year 1996 Budget Revision.--Not later than 60 days after enactment of this Act, the Board of Education shall develop, approve, and submit to the Mayor, the District of Columbia Council, the Authority, and appropriate congressional committees, a revised fiscal year 1996 gross operating budget that reflects the amount appropriated in the District of Columbia Appropriations Act, 1996, and which-- (1) is broken out on the basis of appropriated funds and nonappropriated funds, control center, responsibility center, agency reporting code, object class, and object; and (2) indicates by position title, grade, and agency reporting code, all staff allocated to each District of Columbia public school as of October 15, 1995, and indicates on an object class basis all other-than-personal-services financial resources allocated to each school.

(c) Zero-Base Budget.--For fiscal year 1997, the Board of Education shall build its gross operating budget and appropriated funds request from a zero-base, starting from the local school level through the central office level. (d) School-by-School Budgets.--The Board of Education's initial fiscal year 1997 gross operating budget and appropriated funds budget request submitted to the Mayor, the District of Columbia Council, and the Authority shall contain school-by-school budgets and shall also-- (1) be broken out on the basis of appropriated funds and nonappropriated funds, control center, responsibility center, agency reporting code, object class, and object; (2) indicate by position title, grade, and agency reporting code all staff budgeted for each District of Columbia public school, and indicate on an object class basis all other-than- personal-services financial resources allocated to each school; and (3) indicate the amount and reason for all changes made to the initial fiscal year 1997 gross operating budget and appropriated funds request from the revised fiscal year 1996 gross operating budget required by subsection (b).

Section 1120A of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6322) is amended-- (1) in subsection (b)(1), by-- (A) striking ``(A) Except as provided in subparagraph (B), a State'' and inserting ``A State''; and

(B) striking subparagraph (B); and (2) by adding at the end thereof the following new subsection:

``(d) Exclusion of Funds.--For the purpose of complying with subsections (b) and (c), a State or local educational agency may exclude supplemental State or local funds expended in any school attendance area or school for programs that meet the intent and purposes of this part.''.

Part B of title I of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6361 et seq.) is amended-- (a) in section 1204(a) (20 U.S.C. 6364(a)), by inserting ``intensive'' after ``cost of providing''; and (b) in section 1205(4) (20 U.S.C. 6365(4)), by inserting ``, intensive'' after ``high-quality''.

(a) Restrictions on Reductions of School-Based Employees.--To the extent that a reduction in the number of full-time equivalent positions for the District of Columbia public schools is required to remain within the number of full-time equivalent positions established for the public schools in appropriations Acts, no reductions shall be made from the full-time equivalent positions for school-based teachers, principals, counselors, librarians, or other school-based educational positions that were established as of the end of fiscal year 1995, unless the Authority makes a determination based on student enrollment that-- (1) fewer school-based positions are needed to maintain established pupil-to-staff ratios; or (2) reductions in positions for other than school-based employees are not practicable.

(b) Definition.--The term ``school-based educational position'' means a position located at a District of Columbia public school or other position providing direct support to students at such a school, including a position for a clerical, stenographic, or secretarial employee, but not including any part-time educational aide position.

Subtitle H--Establishment and Organization of the Commission on Consensus Reform in the District of Columbia Public Schools

PUBLIC SCHOOLS.

(a) Establishment.-- (1) In general.--There is established within the District of Columbia Government a Commission on Consensus Reform in the District of Columbia Public Schools, consisting of 7 members to be appointed in accordance with paragraph (2). (2) Membership.--The Consensus Commission shall consist of the following members: (A) 1 member to be appointed by the President chosen from a list of 3 proposed members submitted by the Majority Leader of the Senate. (B) 1 member to be appointed by the President chosen from a list of 3 proposed members submitted by the Speaker of the House of Representatives.

(C) 2 members to be appointed by the President, of which 1 shall represent the local business community and 1 of which shall be a teacher in a District of Columbia public school. (D) The President of the District of Columbia Congress of Parents and Teachers. (E) The President of the Board of Education. (F) The Superintendent. (G) The Mayor and District of Columbia Council Chairman shall each name 1 nonvoting ex officio member. (H) The Chief of the National Guard Bureau who shall be an ex officio member. (3) Terms of service.--The members of the Consensus Commission shall serve for a term of 3 years. (4) Vacancies.--Any vacancy in the membership of the Consensus Commission shall be filled by the appointment of a new member in the same manner as provided for the vacated membership. A member appointed under this paragraph shall serve the remaining term of the vacated membership. (5) Qualifications.--Members of the Consensus Commission appointed under subparagraphs (A), (B), and (C) of paragraph (2) shall be residents of the District of Columbia and shall have a knowledge of public education in the District of Columbia. (6) Chair.--The Chair of the Consensus Commission shall be chosen by the Consensus Commission from among its members, except that the President of the Board of Education and the Superintendent shall not be eligible to serve as Chair. (7) No compensation for service.--Members of the Consensus Commission shall serve without pay, but may receive reimbursement for any reasonable and necessary expenses incurred by reason of service on the Consensus Commission.

(b) Executive Director.--The Consensus Commission shall have an Executive Director who shall be appointed by the Chair with the consent of the Consensus Commission. The Executive Director shall be paid at a rate determined by the Consensus Commission, except that such rate may not exceed the highest rate of pay payable for level EG-16 of the Educational Service of the District of Columbia. (c) Staff.--With the approval of the Chair and the Authority, the Executive Director may appoint and fix the pay of additional personnel as the Executive Director considers appropriate, except that no individual appointed by the Executive Director may be paid at a rate greater than the rate of pay for the Executive Director. (d) Special Rule.--The Board of Education, or the Authority, shall reprogram such funds, as the Chair of the Consensus Commission shall in writing request, subject to the approval of the Authority from amounts available to the Board of Education.

(a) Purpose.--The primary purpose of the Consensus Commission is to assist in developing a long-term reform plan that has the support of the District of Columbia community through the participation of representatives of various critical segments of such community in helping to develop and approve the plan.

(b) Findings.--The Congress finds that-- (1) experience has shown that the failure of the District of Columbia educational system has been due more to the failure to implement a plan than the failure to develop a plan; (2) national studies indicate that 50 percent of secondary school graduates lack basic literacy skills, and over 30 percent of the 7th grade students in the District of Columbia public schools drop out of school before graduating; (3) standard student assessments indicate only average performance for grade level and fail to identify individual students who lack basic skills, allowing too many students to graduate lacking these basic skills and diminishing the worth of a diploma; (4) experience has shown that successful schools have good community, parent, and business involvement; (5) experience has shown that reducing dropout rates in the critical middle and secondary school years requires individual student involvement and attention through such activities as arts or athletics; and (6) experience has shown that close coordination between educators and business persons is required to provide noncollege-bound students the skills necessary for employment, and that personal attention is vitally important to assist each student in developing an appropriate career path.

(a) Primary Responsibility.--The Board of Education and the Superintendent shall have primary responsibility for developing and implementing the long-term reform plan for education in the District of Columbia. (b) Duties.--The Consensus Commission shall-- (1) identify any obstacles to implementation of the long- term reform plan and suggest ways to remove such obstacles; (2) assist in developing programs that-- (A) ensure every student in a District of Columbia public school achieves basic literacy skills; (B) ensure every such student possesses the knowledge and skills necessary to think critically and communicate effectively by the completion of grade 8; and (C) lower the dropout rate in the District of Columbia public schools; (3) assist in developing districtwide assessments, including individual assessments, that identify District of Columbia public school students who lack basic literacy skills, with particular attention being given to grade 4 and the middle school years, and establish procedures to ensure that a teacher is made accountable for the performance of every such student in such teacher's class; (4) make recommendations to improve community, parent, and business involvement in District of Columbia public schools and public charter schools; (5) assess opportunities in the District of Columbia to increase individual student involvement and attention through such activities as arts or athletics, and make recommendations on how to increase such involvement; and

(6) assist in the establishment of procedures that ensure every District of Columbia public school student is provided the skills necessary for employment, including the development of individual career paths.

(c) Powers.--The Consensus Commission shall have the following powers: (1) To monitor and comment on the development and implementation of the long-term reform plan. (2) To exercise its authority, as provided in this subtitle, as necessary to facilitate implementation of the long-term reform plan. (3) To review and comment on the budgets of the Board of Education, the District of Columbia public schools and public charter schools. (4) To recommend rules concerning the management and direction of the Board of Education that address obstacles to the development or implementation of the long-term reform plan. (5) To review and comment on the core curriculum for kindergarten through grade 12 developed under subtitle C. (6) To review and comment on a core curriculum for prekindergarten, vocational and technical training, and adult education. (7) To review and comment on all other educational programs carried out by the Board of Education and public charter schools. (8) To review and comment on the districtwide assessments for measuring student achievement in the core curriculum developed under subtitle C. (9) To review and comment on the model professional development programs for teachers using the core curriculum developed under subtitle C.

(d) Limitations.-- (1) In general.--Except as otherwise provided in this subtitle, the Consensus Commission shall have no powers to involve itself in the management or operation of the Board of Education with respect to the implementation of the long-term reform plan.

(a) Community Service Requirement for Suspended Students.-- (1) In general.--Any student suspended from classes at a District of Columbia public school who is required to serve the suspension outside the school shall perform community service for the period of suspension. The community service required by this subsection shall be subject to rules and regulations promulgated by the Mayor. (2) Effective date.--This subsection shall take effect on the first day of the 1996-1997 academic year.

(b) Expiration Date.--This section, and sections 2101(b)(1)(K) and 2851(a)(2)(H), shall cease to be effective on the last day of the 1997- 1998 academic year. (c) Report.--The Consensus Commission shall study the effectiveness of the policies implemented pursuant to this section in improving order and discipline in District of Columbia public schools and report its findings to the appropriate congressional

committees not later than 60 days prior to the last day of the 1997-1998 academic year.

(a) In General.--The Consensus Commission may examine and request the Inspector General of the District of Columbia or the Authority to audit the records of the Board of Education to ensure, monitor, and evaluate the performance of the Board of Education with respect to compliance with the long-term reform plan and such plan's overall educational achievement. The Consensus Commission shall conduct an annual review of the educational performance of the Board of Education with respect to meeting the goals of such plan for such year. The Board of Education shall cooperate and assist in the review or audit as requested by the Consensus Commission. (b) Audit.--The Consensus Commission may examine and request the Inspector General of the District of Columbia or the Authority to audit the records of any public charter school to assure, monitor, and evaluate the performance of the public charter school with respect to the content standards and districtwide assessments described in section 2311(b). The Consensus Commission shall receive a copy of each public charter school's annual report.

The Consensus Commission may investigate any action or activity which may hinder the progress of any part of the long-term reform plan. The Board of Education shall cooperate and assist the Consensus Commission in any investigation. Reports of the findings of any such investigation shall be provided to the Board of Education, the Superintendent, the Mayor, the District of Columbia Council, the Authority, and the appropriate congressional committees.

(a) In General.--The Consensus Commission may at any time submit recommendations to the Board of Education, the Mayor, the District of Columbia Council, the Authority, the Board of Trustees of any public charter school and the Congress with respect to actions the District of Columbia Government or the Federal Government should take to ensure implementation of the long-term reform plan. (b) Authority Actions.--Pursuant to the District of Columbia Financial Responsibility and Management Assistance Act of 1995 or upon the recommendation of the Consensus Commission, the Authority may take whatever actions the Authority deems necessary to ensure the implementation of the long-term reform plan.

Except as otherwise provided in this subtitle, this subtitle shall be effective during the period beginning on the date of enactment of this Act and ending 7 years after such date.

Subtitle I--Parent Attendance at Parent-Teacher Conferences

Notwithstanding any other provision of law, the Mayor is authorized to develop and implement a policy encouraging all resi

dents of the District of Columbia with children attending a District of Columbia public school to attend and participate in at least one parent- teacher conference every 90 days during the academic year. This title may be cited as the ``District of Columbia School Reform Act of 1995''.

(c) For programs, projects or activities in the Department of the Interior and Related Agencies Appropriations Act, 1996, provided as follows, to be effective as if it had been enacted into law as the regular appropriations Act:

AN <<NOTE: Department of the Interior and Related Agencies Appropriations Act, 1996.>> ACT

Making appropriations for the Department of the Interior and related agencies for the fiscal year ending September 30, 1996, and for other purposes.

(a) Intervals Between Standard Surveys for Home Health Agencies.-- Section 1891(c)(2)(A) of the Social Security Act (42 U.S.C. 1395bbb(c)(2)(A)) is amended-- (1) by striking ``15 months'' and inserting ``36 months'', and (2) by amending the second sentence to read as follows: ``The Secretary shall establish a frequency for surveys of home health agencies within this 36-month interval commensurate with the need to assure the delivery of quality home health services.''.

(b) Recognition of Accreditation.--Section 1865 of such Act (42 U.S.C. 1395bb) is amended-- (1) by redesignating subsection (b) as subsection (d), (2) by redesignating the fourth sentence of subsection (a) as subsection (c), and (3) by striking the third sentence of subsection (a) and inserting after and below the second sentence the following new subsection:

``(b)(1) In addition, if the Secretary finds that accreditation of a provider entity (as defined in paragraph (4)) by the American Osteopathic Association or any other national accreditation body demonstrates that all of the applicable conditions or requirements of this title (other than the requirements of section 1834(j) or the conditions and requirements under section 1881(b)) are met or exceeded-- ``(A) in the case of a provider entity not described in paragraph (3)(B), the Secretary shall treat such entity as meeting

those conditions or requirements with respect to which the Secretary made such finding; or ``(B) in the case of a provider entity described in paragraph (3)(B), the Secretary may treat such entity as meeting those conditions or requirements with respect to which the Secretary made such finding.

``(2) In making such a finding, the Secretary shall consider, among other factors with respect to a national accreditation body, its requirements for accreditation, its survey procedures, its ability to provide adequate resources for conducting required surveys and supplying information for use in enforcement activities, its monitoring procedures for provider entities found out of compliance with the conditions or requirements, and its ability to provide the Secretary with necessary data for validation. ``(3)(A) Except as provided in subparagraph (B), not later than 60 days after the date of receipt of a written request for a finding under paragraph (1) (with any documentation necessary to make a determination on the request), the Secretary shall publish a notice identifying the national accreditation body making the request, describing the nature of the request, and providing a period of at least 30 days for the public to comment on the request. The Secretary shall approve or deny a request for such a finding, and shall publish notice of such approval or denial, not later than 210 days after the date of receipt of the request (with such documentation). Such an approval shall be effective with respect to accreditation determinations made on or after such effective date (which may not be later than the date of publication of the approval) as the Secretary specifies in the publication notice.

``(B) The 210-day and 60-day deadlines specified in subparagraph (A) shall not apply in the case of any request for a finding with respect to accreditation of a provider entity to which the conditions and requirements of section 1819 and 1861(j) apply.

``(4) For purposes of this section, the term `provider entity' means a provider of services, supplier, facility, clinic, agency, or laboratory.''. (c) Authority for Validation Surveys.-- (1) In general.--The first sentence of section 1864(c) of such Act (42 U.S.C. 1395aa(c)) is amended by striking ``hospitals'' and all that follows and inserting ``provider entities that, pursuant to subsection (a) or (b)(1) of section 1865, are treated as meeting the conditions or requirements of this title.''. (2) Conforming amendments.--Section 1865 of such Act, as amended by subsection (b), is further amended-- (A) in subsection (d), as redesignated by subsection (b)(1)-- (i) by striking ``a hospital'' and inserting ``a provider entity'', (ii) by striking ``the hospital'' each place it appears and inserting ``the entity'', and (iii) by striking ``the requirements of the numbered paragraphs of section 1861(e)'' and inserting ``the conditions or requirements the entity has been treated as meeting pursuant to subsection (a) or (b)(1)''; and (B) by adding at the end the following new subsection:

``(e) For provisions relating to validation surveys of entities that are treated as meeting applicable conditions or requirements of this title pursuant to subsection (a) or (b)(1), see section 1864(c).''.

(d) Study and Report on Deeming for Nursing Facilities and Renal Dialysis Facilities.-- (1) Study.--The Secretary of Health and Human Services shall provide for-- (A) a study concerning the effectiveness and appropriateness of the current mechanisms for surveying and certifying skilled nursing facilities for compliance with the conditions and requirements of sections 1819 and 1861(j) of the Social Security Act and nursing facilities for compliance with the conditions of section 1919 of such Act, and (B) a study concerning the effectiveness and appropriateness of the current mechanisms for surveying and certifying renal dialysis facilities for compliance with the conditions and requirements of section 1881(b) of the Social Security Act. (2) Report. Not later than July 1, 1997, the Secretary shall transmit to Congress a report on each of the studies provided for under paragraph (1). The report on the study under paragraph (1)(A) shall include (and the report on the study under paragraph (1)(B) may include) a specific framework, where appropriate, for implementing a process under which facilities covered under the respective study may be deemed to meet applicable medicare conditions and requirements if they are accredited by a national accreditation body.

Sec. 517. The Secretary of Health and Human Services shall grant a waiver of the requirements set forth in section 1903(m)(2)(A)(ii) of the Social Security Act to D.C. Chartered Health Plan, Inc. of the District of Columbia: Provided, That such waiver shall be deemed to have been in place for all contract periods from October 1, 1991 through the current contract period or October 1, 1999, whichever shall be later. Sec. 518. Section 119 of Public Law 104-99 <<NOTE: 20 USC 1070a note.>> is hereby repealed.

optional, alternative medicaid payment method

Sec. 519. (a) Election.--A heavily impacted high-DSH State (as defined in subsection (d)) may elect to receive payments for expenditures under title XIX of the Social Security Act for the period beginning October 1, 1995, and ending June 30, 1996 (in this section referred to as the ``9-month period''), for State fiscal year 1996-1997, and (subject to subsection (c)(4)) for State fiscal year 1997-1998 in accordance with the alternative payment method specified in subsection (b) rather than in accordance with section 1903(a) of such Act. (b) Alternative Payment Method.-- (1) In general.--Under the alternative payment method specified in this subsection-- (A) any percentage otherwise specified in section 1903(a) of the Social Security Act for expenditures in the 9-month period or a State fiscal year for which the election is in effect shall be equal to 100 percent minus the non-Federal participation percentage (specified under paragraph (2)) for the State for that period or State fiscal year, and (B) the total payment for the 9-month period or a State fiscal year in which the election is in effect may not exceed the maximum Federal financial participation specified in paragraph (5) for the period or year.

In applying subparagraph (B), there shall not be counted as payments for any period or fiscal year any payment that is attributable to an expenditure which is exempt under subsection (c)(1). In applying such subparagraph to the 9-month period, there shall be counted payments (other than those described in the previous sentence) that are attributable to an expenditure for periods occurring in the 9-month period and before the date of the enactment of this Act. (2) Non-federal participation percentage.--For purposes of paragraph (1), the ``non-Federal participation percentage'' for a State for the 9-month period or State fiscal year is equal to the ratio of-- (A) the State's base State expenditures (as defined in paragraph (3)) plus the applicable percentage (as defined in paragraph (4)) of the difference between the amount of such expenditures and the amount of the State expenditures that would be required for the State to qualify for the maximum Federal financial participation specified in paragraph (5) under title XIX of the Social Security Act if this section did not apply for such period or State fiscal year; to (B) the total expenditures under the State plan of the State under such title for such period or State fiscal year. Such ratio shall be calculated as if total expenditures under the State plan were no greater than necessary for the State to receive the maximum Federal financial participation specified in paragraph (5). (3) Base state expenditures.--For purposes of this subsection, the term ``base State expenditures'' means-- (A) for the 9-month period, $266,250,000, or (B) for State fiscal year 1996-1997, $355,000,000, or (C) for State fiscal year 1997-1998, $355,000,000. (4) Applicable percentage.--For purposes of this subsection, the ``applicable percentage''-- (A) for the 9-month period is 20 percent, (B) for State fiscal year 1996-1997 is 35 percent, and (C) for State fiscal year 1997-1998 is 55 percent. (5) Maximum federal participation.--For purposes of this section, the maximum Federal financial participation specified in this paragraph for a State-- (A) for the 9-month period, is $1,966,500,000 (B) for State fiscal year 1996-1997 is $2,622,000,000, and (C) for State fiscal year 1997-1998 is $2,622,000,000.

(c) Additional Rules.-- (1) Limiting application to expenditures for periods in which election in effect.--This section (and the maximum Federal financial participation specified in subsection (b)(5)) shall not apply to any expenditure that is applicable to a reporting period that is not covered under an election under subsection (a), including any expenditure applicable to any reporting period before October 1, 1995. (2) Election process.--An election of a State under subsection (a) shall be made, by notice from the Governor of the State to the Secretary of Health and Human Services,

not later than 30 days after the date of the enactment of this Act. (3) Limitation.--For any period (on or after the date of an election under this section) in which an election is in effect for a State under this section-- (A) the Federal Government has no obligation to provide payment with respect to items and services provided under title XIX of the Social Security Act in excess of the maximum Federal financial participation specified in subsection (b)(5) and such title shall not be construed as providing for an entitlement, under Federal law in relation to the Federal Government, in an individual or person (including any provider) at the time of provision or receipt of services; and (B) the State shall provide an entitlement to any person to receive any service or other benefit to the extent that such person would, but for this paragraph, be entitled to such service or other benefit under such title. (4) Condition for state fiscal year 1997-1998.--This section shall not apply to State fiscal year 1997-1998 except to the extent provided for in a subsequent appropriation Act.

(d) Definition.--For purposes of this section, the term ``heavily impacted high-DSH State'' means the State of Louisiana. (e) State Fiscal Years Defined.--For purposes of this section-- (1) the term ``State fiscal year 1996-1997'' means the period beginning July 1, 1996, and ending June 30, 1997, and (2) the term ``State fiscal year 1997-1998'' means the period beginning July 1, 1997, and ending June 30, 1998.

Sec. 520. (a) Congress finds that-- (1) the practice of female genital mutilation is carried out by members of certain cultural and religious groups within the United States; and (2) the practice of female genital mutilation often results in the occurrence of physical and psychological health effects that harm the women involved.

(b) The Secretary of Health and Human Services shall do the following: (1) Compile data on the number of females living in the United States who have been subjected to female genital mutilation (whether in the United States or in their countries of origin), including a specification of the number of girls under the age of 18 who have been subjected to such mutilation. (2) Identify communities in the United States that practice female genital mutilation, and design and carry out outreach activities to educate individuals in the communities on the physical and psychological health effects of such practice. Such outreach activities shall be designed and implemented in collaboration with representatives of the ethnic groups practicing such mutilation and with representatives of organizations with expertise in preventing such practice. (3) Develop recommendations for the education of students of schools of medicine and osteopathic medicine regarding female genital mutilation and complications arising from such mutilation. Such recommendations shall be disseminated to such schools.

(c) For purposes of this section the term ``female genital mutilation'' means the removal or infibulation (or both) of the whole or part of the clitoris, the labia minor, or the labia major. (d) The Secretary of Health and Human Services shall commence carrying out this section not later than 90 days after the date of enactment of this Act.

IMPROVEMENT COUNCIL AND OPPORTUNITY-TO-LEARN STANDARDS.

The Goals 2000: Educate America Act (20 U.S.C. 5801 et seq.) is amended-- (1) by repealing part B of title II (20 U.S.C. 5841 et seq.); (2) by redesignating parts C and D of title II (20 U.S.C. 5861 et seq. and 5871 et seq.) as parts B and C, respectively, of title II; and (3) in section 241 (20 U.S.C. 5871)-- (A) in subsection (a), by striking ``(a) National Education Goals Panel.--''; and (B) by striking subsections (b) through (d).

(a) Panel Composition; Opportunity-To-Learn Standards; and Submission of Plan to the Secretary for Approval.-- (1) State improvement plan.--Section 306 of the Goals 2000: Educate America Act (20 U.S.C. 5886) is amended-- (A) by amending subsection (b) to read as follows:

``(b) Plan Development.--A State improvement plan under this title shall be developed by a broad-based State panel in cooperation with the State educational agency and the Governor.''; (B) by striking subsection (d).

(b) Local Panel Composition.--Section 309(a)(3)(A) of such Act (20 U.S.C. 5889(a)(3)(A)) is amended-- (1) in the matter preceding clause (i), by striking ``that-- '' and inserting a semicolon; and (2) by striking clauses (i) and (ii).

(a) Goals 2000: Educate America Act.-- (1) The table of contents for the Goals 2000: Educate America Act is amended, in the items relating to title II-- (A) by striking the items relating to part B; (B) by striking ``Part C'' and inserting ``Part B''; and (C) by striking ``Part D'' and inserting ``Part C''. (2) Section 2 of such Act (20 U.S.C. 5801) is amended-- (A) in paragraph (4)-- (i) in subparagraph (B), by inserting ``and'' after the semicolon; (ii) by striking subparagraph (C); and (iii) by redesignating subparagraph (D) as subparagraph (C); and (B) in paragraph (6)-- (i) by striking subparagraph (C); and (ii) by redesignating subparagraphs (D) through (F) as subparagraphs (C) through (E), respectively. (3) Section 3(a) of such Act (20 U.S.C. 5802) is amended-- (A) by striking paragraph (7); and (B) by redesignating paragraphs (8) through (14) as paragraphs (7) through (13), respectively. (4) Section 201(3) of such Act (20 U.S.C. 5821(3)) is amended by striking ``, voluntary national student performance'' and all that follows through ``such Council'' and inserting ``and voluntary national student performance standards''. (5) Section 202(j) of such Act (20 U.S.C. 5822(j)) is amended by striking ``, student performance, or opportunity-to- learn'' and inserting ``or student performance''. (6) Section 203 of such Act (20 U.S.C. 5823) is amended-- (A) in subsection (a)-- (i) by striking paragraphs (2) and (3); (ii) by redesignating paragraphs (4) through (6) as paragraphs (2) through (4), respectively; and (iii) by amending paragraph (2) (as redesignated by clause (ii)) to read as follows: ``(2) review voluntary national content standards and voluntary national student performance standards;''; and (B) in subsection (b)(1)-- (i) in subparagraph (A), by inserting ``and'' after the semicolon; (ii) in subparagraph (B), by striking ``; and'' and inserting a period; and (iii) by striking subparagraph (C). (7) Section 204(a)(2) of such Act (20 U.S.C. 5824(a)(2)) is amended-- (A) by striking ``voluntary national opportunity-to- learn standards,''; and (B) by striking ``described in section 213(f)''. (8) Section 304(a)(2) of such Act (20 U.S.C. 5884(a)(2)) is amended-- (A) in subparagraph (A), by adding ``and'' after the semicolon; (B) in subparagraph (B), by striking ``; and'' and inserting a period; and (C) by striking subparagraph (C).

(9) Section 306(o) of such Act (20 U.S.C. 5886(o)) is amended by striking ``State opportunity-to-learn standards or strategies,''. (10) Section 308 of such Act (20 U.S.C. 5888) is amended-- (A) in subsection (b)(2)-- (i) in the matter preceding clause (i) of subparagraph (A), by striking ``State opportunity- to-learn standards,''; and (ii) in subparagraph (A), by striking ``including--'' and all that follows through ``part B of title II;'' and inserting ``including through consortia of States;''; and (B) in subsection (c), by striking ``306(b)(1)'' and inserting ``306(b)''. (11) For the purpose of expanding the use and availability of computers and computer technology, section 309(a)(6)(A)(ii) of such Act (20 U.S.C. 5889(a)(6)(A)(ii)) is amended by inserting after ``new public schools'' the following ``and the acquisition of technology and use of technology-enhanced curricula and instruction'' (12) Section 312(b) of such Act (20 U.S.C. 5892(b)) is amended-- (A) by striking paragraph (1); and (B) by redesignating paragraphs (2) and (3) as paragraphs (1) and (2), respectively. (13) Section 314(a)(6)(A) of such Act (20 U.S.C. 5894(a)(6)(A)) is amended by striking ``certified by the National Education Standards and Improvement Council and''. (14) Section 315 of such Act (20 U.S.C. 5895) is amended-- (A) in subsection (b)-- (i) in paragraph (1)(C), by striking ``, including the requirements for timetables for opportunity-to-learn standards,''; (ii) by striking paragraph (2); (iii) by redesignating paragraphs (3) through (5) as paragraphs (2) through (4), respectively; (iv) in paragraph (1)(A), by striking ``paragraph (4) of this subsection'' and inserting ``paragraph (3)''; (v) in paragraph (2) (as redesignated by clause (iii))-- (I) by striking subparagraph (A); (II) by redesignating subparagraphs (B) and (C) as subparagraphs (A) and (B), respectively; and (III) in subparagraph (A) (as redesignated by subclause (II)) by striking ``, voluntary natural student performance standards, and voluntary natural opportunity-to-learn standards developed under part B of title II of this Act'' and inserting ``and voluntary national student performance standards''; (vi) in subparagraph (B) of paragraph (3) (as redesignated by clause (iii)), by striking ``paragraph (5),'' and inserting ``paragraph (4),''; and (vii) in paragraph (4) (as redesignated by clause (ii)), by striking ``paragraph (4)'' each place it appears and inserting ``paragraph (3)'';

(B) in the matter preceding subparagraph (A) of subsection (c)(2)-- (i) by striking ``subsection (b)(4)'' and inserting ``subsection (b)(3)''; and (ii) by striking ``and to provide a framework for the implementation of opportunity-to-learn standards or strategies''; and (C) in subsection (f), by striking ``subsection (b)(4)'' each place it appears and inserting ``subsection (b)(3)''. (15)(A) Section 316 of such Act (20 U.S.C. 5896) is repealed. (B) The table of contents for such Act is amended by striking the item relating to section 316. (16) Section 317 of such Act (20 U.S.C. 5897) is amended-- (A) in subsection (d)(4), by striking ``promote the standards and strategies described in section 306(d),''; and (B) in subsection (e)-- (i) in paragraph (2), by inserting ``and'' after the semicolon; (ii) by striking paragraph (3); and (iii) by redesignating paragraph (4) as paragraph (3). (17) Section 503 of such Act (20 U.S.C. 5933) is amended-- (A) in subsection (b)-- (i) in paragraph (1)-- (I) in the matter preceding subparagraph (A), by striking ``28'' and inserting ``27''; (II) by striking subparagraph (D); and (III) by redesignating subparagraphs (E) through (G) as subparagraphs (D) through (F), respectively; (ii) in paragraphs (2), (3), and (5), by striking ``subparagraphs (E), (F), and (G)'' each place it appears and inserting ``subparagraphs (D), (E), and (F)''; (iii) in paragraph (2), by striking ``subparagraph (G)'' and inserting ``subparagraph (F)''; (iv) in paragraph (4), by striking ``(C), and (D)'' and inserting ``and (C)''; and (v) in the matter preceding subparagraph (A) of paragraph (5), by striking ``subparagraph (E), (F), or (G)'' and inserting ``subparagraph (D), (E), or (F)''; and (B) in subsection (e)-- (i) in paragraph (1)(B), by striking ``subparagraph (E)'' and inserting ``subparagraph (D)''; and (ii) in paragraph (2), by striking ``subparagraphs (E), (F), and (G)'' and inserting ``subparagraphs (D), (E), and (F)''. (18) Section 504 of such Act (20 U.S.C. 5934) is amended-- (A) by striking subsection (f); and (B) by redesignating subsection (g) as subsection (f).

(b) Elementary and Secondary Education Act of 1965.-- (1) Section 1111 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311) is amended-- (A) in subsection (b)(8)(B), by striking ``(which may include opportunity-to-learn standards or strategies developed under the Goals 2000: Educate America Act)''; (B) in subsection (f), by striking ``opportunity-to- learn standards or strategies,'';

(C) by striking subsection (g); and (D) by redesignating subsection (h) as subsection (g). (2) Section 1116 of such Act (20 U.S.C. 6317) is amended-- (A) in subsection (c)-- (i) in paragraph (2)(A)(i), by striking all beginning with ``, which may'' through ``Act''; and (ii) in paragraph (5)(B)(i)-- (I) in subclause (VI), by inserting ``and'' after the semicolon; (II) in subclause (VII), by striking ``; and'' and inserting a period; and (III) by striking subclause (VIII); and (B) in subsection (d)-- (i) in paragraph (4)(B), by striking all beginning with ``, and may'' through ``Act''; and (ii) in paragraph (6)(B)(i)-- (I) by striking subclause (IV); and (II) by redesignating subclauses (V) through (VIII) as subclauses (IV) through (VII), respectively. (3) Section 1501(a)(2)(B) of such Act (20 U.S.C. 6491(a)(2)(B)) is amended-- (A) by striking clause (v); and (B) by redesignating clauses (vi) through (x) as clauses (v) through (ix), respectively. (4) Section 10101(b)(1)(A)(i) of such Act (20 U.S.C. 8001(b)(1)(A)(i)) is amended by striking ``and opportunity-to- learn standards or strategies for student learning''. (5) Section 14701(b)(1)(B)(v) of such Act (20 U.S.C. 8941(b)(1)(B)(v)) is amended by striking ``the National Education Goals Panel,'' and all that follows through ``assessments)'' and inserting ``and the National Education Goals Panel''.

(c) General Education Provisions Act.--Section 428 of the General Education Provisions Act (20 U.S.C. 1228b), as amended by section 237 of the Improving America's Schools Act of 1994 (Public Law 103-382), is amended by striking ``the National Education Standards and Improvement Council,''. (d) Education Amendments of 1978.--Section 1121(b) of the Education Amendments of 1978 (25 U.S.C. 2001(b)), as amended by section 381 of the Improving America's Schools Act of 1994 (Public Law 103-382), is amended by striking ``213(a)'' and inserting ``203(a)(2)''.

Section 304 of the Goals 2000: Educate America Act (20 U.S.C. 5884) is amended by adding at the end the following new subsection: ``(e) Direct Grants to Local Educational Agencies.-- ``(1) In general.--Notwithstanding subsection (c), if a State educational agency was not participating in the program under this section as of October 20, 1995, and the State educational agency approves, the Secretary shall use all or a portion of the allotment that the State would have received under this section for a fiscal year to award grants to local educational agencies in the State that have approved applications under paragraph (2) for such fiscal year. ``(2) Application.--Any local educational agency that desires to receive a grant under this subsection shall submit

an application to the Secretary that is consistent with the provisions of this Act and shall notify the State educational agency of such application in accordance with paragraph (1). The Secretary may establish a deadline for the submission of such applications. ``(3) Award basis.--The Secretary may use the student enrollment of a local educational agency or other factors as a basis for awarding grants under this subsection.''

(a) State Improvement Plans.--Section 306(n) of the Goals 2000: Educate America Act (20 U.S.C. 5886(n)) is amended by adding at the end the following new paragraph: ``(4) Alternative submission.-- ``(A) In general.--Notwithstanding any other provision of this title, any State educational agency that wishes to receive an allotment under this title after the first year such State educational agency receives such an allotment may, in lieu of submitting its State improvement plan for approval by the Secretary under this subsection and section 305(c)(2), or submitting major amendments to the Secretary under subsection (p), provide the Secretary, as part of an application under section 305(c) or as an amendment to a previously approved application-- ``(i) an assurance, from the Governor and the chief State school officer of the State, that-- ``(I) the State has a plan that meets the requirements of this section and that is widely available throughout the State; and ``(II) any amendments the State makes to the plan will meet the requirements of this section; and ``(ii) the State's benchmarks of improved student performance and of progress in implementing the plan, and the timelines against which the State's progress in carrying out the plan can be measured. ``(B) Annual report.--Any State educational agency that chooses to use the alternative method described in paragraph (1) shall annually report to the public summary information on the use of funds under this title by the State and local educational agencies in the State, as well as the State's progress toward meeting the benchmarks and timelines described in subparagraph (A)(ii).''.

(b) State Applications.--Section 305(c)(2) of such Act (20 U.S.C. 5885(c)(2)) is amended by inserting ``except in the case of a State educational agency submitting the information described in section 306(n)(4),'' before ``include''. (c) Secretary's Review of Applications.--Section 307(b)(1) of such Act (20 U.S.C. 5887(b)(1)) is amended-- (1) in subparagraph (A), by striking ``or'' after the semicolon; (2) in subparagraph (B), by striking ``and'' after the semicolon and inserting ``or''; and (3) by adding at the end the following new subparagraph: ``(C) the State educational agency has submitted the information described in section 306(n)(4); and''.

(d) Progress Reports.--The matter preceding paragraph (1) of section 312(a) of such Act (20 U.S.C. 5892(a)) is amended by striking ``Each'' and inserting ``Except in the case of a State educational agency submitting the information described in section 306(n)(4), each''.

Title III of the Goals 2000: Educate America Act (20 U.S.C. 5881 et seq.) is further amended by adding at the end the following new section:

``SEC. 320. LIMITATIONS.

``(a) Prohibited Conditions.--Nothing in this Act shall be construed to require a State, a local educational agency, or a school, as a condition of receiving assistance under this title-- ``(1) to provide outcomes-based education; or ``(2) to provide school-based health clinics or any other health or social service.

``(b) Limitation on Government Officials.--Nothing in this Act shall be construed to require or permit any Federal or State official to inspect a home, judge how parents raise their children, or remove children from their parents, as a result of the participation of a State, local educational agency, or school in any program or activity carried out under this Act.''. This Act may be cited as the ``Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 1996''.

(e) For programs, projects or activities in the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996, provided as follows, to be effective as if it had been enacted into law as the regular appropriations Act: AN <<NOTE: Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996.>> ACT

Making appropriations for the Departments of Veterans Affairs and Housing and Urban Development, and for sundry independent agencies, boards, commissions, corporations, and offices for the fiscal year ending September 30, 1996, and for other purposes.

TITLE I

DEPARTMENT OF VETERANS AFFAIRS

Veterans Benefits Administration

compensation and pensions

(including transfer of funds)

For the payment of compensation benefits to or on behalf of veterans as authorized by law (38 U.S.C. 107, chapters 11, 13, 51, 53, 55, and 61); pension benefits to or on behalf of veterans as authorized by law (38 U.S.C. chapters 15, 51, 53, 55, and 61; 92 Stat. 2508); and burial benefits, emergency and other officers' retirement pay, adjusted-service credits and certificates, payment of premiums due on commercial life insurance policies guaranteed under the provisions of Article IV of the Soldiers' and Sailors' Civil Relief Act of 1940, as amended, and for other benefits as

authorized by law (38 U.S.C. 107, 1312, 1977, and 2106, chapters 23, 51, 53, 55, and 61; 50 U.S.C. App. 540-548; 43 Stat. 122, 123; 45 Stat. 735; 76 Stat. 1198); $18,331,561,000, to remain available until expended: Provided, That not to exceed $25,180,000 of the amount appropriated shall be reimbursed to ``General operating expenses'' and ``Medical care'' for necessary expenses in implementing those provisions authorized in the Omnibus Budget Reconciliation Act of 1990, and in the Veterans' Benefits Act of 1992 (38 U.S.C. chapters 51, 53, and 55), the funding source for which is specifically provided as the ``Compensation and pensions'' appropriation: Provided further, That such sums as may be earned on an actual qualifying patient basis, shall be reimbursed to ``Medical facilities revolving fund'' to augment the funding of individual medical facilities for nursing home care provided to pensioners as authorized by the Veterans' Benefits Act of 1992 (38 U.S.C. chapter 55): Provided further, That $12,000,000 previously transferred from ``Compensation and pensions'' to ``Medical facilities revolving fund'' shall be transferred to this heading.

readjustment benefits

For the payment of readjustment and rehabilitation benefits to or on behalf of veterans as authorized by law (38 U.S.C. chapters 21, 30, 31, 34, 35, 36, 39, 51, 53, 55, and 61), $1,345,300,000, to remain available until expended: Provided, That funds shall be available to pay any court order, court award or any compromise settlement arising from litigation involving the vocational training program authorized by section 18 of Public Law 98-77, as amended.

veterans insurance and indemnities

For military and naval insurance, national service life insurance, servicemen's indemnities, service-disabled veterans insurance, and veterans mortgage life insurance as authorized by law (38 U.S.C. chapter 19; 70 Stat. 887; 72 Stat. 487), $24,890,000, to remain available until expended.

guaranty and indemnity program account

(including transfer of funds)

For the cost of direct and guaranteed loans, such sums as may be necessary to carry out the purpose of the program, as authorized by 38 U.S.C. chapter 37, as amended: Provided, That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended. In addition, for administrative expenses to carry out the direct and guaranteed loan programs, $65,226,000, which may be transferred to and merged with the appropriation for ``General operating expenses''.

(including transfer of funds)

For the cost of direct and guaranteed loans, such sums as may be necessary to carry out the purpose of the program, as authorized by 38 U.S.C. chapter 37, as amended: Provided, That such costs, including the cost of modifying such loans, shall be

as defined in section 502 of the Congressional Budget Act of 1974, as amended. In addition, for administrative expenses to carry out the direct and guaranteed loan programs, $52,138,000, which may be transferred to and merged with the appropriation for ``General operating expenses''.

(including transfer of funds)

For the cost of direct loans, such sums as may be necessary to carry out the purpose of the program, as authorized by 38 U.S.C. chapter 37, as amended: Provided, That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended: Provided further, That during 1996, within the resources available, not to exceed $300,000 in gross obligations for direct loans are authorized for specially adapted housing loans (38 U.S.C. chapter 37). In addition, for administrative expenses to carry out the direct loan program, $459,000, which may be transferred to and merged with the appropriation for ``General operating expenses''.

education loan fund program account

(including transfer of funds)

For the cost of direct loans, $1,000, as authorized by 38 U.S.C. 3698, as amended: Provided, That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended: Provided further, That these funds are available to subsidize gross obligations for the principal amount of direct loans not to exceed $4,000. In addition, for administrative expenses necessary to carry out the direct loan program, $195,000, which may be transferred to and merged with the appropriation for ``General operating expenses''.

vocational rehabilitation loans program account

(including transfer of funds)

For the cost of direct loans, $54,000, as authorized by 38 U.S.C. chapter 31, as amended: Provided, That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended: Provided further, That these funds are available to subsidize gross obligations for the principal amount of direct loans not to exceed $1,964,000. In addition, for administrative expenses necessary to carry out the direct loan program, $377,000, which may be transferred to and merged with the appropriation for ``General operating expenses''.

native american veteran housing loan program account

(including transfer of funds)

For administrative expenses to carry out the direct loan program authorized by 38 U.S.C. chapter 37, subchapter V, as

amended, $205,000, which may be transferred to and merged with the appropriation for ``General operating expenses''.

Veterans Health Administration

medical care

For necessary expenses for the maintenance and operation of hospitals, nursing homes, and domiciliary facilities; for furnishing, as authorized by law, inpatient and outpatient care and treatment to beneficiaries of the Department of Veterans Affairs, including care and treatment in facilities not under the jurisdiction of the Department of Veterans Affairs, and furnishing recreational facilities, supplies, and equipment; funeral, burial, and other expenses incidental thereto for beneficiaries receiving care in Department of Veterans Affairs facilities; administrative expenses in support of planning, design, project management, real property acquisition and disposition, construction and renovation of any facility under the jurisdiction or for the use of the Department of Veterans Affairs; oversight, engineering and architectural activities not charged to project cost; repairing, altering, improving or providing facilities in the several hospitals and homes under the jurisdiction of the Department of Veterans Affairs, not otherwise provided for, either by contract or by the hire of temporary employees and purchase of materials; uniforms or allowances therefor, as authorized by law (5 U.S.C. 5901-5902); aid to State homes as authorized by law (38 U.S.C. 1741); and not to exceed $8,000,000 to fund cost comparison studies as referred to in 38 U.S.C. 8110(a)(5); $16,564,000,000, plus reimbursements: Provided, That of the funds made available under this heading, $789,000,000 is for the equipment and land and structures object classifications only, which amount shall not become available for obligation until August 1, 1996, and shall remain available for obligation until September 30, 1997.

For necessary expenses in carrying out programs of medical and prosthetic research and development as authorized by law (38 U.S.C. chapter 73), to remain available until September 30, 1997, $257,000,000, plus reimbursements.

medical administration and miscellaneous operating expenses

For necessary expenses in the administration of the medical, hospital, nursing home, domiciliary, construction, supply, and research activities, as authorized by law; administrative expenses in support of planning, design, project management, architectural, engineering, real property acquisition and disposition, construction and renovation of any facility under the jurisdiction or for the use of the Department of Veterans Affairs, including site acquisition; engineering and architectural activities not charged to project cost; and research and development in building construction technology; $63,602,000, plus reimbursements.

transitional housing loan program

(including transfer of funds)

For the cost of direct loans, $7,000, as authorized by Public Law 102-54, section 8, which shall be transferred from the ``General post fund'': Provided, That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended: Provided further, That these funds are available to subsidize gross obligations for the principal amount of direct loans not to exceed $70,000. In addition, for administrative expenses to carry out the direct loan program, $54,000, which shall be transferred from the ``General post fund'', as authorized by Public Law 102-54, section 8.

Departmental Administration

general operating expenses

For necessary operating expenses of the Department of Veterans Affairs, not otherwise provided for, including uniforms or allowances therefor, as authorized by law; not to exceed $25,000 for official reception and representation expenses; hire of passenger motor vehicles; and reimbursement of the General Services Administration for security guard services, and the Department of Defense for the cost of overseas employee mail; $848,143,000: Provided, That of the amount appropriated and any other funds made available from any other source for activities funded under this heading, except reimbursements, not to exceed $214,109,000 shall be available for General Administration; including not to exceed (1) $3,206,000 for personnel compensation and benefits and $50,000 for travel in the Office of the Secretary, (2) $75,000 for travel in the Office of the Assistant Secretary for Policy and Planning, (3) $33,000 for travel in the Office of the Assistant Secretary for Congressional Affairs, and (4) $100,000 for travel in the Office of Assistant Secretary for Public and Intergovernmental Affairs: Provided further, That during fiscal year 1996, notwithstanding any other provision of law, the number of individuals employed by the Department of Veterans Affairs (1) in other than ``career appointee'' positions in the Senior Executive Service shall not exceed 6, and (2) in schedule C positions shall not exceed 11: Provided further, That not to exceed $6,000,000 of the amount appropriated shall be available for administrative expenses to carry out the direct and guaranteed loan programs under the Loan Guaranty Program Account: Provided further, That funds under this heading shall be available to administer the Service Members Occupational Conversion and Training Act: Provided further, That none of the funds under this heading may be obligated or expended for the acquisition of automated data processing equipment and services for Department of Veterans Affairs regional offices to support Stage III of the automated data equipment modernization program of the Veterans Benefits Administration.

national cemetery system

For necessary expenses for the maintenance and operation of the National Cemetery System not otherwise provided for, including uniforms or allowances therefor, as authorized by law; cemeterial

expenses as authorized by law; purchase of three passenger motor vehicles, for use in cemeterial operations; and hire of passenger motor vehicles, $72,604,000.

office of inspector general

For necessary expenses of the Office of Inspector General in carrying out the provisions of the Inspector General Act of 1978, as amended, $30,900,000.

construction, major projects

(including transfer of funds)

For constructing, altering, extending and improving any of the facilities under the jurisdiction or for the use of the Department of Veterans Affairs, or for any of the purposes set forth in sections 316, 2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110, and 8122 of title 38, United States Code, including planning, architectural and engineering services, maintenance or guarantee period services costs associated with equipment guarantees provided under the project, services of claims analysts, offsite utility and storm drainage system construction costs, and site acquisition, where the estimated cost of a project is $3,000,000 or more or where funds for a project were made available in a previous major project appropriation, $136,155,000, to remain available until expended: Provided, That except for advance planning of projects funded through the advance planning fund and the design of projects funded through the design fund, none of these funds shall be used for any project which has not been considered and approved by the Congress in the budgetary process: Provided further, That funds provided in this appropriation for fiscal year 1996, for each approved project shall be obligated (1) by the awarding of a construction documents contract by September 30, 1996, and (2) by the awarding of a construction contract by September 30, 1997: Provided further, That the Secretary shall promptly report in writing to the Comptroller General and to the Committees on Appropriations any approved major construction project in which obligations are not incurred within the time limitations established above; and the Comptroller General shall review the report in accordance with the procedures established by section 1015 of the Impoundment Control Act of 1974 (title X of Public Law 93-344): Provided further, That no funds from any other account except the ``Parking revolving fund'', may be obligated for constructing, altering, extending, or improving a project which was approved in the budget process and funded in this account until one year after substantial completion and beneficial occupancy by the Department of Veterans Affairs of the project or any part thereof with respect to that part only: Provided further, That of the funds made available under this heading in Public Law 103-327, $7,000,000 shall be transferred to the ``Parking revolving fund''.

For constructing, altering, extending, and improving any of the facilities under the jurisdiction or for the use of the Department of Veterans Affairs, including planning, architectural and engineering services, maintenance or guarantee period services costs associated with equipment guarantees provided under the project, services

of claims analysts, offsite utility and storm drainage system construction costs, and site acquisition, or for any of the purposes set forth in sections 316, 2404, 2406, 8102, 8103, 8106, 8108, 8109, 8110, and 8122 of title 38, United States Code, where the estimated cost of a project is less than $3,000,000, $190,000,000, to remain available until expended, along with unobligated balances of previous ``Construction, minor projects'' appropriations which are hereby made available for any project where the estimated cost is less than $3,000,000: Provided, That funds in this account shall be available for (1) repairs to any of the nonmedical facilities under the jurisdiction or for the use of the Department of Veterans Affairs which are necessary because of loss or damage caused by any natural disaster or catastrophe, and (2) temporary measures necessary to prevent or to minimize further loss by such causes.

parking revolving fund

For the parking revolving fund as authorized by law (38 U.S.C. 8109), income from fees collected, to remain available until expended. Resources of this fund shall be available for all expenses authorized by 38 U.S.C. 8109 except operations and maintenance costs which will be funded from ``Medical care''.

grants for construction of state extended care facilities

For grants to assist the several States to acquire or construct State nursing home and domiciliary facilities and to remodel, modify or alter existing hospital, nursing home and domiciliary facilities in State homes, for furnishing care to veterans as authorized by law (38 U.S.C. 8131-8137), $47,397,000, to remain available until expended.

grants for the construction of state veterans cemeteries

For grants to aid States in establishing, expanding, or improving State veteran cemeteries as authorized by law (38 U.S.C. 2408), $1,000,000, to remain available until September 30, 1998.

administrative provisions

(including transfer of funds)

Sec. 101. Any appropriation for 1996 for ``Compensation and pensions'', ``Readjustment benefits'', and ``Veterans insurance and indemnities'' may be transferred to any other of the mentioned appropriations. Sec. 102. Appropriations available to the Department of Veterans Affairs for 1996 for salaries and expenses shall be available for services as authorized by 5 U.S.C. 3109. Sec. 103. No part of the appropriations in this Act for the Department of Veterans Affairs (except the appropriations for ``Construction, major projects'', ``Construction, minor projects'', and the ``Parking revolving fund'') shall be available for the purchase of any site for or toward the construction of any new hospital or home. Sec. 104. No part of the foregoing appropriations shall be available for hospitalization or examination of any persons except beneficiaries entitled under the laws bestowing such benefits to

veterans, unless reimbursement of cost is made to the appropriation at such rates as may be fixed by the Secretary of Veterans Affairs. Sec. 105. Appropriations available to the Department of Veterans Affairs for fiscal year 1996 for ``Compensation and pensions'', ``Readjustment benefits'', and ``Veterans insurance and indemnities'' shall be available for payment of prior year accrued obligations required to be recorded by law against the corresponding prior year accounts within the last quarter of fiscal year 1995. Sec. 106. Appropriations accounts available to the Department of Veterans Affairs for fiscal year 1996 shall be available to pay prior year obligations of corresponding prior year appropriations accounts resulting from title X of the Competitive Equality Banking Act, Public Law 100-86, except that if such obligations are from trust fund accounts they shall be payable from ``Compensation and pensions''.

Sec. 107. Notwithstanding any other provision of law, the Secretary of Veterans Affairs is authorized to transfer, without compensation or reimbursement, the jurisdiction and control of a parcel of land consisting of approximately 6.3 acres, located on the south edge of the Department of Veterans Affairs Medical and Regional Office Center, Wichita, Kansas, including buildings Nos. 8 and 30 and other improvements thereon, to the Secretary of Transportation for the purpose of expanding and modernizing United States Highway 54: Provided, That if necessary, the exact acreage and legal description of the real property transferred shall be determined by a survey satisfactory to the Secretary of Veterans Affairs and the Secretary of Transportation shall bear the cost of such survey: Provided further, That the Secretary of Transportation shall be responsible for all costs associated with the transferred land and improvements thereon, and compliance with all existing statutes and regulations: Provided further, That the Secretary of Veterans Affairs and the Secretary of Transportation may require such additional terms and conditions as each Secretary considers appropriate to effectuate this transfer of land. Sec. 108. Construction Authorization--Authorization of major medical facility projects and major medical facility leases for the Department of Veterans Affairs for fiscal year 1996. (a) Authorization of Major Medical Facility Projects--The Secretary of Veterans Affairs may carry out the following major medical facility projects, with each project to be carried out in the amount authorized for that project: (1) Construction of an outpatient clinic in Brevard County, Florida, in the amount of $25,000,000. (2) Construction of an outpatient clinic at Travis Air Force Base in Fairfield, California, in the amount of $25,000,000. (3) Construction of an ambulatory care addition at the Department of Veterans Affairs medical center in Boston, Massachusetts in the amount of $28,000,000. (4) Construction of a medical research addition at the Department of Veterans Affairs medical center in Portland, Oregon, an additional authorization in the amount of $16,000,000, for a total amount of $32,100,000.

(b) Authorization of Major Medical Facility Leases--The Secretary of Veterans Affairs may enter into leases for medical facilities as follows: (1) Lease of a satellite outpatient clinic in Fort Myers, Florida, in the amount of $1,736,000.

(2) Lease of a National Footwear Center in New York, New York, in the amount of $1,054,000.

(c) Authorization of Appropriations--There are authorized to be appropriated to the Secretary of Veterans Affairs for fiscal year 1996-- (1) $94,000,000 for the major medical facility projects authorized in subsection (a); and (2) $2,790,000 for the major medical facility leases authorized in subsection (b).

(d) Limitation--The projects authorized in subsection (a) may only be carried out using-- (1) funds appropriated for fiscal year 1996 and subsequent fiscal years pursuant to the authorization of appropriations in subsection (c). (2) funds appropriated for Construction, Major Projects for a fiscal year before fiscal year 1996 that remain available for obligation; and (3) funds appropriated for Construction, Major Projects for fiscal year 1996 for a category of activity not specific to a project.

(e) Limitation Concerning Outpatient Clinic Projects--In the case of either of the projects for a new outpatient clinic authorized in paragraphs (1) and (2) of subsection (a)-- (1) the Secretary of Veterans Affairs may not obligate any funds for that project until the Secretary determines, and certifies to the Committees on Veterans' Affairs of the Senate and House of Representatives, the amount required for the project; and (2) the amount obligated for the project may not exceed the amount certified under paragraph (1) with respect to that project.

Sec. 109. (a) Designation.--The Walla Walla Veterans Medical Center located at 77 Wainwright Drive, Walla Walla, Washington, shall be known and designated as the ``Jonathan M. Wainwright Memorial VA Medical Center''.

(b) References.--Any reference in a law, map, regulation, document, paper, or other record of the United States to the Walla Walla Veterans Medical Center referred to in subsection (a) shall be deemed to be a reference to the ``Jonathan M. Wainwright Memorial VA Medical Center''.

TITLE II

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Housing Programs

annual contributions for assisted housing

For assistance under the United States Housing Act of 1937, as amended (``the Act'' herein) (42 U.S.C. 1437), not otherwise provided for, $9,818,795,000 to remain available until expended: Provided, That of the total amount provided under this head, $160,000,000 shall be for the development or acquisition cost of public housing for Indian families, including amounts for housing under the mutual help homeownership opportunity program under section 202 of the Act (42 U.S.C. 1437bb): Provided further, That of the total amount provided under this head, $2,500,000,000 shall

be for modernization of existing public housing projects pursuant to section 14 of the Act (42 U.S.C. 1437l), including up to $20,000,000 for the inspection of public housing units, contract expertise, and training and technical assistance, directly or indirectly, under grants, contracts, or cooperative agreements, to assist in the oversight and management of public and Indian housing (whether or not the housing is being modernized with assistance under this proviso) or tenant-based assistance, including, but not limited to, an annual resident survey, data collection and analysis, training and technical assistance by or to officials and employees of the Department and of public housing agencies and to residents in connection with the public and Indian housing program, or for carrying out activities under section 6(j) of the Act: Provided further, That of the total amount provided under this head, $400,000,000 shall be for rental subsidy contracts under the section 8 existing housing certificate program and the housing voucher program under section 8 of the Act, except that such amounts shall be used only for units necessary to provide housing assistance for residents to be relocated from existing federally subsidized or assisted housing, for replacement housing for units demolished or disposed of (including units to be disposed of pursuant to a homeownership program under section 5(h) or title III of the United States Housing Act of 1937) from the public housing inventory, for funds related to litigation settlements, for the conversion of section 23 projects to assistance under section 8, for public housing agencies to implement allocation plans approved by the Secretary for designated housing, for funds to carry out the family unification program, and for the relocation of witnesses in connection with efforts to combat crime in public and assisted housing pursuant to a request from a law enforcement or prosecution agency: Provided further, That of the total amount provided under this head, $4,007,862,000 shall be for assistance under the United States Housing Act of 1937 (42 U.S.C. 1437) for use in connection with expiring or terminating section 8 subsidy contracts, such amounts shall be merged with all remaining obligated and unobligated balances heretofore appropriated under the heading ``Renewal of expiring section 8 subsidy contracts'': Provided further, That notwithstanding any other provision of law, assistance reserved under the two preceding provisos may be used in connection with any provision of Federal law enacted in this Act or after the enactment of this Act that authorizes the use of rental assistance amounts in connection with such terminated or expired contracts: Provided further, That the Secretary may determine not to apply section 8(o)(6)(B) of the Act to housing vouchers during fiscal year 1996: Provided further, That of the total amount provided under this head, $610,575,000 shall be for amendments to section 8 contracts other than contracts for projects developed under section 202 of the Housing Act of 1959, as amended; and $192,000,000 shall be for section 8 assistance and rehabilitation grants for property disposition: Provided further, That 50 per centum of the amounts of budget authority, or in lieu thereof 50 per centum of the cash amounts associated with such budget authority, that are recaptured from projects described in section 1012(a) of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988 (Public Law 100-628, 102 Stat. 3224, 3268) shall be rescinded, or in the case of cash, shall be remitted to the Treasury, and such amounts of budget authority or cash recaptured and not rescinded or remitted

to the Treasury shall be used by State housing finance agencies or local governments or local housing agencies with projects approved by the Secretary of Housing and Urban Development for which settlement occurred after January 1, 1992, in accordance with such section: Provided further, That of the total amount provided under this head, $171,000,000 shall be for housing opportunities for persons with AIDS under title VIII, subtitle D of the Cranston-Gonzalez National Affordable Housing Act; and $65,000,000 shall be for the lead-based paint hazard reduction program as authorized under sections 1011 and 1053 of the Residential Lead-Based Hazard Reduction Act of 1992: Provided further, That the Secretary may make up to $5,000,000 of any amount recaptured in this account available for the development of performance and financial systems.

Of the total amount provided under this head, <<NOTE: 12 USC 4101 note.>> $624,000,000, plus amounts recaptured from interest reduction payment contracts for section 236 projects whose owners prepay their mortgages during fiscal year 1996 (which amounts shall be transferred and merged with this account), shall be for use in conjunction with properties that are eligible for assistance under the Low Income Housing Preservation and Resident Homeownership Act of 1990 (LIHPRHA) or the Emergency Low-Income Housing Preservation Act of 1987 (ELIHPA): Provided, That prior to August 15, 1996, funding to carry out plans of action shall be limited to sales of projects to non-profit organizations, tenant-sponsored organizations, and other priority purchasers: Provided further, That of the amount made available by this paragraph, up to $10,000,000 shall be available for preservation technical assistance grants pursuant to section 253 of the Housing and Community Development Act of 1987, as amended: Provided further, That with respect to amounts made available by this paragraph, after August 15, 1996, if the Secretary determines that the demand for funding may exceed amounts available for such funding, the Secretary (1) may determine priorities for distributing available funds, including giving priority funding to tenants displaced due to mortgage prepayment and to projects that have not yet been funded but which have approved plans of action; and (2) may impose a temporary moratorium on applications by potential recipients of such funding: Provided further, That an owner of eligible low-income housing may prepay the mortgage or request voluntary termination of a mortgage insurance contract, so long as said owner agrees not to raise rents for sixty days after such prepayment: Provided further, That an owner of eligible low-income housing who has not timely filed a second notice under section 216(d) prior to the effective date of this Act may file such notice by April 15, 1996: Provided further, That such developments have been determined to have preservation equity at least equal to the lesser of $5,000 per unit or $500,000 per project or the equivalent of eight times the most recently published fair market rent for the area in which the project is located as the appropriate unit size for all of the units in the eligible project: Provided further, That the Secretary may modify the regulatory agreement to permit owners and priority purchasers to retain rental income in excess of the basic rental charge in projects assisted under section 236 of the National Housing Act, for the purpose of preserving the low and moderate income character of the housing: Provided further, That the Secretary may give priority to funding and processing the following projects provided that the funding

is obligated not later than September 15, 1996: (1) projects with approved plans of action to retain the housing that file a modified plan of action no later than August 15, 1996 to transfer the housing; (2) projects with approved plans of action that are subject to a repayment or settlement agreement that was executed between the owner and the Secretary prior to September 1, 1995; (3) projects for which submissions were delayed as a result of their location in areas that were designated as a Federal disaster area in a Presidential Disaster Declaration; and (4) projects whose processing was, in fact, or in practical effect, suspended, deferred, or interrupted for a period of nine months or more because of differing interpretations, by the Secretary and an owner concerning the time of the ability of an uninsured section 236 property to prepay or by the Secretary and a State or local rent regulatory agency, concerning the effect of a presumptively applicable State or local rent control law or regulation on the determination of preservation value under section 213 of LIHPRHA, as amended, if the owner of such project filed notice of intent to extend the low-income affordability restrictions of the housing, or transfer to a qualified purchaser who would extend such restrictions, on or before November 1, 1993: Provided further, That eligible low-income housing shall include properties meeting the requirements of this paragraph with mortgages that are held by a State agency as a result of a sale by the Secretary without insurance, which immediately before the sale would have been eligible low-income housing under LIHPRHA: Provided further, That notwithstanding any other provision of law, subject to the availability of appropriated funds, each unassisted low-income family residing in the housing on the date of prepayment or voluntary termination, and whose rent, as a result of a rent increase occurring no later than one year after the date of the prepayment, exceeds 30 percent of adjusted income, shall be offered tenant-based assistance in accordance with section 8 or any successor program, under which the family shall pay no less for rent than it paid on such date: Provided further, That any family receiving tenant-based assistance under the preceding proviso may elect (1) to remain in the unit of the housing and if the rent exceeds the fair market rent or payment standard, as applicable, the rent shall be deemed to be the applicable standard, so long as the administering public housing agency finds that the rent is reasonable in comparison with rents charged for comparable unassisted housing units in the market or (2) to move from the housing and the rent will be subject to the fair market rent of the payment standard, as applicable, under existing program rules and procedures: Provided further, That rents and rent increases for tenants of projects for which plans of action are funded under section 220(d)(3)(B) of LIHPRHA shall be governed in accordance with the requirements of the program under which the first mortgage is insured or made (sections 236 or 221(d)(3) BMIR, as appropriate): Provided further, That the immediately foregoing proviso shall apply hereafter to projects for which plans of action are to be funded under such section 220(d)(3)(B), and shall apply to any project that has been funded under such section starting one year after the date that such project was funded: Provided further, That up to $10,000,000 of the amount made available by this paragraph may be used at the discretion of the Secretary to reimburse owners of eligible properties for which plans of action were submitted prior to the effective date of this Act,

but were not executed for lack of available funds, with such reimbursement available only for documented costs directly applicable to the preparation of the plan of action as determined by the Secretary, and shall be made available on terms and conditions to be established by the Secretary: Provided further, That, notwithstanding any other provision of law, effective October 1, 1996, the Secretary shall suspend further processing of preservation applications which do not have approved plans of action.

Of the total amount provided under this head, $780,190,000 shall be for capital advances, including amendments to capital advance contracts, for housing for the elderly, as authorized by section 202 of the Housing Act of 1959, as amended, and for project rental assistance, and amendments to contracts for project rental assistance, for supportive housing for the elderly under section 202(c)(2) of the Housing Act of 1959; and $233,168,000 shall be for capital advances, including amendments to capital advance contracts, for supportive housing for persons with disabilities, as authorized by section 811 of the Cranston- Gonzalez National Affordable Housing Act; and for project rental assistance, and amendments to contracts for project rental assistance, for supportive housing for persons with disabilities as authorized by section 811 of the Cranston-Gonzalez National Affordable Housing Act: Provided, That the Secretary may designate up to 25 percent of the amounts earmarked under this paragraph for section 811 of the Cranston- Gonzalez National Affordable Housing Act for tenant-based assistance, as authorized under that section, which assistance is five-years in duration: Provided further, That the Secretary may waive any provision of section 202 of the Housing Act of 1959 and section 811 of the National Affordable Housing Act (including the provisions governing the terms and conditions of project rental assistance) that the Secretary determines is not necessary to achieve the objectives of these programs, or that otherwise impedes the ability to develop, operate or administer projects assisted under these programs, and may make provision for alternative conditions or terms where appropriate. Of the total amount provided under this heading, and in addition to funds otherwise earmarked in the previous paragraph, for section 202 of the Housing Act of 1959 and section 811 of the Cranston-Gonzalez National Affordable Housing Act, $75,000,000: Provided, That $50,000,000 of such sum shall be available for purposes authorized by section 202 of the Housing Act of 1959, and $25,000,000 shall be available for purposes authorized by section 811 of the Cranston-Gonzalez National Affordable Housing Act: Provided further, That such additional sums shall be available only to provide for rental subsidy terms of a longer duration than would otherwise be permitted by this Act.

public housing demolition, site revitalization, and replacement housing grants

For grants to public housing agencies for the purposes of enabling the demolition of obsolete public housing projects or portions thereof, the revitalization (where appropriate) of sites (including remaining public housing units) on which such projects are located, replacement housing which will avoid or lessen concentrations of very low-income families, and tenant-based assistance in accordance with section 8 of the United States Housing Act of 1937 for the purpose of providing replacement housing and assisting

tenants to be displaced by the demolition, $480,000,000, to remain available until expended: Provided, That the Secretary of Housing and Urban Development shall award such funds to public housing agencies based upon, among other relevant criteria, the local and national impact of the proposed demolition and revitalization activities and the extent to which the public housing agency could undertake such activities without the additional assistance to be provided hereunder: Provided further, That eligible expenditures hereunder shall be those expenditures eligible under section 8 and section 14 of the United States Housing Act of 1937 (42 U.S.C. 1437f and l): Provided further, That the Secretary may impose such conditions and requirements as the Secretary deems appropriate to effectuate the purposes of this paragraph: Provided further, That the Secretary may require an agency selected to receive funding to make arrangements satisfactory to the Secretary for use of an entity other than the agency to carry out this program where the Secretary determines that such action will help to effectuate the purpose of this paragraph: Provided further, That in the event an agency selected to receive funding does not proceed expeditiously as determined by the Secretary, the Secretary shall withdraw any funding made available pursuant to this paragraph that has not been obligated by the agency and distribute such funds to one or more other eligible agencies, or to other entities capable of proceeding expeditiously in the same locality with the original program: Provided further, That of the foregoing $480,000,000, the Secretary may use up to.67 per centum for technical assistance, to be provided directly or indirectly by grants, contracts or cooperative agreements, including training and cost of necessary travel for participants in such training, by or to officials and employees of the Department and of public housing agencies and to residents: Provided further, That any replacement housing provided with assistance under this head shall be subject to section 18(f) of the United States Housing Act of 1937, as amended by section 201(b)(2) of this Act.

(including transfer of funds)

From the fund established by section 236(g) of the National Housing Act, as amended, all uncommitted balances of excess rental charges as of September 30, 1995, and any collections during fiscal year 1996 shall be transferred, as authorized under such section, to the fund authorized under section 201(j) of the Housing and Community Development Amendments of 1978, as amended.

rental housing assistance

(rescission)

The limitation otherwise applicable to the maximum payments that may be required in any fiscal year by all contracts entered into under section 236 of the National Housing Act (12 U.S.C. 1715z-1) is reduced in fiscal year 1996 by not more than $2,000,000 in uncommitted balances of authorizations provided for this purpose in appropriations Acts: Provided, That up to $163,000,000 of recaptured section 236 budget authority resulting from the prepayment of mortgages subsidized under section 236 of the National Housing Act (12 U.S.C. 1715z-1) shall be rescinded in fiscal year 1996.

payments for operation of low-income housing projects

For payments to public housing agencies and Indian housing authorities for operating subsidies for low-income housing projects as authorized by section 9 of the United States Housing Act of 1937, as amended (42 U.S.C. 1437g), $2,800,000,000.

drug elimination grants for low-income housing

For grants to public and Indian housing agencies for use in eliminating crime in public housing projects authorized by 42 U.S.C. 11901-11908, for grants for federally assisted low-income housing authorized by 42 U.S.C. 11909, and for drug information clearinghouse services authorized by 42 U.S.C. 11921-11925, $290,000,000, to remain available until expended, of which $10,000,000 shall be for grants, technical assistance, contracts and other assistance training, program assessment, and execution for or on behalf of public housing agencies and resident organizations (including the cost of necessary travel for participants in such training) and of which $2,500,000 shall be used in connection with efforts to combat violent crime in public and assisted housing under the Operation Safe Home program administered by the Inspector General of the Department of Housing and Urban Development: Provided, That the term ``drug-related crime'', as defined in 42 U.S.C. 11905(2), shall also include other types of crime as determined by the Secretary: Provided further, That notwithstanding section 5130(c) of the Anti-Drug Abuse Act of 1988 (42 U.S.C. 11909(c)), the Secretary may determine not to use any such funds to provide public housing youth sports grants.

home investment partnerships program

For the HOME investment partnerships program, as authorized under title II of the Cranston-Gonzalez National Affordable Housing Act (Public Law 101-625), as amended, $1,400,000,000, to remain available until expended.

indian housing loan guarantee fund program account

For the cost of guaranteed loans, $3,000,000, as authorized by section 184 of the Housing and Community Development Act of 1992 (106 Stat. 3739): Provided, That such costs, including the costs of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended: Provided further, That these funds are available to subsidize total loan principal, any part of which is to be guaranteed, not to exceed $36,900,000. Homeless Assistance

homeless assistance grants

For the emergency shelter grants program (as authorized under subtitle B of title IV of the Stewart B. McKinney Homeless Assistance Act (Public Law 100-77), as amended); the supportive housing program (as authorized under subtitle C of title IV of such Act); the section 8 moderate rehabilitation single room occupancy program (as authorized under the United States Housing Act of 1937, as amended) to assist homeless individuals pursuant to section 441 of the Stewart B. McKinney Homeless Assistance Act; and

the shelter plus care program (as authorized under subtitle F of title IV of such Act), $823,000,000, to remain available until expended. Community Planning and Development

community development grants

(including transfer of funds)

For grants to States and units of general local government and for related expenses, not otherwise provided for, necessary for carrying out a community development grants program as authorized by title I of the Housing and Community Development Act of 1974, as amended (42 U.S.C. 5301), $4,600,000,000, to remain available until September 30, 1998: Provided, That $50,000,000 shall be available for grants to Indian tribes pursuant to section 106(a)(1) of the Housing and Community Development Act of 1974, as amended (42 U.S.C. 5301), $2,000,000 shall be available as a grant to the Housing Assistance Council, $1,000,000 shall be available as a grant to the National American Indian Housing Council, and $27,000,000 shall be available for ``special purpose grants'' pursuant to section 107 of such Act: Provided further, That not to exceed 20 per centum of any grant made with funds appropriated herein (other than a grant made available under the preceding proviso to the Housing Assistance Council or the National American Indian Housing Council, or a grant using funds under section 107(b)(3) of the Housing and Community Development Act of 1974) shall be expended for ``Planning and Management Development'' and ``Administration'' as defined in regulations promulgated by the Department of Housing and Urban Development: Provided further, That section 105(a)(25) of such Act, as added by section 907(b)(1) of the Cranston-Gonzalez National Affordable Housing Act, shall continue to be effective after September 30, 1995, notwithstanding section 907(b)(2) of such Act: Provided further, That section 916 of the Cranston-Gonzalez National Affordable Housing Act <<NOTE: Applicability. 42 USC 5306 note.>> shall apply with respect to fiscal year 1996, notwithstanding section 916(f) of that Act.

Of the amount provided under this heading, the Secretary of Housing and Urban Development may use up to $53,000,000 for grants to public housing agencies (including Indian housing authorities), nonprofit corporations, and other appropriate entities for a supportive services program to assist residents of public and assisted housing, former residents of such housing receiving tenant-based assistance under section 8 of such Act (42 U.S.C. 1437f), and other low-income families and individuals to become self-sufficient: Provided, That the program shall provide supportive services, principally for the benefit of public housing residents, to the elderly and the disabled, and to families with children where the head of the household would benefit from the receipt of supportive services and is working, seeking work, or is preparing for work by participating in job training or educational programs: Provided further, That the supportive services shall include congregate services for the elderly and disabled, service coordinators, and coordinated educational, training, and other supportive services, including academic skills training, job search assistance, assistance related to retaining employment, vocational and entrepreneurship development and support programs, transportation, and child care: Provided further, That the Secretary shall require applicants to dem

onstrate firm commitments of funding or services from other sources: Provided further, That the Secretary shall select public and Indian housing agencies to receive assistance under this head on a competitive basis, taking into account the quality of the proposed program (including any innovative approaches), the extent of the proposed coordination of supportive services, the extent of commitments of funding or services from other sources, the extent to which the proposed program includes reasonably achievable, quantifiable goals for measuring performance under the program over a three-year period, the extent of success an agency has had in carrying out other comparable initiatives, and other appropriate criteria established by the Secretary. Of the amount made available under this heading, notwithstanding any other provision of law, $12,000,000 shall be available for contracts, grants, and other assistance, other than loans, not otherwise provided for, for providing counseling and advice to tenants and homeowners both current and prospective, with respect to property maintenance, financial management, and such other matters as may be appropriate to assist them in improving their housing conditions and meeting the responsibilities of tenancy or homeownership, including provisions for training and for support of voluntary agencies and services as authorized by section 106 of the Housing and Urban Development Act of 1968, as amended, notwithstanding section 106(c)(9) and section 106(d)(13) of such Act. Of the amount made available under this heading, notwithstanding any other provision of law, $15,000,000 shall be available for the tenant opportunity program. Of the amount made available under this heading, notwithstanding any other provision of law, $20,000,000 shall be available for youthbuild program activities authorized by subtitle D of title IV of the Cranston- Gonzalez National Affordable Housing Act, as amended, and such activities shall be an eligible activity with respect to any funds made available under this heading. Of the amount made available under this heading, notwithstanding any other provision of law, $50,000,000 shall be available for Economic Development Initiative grants as authorized by section 232 of the Multifamily Housing Property Disposition Reform Act of 1994, Public Law 103-233, on a competitive basis as required by section 102 of the HUD Reform Act. For the cost of guaranteed loans, $31,750,000, as authorized by section 108 of the Housing and Community Development Act of 1974: Provided, That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended: Provided further, That these funds are available to subsidize total loan principal, any part of which is to be guaranteed, not to exceed $1,500,000,000: Provided further, That the Secretary of Housing and Urban Development may make guarantees not to exceed the immediately foregoing amount notwithstanding the aggregate limitation on guarantees set forth in section 108(k) of the Housing and Community Development Act of 1974. In addition, for administrative expenses to carry out the guaranteed loan program, $675,000 which shall be transferred to and merged with the appropriation for departmental salaries and expenses. The amount made available for fiscal year 1995 for a special purpose grant for the renovation of the central terminal in Buffalo,

New York, shall be made available for the central terminal and for other public facilities in Buffalo, New York.

Policy Development and Research

research and technology

For contracts, grants, and necessary expenses of programs of research and studies relating to housing and urban problems, not otherwise provided for, as authorized by title V of the Housing and Urban Development Act of 1970, as amended (12 U.S.C. 1701z-1 et seq.), including carrying out the functions of the Secretary under section 1(a)(1)(i) of Reorganization Plan No. 2 of 1968, $34,000,000, to remain available until September 30, 1997.

Fair Housing and Equal Opportunity

fair housing activities

For contracts, grants, and other assistance, not otherwise provided for, as authorized by title VIII of the Civil Rights Act of 1968, as amended by the Fair Housing Amendments Act of 1988, and for contracts with qualified fair housing enforcement organizations, as authorized by section 561 of the Housing and Community Development Act of 1987, as amended by the Housing and Community Development Act of 1992, $30,000,000, to remain available until September 30, 1997.

Management and Administration

salaries and expenses

(including transfers of funds)

For necessary administrative and nonadministrative expenses of the Department of Housing and Urban Development, not otherwise provided for, including not to exceed $7,000 for official reception and representation expenses, $962,558,000, of which $532,782,000 shall be provided from the various funds of the Federal Housing Administration, and $9,101,000 shall be provided from funds of the Government National Mortgage Association, and $675,000 shall be provided from the Community Development Grants Program account.

office of inspector general

(including transfer of funds)

For necessary expenses of the Office of Inspector General in carrying out the provisions of the Inspector General Act of 1978, as amended, $47,850,000, of which $11,283,000 shall be transferred from the various funds of the Federal Housing Administration.

Office of Federal Housing Enterprise Oversight

salaries and expenses

(including transfer of funds)

For carrying out the Federal Housing Enterprise Financial Safety and Soundness Act of 1992, $14,895,000, to remain available until expended, from the Federal Housing Enterprise Oversight Fund: Provided, That such amounts shall be collected by the Director as authorized by section 1316 (a) and (b) of such Act, and deposited in the Fund under section 1316(f) of such Act.

Federal Housing Administration

fha--mutual mortgage insurance program account

(including transfers of funds)

During fiscal year 1996, commitments to guarantee loans to carry out the purposes of section 203(b) of the National Housing Act, as amended, shall not exceed a loan principal of $110,000,000,000: Provided, That during fiscal year 1996, the Secretary shall sell assigned mortgage notes having an unpaid principal balance of up to $4,000,000,000, which notes were originally insured under section 203(b) of the National Housing Act: Provided further, That the Secretary may use any negative subsidy amounts from the sale of such assigned mortgage notes during fiscal year 1996 for the disposition of properties or notes under this heading. During fiscal year 1996, obligations to make direct loans to carry out the purposes of section 204(g) of the National Housing Act, as amended, shall not exceed $200,000,000: Provided, That the foregoing amount shall be for loans to nonprofit and governmental entities in connection with sales of single family real properties owned by the Secretary and formerly insured under section 203 of such Act. For administrative expenses necessary to carry out the guaranteed and direct loan program, $341,595,000, to be derived from the FHA-mutual mortgage insurance guaranteed loans receipt account, of which not to exceed $334,483,000 shall be transferred to the appropriation for departmental salaries and expenses; and of which not to exceed $7,112,000 shall be transferred to the appropriation for the Office of Inspector General.

fha--general and special risk program account

(including transfers of funds)

For the cost of guaranteed loans, as authorized by sections 238 and 519 of the National Housing Act (12 U.S.C. 1715z-3 and 1735c), including the cost of modifying such loans, $85,000,000, to remain available until expended: Provided, That such costs shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended: Provided further, That these funds are available to subsidize total loan principal any part of which is to be guaranteed of not to exceed $17,400,000,000: Provided further, That during fiscal year 1996, the Secretary shall sell assigned notes having an unpaid principal balance of up to $4,000,000,000, which notes were originally obligations of the funds established under sections

238 and 519 of the National Housing Act: Provided further, That the Secretary may use any negative subsidy amounts, to remain available until expended, from the sale of such assigned mortgage notes, in addition to amounts otherwise provided, for the disposition of properties or notes under this heading (including the credit subsidy for the guarantee of loans or the reduction of positive credit subsidy amounts that would otherwise be required for the sale of such properties or notes), and for any other purpose under this heading: Provided further, That any amounts made available in any prior appropriation Act for the cost (as such term is defined in section 502 of the Congressional Budget Act of 1974) of guaranteed loans that are obligations of the funds established under section 238 or 519 of the National Housing Act that have not been obligated or that are deobligated shall be available to the Secretary of Housing and Urban Development in connection with the making of such guarantees and shall remain available until expended, notwithstanding the expiration of any period of availability otherwise applicable to such amounts. Gross obligations for the principal amount of direct loans, as authorized by sections 204(g), 207(l), 238(a), and 519(a) of the National Housing Act, shall not exceed $120,000,000; of which not to exceed $100,000,000 shall be for bridge financing in connection with the sale of multifamily real properties owned by the Secretary and formerly insured under such Act; and of which not to exceed $20,000,000 shall be for loans to nonprofit and governmental entities in connection with the sale of single-family real properties owned by the Secretary and formerly insured under such Act. In addition, for administrative expenses necessary to carry out the guaranteed and direct loan programs, $202,470,000, of which $198,299,000 shall be transferred to the appropriation for departmental salaries and expenses; and of which $4,171,000 shall be transferred to the appropriation for the Office of Inspector General.

Government National Mortgage Association

guarantees of mortgage-backed securities loan guarantee program account

(includes transfer of funds)

During fiscal year 1996, new commitments to issue guarantees to carry out the purposes of section 306 of the National Housing Act, as amended (12 U.S.C. 1721(g)), shall not exceed $110,000,000,000. For administrative expenses necessary to carry out the guaranteed mortgage-backed securities program, $9,101,000, to be derived from the GNMA--guarantees of mortgage-backed securities guaranteed loan receipt account, of which not to exceed $9,101,000 shall be transferred to the appropriation for departmental salaries and expenses.

administrative provisions

(including transfer of funds)

extend administrative provisions from the rescission act

Sec. 201. (a) Public and Indian Housing Modernization.-- (1) Expansion of use of modernization funding.--Subsection 14(q) of the United States Housing Act of 1937 <<NOTE: 42 USC 1437l.>> is amended to read as follows:

``(q)(1) In addition to the purposes enumerated in subsections (a) and (b), a public housing agency may use modernization assistance provided under section 14, and development assistance provided under section 5(a) that was not allocated, as determined by the Secretary, for priority replacement housing, for any eligible activity authorized by this section, by section 5, or by applicable Appropriations Acts for a public housing agency, including the demolition, rehabilitation, revitalization, and replacement of existing units and projects and, for up to 10 percent of its allocation of such funds in any fiscal year, for any operating subsidy purpose authorized in section 9. Except for assistance used for operating subsidy purposes under the preceding sentence, assistance provided to a public housing agency under this section shall principally be used for the physical improvement, replacement of public housing, other capital purposes, and for associated management improvements, and such other extraordinary purposes as may be approved by the Secretary. Low-income and very low- income units assisted under this paragraph shall be eligible for operating subsidies, unless the Secretary determines that such units or projects do not meet other requirements of this Act. ``(2) A public housing agency may provide assistance to developments that include units, other than units assisted under this Act (except for units assisted under section 8 hereof) (`mixed income developments'), in the form of a grant, loan, operating assistance, or other form of investment which may be made to-- ``(A) a partnership, a limited liability company, or other legal entity in which the public housing agency or its affiliate is a general partner, managing member, or otherwise participates in the activities of such entity; or ``(B) any entity which grants to the public housing agency the option to purchase the development within 20 years after initial occupancy in accordance with section 42(i)(7) of the Internal Revenue Code of 1986, as amended. ``Units shall be made available in such developments for periods of not less than 20 years, by master contract or by individual lease, for occupancy by low-income and very low- income families referred from time to time by the public housing agency. The number of such units shall be: ``(i) in the same proportion to the total number of units in such development that the total financial commitment provided by the public housing agency bears to the value of the total financial commitment in the development, or ``(ii) not be less than the number of units that could have been developed under the conventional public housing program with the assistance involved, or ``(iii) as may otherwise be approved by the Secretary.

``(3) A mixed income development may elect to have all units subject only to the applicable local real estate taxes, notwithstanding that the low-income units assisted by public housing funds would otherwise be subject to section 6(d) of the Housing Act of 1937. ``(4) If an entity that owns or operates a mixed-income project under this subsection enters into a contract with a public housing agency, the terms of which obligate the entity to operate and maintain a specified number of units in the project as public housing units in accordance with the requirements of this Act for the period required by law, such contractual terms may provide that, if, as a result of a reduction in appropriations under section 9, or any other change in applicable law, the public housing agency is unable to fulfill its contractual obligations with respect to those public housing units, that entity may deviate, under procedures and requirements developed through regulations by the Secretary, from otherwise applicable restrictions under this Act regarding rents, income eligibility, and other areas of public housing management with respect to a portion or all of those public housing units, to the extent necessary to preserve the viability of those units while maintaining the low-income character of the units, to the maximum extent practicable.''. (2) Applicability.--Section 14(q) of the United States Housing Act of 1937, as amended by subsection (a) of this section, shall be effective only with respect to assistance provided from funds made available for fiscal year 1996 or any preceding fiscal year. (3) Applicability to IHAs.-- In accordance with section 201(b)(2) of the United States Housing Act of 1937, the amendment made by this subsection shall apply to public housing developed or operated pursuant to a contract between the Secretary of Housing and Urban Development and an Indian housing authority.

(b) One-for-One Replacement of Public and Indian Housing.-- (1) Extended authority.--Section 1002(d) of Public Law 104- 19 is amended to read as follows:

``(d) Subsections (a), (b), and (c) shall be effective for applications for the demolition, disposition, or conversion to homeownership of public housing approved by the Secretary, and other consolidation and relocation activities of public housing agencies undertaken, on, before, or after September 30, 1995 and before September 30, 1996.''. (2) Section 18(f) of the United States Housing Act of 1937 is amended by adding at the end the following new sentence:

``No one may rely on the preceding sentence as the basis for reconsidering a final order of a court issued, or a settlement approved, by a court.''. (3) Applicability.--In accordance with section 201(b)(2) of the United States Housing Act of 1937, the amendments made by this subsection and by sections 1002 (a), (b), and (c) of Public Law 104-19 shall apply to public housing developed or operated pursuant to a contract between the Secretary of Housing and Urban Development and an Indian housing authority.

conversion of certain public housing to vouchers

Sec. 202. (a) Identification of Units.--Each public housing agency shall identify any public housing developments-- (1) that are on the same or contiguous sites; (2) that total more than 300 dwelling units; (3) that have a vacancy rate of at least 10 percent for dwelling units not in funded, on-schedule modernization programs; (4) identified as distressed housing that the public housing agency cannot assure the long-term viability as public housing through reasonable revitalization, density reduction, or achievement of a broader range of household income; and (5) for which the estimated cost of continued operation and modernization of the developments as public housing exceeds the cost of providing tenant-based assistance under section 8 of the United States Housing Act of 1937 for all families in occupancy, based on appropriate indicators of cost (such as the percentage of total development cost required for modernization).

(b) Implementation and Enforcement.-- (1) Standards for implementation.--The Secretary shall establish standards to permit implementation of this section in fiscal year 1996. (2) Consultation.--Each public housing agency shall consult with the applicable public housing tenants and the unit of general local government in identifying any public housing developments under subsection (a). (3) Failure of phas to comply with subsection (a).--Where the Secretary determines that-- (A) a public housing agency has failed under subsection (a) to identify public housing developments for removal from the inventory of the agency in a timely manner; (B) a public housing agency has failed to identify one or more public housing developments which the Secretary determines should have been identified under subsection (a); or (C) one or more of the developments identified by the public housing agency pursuant to subsection (a) should not, in the determination of the Secretary, have been identified under that subsection; the Secretary may designate the developments to be removed from the inventory of the public housing agency pursuant to this section.

(c) Removal of Units From the Inventories of Public Housing Agencies.-- (1) Each public housing agency shall develop and carry out a plan in conjunction with the Secretary for the removal of public housing units identified under subsection (a) or subsection (b)(3), over a period of up to five years, from the inventory of the public housing agency and the annual contributions contract. The plan shall be approved by the relevant local official as not inconsistent with the Comprehensive Housing Affordability Strategy under title I of the Housing and Community Development Act of 1992, including a description of any disposition and demolition plan for the public housing units.

(2) The Secretary may extend the deadline in paragraph (1) for up to an additional five years where the Secretary makes a determination that the deadline is impracticable. (3) The Secretary shall take appropriate actions to ensure removal of developments identified under subsection (a) or subsection (b)(3) from the inventory of a public housing agency, if the public housing agency fails to adequately develop a plan under paragraph (1), or fails to adequately implement such plan in accordance with the terms of the plan. (4) To the extent approved in appropriations Acts, the Secretary may establish requirements and provide funding under the Urban Revitalization Demonstration program for demolition and disposition of public housing under this section. (5) Notwithstanding any other provision of law, if a development is removed from the inventory of a public housing agency and the annual contributions contract pursuant to paragraph (1), the Secretary may authorize or direct the transfer of-- (A) in the case of an agency receiving assistance under the comprehensive improvement assistance program, any amounts obligated by the Secretary for the modernization of such development pursuant to section 14 of the United States Housing Act of 1937; (B) in the case of an agency receiving public and Indian housing modernization assistance by formula pursuant to section 14 of the United States Housing Act of 1937, any amounts provided to the agency which are attributable pursuant to the formula for allocating such assistance to the development removed from the inventory of that agency; and (C) in the case of an agency receiving assistance for the major reconstruction of obsolete projects, any amounts obligated by the Secretary for the major reconstruction of the development pursuant to section 5 of such Act, to the tenant-based assistance program or appropriate site revitalization of such agency. (6) Cessation of unnecessary spending.--Notwithstanding any other provision of law, if, in the determination of the Secretary, a development meets or is likely to meet the criteria set forth in subsection (a), the Secretary may direct the public housing agency to cease additional spending in connection with the development, except to the extent that additional spending is necessary to ensure decent, safe, and sanitary housing until the Secretary determines or approves an appropriate course of action with respect to such development under this section.

(d) Conversion to Tenant-Based Assistance.-- (1) The Secretary shall make authority available to a public housing agency to provide tenant-based assistance pursuant to section 8 to families residing in any development that is removed from the inventory of the public housing agency and the annual contributions contract pursuant to subsection (b). (2) Each conversion plan under subsection (c) shall-- (A) require the agency to notify families residing in the development, consistent with any guidelines issued by the Secretary governing such notifications, that the development shall be removed from the inventory of the public housing agency and the families shall receive tenant-based

or project-based assistance, and to provide any necessary counseling for families; and (B) ensure that all tenants affected by a determination under this section that a development shall be removed from the inventory of a public housing agency shall be offered tenant-based or project-based assistance and shall be relocated, as necessary, to other decent, safe, sanitary, and affordable housing which is, to the maximum extent practicable, housing of their choice.

(e) In General.-- (1) The Secretary may require a public housing agency to provide such information as the Secretary considers necessary for the administration of this section. (2) As used in this section, the term ``development'' shall refer to a project or projects, or to portions of a project or projects, as appropriate. (3) Section 18 of the United States Housing Act of 1937 shall not apply to the demolition of developments removed from the inventory of the public housing agency under this section.

Sec. 203. (a) ``Take-One, Take-All''.--Section 8(t) of the United States Housing Act of 1937 is hereby repealed.

(b) Exemption From Notice Requirements for the Certificate and Voucher Programs.--Section 8(c) of such Act is amended-- (1) in paragraph (8), by inserting after ``section'' the following: ``(other than a contract for assistance under the certificate or voucher program)''; and (2) in the first sentence of paragraph (9), by striking ``(but not less than 90 days in the case of housing certificates or vouchers under subsection (b) or (o))'' and inserting ``, other than a contract under the certificate or voucher program''.

(c) Endless Lease.--Section 8(d)(1)(B) of such Act is amended-- (1) in clause (ii), by inserting ``during the term of the lease,'' after ``(ii)''; and (2) in clause (iii), by striking ``provide that'' and inserting ``during the term of the lease,''.

(d) Applicability. --The provisions of this section shall be effective for fiscal year 1996 only.

public housing/section 8 moving to work demonstration

Sec. 204. (a) Purpose.--The purpose of this demonstration is to give public housing agencies and the Secretary of Housing and Urban Development the flexibility to design and test various approaches for providing and administering housing assistance that: reduce cost and achieve greater cost effectiveness in Federal expenditures; give incentives to families with children where the head of household is working, seeking work, or is preparing for work by participating in job training, educational programs, or programs that assist people to obtain employment and become economically self- sufficient; and increase housing choices for low-income families.

(b) Program Authority.--The Secretary of Housing and Urban Development shall conduct a demonstration program under this

section beginning in fiscal year 1996 under which up to 30 public housing agencies (including Indian housing authorities) administering the public or Indian housing program and the section 8 housing assistance payments program may be selected by the Secretary to participate. The Secretary shall provide training and technical assistance during the demonstration and conduct detailed evaluations of up to 15 such agencies in an effort to identify replicable program models promoting the purpose of the demonstration. Under the demonstration, notwithstanding any provision of the United States Housing Act of 1937 except as provided in subsection (e), an agency may combine operating assistance provided under section 9 of the United States Housing Act of 1937, modernization assistance provided under section 14 of such Act, and assistance provided under section 8 of such Act for the certificate and voucher programs, to provide housing assistance for low-income families, as defined in section 3(b)(2) of the United States Housing Act of 1937, and services to facilitate the transition to work on such terms and conditions as the agency may propose and the Secretary may approve. (c) Application.--An application to participate in the demonstration-- (1) shall request authority to combine assistance under sections 8, 9, and 14 of the United States Housing Act of 1937; (2) shall be submitted only after the public housing agency provides for citizen participation through a public hearing and, if appropriate, other means; (3) shall include a plan developed by the agency that takes into account comments from the public hearing and any other public comments on the proposed program, and comments from current and prospective residents who would be affected, and that includes criteria for-- (A) families to be assisted, which shall require that at least 75 percent of the families assisted by participating demonstration public housing authorities shall be very low-income families, as defined in section 3(b)(2) of the United States Housing Act of 1937; (B) establishing a reasonable rent policy, which shall be designed to encourage employment and self- sufficiency by participating families, consistent with the purpose of this demonstration, such as by excluding some or all of a family's earned income for purposes of determining rent; (C) continuing to assist substantially the same total number of eligible low-income families as would have been served had the amounts not been combined; (D) maintaining a comparable mix of families (by family size) as would have been provided had the amounts not been used under the demonstration; and (E) assuring that housing assisted under the demonstration program meets housing quality standards established or approved by the Secretary; and (4) may request assistance for training and technical assistance to assist with design of the demonstration and to participate in a detailed evaluation.

(d) Selection.--In selecting among applications, the Secretary shall take into account the potential of each agency to plan and carry out a program under the demonstration, the relative perform

ance by an agency under the public housing management assessment program under section 6(j) of the United States Housing Act of 1937, and other appropriate factors as determined by the Secretary. (e) Applicability of 1937 Act Provisions.-- (1) Section 18 of the United States Housing Act of 1937 shall continue to apply to public housing notwithstanding any use of the housing under this demonstration. (2) Section 12 of such Act shall apply to housing assisted under the demonstration, other than housing assisted solely due to occupancy by families receiving tenant-based assistance.

(f) Effect on Section 8, Operating Subsidies, and Comprehensive Grant Program Allocations.--The amount of assistance received under section 8, section 9, or pursuant to section 14 by a public housing agency participating in the demonstration under this part shall not be diminished by its participation. (g) Records, Reports, and Audits.-- (1) Keeping of records.--Each agency shall keep such records as the Secretary may prescribe as reasonably necessary to disclose the amounts and the disposition of amounts under this demonstration, to ensure compliance with the requirements of this section, and to measure performance. (2) Reports.--Each agency shall submit to the Secretary a report, or series of reports, in a form and at a time specified by the Secretary. Each report shall-- (A) document the use of funds made available under this section; (B) provide such data as the Secretary may request to assist the Secretary in assessing the demonstration; and (C) describe and analyze the effect of assisted activities in addressing the objectives of this part. (3) Access to documents by the secretary.--The Secretary shall have access for the purpose of audit and examination to any books, documents, papers, and records that are pertinent to assistance in connection with, and the requirements of, this section. (4) Access to documents by the comptroller general.--The Comptroller General of the United States, or any of the duly authorized representatives of the Comptroller General, shall have access for the purpose of audit and examination to any books, documents, papers, and records that are pertinent to assistance in connection with, and the requirements of, this section.

(h) Evaluation and Report.-- (1) Consultation with pha and family representatives.--In making assessments throughout the demonstration, the Secretary shall consult with representatives of public housing agencies and residents. (2) Report to congress.--Not later than 180 days after the end of the third year of the demonstration, the Secretary shall submit to the Congress a report evaluating the programs carried out under the demonstration. The report shall also include findings and recommendations for any appropriate legislative action.

(i) Funding for Technical Assistance and Evaluation.--From amounts appropriated for assistance under section 14 of the

United States Housing Act of 1937 for fiscal years 1996, 1997, and 1998, the Secretary may use up to a total of $5,000,000-- (1) to provide, directly or by contract, training and technical assistance-- (A) to public housing agencies that express an interest to apply for training and technical assistance pursuant to subsection (c)(4), to assist them in designing programs to be proposed for the demonstration; and (B) to up to 10 agencies selected to receive training and technical assistance pursuant to subsection (c)(4), to assist them in implementing the approved program; and (2) to conduct detailed evaluations of the activities of the public housing agencies under paragraph (1)(B), directly or by contract.

extension of multifamily housing finance program

Sec. 205. (a) The first sentence of section 542(b)(5) of the Housing and Community Development Act of 1992 (12 U.S.C. 1707 note) is amended by striking ``on not more than 15,000 units over fiscal years 1993 and 1994'' and inserting ``on not more than 7,500 units during fiscal year 1996''. (b) The first sentence of section 542(c)(4) of the Housing and Community Development Act of 1992 (12 U.S.C. 1707 note) is amended by striking ``on not to exceed 30,000 units over fiscal years 1993, 1994, and 1995'' and inserting ``on not more than 12,000 units during fiscal year 1996''.

foreclosure of hud-held mortgages through third parties

Sec. 206. During fiscal year 1996, the Secretary of Housing and Urban Development may delegate to one or more entities the authority to carry out some or all of the functions and responsibilities of the Secretary in connection with the foreclosure of mortgages held by the Secretary under the National Housing Act.

restructuring of the hud multifamily mortgage portfolio through state housing finance agencies

Sec. 207. During fiscal year 1996, the Secretary of Housing and Urban Development may sell or otherwise transfer multifamily mortgages held by the Secretary under the National Housing Act to a State housing finance agency in connection with a program authorized under section 542 (b) or (c) of the Housing and Community Development Act of 1992 without regard to the unit limitations in section 542(b)(5) or 542(c)(4) of such Act.

transfer of section 8 authority

Sec. 208. Section 8 of the United States Housing Act of 1937 is amended by adding the following new subsection at the end:

``(bb) Transfer of Budget Authority.--If an assistance contract under this section, other than a contract for tenant-based assistance, is terminated or is not renewed, or if the contract expires, the Secretary shall, in order to provide continued assistance to eligible families, including eligible families receiving the benefit of the project-based assistance at the time of the termination, transfer any budget authority remaining in the contract to another

contract. The transfer shall be under such terms as the Secretary may prescribe.''.

documentation of multifamily refinancings

Sec. 209. Notwithstanding the 16th paragraph under the item relating to ``administrative provisions'' in title II of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1995 (Public Law 103-327; 108 Stat. 2316), the amendments to section 223(a)(7) of the National Housing Act made by the 15th paragraph of such Act shall be effective during fiscal year 1996 and thereafter.

fha multifamily demonstration authority

Sec. 210. (a) On and after October 1, 1995, and before October 1, 1997, the Secretary of Housing and Urban Development shall initiate a demonstration program with respect to multifamily projects whose owners agree to participate and whose mortgages are insured under the National Housing Act and that are assisted under section 8 of the United States Housing Act of 1937 and whose present section 8 rents are, in the aggregate, in excess of the fair market rent of the locality in which the project is located. These programs shall be designed to test the feasibility and desirability of the goal of ensuring, to the maximum extent practicable, that the debt service and operating expenses, including adequate reserves, attributable to such multifamily projects can be supported with or without mortgage insurance under the National Housing Act and with or without above-market rents and utilizing project-based assistance or, with the consent of the property owner, tenant-based assistance, while taking into account the need for assistance of low- and very low-income families in such projects. In carrying out this demonstration, the Secretary may use arrangements with third parties, under which the Secretary may provide for the assumption by the third parties (by delegation, contract, or otherwise) of some or all of the functions, obligations, and benefits of the Secretary. (1) Goals.--The Secretary of Housing and Urban Development shall carry out the demonstration programs under this section in a manner that-- (A) will protect the financial interests of the Federal Government; (B) will result in significant discretionary cost savings through debt restructuring and subsidy reduction; and (C) will, in the least costly fashion, address the goals of-- (i) maintaining existing housing stock in a decent, safe, and sanitary condition; (ii) minimizing the involuntary displacement of tenants; (iii) restructuring the mortgages of such projects in a manner that is consistent with local housing market conditions; (iv) supporting fair housing strategies; (v) minimizing any adverse income tax impact on property owners; and (vi) minimizing any adverse impact on residential neighborhoods.

In determining the manner in which a mortgage is to be restructured or the subsidy reduced, the Secretary may balance competing goals relating to individual projects in a manner that will further the purposes of this section. (2) Demonstration approaches.--In carrying out the demonstration programs, subject to the appropriation in subsection (f), the Secretary may use one or more of the following approaches: (A) Joint venture arrangements with third parties, under which the Secretary may provide for the assumption by the third parties (by delegation, contract, or otherwise) of some or all of the functions, obligations, and benefits of the Secretary. (B) Subsidization of the debt service of the project to a level that can be paid by an owner receiving an unsubsidized market rent. (C) Renewal of existing project-based assistance contracts where the Secretary shall approve proposed initial rent levels that do not exceed the greater of 120 percent of fair market rents or comparable market rents for the relevant metropolitan market area or at rent levels under a budget-based approach. (D) Nonrenewal of expiring existing project-based assistance contracts and providing tenant-based assistance to previously assisted households.

(b) For purposes of carrying out demonstration programs under subsection (a)-- (1) the Secretary may manage and dispose of multifamily properties owned by the Secretary as of October 1, 1995 and multifamily mortgages held by the Secretary as of October 1, 1995 for properties assisted under section 8 with rents above 110 percent of fair market rents without regard to any other provision of law; and (2) the Secretary may delegate to one or more entities the authority to carry out some or all of the functions and responsibilities of the Secretary in connection with the foreclosure of mortgages held by the Secretary under the National Housing Act.

(c) For purposes of carrying out demonstration programs under subsection (a), subject to such third party consents (if any) as are necessary including but not limited to (i) consent by the Government National Mortgage Association where it owns a mortgage insured by the Secretary; (ii) consent by an issuer under the mortgage-backed securities program of the Association, subject to the responsibilities of the issuer to its security holders and the Association under such program; and (iii) parties to any contractual agreement which the Secretary proposes to modify or discontinue, and subject to the appropriation in subsection (c), the Secretary or one or more third parties designated by the Secretary may take the following actions: (1) Notwithstanding any other provision of law, and subject to the agreement of the project owner, the Secretary or third party may remove, relinquish, extinguish, modify, or agree to the removal of any mortgage, regulatory agreement, project-based assistance contract, use agreement, or restriction that had been imposed or required by the Secretary, including restrictions on distributions of income which the Secretary or

third party determines would interfere with the ability of the project to operate without above market rents. The Secretary or third party may require an owner of a property assisted under the section 8 new construction/substantial rehabilitation program to apply any accumulated residual receipts toward effecting the purposes of this section. (2) Notwithstanding any other provision of law, the Secretary of Housing and Urban Development may enter into contracts to purchase reinsurance, or enter into participations or otherwise transfer economic interest in contracts of insurance or in the premiums paid, or due to be paid, on such insurance to third parties, on such terms and conditions as the Secretary may determine. (3) The Secretary may offer project-based assistance with rents at or below fair market rents for the locality in which the project is located and may negotiate such other terms as are acceptable to the Secretary and the project owner. (4) The Secretary may offer to pay all or a portion of the project's debt service, including payments monthly from the appropriate Insurance Fund, for the full remaining term of the insured mortgage. (5) Notwithstanding any other provision of law, the Secretary may forgive and cancel any FHA-insured mortgage debt that a demonstration program property cannot carry at market rents while bearing full operating costs. (6) For demonstration program properties that cannot carry full operating costs (excluding debt service) at market rents, the Secretary may approve project-based rents sufficient to carry such full operating costs and may offer to pay the full debt service in the manner provided in paragraph (4).

(d) Community and Tenant Input.--In carrying out this section, the Secretary shall develop procedures to provide appropriate and timely notice to officials of the unit of general local government affected, the community in which the project is situated, and the tenants of the project. (e) Limitation on Demonstration Authority.--The Secretary may carry out demonstration programs under this section with respect to mortgages not to exceed 15,000 units. The demonstration authorized under this section shall not be expanded until the reports required under subsection (g) are submitted to the Congress.

(f) Appropriation.--For the cost of modifying loans held or guaranteed by the Federal Housing Administration, as authorized by this subsection (a)(2) and subsection (c), $30,000,000, to remain available until September 30, 1997: Provided, That such costs shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended. (g) Report to Congress.--The Secretary shall submit to the Congress every six months after the date of enactment of this Act a report describing and assessing the programs carried out under the demonstrations. The Secretary shall also submit a final report to the Congress not later than six months after the end of the demonstrations. The reports shall include findings and recommendations for any legislative action appropriate. The reports shall also include a description of the status of each multifamily housing project selected for the demonstrations under this section. The final report may include-- (1) the size of the projects;

(2) the geographic locations of the projects, by State and region; (3) the physical and financial condition of the projects; (4) the occupancy profile of the projects, including the income, family size, race, and ethnic origin of current tenants, and the rents paid by such tenants; (5) a description of actions undertaken pursuant to this section, including a description of the effectiveness of such actions and any impediments to the transfer or sale of multifamily housing projects; (6) a description of the extent to which the demonstrations under this section have displaced tenants of multifamily housing projects; (7) a description of any of the functions performed in connection with this section that are transferred or contracted out to public or private entities or to States; (8) a description of the impact to which the demonstrations under this section have affected the localities and communities where the selected multifamily housing projects are located; and (9) a description of the extent to which the demonstrations under this section have affected the owners of multifamily housing projects.

assessment collection dates for office of federal housing enterprise oversight

Sec. 211. Section 1316(b) of the Housing and Community Development Act of 1992 (12 U.S.C. 4516(b)) is amended by striking paragraph (2) and inserting the following new paragraph:

``(2) Timing of payment.--The annual assessment shall be payable semiannually for each fiscal year, on October 1 and April 1.''.

merger language for assistance for the renewal of expiring section 8 subsidy contracts and annual contributions for assisted housing

Sec. 212. All remaining obligated and unobligated balances in the Renewal of Expiring Section 8 Subsidy Contracts account on September 30, 1995, shall immediately thereafter be transferred to and merged with the obligated and unobligated balances, respectively, of the Annual Contributions for Assisted Housing account.

debt forgiveness

Sec. 213. (a) The Secretary of Housing and Urban Development shall cancel the indebtedness of the Hubbard Hospital Authority of Hubbard, Texas, relating to the public facilities loan for Project Number PFL-TEX-215, issued under title II of the Housing Amendments of 1955. Such hospital authority is relieved of all liability to the Government for the outstanding principal balance on such loan, for the amount of accrued interest on such loan, and for any fees and charges payable in connection with such loan.

(b) The Secretary of Housing and Urban Development shall cancel the indebtedness of the Groveton Texas Hospital Authority relating to the public facilities loan for Project Number TEX-41-PFL0162, issued under title II of the Housing Amendments of

1955. Such hospital authority is relieved of all liability to the Government for the outstanding principal balance on such loan, for the amount of accrued interest on such loan, and for any fees and charges payable in connection with such loan.

(c) <<NOTE: Hepzibah Public Service District. West Virginia. clarifications>> The Secretary of Housing and Urban Development shall cancel the indebtedness of the Hepzibah Public Service District of Hepzibah, West Virginia, relating to the public facilities loan for Project Number WV-46-PFL0031, issued under title II of the Housing Amendments of 1955. Such public service district is relieved of all liability to the Government for the outstanding principal balance on such loan, for the amount of accrued interest on such loan, and for any fees and charges payable in connection with such loan.

Sec. 214. For purposes of Federal law, the Paul Mirabile Center in San Diego, California, including areas within such Center that are devoted to the delivery of supportive services, has been determined to satisfy the ``continuum of care'' requirements of the Department of Housing and Urban Development, and shall be treated as-- (a) consisting solely of residential units that (i) contain sleeping accommodations and kitchen and bathroom facilities, (ii) are located in a building that is used exclusively to facilitate the transition of homeless individuals (within the meaning of section 103 of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11302), as in effect on December 19, 1989) to independent living within 24 months, (iii) are suitable for occupancy, with each cubicle constituting a separate bedroom and residential unit, (iv) are used on other than a transient basis, and (v) shall be originally placed in service on November 1, 1995; and (b) property that is entirely residential rental property, namely, a project for residential rental property.

employment limitations

Sec. 215. (a) By the end of fiscal year 1996 the Department of Housing and Urban Development shall employ no more than eight Assistant Secretaries, notwithstanding section 4(a) of the Department of Housing and Urban Development Act. (b) By the end of fiscal year 1996 the Department of Housing and Urban Development shall employ no more than 77 schedule C and 20 non- career senior executive service employees.

use of funds

Sec. 216. (a) Of the $93,400,000 earmarked in Public Law 101-144 (103 Stat. 850), as amended by Public Law 101-302 (104 Stat. 237), for special projects and purposes, any amounts remaining of the $500,000 made available to Bethlehem House in Highland, California, for site planning and loan acquisition shall instead be made available to the County of San Bernardino in California to assist with the expansion of the Los Padrinos Gang Intervention Program, the Unity Home Domestic Violence Shelter, and San Bernardino Drug Court Program. (b) The amount made available for fiscal year 1995 for the removal of asbestos from an abandoned public school building in

Toledo, Ohio shall be made available for the renovation and rehabilitation of an industrial building at the University of Toledo in Toledo, Ohio.

lead-based paint abatement

Sec. 217. (a) Section 1011 of Title X--Residential Lead-Based Paint Hazard Reduction Act of 1992 is amended as follows: Strike ``priority housing'' wherever it appears in said section and insert ``housing''.

(b) Section 1011(a) shall be amended as follows: At the end of the subsection after the period, insert: ``Grants shall only be made under this section to provide assistance for housing which meets the following criteria-- ``(1) for grants made to assist rental housing, at least 50 percent of the units must be occupied by or made available to families with incomes at or below 50 percent of the area median income level and the remaining units shall be occupied or made available to families with incomes at or below 80 percent of the area median income level, and in all cases the landlord shall give priority in renting units assisted under this section, for not less than 3 years following the completion of lead abatement activities, to families with a child under the age of six years, except that buildings with five or more units may have 20 percent of the units occupied by families with incomes above 80 percent of area median income level; ``(2) for grants made to assist housing owned by owner- occupants, all units assisted with grants under this section shall be the principal residence of families with income at or below 80 percent of the area median income level, and not less than 90 percent of the units assisted with grants under this section shall be occupied by a child under the age of six years or shall be units where a child under the age of six years spends a significant amount of time visiting; and ``(3) notwithstanding paragraphs (1) and (2), Round II grantees who receive assistance under this section may use such assistance for priority housing.''.

extension period for sharing utility cost savings with phas

Sec. 218. Section 9(a)(3)(B)(i) of the United States Housing Act of 1937 is amended by striking ``for a period not to exceed 6 years''.

Sec. 219. The first sentence of section 221(g)(4)(C)(viii) of the National Housing Act is amended by striking ``September 30, 1995'' and inserting in lieu thereof ``September 30, 1996''.

repeal of frost-leland

Sec. 220. Section 415 of the Department of Housing and Urban Development--Independent Agencies Appropriations Act, 1988 (Public Law 100-202; 101 Stat. 1329-213) is repealed.

fha single-family assignment program reform

Sec. 221. (a) Correction to Foreclosure Avoidance Provision.--The penultimate proviso of section 204(a) of the National

Housing Act (12 U.S.C. 1710(a)), as added by section 407(a) of the Balanced Budget Downpayment Act, I (Public Law 104-99), is amended by striking ``special foreclosure'' and inserting in lieu thereof ``special forebearance''. (b) Savings Provision.--(1) Any mortgage for which the mortgagor has applied to the Secretary, before the date of enactment of this Act, for assignment to the Secretary pursuant to section 230(b) of the National Housing Act shall continue to be governed by the provisions of such section, as in effect immediately before enactment of the Balanced Budget Downpayment Act, I.

(2) Section 230(d) of the National Housing Act, as amended by section 407(b) of the Balanced Budget Downpayment Act, I, <<NOTE: 12 USC 1715u.>> is repealed.

(c) Regulations.--(1) Not later than 30 days after the date of enactment of this Act, the Secretary of Housing and Urban Development shall issue interim regulations to implement section 407 of the Balanced Budget Downpayment Act, I, and the amendments to the National Housing Act made by that section.

(2) Section 407(d) of the Balanced Budget Downpayment Act, I, is repealed.

(d) Extension of Reform to Mortgages Originated in Fiscal Year 1996.--Section 407(c) of the Balanced Budget Downpayment Act, I, is amended by striking ``originated before October 1, 1995'' and inserting ``executed before October 1, 1996''.

spending limitations

Sec. 222. (a) None of the funds in this Act may be used by the Secretary to impose any sanction, or penalty because of the enactment of any State or local law or regulation declaring English as the official language. (b) No part of any appropriation contained in this Act shall be used for lobbying activities as prohibited by law. Sec. 223. None of the funds provided in this Act may be used during fiscal year 1996 to investigate or prosecute under the Fair Housing Act (42 U.S.C. 3601, et seq.) any otherwise lawful activity engaged in by one or more persons, including the filing or maintaining of non- frivolous legal action, that is engaged in solely for the purposes of achieving or preventing action by a Government official, entity, or court of competent jurisdiction. Sec. 224. None of the funds provided in this Act many be used to take any enforcement action with respect to a complaint of discrimination under the Fair Housing Act (42 U.S.C. 3601, et seq.) on the basis of familial status and which involves an occupancy standard established by the housing provider except to the extent that it is found that there has been discrimination in contravention of the standards provided in the March 20, 1991 Memorandum from the General Counsel of the Department of Housing and Urban Development to all Regional Counsel or until such time that HUD issues a final rule in accordance with section 553 of title 5, United States Code.

cdbg eligible activities

Sec. 225. Section 105(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 5305(a)) is amended-- (1) in paragraph (4)-- (A) by inserting ``reconstruction,'' after ``removal,''; and

(B) by striking ``acquisition for rehabilitation, and rehabilitation'' and inserting ``acquisition for reconstruction or rehabilitation, and reconstruction or rehabilitation''; (2) in paragraph (13), by striking ``and'' at the end; (3) by striking paragraph (19); (4) in paragraph (24), by striking ``and'' at the end; (5) in paragraph (25), by striking the period at the end and inserting ``; and''; (6) by redesignating paragraphs (20) through (25) as paragraphs (19) through (24), respectively; and (7) by redesignating paragraph (21) (as added by section 1012(f)(3) of the Housing and Community Development Act of 1992) as paragraph (25).

Sec. 226. The Secretary shall award for the community development grants program, as authorized by title I of the Housing and Community Development Act of 1974, as amended (42 U.S.C. 5301), for the State of New York, not more than 35 percent of the funds made available for fiscal year 1996 for grants allocated for any multi-year commitment. The Secretary shall issue proposed and final rulemaking for the requirements of the community development grants program for the State of New York before issuing a Notice of Funding Availability for funds made available for fiscal year 1997.

Sec. 227. All funds allocated for the State of New York for fiscal years 1995 and 1996 under the HOME investment partnerships program, as authorized under title II of the Cranston-Gonzalez National Affordable Housing Act (Public Law 101-625) shall be made available to the Chief Executive Officer of the State, or an entity designated by the Chief Executive Officer, to be used for activities in accordance with the requirements of the HOME investment partnerships program, notwithstanding the memorandum from the General Counsel of the Department of Housing and Urban Development dated March 5, 1996. Sec. 228. (a) The second sentence of section 236(f)(1) of the National Housing Act, as amended by section 405(d)(1) of The Balanced Budget Downpayment Act, I, is amended-- (1) by striking ``or (ii)'' and inserting ``(ii)''; and (2) by striking ``located,'' and inserting: ``located, or (iii) the actual rent (as determined by the Secretary) paid for a comparable unit in comparable unassisted housing in the market area in which the housing assisted under this section is located,''.

(b) The first sentence of section 236(g) of the National Housing Act is amended by inserting the phrase ``on a unit-by-unit basis'' after ``collected''.

technical correction to minimum rent authority

Sec. 229. Section 402(a) of the Balanced Budget Downpayment Act, I (Public Law 104-99), <<NOTE: Ante, p. 40. minimum rent waiver authority>> is amended by inserting after ``as amended,'' the following: ``or section 206(d) of the Housing and Urban-Rural Recovery Act of 1983 (including section 206(d)(5) of such Act),''.

Sec. 230. Notwithstanding section 402(a) of the Balanced Budget Downpayment Act, I (Public Law 104-99), the Secretary of Housing and Urban Development or a public housing agency

(including an Indian housing authority) may waive the minimum rent requirement of that section to provide a transition period for affected families. The term of a waiver approved pursuant to this section may be retroactive, but may not apply for more than three months with respect to any family.

TITLE III

INDEPENDENT AGENCIES

American Battle Monuments Commission

salaries and expenses

For necessary expenses, not otherwise provided for, of the American Battle Monuments Commission, including the acquisition of land or interest in land in foreign countries; purchases and repair of uniforms for caretakers of national cemeteries and monuments outside of the United States and its territories and possessions; rent of office and garage space in foreign countries; purchase (one for replacement only) and hire of passenger motor vehicles; and insurance of official motor vehicles in foreign countries, when required by law of such countries; $20,265,000, to remain available until expended: Provided, <<NOTE: 36 USC 121b.>> That where station allowance has been authorized by the Department of the Army for officers of the Army serving the Army at certain foreign stations, the same allowance shall be authorized for officers of the Armed Forces assigned to the Commission while serving at the same foreign stations, and this appropriation is hereby made available for the payment of such allowance: Provided further, That when traveling on business of the Commission, officers of the Armed Forces serving as members or as Secretary of the Commission may be reimbursed for expenses as provided for civilian members of the Commission: Provided further, <<NOTE: 36 USC 122a.>> That the Commission shall reimburse other Government agencies, including the Armed Forces, for salary, pay, and allowances of personnel assigned to it.

Department of the Treasury

community development financial institutions fund

program account

For grants, loans, and technical assistance to qualifying community development financial institutions, and administrative expenses of the Fund, $45,000,000, to remain available until September 30, 1997: Provided, That of the funds made available under this heading not to exceed $4,000,000 may be used for the cost of direct loans, and not to exceed $400,000 may be used for administrative expenses to carry out the direct loan program: Provided further, That the cost of direct loans, including the cost of modifying such loans, shall be defined as in section 502 of the Congressional Budget Act of 1974: Provided further, That such funds are available to subsidize gross obligations for the principal amount of direct loans not to exceed $28,440,000: Provided further, That none of these funds shall be used to supplement existing resources provided to the Department for activities such as external affairs, general counsel, administration, finance, or office of inspec

tor general: Provided further, That none of these funds shall be available for expenses of an Administrator as defined in section 104 of the Community Development Banking and Financial Institutions Act of 1994 (CDBFI Act): Provided further, That notwithstanding any other provision of law, for purposes of administering the Community Development Financial Institutions Fund, the Secretary of the Treasury shall have all powers and rights of the Administrator of the CDBFI Act and the Fund shall be within the Department of the Treasury.

Consumer Product Safety Commission

salaries and expenses

For necessary expenses of the Consumer Product Safety Commission, including hire of passenger motor vehicles, services as authorized by 5 U.S.C. 3109, but at rates for individuals not to exceed the per diem rate equivalent to the rate for GS-18, purchase of nominal awards to recognize non-Federal officials' contributions to Commission activities, and not to exceed $500 for official reception and representation expenses, $40,000,000.

Corporation for National and Community Service

national and community service programs operating expenses

(including transfer of funds)

For necessary expenses for the Corporation for National and Community Service (referred to in the matter under this heading as the ``Corporation'') in carrying out programs, activities, and initiatives under the National and Community Service Act of 1990 (referred to in the matter under this heading as the ``Act'') (42 U.S.C. 12501 et seq.), $400,500,000, of which $265,000,000 shall be available for obligation from September 1, 1996, through September 30, 1997: Provided, That not more than $25,000,000 shall be available for administrative expenses authorized under section 501(a)(4) of the Act (42 U.S.C. 12671(a)(4)): Provided further, That not more than $2,500 shall be for official reception and representation expenses: Provided further, That not more than $59,000,000, to remain available without fiscal year limitation, shall be transferred to the National Service Trust account for educational awards authorized under subtitle D of title I of the Act (42 U.S.C. 12601 et seq.): Provided further, That not more than $215,000,000 of the amount provided under this heading shall be available for grants under the National Service Trust program authorized under subtitle C of title I of the Act (42 U.S.C. 12571 et seq.) (relating to activities including the Americorps program), of which not more than $40,000,000 may be used to administer, reimburse or support any national service program authorized under section 121(d)(2) of such Act (42 U.S.C. 12581(d)(2)): Provided further, That not more than $5,500,000 of the funds made available under this heading shall be made available for the Points of Light Foundation for activities authorized under title III of the Act (42 U.S.C. 12661 et seq.): Provided further, That no funds shall be available for national service programs run by Federal agencies authorized under section 121(b) of such Act (42 U.S.C. 12581(b)): Provided further, That, to the maximum extent feasible, funds appropriated in the

preceding proviso shall be provided in a manner that is consistent with the recommendations of peer review panels in order to ensure that priority is given to programs that demonstrate quality, innovation, replicability, and sustainability: Provided further, That not more than $18,000,000 of the funds made available under this heading shall be available for the Civilian Community Corps authorized under subtitle E of title I of the Act (42 U.S.C. 12611 et seq.): Provided further, That not more than $43,000,000 shall be available for school-based and community-based service-learning programs authorized under subtitle B of title I of the Act (41 U.S.C. 12521 et seq.): Provided further, That not more than $30,000,000 shall be available for quality and innovation activities authorized under subtitle H of title I of the Act (42 U.S.C. 12853 et seq.): Provided further, That not more than $5,000,000 shall be available for audits and other evaluations authorized under section 179 of the Act (42 U.S.C. 12639), of which up to $500,000 shall be available for a study by the National Academy of Public Administration on the structure, organization, and management of the Corporation and activities supported by the Corporation, including an assessment of the quality, innovation, replicability, and sustainability without Federal funds of such activities, and the Federal and non-Federal cost of supporting participants in community service activities: Provided further, That no funds from any other appropriation, or from funds otherwise made available to the Corporation, shall be used to pay for personnel compensation and benefits, travel, or any other administrative expense for the Board of Directors, the Office of the Chief Executive Officer, the Office of the Managing Director, the Office of the Chief Financial Officer, the Office of National and Community Service Programs, the Civilian Community Corps, or any field office or staff of the Corporation working on the National and Community Service or Civilian Community Corps programs: Provided further, That to the maximum extent practicable, the Corporation shall increase significantly the level of matching funds and in-kind contributions provided by the private sector, shall expand significantly the number of educational awards provided under subtitle D of title I, and shall reduce the total Federal cost per participant in all programs: Provided further, That prior to September 30, 1996, the General Accounting Office shall report to the Congress the results of a study of State commission programs which evaluates the cost per participant, the commissions' ability to oversee the programs, and other relevant considerations.

sense of congress

It is the sense of the Congress that accounting for taxpayers' funds must be a top priority for all Federal agencies and Government corporations. The Congress is deeply concerned about the findings of the recent audit of the Corporation for National and Community Service required under the Government Corporation Control Act of 1945. The Congress urges the President to expeditiously nominate a qualified Chief Financial Officer for the Corporation. Further, to the maximum extent practicable and as quickly as possible, the Corporation should implement the recommendations of the independent auditors contracted for by the Corporation's Inspector General, as well as the Chief Financial Officer, to improve the financial management of taxpayers' funds. Should the Chief Financial Officer determine that additional resources are needed

to implement these recommendations, the Corporation should submit a reprogramming proposal for up to $3,000,000 to carry out reforms of the financial management system.

office of inspector general

For necessary expenses of the Office of Inspector General in carrying out the provisions of the Inspector General Act of 1978, $2,000,000. Court of Veterans Appeals

salaries and expenses

For necessary expenses for the operation of the United States Court of Veterans Appeals as authorized by 38 U.S.C. sections 7251-7292, $9,000,000, of which not to exceed $678,000, to remain available until September 30, 1997, shall be available for the purpose of providing financial assistance as described, and in accordance with the process and reporting procedures set forth, under this head in Public Law 102- 229.

Department of Defense--Civil Cemeterial Expenses, Army

salaries and expenses

For necessary expenses, as authorized by law, for maintenance, operation, and improvement of Arlington National Cemetery and Soldiers' and Airmen's Home National Cemetery, and not to exceed $1,000 for official reception and representation expenses; $11,946,000, to remain available until expended.

Environmental Protection Agency

science and technology

For science and technology, including research and development activities, which shall include research and development activities under the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA), as amended; necessary expenses for personnel and related costs and travel expenses, including uniforms, or allowances therefore, as authorized by 5 U.S.C. 5901-5902; services as authorized by 5 U.S.C. 3109, but at rates for individuals not to exceed the per diem rate equivalent to the rate for GS-18; procurement of laboratory equipment and supplies; other operating expenses in support of research and development; construction, alteration, repair, rehabilitation and renovation of facilities, not to exceed $75,000 per project; $525,000,000, which shall remain available until September 30, 1997.

environmental programs and management

For environmental programs and management, including necessary expenses, not otherwise provided for, for personnel and related costs and travel expenses, including uniforms, or allowances therefore, as authorized by 5 U.S.C. 5901-5902; services as authorized by 5 U.S.C. 3109, but at rates for individuals not to exceed the per diem rate equivalent to the rate for GS-18; hire of passenger motor vehicles; hire, maintenance, and operation of aircraft; purchase of reprints; library memberships in societies or associations

which issue publications to members only or at a price to members lower than to subscribers who are not members; construction, alteration, repair, rehabilitation, and renovation of facilities, not to exceed $75,000 per project; and not to exceed $6,000 for official reception and representation expenses; $1,677,300,000, which shall remain available until September 30, 1997: Provided, That, notwithstanding any other provision of law, for this fiscal year and hereafter, an industrial discharger that is a pharmaceutical manufacturing facility and discharged to the Kalamazoo Water Reclamation Plant (an advanced wastewater treatment plant with activated carbon) prior to the date of enactment of this Act may be exempted from categorical pretreatment standards under section 307(b) of the Federal Water Pollution Control Act, as amended, if the following conditions are met: (1) the owner or operator of the Kalamazoo Water Reclamation Plant applies to the State of Michigan for an exemption for such industrial discharger, (2) the State or Administrator, as applicable, approves such exemption request based upon a determination that the Kalamazoo Water Reclamation Plant will provide treatment and pollution removal equivalent to or better than that which would be required through a combination of pretreatment by such industrial discharger and treatment by the Kalamazoo Water Reclamation Plant in the absence of the exemption, and (3) compliance with paragraph (2) is addressed by the provisions and conditions of a permit issued to the Kalamazoo Water Reclamation Plant under section 402 of such Act, and there exists an operative financial contract between the City of Kalamazoo and the industrial user and an approved local pretreatment program, including a joint monitoring program and local controls to prevent against interference and pass through.

For necessary expenses of the Office of Inspector General in carrying out the provisions of the Inspector General Act of 1978, as amended, and for construction, alteration, repair, rehabilitation, and renovation of facilities, not to exceed $75,000 per project, $28,500,000.

For construction, repair, improvement, extension, alteration, and purchase of fixed equipment or facilities of, or use by, the Environmental Protection Agency, $110,000,000, to remain available until expended.

hazardous substance superfund

(including transfer of funds)

For necessary expenses to carry out the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (CERCLA), as amended, including sections 111 (c)(3), (c)(5), (c)(6), and (e)(4) (42 U.S.C. 9611), and for construction, alteration, repair, rehabilitation, and renovation of facilities, not to exceed $75,000 per project; not to exceed $1,313,400,000, to remain available until expended, consisting of $1,063,400,000 as authorized by section 517(a) of the Superfund Amendments and Reauthorization Act of

1986 (SARA), as amended by Public Law 101-508 (of which, $100,000,000 shall not become available until September 1, 1996), and $250,000,000 as a payment from general revenues to the Hazardous Substance Superfund as authorized by section 517(b) of SARA, as amended by Public Law 101-508: Provided, That funds appropriated under this heading may be allocated to other Federal agencies in accordance with section 111(a) of CERCLA: Provided further, That $11,000,000 of the funds appropriated under this heading shall be transferred to the Office of Inspector General appropriation to remain available until September 30, 1996: Provided further, That notwithstanding section 111(m) of CERCLA or any other provision of law, not to exceed $59,000,000 of the funds appropriated under this heading shall be available to the Agency for Toxic Substances and Disease Registry to carry out activities described in sections 104(i), 111(c)(4), and 111(c)(14) of CERCLA and section 118(f) of the Superfund Amendments and Reauthorization Act of 1986: Provided further, That none of the funds appropriated under this heading shall be available for the Agency for Toxic Substances and Disease Registry to issue in excess of 40 toxicological profiles pursuant to section 104(i) of CERCLA during fiscal year 1996: Provided further, That none of the funds made available under this heading may be used by the Environmental Protection Agency to propose for listing or to list any additional facilities on the National Priorities List established by section 105 of the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), as amended (42 U.S.C. 9605), unless the Administrator receives a written request to propose for listing or to list a facility from the Governor of the State in which the facility is located, or unless legislation to reauthorize CERCLA is enacted.

leaking underground storage tank trust fund

(including transfer of funds)

For necessary expenses to carry out leaking underground storage tank cleanup activities authorized by section 205 of the Superfund Amendments and Reauthorization Act of 1986, and for construction, alteration, repair, rehabilitation, and renovation of facilities, not to exceed $75,000 per project, $45,827,000, to remain available until expended: Provided, That no more than $7,000,000 shall be available for administrative expenses: Provided further, That $500,000 shall be transferred to the Office of Inspector General appropriation to remain available until September 30, 1996.

oil spill response

(including transfer of funds)

For expenses necessary to carry out the Environmental Protection Agency's responsibilities under the Oil Pollution Act of 1990, $15,000,000, to be derived from the Oil Spill Liability trust fund, and to remain available until expended: Provided, That not more than $8,000,000 of these funds shall be available for administrative expenses.

state and tribal assistance grants

For environmental programs and infrastructure assistance, including capitalization grants for State revolving funds and performance partnership grants, $2,813,000,0 \3\ to remain available until expended, of which $1,848,500,000 shall be for making capitalization grants for State revolving funds to support water infrastructure financing; $100,000,000 for architectural, engineering, design, construction and related activities in connection with the construction of high priority water and wastewater facilities in the area of the United States-Mexico Border, after consultation with the appropriate border commission; $50,000,000 for grants to the State of Texas, which shall be matched by an equal amount of State funds from State resources, for the purpose of improving wastewater treatment for colonias; $15,000,000 for grants to the State of Alaska, subject to an appropriate cost share as determined by the Administrator, to address wastewater infrastructure needs of rural and Alaska Native villages; and $141,500,000 for making grants for the construction of wastewater treatment facilities and the development of groundwater in accordance with the terms and conditions specified for such grants in the Conference Reports and statements of the managers accompanying H.R. 2099 and this Act: Provided, That beginning in fiscal year 1996 and each fiscal year thereafter, and notwithstanding any other provision of law, the Administrator is authorized to make grants annually from funds appropriated under this heading, subject to such terms and conditions as the Administrator shall establish, to any State or federally recognized Indian tribe for multimedia or single media pollution prevention, control and abatement and related environmental activities at the request of the Governor or other appropriate State official or the tribe: Provided further, That from funds appropriated under this heading, the Administrator may make grants to federally recognized Indian governments for the development of multimedia environmental programs: Provided further, That of the $1,848,500,000 for capitalization grants for State revolving funds to support water infrastructure financing, $500,000,000 shall be for drinking water State revolving funds, but if no drinking water State revolving fund legislation is enacted by August 1, 1996, these funds shall immediately be available for making capitalization grants under title VI of the Federal Water Pollution Control Act, as amended: Provided further, That of the funds made available in Public Law 103-327 and in Public Law 103-124 for capitalization grants for State revolving funds to support water infrastructure financing, $225,000,000 shall be made available for capitalization grants for State revolving funds under title VI of the Federal Water Pollution Control Act, as amended, if no drinking water State revolving fund legislation is enacted by August 1, 1996: Provided further, That of the funds made available under this heading for capitalization grants for State Revolving Funds under title VI of the Federal Water Pollution Control Act, as amended, $50,000,000 shall be for wastewater treatment in impoverished communities pursuant to section 102(d) of H.R. 961 as approved by the United States House of Representatives on May 16, 1995: Provided further, <<NOTE: 33 USC 1281 note.>> That of the funds appropriated in the Construction Grants and Water Infrastructure/State Revolving Funds accounts since the appropria

tion for the fiscal year ending September 30, 1992, and hereafter, for making grants for wastewater treatment works construction projects, portions may be provided by the recipients to States for managing construction grant activities, on condition that the States agree to reimburse the recipients from State funding sources: Provided further, That the funds made available in Public Law 103-327 for a grant to the City of Mt. Arlington, New Jersey, in accordance with House Report 103- 715, shall be available for a grant to that city for water and sewer improvements. --------------------------------------------------------------------------- \3\ Remainder of figure missing, complete figure probably should read ``$2,813,000,000''.

administrative provisions

Sec. 301. None of the funds provided in this Act may be used within the Environmental Protection Agency for any final action by the Administrator or her delegate for signing and publishing for promulgation of a rule concerning any new standard for radon in drinking water. Sec. 302. None of the funds provided in this Act may be used during fiscal year 1996 to sign, promulgate, implement or enforce the requirement proposed as ``Regulation of Fuels and Fuel Additives: Individual Foreign Refinery Baseline Requirements for Reformulated Gasoline'' at volume 59 of the Federal Register at pages 22800 through 22814. Sec. 303. None of the funds appropriated under this Act may be used to implement the requirements of section 186(b)(2), section 187(b) or section 211(m) of the Clean Air Act (42 U.S.C. 7512(b)(2), 7512a(b), or 7545(m)) with respect to any moderate nonattainment area in which the average daily winter temperature is below 0 degrees Fahrenheit. The preceding sentence shall not be interpreted to preclude assistance from the Environmental Protection Agency to the State of Alaska to make progress toward meeting the carbon monoxide standard in such areas and to resolve remaining issues regarding the use of oxygenated fuels in such areas. Sec. 304. Notwithstanding any other provision of law, the Environmental Protection Agency shall: (1) transfer all real property acquired in Bay City, Michigan, for the creation of the Center for Ecology, Research and Training (CERT) to the City of Bay City or other local public or municipal entity; and (2) make a grant in fiscal year 1996 to the recipient of the property of not less than $3,000,000 from funds previously appropriated for the CERT project for the purpose of environmental remediation and rehabilitation of real property included in the boundaries of the CERT project. The disposition of property shall be by donation or no-cost transfer and shall be made to the City of Bay City, Michigan or other local public or municipal entity.

Further, notwithstanding any other provision of law, the agency shall have the authority to demolish or dispose of any improvements on such real property, or to donate, sell, or transfer any personal property or improvements on such real property to members of the general public, by auction or public sale, and to apply any funds received to costs related to the transfer of the real property authorized hereunder.

Executive Office of the President

office of science and technology policy

For necessary expenses of the Office of Science and Technology Policy, in carrying out the purposes of the National Science and Technology Policy, Organization, and Priorities Act of 1976 (42 U.S.C. 6601 and 6671), hire of passenger motor vehicles, services as authorized by 5 U.S.C. 3109, not to exceed $2,500 for official reception and representation expenses, and rental of conference rooms in the District of Columbia, $4,981,000: Provided, That the Office of Science and Technology Policy shall reimburse other agencies for not less than one- half of the personnel compensation costs of individuals detailed to it.

council on environmental quality and office of environmental quality

For necessary expenses to continue functions assigned to the Council on Environmental Quality and Office of Environmental Quality pursuant to the National Environmental Policy Act of 1969, the Environmental Improvement Act of 1970 and Reorganization Plan No. 1 of 1977, $2,150,000.

Federal Emergency Management Agency

disaster relief

For necessary expenses in carrying out the functions of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), $222,000,000, to remain available until expended.

disaster assistance direct loan program account

For the cost of direct loans, $2,155,000, as authorized by section 319 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.): Provided, That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974, as amended: Provided further, That these funds are available to subsidize gross obligations for the principal amount of direct loans not to exceed $25,000,000. In addition, for administrative expenses to carry out the direct loan program, $95,000.

salaries and expenses

For necessary expenses, not otherwise provided for, including hire and purchase of motor vehicles (31 U.S.C. 1343); uniforms, or allowances therefor, as authorized by 5 U.S.C. 5901-5902; services as authorized by 5 U.S.C. 3109, but at rates for individuals not to exceed the per diem rate equivalent to the rate for GS-18; expenses of attendance of cooperating officials and individuals at meetings concerned with the work of emergency preparedness; transportation in connection with the continuity of Government programs to the same extent and in the same manner as permitted the Secretary of a Military Department under 10 U.S.C. 2632; and not to exceed $2,500 for official reception and representation expenses; $168,900,000.

office of the inspector general

For necessary expenses of the Office of the Inspector General in carrying out the provisions of the Inspector General Act of 1978, as amended, $4,673,000.

emergency management planning and assistance

For necessary expenses, not otherwise provided for, to carry out activities under the National Flood Insurance Act of 1968, as amended, and the Flood Disaster Protection Act of 1973, as amended (42 U.S.C. 4001 et seq.), the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.), the Earthquake Hazards Reduction Act of 1977, as amended (42 U.S.C. 7701 et seq.), the Federal Fire Prevention and Control Act of 1974, as amended (15 U.S.C. 2201 et seq.), the Defense Production Act of 1950, as amended (50 U.S.C. App. 2061 et seq.), sections 107 and 303 of the National Security Act of 1947, as amended (50 U.S.C. 404-405), and Reorganization Plan No. 3 of 1978, $203,044,000.

emergency food and shelter program

Notwithstanding any other provision of law, for fiscal year 1996, there is hereby appropriated a total of $100,000,000 to the Federal Emergency Management Agency to carry out an emergency food and shelter program pursuant to title III of Public Law 100-77, as amended: Provided, That total administrative costs shall not exceed three and one-half per centum of the total appropriation.

national flood insurance fund

For activities under the National Flood Insurance Act of 1968, the Flood Disaster Protection Act of 1973, and the National Flood Insurance Reform Act of 1994, not to exceed $20,562,000 for salaries and expenses associated with flood mitigation and flood insurance operations, and not to exceed $70,464,000 for flood mitigation, including up to $12,000,000 for expenses under section 1366 of the National Flood Insurance Act of 1968, as amended, which amount shall be available until September 30, 1997. In fiscal year 1996, no funds in excess of (1) $47,000,000 for operating expenses, (2) $292,526,000 for agents' commissions and taxes, and (3) $3,500,000 for interest on Treasury borrowings shall be available from the National Flood Insurance Fund without prior notice to the Committees on Appropriations.

administrative provision

The Director of the Federal Emergency Management Agency shall promulgate through rulemaking a methodology for assessment and collection of fees to be assessed and collected beginning in fiscal year 1996 applicable to persons subject to the Federal Emergency Management Agency's radiological emergency preparedness regulations. The aggregate charges assessed pursuant to this section during fiscal year 1996 shall approximate, but not be less than, 100 per centum of the amounts anticipated by the Federal Emergency Management Agency to be obligated for its radiological emergency preparedness program for such fiscal year. The methodology for assessment and collection of fees shall be fair and equitable,

and shall reflect the full amount of costs of providing radiological emergency planning, preparedness, response and associated services. Such fees will be assessed in a manner that reflects the use of agency resources for classes of regulated persons and the administrative costs of collecting such fees. Fees received pursuant to this section shall be deposited in the general fund of the Treasury as offsetting receipts. Assessment and collection of such fees are only authorized during fiscal year 1996.

General Services Administration

consumer information center

For necessary expenses of the Consumer Information Center, including services authorized by 5 U.S.C. 3109, $2,061,000, to be deposited into the Consumer Information Center Fund: Provided, That the appropriations, revenues and collections deposited into the fund shall be available for necessary expenses of Consumer Information Center activities in the aggregate amount of $7,500,000. Administrative expenses of the Consumer Information Center in fiscal year 1996 shall not exceed $2,602,000. Appropriations, revenues, and collections accruing to this fund during fiscal year 1996 in excess of $7,500,000 shall remain in the fund and shall not be available for expenditure except as authorized in appropriations Acts.

Department of Health and Human Services

office of consumer affairs

For necessary expenses of the Office of Consumer Affairs, including services authorized by 5 U.S.C. 3109, $1,800,000: Provided, That notwithstanding any other provision of law, that Office may accept and deposit to this account, during fiscal year 1996, gifts for the purpose of defraying its costs of printing, publishing, and distributing consumer information and educational materials; may expend up to $1,110,000 of those gifts for those purposes, in addition to amounts otherwise appropriated; and the balance shall remain available for expenditure for such purposes to the extent authorized in subsequent appropriations Acts: Provided further, That none of the funds provided under this heading may be made available for any other activities within the Department of Health and Human Services.

National Aeronautics and Space Administration

human space flight

For necessary expenses, not otherwise provided for, in the conduct and support of human space flight research and development activities, including research; development; operations; services; maintenance; construction of facilities including repair, rehabilitation, and modification of real and personal property, and acquisition or condemnation of real property, as authorized by law; space flight, spacecraft control and communications activities including operations, production, and services; and purchase, lease, charter, maintenance, and operation of mission and administrative aircraft; $5,456,600,000, to remain available until September 30, 1997.

For necessary expenses, not otherwise provided for, for the conduct and support of science, aeronautics, and technology research and development activities, including research; development; operations; services; maintenance; construction of facilities including repair, rehabilitation and modification of real and personal property, and acquisition or condemnation of real property, as authorized by law; space flight, spacecraft control and communications activities including operations, production, and services; and purchase, lease, charter, maintenance, and operation of mission and administrative aircraft; $5,928,900,000, to remain available until September 30, 1997.

For necessary expenses, not otherwise provided for, in carrying out mission support for human space flight programs and science, aeronautical, and technology programs, including research operations and support; space communications activities including operations, production, and services; maintenance; construction of facilities including repair, rehabilitation, and modification of facilities, minor construction of new facilities and additions to existing facilities, facility planning and design, environmental compliance and restoration, and acquisition or condemnation of real property, as authorized by law; program management; personnel and related costs, including uniforms or allowances therefor, as authorized by law (5 U.S.C. 5901-5902); travel expenses; purchase, lease, charter, maintenance, and operation of mission and administrative aircraft; not to exceed $35,000 for official reception and representation expenses; and purchase (not to exceed thirty-three for replacement only) and hire of passenger motor vehicles; $2,502,200,000, to remain available until September 30, 1997.

office of inspector general

For necessary expenses of the Office of the Inspector General in carrying out the provisions of the Inspector General Act of 1978, as amended, $16,000,000.

administrative provisions

(including transfer of funds)

Notwithstanding the limitation on the availability of funds appropriated for ``Human space flight'', ``Science, aeronautics and technology'', or ``Mission support'' by this appropriations Act, when any activity has been initiated by the incurrence of obligations for construction of facilities as authorized by law, the amount available for such activity shall remain available until expended. This provision does not apply to the amounts appropriated in ``Mission support'' pursuant to the authorization for repair, rehabilitation and modification of facilities, minor construction of new facilities and additions to existing facilities, and facility planning and design. Notwithstanding the limitation on the availability of funds appropriated for ``Human space flight'', ``Science, aeronautics and technology'', or ``Mission support'' by this appropriations Act, the amounts appropriated for construction of facilities shall remain available until September 30, 1998.

Notwithstanding the limitation on the availability of funds appropriated for ``Mission support'' and ``Office of Inspector General'', amounts made available by this Act for personnel and related costs and travel expenses of the National Aeronautics and Space Administration shall remain available until September 30, 1996 and may be used to enter into contracts for training, investigations, cost associated with personnel relocation, and for other services, to be provided during the next fiscal year. The unexpired balances of prior appropriations to NASA for activities for which funds are provided under this Act may be transferred to the new account established for the appropriation that provides funds for such activity under this Act. Balances so transferred may be merged with funds in the newly established account and thereafter may be accounted for as one fund to be available for the same purposes and under the same terms and conditions. Upon the determination by the Administrator that such action is necessary, the Administrator may, with the approval of the Office of Management and Budget, transfer not to exceed $50,000,000 of funds made available in this Act to the National Aeronautics and Space Administration between such appropriations or any subdivision thereof, to be merged with and to be available for the same purposes, and for the same time period, as the appropriation to which transferred: Provided, That such authority to transfer may not be used unless for higher priority items, based on unforeseen requirements, than those for which originally appropriated: Provided further, That the Administrator of the National Aeronautics and Space Administration shall notify the Congress promptly of all transfers made pursuant to this authority.

Notwithstanding section 202 of Public Law 104-99, <<NOTE: Ante, p. 38.>> section 212 of Public Law 104-99 shall remain in effect as if enacted as part of this Act.

Within its Mission to Planet Earth program, NASA is urged to fund Phase A studies for a radar satellite initiative.

National Credit Union Administration

central liquidity facility

During fiscal year 1996, gross obligations of the Central Liquidity Facility for the principal amount of new direct loans to member credit unions as authorized by the National Credit Union Central Liquidity Facility Act (12 U.S.C. 1795) shall not exceed $600,000,000: Provided, That administrative expenses of the Central Liquidity Facility in fiscal year 1996 shall not exceed $560,000. National Science Foundation

research and related activities

For necessary expenses in carrying out the purposes of the National Science Foundation Act of 1950, as amended (42 U.S.C. 1861-1875), and the Act to establish a National Medal of Science (42 U.S.C. 1880-1881); services as authorized by 5 U.S.C. 3109; maintenance and operation of aircraft and purchase of flight services for research support; acquisition of aircraft; $2,314,000,000, of which not to exceed $235,000,000 shall remain available until expended for Polar research and operations support, and for

reimbursement to other Federal agencies for operational and science support and logistical and other related activities for the United States Antarctic program; the balance to remain available until September 30, 1997: Provided, That receipts for scientific support services and materials furnished by the National Research Centers and other National Science Foundation supported research facilities may be credited to this appropriation: Provided further, That to the extent that the amount appropriated is less than the total amount authorized to be appropriated for included program activities, all amounts, including floors and ceilings, specified in the authorizing Act for those program activities or their subactivities shall be reduced proportionally.

major research equipment

For necessary expenses in carrying out major construction projects, and related expenses, pursuant to the purposes of the National Science Foundation Act of 1950, as amended (42 U.S.C. 1861-1875), $70,000,000, to remain available until expended.

academic research infrastructure

For necessary expenses in carrying out an academic research infrastructure program pursuant to the purposes of the National Science Foundation Act of 1950, as amended (42 U.S.C. 1861-1875), including services as authorized by 5 U.S.C. 3109 and rental of conference rooms in the District of Columbia, $100,000,000, to remain available until September 30, 1997.

education and human resources

For necessary expenses in carrying out science and engineering education and human resources programs and activities pursuant to the purposes of the National Science Foundation Act of 1950, as amended (42 U.S.C. 1861-1875), including services as authorized by 5 U.S.C. 3109 and rental of conference rooms in the District of Columbia, $599,000,000, to remain available until September 30, 1997: Provided, That to the extent that the amount of this appropriation is less than the total amount authorized to be appropriated for included program activities, all amounts, including floors and ceilings, specified in the authorizing Act for those program activities or their subactivities shall be reduced proportionally.

salaries and expenses

For necessary salaries and expenses in carrying out the purposes of the National Science Foundation Act of 1950, as amended (42 U.S.C. 1861- 1875); services authorized by 5 U.S.C. 3109; hire of passenger motor vehicles; not to exceed $9,000 for official reception and representation expenses; uniforms or allowances therefor, as authorized by law (5 U.S.C. 5901-5902); rental of conference rooms in the District of Columbia; reimbursement of the General Services Administration for security guard services; $127,310,000: Provided, That contracts may be entered into under salaries and expenses in fiscal year 1996 for maintenance and operation of facilities, and for other services, to be provided during the next fiscal year.

For necessary expenses of the Office of Inspector General in carrying out the provisions of the Inspector General Act of 1978, as amended, $4,490,000, to remain available until September 30, 1997.

national science foundation headquarters relocation

For necessary support of the relocation of the National Science Foundation, $5,200,000: Provided, That these funds shall be used to reimburse the General Services Administration for services and related acquisitions in support of relocating the National Science Foundation.

Neighborhood Reinvestment Corporation

payment to the neighborhood reinvestment corporation

For payment to the Neighborhood Reinvestment Corporation for use in neighborhood reinvestment activities, as authorized by the Neighborhood Reinvestment Corporation Act (42 U.S.C. 8101-8107), $38,667,000.

Selective Service System

salaries and expenses

For necessary expenses of the Selective Service System, including expenses of attendance at meetings and of training for uniformed personnel assigned to the Selective Service System, as authorized by law (5 U.S.C. 4101-4118) for civilian employees; and not to exceed $1,000 for official reception and representation expenses; $22,930,000: Provided, That during the current fiscal year, the President may exempt this appropriation from the provisions of 31 U.S.C. 1341, whenever he deems such action to be necessary in the interest of national defense: Provided further, That none of the funds appropriated by the Act may be expended for or in connection with the induction of any person into the Armed Forces of the United States.

TITLE IV

CORPORATIONS

Corporations and agencies of the Department of Housing and Urban Development which are subject to the Government Corporation Control Act, as amended, are hereby authorized to make such expenditures, within the limits of funds and borrowing authority available to each such corporation or agency and in accord with law, and to make such contracts and commitments without regard to fiscal year limitations as provided by section 104 of the Act as may be necessary in carrying out the programs set forth in the budget for 1996 for such corporation or agency except as hereinafter provided: Provided, That collections of these corporations and agencies may be used for new loan or mortgage purchase commitments only to the extent expressly provided for in this Act (unless such loans are in support of other forms of assistance provided for in this or prior appropriations Acts), except that this proviso

shall not apply to the mortgage insurance or guaranty operations of these corporations, or where loans or mortgage purchases are necessary to protect the financial interest of the United States Government. Resolution Trust Corporation

office of inspector general

For necessary expenses of the Office of Inspector General in carrying out the provisions of the Inspector General Act of 1978, as amended, $11,400,000. TITLE V

GENERAL PROVISIONS

Sec. 501. Where appropriations in titles I, II, and III of this Act are expendable for travel expenses and no specific limitation has been placed thereon, the expenditures for such travel expenses may not exceed the amounts set forth therefor in the budget estimates submitted for the appropriations: Provided, That this section shall not apply to travel performed by uncompensated officials of local boards and appeal boards of the Selective Service System; to travel performed directly in connection with care and treatment of medical beneficiaries of the Department of Veterans Affairs; to travel performed in connection with major disasters or emergencies declared or determined by the President under the provisions of the Robert T. Stafford Disaster Relief and Emergency Assistance Act; to travel performed by the Offices of Inspector General in connection with audits and investigations; or to payments to interagency motor pools where separately set forth in the budget schedules: Provided further, That if appropriations in titles I, II, and III exceed the amounts set forth in budget estimates initially submitted for such appropriations, the expenditures for travel may correspondingly exceed the amounts therefor set forth in the estimates in the same proportion. Sec. 502. Appropriations and funds available for the administrative expenses of the Department of Housing and Urban Development and the Selective Service System shall be available in the current fiscal year for purchase of uniforms, or allowances therefor, as authorized by law (5 U.S.C. 5901-5902); hire of passenger motor vehicles; and services as authorized by 5 U.S.C. 3109. Sec. 503. Funds of the Department of Housing and Urban Development subject to the Government Corporation Control Act or section 402 of the Housing Act of 1950 shall be available, without regard to the limitations on administrative expenses, for legal services on a contract or fee basis, and for utilizing and making payment for services and facilities of Federal National Mortgage Association, Government National Mortgage Association, Federal Home Loan Mortgage Corporation, Federal Financing Bank, Resolution Trust Corporation, Federal Reserve banks or any member thereof, Federal Home Loan banks, and any insured bank within the meaning of the Federal Deposit Insurance Corporation Act, as amended (12 U.S.C. 1811-1831). Sec. 504. No part of any appropriation contained in this Act shall remain available for obligation beyond the current fiscal year unless expressly so provided herein. Sec. 505. No funds appropriated by this Act may be expended--

(1) pursuant to a certification of an officer or employee of the United States unless-- (A) such certification is accompanied by, or is part of, a voucher or abstract which describes the payee or payees and the items or services for which such expenditure is being made, or (B) the expenditure of funds pursuant to such certification, and without such a voucher or abstract, is specifically authorized by law; and (2) unless such expenditure is subject to audit by the General Accounting Office or is specifically exempt by law from such audit.

Sec. 506. None of the funds provided in this Act to any department or agency may be expended for the transportation of any officer or employee of such department or agency between his domicile and his place of employment, with the exception of any officer or employee authorized such transportation under title 31, United States Code, section 1344. Sec. 507. None of the funds provided in this Act may be used for payment, through grants or contracts, to recipients that do not share in the cost of conducting research resulting from proposals not specifically solicited by the Government: Provided, That the extent of cost sharing by the recipient shall reflect the mutuality of interest of the grantee or contractor and the Government in the research. Sec. 508. None of the funds provided in this Act may be used, directly or through grants, to pay or to provide reimbursement for payment of the salary of a consultant (whether retained by the Federal Government or a grantee) at more than the daily equivalent of the rate paid for Level IV of the Executive Schedule, unless specifically authorized by law. Sec. 509. None of the funds in this Act shall be used to pay the expenses of, or otherwise compensate, non-Federal parties intervening in regulatory or adjudicatory proceedings. Nothing herein affects the authority of the Consumer Product Safety Commission pursuant to section 7 of the Consumer Product Safety Act (15 U.S.C. 2056 et seq.). Sec. 510. Except as otherwise provided under existing law or under an existing Executive order issued pursuant to an existing law, the obligation or expenditure of any appropriation under this Act for contracts for any consulting service shall be limited to contracts which are (1) a matter of public record and available for public inspection, and (2) thereafter included in a publicly available list of all contracts entered into within twenty-four months prior to the date on which the list is made available to the public and of all contracts on which performance has not been completed by such date. The list required by the preceding sentence shall be updated quarterly and shall include a narrative description of the work to be performed under each such contract.

Sec. 511. Except as otherwise provided by law, no part of any appropriation contained in this Act shall be obligated or expended by any executive agency, as referred to in the Office of Federal Procurement Policy Act (41 U.S.C. 401 et seq.) for a contract for services unless such executive agency (1) has awarded and entered into such contract in full compliance with such Act and the regulations promulgated thereunder, and (2) requires any report prepared pursuant to such contract, including plans, evalua

tions, studies, analyses and manuals, and any report prepared by the agency which is substantially derived from or substantially includes any report prepared pursuant to such contract, to contain information concerning (A) the contract pursuant to which the report was prepared, and (B) the contractor who prepared the report pursuant to such contract.

Sec. 512. Except as otherwise provided in section 506, none of the funds provided in this Act to any department or agency shall be obligated or expended to provide a personal cook, chauffeur, or other personal servants to any officer or employee of such department or agency. Sec. 513. None of the funds provided in this Act to any department or agency shall be obligated or expended to procure passenger automobiles as defined in 15 U.S.C. 2001 with an EPA estimated miles per gallon average of less than 22 miles per gallon. Sec. 514. Such sums as may be necessary for fiscal year 1996 pay raises for programs funded by this Act shall be absorbed within the levels appropriated in this Act. Sec. 515. None of the funds appropriated in title I of this Act shall be used to enter into any new lease of real property if the estimated annual rental is more than $300,000 unless the Secretary submits, in writing, a report to the Committees on Appropriations of the Congress and a period of 30 days has expired following the date on which the report is received by the Committees on Appropriations.

Sec. 516. (a) Purchase of American-Made Equipment and Products.--It is the sense of the Congress that, to the greatest extent practicable, all equipment and products purchased with funds made available in this Act should be American-made. (b) Notice Requirement.--In providing financial assistance to, or entering into any contract with, any entity using funds made available in this Act, the head of each Federal agency, to the greatest extent practicable, shall provide to such entity a notice describing the statement made in subsection (a) by the Congress. Sec. 517. None of the funds appropriated in this Act may be used to implement any cap on reimbursements to grantees for indirect costs, except as published in Office of Management and Budget Circular A-21. Sec. 518. None of the funds made available in this Act may be used for any program, project, or activity, when it is made known to the Federal entity or official to which the funds are made available that the program, project, or activity is not in compliance with any Federal law relating to risk assessment, the protection of private property rights, or unfunded mandates. Sec. 519. In fiscal year 1996, the Director of the Federal Emergency Management Agency shall sell the disaster housing inventory of mobile homes and trailers, and the proceeds thereof shall be deposited in the Treasury. Sec. 520. Such funds as may be necessary to carry out the orderly termination of the Office of Consumer Affairs shall be made available from funds appropriated to the Department of Health and Human Services for fiscal year 1996.

Sec. 521. Upon enactment of this Act, the provisions of section 201(b) of Public Law 104-99, except the last proviso, are superseded.

This Act may be cited as the ``Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996''.

Notwithstanding any other provision of law, any domestic fish or fish product produced in compliance with food safety standards or procedures accepted by the Food and Drug Administration as satisfying the requirements of the ``Procedures for the Safe and Sanitary Processing and Importing of Fish and Fish Products'' (published by the Food and Drug Administration as a final regulation in the Federal Register of December 18, 1995), shall be deemed to have met any inspection requirements of the Department of Agriculture or other Federal agency for any Federal commodity

purchase program, including the program authorized under section 32 of the Act of August 24, 1935 (7 U.S.C. 612c) except that the Department of Agriculture or other Federal agency may utilize lot inspection to establish a reasonable degree of certainty that fish or fish products purchased under a Federal commodity purchase program, including the program authorized under section 32 of the Act of August 24, 1935 (7 U.S.C. 612c), meet Federal product specifications.

Notwithstanding any other provision of law, the Secretary of Agriculture is hereby authorized to make or guarantee an operating loan under Subtitle B or an emergency loan under Subtitle C of the Consolidated Farm and Rural Development Act (7 U.S.C. 1922 et. seq.), as in effect prior to April 4, 1996, to a loan applicant who was less than 90 days delinquent on April 4, 1996, if the loan applicant had submitted an application for the loan prior to April 5, 1996.

CHAPTER 1A

FOOD AND DRUG EXPORT REFORM

SHORT TITLE; REFERENCE.

(a) Short Title.--This chapter may be cited as the ``FDA Export Reform and Enhancement Act of 1996''.

(b) Reference.--Wherever in this chapter (other than in section 2104) an amendment or repeal is expressed in terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to be made to a section or other provision of the Federal Food, Drug, and Cosmetic Act. (21 U.S.C. 321 et seq.)

(a) Imports for Export.--Section 801 (21 U.S.C. 381) is amended-- (1) in subsection (d), by adding at the end thereof the following:

``(3) No component of a drug, no component part or accessory of a device which is ready or suitable for use for health-related purposes, and no food additive, color additive, or dietary supplement, including a product in bulk form, shall be excluded from importation into the United States under subsection (a) if-- ``(A) the importer of such article of a drug or device or importer of the food additive, color additive, or dietary supplement submits a statement to the Secretary, at the time of initial importation, that such article of a drug or device, food additive, color additive, or dietary supplement is intended to be incorporated by the initial owner or consignee into a drug, biological product, device, food, food additive, color additive, or dietary supplement that will be exported by such owner or consignee from the United States in accordance with section 801(e) or 802 or section 351(h) of the Public Health Service Act; ``(B) the initial owner or consignee responsible for such imported article maintains records that identify the use of such imported article and upon request of the Secretary submits a report that provides an accounting of the exportation or

the disposition of the imported article, including portions that have been destroyed, and the manner in which such person complied with the requirements of this paragraph; and ``(C) any imported component, part, or accessory of a drug or device and any food additive, color additive, or dietary supplement not incorporated as described in subparagraph (A) is destroyed or exported by the owner or consignee.

``(4) The importation into the United States of blood, blood components, source plasma, or source leukocytes or of a component, accessory, or part thereof is not permitted pursuant to paragraph (3) unless the importation complies with section 351(a) of the Public Health Service Act or the Secretary permits the importation under appropriate circumstances and conditions, as determined by the Secretary. The importation of tissue or a component or part of tissue is not permitted pursuant to paragraph (3) unless the importation complies with section 361 of the Public Health Service Act.''; (b) Export of Certain Products.--Section 801 (21 U.S.C. 381) is amended-- (1) in subsection (e)(1), by striking the second sentence; (2) in subsection (e)(2)-- (A) by striking ``the Secretary'' and inserting ``either (i) the Secretary''; and (B) by inserting before the period at the end thereof the following: ``or (ii) the device is eligible for export under section 802''; and (3) in subsection (e), by adding at the end thereof the following:;

``(3) A new animal drug that requires approval under section 512 shall not be exported pursuant to paragraph (1) if such drug has been banned in the United States. ``(4)(A) Any person who exports a drug, animal drug, or device may request that the Secretary-- ``(i) certify in writing that the exported drug, animal drug, or device meets the requirements of paragraph (1) or section 802; or ``(ii) certify in writing that the drug, animal drug, or device being exported meets the applicable requirements of this Act upon a showing that the drug or device meets the applicable requirements of this Act.

The Secretary shall issue such a certification within 20 days of the receipt of a request for such certification.

``(B) If the Secretary issues a written export certification within the 20 days prescribed by subparagraph (A), a fee for such certification may be charged but shall not exceed $175 for each certification. Fees collected for a fiscal year pursuant to this subparagraph shall be credited to the appropriation account for salaries and expenses of the Food and Drug Administration and shall be available in accordance with appropriations Acts until expended without fiscal year limitation. Such fees shall be collected in each fiscal year in an amount equal to the amount specified in appropriations Acts for such fiscal year and shall only be collected and available for the costs of the Food and Drug Administration.''. (c) Labeling of Exported Drugs.--Section 801 (21 U.S.C. 381) is amended by adding at the end the following: ``(f)(1) If a drug being exported in accordance with subsection (e) is being exported to a country that has different or additional

labeling requirements or conditions for use and such country requires the drug to be labeled in accordance with those requirements or uses, such drug may be labeled in accordance with such requirements and conditions for use in the country to which such drug is being exported if it also is labeled in accordance with the requirements of this Act. ``(2) If, pursuant to paragraph (1), the labeling of an exported drug includes conditions for use that have not been approved under this Act, the labeling must state that such conditions for use have not been approved under this Act.''. (d) Export of Certain Unapproved Drugs and Devices.-- (1) Amendment.--Section 802 (21 U.S.C. 382) is amended to read as follows:

``exports of certain unapproved products

``Sec. 802. (a) A drug or device-- ``(1) which, in the case of a drug-- ``(A)(i) requires approval by the Secretary under section 505 before such drug may be introduced or delivered for introduction into interstate commerce; or ``(ii) requires licensing by the Secretary under section 351 of the Public Health Service Act or by the Secretary of Agriculture under the Act of March 4, 1913 (known as the Virus-Serum Toxin Act) before it may be introduced or delivered for introduction into interstate commerce; ``(B) does not have such approval or license; and ``(C) is not exempt from such sections or Act; and ``(2) which, in the case of a device-- ``(A) does not comply with an applicable requirement under section 514 or 515; ``(B) under section 520(g) is exempt from either such section; or ``(C) is a banned device under section 516, is adulterated, misbranded, and in violation of such sections or Act unless the export of the drug or device is, except as provided in subsection (f), authorized under subsection (b), (c), (d), or (e) or section 801(e)(2). If a drug or device described in paragraphs (1) and (2) may be exported under subsection (b) and if an application for such drug or device under section 505 or 515 or section 351 of the Public Health Service Act was disapproved, the Secretary shall notify the appropriate public health official of the country to which such drug will be exported of such disapproval.

``(b)(1)(A) A drug or device described in subsection (a) may be exported to any country, if the drug or device complies with the laws of that country and has valid marketing authorization by the appropriate authority-- ``(i) in Australia, Canada, Israel, Japan, New Zealand, Switzerland, or South Africa; or ``(ii) in the European Union or a country in the European Economic Area (the countries in the European Union and the European Free Trade Association) if the drug or device is marketed in that country or the drug or device is authorized for general marketing in the European Economic Area.

``(B) The Secretary may designate an additional country to be included in the list of countries described in clauses (i) and

(ii) of subparagraph (A) if all of the following requirements are met in such country: ``(i) Statutory or regulatory requirements which require the review of drugs and devices for safety and effectiveness by an entity of the government of such country and which authorize the approval of only those drugs and devices which have been determined to be safe and effective by experts employed by or acting on behalf of such entity and qualified by scientific training and experience to evaluate the safety and effectiveness of drugs and devices on the basis of adequate and well- controlled investigations, including clinical investigations, conducted by experts qualified by scientific training and experience to evaluate the safety and effectiveness of drugs and devices. ``(ii) Statutory or regulatory requirements that the methods used in, and the facilities and controls used for-- ``(I) the manufacture, processing, and packing of drugs in the country are adequate to preserve their identity, quality, purity, and strength; and ``(II) the manufacture, preproduction design validation, packing, storage, and installation of a device are adequate to assure that the device will be safe and effective. ``(iii) Statutory or regulatory requirements for the reporting of adverse reactions to drugs and devices and procedures to withdraw approval and remove drugs and devices found not to be safe or effective. ``(iv) Statutory or regulatory requirements that the labeling and promotion of drugs and devices must be in accordance with the approval of the drug or device. ``(v) The valid marketing authorization system in such country or countries is equivalent to the systems in the countries described in clauses (i) and (ii) of subparagraph (A).

The Secretary shall not delegate the authority granted under this subparagraph. ``(C) An appropriate country official, manufacturer, or exporter may request the Secretary to take action under subparagraph (B) to designate an additional country or countries to be added to the list of countries described in clauses (i) and (ii) of subparagraph (A) by submitting documentation to the Secretary in support of such designation. Any person other than a country requesting such designation shall include, along with the request, a letter from the country indicating the desire of such country to be designated. ``(2) A drug described in subsection (a) may be directly exported to a country which is not listed in clause (i) or (ii) of paragraph (1)(A) if-- ``(A) the drug complies with the laws of that country and has valid marketing authorization by the responsible authority in that country; and ``(B) the Secretary determines that all of the following requirements are met in that country: ``(i) Statutory or regulatory requirements which require the review of drugs for safety and effectiveness by an entity of the government of such country and which authorize the approval of only those drugs which have been determined to be safe and effective by experts employed by or acting on behalf of such entity and qualified by scientific training and experience to evaluate the safety

and effectiveness of drugs on the basis of adequate and well-controlled investigations, including clinical investigations, conducted by experts qualified by scientific training and experience to evaluate the safety and effectiveness of drugs. ``(ii) Statutory or regulatory requirements that the methods used in, and the facilities and controls used for the manufacture, processing, and packing of drugs in the country are adequate to preserve their identity, quality, purity, and strength. ``(iii) Statutory or regulatory requirements for the reporting of adverse reactions to drugs and procedures to withdraw approval and remove drugs found not to be safe or effective. ``(iv) Statutory or regulatory requirements that the labeling and promotion of drugs must be in accordance with the approval of the drug.

``(3) The exporter of a drug described in subsection (a) which would not meet the conditions for approval under this Act or conditions for approval of a country described in clause (i) or (ii) of paragraph (1)(A) may petition the Secretary for authorization to export such drug to a country which is not described in clause (i) or (ii) of paragraph (1)(A) or which is not described in paragraph (2). The Secretary shall permit such export if-- ``(A) the person exporting the drug-- ``(i) certifies that the drug would not meet the conditions for approval under this Act or the conditions for approval of a country described in clause (i) or (ii) of paragraph (1)(A); and ``(ii) provides the Secretary with credible scientific evidence, acceptable to the Secretary, that the drug would be safe and effective under the conditions of use in the country to which it is being exported; and ``(B) the appropriate health authority in the country to which the drug is being exported-- ``(i) requests approval of the export of the drug to such country; ``(ii) certifies that the health authority understands that the drug is not approved under this Act or in a country described in clause (i) or (ii) of paragraph (1)(A); and ``(iii) concurs that the scientific evidence provided pursuant to subparagraph (A) is credible scientific evidence that the drug would be reasonably safe and effective in such country.

The Secretary shall take action on a request for export of a drug under this paragraph within 60 days of receiving such request.

``(c) A drug or device intended for investigational use in any country described in clause (i) or (ii) of subsection (b)(1)(A) may be exported in accordance with the laws of that country and shall be exempt from regulation under section 505(i) or 520(g). ``(d) A drug or device intended for formulation, filling, packaging, labeling, or further processing in anticipation of market authorization in any country described in clause (i) or (ii) of subsection (b)(1)(A) may be exported for use in accordance with the laws of that country.

``(e)(1) A drug or device which is used in the diagnosis, prevention, or treatment of a tropical disease or another disease not of significant prevalence in the United States and which does not otherwise qualify for export under this section shall, upon approval of an application, be permitted to be exported if the Secretary finds that the drug or device will not expose patients in such country to an unreasonable risk of illness or injury and the probable benefit to health from the use of the drug or device (under conditions of use prescribed, recommended, or suggested in the labeling or proposed labeling of the drug or device) outweighs the risk of injury or illness from its use, taking into account the probable risks and benefits of currently available drug or device treatment.

``(2) The holder of an approved application for the export of a drug or device under this subsection shall report to the Secretary-- ``(A) the receipt of any credible information indicating that the drug or device is being or may have been exported from a country for which the Secretary made a finding under paragraph (1)(A) to a country for which the Secretary cannot make such a finding; and ``(B) the receipt of any information indicating adverse reactions to such drug.

``(3)(A) If the Secretary determines that-- ``(i) a drug or device for which an application is approved under paragraph (1) does not continue to meet the requirements of such paragraph; or ``(ii) the holder of an approved application under paragraph (1) has not made the report required by paragraph (2),

the Secretary may, after providing the holder of the application an opportunity for an informal hearing, withdraw the approved application. ``(B) If the Secretary determines that the holder of an approved application under paragraph (1) or an importer is exporting a drug or device from the United States to an importer and such importer is exporting the drug or device to a country for which the Secretary cannot make a finding under paragraph (1) and such export presents an imminent hazard, the Secretary shall immediately prohibit the export of the drug or device to such importer, provide the person exporting the drug or device from the United States prompt notice of the prohibition, and afford such person an opportunity for an expedited hearing. ``(f) A drug or device may not be exported under this section-- ``(1) if the drug or device is not manufactured, processed, packaged, and held in substantial conformity with current good manufacturing practice requirements or does not meet international standards as certified by an international standards organization recognized by the Secretary; ``(2) if the drug or device is adulterated under clause (1), (2)(A), or (3) of section 501(a) or subsection (c) or (d) of section 501; ``(3) if the requirements of subparagraphs (A) through (D) of section 801(e)(1) have not been met; ``(4)(A) if the drug or device is the subject of a notice by the Secretary or the Secretary of Agriculture of a determination that the probability of reimportation of the exported drug or device would present an imminent hazard to the public health and safety of the United States and the only means

of limiting the hazard is to prohibit the export of the drug or device; or ``(B) if the drug or device presents an imminent hazard to the public health of the country to which the drug or device would be exported; ``(5) if the drug or device is not labeled-- ``(A) in accordance with the requirements and conditions for use in-- ``(i) the country in which the drug or device received valid marketing authorization under subsection (b); and ``(ii) the country to which the drug or device would be exported; and ``(B) in the language and units of measurement of the country to which the drug or device would be exported or in the language designated by such country; or ``(6) if the drug or device is not promoted in accordance with the labeling requirements set forth in paragraph (5).

In making a finding under paragraph (4)(B), (5), or (6) the Secretary shall consult with the appropriate public health official in the affected country.

``(g) The exporter of a drug or device exported under subsection (b)(1) shall provide a simple notification to the Secretary identifying the drug or device when the exporter first begins to export such drug or device to any country listed in clause (i) or (ii) of subsection (b)(1)(A). When an exporter of a drug or device first begins to export a drug or device to a country which is not listed in clause (i) or (ii) of subsection (b)(1)A), the exporter shall provide a simple notification to the Secretary identifying the drug or device and the country to which such drug or device is being exported. Any exporter of a drug or device shall maintain records of all drugs or devices exported and the countries to which they were exported.

``(h) For purposes of this section-- ``(1) a reference to the Secretary shall in the case of a biological product which is required to be licensed under the Act of March 4, 1913 (37 Stat. 832-833) (commonly known as the Virus-Serum Toxin Act) be considered to be a reference to the Secretary of Agriculture, and ``(2) the term `drug' includes drugs for human use as well as biologicals under section 351 of the Public Health Service Act or the Act of March 4, 1913 (37 Stat. 832-833) (commonly known as the Virus-Serum Toxin Act).''. (2) Conforming amendments.--Section 351(h) of the Public Health Service Act (42 U.S.C. 262(h)) is amended by striking ``802(b)(A)'' and inserting ``802(b)(1)'' and by striking ``802(b)(4)'' and inserting ``802(b)(1)''.

Section 301 (21 U.S.C. 331) is amended-- (1) by redesignating the second subsection (u) as subsection (v); and (2) by adding at the end thereof the following:

``(w) The making of a knowingly false statement in any record or report required or requested under subparagraph (A) or (B) of section 801(d)(3), the failure to submit or maintain records as required by sections 801(d)(3)(A) and 801(d)(3)(B), the release into interstate commerce of any article imported into the United States

under section 801(d)(3) or any finished product made from such article (except for export in accordance with section 801(e) or 802 or section 351(h) of the Public Health Service Act), or the failure to export or destroy any component, part or accessory not incorporated into a drug, biological product or device that will be exported in accordance with section 801(e) or 802 or section 351(h) of the Public Health Service Act.''.

Subsection (h) of section 351 of the Public Health Service Act (42 U.S.C. 262) is amended to read as follows: ``(h) A partially processed biological product which-- ``(1) is not in a form applicable to the prevention, treatment, or cure of diseases or injuries of man; ``(2) is not intended for sale in the United States; and ``(3) is intended for further manufacture into final dosage form outside the United States,

shall be subject to no restriction on the export of the product under this Act or the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 321 et. seq.) if the product is manufactured, processed, packaged, and held in conformity with current good manufacturing practice requirements or meets international manufacturing standards as certified by an international standards organization recognized by the Secretary and meets the requirements of section 801(e)(1) of the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 381(e)).''. Sec. 2105. (a) In General.--Any owner on the date of enactment of this Act of the right to market a nonsteroidal antiinflammatory drug that-- (1) contains a previously patented active agent; (2) has been reviewed by the Federal Food and Drug Administration for a period of more than 120 months as a new drug application; and (3) was approved as safe and effective by the Federal Food and Drug Administration on October 29, 1992,

shall be entitled, for the 2-year period beginning on October 29, 1997, to exclude others from making, using, offering for sale, selling, or importing into the United States such active agent, in accordance with section 154(a)(1) of title 35, United States Code. (b) Infringement.--Section 271 of title 35, United States Code shall apply to the infringement of the entitlement provided under subsection (a). No application described in section 271(e)(2)(A) of title 35, United States Code, regardless of purpose, may be submitted prior to the expiration of the entitlement provided under subsection (a). (c) Notification.--Not later than 30 days after the date of the enactment of this Act, any owner granted an entitlement under subsection (a) shall notify the Commissioner of Patents and Trademarks and the Secretary for Health and Human Services of such entitlement. Not later than 7 days after the receipt of such notice, the Commissioner and the Secretary shall publish an appropriate notice of the receipt of such notice.

CHAPTER 2

DEPARTMENTS OF COMMERCE, JUSTICE, AND STATE, THE JUDICIARY, AND RELATED AGENCIES

DEPARTMENT OF COMMERCE

Economic Development Administration

economic development assistance programs

For an additional amount for emergency expenses including mitigation relating to flooding and other natural disasters, $18,000,000, to remain available until expended, for grants and related expenses pursuant to the Public Works and Economic Development Act of 1965, as amended, and for administrative expenses which may be transferred to and merged with the appropriations for ``Salaries and expenses'': Provided, That the entire amount is hereby 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: Provided further, That the entire amount shall be available only to the extent an official budget request, for a specific dollar amount, that includes designation of the entire amount of the request as an emergency requirement as defined in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted to Congress.

National Oceanic and Atmospheric Administration

construction

For an additional amount for ``Construction'' for emergency expenses resulting from flooding in the Pacific Northwest and other natural disasters, $7,500,000, to remain available until expended: Provided, That the entire amount is hereby 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. RELATED AGENCY

Small Business Administration

disaster loans program account

For an additional amount for ``Disaster Loans Program Account'', $71,000,000 for the cost of direct loans, to remain available until expended: Provided, That such costs, including the cost of modifying such loans, shall be as defined in section 502 of the Congressional Budget Act of 1974; and for administrative expenses to carry out the disaster loan program, $29,000,000, to remain available until expended: Provided, That both amounts are hereby designated by Congress as emergency requirements pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

CHAPTER 3

DEPARTMENT OF DEFENSE--CIVIL

DEPARTMENT OF THE ARMY

Corps of Engineers--Civil

general investigations

Any funds heretofore appropriated and made available in Public Law 102-104 and Public Law 102-377 to carry out the provisions for the project for navigation, St. Louis Harbor, Missouri and Illinois; may be utilized by the Secretary of the Army in carrying out the Upper Mississippi and Illinois Waterway System Navigation Study, Iowa, Illinois, Missouri, Wisconsin, Minnesota, in fiscal year 1996 or until expended.

operation and maintenance, general

For an additional amount for ``Operation and Maintenance, General'', for the Northeast and Northwest floods of 1996, $30,000,000, to remain available until expended: Provided, That the entire amount 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.

flood control and coastal emergencies

For an additional amount for ``Flood Control and Coastal Emergencies'', for the Northeast and Northwest floods of 1996 and other disasters, and to replenish funds transferred pursuant to Public Law 84- 99, $135,000,000, to remain available until expended: Provided, That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(D)(2)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended. DEPARTMENT OF THE INTERIOR

Bureau of Reclamation

construction program

For an additional amount for ``Construction Program'', $9,000,000, to remain available until expended: Provided, That the entire amount is designated by Congress as an emergency requirement pursuant to section 251(b)(D)(2)(i) of the Balanced Budget and Emergency Deficit Control Act of 1985, as amended.

DEPARTMENT OF ENERGY

Atomic Energy Defense Activities

other defense activities

For an additional amount for ``Other Defense Activities'', for the Materials Protection, Control and Accounting program, $15,000,000 to remain available until expended, not withstanding any other provision of law.

POWER MARKETING ADMINISTRATIONS

Construction, Rehabilitation, Operation and Maintenance, Western Area Power Administration

(transfer of funds)

$5,500,000 of funds appropriated under this heading in the Energy and Water Development Appropriations Act, 1995 (Public Law 103-316), shall be transferred to the appropriation account ``Operation and Maintenance, Alaska Power Administration'', to remain available until expended, only for necessary termination expenses. CHAPTER 4

FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS

FUNDS APPROPRIATED TO THE PRESIDENT

UNANTICIPATED NEEDS

Unanticipated Needs for Defense of Israel Against Terrorism

For emergency expenses necessary to meet unanticipated needs for the acquisition and provision of goods, services, and/or grants for Israel necessary to support the eradication of terrorism in and around Israel, $50,000,000: Provided, That none of the funds appropriated in this paragraph shall be available for obligation except through the regular notification procedures of the Committees on Appropriations: Provided further, That the entire amount 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.

MILITARY ASSISTANCE

Foreign Military Financing Program

For an additional amount for ``Foreign Military Financing Program'' for grants for Jordan pursuant to section 23 of the Arms Export Control Act, $70,000,000: Provided, That such funds may be used for Jordan to finance transfers by lease of defense articles under chapter 6 of such Act.

CHAPTER 5

DEPARTMENT OF THE INTERIOR AND RELATED AGENCIES

DEPARTMENT OF THE INTERIOR

Bureau of Land Management

construction and access

For an additional amount for ``Construction and Access'', $5,000,000, to remain available until expended, to repair roads,

culverts, bridges, facilities, fish and wildlife protective structures, and recreation sites, damaged due to the Pacific Northwest flooding: Provided, That Congress hereby designates this amount 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: Provided further, That $758,000 of this amount shall be available only to the extent an official budget request, for a specific dollar amount, that includes designation of the entire amount of the request 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, is transmitted by the President to the Congress.

oregon and california grant lands

For an additional amount for ``Oregon and California Grant Lands'', $35,000,000, to remain available until expended, to repair roads, culverts, bridges, facilities, fish and wildlife protective structures, and recreation sites, damaged due to the Pacific Northwest flooding: Provided, That Congress hereby designates this amount 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: Provided further, That $15,452,000 of this amount shall be available only to the extent an official budget request, for a specific dollar amount, that includes designation of the entire amount of the request 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, is transmitted by the President to the Congress.

United States Fish and Wildlife Service

resource management

For an additional amount for Resource Management, $1,600,000, to remain available until expended, to provide technical assistance to the Natural Resource Conservation Service, the Federal Emergency Management Agency, the United States Army Corps of Engineers and other agencies on fish and wildlife habitat issues related to damage caused by floods, storms and other acts of nature: Provided, That the entire amount 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 requirement as defined in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted by the President to Congress: Provided further, That the entire amount 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.

construction

For an additional amount for ``Construction'', $37,300,000, to remain available until expended, to repair damage caused by hurricanes, floods and other acts of nature, and to protect natural resources Provided, That Congress hereby designates this amount 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: Provided further, That $16,795,000 of this amount shall be available only to the extent an official budget request, for a specific dollar amount, that includes designation of the entire amount of the request 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, is transmitted by the President to the Congress. National Park Service

construction

For an additional amount for ``Construction'', $47,000,000, to remain available until expended, to repair damage caused by hurricanes, floods and other acts of nature: Provided that Congress hereby designates this amount 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: Provided further, That $13,399,000 of this amount shall be available only to the extent an official budget request, for a specific dollar amount, that includes designation of the entire amount of the request 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, is transmitted by the President to the Congress.

United States Geological Survey

surveys, investigations, and research

For an additional amount for ``Surveys, investigations, and research'', $2,000,000, to remain available until September 30, 1997, for the costs related to hurricanes, floods and other acts of nature: Provided, That Congress hereby designates this amount 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: Provided further, That $824,000 of this amount shall be available only to the extent an official budget request, for a specific dollar amount, that includes designation of the entire amount of the request 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, is transmitted by the President to the Congress. Bureau of Indian Affairs

operation of indian programs

For an additional amount for ``Operation of Indian Programs'', $500,000, to remain available until September 30, 1997, for emergency operations and repairs related to winter floods: Provided, That the entire amount 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.

construction

For an additional amount for ``Construction'', $16,500,000, to remain available until expended, for emergency repairs related to winter floods: Provided, That Congress hereby designates this amount as an emergency requirement pursuant to section 251(b)(2)(D)(i) of the Balanced Budget and Emergency Deficit Con

trol Act of 1985, as amended: Provided further, That $7,072,000 of this amount shall be available only to the extent an official budget request, for a specific dollar amount, that includes designation of the entire amount of the request 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, is transmitted by the President to the Congress.

Territorial and International Affairs

assistance to territories

For an additional amount for ``Assistance to Territories'', $13,000,000, to remain available until expended, for recovery efforts from Hurricane Marilyn: Provided, That Congress hereby designates this amount 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: Provided further, That $11,000,000 of this amount shall be available only to the extent an official budget request, for a specific dollar amount, that includes designation of the entire amount of the request 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, is transmitted by the President to the Congress.

DEPARTMENT OF AGRICULTURE

Forest Service

national forest system

For an additional amount for ``National Forest System'', $26,600,000, to remain available until expended, to repair damage caused by hurricanes, floods and other acts of nature: Provided that Congress hereby designates this amount 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: Provided further, That $6,600,000 of this amount shall be available only to the extent an official budget request, for a specific dollar amount, that includes designation of the entire amount of the request 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, is transmitted by the President to the Congress.

For an additional amount for ``Construction'', $60,800,000, to remain available until expended: Provided, That Congress hereby designates this amount 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: Provided further, That $20,800,000 of this amount shall be available only to the extent an official budget request, for a specific dollar amount, that includes designation of the entire amount of the request 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, is transmitted by the President to the Congress.

CHAPTER 6

DEPARTMENT OF DEFENSE

MILITARY CONSTRUCTION

North Atlantic Treaty Organization Security Investment Program

For an additional amount for ``North Atlantic Treaty Organization Security Investment Program'', $37,500,000, to remain available until expended: Provided, That the Secretary of Defense may make additional contributions for the North Atlantic Treaty Organization as provided in section 2806 of title 10, United States Code: Provided further, That such amount 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. GENERAL PROVISION

(a) Conveyance Authorized.--The Secretary of the Army may convey, without consideration, to Hale County, Alabama, all right, title, and interest of the United States in and to a parcel of real property consisting of approximately 5.17 acres and located in Greensboro, Alabama, that was conveyed by Hale County, Alabama, to the United States by warranty deed dated September 12, 1988. (b) Description of Property.--The exact acreage and legal description of the property conveyed under subsection (a) shall be as described in the deed referred to in that subsection. (c) Additional Terms and Conditions.--The Secretary may require such additional terms and conditions in connection with the conveyance under this section as the Secretary considers appropriate to protect the interests of the United States.

CHAPTER 7

DEPARTMENT OF DEFENSE--MILITARY

MILITARY PERSONNEL

Military Personnel, Army

For an additional amount for ``Military Personnel, Army'', $257,200,000: Provided, That such amount 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.

Military Personnel, Navy

For an additional amount for ``Military Personnel, Navy'', $11,700,000: Provided, That such amount 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.

Military Personnel, Marine Corps

For an additional amount for ``Military Personnel, Marine Corps'', $2,600,000: Provided, That such amount 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.

Military Personnel, Air Force

For an additional amount for ``Military Personnel, Air Force'', $27,300,000: Provided, That such amount 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.

OPERATION AND MAINTENANCE

Operation and Maintenance, Army

For an additional amount for ``Operation and Maintenance, Army'', $241,500,000: Provided, That such amount 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.

Operation and Maintenance, Marine Corps

For an additional amount for ``Operation and Maintenance, Marine Corps'', $900,000: Provided, That such amount 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.

Operation and Maintenance, Air Force

For an additional amount for ``Operation and Maintenance, Air Force'', $173,000,000: Provided, That such amount 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.

Operation and Maintenance, Defense-Wide

For an additional amount for ``Operation and Maintenance, Defense- Wide'', $79,800,000: Provided, That such amount 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.

PROCUREMENT

Other Procurement, Air Force

For an additional amount for ``Other Procurement, Air Force'', $26,000,000: Provided, That such amount 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.

GENERAL PROVISIONS

(transfer of funds)

Sec. 2701. Section 8005 of the Department of Defense Appropriations Act, 1996 (Public Law 104-61), is amended by striking out ``$2,400,000,000'' and inserting in lieu thereof ``$3,100,000,000'': Provided, That the additional transfer authority provided herein shall be available only to the extent funds are transferred, or have been transferred, during the current fiscal year to cover the costs associated with United States military operations in support of the NATO-led Peace Implementation Force (IFOR) in and around the former Yugoslavia.

Sec. 2702. Notwithstanding any other provision of law, funds appropriated in the Department of Defense Appropriations Act, 1996 (Public Law 104-61) under the heading ``Aircraft Procurement, Air Force'' may be obligated for advance procurement and procurement of F- 15E aircraft.

Sec. 2703. (a) Funds appropriated under the heading, ``Aircraft Procurement, Air Force'', in Public Laws 104-61, 103-335 and 103-139 that are or remain available for C-17 airframes, C-17 aircraft engines, and complementary widebody aircraft/NDAA may be used for multiyear procurement contracts for C-17 aircraft: Provided, That the duration of multiyear contracts awarded under the authority of this subsection may be for a period not to exceed seven program years, notwithstanding section 2306b(k) of title 10, United States Code: Provided further, That the funds referred to in this subsection also may be used for advance procurement for up to ten C-17 aircraft in fiscal year 1997: Provided further, That the advance procurement funds referred to in this subsection may be used to fund Economic Order Quantities for up to eighty aircraft. (b) Immediately upon enactment of this Act, the Secretary of Defense shall enter into negotiations with the C-17 aircraft and engine prime contractors for a baseline fixed price contract for multiyear procurement of eighty C-17 aircraft over a period of seven program years, and alternatives for multiyear procurement of eighty C-17 aircraft over a period of six program years.

(c) The authority to award a multiyear contract as provided in subsection (a) shall not be effective until the Secretary of Defense certifies to the Congressional defense committees that the Air Force will realize a savings of more than 5 percent in the total flyaway price for the eighty C-17 aircraft under a C-17 multiyear contract as compared to annual lot procurement of the aircraft at the maximum affordable rate profile approved in the November 3, 1995, Acquisition Decision Memorandum: Provided, That these savings shall exceed the estimates presented in the ``Multiyear Procurement Criteria Program: C-17'' documents submitted pursuant to the request for a fiscal year 1996 supplemental appropriation transmitted to the Congress.

(d) The authority under subsection (a) may not be used to execute a multiyear procurement contract until the earlier of (1) May 24, 1996, or (2) the day after the date of the enactment of an Act that contains a provision authorizing the Department of Defense to enter into a multiyear contract for the C-17 aircraft program. (e) Not later than May 24, 1996, the Secretary of Defense shall submit to the Congressional defense committees a report providing a detailed program plan for the six-year multiyear

procurement program; such report also shall include the latest estimate of any additional savings potentially generated from such an accelerated multiyear procurement of C-17 aircraft.

Sec. 2704. In addition to the amounts made available in Public Law 104-61 under the heading ``Research, Development, Test and Evaluation, Defense-Wide'', $50,000,000 is hereby appropriated and made available to continue the activities of the semiconductor manufacturing consortium known as Sematech.

(transfer of funds)

Sec. 2705. Of the funds appropriated in title II of Public Law 104- 61, under the heading ``Overseas Humanitarian, Disaster, and Civic Aid'', for training and activities related to the clearing of landmines for humanitarian purposes, up to $15,000,000 may be transferred to ``Operation and Maintenance, Defense-Wide'', to be available for the payment of travel, transportation and subsistence expenses of Department of Defense personnel incurred in carrying out humanitarian assistance activities related to the detection and clearance of landmines. Sec. 2706. Notwithstanding any other provision of law, $15,000,000 of the amount made available in title II, under the heading ``Operation and Maintenance, Army'' in Public Law 104-61 shall be paid to National Presto Industries, Inc. for the purpose of environmental restoration at the National Presto Industries, Inc. site in Eau Claire, Wisconsin, in recognition of the 1988 Agreement between the Department of the Army and National Presto Industries, Inc. Sec. 2707. (a)(1) Section 1177 of title 10, United States Code, relating to mandatory discharge or retirement of members of the Armed Forces infected with HIV-1 virus, is repealed.

(2) The table of sections at the beginning of chapter 59 of such title is amended by striking out the item relating to section 1177. (b) Subsection (b) of section 567 of the National Defense Authorization Act for Fiscal Year 1996 is repealed.

Sec. 2708. In addition to the amounts made available in title II of Public Law 104-61, under the heading ``Operation and Maintenance, Air Force'', $44,900,000 is hereby appropriated and made available for the operation and maintenance of 94 B-52H bomber aircraft in active status or in attrition reserve. Sec. 2709. In addition to the amounts made available in title IV of Public Law 104-61, under the heading ``Research, Development, Test and Evaluation, Navy'', $10,000,000 is hereby appropriated and made available for Shallow Water Mine Countermeasure Demonstrations, of which $5,000,000 shall be made available for the Advanced Lightweight Influence Sweep System Development program.

Sec. 2710. Of the funds appropriated or otherwise made available in title VI of Public Law 104-61, under the heading ``Defense Health Program'', $8,000,000 are transferred to and merged with funds appropriated or otherwise made available under title IV of that Act under the heading ``Research, Development, Test and Evaluation, Army'' and shall be available only for obligation and expenditure for advanced research into neurofibromatosis.

Sec. 2711. Of the funds available to the Department of Defense in title VI, Public Law 104-61, under the heading ``Drug Interdiction and Counter-Drug Activities, Defense'', $220,000 shall be made available only for the procurement of Kevlar vests for personal protection of counter-drug personnel: Provided, That notwithstanding any other provision of law, the Department is authorized to transfer these Kevlar vests to local counter-drug personnel in high crime areas. Sec. 2712. Before the period at the end of section 8105 of Public Law 104-61, insert the following: ``: Provided, That the Department of Defense shall release to the Department of the Air Force all such funds not later than May 31, 1996, and the Air Force shall obligate all such funds in compliance with this section not later than June 30, 1996''.

CHAPTER 8

DEPARTMENT OF TRANSPORTATION

Office of the Secretary

payments to air carriers

The first proviso under the head ``Payments to Air Carriers'' in Title I of the Department of Transportation and Related Agencies Appropriations Act, 1996 (Public Law 104-50), is amended to read as follows: ``Provided, That none of the funds in this Act shall be available for the implementation or execution of programs in excess of $22,600,000 from the Airport and Airway Trust Fund for the Payments to Air Carriers program in fiscal year 1996:''.

Federal Highway Administration

federal-aid highways

(highway trust fund)

For the Emergency Fund authorized by 23 U.S.C. 125 to cover expenses arising from the January 1996 flooding in the Mid-Atlantic, Northeast, and Northwest States and other disasters, $300,000,000, to be derived from the Highway Trust Fund and to remain available until expended: Provided, That the entire amount 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 requirement as defined in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted by the President to Congress: Provided further, That such amount 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: Provided further, That the provisions of 23 U.S.C. 125(b)(1) shall not apply to projects relating to the January 1996 flooding in the Mid-Atlantic, Northeast, and Northwest States.

Federal Transit Administration

mass transit capital fund

(liquidation of contract authorization)

(highway trust fund)

For an additional amount for payment of obligations incurred in carrying out 49 U.S.C. 5338(b) administered by the Federal Transit Administration, $375,000,000, to be derived from the Highway Trust Fund and to remain available until expended.

OTHER INDEPENDENT AGENCIES

Panama Canal Commission

panama canal revolving fund

For an additional amount for administrative expenses, $2,000,000, to be derived from the Panama Canal Revolving Fund.

General Provisions

Sec. 2801. Notwithstanding any other provision of law, limitations deducted pursuant to the provisions of section 310 of the Department of Transportation and Related Agencies Appropriations Act, 1996, for discretionary programs and the limitation on general operating expenses for both annual and no-year programs, not to exceed $28,000,000 shall be available for making obligations for construction of a new Hannibal Bridge in Hannibal, Missouri: Provided further, That such limitation shall be restored to categories from which it was transferred before making redistribution of obligation in August of 1996 as provided by section 310 of the Act. Sec. 2802. Notwithstanding any other provision of law, of the funds identified for distribution to the State of Vermont and the Marble Valley Regional Transit District in the matter under the heading ``highway trust fund'', under the heading ``limitation on obligations'', under the heading ``Discretionary Grants'' in the explanatory statement for the conference report to accompany H.R. 2002, House of Representatives report numbered 104-286, an amount not to exceed $3,500,000 may be used for improvements to support commuter rail operations on the Clarendon-Pittsford rail line between White Hall, New York, and Rutland, Vermont. Sec. 2803. In amending parts 119, 121, 125, or 135 of title 14, Code of Federal Regulations in a manner affecting intrastate aviation in Alaska, the Administrator of the Federal Aviation Administration shall consider the extent to which Alaska is not served by transportation modes other than aviation, and shall establish such regulatory distinctions as the Administrator deems appropriate effective through June 1, 1997. Sec. 2804. Notwithstanding any other provision of law, $23,909,325 funds made available under Public Law 103-122 together with $21,534,347 funds made available under Public Law 103-331 for the ``Chicago Central Area Circulator Project'' shall be available only for the purposes of constructing a 5.2 mile light rail loop within the downtown Chicago business district as described

in the full funding grant agreement signed on December 15, 1994, and shall not be available for any other purposes.

CHAPTER 9

TREASURY, POSTAL SERVICE AND GENERAL GOVERNMENT EXECUTIVE OFFICE OF THE PRESIDENT AND FUNDS APPROPRIATED TO THE PRESIDENT

Office of National Drug Control Policy

salaries and expenses

(including transfer of funds)

For an additional amount for ``Salaries and Expenses,'' $3,400,000. General Provisions

Sec. 2901. Title I of Public Law 104-52 is hereby amended by deleting ``, not to exceed $1,406,000,'' under the heading ``customs services at small airports''.

Sec. 2902. Title I of Public Law 104-52 is hereby amended by adding the following new section under the heading ``administrative provisions--internal revenue service'':

``Sec. 3. The funds provided in this Act shall be used to provide a level of service, staffing, and funding for Taxpayer Services Division operations which is not less than that provided in fiscal year 1995.''. Sec. 2903. Title III of Public Law 104-52 is hereby amended by adding the following proviso before the last period under the heading ``office of national drug control policy, salaries and expenses'': ``: Provided, That of the amounts available to the Counter- Drug Technology Assessment Center, no less than $1,000,000 shall be dedicated to conferences on model state drug laws''.

INTERNAL REVENUE SERVICE.

(a) In General.--Section 637(b)(2) of the Treasury, Postal Service, and General Government Appropriations Act, 1996 (Public Law 104-52, 109 Stat. 509) is amended-- (1) by striking ``thirteen'' and inserting ``seventeen'', and (2) in subparagraphs (B) and (D)-- (A) by striking ``Two'' and inserting ``Four'', and (B) by striking ``one from private life'' and inserting ``three from private life''.

(b) 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.

CHAPTER 10

DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND URBAN DEVELOPMENT AND INDEPENDENT AGENCIES

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

Community Planning and Development

community development grants

For an additional amount for ``Community development grants'', $50,000,000, to remain available until September 30, 1998, for emergency expenses and repairs related to recent Presidentially declared flood disasters, including up to $10,000,000 which may be for rental subsidy contracts under the section 8 existing housing certificate program and the housing voucher program under section 8 of the United States Housing Act of 1937, as amended, except that such amount shall be available only for temporary housing assistance, not in excess of one year in duration, and shall not be subject to renewal: Provided, That the entire amount 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 requirement as defined in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted by the President to Congress: Provided further, That the entire amount 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.

Federal Emergency Management Agency

disaster relief

(including transfer of funds)

Of the funds made available under this heading in Public Law 104-19 up to $104,000,000 may be transferred to the Disaster Assistance Direct Loan Program Account for the cost of direct loans as authorized under section 417 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.): Provided, That such transfer may be made to subsidize gross obligations for the principal amount of direct loans not to exceed $119,000,000 under section 417 of the Stafford Act: Provided further, That any such transfer of funds shall be made only upon certification by the Director of the Federal Emergency Management Agency that all requirements of section 417 of the Stafford Act will be complied with: Provided further, 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 requirement as defined in the Balanced Budget and Emergency Deficit Control Act of 1985, as amended, is transmitted by the President to Congress: Provided further, That the entire amount 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.

General Provisions

Sec. 21101. In administering funds provided in this title for domestic assistance, the Secretary of any involved department may waive or specify alternative requirements for any provision of any statute or regulation that the Secretary administers in connection with the obligation by the Secretary or any use of the recipient of these funds, except for the requirement related to civil rights, fair housing and nondiscrimination, the environment, and labor standards, upon finding that such waiver is required to facilitate the obligation and use of such funds would not be inconsistent with the overall purpose of the statute or regulation. Sec. 21102. No part of any appropriation contained in this title shall remain available for obligation beyond the current fiscal year unless expressly so provided herein. Sec. 21103. Notwithstanding section 106 of Public Law 104-99, sections 118, 121, and 129 of Public Law 104-99 <<NOTE: Ante, p. 27, 30, 34.>> shall remain in effect as if enacted as part of this Act.

Sec. 21104. The President may make available funds for assistance activities under titles II and IV of P. L. 104-107, beginning immediately upon enactment of this Act and without regard to monthly apportionment limitations, notwithstanding the provisions of section 518A of such Act, if he determines and reports to the Congress that the effects of the restrictions contained in that section would be that the demand for family planning services would be less likely to be met and that there would be a significant increase in abortions than would otherwise be the case in the absence of such restrictions; Provided, That none of the funds appropriated or otherwise made available in P. L. 104-107 may be made available for obligation for the major foreign donor federation of international population assistance except through the regular notifications procedures of the Committees on Appropriations.

This title may be cited as the ``Supplemental Appropriations Act of 1996''. TITLE III

RESCISSIONS AND OFFSETS

CHAPTER 1

ENERGY AND WATER DEVELOPMENT

Subchapter A--United States Enrichment Corporation Privatization

This subchapter may be cited as the ``USEC Privatization Act''.

For purposes of this subchapter: (1) The term ``AVLIS'' means atomic vapor laser isotope separation technology. (2) The term ``Corporation'' means the United States Enrichment Corporation and, unless the context otherwise requires, includes the private corporation and any successor thereto following privatization.

(3) The term ``gaseous diffusion plants'' means the Paducah Gaseous Diffusion Plant at Paducah, Kentucky and the Portsmouth Gaseous Diffusion Plant at Piketon, Ohio. (4) The term ``highly enriched uranium'' means uranium enriched to 20 percent or more of the uranium-235 isotope. (5) The term ``low-enriched uranium'' means uranium enriched to less than 20 percent of the uranium-235 isotope, including that which is derived from highly enriched uranium. (6) The term ``low-level radioactive waste'' has the meaning given such term in section 2(9) of the Low-Level Radioactive Waste Policy Act (42 U.S.C. 2021b(9)). (7) The term ``private corporation'' means the corporation established under section 3105. (8) The term ``privatization'' means the transfer of ownership of the Corporation to private investors. (9) The term ``privatization date'' means the date on which 100 percent of the ownership of the Corporation has been transferred to private investors. (10) The term ``public offering'' means an underwritten offering to the public of the common stock of the private corporation pursuant to section 3104. (11) The ``Russian HEU Agreement'' means the Agreement Between the Government of the United States of America and the Government of the Russian Federation Concerning the Disposition of Highly Enriched Uranium Extracted from Nuclear Weapons, dated February 18, 1993. (12) The term ``Secretary'' means the Secretary of Energy. (13) The ``Suspension Agreement'' means the Agreement to Suspend the Antidumping Investigation on Uranium from the Russian Federation, as amended. (14) The term ``uranium enrichment'' means the separation of uranium of a given isotopic content into 2 components, 1 having a higher percentage of a fissile isotope and 1 having a lower percentage.

(a) Authorization.--The Board of Directors of the Corporation, with the approval of the Secretary of the Treasury, shall transfer the interest of the United States in the United States Enrichment Corporation to the private sector in a manner that provides for the long-term viability of the Corporation, provides for the continuation by the Corporation of the operation of the Department of Energy's gaseous diffusion plants, provides for the protection of the public interest in maintaining a reliable and economical domestic source of uranium mining, enrichment and conversion services, and, to the extent not inconsistent with such purposes, secures the maximum proceeds to the United States. (b) Proceeds.--Proceeds from the sale of the United States' interest in the Corporation shall be deposited in the general fund of the Treasury.

(a) Authorization.--The Board of Directors of the Corporation, with the approval of the Secretary of the Treasury, shall transfer ownership of the assets and obligations of the Corporation to the private corporation established under section 3105 (which may be consummated through a merger or consolidation effected in accordance with, and having the effects provided under, the law of the

State of incorporation of the private corporation, as if the Corporation were incorporated thereunder). (b) Board Determination.--The Board, with the approval of the Secretary of the Treasury, shall select the method of transfer and establish terms and conditions for the transfer that will provide the maximum proceeds to the Treasury of the United States and will provide for the long-term viability of the private corporation, the continued operation of the gaseous diffusion plants, and the public interest in maintaining reliable and economical domestic uranium mining and enrichment industries.

(c) Adequate Proceeds.--The Secretary of the Treasury shall not allow the privatization of the Corporation unless before the sale date the Secretary of the Treasury determines that the method of transfer will provide the maximum proceeds to the Treasury consistent with the principles set forth in section 3103(a). (d) Application of Securities Laws.--Any offering or sale of securities by the private corporation shall be subject to the Securities Act of 1933 (15 U.S.C. 77a et seq.), the Securities Exchange Act of 1934 (15 U.S.C. 78a et seq.), and the provisions of the Constitution and laws of any State, territory, or possession of the United States relating to transactions in securities. (e) Expenses.--Expenses of privatization shall be paid from Corporation revenue accounts in the United States Treasury.

CORPORATION.

(a) Incorporation.--(1) The directors of the Corporation shall establish a private for-profit corporation under the laws of a State for the purpose of receiving the assets and obligations of the Corporation at privatization and continuing the business operations of the Corporation following privatization. (2) The directors of the Corporation may serve as incorporators of the private corporation and shall take all steps necessary to establish the private corporation, including the filing of articles of incorporation consistent with the provisions of this subchapter. (3) Employees and officers of the Corporation (including members of the Board of Directors) acting in accordance with this section on behalf of the private corporation shall be deemed to be acting in their official capacities as employees or officers of the Corporation for purposes of section 205 of title 18, United States Code. (b) Status of the Private Corporation.--(1) The private corporation shall not be an agency, instrumentality, or establishment of the United States, a Government corporation, or a Government-controlled corporation. (2) Except as otherwise provided by this subchapter, financial obligations of the private corporation shall not be obligations of, or guaranteed as to principal or interest by, the Corporation or the United States, and the obligations shall so plainly state. (3) No action under section 1491 of title 28, United States Code, shall be allowable against the United States based on actions of the private corporation. (c) Application of Post-Government Employment Restrictions.-- Beginning on the privatization date, the restrictions stated in section 207 (a), (b), (c), and (d) of title 18, United States Code, shall not apply to the acts of an individual done in carrying out official duties as a director, officer, or employee of the private corporation, if the individual was an officer or employee of the

Corporation (including a director) continuously during the 45 days prior to the privatization date. (d) Dissolution.--In the event that the privatization does not occur, the Corporation will provide for the dissolution of the private corporation within 1 year of the private corporation's incorporation unless the Secretary of the Treasury or his delegate, upon the Corporation's request, agrees to delay any such dissolution for an additional year.

CORPORATION.

Concurrent with privatization, the Corporation shall transfer to the private corporation-- (1) the lease of the gaseous diffusion plants in accordance with section 3107, (2) all personal property and inventories of the Corporation, (3) all contracts, agreements, and leases under section 3108(a), (4) the Corporation's right to purchase power from the Secretary under section 3108(b), (5) such funds in accounts of the Corporation held by the Treasury or on deposit with any bank or other financial institution as approved by the Secretary of the Treasury, and (6) all of the Corporation's records, including all of the papers and other documentary materials, regardless of physical form or characteristics, made or received by the Corporation.

FACILITIES.

(a) Transfer of Lease.--Concurrent with privatization, the Corporation shall transfer to the private corporation the lease of the gaseous diffusion plants and related property for the remainder of the term of such lease in accordance with the terms of such lease. (b) Renewal.--The private corporation shall have the exclusive option to lease the gaseous diffusion plants and related property for additional periods following the expiration of the initial term of the lease. (c) Exclusion of Facilities for Production of Highly Enriched Uranium.--The Secretary shall not lease to the private corporation any facilities necessary for the production of highly enriched uranium but may, subject to the requirements of the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.), grant the Corporation access to such facilities for purposes other than the production of highly enriched uranium.

(d) DOE Responsibility for Preexisting Conditions.--The payment of any costs of decontamination and decommissioning, response actions, or corrective actions with respect to conditions existing before July 1, 1993, at the gaseous diffusion plants shall remain the sole responsibility of the Secretary. (e) Environmental Audit.--For purposes of subsection (d), the conditions existing before July 1, 1993, at the gaseous diffusion plants shall be determined from the environmental audit conducted pursuant to section 1403(e) of the Atomic Energy Act of 1954 (42 U.S.C. 2297c-2(e)). (f) Treatment Under Price-Anderson Provisions.--Any lease executed between the Secretary and the Corporation or the private corporation, and any extension or renewal thereof, under this section shall be deemed to be a contract for purposes of section 170d. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)).

(g) Waiver of EIS Requirement.--The execution or transfer of the lease between the Secretary and the Corporation or the private corporation, and any extension or renewal thereof, shall not be considered to be a major Federal action significantly affecting the quality of the human environment for purposes of section 102 of the National Environmental Policy Act of 1969 (42 U.S.C. 4332).

(a) Transfer of Contracts.--Concurrent with privatization, the Corporation shall transfer to the private corporation all contracts, agreements, and leases, including all uranium enrichment contracts, that were-- (1) transferred by the Secretary to the Corporation pursuant to section 1401(b) of the Atomic Energy Act of 1954 (42 U.S.C. 2297c(b)), or (2) entered into by the Corporation before the privatization date.

(b) Nontransferable Power Contracts.--The Corporation shall transfer to the private corporation the right to purchase power from the Secretary under the power purchase contracts for the gaseous diffusion plants executed by the Secretary before July 1, 1993. The Secretary shall continue to receive power for the gaseous diffusion plants under such contracts and shall continue to resell such power to the private corporation at cost during the term of such contracts. (c) Effect of Transfer.--(1) Notwithstanding subsection (a), the United States shall remain obligated to the parties to the contracts, agreements, and leases transferred under subsection (a) for the performance of its obligations under such contracts, agreements, or leases during their terms. Performance of such obligations by the private corporation shall be considered performance by the United States. (2) If a contract, agreement, or lease transferred under subsection (a) is terminated, extended, or materially amended after the privatization date-- (A) the private corporation shall be responsible for any obligation arising under such contract, agreement, or lease after any extension or material amendment, and (B) the United States shall be responsible for any obligation arising under the contract, agreement, or lease before the termination, extension, or material amendment.

(3) The private corporation shall reimburse the United States for any amount paid by the United States under a settlement agreement entered into with the consent of the private corporation or under a judgment, if the settlement or judgment-- (A) arises out of an obligation under a contract, agreement, or lease transferred under subsection (a), and (B) arises out of actions of the private corporation between the privatization date and the date of a termination, extension, or material amendment of such contract, agreement, or lease.

(d) Pricing.--The Corporation may establish prices for its products, materials, and services provided to customers on a basis that will allow it to attain the normal business objectives of a profit making corporation.

(a) Liability of the United States.--(1) Except as otherwise provided in this subchapter, all liabilities arising out of the oper

ation of the uranium enrichment enterprise before July 1, 1993, shall remain the direct liabilities of the Secretary. (2) Except as provided in subsection (a)(3) or otherwise provided in a memorandum of agreement entered into by the Corporation and the Office of Management and Budget prior to the privatization date, all liabilities arising out of the operation of the Corporation between July 1, 1993, and the privatization date shall remain the direct liabilities of the United States. (3) All liabilities arising out of the disposal of depleted uranium generated by the Corporation between July 1, 1993, and the privatization date shall become the direct liabilities of the Secretary. (4) Any stated or implied consent for the United States, or any agent or officer of the United States, to be sued by any person for any legal, equitable, or other relief with respect to any claim arising from any action taken by any agent or officer of the United States in connection with the privatization of the Corporation is hereby withdrawn. (5) To the extent that any claim against the United States under this section is of the type otherwise required by Federal statute or regulation to be presented to a Federal agency or official for adjudication or review, such claim shall be presented to the Department of Energy in accordance with procedures to be established by the Secretary. Nothing in this paragraph shall be construed to impose on the Department of Energy liability to pay any claim presented pursuant to this paragraph. (6) The Attorney General shall represent the United States in any action seeking to impose liability under this subsection. (b) Liability of the Corporation.--Notwithstanding any provision of any agreement to which the Corporation is a party, the Corporation shall not be considered in breach, default, or violation of any agreement because of the transfer of such agreement to the private corporation under section 3108 or any other action the Corporation is required to take under this subchapter. (c) Liability of the Private Corporation.--Except as provided in this subchapter, the private corporation shall be liable for any liabilities arising out of its operations after the privatization date. (d) Liability of Officers and Directors.--(1) No officer, director, employee, or agent of the Corporation shall be liable in any civil proceeding to any party in connection with any action taken in connection with the privatization if, with respect to the subject matter of the action, suit, or proceeding, such person was acting within the scope of his employment. (2) This subsection shall not apply to claims arising under the Securities Act of 1933 (15 U.S.C. 77a. et seq.), the Securities Exchange Act of 1934 (15 U.S.C. 78a. et seq.), or under the Constitution or laws of any State, territory, or possession of the United States relating to transactions in securities.

(a) Contractor Employees.--(1) Privatization shall not diminish the accrued, vested pension benefits of employees of the Corporation's operating contractor at the two gaseous diffusion plants. (2) In the event that the private corporation terminates or changes the contractor at either or both of the gaseous diffusion plants, the plan sponsor or other appropriate fiduciary of the pension plan covering employees of the prior operating contractor shall

arrange for the transfer of all plan assets and liabilities relating to accrued pension benefits of such plan's participants and beneficiaries from such plant to a pension plan sponsored by the new contractor or the private corporation or a joint labor-management plan, as the case may be. (3) In addition to any obligations arising under the National Labor Relations Act (29 U.S.C. 151 et seq.), any employer (including the private corporation if it operates a gaseous diffusion plant without a contractor or any contractor of the private corporation) at a gaseous diffusion plant shall-- (A) abide by the terms of any unexpired collective bargaining agreement covering employees in bargaining units at the plant and in effect on the privatization date until the stated expiration or termination date of the agreement; or (B) in the event a collective bargaining agreement is not in effect upon the privatization date, have the same bargaining obligations under section 8(d) of the National Labor Relations Act (29 U.S.C. 158(d)) as it had immediately before the privatization date.

(4) If the private corporation replaces its operating contractor at a gaseous diffusion plant, the new employer (including the new contractor or the private corporation if it operates a gaseous diffusion plant without a contractor) shall-- (A) offer employment to non-management employees of the predecessor contractor to the extent that their jobs still exist or they are qualified for new jobs, and (B) abide by the terms of the predecessor contractor's collective bargaining agreement until the agreement expires or a new agreement is signed.

(5) In the event of a plant closing or mass layoff (as such terms are defined in section 2101(a) (2) and (3) of title 29, United States Code) at either of the gaseous diffusion plants, the Secretary of Energy shall treat any adversely affected employee of an operating contractor at either plant who was an employee at such plant on July 1, 1993, as a Department of Energy employee for purposes of sections 3161 and 3162 of the National Defense Authorization Act for Fiscal Year 1993 (42 U.S.C. 7274h-7274i). (6)(A) The Secretary and the private corporation shall cause the post-retirement health benefits plan provider (or its successor) to continue to provide benefits for eligible persons, as described under subparagraph (B), employed by an operating contractor at either of the gaseous diffusion plants in an economically efficient manner and at substantially the same level of coverage as eligible retirees are entitled to receive on the privatization date. (B) Persons eligible for coverage under subparagraph (A) shall be limited to: (i) persons who retired from active employment at one of the gaseous diffusion plants on or before the privatization date as vested participants in a pension plan maintained either by the Corporation's operating contractor or by a contractor employed prior to July 1, 1993, by the Department of Energy to operate a gaseous diffusion plant; and (ii) persons who are employed by the Corporation's operating contractor on or before the privatization date and are vested participants in a pension plan maintained either by the Corporation's operating contractor or by a contractor employed

prior to July 1, 1993, by the Department of Energy to operate a gaseous diffusion plant.

(C) The Secretary shall fund the entire cost of post-retirement health benefits for persons who retired from employment with an operating contractor prior to July 1, 1993. (D) The Secretary and the Corporation shall fund the cost of post- retirement health benefits for persons who retire from employment with an operating contractor on or after July 1, 1993, in proportion to the retired person's years and months of service at a gaseous diffusion plant under their respective management. (7)(A) Any suit under this subsection alleging a violation of an agreement between an employer and a labor organization shall be brought in accordance with section 301 of the Labor Management Relations Act (29 U.S.C. 185). (B) Any charge under this subsection alleging an unfair labor practice violative of section 8 of the National Labor Relations Act (29 U.S.C. 158) shall be pursued in accordance with section 10 of the National Labor Relations Act (29 U.S.C. 160). (C) Any suit alleging a violation of any provision of this subsection, to the extent it does not allege a violation of the National Labor Relations Act, may be brought in any district court of the United States having jurisdiction over the parties, without regard to the amount in controversy or the citizenship of the parties. (b) Former Federal Employees.--(1)(A) An employee of the Corporation that was subject to either the Civil Service Retirement System (referred to in this section as ``CSRS'') or the Federal Employees' Retirement System (referred to in this section as ``FERS'') on the day immediately preceding the privatization date shall elect-- (i) to retain the employee's coverage under either CSRS or FERS, as applicable, in lieu of coverage by the Corporation's retirement system, or (ii) to receive a deferred annuity or lump-sum benefit payable to a terminated employee under CSRS or FERS, as applicable.

(B) An employee that makes the election under subparagraph (A)(ii) shall have the option to transfer the balance in the employee's Thrift Savings Plan account to a defined contribution plan under the Corporation's retirement system, consistent with applicable law and the terms of the Corporation's defined contribution plan. (2) The Corporation shall pay to the Civil Service Retirement and Disability Fund-- (A) such employee deductions and agency contributions as are required by sections 8334, 8422, and 8423 of title 5, United States Code, for those employees who elect to retain their coverage under either CSRS or FERS pursuant to paragraph (1); (B) such additional agency contributions as are determined necessary by the Office of Personnel Management to pay, in combination with the sums under subparagraph (A), the ``normal cost'' (determined using dynamic assumptions) of retirement benefits for those employees who elect to retain their coverage under CSRS pursuant to paragraph (1), with the concept of ``normal cost'' being used consistent with generally accepted actuarial standards and principles; and (C) such additional amounts, not to exceed two percent of the amounts under subparagraphs (A) and (B), as are deter

mined necessary by the Office of Personnel Management to pay the cost of administering retirement benefits for employees who retire from the Corporation after the privatization date under either CSRS or FERS, for their survivors, and for survivors of employees of the Corporation who die after the privatization date (which amounts shall be available to the Office of Personnel Management as provided in section 8348(a)(1)(B) of title 5, United States Code).

(3) The Corporation shall pay to the Thrift Savings Fund such employee and agency contributions as are required by section 8432 of title 5, United States Code, for those employees who elect to retain their coverage under FERS pursuant to paragraph (1). (4) Any employee of the Corporation who was subject to the Federal Employee Health Benefits Program (referred to in this section as ``FEHBP'') on the day immediately preceding the privatization date and who elects to retain coverage under either CSRS or FERS pursuant to paragraph (1) shall have the option to receive health benefits from a health benefit plan established by the Corporation or to continue without interruption coverage under the FEHBP, in lieu of coverage by the Corporation's health benefit system. (5) The Corporation shall pay to the Employees Health Benefits Fund-- (A) such employee deductions and agency contributions as are required by section 8906 (a)-(f) of title 5, United States Code, for those employees who elect to retain their coverage under FEHBP pursuant to paragraph (4); and (B) such amounts as are determined necessary by the Office of Personnel Management under paragraph (6) to reimburse the Office of Personnel Management for contributions under section 8906(g)(1) of title 5, United States Code, for those employees who elect to retain their coverage under FEHBP pursuant to paragraph (4).

(6) The amounts required under paragraph (5)(B) shall pay the Government contributions for retired employees who retire from the Corporation after the privatization date under either CSRS or FERS, for survivors of such retired employees, and for survivors of employees of the Corporation who die after the privatization date, with said amounts prorated to reflect only that portion of the total service of such employees and retired persons that was performed for the Corporation after the privatization date.

(a) Securities Limitations.--No director, officer, or employee of the Corporation may acquire any securities, or any rights to acquire any securities of the private corporation on terms more favorable than those offered to the general public-- (1) in a public offering designed to transfer ownership of the Corporation to private investors, (2) pursuant to any agreement, arrangement, or understanding entered into before the privatization date, or (3) before the election of the directors of the private corporation.

(b) Ownership Limitation.--Immediately following the consummation of the transaction or series of transactions pursuant to which 100 percent of the ownership of the Corporation is transferred to private investors, and for a period of three years thereafter,

no person may acquire, directly or indirectly, beneficial ownership of securities representing more than 10 percent of the total votes of all outstanding voting securities of the Corporation. The foregoing limitation shall not apply to-- (1) any employee stock ownership plan of the Corporation, (2) members of the underwriting syndicate purchasing shares in stabilization transactions in connection with the privatization, or (3) in the case of shares beneficially held in the ordinary course of business for others, any commercial bank, broker- dealer, or clearing agency.

(a) Transfers and Sales by the Secretary.--The Secretary shall not provide enrichment services or transfer or sell any uranium (including natural uranium concentrates, natural uranium hexafluoride, or enriched uranium in any form) to any person except as consistent with this section. (b) Russian HEU.--(1) On or before December 31, 1996, the United States Executive Agent under the Russian HEU Agreement shall transfer to the Secretary without charge title to an amount of uranium hexafluoride equivalent to the natural uranium component of low-enriched uranium derived from at least 18 metric tons of highly enriched uranium purchased from the Russian Executive Agent under the Russian HEU Agreement. The quantity of such uranium hexafluoride delivered to the Secretary shall be based on a tails assay of 0.30 U\235\. Uranium hexafluoride transferred to the Secretary pursuant to this paragraph shall be deemed under United States law for all purposes to be of Russian origin. (2) Within 7 years of the date of enactment of this Act, the Secretary shall sell, and receive payment for, the uranium hexafluoride transferred to the Secretary pursuant to paragraph (1). Such uranium hexafluoride shall be sold-- (A) at any time for use in the United States for the purpose of overfeeding; (B) at any time for end use outside the United States; (C) in 1995 and 1996 to the Russian Executive Agent at the purchase price for use in matched sales pursuant to the Suspension Agreement; or, (D) in calendar year 2001 for consumption by end users in the United States not prior to January 1, 2002, in volumes not to exceed 3,000,000 pounds U<INF>3</INF>O<INF>8</INF> equivalent per year.

(3) With respect to all enriched uranium delivered to the United States Executive Agent under the Russian HEU Agreement on or after January 1, 1997, the United States Executive Agent shall, upon request of the Russian Executive Agent, enter into an agreement to deliver concurrently to the Russian Executive Agent an amount of uranium hexafluoride equivalent to the natural uranium component of such uranium. An agreement executed pursuant to a request of the Russian Executive Agent, as contemplated in this paragraph, may pertain to any deliveries due during any period remaining under the Russian HEU Agreement. The quantity of such uranium hexafluoride delivered to the Russian Executive Agent shall be based on a tails assay of 0.30 U\235\. Title to uranium hexafluoride delivered to the Russian Executive Agent pursuant to this paragraph shall transfer to the Russian Executive Agent upon delivery of such material to the Russian Executive Agent,

with such delivery to take place at a North American facility designated by the Russian Executive Agent. Uranium hexafluoride delivered to the Russian Executive Agent pursuant to this paragraph shall be deemed under U.S. law for all purposes to be of Russian origin. Such uranium hexafluoride may be sold to any person or entity for delivery and use in the United States only as permitted in subsections (b)(5), (b)(6) and (b)(7) of this section. (4) In the event that the Russian Executive Agent does not exercise its right to enter into an agreement to take delivery of the natural uranium component of any low-enriched uranium, as contemplated in paragraph (3), within 90 days of the date such low-enriched uranium is delivered to the United States Executive Agent, or upon request of the Russian Executive Agent, then the United States Executive Agent shall engage an independent entity through a competitive selection process to auction an amount of uranium hexafluoride or U<INF>3</INF>O<INF>8</INF> (in the event that the conversion component of such hexafluoride has previously been sold) equivalent to the natural uranium component of such low-enriched uranium. An agreement executed pursuant to a request of the Russian Executive Agent, as contemplated in this paragraph, may pertain to any deliveries due during any period remaining under the Russian HEU Agreement. Such independent entity shall sell such uranium hexafluoride in one or more lots to any person or entity to maximize the proceeds from such sales, for disposition consistent with the limitations set forth in this subsection. The independent entity shall pay to the Russian Executive Agent the proceeds of any such auction less all reasonable transaction and other administrative costs. The quantity of such uranium hexafluoride auctioned shall be based on a tails assay of 0.30 U\235\. Title to uranium hexafluoride auctioned pursuant to this paragraph shall transfer to the buyer of such material upon delivery of such material to the buyer. Uranium hexafluoride auctioned pursuant to this paragraph shall be deemed under United States law for all purposes to be of Russian origin.

(5) Except as provided in paragraphs (6) and (7), uranium hexafluoride delivered to the Russian Executive Agent under paragraph (3) or auctioned pursuant to paragraph (4), may not be delivered for consumption by end users in the United States either directly or indirectly prior to January 1, 1998, and thereafter only in accordance with the following schedule:

Annual Maximum Deliveries to End Users

(millions lbs. U<INF>3</INF>O<INF>8</INF> equivalent) Year: 1998.................................................. 2 1999.................................................. 4 2000.................................................. 6 2001.................................................. 8 2002.................................................. 10 2003.................................................. 12 2004.................................................. 14 2005.................................................. 16 2006.................................................. 17 2007.................................................. 18 2008.................................................. 19 2009 and each year thereafter......................... 20.

(6) Uranium hexafluoride delivered to the Russian Executive Agent under paragraph (3) or auctioned pursuant to paragraph (4) may be sold at any time as Russian-origin natural uranium

in a matched sale pursuant to the Suspension Agreement, and in such case shall not be counted against the annual maximum deliveries set forth in paragraph (5). (7) Uranium hexafluoride delivered to the Russian Executive Agent under paragraph (3) or auctioned pursuant to paragraph (4) may be sold at any time for use in the United States for the purpose of overfeeding in the operations of enrichment facilities. (8) Nothing in this subsection (b) shall restrict the sale of the conversion component of such uranium hexafluoride. (9) The Secretary of Commerce shall have responsibility for the administration and enforcement of the limitations set forth in this subsection. The Secretary of Commerce may require any person to provide any certifications, information, or take any action that may be necessary to enforce these limitations. The United States Customs Service shall maintain and provide any information required by the Secretary of Commerce and shall take any action requested by the Secretary of Commerce which is necessary for the administration and enforcement of the uranium delivery limitations set forth in this section. (10) The President shall monitor the actions of the United States Executive Agent under the Russian HEU Agreement and shall report to the Congress not later than December 31 of each year on the effect the low-enriched uranium delivered under the Russian HEU Agreement is having on the domestic uranium mining, conversion, and enrichment industries, and the operation of the gaseous diffusion plants. Such report shall include a description of actions taken or proposed to be taken by the President to prevent or mitigate any material adverse impact on such industries or any loss of employment at the gaseous diffusion plants as a result of the Russian HEU Agreement.

(c) Transfers to the Corporation.--(1) The Secretary shall transfer to the Corporation without charge up to 50 metric tons of enriched uranium and up to 7,000 metric tons of natural uranium from the Department of Energy's stockpile, subject to the restrictions in subsection (c)(2). (2) The Corporation shall not deliver for commercial end use in the United States-- (A) any of the uranium transferred under this subsection before January 1, 1998; (B) more than 10 percent of the uranium (by uranium hexafluoride equivalent content) transferred under this subsection or more than 4,000,000 pounds, whichever is less, in any calendar year after 1997; or (C) more than 800,000 separative work units contained in low-enriched uranium transferred under this subsection in any calendar year.

(d) Inventory Sales.--(1) In addition to the transfers authorized under subsections (c) and (e), the Secretary may, from time to time, sell natural and low-enriched uranium (including low-enriched uranium derived from highly enriched uranium) from the Department of Energy's stockpile.

(2) Except as provided in subsections (b), (c), and (e), no sale or transfer of natural or low-enriched uranium shall be made unless-- (A) the President determines that the material is not necessary for national security needs,

(B) the Secretary determines that the sale of the material will not have an adverse material impact on the domestic uranium mining, conversion, or enrichment industry, taking into account the sales of uranium under the Russian HEU Agreement and the Suspension Agreement, and (C) the price paid to the Secretary will not be less than the fair market value of the material.

(e) Government Transfers.--Notwithstanding subsection (d)(2), the Secretary may transfer or sell enriched uranium-- (1) to a Federal agency if the material is transferred for the use of the receiving agency without any resale or transfer to another entity and the material does not meet commercial specifications; (2) to any person for national security purposes, as determined by the Secretary; or (3) to any State or local agency or nonprofit, charitable, or educational institution for use other than the generation of electricity for commercial use.

(f) Savings Provision.--Nothing in this subchapter shall be read to modify the terms of the Russian HEU Agreement.

(a) Responsibility of DOE.--(1) The Secretary, at the request of the generator, shall accept for disposal low-level radioactive waste, including depleted uranium if it were ultimately determined to be low- level radioactive waste, generated by-- (A) the Corporation as a result of the operations of the gaseous diffusion plants or as a result of the treatment of such wastes at a location other than the gaseous diffusion plants, or (B) any person licensed by the Nuclear Regulatory Commission to operate a uranium enrichment facility under sections 53, 63, and 193 of the Atomic Energy Act of 1954 (42 U.S.C. 2073, 2093, and 2243).

(2) Except as provided in paragraph (3), the generator shall reimburse the Secretary for the disposal of low-level radioactive waste pursuant to paragraph (1) in an amount equal to the Secretary's costs, including a pro rata share of any capital costs, but in no event more than an amount equal to that which would be charged by commercial, State, regional, or interstate compact entities for disposal of such waste. (3) In the event depleted uranium were ultimately determined to be low-level radioactive waste, the generator shall reimburse the Secretary for the disposal of depleted uranium pursuant to paragraph (1) in an amount equal to the Secretary's costs, including a pro rata share of any capital costs. (b) Agreements With Other Persons.--The generator may also enter into agreements for the disposal of low-level radioactive waste subject to subsection (a) with any person other than the Secretary that is authorized by applicable laws and regulations to dispose of such wastes. (c) State or Interstate Compacts.--Notwithstanding any other provision of law, no State or interstate compact shall be liable for the treatment, storage, or disposal of any low-level radioactive waste (including mixed waste) attributable to the operation, decontamination, and decommissioning of any uranium enrichment facility.

(a) Exclusive Right to Commercialize.--The Corporation shall have the exclusive commercial right to deploy and use any AVLIS patents, processes, and technical information owned or controlled by the Government, upon completion of a royalty agreement with the Secretary. (b) Transfer of Related Property to Corporation.-- (1) In general.--To the extent requested by the Corporation and subject to the requirements of the Atomic Energy Act of 1954 (42 U.S.C. 2011, et seq.), the President shall transfer without charge to the Corporation all of the right, title, or interest in and to property owned by the United States under control or custody of the Secretary that is directly related to and materially useful in the performance of the Corporation's purposes regarding AVLIS and alternative technologies for uranium enrichment, including-- (A) facilities, equipment, and materials for research, development, and demonstration activities; and (B) all other facilities, equipment, materials, processes, patents, technical information of any kind, contracts, agreements, and leases. (2) Exception.--Facilities, real estate, improvements, and equipment related to the gaseous diffusion, and gas centrifuge, uranium enrichment programs of the Secretary shall not transfer under paragraph (1)(B). (3) Expiration of transfer authority.--The President's authority to transfer property under this subsection shall expire upon the privatization date.

(c) Liability for Patent and Related Claims.--With respect to any right, title, or interest provided to the Corporation under subsection (a) or (b), the Corporation shall have sole liability for any payments made or awards under section 157b.(3) of the Atomic Energy Act of 1954 (42 U.S.C. 2187(b)(3)), or any settlements or judgments involving claims for alleged patent infringement. Any royalty agreement under subsection (a) of this section shall provide for a reduction of royalty payments to the Secretary to offset any payments, awards, settlements, or judgments under this subsection.

(a) OSHA.--(1) As of the privatization date, the private corporation shall be subject to and comply with the Occupational Safety and Health Act of 1970 (29 U.S.C. 651 et seq.). (2) The Nuclear Regulatory Commission and the Occupational Safety and Health Administration shall, within 90 days after the date of enactment of this Act, enter into a memorandum of agreement to govern the exercise of their authority over occupational safety and health hazards at the gaseous diffusion plants, including inspection, investigation, enforcement, and rulemaking relating to such hazards.

(b) Antitrust Laws.--For purposes of the antitrust laws, the performance by the private corporation of a ``matched import'' contract under the Suspension Agreement shall be considered to have occurred prior to the privatization date, if at the time of privatization, such contract had been agreed to by the parties in all material terms and confirmed by the Secretary of Commerce under the Suspension Agreement.

(c) Energy Reorganization Act Requirements.--(1) The private corporation and its contractors and subcontractors shall be subject to the provisions of section 211 of the Energy Reorganization Act of 1974 (42 U.S.C. 5851) to the same extent as an employer subject to such section. (2) With respect to the operation of the facilities leased by the private corporation, section 206 of the Energy Reorganization Act of 1974 (42 U.S.C. 5846) shall apply to the directors and officers of the private corporation.

(a) Repeal.--(1) Chapters 22 through 26 of the Atomic Energy Act of 1954 (42 U.S.C. 2297-2297e-7) are repealed as of the privatization date.

(2) The table of contents of such Act is amended as of the privatization date by striking the items referring to sections repealed by paragraph (1). (b) NRC Licensing.--(1) Section 11v. of the Atomic Energy Act of 1954 (42 U.S.C. 2014v.) is amended by striking ``or the construction and operation of a uranium enrichment facility using Atomic Vapor Laser Isotope Separation technology''. (2) Section 193 of the Atomic Energy Act of 1954 (42 U.S.C. 2243) is amended by adding at the end the following: ``(f) Limitation.--No license or certificate of compliance may be issued to the United States Enrichment Corporation or its successor under this section or sections 53, 63, or 1701, if the Commission determines that-- ``(1) the Corporation is owned, controlled, or dominated by an alien, a foreign corporation, or a foreign government; or ``(2) the issuance of such a license or certificate of compliance would be inimical to-- ``(A) the common defense and security of the United States; or ``(B) the maintenance of a reliable and economical domestic source of enrichment services.''.

(3) Section 1701(c)(2) of the Atomic Energy Act of 1954 (42 U.S.C. 2297f(c)(2)) is amended to read as follows: ``(2) Periodic application for certificate of compliance.-- The Corporation shall apply to the Nuclear Regulatory Commission for a certificate of compliance under paragraph (1) periodically, as determined by the Commission, but not less than every 5 years. The Commission shall review any such application and any determination made under subsection (b)(2) shall be based on the results of any such review.''.

(4) Section 1702(a) of the Atomic Energy Act of 1954 (42 U.S.C. 2297f-1(a)) is amended-- (1) by striking ``other than'' and inserting ``including'', and (2) by striking ``sections 53 and 63'' and inserting ``sections 53, 63, and 193''.

(c) Judicial Review of NRC Actions.--Section 189b. of the Atomic Energy Act of 1954 (42 U.S.C. 2239(b)) is amended to read as follows: ``b. The following Commission actions shall be subject to judicial review in the manner prescribed in chapter 158 of title 28, United States Code, and chapter 7 of title 5, United States Code:

``(1) Any final order entered in any proceeding of the kind specified in subsection (a). ``(2) Any final order allowing or prohibiting a facility to begin operating under a combined construction and operating license. ``(3) Any final order establishing by regulation standards to govern the Department of Energy's gaseous diffusion uranium enrichment plants, including any such facilities leased to a corporation established under the USEC Privatization Act. ``(4) Any final determination under section 1701(c) relating to whether the gaseous diffusion plants, including any such facilities leased to a corporation established under the USEC Privatization Act, are in compliance with the Commission's standards governing the gaseous diffusion plants and all applicable laws.''.

(d) Civil Penalties.--Section 234 a. of the Atomic Energy Act of 1954 (42 U.S.C. 2282(a) is amended by-- (1) striking ``any licensing provision of section 53, 57, 62, 63, 81, 82, 101, 103, 104, 107, or 109'' and inserting: ``any licensing or certification provision of section 53, 57, 62, 63, 81, 82, 101, 103, 104, 107, 109, or 1701''; and (2) by striking ``any license issued thereunder'' and inserting: ``any license or certification issued thereunder''.

(e) References to the Corporation.-- Following the privatization date, all references in the Atomic Energy Act of 1954 to the United States Enrichment Corporation shall be deemed to be references to the private corporation.

(a) Definition of Government Corporation.--As of the privatization date, section 9101(3) of title 31, United States Code, is amended by striking subparagraph (N) as added by section 902(b) of Public Law 102- 486. (b) Definition of the Corporation.--Section 1018(1) of the Energy Policy Act of 1992 (42 U.S.C. 2296b-7(1)) is amended by inserting ``or its successor'' before the period.

SUBCHAPTER B

REFINANCING.

(a) Definitions.-- For the purposes of this section-- (1) ``Administrator'' means the Administrator of the Bonneville Power Administration; (2) ``capital investment'' means a capitalized cost funded by Federal appropriations that-- (A) is for a project, facility, or separable unit or feature of a project or facility; (B) is a cost for which the Administrator is required by law to establish rates to repay to the United States Treasury through the sale of electric power, transmission, or other services; (C) excludes a Federal irrigation investment; and (D) excludes an investment financed by the current revenues of the Administrator or by bonds issued and sold, or authorized to be issued and sold, by the

Administrator under section 13 of the Federal Columbia River Transmission System Act (16 U.S.C. 838k); (3) ``new capital investment'' means a capital investment for a project, facility, or separable unit or feature of a project or facility, placed in service after September 30, 1996; (4) ``old capital investment'' means a capital investment the capitalized cost of which-- (A) was incurred, but not repaid, before October 1, 1996, and (B) was for a project, facility, or separable unit or feature of a project or facility, placed in service before October 1, 1996; (5) ``repayment date'' means the end of the period within which the Administrator's rates are to assure the repayment of the principal amount of a capital investment; and (6) ``Treasury rate'' means-- (A) for an old capital investment, a rate determined by the Secretary of the Treasury, taking into consideration prevailing market yields, during the month preceding October 1, 1996, on outstanding interest-bearing obligations of the United States with periods to maturity comparable to the period between October 1, 1996, and the repayment date for the old capital investment; and (B) for a new capital investment, a rate determined by the Secretary of the Treasury, taking into consideration prevailing market yields, during the month preceding the beginning of the fiscal year in which the related project, facility, or separable unit or feature is placed in service, on outstanding interest-bearing obligations of the United States with periods to maturity comparable to the period between the beginning of the fiscal year and the repayment date for the new capital investment.

(b) New Principal Amounts.-- (1) Principal amount.--Effective October 1, 1996, an old capital investment has a new principal amount that is the sum of-- (A) the present value of the old payment amounts for the old capital investment, calculated using a discount rate equal to the Treasury rate for the old capital investment; and (B) an amount equal to $100,000,000 multiplied by a fraction whose numerator is the principal amount of the old payment amounts for the old capital investment and whose denominator is the sum of the principal amounts of the old payment amounts for all old capital investments. (2) Determination.--With the approval of the Secretary of the Treasury based solely on consistency with this section, the Administrator shall determine the new principal amounts under subsection (b) and the assignment of interest rates to the new principal amounts under subsection (c). (3) Old payment amounts.--For the purposes of this subsection, ``old payment amounts'' means, for an old capital investment, the annual interest and principal that the Administrator

would have paid to the United States Treasury from October 1, 1996, if this section had not been enacted, assuming that-- (A) the principal were repaid-- (i) on the repayment date the Administrator assigned before October 1, 1994, to the old capital investment, or (ii) with respect to an old capital investment for which the Administrator has not assigned a repayment date before October 1, 1994, on a repayment date the Administrator shall assign to the old capital investment in accordance with paragraph 10(d)(1) of the version of Department of Energy Order RA 6120.2 in effect on October 1, 1994; and (B) interest were paid-- (i) at the interest rate the Administrator assigned before October 1, 1994, to the old capital investment, or (ii) with respect to an old capital investment for which the Administrator has not assigned an interest rate before October 1, 1994, at a rate determined by the Secretary of the Treasury, taking into consideration prevailing market yields, during the month preceding the beginning of the fiscal year in which the related project, facility, or separable unit or feature is placed in service, on outstanding interest-bearing obligations of the United States with periods to maturity comparable to the period between the beginning of the fiscal year and the repayment date for the old capital investment.

(c) Interest Rate for New Principal Amounts.-- As of October 1, 1996, the unpaid balance on the new principal amount established for an old capital investment under subsection (b) bears interest annually at the Treasury rate for the old capital investment until the earlier of the date that the new principal amount is repaid or the repayment date for the new principal amount.

(d) Repayment Dates.-- As of October 1, 1996, the repayment date for the new principal amount established for an old capital investment under subsection (b) is no earlier than the repayment date for the old capital investment assumed in subsection (b)(3)(A).

(e) Prepayment Limitations.-- During the period October 1, 1996, through September 30, 2001, the total new principal amounts of old capital investments, as established under subsection (b), that the Administrator may pay before their respective repayment dates shall not exceed $100,000,000.

(f) Interest Rates for New Capital Investments During Construction.-- (1) New capital investment.--The principal amount of a new capital investment includes interest in each fiscal year of construction of the related project, facility, or separable unit or feature at a rate equal to the one-year rate for the fiscal year on the sum of-- (A) construction expenditures that were made from the date construction commenced through the end of the fiscal year, and

(B) accrued interest during construction. (2) Payment.--The Administrator is not required to pay, during construction of the project, facility, or separable unit or feature, the interest calculated, accrued, and capitalized under subsection (f)(1). (3) One-year rate.--For the purposes of this section, ``one- year rate'' for a fiscal year means a rate determined by the Secretary of the Treasury, taking into consideration prevailing market yields, during the month preceding the beginning of the fiscal year, on outstanding interest-bearing obligations of the United States with periods to maturity of approximately one year.

(g) Interest Rates for New Capital Investments.-- The unpaid balance on the principal amount of a new capital investment bears interest at the Treasury rate for the new capital investment from the date the related project, facility, or separable unit or feature is placed in service until the earlier of the date the new capital investment is repaid or the repayment date for the new capital investment.

(h) Credits to Administrator's Repayment to the United States Treasury.-- The Confederated Tribe of the Colville Reservation Grand Coulee Dam Settlement Act (Public Law No. 103-436; 108 Stat. 4577) is amended by striking section 6 and inserting the following: ``SEC. 6. CREDITS TO ADMINISTRATOR'S REPAYMENT TO THE UNITED STATES TREASURY.

``So long as the Administrator makes annual payments to the tribes under the settlement agreement, the Administrator shall apply against amounts otherwise payable by the Administrator to the United States Treasury a credit that reduces the Administrator's payment, in the amount and for each fiscal year as follows: $15,860,000 in fiscal year 1997; $16,490,000 in fiscal year 1998; $17,150,000 in fiscal year 1999; $17,840,000 in fiscal year 2000; $18,550,000 in fiscal year 2001; and $4,600,000 in each succeeding fiscal year.''. (i) Contract Provisions.-- In each contract of the Administrator that provides for the Administrator to sell electric power, transmission, or related services, and that is in effect after September 30, 1996, the Administrator shall offer to include, or as the case may be, shall offer to amend to include, provisions specifying that after September 30, 1996-- (1) the Administrator shall establish rates and charges on the basis that-- (A) the principal amount of an old capital investment shall be no greater than the new principal amount established under subsection (b); (B) the interest rate applicable to the unpaid balance of the new principal amount of an old capital investment shall be no greater than the interest rate established under subsection (c); (C) any payment of principal of an old capital investment shall reduce the outstanding principal balance of the old capital investment in the amount of the payment at the time the payment is tendered; and

(D) any payment of interest on the unpaid balance of the new principal amount of an old capital investment shall be a credit against the appropriate interest account in the amount of the payment at the time the payment is tendered; (2) apart from charges necessary to repay the new principal amount of an old capital investment as established under subsection (b) and to pay the interest on the principal amount under subsection (c), no amount may be charged for return to the United States Treasury as repayment for or return on an old capital investment, whether by way of rate, rent, lease payment, assessment, user charge, or any other fee; (3) amounts provided under section 1304 of title 31, United States Code, shall be available to pay, and shall be the sole source for payment of, a judgment against or settlement by the Administrator or the United States on a claim for a breach of the contract provisions required by this Part; and (4) the contract provisions specified in this Part do not-- (A) preclude the Administrator from recovering, through rates or other means, any tax that is generally imposed on electric utilities in the United States, or (B) affect the Administrator's authority under applicable law, including section 7(g) of the Pacific Northwest Electric Power Planning and Conservation Act (16 U.S.C. 839e(g)), to-- (i) allocate costs and benefits, including but not limited to fish and wildlife costs, to rates or resources, or (ii) design rates.

(j) Savings Provisions.-- (1) Repayment.--This subchapter does not affect the obligation of the Administrator to repay the principal associated with each capital investment, and to pay interest on the principal, only from the ``Administrator's net proceeds,'' as defined in section 13 of the Federal Columbia River Transmission System Act (16 U.S.C. 838k(b)). (2) Payment of capital investment.--Except as provided in subsection (e), this section does not affect the authority of the Administrator to pay all or a portion of the principal amount associated with a capital investment before the repayment date for the principal amount.

CHAPTER 2

FOREIGN OPERATIONS, EXPORT FINANCING, AND RELATED PROGRAMS

Export and Investment Assistance

Export-Import Bank of the United States

subsidy appropriation

(rescission)

Of the unobligated balances available under this heading $42,000,000 are rescinded.

CHAPTER 3

DEPARTMENT OF THE INTERIOR AND RELATED AGENCIES

DEPARTMENT OF ENERGY

Strategic Petroleum Reserve

Notwithstanding section 161 of the Energy Policy and Conservation Act (42 U.S.C. 6241), the Secretary of Energy shall draw down and sell in fiscal year 1996, $227,000,000 worth of Strategic Petroleum Reserve oil from the Weeks Island site.

CHAPTER 4

DEPARTMENTS OF LABOR, HEALTH AND HUMAN SERVICES, AND EDUCATION

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Administration for Children and Families

job opportunities and basic skills

(rescission)

Of the funds made available under this heading elsewhere in this Act, there is rescinded an amount equal to the total of the funds within each State's limitation for fiscal year 1996 that are not necessary to pay such State's allowable claims for such fiscal year. Section 403(k)(3)(F) of the Social Security Act (as amended by Public Law 100-485) is amended by adding: ``reduced by an amount equal to the total of those funds that are within each State's limitation for fiscal year 1996 that are not necessary to pay such State's allowable claims for such fiscal year (except that such amount for such year shall be deemed to be $1,000,000,000 for the purpose of determining the amount of the payment under subsection (1) to which each State is entitled),''.

DEPARTMENT OF EDUCATION

Student Financial Assistance

Notwithstanding any other provision of this Act, the first and third dollar amounts provided in Title I of this Act under the heading ``Student Financial Assistance'' are hereby reduced by $53,446,000. CHAPTER 5

military construction

(rescissions)

Of the funds provided in Public Law 104-32, the Military Construction Appropriations Act, 1996, the following funds are hereby rescinded from the following accounts in the specified amounts: Military Construction, Army, $6,385,000;

Military Construction, Navy, $6,385,000; Military Construction, Air Force, $6,385,000; and Military Construction, Defense-wide, $18,345,000.

CHAPTER 6

DEPARTMENT OF DEFENSE--MILITARY PROCUREMENT

Missile Procurement, Air Force

(rescission)

Of the funds made available under this heading in Public Law 103- 335, $310,000,000 are rescinded.

Other Procurement, Air Force

(rescission)

Of the funds made available under this heading in Public Law 103- 335, $265,000,000 are rescinded.

RESEARCH, DEVELOPMENT, TEST AND EVALUATION

Research, Development, Test and Evaluation, Army

(rescission)

Of the funds made available under this heading in Public Law 104-61, $19,500,000 are rescinded: Provided, That this reduction shall be applied proportionally to each budget activity, activity group and subactivity group and each program, project, and activity within this appropriation account.

Research, Development, Test and Evaluation, Navy

(rescission)

Of the funds made available under this heading in Public Law 104-61, $45,000,000 are rescinded: Provided, That this reduction shall be applied proportionally to each budget activity, activity group and subactivity group and each program, project, and activity within this appropriation account.

Research, Development, Test and Evaluation, Air Force

(rescissions)

Of the funds made available under this heading in Public Law 103- 335, $245,000,000 are rescinded. Of the funds made available under this heading in Public Law 104-61, $69,800,000 are rescinded: Provided, That this reduction shall be applied proportionally to each budget activity, activity group and subactivity group and each program, project, and activity within this appropriation account.

Research, Development, Test and Evaluation, Defense-Wide

(rescission)

Of the funds made available under this heading in Public Law 104-61, $40,600,000 are rescinded: Provided, That this reduction shall be applied proportionally to each budget activity, activity group and subactivity group and each program, project, and activity within this appropriation account: Provided further, That no reduction may be taken against the funds made available to the Department of Defense for Ballistic Missile Defense.

CHAPTER 7

DEPARTMENT OF TRANSPORTATION

Federal Aviation Administration

grants-in-aid for airports

(airport and airway trust fund)

(rescission of contract authorization)

Of the available contract authority balances under this account, $664,000,000 are rescinded.

Federal Highway Administration

highway-related safety grants

(highway trust fund)

(rescission of contract authorization)

Of the available contract authority balances under this account, $9,000,000 are rescinded.

motor carrier safety grants

(highway trust fund)

(rescission of contract authorization)

Of the available contract authority balances under this account, $33,000,000 are rescinded.

National Highway Traffic Safety Administration

highway traffic safety grants

(highway trust fund)

(rescission of contract authorization)

Of the available contract authority balances under this account, $56,000,000 are rescinded.

CHAPTER 8

TREASURY, POSTAL SERVICE AND GENERAL GOVERNMENT

INDEPENDENT AGENCIES

GENERAL SERVICES ADMINISTRATION

Federal Buildings Fund

limitations on availability of revenue

(rescission)

Of the funds made available for installment acquisition payments under this heading in Public Law 104-52, $3,400,000 are rescinded: Provided, That the aggregate amount made available to the Fund shall be $5,062,749,000.

CHAPTER 9

DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND URBAN DEVELOPMENT AND INDEPENDENT AGENCIES

Federal Emergency Management Agency

disaster relief

Of the funds made available under this heading and under the heading ``Disaster relief emergency contingency fund'' in Public Law 104-19, $1,000,000,000 are rescinded.

CHAPTER 10

DEBT COLLECTION IMPROVEMENTS

COLLECTION IMPROVEMENT ACT OF 1996.

(a)(1) This section may be cited as the ``Debt Collection Improvement Act of 1996''.

(2)(A) In General.--The provisions of this section and the amendments made by this section shall take effect on the date of the enactment of this Act.

(B) Offsets From Social Security Payments, Etc.--Subparagraph (A) of section 3716(c)(3) of title 31, United States Code (as added by subsection (d)(2) of this section), shall apply only to payments made after the date which is 4 months after the date of the enactment of this Act.

(b) The purposes of this section are the following: (1) To maximize collections of delinquent debts owed to the Government by ensuring quick action to enforce recovery of debts and the use of all appropriate collection tools. (2) To minimize the costs of debt collection by consolidating related functions and activities and utilizing interagency teams. (3) To reduce losses arising from debt management activities by requiring proper screening of potential borrowers, aggressive monitoring of all accounts, and sharing of information within and among Federal agencies. (4) To ensure that the public is fully informed of the Federal Government's debt collection policies and that debtors are cog

nizant of their financial obligations to repay amounts owed to the Federal Government. (5) To ensure that debtors have all appropriate due process rights, including the ability to verify, challenge, and compromise claims, and access to administrative appeals procedures which are both reasonable and protect the interests of the United States. (6) To encourage agencies, when appropriate, to sell delinquent debt, particularly debts with underlying collateral. (7) To rely on the experience and expertise of private sector professionals to provide debt collection services to Federal agencies.

(c) Chapter 37 of title 31, United States Code, is amended-- (1) in each of sections 3711, 3716, 3717, and 3718, by striking ``the head of an executive or legislative agency'' each place it appears and inserting ``the head of an executive, judicial, or legislative agency''; and (2) by amending section 3701(a)(4) to read as follows: ``(4) `executive, judicial, or legislative agency' means a department, agency, court, court administrative office, or instrumentality in the executive, judicial, or legislative branch of Government, including government corporations.''.

(d)(1) Persons Subject to Administrative Offset.--Section 3701(c) of title 31, United States Code, is amended to read as follows: ``(c) In sections 3716 and 3717 of this title, the term `person' does not include an agency of the United States Government.''. (2) Requirements and Procedures.--Section 3716 of title 31, United States Code, is amended-- (A) by amending subsection (b) to read as follows:

``(b) Before collecting a claim by administrative offset, the head of an executive, judicial, or legislative agency must either-- ``(1) adopt, without change, regulations on collecting by administrative offset promulgated by the Department of Justice, the General Accounting Office, or the Department of the Treasury; or ``(2) prescribe regulations on collecting by administrative offset consistent with the regulations referred to in paragraph (1).''; (B) by amending subsection (c)(2) to read as follows: ``(2) when a statute explicitly prohibits using administrative offset or setoff to collect the claim or type of claim involved.''; (C) by redesignating subsection (c) as subsection (e); and (D) by inserting after subsection (b) the following new subsections:

``(c)(1)(A) Except as otherwise provided in this subsection, a disbursing official of the Department of the Treasury, the Department of Defense, the United States Postal Service, or any other government corporation, or any disbursing official of the United States designated by the Secretary of the Treasury, shall offset at least annually the amount of a payment which a payment certifying agency has certified to the disbursing official for disbursement, by an amount equal to the amount of a claim which a creditor agency has certified to the Secretary of the Treasury pursuant to this subsection.

``(B) An agency that designates disbursing officials pursuant to section 3321(c) of this title is not required to certify claims

arising out of its operations to the Secretary of the Treasury before such agency's disbursing officials offset such claims. ``(C) Payments certified by the Department of Education under a program administered by the Secretary of Education under title IV of the Higher Education Act of 1965 shall not be subject to administrative offset under this subsection. ``(2) Neither the disbursing official nor the payment certifying agency shall be liable-- ``(A) for the amount of the administrative offset on the basis that the underlying obligation, represented by the payment before the administrative offset was taken, was not satisfied; or ``(B) for failure to provide timely notice under paragraph (8).

``(3)(A)(i) Notwithstanding any other provision of law (including sections 207 and 1631(d)(1) of the Social Security Act (42 U.S.C. 407 and 1383(d)(1)), section 413(b) of Public Law 91-173 (30 U.S.C. 923(b)), and section 14 of the Act of August 29, 1935 (45 U.S.C. 231m)), except as provided in clause (ii), all payments due to an individual under-- ``(I) the Social Security Act, ``(II) part B of the Black Lung Benefits Act, or ``(III) any law administered by the Railroad Retirement Board (other than payments that such Board determines to be tier 2 benefits),

shall be subject to offset under this section. ``(ii) An amount of $9,000 which a debtor may receive under Federal benefit programs cited under clause (i) within a 12-month period shall be exempt from offset under this subsection. In applying the $9,000 exemption, the disbursing official shall-- ``(I) reduce the $9,000 exemption amount for the 12-month period by the amount of all Federal benefit payments made during such 12-month period which are not subject to offset under this subsection; and ``(II) apply a prorated amount of the exemption to each periodic benefit payment to be made to the debtor during the applicable 12-month period.

For purposes of the preceding sentence, the amount of a periodic benefit payment shall be the amount after any reduction or deduction required under the laws authorizing the program under which such payment is authorized to be made (including any reduction or deduction to recover any overpayment under such program). ``(B) The Secretary of the Treasury shall exempt from administrative offset under this subsection payments under means-tested programs when requested by the head of the respective agency. The Secretary may exempt other payments from administrative offset under this subsection upon the written request of the head of a payment certifying agency. A written request for exemption of other payments must provide justification for the exemption under standards prescribed by the Secretary. Such standards shall give due consideration to whether administrative offset would tend to interfere substantially with or defeat the purposes of the payment certifying agency's program. The Secretary shall report to the Congress annually on exemptions granted under this section.

``(C) The provisions of sections 205(b)(1) and 1631(c)(1) of the Social Security Act shall not apply to any administrative offset

executed pursuant to this section against benefits authorized by either title II or title XVI of the Social Security Act, respectively. ``(4) The Secretary of the Treasury may charge a fee sufficient to cover the full cost of implementing this subsection. The fee may be collected either by the retention of a portion of amounts collected pursuant to this subsection, or by billing the agency referring or transferring a claim for those amounts. Fees charged to the agencies shall be based on actual administrative offsets completed. Amounts received by the United States as fees under this subsection shall be deposited into the account of the Department of the Treasury under section 3711(g)(7) of this title, and shall be collected and accounted for in accordance with the provisions of that section. ``(5) The Secretary of the Treasury in consultation with the Commissioner of Social Security and the Director of the Office of Management and Budget, may prescribe such rules, regulations, and procedures as the Secretary of the Treasury considers necessary to carry out this subsection. The Secretary shall consult with the heads of affected agencies in the development of such rules, regulations, and procedures.

``(6) Any Federal agency that is owed by a person a past due, legally enforceable nontax debt that is over 180 days delinquent, including nontax debt administered by a third party acting as an agent for the Federal Government, shall notify the Secretary of the Treasury of all such nontax debts for purposes of administrative offset under this subsection.

``(7)(A) The disbursing official conducting an administrative offset with respect to a payment to a payee shall notify the payee in writing of-- ``(i) the occurrence of the administrative offset to satisfy a past due legally enforceable debt, including a description of the type and amount of the payment otherwise payable to the payee against which the offset was executed; ``(ii) the identity of the creditor agency requesting the offset; and ``(iii) a contact point within the creditor agency that will handle concerns regarding the offset.

``(B) If the payment to be offset is a periodic benefit payment, the disbursing official shall take reasonable steps, as determined by the Secretary of the Treasury, to provide the notice to the payee not later than the date on which the payee is otherwise scheduled to receive the payment, or as soon as practical thereafter, but no later than the date of the administrative offset. Notwithstanding the preceding sentence, the failure of the debtor to receive such notice shall not impair the legality of such administrative offset. ``(8) A levy pursuant to the Internal Revenue Code of 1986 shall take precedence over requests for administrative offset pursuant to other laws. ``(d) Nothing in this section is intended to prohibit the use of any other administrative offset authority existing under statute or common law.''. (3) Nontax Debt or Claim Defined.--Section 3701 of title 31, United States Code, is amended in subsection (a) by adding at the end the following new paragraph:

``(8) `nontax' means, with respect to any debt or claim, any debt or claim other than a debt or claim under the Internal Revenue Code of 1986.''.

(4) Treasury Check Withholding.--Section 3712 of title 31, United States Code, is amended by adding at the end the following new subsection: ``(e) Treasury Check Offset.-- ``(1) In general.--To facilitate collection of amounts owed by presenting banks pursuant to subsection (a) or (b), upon the direction of the Secretary, a Federal reserve bank shall withhold credit from banks presenting Treasury checks for ultimate charge to the account of the United States Treasury. By presenting Treasury checks for payment a presenting bank is deemed to authorize this offset. ``(2) Attempt to collect required.--Prior to directing offset under subsection (a)(1), the Secretary shall first attempt to collect amounts owed in the manner provided by sections 3711 and 3716.''.

(e) Section 3716 of title 31, United States Code, as amended by subsection (d)(2) of this section, is further amended by adding at the end the following new subsections: ``(f) The Secretary may waive the requirements of sections 552a(o) and (p) of title 5 for administrative offset or claims collection upon written certification by the head of a State or an executive, judicial, or legislative agency seeking to collect the claim that the requirements of subsection (a) of this section have been met. ``(g) The Data Integrity Board of the Department of the Treasury established under 552a(u) of title 5 shall review and include in reports under paragraph (3)(D) of that section a description of any matching activities conducted under this section. If the Secretary has granted a waiver under subsection (f) of this section, no other Data Integrity Board is required to take any action under section 552a(u) of title 5.''. (f) Section 3716 of title 31, United States Code, as amended by subsections (d) and (e) of this section, is further amended by adding at the end the following new subsection:

``(h)(1) The Secretary may, in the discretion of the Secretary, apply subsection (a) with respect to any past-due, legally-enforceable debt owed to a State if-- ``(A) the appropriate State disbursing official requests that an offset be performed; and ``(B) a reciprocal agreement with the State is in effect which contains, at a minimum-- ``(i) requirements substantially equivalent to subsection (b) of this section; and ``(ii) any other requirements which the Secretary considers appropriate to facilitate the offset and prevent duplicative efforts.

``(2) This subsection does not apply to-- ``(A) the collection of a debt or claim on which the administrative costs associated with the collection of the debt or claim exceed the amount of the debt or claim; ``(B) any collection of any other type, class, or amount of claim, as the Secretary considers necessary to protect the interest of the United States; or

``(C) the disbursement of any class or type of payment exempted by the Secretary of the Treasury at the request of a Federal agency.

``(3) In applying this section with respect to any debt owed to a State, subsection (c)(3)(A) shall not apply.''. (g)(1) Title 31.--Title 31, United States Code, is amended-- (A) in section 3322(a), by inserting ``section 3716 and section 3720A of this title and'' after ``Except as provided in''; (B) in section 3325(a)(3), by inserting ``or pursuant to payment intercepts or offsets pursuant to section 3716 or 3720A of this title,'' after ``voucher''; and (C) in each of sections 3711(e)(2) and 3717(h) by inserting ``, the Secretary of the Treasury,'' after ``Attorney General''.

(2) Internal Revenue Code of 1986.--Subparagraph (A) of section 6103(l)(10) of the Internal Revenue Code of 1986 (26 U.S.C. 6103(l)(10)) is amended by inserting ``and to officers and employees of the Department of the Treasury in connection with such reduction'' after ``6402''. (h) Section 5514 of title 5, United States Code, is amended-- (A) in subsection (a)-- (i) by adding at the end of paragraph (1) the following: ``All Federal agencies to which debts are owed and which have outstanding delinquent debts shall participate in a computer match at least annually of their delinquent debt records with records of Federal employees to identify those employees who are delinquent in repayment of those debts. The preceding sentence shall not apply to any debt under the Internal Revenue Code of 1986. Matched Federal employee records shall include, but shall not be limited to, records of active Civil Service employees government-wide, military active duty personnel, military reservists, United States Postal Service employees, employees of other government corporations, and seasonal and temporary employees. The Secretary of the Treasury shall establish and maintain an interagency consortium to implement centralized salary offset computer matching, and promulgate regulations for this program. Agencies that perform centralized salary offset computer matching services under this subsection are authorized to charge a fee sufficient to cover the full cost for such services.''; (ii) by redesignating paragraphs (3) and (4) as paragraphs (4) and (5), respectively; (iii) by inserting after paragraph (2) the following new paragraph:

``(3) Paragraph (2) shall not apply to routine intra-agency adjustments of pay that are attributable to clerical or administrative errors or delays in processing pay documents that have occurred within the four pay periods preceding the adjustment and to any adjustment that amounts to $50 or less, if at the time of such adjustment, or as soon thereafter as practical, the individual is provided written notice of the nature and the amount of the adjustment and a point of contact for contesting such adjustment.''; and (iv) by amending paragraph (5)(B) (as redesignated by clause (ii) of this subparagraph) to read as follows: ``(B) `agency' includes executive departments and agencies, the United States Postal Service, the Postal Rate Commission, the United States Senate, the United States

House of Representatives, and any court, court administrative office, or instrumentality in the judicial or legislative branches of the Government, and government corporations.''; (B) by adding after subsection (c) the following new subsection:

``(d) A levy pursuant to the Internal Revenue Code of 1986 shall take precedence over other deductions under this section.''. (i)(1) In General.--Section 7701 of title 31, United States Code, is amended by adding at the end the following new subsections: ``(c)(1) The head of each Federal agency shall require each person doing business with that agency to furnish to that agency such person's taxpayer identifying number. ``(2) For purposes of this subsection, a person shall be considered to be doing business with a Federal agency if the person is-- ``(A) a lender or servicer in a Federal guaranteed or insured loan program administered by the agency; ``(B) an applicant for, or recipient of, a Federal license, permit, right-of-way, grant, or benefit payment administered by the agency or insurance administered by the agency; ``(C) a contractor of the agency; ``(D) assessed a fine, fee, royalty or penalty by the agency; and ``(E) in a relationship with the agency that may give rise to a receivable due to that agency, such as a partner of a borrower in or a guarantor of a Federal direct or insured loan administered by the agency.

``(3) Each agency shall disclose to a person required to furnish a taxpayer identifying number under this subsection its intent to use such number for purposes of collecting and reporting on any delinquent amounts arising out of such person's relationship with the Government. ``(4) For purposes of this subsection, a person shall not be treated as doing business with a Federal agency solely by reason of being a debtor under third party claims of the United States. The preceding sentence shall not apply to a debtor owing claims resulting from petroleum pricing violations or owing claims resulting from Federal loan or loan guarantee/insurance programs. ``(d) Notwithstanding section 552a(b) of title 5, United States Code, creditor agencies to which a delinquent claim is owed, and their agents, may match their debtor records with Department of Health and Human Services, and Department of Labor records to obtain names (including names of employees), name controls, names of employers, taxpayer identifying numbers, addresses (including addresses of employers), and dates of birth. The preceding sentence shall apply to the disclosure of taxpayer identifying numbers only if such disclosure is not otherwise prohibited by section 6103 of the Internal Revenue Code of 1986. The Department of Health and Human Services, and the Department of Labor shall release that information to creditor agencies and may charge reasonable fees sufficient to pay the costs associated with that release.''. (2) Included Federal Loan Program Defined.--Subparagraph (C) of section 6103(l)(3) of the Internal Revenue Code of 1986 <<NOTE: 26 USC 6103.>> (relating to disclosure that applicant for Federal loan has tax delinquent account) is amended to read as follows:

``(C) Included Federal Loan Program Defined.--For purposes of this paragraph, the term `included Federal loan program' means any program under which the United States or a Federal agency makes, guarantees, or insures loans.''.

(3) Clerical Amendments.-- (A) The chapter title to chapter 77 of subtitle VI of title 31, United States Code, is amended to read as follows:

``CHAPTER 77--ACCESS TO INFORMATION FOR DEBT COLLECTION''.

(B) The table of chapters for subtitle VI of title 31, United States Code, is amended by inserting before the item relating to chapter 91 the following new item:

``77. Access to information for debt collection..................7701''.

(j)(1) In General.--Title 31, United States Code, is amended by inserting after section 3720A the following new section:

``Sec. 3720B. Barring delinquent Federal debtors from obtaining Federal loans or loan insurance guarantees

``(a) Unless this subsection is waived by the head of a Federal agency, a person may not obtain any Federal financial assistance in the form of a loan (other than a disaster loan) or loan insurance or guarantee administered by the agency if the person has an outstanding debt (other than a debt under the Internal Revenue Code of 1986) with any Federal agency which is in a delinquent status, as determined under standards prescribed by the Secretary of the Treasury. Such a person may obtain additional loans or loan guarantees only after such delinquency is resolved in accordance with those standards. The Secretary of the Treasury may exempt, at the request of an agency, any class of claims.

``(b) The head of a Federal agency may delegate the waiver authority under subsection (a) to the Chief Financial Officer of the agency. The waiver authority may be redelegated only to the Deputy Chief Financial Officer of the agency.''

(2) Clerical Amendment.--The table of sections for subchapter II of chapter 37 of title 31, United States Code, is amended by inserting after the item relating to section 3720A the following new item:

``3720B. Barring delinquent Federal debtors from obtaining Federal loans or loan insurance guarantees.''.

(k) Section 3711(f) of title 31, United States Code, is amended-- (1) by striking ``may'' the first place it appears and inserting ``shall''; (2) by striking ``an individual'' each place it appears and inserting ``a person''; (3) by striking ``the individual'' each place it appears and inserting ``the person''; and (4) by adding at the end the following new paragraphs:

``(4) The head of each executive agency shall require, as a condition for insuring or guaranteeing any loan, financing, or other extension of credit under any law to a person, that the lender provide information relating to the extension of credit to consumer reporting agencies or commercial reporting agencies, as appropriate. ``(5) The head of each executive agency may provide to a consumer reporting agency or commercial reporting agency information from a system of records that a person is responsible for a claim which is current, if notice required by section 552a(e)(4)

of title 5 indicates that information in the system may be disclosed to a consumer reporting agency or commercial reporting agency, respectively.''. (l) Section 3718 of title 31, United States Code, is amended-- (1) in subsection (a), by striking the first sentence and inserting the following: ``Under conditions the head of an executive, judicial, or legislative agency considers appropriate, the head of the agency may enter into a contract with a person for collection service to recover indebtedness owed, or to locate or recover assets of, the United States Government. The head of an agency may not enter into a contract under the preceding sentence to locate or recover assets of the United States held by a State government or financial institution unless that agency has established procedures approved by the Secretary of the Treasury to identify and recover such assets.''; and (2) in subsection (d), by inserting ``, or to locate or recover assets of,'' after ``owed''.

(m)(1) In General.--Section 3711 of title 31, United States Code, is amended by adding at the end the following new subsections: ``(g)(1) If a nontax debt or claim owed to the United States has been delinquent for a period of 180 days-- ``(A) the head of the executive, judicial, or legislative agency that administers the program that gave rise to the debt or claim shall transfer the debt or claim to the Secretary of the Treasury; and ``(B) upon such transfer the Secretary of the Treasury shall take appropriate action to collect or terminate collection actions on the debt or claim.

``(2) Paragraph (1) shall not apply-- ``(A) to any debt or claim that-- ``(i) is in litigation or foreclosure; ``(ii) will be disposed of under an asset sales program within 1 year after becoming eligible for sale, or later than 1 year if consistent with an asset sales program and a schedule established by the agency and approved by the Director of the Office of Management and Budget; ``(iii) has been referred to a private collection contractor for collection for a period of time determined by the Secretary of the Treasury; ``(iv) has been referred by, or with the consent of, the Secretary of the Treasury to a debt collection center for a period of time determined by the Secretary of the Treasury; or ``(v) will be collected under internal offset, if such offset is sufficient to collect the claim within 3 years after the date the debt or claim is first delinquent; and ``(B) to any other specific class of debt or claim, as determined by the Secretary of the Treasury at the request of the head of an executive, judicial, or legislative agency or otherwise.

``(3) For purposes of this section, the Secretary of the Treasury may designate, and withdraw such designation of debt collection centers operated by other Federal agencies. The Secretary of the Treasury shall designate such centers on the basis of their performance in collecting delinquent claims owed to the Government.

``(4) At the discretion of the Secretary of the Treasury, referral of a nontax claim may be made to-- ``(A) any executive department or agency operating a debt collection center for servicing, collection, compromise, or suspension or termination of collection action; ``(B) a private collection contractor operating under a contract for servicing or collection action; or ``(C) the Department of Justice for litigation.

``(5) Nontax claims referred or transferred under this section shall be serviced, collected, or compromised, or collection action thereon suspended or terminated, in accordance with otherwise applicable statutory requirements and authorities. Executive departments and agencies operating debt collection centers may enter into agreements with the Secretary of the Treasury to carry out the purposes of this subsection. The Secretary of the Treasury shall-- ``(A) maintain competition in carrying out this subsection; ``(B) maximize collections of delinquent debts by placing delinquent debts quickly; ``(C) maintain a schedule of private collection contractors and debt collection centers eligible for referral of claims; and ``(D) refer delinquent debts to the person most appropriate to collect the type or amount of claim involved.

``(6) Any agency operating a debt collection center to which nontax claims are referred or transferred under this subsection may charge a fee sufficient to cover the full cost of implementing this subsection. The agency transferring or referring the nontax claim shall be charged the fee, and the agency charging the fee shall collect such fee by retaining the amount of the fee from amounts collected pursuant to this subsection. Agencies may agree to pay through a different method, or to fund an activity from another account or from revenue received from the procedure described under section 3720C of this title. Amounts charged under this subsection concerning delinquent claims may be considered as costs pursuant to section 3717(e) of this title. ``(7) Notwithstanding any other law concerning the depositing and collection of Federal payments, including section 3302(b) of this title, agencies collecting fees may retain the fees from amounts collected. Any fee charged pursuant to this subsection shall be deposited into an account to be determined by the executive department or agency operating the debt collection center charging the fee (in this subsection referred to in this section as the `Account'). Amounts deposited in the Account shall be available until expended to cover costs associated with the implementation and operation of Governmentwide debt collection activities. Costs properly chargeable to the Account include-- ``(A) the costs of computer hardware and software, word processing and telecommunications equipment, and other equipment, supplies, and furniture; ``(B) personnel training and travel costs; ``(C) other personnel and administrative costs; ``(D) the costs of any contract for identification, billing, or collection services; and ``(E) reasonable costs incurred by the Secretary of the Treasury, including services and utilities provided by the Secretary, and administration of the Account.

``(8) Not later than January 1 of each year, there shall be deposited into the Treasury as miscellaneous receipts an amount equal to the amount of unobligated balances remaining in the Account at the close of business on September 30 of the preceding year, minus any part of such balance that the executive department or agency operating the debt collection center determines is necessary to cover or defray the costs under this subsection for the fiscal year in which the deposit is made. ``(9) Before discharging any delinquent debt owed to any executive, judicial, or legislative agency, the head of such agency shall take all appropriate steps to collect such debt, including (as applicable)-- ``(A) administrative offset, ``(B) tax refund offset, ``(C) Federal salary offset, ``(D) referral to private collection contractors, ``(E) referral to agencies operating a debt collection center, ``(F) reporting delinquencies to credit reporting bureaus, ``(G) garnishing the wages of delinquent debtors, and ``(H) litigation or foreclosure.

``(10) To carry out the purposes of this subsection, the Secretary of the Treasury may prescribe such rules, regulations, and procedures as the Secretary considers necessary and transfer such funds from funds appropriated to the Department of the Treasury as may be necessary to meet existing liabilities and obligations incurred prior to the receipt of revenues that result from debt collections. ``(h)(1) The head of an executive, judicial, or legislative agency acting under subsection (a)(1), (2), or (3) of this section to collect a claim, compromise a claim, or terminate collection action on a claim may obtain a consumer report (as that term is defined in section 603 of the Fair Credit Reporting Act (15 U.S.C. 1681a)) or comparable credit information on any person who is liable for the claim. ``(2) The obtaining of a consumer report under this subsection is deemed to be a circumstance or purpose authorized or listed under section 604 of the Fair Credit Reporting Act (15 U.S.C. 1681b).''. (2) Returns Relating to Cancellation of Indebtedness by Certain Entities.-- (A) In general.--Subsection (a) of section 6050P of the Internal Revenue Code of 1986 (relating to returns relating to the cancellation of indebtedness by certain financial entities) is amended by striking ``applicable financial entity'' and inserting ``applicable entity''. (B) Entities to which requirement applies.--Subsection (c) of section 6050P of such Code is amended-- (i) by redesignating paragraphs (1) and (2) as paragraphs (2) and (3), respectively, and inserting before paragraph (2) (as so redesignated) the following new paragraph: ``(1) Applicable entity.--The term `applicable entity' means-- ``(A) an executive, judicial, or legislative agency (as defined in section 3701(a)(4) of title 31, United States Code), and ``(B) an applicable financial entity.'', and

(ii) in paragraph (3), as so redesignated, by striking ``(1)(B)'' and inserting ``(1)(A) or (2)(B)''. (C) Alternative procedure.--Section 6050P <<NOTE: 26 USC 6050P.>> of such Code is amended by adding at the end the following new subsection:

``(e) Alternative Procedure.--In lieu of making a return required under subsection (a), an agency described in subsection (c)(1)(A) may submit to the Secretary (at such time and in such form as the Secretary may by regulations prescribe) information sufficient for the Secretary to complete such a return on behalf of such agency. Upon receipt of such information, the Secretary shall complete such return and provide a copy of such return to such agency.'' (D) Conforming amendments.-- (i) Subsection (d) of section 6050P of such Code is amended by striking ``applicable financial entity'' and inserting ``applicable entity''. (ii) The heading of section 6050P of such Code is amended to read as follows:

``SEC. 6050P. RETURNS RELATING TO THE CANCELLATION OF INDEBTEDNESS BY CERTAIN ENTITIES.''

(iii) The table of sections for subpart B of part III of subchapter A of chapter 61 of such Code is amended by striking the item relating to section 6050P and inserting the following new item: ``Sec. 6050P. Returns relating to the cancellation of indebtedness by certain entities.''

(n) Effective October 1, 1995, section 11 of the Administrative Dispute Resolution Act (Public Law 101-552, 5 U.S.C. 571 note) shall not apply to the amendment made by section 8(b) of such Act.

(o)(1) In General.--Chapter 37 of title 31, United States Code, is amended in subchapter II by adding after section 3720C, as added by subsection (t) of this section, the following new section:

``Sec. 3720D. Garnishment

``(a) Notwithstanding any provision of State law, the head of an executive, judicial, or legislative agency that administers a program that gives rise to a delinquent nontax debt owed to the United States by an individual may in accordance with this section garnish the disposable pay of the individual to collect the amount owed, if the individual is not currently making required repayment in accordance with any agreement between the agency head and the individual. ``(b) In carrying out any garnishment of disposable pay of an individual under subsection (a), the head of an executive, judicial, or legislative agency shall comply with the following requirements: ``(1) The amount deducted under this section for any pay period may not exceed 15 percent of disposable pay, except that a greater percentage may be deducted with the written consent of the individual. ``(2) The individual shall be provided written notice, sent by mail to the individual's last known address, a minimum of 30 days prior to the initiation of proceedings, from the head of the executive, judicial, or legislative agency, informing the individual of-- ``(A) the nature and amount of the debt to be collected;

``(B) the intention of the agency to initiate proceedings to collect the debt through deductions from pay; and ``(C) an explanation of the rights of the individual under this section. ``(3) The individual shall be provided an opportunity to inspect and copy records relating to the debt. ``(4) The individual shall be provided an opportunity to enter into a written agreement with the executive, judicial, or legislative agency, under terms agreeable to the head of the agency, to establish a schedule for repayment of the debt. ``(5) The individual shall be provided an opportunity for a hearing in accordance with subsection (c) on the determination of the head of the executive, judicial, or legislative agency concerning-- ``(A) the existence or the amount of the debt, and ``(B) in the case of an individual whose repayment schedule is established other than by a written agreement pursuant to paragraph (4), the terms of the repayment schedule. ``(6) If the individual has been reemployed within 12 months after having been involuntarily separated from employment, no amount may be deducted from the disposable pay of the individual until the individual has been reemployed continuously for at least 12 months.

``(c)(1) A hearing under subsection (b)(5) shall be provided prior to issuance of a garnishment order if the individual, on or before the 15th day following the mailing of the notice described in subsection (b)(2), and in accordance with such procedures as the head of the executive, judicial, or legislative agency may prescribe, files a petition requesting such a hearing. ``(2) If the individual does not file a petition requesting a hearing prior to such date, the head of the agency shall provide the individual a hearing under subsection (a)(5) upon request, but such hearing need not be provided prior to issuance of a garnishment order. ``(3) The hearing official shall issue a final decision at the earliest practicable date, but not later than 60 days after the filing of the petition requesting the hearing. ``(d) The notice to the employer of the withholding order shall contain only such information as may be necessary for the employer to comply with the withholding order. ``(e)(1) An employer may not discharge from employment, refuse to employ, or take disciplinary action against an individual subject to wage withholding in accordance with this section by reason of the fact that the individual's wages have been subject to garnishment under this section, and such individual may sue in a State or Federal court of competent jurisdiction any employer who takes such action. ``(2) The court shall award attorneys' fees to a prevailing employee and, in its discretion, may order reinstatement of the individual, award punitive damages and back pay to the employee, or order such other remedy as may be reasonably necessary.

``(f)(1) The employer of an individual-- ``(A) shall pay to the head of an executive, judicial, or legislative agency as directed in a withholding order issued in an action under this section with respect to the individual, and

``(B) shall be liable for any amount that the employer fails to withhold from wages due an employee following receipt by such employer of notice of the withholding order, plus attorneys' fees, costs, and, in the court's discretion, punitive damages.

``(2)(A) The head of an executive, judicial, or legislative agency may sue an employer in a State or Federal court of competent jurisdiction to recover amounts for which the employer is liable under paragraph (1)(B). ``(B) A suit under this paragraph may not be filed before the termination of the collection action, unless earlier filing is necessary to avoid expiration of any applicable statute of limitations period. ``(3) Notwithstanding paragraphs (1) and (2), an employer shall not be required to vary its normal pay and disbursement cycles in order to comply with this subsection.

``(g) For the purpose of this section, the term `disposable pay' means that part of the compensation of any individual from an employer remaining after the deduction of any amounts required by any other law to be withheld. ``(h) The Secretary of the Treasury shall issue regulations to implement this section.''.

(2) Clerical Amendment.--The table of sections for subchapter II of chapter 37 of title 31, United States Code, is amended by inserting after the item relating to section 3720C (as added by subsection (t) of this section) the following new item:

``3720D. Garnishment.''.

(p) Section 3711 of title 31, United States Code, as amended by subsection (m) of this section, is further amended by adding at the end the following new subsection: ``(i)(1) The head of an executive, judicial, or legislative agency may sell, subject to section 504(b) of the Federal Credit Reform Act of 1990 and using competitive procedures, any nontax debt owed to the United States that is delinquent for more than 90 days. Appropriate fees charged by a contractor to assist in the conduct of a sale under this subsection may be payable from the proceeds of the sale. ``(2) After terminating collection action, the head of an executive, judicial, or legislative agency shall sell, using competitive procedures, any nontax debt or class of nontax debts owed to the United States, if the Secretary of the Treasury determines the sale is in the best interests of the United States. ``(3) Sales of nontax debt under this subsection-- ``(A) shall be for-- ``(i) cash, or ``(ii) cash and a residuary equity or profit participation, if the head of the agency reasonably determines that the proceeds will be greater than sale solely for cash, ``(B) shall be without recourse, but may include the use of guarantees if otherwise authorized, and ``(C) shall transfer to the purchaser all rights of the Government to demand payment of the nontax debt, other than with respect to a residuary equity or profit participation under subparagraph (A)(ii).

``(4)(A) Within one year after the date of enactment of the Debt Collection Improvement Act of 1996, each executive agency with current and delinquent collateralized nontax debts shall report to the Congress on the valuation of its existing portfolio of loans,

notes and guarantees, and other collateralized debts based on standards developed by the Director of the Office of Management and Budget, in consultation with the Secretary of the Treasury.

``(B) The Director of the Office of Management and Budget shall determine what information is required to be reported to comply with subparagraph (A). At a minimum, for each financing account and for each liquidating account (as those terms are defined in sections 502(7) and 502(8), respectively, of the Federal Credit Reform Act of 1990) the following information shall be reported: ``(i) The cumulative balance of current debts outstanding, the estimated net present value of such debts, the annual administrative expenses of those debts (including the portion of salaries and expenses that are directly related thereto), and the estimated net proceeds that would be received by the Government if such debts were sold. ``(ii) The cumulative balance of delinquent debts, debts outstanding, the estimated net present value of such debts, the annual administrative expenses of those debts (including the portion of salaries and expenses that are directly related thereto), and the estimated net proceeds that would be received by the Government if such debts were sold. ``(iii) The cumulative balance of guaranteed loans outstanding, the estimated net present value of such guarantees, the annual administrative expenses of such guarantees (including the portion of salaries and expenses that are directly related to such guaranteed loans), and the estimated net proceeds that would be received by the Government if such loan guarantees were sold. ``(iv) The cumulative balance of defaulted loans that were previously guaranteed and have resulted in loans receivables, the estimated net present value of such loan assets, the annual administrative expenses of such loan assets (including the portion of salaries and expenses that are directly related to such loan assets), and the estimated net proceeds that would be received by the Government if such loan assets were sold. ``(v) The marketability of all debts.

``(5) This subsection is not intended to limit existing statutory authority of agencies to sell loans, debts, or other assets.''. (q) Section 3717 of title 31, United States Code, is amended by adding at the end of subsection (h) the following new subsection: ``(i)(1) The head of an executive, judicial, or legislative agency may increase an administrative claim by the cost of living adjustment in lieu of charging interest and penalties under this section. Adjustments under this subsection will be computed annually. ``(2) For the purpose of this subsection-- ``(A) the term `cost of living adjustment' means the percentage by which the Consumer Price Index for the month of June of the calendar year preceding the adjustment exceeds the Consumer Price Index for the month of June of the calendar year in which the claim was determined or last adjusted; and ``(B) the term `administrative claim' includes all debt that is not based on an extension of Government credit through direct loans, loan guarantees, or insurance, including fines, penalties, and overpayments.''.

(r)(1) In General.--Chapter 37 of title 31, United States Code, is amended in subchapter II by adding after section 3720D, as added by subsection (o) of this section, the following new section:

``Sec. 3720E. Dissemination of information regarding identity of delinquent debtors

``(a) The head of any agency may, with the review of the Secretary of the Treasury, for the purpose of collecting any delinquent nontax debt owed by any person, publish or otherwise publicly disseminate information regarding the identity of the person and the existence of the nontax debt. ``(b)(1) The Secretary of the Treasury, in consultation with the Director of the Office of Management and Budget and the heads of other appropriate Federal agencies, shall issue regulations establishing procedures and requirements the Secretary considers appropriate to carry out this section.

``(2) Regulations under this subsection shall include-- ``(A) standards for disseminating information that maximize collections of delinquent nontax debts, by directing actions under this section toward delinquent debtors that have assets or income sufficient to pay their delinquent nontax debt; ``(B) procedures and requirements that prevent dissemination of information under this section regarding persons who have not had an opportunity to verify, contest, and compromise their nontax debt in accordance with this subchapter; and ``(C) procedures to ensure that persons are not incorrectly identified pursuant to this section.''.

(2) Clerical Amendment.--The table of sections for subchapter II of chapter 37 of title 31, United States Code, is amended by adding after the item relating to section 3720D (as added by subsection (o) of this section) the following new item:

``3720E. Dissemination of information regarding identity of delinquent debtors.''.

(s)(1) In General.--The Federal Civil Penalties Inflation Adjustment Act of 1990 (Public Law 101-410, 104 Stat. 890; 28 U.S.C. 2461 note) is amended-- (A) by amending section 4 to read as follows:

``Sec. 4. The head of each agency shall, not later than 180 days after the date of enactment of the Debt Collection Improvement Act of 1996, and at least once every 4 years thereafter-- ``(1) by regulation adjust each civil monetary penalty provided by law within the jurisdiction of the Federal agency, except for any penalty (including any addition to tax and additional amount) under the Internal Revenue Code of 1986, the Tariff Act of 1930, the Occupational Safety and Health Act of 1970, or the Social Security Act, by the inflation adjustment described under section 5 of this Act; and ``(2) publish each such regulation in the Federal Register.''; (B) in section 5(a), by striking ``The adjustment described under paragraphs (4) and (5)(A) of section 4'' and inserting ``The inflation adjustment under section 4''; and (C) by adding at the end the following new section:

``Sec. 7. Any increase under this Act in a civil monetary penalty shall apply only to violations which occur after the date the increase takes effect.''. (2) Limitation on Initial Adjustment.-- The first adjustment of a civil monetary penalty made pursuant to the amendment made by paragraph (1) may not exceed 10 percent of such penalty.

(t)(1) In General.--Title 31, United States Code, is amended by inserting after section 3720B (as added by subsection (j) of this section) the following new section:

``Sec. 3720C. Debt Collection Improvement Account

``(a)(1) There is hereby established in the Treasury a special fund to be known as the `Debt Collection Improvement Account' (hereinafter in this section referred to as the `Account').

``(2) The Account shall be maintained and managed by the Secretary of the Treasury, who shall ensure that agency programs are credited with amounts transferred under subsection (b)(1). ``(b)(1) Not later than 30 days after the end of a fiscal year, an agency may transfer to the Account the amount described in paragraph (3), as adjusted under paragraph (4). ``(2) Agency transfers to the Account may include collections from-- ``(A) salary, administrative, and tax refund offsets; ``(B) the Department of Justice; ``(C) private collection agencies; ``(D) sales of delinquent loans; and ``(E) contracts to locate or recover assets.

``(3) The amount referred to in paragraph (1) shall be 5 percent of the amount of delinquent debt collected by an agency in a fiscal year, minus the greater of-- ``(A) 5 percent of the amount of delinquent nontax debt collected by the agency in the previous fiscal year, or ``(B) 5 percent of the average annual amount of delinquent nontax debt collected by the agency in the previous 4 fiscal years.

``(4) In consultation with the Secretary of the Treasury, the Office of Management and Budget may adjust the amount described in paragraph (3) for an agency to reflect the level of effort in credit management programs by the agency. As an indicator of the level of effort in credit management, the Office of Management and Budget shall consider the following: ``(A) The number of days between the date a claim or debt became delinquent and the date which an agency referred the debt or claim to the Secretary of the Treasury or obtained an exemption from this referral under section 3711(g)(2) of this title. ``(B) The ratio of delinquent debts or claims to total receivables for a given program, and the change in this ratio over a period of time.

``(c)(1) The Secretary of the Treasury may make payments from the Account solely to reimburse agencies for qualified expenses. For agencies with franchise funds, such payments may be credited to subaccounts designated for debt collection. ``(2) For purposes of this section, the term `qualified expenses' means expenditures for the improvement of credit management, debt collection, and debt recovery activities, including-- ``(A) account servicing (including cross-servicing under section 3711(g) of this title), ``(B) automatic data processing equipment acquisitions, ``(C) delinquent debt collection, ``(D) measures to minimize delinquent debt, ``(E) sales of delinquent debt, ``(F) asset disposition, and ``(G) training of personnel involved in credit and debt management.

``(3)(A) Amounts transferred to the Account shall be available to the Secretary of the Treasury for purposes of this section to

the extent and in amounts provided in advance in appropriations Acts. ``(B) As soon as practicable after the end of the third fiscal year after which amounts transferred are first available pursuant to this section, and every 3 years thereafter, any uncommitted balance in the Account shall be transferred to the general fund of the Treasury as miscellaneous receipts.

``(d) For direct loans and loan guarantee programs subject to title V of the Congressional Budget Act of 1974, amounts credited in accordance with subsection (c) shall be considered administrative costs. ``(e) The Secretary of the Treasury shall prescribe such rules, regulations, and procedures as the Secretary considers necessary or appropriate to carry out the purposes of this section.''.

(2) Clerical Amendment.--The table of sections for chapter 37 of title 31, United States Code, is amended by inserting after the item relating to section 3720B (as added by subsection (j) of this section) the following new item:

``3720C. Debt Collection Improvement Account.''.

(u)(1) Discretionary Authority.--Section 3720A of title 31, United States Code, is amended by adding after subsection (h) the following new subsection: ``(i) An agency subject to section 9 of the Act of May 18, 1933 (16 U.S.C. 831h), may implement this section at its discretion.''. (2) Federal Agency Defined.--Section 6402(f) of the Internal Revenue Code of 1986 (26 U.S.C. 6402(f)) is amended to read as follows: ``(f) Federal Agency.--For purposes of this section, the term `Federal agency' means a department, agency, or instrumentality of the United States, and includes a Government corporation (as such term is defined in section 103 of title 5, United States Code).''. (v)(1) Notification of Secretary of the Treasury.--Section 3720A(a) of title 31, United States Code, is amended to read as follows: ``(a) Any Federal agency that is owed by a person a past-due, legally enforceable debt (including debt administered by a third party acting as an agent for the Federal Government) shall, and any agency subject to section 9 of the Act of May 18, 1933 (16 U.S.C. 831h), owed such a debt may, in accordance with regulations issued pursuant to subsections (b) and (d), notify the Secretary of the Treasury at least once each year of the amount of such debt.''.

(2) Implementation of Support Collection by Secretary of the Treasury.--Section 464(a) of the Social Security Act (42 U.S.C. 664(a)) is amended-- (1) in paragraph (1), by adding at the end the following: ``This subsection may be executed by the disbursing official of the Department of the Treasury.''; and (2) in paragraph (2)(A), by adding at the end the following: ``This subsection may be executed by the Secretary of the Department of the Treasury or his designee.''.

(w) Section 3720A(h) of title 31, United States Code, is amended to read as follows: ``(h)(1) The disbursing official of the Department of the Treasury-- ``(1) shall notify a taxpayer in writing of--

``(A) the occurrence of an offset to satisfy a past- due legally enforceable nontax debt; ``(B) the identity of the creditor agency requesting the offset; and ``(C) a contact point within the creditor agency that will handle concerns regarding the offset; ``(2) shall notify the Internal Revenue Service on a weekly basis of-- ``(A) the occurrence of an offset to satisfy a past- due legally enforceable non-tax debt; ``(B) the amount of such offset; and ``(C) any other information required by regulations; and ``(3) shall match payment records with requests for offset by using a name control, taxpayer identifying number (as that term is used in section 6109 of the Internal Revenue Code of 1986), and any other necessary identifiers.''.

``(h)(2) The term `disbursing official' of the Department of the Treasury means the Secretary or his designee.'' (x)(1) Amendments Relating to Electronic Funds Transfer.--Section 3332 of title 31, United States Code, popularly known as the Federal Financial Management Act of 1994, is amended-- (A) by redesignating subsection (e) as subsection (h), and inserting after subsection (d) the following new subsections:

``(e)(1) Notwithstanding subsections (a) through (d) of this section, sections 5120 (a) and (d) of title 38, and any other provision of law, all Federal payments to a recipient who becomes eligible for that type of payment after 90 days after the date of the enactment of the Debt Collection Improvement Act of 1996 shall be made by electronic funds transfer. ``(2) The head of a Federal agency shall, with respect to Federal payments made or authorized by the agency, waive the application of paragraph (1) to a recipient of those payments upon receipt of written certification from the recipient that the recipient does not have an account with a financial institution or an authorized payment agent. ``(f)(1) Notwithstanding any other provision of law (including subsections (a) through (e) of this section and sections 5120 (a) and (d) of title 38), except as provided in paragraph (2) all Federal payments made after January 1, 1999, shall be made by electronic funds transfer. ``(2)(A) The Secretary of the Treasury may waive application of this subsection to payments-- ``(i) for individuals or classes of individuals for whom compliance imposes a hardship; ``(ii) for classifications or types of checks; or ``(iii) in other circumstances as may be necessary.

``(B) The Secretary of the Treasury shall make determinations under subparagraph (A) based on standards developed by the Secretary. ``(g) Each recipient of Federal payments required to be made by electronic funds transfer shall-- ``(1) designate 1 or more financial institutions or other authorized agents to which such payments shall be made; and ``(2) provide to the Federal agency that makes or authorizes the payments information necessary for the recipient to receive

electronic funds transfer payments through each institution or agent designated under paragraph (1).''; and (B) by adding after subsection (h) (as so redesignated) the following new subsections:

``(i)(1) The Secretary of the Treasury may prescribe regulations that the Secretary considers necessary to carry out this section.

``(2) Regulations under this subsection shall ensure that individuals required under subsection (g) to have an account at a financial institution because of the application of subsection (f)(1)-- ``(A) will have access to such an account at a reasonable cost; and ``(B) are given the same consumer protections with respect to the account as other account holders at the same financial institution.

``(j) For purposes of this section-- ``(1) The term `electronic funds transfer' means any transfer of funds, other than a transaction originated by cash, check, or similar paper instrument, that is initiated through an electronic terminal, telephone, computer, or magnetic tape, for the purpose of ordering, instructing, or authorizing a financial institution to debit or credit an account. The term includes Automated Clearing House transfers, Fed Wire transfers, transfers made at automatic teller machines, and point-of-sale terminals. ``(2) The term `Federal agency' means-- ``(A) an agency (as defined in section 101 of this title); and ``(B) a Government corporation (as defined in section 103 of title 5). ``(3) The term `Federal payments' includes-- ``(A) Federal wage, salary, and retirement payments; ``(B) vendor and expense reimbursement payments; and ``(C) benefit payments. Such term shall not include any payment under the Internal Revenue Code of 1986.''

(2) Amendments Relating to Substitute Checks.--Section 3331 of title 31, United States Code, is amended-- (A) in subsection (b), by striking ``subsection (c)'' and inserting ``subsection (c) or (f)''; (B) by redesignating subsection (f) as subsection (g); and (C) by inserting after subsection (e) the following new subsection:

``(f) The Secretary may waive any provision of this section as may be necessary to ensure that claimants receive timely payments.''. (3) Permanent Funding of the Check Forgery Insurance Fund.--Section 3343 of title 31, United States Code, is amended-- (A) in subsection (a), by amending the second sentence to read as follows: ``Necessary amounts are hereafter appropriated to the Fund out of any moneys in the Treasury not otherwise appropriated, and shall remain available until expended to make the payments required or authorized under this section.''; (B) in subsection (b)-- (i) by inserting ``in the determination of the Secretary the payee or special endorse establishes that'' after ``without interest if'';

(ii) in paragraph (2), by inserting ``and'' after the semicolon; (iii) in paragraph (3), by striking ``; and'' and inserting a period; and (iv) by striking paragraph (4); (C) in subsection (d), by inserting after the first sentence the following new sentence: ``The Secretary may use amounts in the Fund to reimburse payment certifying or authorizing agencies for any payment that the Secretary determines would otherwise have been payable from the Fund, and may reimburse certifying or authorizing agencies with amounts recovered because of payee nonentitlement.''; (D) by redesignating subsection (e) as subsection (g); and (E) by inserting after subsection (d) the following new subsections:

``(e) The Secretary may waive any provision of this section as may be necessary to ensure that claimants receive timely payments. ``(f) Under such conditions as the Secretary may prescribe, the Secretary may delegate duties and powers of the Secretary under this section to the head of an agency. Consistent with a delegation from the Secretary under this subsection, the head of an agency may redelegate those duties and powers to officers or employees of the agency.''. (y) Section 3325 of title 31, United States Code, is amended by adding at the end the following new subsection: ``(d) The head of an executive agency or an officer or employee of an executive agency referred to in subsection (a)(1)(B), as applicable, shall include with each certified voucher submitted to a disbursing official pursuant to this section the taxpayer identifying number of each person to whom payment may be made under the voucher.''. (z)(1) In general.--Section 3701 of title 31, United States Code, is amended-- (A) by amending subsection (a)(1) to read as follows: ``(1) `administrative offset' means withholding funds payable by the United States (including funds payable by the United States on behalf of a State government) to, or held by the United States for, a person to satisfy a claim.''; (B) by amending subsection (b) to read as follows:

``(b)(1) In subchapter II of this chapter and subsection (a)(8) of this section, the term `claim' or `debt' means any amount of funds or property that has been determined by an appropriate official of the Federal Government to be owed to the United States by a person, organization, or entity other than another Federal agency. A claim includes, without limitation-- ``(A) funds owed on account of loans made, insured, or guaranteed by the Government, including any deficiency or any difference between the price obtained by the Government in the sale of a property and the amount owed to the Government on a mortgage on the property, ``(B) expenditures of nonappropriated funds, ``(C) over-payments, including payments disallowed by audits performed by the Inspector General of the agency administering the program, ``(D) any amount the United States is authorized by statute to collect for the benefit of any person,

``(E) the unpaid share of any non-Federal partner in a program involving a Federal payment and a matching, or cost- sharing, payment by the non-Federal partner, ``(F) any fines or penalties assessed by an agency; and ``(G) other amounts of money or property owed to the Government.

``(2) For purposes of section 3716 of this title, each of the terms `claim' and `debt' includes an amount of funds or property owed by a person to a State (including any past-due support being enforced by the State), the District of Columbia, American Samoa, Guam, the United States Virgin Islands, the Commonwealth of the Northern Mariana Islands, or the Commonwealth of Puerto Rico.''; (C) by adding after subsection (d) the following new subsection:

``(e) In section 3716 of this title-- ``(1) `creditor agency' means any agency owed a claim that seeks to collect that claim through administrative offset; and ``(2) `payment certifying agency' means any agency that has transmitted a voucher to a disbursing official for disbursement.

``(f) In section 3711 of this title, `private collection contractor' means private debt collectors under contract with an agency to collect a nontax debt or claim owed the United States. The term includes private debt collectors, collection agencies, and commercial attorneys.''; and (D) by amending subsection (d) to read as follows:

``(d) Sections 3711(f) and 3716-3719 of this title do not apply to a claim or debt under, or to an amount payable under-- ``(1) the Internal Revenue Code of 1986 (26 U.S.C. 1 et seq.), ``(2) the Social Security Act (42 U.S.C. 301 et seq.), except to the extent provided under section 204(f) of such Act and section 3716(c) of this title, or ``(3) the tariff laws of the United States.''.

(2) Social Security.-- (A) Application of amendments made by this act.--Subsection (f) of section 204 of the Social Security Act (42 U.S.C. 404) is amended to read as follows: ``(f)(1) With respect to any deliquent amount, the Commissioner of Social Security may use the collection practices described in sections 3711(f), 3716, 3717, and 3718 of title 31, United States Code and in section 5514 of title 5, United States Code, as in effect immediately after the enactment of the Debt Collection Improvement Act of 1996.'' (B) Permanent application.--Subsection (c) of section 5 of the Social Security Domestic Reform Act of 1994 (Public Law 103- 387) is amended by striking ``and before'' and all that follows and inserting a period.

(aa)(1) Guidelines.--The Secretary of the Treasury, in consultation with concerned Federal agencies, may establish guidelines, including information on outstanding debt, to assist agencies in the performance and monitoring of debt collection activities.

(2) Report.--Not later than 3 years after the date of enactment of this Act, the Secretary of the Treasury shall report to the Congress on collection services provided by Federal agencies or entities collecting debt on behalf of other Federal agencies under the

authorities contained in section 3711(g) of title 31, United States Code, as added by subsection (m) of this section.

(3) Agency Reports.--Section 3719 of title 31, United States Code, is amended-- (A) in subsection (a)-- (i) by amending the first sentence to read as follows: ``In consultation with the Comptroller General of the United States, the Secretary of the Treasury shall prescribe regulations requiring the head of each agency with outstanding nontax claims to prepare and submit to the Secretary at least once each year a report summarizing the status of loans and accounts receivable that are managed by the head of the agency.''; and (ii) in paragraph (3), by striking ``Director'' and inserting ``Secretary''; and (B) in subsection (b), by striking ``Director'' and inserting ``Secretary''.

(4) Consolidation of Reports.-- Notwithstanding any other provision of law, the Secretary of the Treasury may consolidate reports concerning debt collection otherwise required to be submitted by the Secretary into one annual report.

(bb) The Director of the Office of Management and Budget shall-- (1) review the standards and policies of each Federal agency for compromising, writing-down, forgiving, or discharging indebtedness arising from programs of the agency; (2) determine whether those standards and policies are consistent and protect the interests of the United States; (3) in the case of any Federal agency standard or policy that the Director determines is not consistent or does not protect the interests of the United States, direct the head of the agency to make appropriate modifications to the standard or policy; and (4) report annually to the Congress on-- (A) deficiencies in the standards and policies of Federal agencies for compromising, writing-down, forgiving, or discharging indebtedness; and (B) progress made in improving those standards and policies.

(cc)(1) Elimination of Minimum Number of Contracts.--Section 3718(b)(1)(A) of title 31, United States Code, is amended by striking the fourth sentence. (2) Repeal.--Sections 3 and 5 of the Act of October 28, 1986 (popularly known as the Federal Debt Recovery Act; Public Law 99-578, 100 Stat. 3305) are hereby repealed.

FEDERAL ADMINISTRATIVE AND PERSONAL SERVICES EXPENSES

(recissions)

Sec. 31002. (a) Of the funds available to the agencies of the Federal Government, $500,000,000 are hereby rescinded: Provided, That rescissions pursuant to this paragraph shall be taken only from administrative and personal services and contractual services and supplies accounts: Provided further, That rescissions shall be taken on a pro rata basis from funds available to every Federal

agency, department, and office in the Executive Branch, including the Office of the President. (b) Within 30 days of enactment of this Act, the Director of the Office of Management and Budget shall submit to the Committees on Appropriations of the House and Senate a listing of the amounts by account of the reductions made pursuant to the provisions of subsections (a) and (b) of this section.

This Act may be cited as the ``Omnibus Consolidated Rescissions and Appropriations Act of 1996''.

Approved April 26, 1996.

LEGISLATIVE HISTORY--H.R. 3019 (S. 1594): ---------------------------------------------------------------------------

HOUSE REPORTS: No. 104-537 (Comm. of Conference). SENATE REPORTS: No. 104-236 accompanying S. 1594 (Comm. on Appropriations). CONGRESSIONAL RECORD, Vol. 142 (1996): Mar. 7, considered and passed House. Mar. 11-15, 18, 19, considered and passed Senate, amended. Apr. 25, House and Senate agreed to conference report. WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 32 (1996): Apr. 26, Presidential statement.

<all>